New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-17
MR. WARD AS A FINANClER.
CARRYING OUT HIS PLANS BY HIMSELF.
A FEW FRIENDS CIRCULATED STORIES OF RICH
coNrRAcrs IN WHICH THEY BELIEVED.

against u. s. Grant, jr., and Others was continued
before Referee Hamilton Cole, at No. ] 10 broad
way Yesterday. Many business men in this CITY
were mentioned as having been connected win tis
spurious contract business carried on by + erdhanu
Ward Mr. Ward said that he had taken no one
into his confidence in any OF these transactions anu
that he had been able TO work the matter @
fully by simply telling few men that ne tbet thew
had done the rest by telling their lrenuo, d Cor
transactions of Ward on his own account, anu aoa
Grant 4 Ward on the day before the failure weI re
gone into in detail They showed the handling OF
millions of dollars and gave some, VI b;msclf
the strenuous efforts Ward maze 10 saw h ,.;ntns
and be able to continue TO trade on MS Ni0'h'
MIR Bangs IN examining Ward. said that the real
nature of the business consisted in dlsconhlng une
fancifn nrospect of imaginary profits 20 be derived
from fictitious contracts founded an naTv
and artcifal trbutions of altogether t W
money" When asked # that was not coilo''' i'
Ward said, " give 1t up"
SOME OF RECEIVER DAvIEs's TRANSACTIONS.
Before Mr.. Ward put on the witness SlaHu,
Mr.. Bangs questioned Receiver Ju WI Wa and
concerning hs transactions with Mr. Nao anu
with Grant Ward, and as TO his knowieuge W we
transactions Of his partner, }. II. Work WIN W. o.
Warner and Ferdinand Wand in relation 10 oosuS
contracts
Mr.. Banes-when did you last pay Warner rt any
money on the contracts A.-On May s, 1884. There
nee Sf FOR go and the balance Of 900 left in
his hands 20 reinyest for In new contracts v as your
representative A.-Yes sir. 1o-o NV
QHow did you Pay money TO warneri - gave NT c ,S
checks him personally and he gave the recepls VI ce
tdcstes OF Grant Ward himself. .,..,.,. ,o,veon
warner and Gu J. H. work in these transaconsi Al do
not ,. .,orav from,
Grant 4 Ward on May 81 Al do not.
Q-Mr Ward testified the otner day that certain p'T
contained his memoranda of many TRANSACTIONS INA" az
peared nowhere else and that was III the nHnuS "a Il
Work Hay you s9t rom him. but lie would
not give it TO me-
Mr.. Ward then took the stand and Mr. Bangs
showed him checks representing some of the 6usi-
ness transacted
May 5, 1854, the day before the failure 1 ne HIs'
shown was Grant x Wards check on the ST. Memo
las Bank for 5000 18S SO made payable 10 SeorgS
+. Spencer, cashier of Grant Ward. Waru saiu
tins money at once put out in other loans, vi
the same day checks of the firm on the same oaik
and onthe British North American Bank were gwen
for $50 0O5 $101 800, $4,000, this was TO pay a
draft by Colonel f. ID. Grant on Grant ~ ware
$4,000. Ito order of the Buffalo. newborn ana
Philadelphia Railroad, for which was received as
security second mortgage bonds OF the road 70 t3e
amount of 100000, S11,150, S35OO3 ~. S9,ooo}j
S9575 and 81 D. 600 Ward said that he received
securities of different kinds Tor the checks ana put
them cut at once.
WANTING TO GET AWAY FROM THE CRASH.
Odd you get or did you order anybody to get loans
for the day before the failure Al cant tell
Q.-where were you when the firm faiedf Al was
DOt here-I was out OF town.
Q.-Where youi AIT stanford
Q.-What were you doing therei Al don't know, ~.
ar6und-dd not do any business. ,.,o.
Odd YOU make deed OF some property there on 'ha'
9-%as ", s. Warner With yepa NO
Q.-What did you dol A-Nothins wanted 10 ge'
oggW6at was the IL 200 to Fred D. Grant fori A.
To pay his draft. He had an account with Grant d
Odd he have 100000 to his credit Al don't
Odd he ever invest money in these contractsl A
Q@SIat did You get on the $1113O and the the
SO eheshi n ai don't s EpS o the a asEr mad
Q.-NOl You gave your whole attention lhiandlYJ 10
get money for the contracts Al did: Yes, sir IL,
Q.-Then you received new loans on May ), amounting
10 several hundred thousand dolarsi A-ies II went
money me ' in the Marine Bank.
In answer to further questions Mr., Ward said that
on May he had securities ia the Marine BANK ior
about 81 900 900. and had succeeded IN getting
some OF them ont but he did not know whal
amount. He took them out, on Saturday ana got
800. 900 them elsewhere, and put the money
into the Marine Bank. He got 100 shares OF Union
Dry Dock the Ere Railroad, worth PSOO per
share, out also ; they were worth $l2OOOO. lie
did not promise the bank to return them. -
Odd You pledge any revenue bonds to Brown
brothers Coz Al did. got some credits ana soid
GLOW much money did you Geti A.-s5oo'Ooo
o@Dd You do the same thing with Won HOFFMAN &
COZ Al did: got 100000 in cash from them;
JoHght them-pad cash for them. Got them from the
thing to- do 'n with 9 these SOna 1They had Nothing
whatever to do with the money paid him.
NOT CONTRACT UPON WHICH TO OPERATE.
ODD Won ever have simple contract on which TO
base your operstonsl A.-No sir, not one.
Odd no one OF an the You dealt with ever ask
10 contract OF any assurance that you had one
Q-Did you not know that NJ Davies and Warner were
dealing together in these contracts Al suspected
but did not know it. l think Davess name was men
Q-whom did Warner name to YOU as being connected
with him in his business Al H. work. MI HerrlcK'
nj WIlmerding-I don't remember any more
Q-Didn't YOU forget name some men in your
answer TO this question the other day Name the ones
Spicer, Jr James d. Fish, E H. Toby, F. G. Toby ".
j. Grace, Nelson Tappan, " " smith Jesse K Grant
director in the Marine Bank W ". Smith is a cousin
oHWhsi other directors of the Marine Bank in
Al Nelson Tappan. f; spcer jr, and b. W. Spencer
Chen no mortal inan ey asked you to see what
tind Of contract be was entering nIof Al cont say
What did you tell them Al don't rememcer
Q-Mr. Davis's statement the other day shows about
would you these could be sold and matters settled
upl A.-The market changes every hour ana cannot
O.-Do you know what the newspapers have said about
your rehypOthecatipg securitiesl A-No sir don't
Odd you know the Metropolitan Bank had resumed
a. iniiiDglyl Yes sir
ar. WARDS METHODS OF DRAWING MONEY.
O-Hou do you draw money! On your own check2
AENO sir drew money from Grant Ward by their
check, getting the money at the banks ,,..,
CIV, me check for $50 600 and would get the money
Q.-Then how would you pay Colonel Grant Al
Q-How could you pay III A.-FrOm what he and
olaeI people, contributors put in.
$50 that the real nature the business consisted in
oscounting the fsnc prospect Of imaginary prohts TO
BE- derived from fictitious contracts founded on manu-
fsciufed and ARTIFICIAL contributions OF altogether
imaginary mOny.-was that II Z Al can't answer II.
Q-That is material account OF II, isn't IL Al gave
81 up.
O.-You made a banking basis by imagining you were
making profits! A.-Perhaps so.
Q-YOu credit Mr.. Grant with imaginary portion OF
imaginary profits and then he would get IT ont by means
OF check 10 order which would deposit TO
own credit Al think that was the way
Q.-And then you would get the check OF the firm TO
yor order which you would deposit in the bank cash
A-Yes, sir.
O.-Having thus. got credit for $4,000 and II you
wanted $4,000 you would give the firm OF Grant d
Ward your own check aud deposit II in the banki A.
EoEotnes
Q.-Really. all this humbuggery on purely imag-
snsry businessi Ayes.