Savannah morning news. [volume] (Savannah) 1868-1887, 1885-01-30
Is THE TRUST FUND SAFE?
Gen. Grants Money Placed in Wabash
Special Mortgages and is well Secured,
but the Ex-President's Friends Think
Differently.

Gen. Grants Money Placed in Wabash
Special Mortgages and is well Secured,
but the Ex-President's Friends Think
Differently.
Many of the friends of Gen. Grant, says
the New York World, have grave doubts
as to whether the fund of $3.50. 900, col
iected through the efforts of Mr. George
Jones. is safe. The money was placed in
the care Of f. ID. Morgan Il Co. as a trust
fund and invested in Wabash bonds The
firm guaranteed the payment of the in
terest on the fund for n period of ten
years. and this guarantee will expire in
1890. The securities of the Wabash Road
are row quoted at l213 per cent, and the
investment is not considered to have
been a wise one. 4 friend of Gen.
Grant recalls the case of a lady whose
money was invested in the same manner
To show the danger which threatens the
trust fund. The husband of this lady
was an intimate friend of Gov. Morgan,
ana az his death he left his wife an estate
worth S500,000. He appointed Gov. Nor
gan as his executor and the estate was
invested in Wabash securities, which
were then selling at 9S. They declined in
value TO such an extent that the lady's
estate and almost her entire inheritance
was swept away. The fund for Gen.
Grant was invested in the same way when
In the market, but they have since fallen
of until they are of little value.
In speaking on the subject yesterday
Mr.. Geo. Jones said that the fund was in
no danger. 1t is invested IN special
mortgage bonds of the railroad. that have
a special interest and are as safe as gov
ernment bonds. The estate of Gov. Nor
gan, continued Mr.. Jones, has pledged it.
self so that there car be no danger of loss.
eE,r Oh rala L.
added Mr.. Jones, 1.-THE fund would be safe,
inasmuch as the Morgan estate is fnan-
ciallY responsible for it. The estate Is
bound to pay the interest until the guar
autee expires, and it would also pay over
the entire amount should the committee
make a demand"
Mr.. John 7. Terry, one Of the executors
of Gov. Morgan's estate, said: 1.-The
fund is absolutely safe. aud the fact that it
paws the interest proves that tits invested
in special mortgage bonds. The Morgan
estate is responsible for the entire invest
ment. and there is really no reason for
anxiety. The bonds at present are pay
lng an interest of over 6 per cent, and are
valuable BY the time the guarantee has
expired the bonds will be worth a great
deal Of money"
Notwithstanding these assurances, the
friends Of Gen. Grant regard the steady
TO its future resumption, and II the road
changes hands the result will be uncer-
tain. Special mortgage bonds, though
a good security, are affected more
or less by the standing and condition
OF the corporation. One Of the contrl-
butOrs TO the fund has expressed his
opinion that IN five or six years the fund
will have dwindled away. wabash
bonds are worth nothing today" he said,
land I am surprised that Gov. Morgan
should have invested the money in that
way. When the Morgan guarantee ex-
pires l do not think that Gen. Grant will
have a cent of this money. l believe that
Gov. Morgan acted in perfect good faith,
but he made a mistake. The interest is
guaranteed for ten years anG five years
are vet TO come, but the principal Is not
guaranteed. L do not think that the
Wabash bonds Will ever be worth any
thing"