New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-07-19
JEROME B. CHAFFEE'S LOSSES
HOW GRANT & WARD BORROWED $500, 900.
HIS PROFITS REAL AND on PArER-rEsTIMoNY
BEFORE REFEREE COLE.

BEFORE REFEREE COLE.
Ex-senator Jerome B. Chaffee sat for nearly
an hour yesterday Referee Coss Office at ITO Broad
way and told how that he lent Grant Ward bonds OF
the value of 100000 before their failure. and hasn't
had any Of them returned to him. He
wants to get from Julian T. Davies what
part Of them passed into bis hands IS receiver
for Grant Ward Hence his suit before Referee Cole
Colonel George Bliss, with the inevitable flower IN his
button hole helped him to make his case clear. C. W.
Bangs cross-exanined Mr.. Chafee and william A. fur-
nngop silently watchfsi Of the interests OF u D.
Grant, IT,
With the aid of occasional prompting, from Colonel
Bliss ex Senator Chaee told his story. He lived at Den
YER COL said and had lived there about twentyfour
years. u g. Grant, IT,, had married his daughter lis
knew all Of the firm Of Grant Ward, excepting James
ID. Fish. He lent the firm per cent registered Govern
men bonds Of the par vaue OF 100000 and sond' Of
the West Virginia Central and Pttssurg Railroad OF the
face value Of $4,000. OF this sum he lent 100000
In April 1883 and the balance In october. The Govern
nent bonds were worth from % to 20 cent premium
aud the West Virginia bonds selling from par up 10
per cent prenIum.
Colonel Bss-At the time OF the loan OF these bonds
"$ "S1t were in e box of Grant,
Ward or I: 5. Grsnt,jr had loft them there.
Colonel Bllss-IIOw came you TO make the loans .
Ex-senator CssHse- Because member OF the 1rm' U.
Grant G " R me an5 wa s f To e tn. use the
bonds. They didn't want any outsiders TO come IN me
Grant & Ward.
Hero Colonel Bliss the benefit Of Mr. Bangs. made
statement OF his clients claim. lie said;
The firm Of Grant Il Ward being indebted to Mr. Chafee
in consequence Of the oas of these bonds on May Ossf
the hrn by one OF It's members :. Grant ir assigned
certain secIre, Mr. Chsfec to protect him ON his
was subsequently claimed that some Of those securities
did belong 10 Grant Ward. out to other parties Mt
thouty to return thcm to such parties as
Mr. nuvtp
Grant Narl. and Mr. Grant delivered AL these secnr,
tiles into Mr. Ddyess hands We claim tast Mr. Chaice
stl retains his right to thom.
Mr. Bares cross examining Mr. Chsnce)-llayc you
any paper frs'n tho firm proving tho transaetoni -.
loan merely sgued power OF attorney to transfer
the Oolds TO Grant n ward
Mr. ChaIcc explained something about the details OF
hs transactions with GRAFT " ward. Concerning the
n loan of 81 600 he said that he went to The Fourth
National Bask and borrowed 100000 and gave that
amount firm In money. Later he said that he ala
remember whether no gave cashiers check Tor tue
amount or gave bis own check. :" went aud made the
loan FOR thcm." he said, because dd not want the
bonds to get out ofsanks that knew" The negotiations
were principally contracted with U. g. Grant, Jr from
whom the applications for tho loan came. lie had had
some cou'ersatisa with Mr.. ward as to whether hi.
bond. .afo and wa' assured that they were.
Mr. Baaes-what were the terns OF the lo@nl
Mr.. ChNhce-Ihere were NO terms AT al 10 te hrst
N0'Asto the duration ofiti Al am not positive AZ
to whether there any duration II seems TO me that
there talk about allowing them the use OF The ponds
for six or four months
any that remember Of except that they were 10
0-WLat was the compensation 10 you Al don't re-
member that first there was any compensation TO me
O.-At the last, what Al was 10 nave certain
amount profits that they made out OF the use VI the
what was the AMOUNT Al think half
O-Wa3 there anything SAID as to what the money
should be invested in A.-Not definitely that could
o@What was the profit Of which you were to have
half to be derived from Al never exactly knew.
They did not speak " Government contracts uaeer.
stood contracts were Involved eXpect MI Graht
told me that. They gave me no memorandum OF tHe
OF profits. was one Of the Ne"fork blind iooIs
Odd YOU receive any account OF these PROTEST Al
wa, notified that mucn had been placed TO my credit
from time To time VIII see nave any Oh ther Iet
tiers. don't usually keep my letters. tear them up
when have read taem. don't know as nave dozen
letters IN the world.
Q-Do you kaOw the amount or pronts thst were
placed to your credit Al do NOT know how much 1t
"O.what is the nearest you can get tsiti A-wel,
think drew out $4,000 OF @4o'Ooo' IneFe Is sui
eionel Bliss Csceptically).-On tho b0oksi Witness
(grsvelyl.-1cs on the BOOKS
To Colonel Bliss Mr.. Chafcs said that no had had
some conversation with Mr.. Ward to what
use was to be made of the money. SAID Mr.. Chanee,
He told me that he advanced largo amounts Of money
10 men who mad some cOntr&cts-ralroad contracts
TANK he SAID by which handsome profits were realized.
Appcaton Tor the made to me by letter from
NJ rl,t at east think II was by letter, for Iemem.
her scndisg the power OF attorney from Denver. Mr.
ward that there was NO danger Of the money
being lost.
Colonel Bliss-Did Won know what the firm borrowed
on these bonds Tbs 0ltness-Ne was told that they
Borrowed the full market value OF the Government bonds
Odd they make you any sttIeueutol tte Ilsposd
tiOn made of them. A.-NO saw one loan or 100000
on my bonds at the Mercantile Life.
The hearing was adjourned until Wednesday at 2 p H.