Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1884-05-16
A $lO,OOO,OOO sWINDLE.
TIE WORST EYER IN VAIL
STREET..

SIREEI.
II e FALL RE OF EX-PREsIDENT
GRANTS FIRM AND THE BURSTING OF
THE MARINE BANK AT NEW YORK
ALL THE PROPERTIES OF THE GRANTS,
FATHER AND SONS, GoNE-THE END
OF A GIGANTIC sWINDLE.
&C., &C., &C.
The Wall street firm of Grant e Ward :,
bankers and brokers, is composed of ex.
President Ulysses s. Grant, Ulysses s.
Grant, Jr., Frederick Dent Grant, jesse
D. Grant, J. D. Fish and Ferdinand
Ward. The ex-President is silent part
ner, though frequent visitor at the Office,
the next two named are his sons, the third
is nephew, the fourth is Fish the Presi-
dent of the Marine Bank and the fifth is
a man who in connection with Fish has
accomplished the most magnificent run
of swindling that Wall street ever knew.
The way the firm did business may be
condensed this way Ward used the con-
nection of ex-President Grant with the
firm to gain credulity to stories which
he circulated to the effect that the friends
of the firm enjoyed peculiar advantages in
getting government contracts at remarka-
bly, favorable rates; that the firm was
lending these contractors money at high
rate which their terms of contract ena-
bled then, to pay with ease, and that the
firm therefore was enabled to pay its own
GnnncjfnrG 10 rcp r1r pIJ ,v,fo IS
per cent month. Into this trap a long
list Of greedy depositors fell, and with
avidity deposited money where one TWEEN
tieth of the principal was returned in in
terest every month. Another fraud prac-
ticed by the firm or by Ward, upon whom
all the irregularitY is laid, was to loan
railroad companies large sums on their
bonds and then re-hypothecate them; that
is they would loan the New York Erie
road 81, 000,O 900 on So 500, 900 of bonds as
collateral. and after getting the bonds in
their possession would take them to
other banks and pledge them for a ST.
600, 900 loan to themselves. This opera
ton they performed on many companies
pLo OeShAo tslu HiAohS tIO ldtU0L WcI0 UL6
Vanderbilt banks. OF course this gigantic
system of swindllng had to come to an end.
and when it did, last week, the Marine
Bank was utterly insolvent and Grant &
Ward had failed for $40, 100000 the larg-
est and worst failure Wall street ever
had. 1t seems to be generally conceded
that Gen. Grant knew nothing of the bus
mess or affairs of the firm, and he and his
boys had been contented to regard it as
sort of gold mine which was yielding un-
told wealth. We give below some ex-
tracts from the New York papers con-
corning this, the greatest of American
failures
All of the younger members of the firm
are known to have lived extravagantly and
invested largely in real estate. The agree
ment of the partners was that each should
draw out So 900 month for living expen-
ses, and that the balance of the profits
should remain in the firm as working cap
ital. According to this. the four partners
drew out an aggregate of nearly $3.50.
year. 1t has been impossible as yet to
learn to what extent Gen. Grant and the
other members of the firm were cogniZant
"
VIM. c. Smith, who has generally been
regarded as member of the firm, but
does not sign the deed of assignment, says
he was not cognizant of them. That Gen.
Grant has not known their exact nature
appears from the fact that he has stand
ing to his credit upon the books of the
concern profits to the amount of nearly
$500, goo, which it is said must be purely
fictitious. Whether it is with the inten-
ton Of making scapegoat Of Ward,
or whether it is because it is
fact, those interested in the affair
speak of it as being business that was
conducted very largely by Ward. It is
argued that the Grants had good deal
of confidence in the firms schemes, for
the reason that they have apparently put
all their own fortunes into it and also
those of their female relatives. 1t is said
that large number of the sufferers by
the collapse are women.
GEN. GRANTS CONNECTION WITH IT,
sit is difficult to believe" said one gen.
tleman we'll acquainted with the facts,
''that Gen. Grant understood the real sit
uation previous to the failure, or he would
not have done what he did, I know that
on Sunday, at Mr.. Wards suggestion, he
went to Mr.. William Fl. Vanderbilt and
asked for $3.50. 900. He received Mr.. Van
derbIlts check on the Chemical Bank for
that amount, dated Saturday and promis-
ed to return the loan on Monday, which
he attempted to do by sending up Grant
& Wards check upon the Marine Nation
al Bank, dated that day, with the request
that it should not be used until the next
day. The next day the bank suspended. -
From friend of Mr.. Vanderbilt it was
learned that that gentleman sent for Gen.
Grant on Wednesday afternoon. The |
nature of the interview is not known, hut
the gentleman referred to is authority for
the statement that Gen. Grant gave Mr.. |
Vanderbilt assurance from Mrs. Grant |
that the check would be made good if her
private fortune was equal to it.
The general impression among those
who know Gen. Grant is that he has been
entirely ignorant of the operations of the |
firm, and relied upon his sons to attend to