The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1885-10-09
UNSUCCESSFUL SCHEMES.
Ferdinand Ward, of the Firm OF
Grant G. Ward, Makes
Confession.
He Tells How the Firm Sank Hun
dreds of Thousands of Dollars.

NEW YORK, Oct. S.-That a success so phenoni-
email as that which apparently attended the pfiel
career of Grant Il Ward should be followed Dy d
disaster so complete, and that no acceptable ex-
PLANTATION could be attained by expert search mas
been monumental c0nundrum over the soluliun
of which Wall street and many an Ithef street mas
labored and pondered for months.
The Herald this morning prints eleven columns
of an interview with Ferdinand Ward, giving
transcripts of books and copies of numerous ietJers
and documents in complete detail OF the lnSlue
history of the firm. In this interview Ward re-
veals the names and profits of men, many OF them
in high standing in the community, business men M
who took commissions from HIM for securing MN
favOrs in financial institutions which tley coil
tr0lled, or who accepted month after montn al Ms
hands profits 50 great upon their investments Wiln
him that II not their consciences still their DUST
ness experience must have told them that such
profits could not be honestly earned.
OF Gen. Grant, Ward says that he never looked
at the books, but took everything to be right
missionary. He studied law in the office OF the
late Scott Lord. He was employed in the Produce
Exchange, married the daughter of director o1
the Marine Bank, and thus made the acquaintance
OF Fish, with whom he soon began 10 speculate;
He made good deal of money from a mine ana
Grant, Ward 8 Fish, in July, 1880, the other two
partners putting i'll each an equal amount. IN
November of tile same year Gen Grant was ad-
mtted to the firm, and it seems that Thereafter
the firm began to make frequent losses
Ward tells the story of the connection OF his
firm with the Belmont Coal and Railroad Company
of which the firm of Grant 4 Ward became pro-
prietors:
Cen Grant came into the office accompanied
by Gen. Gordon and his son, U. S. Grant, JrAs
some time in 1881, and having introduced Gen.
Gordon to me said he had been talking win Gor.
don on a matter of business and that lie had
brought him down SO that he might talk with me
and then determine what was best to do. Gen.
Gordon stated that he, together with few 9th.
ers was the owner pvt & o. eoai ne and raroad
they could go no further with Its management,
and that he had come to consult with Gen. Grant
with the idea that the General should become in
terested in the purchase of the property. Gen.
Gordon told us that the mine could pc put III
thorough working order for from 10000 to S5O,-
600; that if the mine could be put in operation
they would have no trouble in disposing OF its
product as fast as they could take it out. con-
suited with Fish about the matter and he said
that although we knew nothing about it, still if
Gen. Grant and his son could rely on Gen. Cor
don, we could; and also if it was their wish to
make an investigation that we, Ward and Fish,
would not stand in the way.
"The company was reorganized, Gen. Gordon
still retaining the presidency. There were issued
100000 in bonds and 100000 in stock, the
agreement being that Gen. Gordon, Gov. Colquitt
and Gen. GordOn's brothers should have 5000
have control OF the proxies representing at least
one-half of the entire capital We received q let
ter from Gen. Gordon, dated April 22, 1881, IN
which be asked for loan of $4,000 on bis note
and the stock in the mine as collateral, and gave
as for desiring the loan that he had 3 A.
900 of his own money in the Citizens Bank at the
time of its suspension. He added We will have
in the treasury of the Belmont Coal Railroad
Company at least $4,000 after our improvements
are completed"
~ consulted with Mr.. Fish and with Gen Grant
and U. s. Grant, Jr., about the matter The Ma
rine Bank made loan OF $4,000 on April 20,
1881, to us on stock note given by Gen. Gordon,
Gov Colquitt and Gen. Gordon's brother. Gen
Gordon failed to pay to the Marine Bank this loan
although repeatedly requested so to do:
$50 in a nutshell Grant & Ward bought a mine
from Gen. Gordon and others, they. issued $780,
600 bonds and put 100000 into the mine they
aSs ine ofer they Re ssaed
1000 shares of stock, 5000 of which are given to
Gen. Gordon and his friends as a bonus. Gen:
Gordon obtained a loan at the Marine bank OF
$4,000 on 5000 shares of stock, the Marine
bank repeatedly called on Gen. Gordon for the
principal of the loan and no attention is paid to
The calls. AT the importantly of Fish the firm OF
Grant & Ward is then compelled to take the loan
up from the Marine bank and they do 10 SO g., and pay
stock and bonds Of the mine.
Finally, March 6, 1882, the resignation of
Gen. Gordon was asked for, received and accept
ed. H. G. Otis was engaged to manage the mine
upon stated salary but it was soon decided to
close it up as losing venture and thus 1t was
that although when the firm purchased the mine
Gen. Gordon said there was not over $4,000 OF
100000 indebtedness on it, they had spent up 20
the time the mine was shut down some $3.50. 600,
besides having assumed the debt of Gen. Gordon
to the Marine bank as a loan on this Stock which
cost him nothing.
''Slnce the failure of Grant s. Ward the mine
has been sold for $5.O00.I 1t was through the sug-
gestion Of General Gordon to General Grant that
The firm of Grant & Ward lost from $130.000 to
$3.50, 900. The mine being worthless it was de-
cided that each member of the firm should take
up a certain proportion Of this Indebtedness and
they did 50 take up SIS, 900 Of it. by paying $18.
75O apiece The matter of $4,000 loaned to
General Gordon and afterward taken up by Grant
& Ward was charged up to the profit and loss ac-
count in Grant g. Wards office.
in addition to this loss OF about 81 600, the
books disclose the loss of $4,000 in West Shore
bonds on an investment of $20OO00 originally
made for General Grants account on the sugges-
tion of General Horace Porter and other friends
who desired that he should participate in what
was going to be a great financial success.
- In the early part of 1882 the stock market
having deprecated the losses sustained by the
firm and the large demands on us for money by
the West Shore railroad the Patagonia mine and
other investments and money drawn out by differ
ent members of the firm became so heavy that
resorted to borrowing money at high rates of in.
terest hoping and expecting that might, through
more active stock market IN the future, get even
again. This was my first false step. That was
the time, in o her words, when began the mag
inery contract business. was in Il corner. Peo
pie held our paper. They expected their tremend-
Gus profits and was anxious to retain the repu-
tati0n had gained