Savannah morning news. [volume] (Savannah) 1868-1887, 1884-05-31
GRANT & WARD.
Amount of Their LiabilitieI

Gen. E. B. Smith, Mr.. Fish's lawyer,
was asked Wednesday, says the New
York Sun, what truth there was in the
statement, which MIR. Fish said Ward
made to him. that President Arthur and
Gen. Phil Sheridan had been interested in
the contracts. Mr.. Smith said: "That
was one of Wards lies, and part of the
fiction which he invented to deceive Mr..
Fish Neither the President nor Gen.
Sheridan had anything to do with any
contracts. Ward simply used their names
to trade on"
''What do you think are the actual liza
bilities of the firm of Grant & Ward?'
II think they would be a great deal less
than $3,000,000 if the fictitious profits
drawn out were returned. The apparent
liabilities of $14,000,000 are easily eX-
planned away. Money obtained by pledg-
ing securities was used to buy other Sc
curities. which were again pledged, and
so on with the repledging. until the fig
ures had grown to large proportions,
while there was really only a small sum
involved. When these loans and pledges
are adjusted it will be found that fully
three-fourths of the liabilities are wiped
out. OF the ealsnce of $4,000,00 a great
part was paid out in fictitious profits, for
the recovery Of which suits are being
brought"
Glow much profit was drawn out by
Gen. GrantT'
THAT cannot tell, as have no means
of knowing"
Receiver Davies was asked how much
money was drawn as profits from the firm
by Gen. Grant. He said: 81 cannot say
how much Gen. Grant has taken, as | do
not yet know, and besides, my position
as receiver would only justify me in tell
ing it before the referee"
SIS it true~ that after adjusting the
loans, and deducting fictitious profits, the
actual liabilities of the firm would be
SMALL"
$50 far as my examination has gone, it
would not justify me in affirming any such
thing"
Mr.. G. C. Holt, the private assignee of
Ward. said that Ward had not yet fin
ished his private schedule of assets. He
added that there were no assets to speak
of.
Lawyers StiIlman and Sheppard re-
fused to say anything. They are Ward
counsel.
Mr.. James B. Fish was asked: ''Was
it true, as you said Ward told you, that
President Arthur and Gen. Sheridan were
interested in contractsY'
'ENO, it was not true. That was one of
Wards inventions. l am sorry their
names were published. / especially
asked that they should not be men,
toned"
''Do you know OF any civil order of ar
rest against youT'
9sNo. / do not, and do not believe that
there is any. No one could have any in
terest in bringing such a suit. 1t would
be very inconvenient for me, as such ex-
cessively high bail is required"
'.Do you know how much money Gen.
Grant drew out of the frm?'
''NO, but know this: The profits were
divided into four parts at the end of each
month. and each partner was supposed to
draw his share. 1t is probable that Gen.
Grant did not always draw his profits. In
regard to myself, did not draw out more
than l put in. | paid all the notes in
dorsed by me, and there is really an actual
balance due me from the firm"
''Have you other letters from Gen.
Grantp'
Yes; but the most important ones have
been published"
"Are you preparing an inventory of
your assets ~
''Yes. ! am busy at it."
One of the expert accountants employed
on the books of the firm said yesterday;
81 don't believe we shall ever get to the
bottom of matters, as everything appa-
rently has been purposely complicated.
Unless Mr.. Ward can straighten things
out, the statement, at best, will be an APP
Proclamation. As showing how the con-
tract system was worked, | can mention
one as sample. On the 18th December,
1888, Mr.. 5. b. Elkins put in $4,000,
which was TO remain until January 5, or
30 days. At this date he drew out 100000,
"a profit of $4,000, or at the rate of per
cent. per day. This, think, is the high
est rate of interest thus far shown to have
been agreed upon.'