New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-11
BIG PROFITS ON PAPER.
PHASES OF GRANT & WARDS OPERATIONS


LIGHT ON MR. FIsH's TRANSACTIONS
| The effect of the failures of Grant IL Ward and
the Marine National Bank upon the financial condi-
tion of the New-York. Lake Erie and Western Rail
road Company was much discussed yesterday.
1t was generally regarded as the most important
feature of the two suspensions yet developed The
fact that President Fl. J. Jewett had resolved 10
leave the directors Of the company To decide tho
question to whether or not the June interest on
the second consolidated bonds should be paid wAs
interpreted by most persons throwing the mattse
open TO serious doubt. No definite expression q
opinion to the probable course that will he DO
cded upon could be obtained from the directors
and officers of the company. The action OF he
directors will largely depend upon the developments
that may follow q further investigation INTO tho
affairs of the suspended firm and bank. Although n
Is still claimed in behalf Of the Erie that it cannot
lose much by its relations with the firm, II is
ceded that the complications in the situation lar
from fully xDown yet The subcommittee
that the directors authorized Mr. Jewett To appoiDt
to assist him I'm investigating tho matter was nOs
selected yesterday. There Is probability that %
may not be appointed Tomorrow as Mr. Jeweit
wishes to collect all the facts he before he calls
on the assistance Of the directors. high officer
OF the company said that he should recommend that
the June interest be paid. he believed that tho
Erie. able TO pay t from the earnings. but 10
did not know how the board would regard ths
matter
SELLING NOTES GIVEN FOR ADVANCES.
It Is now known that Grant II Ward have not
only repledged the securities placed with them by
the Erie and the Chicago and Atlantic companies,
but they have sold the notes given for the advances
made on the securities 1t was admitted by pen
son who ought to know that the amonnt Of thesa
notes tnat the firm had used In addition to -
hypothecating the securities was about SsOO.OO1
The friends of the company say that they have been
traced 10 many cases TO the persons who hold tho
bonds. and their impression that most of the notes
were put up as additional collateral on the loans oa
the bonds From other sources, however. the IN
formation is gathered that there is little doubt thas
the notes sold in every case. The amount thus
disposed of is not known regards the notes glyea
for advances on the Cleveland. Columbus Cncin-
natl and Indianapolis stock handed to the firm ts
sell. The par value of the stock was 81 100000.
and the advances, if made a basis of % per cent
would amount to $275.OO0 The notes given w
the Chicago and Atlantic Company for the ad-
vances on $2.500000 second mortgage bonds
amount to $1.5O0,000 1t is said These notes ars
ndorsed by the Erie Company. 1t is denied bY
friends Of the company that Grant & Ward nego-
tiated any notes Of the Erie Company except thos
made In connection with the c., C. C. " |. stock
transaction. and no official information has been oo-
tanned of the existence Of notes given or ndorsed ~
the officers of the company individually. The ef-
istence OF such paper Is nevertheless asserted
Julien T. Davies. jointly the receiver and assignee
of Grant & Ward. has prepared statement -
vet, and William H. Shepard. the counsel for Ferdi-
nand Ward declines to say anything for mis- client.
The prcpriety OF Mr.. Davies acting as assignee %
still criticised by~ many of the creditors. 1he
papers in new suits against the firm are beng
drawn in behalf of several creditors. One law 6nu
will take action for persons representing claims OF
about $8OOOO one of whom is prominent msn
who is a creditor to the amount of about S600000.
MR.. FISH IMPLICATED.
The ramificati0ns Of tine failure are daily being
proved 10 be greater than at first supposed. ET-
Senator Chafee is now said to be creditor to ths
extent of SOD 900, instead of $500. .000 as at irs
reported. Persons who are acquainted with facts
use the strongest language respecting the operi-
ticns of Ferdinand Warl. Facts are also coming
out which seem to impl cate James d. Fish in trans
actions that can hardly be excused, even should
they be found not to be clearly unlawful. 1t
known that just prior to the suspension of the bank
Mr. Fish went to the Office of Grant & Ward asd
took away large amount Of securities. These
were found at the bank. although the books
showed no record of any transactions by which
they should be received. Among them was S3OO,-
600 Of miscellaneous securities intruSted to GraEt
& Ward to sell by the Erie Company. The fact
that they do not appear on the books Of the bank
any way points to the conclusion that the securities
" re taken away by Mr.. Fish Oh the verge of Jhs
failures The impression made on persons lnteF-
ested in the affair Is that Mr.. Fish was well as-
onainted with the condition o. the bank. expected
some trouble with the Clearing House on iast
Monday, and took Grant ~ Wards securities 10
use in case of any examination by the other banks
or in case the Government should take change
of the affairs of the Marine Bank. Ii is understood
that United States Bank Examiner SchrIba ao-
know lodges that this parcel of securities is not the
property of the bank. The total amount Of the So
curites thus placed In the banks vaults is roe
known. In connection with this action OF Mr. Fish.
the representations made as to the embarassmezt
of the bank by which Mr. Ward secured through
General Grant the check Of Mr.. Vanderbilt ter
Sl5O,00O become significant on the point of the
thorough cooperation of Ward and Fish in tbs
schemes by which $4,000, 900 Of liabilities bss
been rolled up against the firm of Grant & Ward.
There has been no lack of warnings given 20
many persons who are now involved in the col
lapse of Grant & Wards Government contract"
schemes. Russell Sage was induced to take an Ia
terest in the concerns practical blind pool 40
one time last autumn, through a prominent lur-
Der dealer who appeared solely in the transaction
IL was closed, and with paper profit left to the
credit of the latter. Mr. Sage accepted note Of
the firm subsequently, and whenit matured, about
three weeks ago, he earnestly solicited
by Mr.. Ward to renew ii. TO Wards
persuasions were added those Of James
II. Work, who appeared TO be completely
with the scheme of Ward and who 20
sured Mr. Sage that he could not possibly lose hI
money. Mr.. Sage, however. insisted that the nots
should be met. and it was paid
TRYING DO DIssUADE GENERAL GRANT
Efforts were made year ago TO detach General
Grant from connection with Wards scheme. Al
the instance Of friends who had no faith a schems