The Emporia weekly news. [volume] (Emporia, Kan.) 1881-1889, 1885-01-01

NEW YORK, Dec. 27.-In 5 suit
brought by Senator Chaffee against the
receiYer Of the defunct firm of Grant &
Ward to recover about $500. 600 worth
Of securities found among the assets of
the firm, but clsimsd by Chafee,
Ulysses s. Grant. Jr.. testified he was
. son-in-law of Chaffee. DIR. Chaffee
gave the witness some bonds on which
he borrowed $40,O 900 and went to Europe.
He intended to repay his father-in-law,
but instead, on his return, borrowed an
additional 100000. This money went
into the firm as his individual interest.
Witness had charge of Chsffee's secu.
rites and owed him $4,000. Ward
suggested that it would be better to use
the money of friends rather than go out
side, and witness, after writing to Chat
fee Sand telling him what Q good
transfer the securities. Ward guaran
teed the loan. The money was sup
posed 70 be used in buying government
contracts, and making loans to railroads,
with 30 per cent profit. Ward frequent
ly showed an advertisement of govern
ment contracts and said he would try
to get them. The profits were to be dis
tributed among the Members of the firm
evenly, but sometimes when they we're
smaller than usual Ward would take his
share and divide the balance. On his
profits made on loans from Chaffee,
Cheffee was to haye so peF cent profit,
out of which he allowed something to
witness. Ward knew the loans
ness told him so. Ward dis
played great knowledge of what went
on IN the Office, and if witness had So
coo or $4,000 in the bank on his own
account Ward generally borrowed it.
When the contracts of the firm, with the
contingent profits, amounted ION paper
to $780, 1000 to $500, 900, witness asked
Ward if they could be let in, but Ward
replied that he wanted to build up
banking house, and the contracts were
outside matters for which he was respOn-
sible. He said he had got contracts
away from David Davis, and somebody
might in turn get them away from him.
So they had to be separate. Witness
said he had advanced In clean money for
the business various sums. He had $780,
OGO or $500, 600 before he went into the
business with Ward. Sunday, May 4,
he first learned of the
trouble. When Ward came
to his house and said he was afr sd
II was all up with him, witness asked
what he meant and Ward explained that
the Marine bank had drawn severely on
Its reserve and there was $3.50, 900 to the
credit of the firm there. The failure of
the bank would make 1t difficult to OBJ
tain loans on the street. Ward said if
the money could be raised ali right
Witness said he could not raise any
money, but his father might. Witness
and his father then went to Mr.. Wander.
bilt and got check for $4,000. Gen.
Grant told Vanderbilt he thought the
check of Grant & Ward wss as good as
the check of Vanderbilt The check was
drawn to the order of Gen. Grant Next
day witness took the check for $3.50, 600.
Regretted he had not had it certified,
as 1t was drawn on the Marine
bank. That day witness received let
ter addressed Dear Buck" and went to
see Mr. Elkins, who went with him to
Wards house in Brooklyn, where he
waited until midnight before Ward
came in. Ward said the balance in the
Marine bank was about 5000, 600 or
$3OO,OOO, and If Spencer, the cashier, had
said it was 1898 900 he was mistaken
Elkins thought the interests charged
| should be protected and Ward thought
there were other interests to be protect
ed. Up to that time the witness had no
idea the money was due by others than
his own family and Mr.. Chaffee. Ward
had an agreement to deliver the KEYS of
the safe the next day, but did not, when
witness went to the Safe Deposit COM
pany and informed the officers he want
ed the safe opened. after which the securi-
ties we're counted by Messrs. Leroeque
] and Elkina.