The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-01-04
CHAFFEES SECURITIES.
Continuation of the Testimony Of U. S. Grant,
Jr.--Ward Confessed His Rascality.

NEW YORK, Jan 3.-There was further
hearing, to-day, before the referee, on applca-
ton of Jerome B. Chaffee, Buck" Grants
father in-law, to determine the title to securi-
ties to the amount of $500, 900 placed in the
hands of the younger Grant and by him turned
over to the firm of Grant g. Ward. The exam
ination Of U. S. Grant, jr., was resumed. He
had decided to make an assignment, but tried to
get back the securities in question to put them
into the general fund of his estate and then
make an assignment. The securities were Sc
cured before the assignment, and then the wit
ness quietly held them and waited until Mr.
Davies made a demand, when the witness sur
rendered the keys of the safe-box. The witness
had, one or twoSmonths ago, received and cor
rected the contract account received from
Ward since the assignment, and the witness
had corrected and returned the same
Ia that account were erasures of the
amounts of checks paid Chaffee. Every
thing in the account was in the handwriting of
Ferdinand Ward. The witness had never known
of any government contract or direct dealings
with the government. The witness saw Ward
the day after the failure, and asked him about
affairs. Wards nerves were unstrung. and
he cried great deal. Ward said he had been a
very great rascal; that he had robbed every
member of my family; that he had robbed US
totally, and he humbly admitted it. Il told
him in reply" said the witness. t'that believed
he was scoundrel, and the most he could do
would be to tell the truth" He took Chaffee's
funds as late as November because bel would have
failed then if he had not. The witness had no
idea of the magnitude of the so-called govern
ment contracts until after the failure. Up to
the day of the failure he believed the firm rich.
He looked over the surplus, which was large,
and his personal account was good one. Fish,
Grant and Ward were the first members. The
witness put in 100000 cash. and supposed
Ward and Fish did the same, but he had since
learned Ward put up worthless securities and
Fish put up the notes of Ward. Monthly state
ments OF profits were made out by Ward and
handed to members of the firm. The witness
supposed his part was to find business but soon
found himself reduced TO the position of doing
nothing General Grant seldom came to
the Office, but each month would ask
how we were getting along Ward was
the man who acted for the firm.
One day. in Wards absence the witness ordered
purchase of stock for the firm. Ward came in
and said had no right to do So and the order
was assumed by me personally 1t resulted in
loss of 900 i'll one day. Chaffees securities
$685. 900 in railway bonds and $40, 900 in mining
stock. These were sent from Chaffee to the wit
ness to be kept in his box. The wife of the wit
ness drew the interest on the governments, hav-
ing power of attorney from her father, Chaffee.
The first year of the witnesses marriage. his
wife thus realized &c. 900, and the last year $27
600, the amount being increased by reason Of
profits and investments of previous income from
such source The so-caled contracts, Ward
said, were of his own working up, and he would
guarantee any one who put in money; and he
took witness down into the vault and showed
private box of his, packed with securities to the
amount, Ward said, of 81, 800, 900. The witness
loaned Ward $4,000 before he got $lOO, 900 of
Chaffee. On May 20, 1885, Chaffee gave check
for 800, 900 to the witness, who loaned it to
Ward, with receipt guaranteeing profits.