Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1885-10-11
FERDINAND WARD SPEAKS.
PECULIAR TRANSACTIONS

heiulnand Wards "bombshell " ap
peared in the New York Herald. occu
pying nearly two pages of that paper
ward tells at length the history Of his
lie; how he became associated with
FISH and with the Grants; how the firm
OF Grant 4 Ward was formed, him.
self, Fish, and U. S. Grant, Jr., each
putting in 100000; how General
drant came in as a partner, putting
IN s9o,OOO for one-seventh interest !;
how his interest was afterwards in
creased to 100000, and Jesse Grant
taken IN as partner. Ward then goes
on to detail various losing invc -tmcnts
made at the suggestion Of different men,
bers OF the firm prior to March |, 1892.
These losses aggregated al2S,750. In
spite OF these losses, however, Ward
says the standing Of the firm was un-
impaired, as the general run of the
business turned in handsome profits.
A STORY ABOUT GENERAL GORDON.
Ward then tells the story of the firms
connection with the Belmont Coal and
Railroad Company, of which General
John b. Gordon, of Georgia, was pre-
sident. General Gordon was brought
to the office some time in 1881 by Gene
raj Grant, who said the former wanted
to talk with Ward on a matter Of bust
ness. General Gordon told Ward that
he, Governor Colquitt, and others owned
a railroad and valuable coal-mine at
Belmont, Ala, which they could not
develop, owing to financial embarrass-
ments. General Gordon said the mine
could be put in working order for
from thirty to fifty thousand dollars (;
that the debt of the company was some
100000, and that there was great de-
mand for the coal. On these repre-
sensations the firm decided to take the
property on the following terms The
company was reorganized, General Cor
don retaining the presidency. There
were issued 100000 bonds and $780,
600 in stock, the agreement being that
Gordon, Colquitt, and Gordon's brother
should have 5000 shares of the stock,
but that Grant K Ward should have
control of the proxies, representing at
least one half Of the entire capital.
General Gordon and his friends received
the stock and made several payments
on account Of the mine"
The sequel is thus told by Ward /:
SIN a nutshell, Grant & Ward buy
the mine from General Gordon and
others. They issue 100000 bonds and
put the 100000 into the mine. They
used the 100000 in paying the debts
Of the mine and in putting it into work
ing order. They issued 1000 shares OF
stock, 5000 of which are given to
General Gordon and his friends as a
bonus. General Gordon obtained a
loan at the Marine Bank Of $4,000 on
the 5000 shares Of the stock. The
Marine Bank repeatedly call on Gene
raj Gordon for the principal Of the loan,
and no attention is paid to the calls.
At the importantly of Mr.. Fish the
firm of Grant 4 Ward are then
compelled to take the loan up
from the Marine Bank, and they do so
and pay the $4,000. This gives them
the control Of the entire stock and
bonds of the mine. On March 6, 1882,
a meeting of the directors of the com
pany is held, and the asked for resigna-
ton offered by Gordon as president is
received and accepted" Then, at the
suggestion of U. S. Grant, Jr., Mr. Ii.
&. Otis, friend of the family, is made
manager Of the mine at regular sal
airy. Money is steadily sunk in the
mine under his management until
finally. when the firm had thus lost
altogether between sl30, 900 and $780,
000, the mine was shut down. The
mine was afterwards sold to Otis for
$1,000.
LOSSES IN THE WEST SHORE.
Ward also tells how friends of Cen
ersl Grant, among them General Horace
Potter and General Winslow, induced
him to take 1900, 900 in TIE West Shore
bonds and stock, on the assurance that
1.-The calls on the subscription would
be few and far between" This turned
out not to be the case, however,
and Ward thus tells what followed
The firm did pay the entire amount
of General Grants subscription
namely, s200,000-and received $780,
coo Of ), frst-mortgage bonds and
100000 of stock. Some time after
this it was found necessary to issue
certain terminal bonds, Of which ter
minal bonds they had to take 100000.
This made 500, 900 invested by Grant
& Ward in the West Shore railroad,
on which investment | estimate the
firm lost from 1920, 900 to 100000.
WARDS FIRST FALSE STEP.
In the early part of 1882 the various
drains on the firm became so heavy that
Ward, to keep going, resortCd to bor-
rowing money at high rates Of interest,
hoping that with a more active stock
market to get even again. This was
my first false step Ward said. Then
began the imaginary contract business.
II was in corner" Ward said. 1.-The
people held our paper. They expected
their tremendous profits, and | was
anxious to retain the reputation had
gained" Then is given a copy Of the
account of L. S. Grant, Jr., from
April 90, 1888, to March 10,
1884, showing the imaginary pro-
fits to be s575,200. In addition to
this, as partner of the firm, he drew
out between August |, 1880, and May,
1884. &l44,6Sl.4l, and as still other
profits between June 0, 1879. and Au-
gust, 1888, $50, 542.59, making grand
total Of cash profits drawn out $40
424. This" Ward said, he lit
orally took out and could have kept out
had he so desired" The items in
- Buck" Grants account are covered |
by receipts, ETC.. in Wards possession,
showing that the transactions really
took place. A letter from " Buck"
Grant to Ward is also given, showing
that the former knew Of the - con-
tract" business.
GENERAL GRANTS ACCOUNTS.
In answer to a question regarding
be financial status of General Grant in
he firm Ward said According to
L. Lool-, A. aooount q . hatuaan Gan |