Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-05-09
THE NEW YORK FAILURES.
STRANGE BUSINESS METHODS OF THE FIRM OF OR AN
WARD-NR. vANDRRBILT's CHECK FOR $4,000.

STRANGE BUSINESS METHODS OF THE FIRM OF GRANT
wARD-HR. vANDRRBILrs CHECK FOR $4,000.
The Grant Ward failure is much more serious
than was at first supposed. The Liabilities are es-
umated at from s. to $4,000 600 and the as
sets are unknown. The failure has an especially
dfsagreeabe appearance, as 1t Is now charged that
the nrm has re-hypothecated collaterals left with
them as security. A New York special to the Phil
adelphia Times says: "For two years or more the
active members OF the 1rm, that Is, all the members
except Gen. Grant, and persons In various occupa-
tons and professions whom they have employed,
have laid before capitalists and investors scheme
made no definite assertions As to the precise nature
OF the scheme, but allowed the matters to rest on
the assumptions Of the supposed relation OF the
body took the words Of the hrm that there were
contracts existing, supposedly with the govern
ment, and would advance money. pnquesuoning
the security. Upon these advances the trm agreed
to pay and did pay interest, or what purported TO
be share OF the pronts at the rate OF from two to
The higher rate was, according to all accounts,
most generally paid. A gentleman OF high stand
ing said that the number and character or the per-
offers Of the firm and the amounts Of money that
were invested were astonishing"
vANDERBLT's AFFIDAVIT
In the suit brought by the New York, Chicago
and ST. Louis railway company against US Grant,
IT,, Ferdinand Ward, q. 8. Grant, James D. Fish,
the road, made AFFIDAVIT that the railroad company
gave its promtssOry notes, payable to the hrm Of
Grant Ward, for $700,000 and deposited with the
frm as collateral security for the payment Of the
notes. 400 negotiable bonds of the railroad COM
pany for Fl 600 each, the payment Of which was Sc
cured by second mortgage upon its railroad. MI.
Vanderbilt alleges, upon Information and belief,
that Grant Ward, upon the receipt of these notes
and securities, united these bonds Unfortunately
with securities belonging to other parties for the
purpose OF borrowing money. BY this mingling up,
the securities have become liable to be sold for
debts for which they were not originally pledged to
the firm. To prevent this loss to the railroad this
suit is brought, and the plaintiff asks the appoint
ment OF receiver to take charge OF the property OF
Grant & Ward.
The New York Tribune says:-"General Grants
visit to Mr.. Vanderbilt was made on Sunday, and
then the latters check for $3.50 900 was given It is
said that at the request OF Gen. Grant Mr.. Wander
bilt agreed not to use the check OF Grant & Ward
on the Marine bank for day or two. It Is not be-
ueved that the eX- President knew the state Of the
firms affairs When presented, the check OF Grant
Ward had been rendered worthless by the two
failures The day after the failure General Grant
called on Mr.. Vanderbilt at the latter's DESIRE and
1t Is said that assurances were given that he would
be fully protected in the matter, even great sacr
fees were necessary in the direction Of Mrs. Grants
property"