St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-12-29
CHAtFEE'S SECURITIES.
Son-in-Law Buck" Grant Tells What
He Knows About the Firm Of
Grant d Ward,
And Gives the Public Hint Of the Methods
ofthe Brilliant BsmbOozler, Fred
eriek Ward.

New YORK, Dec. 2T.-In the suit brought
by ex-senator Chaffee against the receiver of
be defunct firm Of Grant & Ward, 70 recover
about $500, 900 worth Of securities found
among the assets of the firm, but claimed
by Chafee, L. S. Grant, Jr., testified he was
partner in the firm Of Grant * Ward, and
son-in-law OF Chaffee. Mr. Chafee gave the
witness some bonds, on which be borrowed
$4,000 aud went TO Europe. be
intended to repay his father-in-la
but Instead, on his return, borrowed an ad-
ditional 100000. This money went into
the trm as ais individual interest. Witness
had charge of al ChafTee's interest and owed
him $780, 900. Ward suggested il would be
better 10 use the money OF bis friends rather
than go outside, and witness, after writing
Chaffee and telling him what a good thing II
was, obtained his consent 10 transfer the Sc
curities. Ward guaranteed the loan. The
N oney was supposed 10 be used in buying
government contracts and making loans to
railroads with so per cent. profit.
Ward frequently showed advertisements OF
govern ment contracts, and said he would try
to get them. The profits were 20 be- distrib-
uted among the members OF the firm evenly.
but sometimes, when they were smaller than
usual, Ward would take Ills share and divide
the balance. On the profits made upon the
loans from Chaffee, Cbaffee was to have SO
per cent. profit, out OF which be allowed
something 10 witness. Ward knew the loans
were from ChafTee, because witness told him
so. Ward displayed great knowledge Of
what went on in the Office, and. II
witness had $1,000 or $4,000
in bank on his own account, Ward
generally borrowed it. When contracts
from which contingent profits amounted ION
paper TO $4,000, 900 or $4,000, OOO witness
asked Ward il they could be- let ia. bat Ward
replied he wanted TO build up a banking
house, and contracts were outside mattrrs
for which he Was responsible. He said he
had got contracts away from David Bows.
ana somebody might in turn get them away
from him, so they had better be he u separ-
ate. Witness said he had advanced in clean
money for the business various sums. He
had 5000, 900 or $500, 900 before he went into
business with Ward. Sunday, May 4, he first
learned Of the tronble, when Ward came 10
his house and said be was afraid all was up
with them. Witness asked what he meant,
aud Ward explained that the Marine bank
had drawn heavily on its reserve, auti there
was $3.50, 900 10 the credit Of the firm there
The failure Of the bank would make IL dill
cult 10 obtain loans on the street. Ward said
If money could be raised, IL would be ali right
Witness said he could not raise any money,
but his father might.
Witness and his father then went to Mr.
Vanderbilt and got a check for $3.50, 600.
Gen. Grant told Vanderbilt he thought the
check Of Grant & Ward was as
good as the check of Vanderbilt.
The check was drawn to the order
Of Gen. Grant Next day witness took the
check for $50, 900 to Mr.. Vanderbilt, and he
regretted be had not had it certified, as II
was drawn on the Marine bank That day
witness received letter addressed Dear
Buck, ~ and went to see Mr.. Eikins, who
went with him 10 Wards house in BROOKLYN,
where they waited until midnight before Mr..
Ward came in. Ward said the balance in
the Marine bank was about 5000, 900 or $500,
900, and If Spencer (the cashier) had said
it was $663,O0 be made a mis-
take. Elkins thought the interests Of
CbafIee should be protected, and Ward
thought that there were other interests TO be
protected. Up TO that time witness had no
idea the money was due any others than his
own family and Mr.. Chaffee. Ward agreed
10 meet them with the KEYS OF the safe next
day, but did not, when witness went TO the
Safe Deposit company and informed the
officers he was a partner in the firm of Grant
& Ward, and had their safe opened, after
which the securities were counted BY Messrs.
Laroccue and Elkius.