New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-07
DETAILS OF THE TWO FAILURES.
THE BANK PROBABLY CARRIED DOWN BY sToCN
BRoKERAGE FIRMS TRANSACTIONS.

S,raet when the Marine Bank closed its doors me
snsnension was accompanied by the failure OF tle
Stock Exchange firm OF Grant q ward III 'ho
United Bank Building, at Broadway and "aIi-st'
The liabilities Of the bank are not known put Hou
oil that could be learned regarding It's recent man
sgemcnt the gravest apprehensons as to the extent
of the failure we're aroused 1t is reported that the
firm of Grant g. Ward had Overdrawn their ac-
copnt bctveen SjOOOOO and $750.000, and II is
asserted that a large oycrdraft has been ma lie by
the president of the bank, James -. FISH, lheie
were no developments yesterday TO show that the
failures will involve others. but confidence was
felt that the affair would be local in ITS effects.
The bank opened its doors at the usual hour, and
several deposits were received About IL oclocK
the directors held their regular weekly m'eIhg'
mud transacted rontine business such dIscOuntng
notes ETC. Nothing mentioned at the meeting
by any Of the officers of any coming trouble or fin
ancial complications. An adjournment was taken
as soon aS the matters that before the direc-
tors were disposed Of and those who had been pres
ent went to their different places OF business
except two or three directors who attended the
opening ceremonies ut the new Produce Exchange
bnillug Shortly before noon the cashier received
word from President Fish to stop doing business
and close the banks doors. The great iron shutters
of the Wall-st entrance were lowered, and the iron
doors at the other entrances were shut and secured
II took but moment for the fact OF the suspension
10 become known. and numbers of persons IN
the ncighborhOod gathered in front OF the bank
building The news spread over the city with the
rapidity of prairie fire and several depositorS OF
the institution fastened to the spot from Brooklyn
and Harlem aud other distant parts Of the city.
NONE BUT DIRECTORS ALLOWED ~ THE BUILDING.
The officers and clerks in the bank were inacces-
sbc after the doors had been closed None but the
director, were allowed t. enter the building, aud
IL. 4 "a la rip.
that their mission would lie fruitless and went
away. Several policemen sent for.and they
prevented any crOwding in front of the building,
although M to a late hour half dozen persons or
so were standing most of the time on the sidewalks
in the neighborhOOd. Iii many stock brokers' Offices
the ncws Of the suspension of the bank was known
even before the institution had actually stopped
doing business 1t came from the bankers who had
learned that the Marine Bank had not made its
Clolring House payments. II was debtor In the
morning on the business of Monday to the extent of
over 5000 .O1O The rumOrs of trouble were not
credited at first but il not long before the full
est confirmation was received The questions that
arose to every ones lips were "Wi it carry down
any business housef Is there any trouble else
where The answer was received only too
Quickly. in the acknowledgment TO callers at the
Office of Grant & Ward that they would be com
PEELED to suspend. The official announcement of
their failure however, was not read at the Stock
Exchange until 2:lj p.
EFPECTs OF lie FAILURES
The two failures bred nnumerable reports affect
ing the solvency Of several banks and all day long
there was carny J.. OF rumor in the air No other
business failure was announced, however. and
denlals were promptly made by the institutions
which pOinte TO by gossip In the stock
market there was great excitement, heavy
selling previous to the public knowledge of the
banks suspension showing that some operators had
a. nklng of the coming trouble. The excitement
reached fever heat when the news became generally
knowl and stocks throughout the list flung
on the market with liberal hand. panic was
stayed, however, although later in the day prices
touched even lower points than the figures.
OF the most active stocks Union Pacific fell from 81
to 5G3 Weston Union from 81 IS to J94 Missouri
Pacific from 81 a to - Northern Pacific preferred
from 5i4 to 81, st. Paul from 81 TO 81 is Lake
Shore from 964 to 9i34 Erie common from 9l2 to
L. Reading from 424 to 40, Delaware, Lacka-
wanna and Western from 1888 to 1888 and
Chicago and Northwestern from 120s to 11Osa.
The market continued feverish to the close and the
final prices were only fractionay above the lowest
OF the day.
ACTION OF THE CLEARING HOUSE.
meeting Of the Clearing House Committee of
the Associated Banks was called i'll the morning,
when it became evident that the Marine Bank could
not pay its debit balance The immediate occasion
of the suspension caused by the throwing ont
OF checks of Ferdinand Ward, drawn upon his
individual account in the First National Bank,
which had been deposited with the Marine Bank
on Monday 10y the firm Of Giant & Ward. Three
checks respectively for $4,000. $50, 900 and
$4,000 were 50 deposited and the credit balance
e. Mr. Wards account in the First National Bank
WIS only about 81 POO The Clearing House Com
mittee decided to make an effort 10 secure the As
sociated Banks, to which the Marine Bank was
creditor to the amount of Sj55OG3. William A.
Camp manager of the Clearing House, sent for
President Fish and persuaded him to make the bal
anccs to the bank good. This was done by Mr. Fish
turning over to the Clearing House $2lO00O in
cash and "a sufficient amount of bills receivable and
collaerals on loans to warrant two of the banks in
advancing the remaining S3fj 1858, taking the
assets rs security. The settlement made before
! p. III. Later IN the day the Clearing House Com
mittee met again and voted to suspend the Marine
Bank from membership in the association Other
measures OF selfprotecion against future possible
complications gro wing out Of the suspension are |
understood TO have been taken but the details were
carefully withheld from the public.
THE FAILURE OF GRANT 81 WARD.
1t was thought at first in Wall Street that Grant !
& Ward mad been carried down by the failure of |
the Marine Bank. 1t was developed LATER that tbo
suspension of the bank was probably due to trans.
RctlOns in which it had become involved with the
firm. That Mr.. Fish, the president of the bank |
was fully cOgnizant of these transactions all the
facts which could DO learned indicate. The firm |
of Grant 81 Ward was formed about two years ago |
and consists Of ex-PTesident Ulysses 5. Grant his
two sons Frederick and u. 5. Grant r., Ferdinand
Ward and William c. Smith. Mr. Smith Is the only
partner who is a member of the Stock Exchange |
The house was never rated among the strong ones |
VI The street and of late it's operations have excited
busDciOD as In ita financial condition I,lv ru,nors