New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-06-23
FERDINAND WARDS METHODS
WHAT RECEIVER DAVIES HAS LEARNED.
ACCOUNTS KEPT ON SLIPS AND WONDERFULLY
MxrD-MANY ASSETS Not AVAILABLE

Grant Ward on May o, 1884. and after two years oil
aruous labor involving intricate and peculiar book ac'
he has At length make his report to the supreme
Court regarding the result OF his receivcrshin lie
states that he found the Books and property OF Grand
Ward At their banking Office. No. waii-st. ana in
two boxes Bankers Safe Deposit Co.. In the same
building. He proceeds to say
The business Of the firm had been entirely carried on
by Ferdinand Ward. the other partners having as
sisted him only in particular Transaction. The
accounts of their ransactions fragmcUtxry. dis
,onted and not in regularly kept books No complete
system OF bookkeeping had existed ana no complete
record of the transactions OF the firm could be obtained
except by combining such books as had been Kept Win
the check books, pass books and memoranda that had
been kept by Ferdinand Ward alone without the assist
ancu of any bvokkeoper Many Of tho transactions OF
the firm were uexplicable without personal explana
tious from Ward Many stub check-books containing
large sactiOns not fOuni IN the Office when
the r, cever took possession and we're subsequently,
discovered In the possession of Ward Copies OF some
OF these wero obtained by the receiver within few
months but all OF them we're not obtained III OctoDer'
1885.
The larger part Of the firms business had been
carried on by Ward in his individual name his personal
affairs had mingled with the FIRMS business, and
securities belonging to the arm appeared as ms nd
vidual property Moneys Of the firm mad been received
by him and thereof had been ma In the
firm hooks and large sums Of tho firms moneys had
been paid out by him OF which no entries had been
made in the firm lcigers Many important transsc
tons could only be traced through the checkbooks and
passbook As to the FICTITIOUS business contracts tho
receiver says amountingto millions OF dollars
had been obtained and paid out within two years anu
no entries thereof made in the regular firm books e1
cent that the bank and the con-
taDng the special account and kept under Wards control
deposits and discounts OF notes. and the cneck-
books showed payments No accounts with the ndivh-
nails with whom Ward carried Oh this business were
ilartn nj ref
to the OF the firm only by their initials ana
many OF these memoranda WARTS Possession at
the OF the failure and were secreted by him from
the receiver until October 1883 Many accounts OF tho
Transactions OF individuals with the firm OF Grant n
Ward could only be made up from the ORIGINAL checK-
books
TWAS found that many of the entries on the firms
books were unreliable, having been made by the book
keeper by Wards direction. Many OF these
entries did not represent actual transactions as
purported. Stock transactions often appeared
entered for customers when no such trans
actions had taken place. Substantially from the
organization OF the firm Wards practice was TO rehy
pohecate securities frequently depostne the proceeds
OF loans on them in his bank accounts Within
few months previous to the failure he had purchased
from the City OF NewYork S6,0OOOOo OF city revenue
bonds which he Immediately used for the purpose OF
raising money
The receiver found no means of making satisfactory
'"''',' f' ~ , $3.50,
tanned from the DOCKS anu mohoi"nu~' ho'o""'
ants employed TO examine the books
and % nron,ra l,.,s NJ the socks and
s.cnri,tcs of The firm I'm order TO prepare tie
oa',ar,s inv.nfnrs AID tb. accounts of individuals
e.. a, mn ,,ouirv a.; ,,.dl,trv ep.n "a; lie made by GUS
,n.nars NJ In, nrn,
-. ,... dad ON lima and the
"a" !" L. ~ ,d,,.d H. m. Office
report lollowh 'nr sc"ruu th-" "'ol"- :" ~
oil Grant " W ara envelopes were i"uhi th"t apPo"lo"
10 con am OF 10 nave c"nlainou " ,. a'
tes repr' ehhg i"alS n''r ny '"''t ~ 80.
ruNeIoprS poue iil' ~ m ,t ~ ' ', r,
III otne c'S's Wv @ "a, -, ~ i " -, So 49, in
''aI' us ntr,. ,nrr,t ~ ~ ,I. innrse,snt am
sun -, ~ ,,.,,r. cnn,,iu.d tl,sr.In wa.
~, ~, 'Ho Iii. ..n,r,is from the other paper,
rat',,n,, 20 IN. irau..ct,uus in scncduie
bonG and mortgage for S3lOO was |
tor,,ed he fe Of which ,unrur. 10 he IN Ward inlI.
,t,Iv and rms IA ,Irv-d to lie collect ,ble with over
o., ,ntsr.st and In he secured imam r. nj estate In
~ ~. s.',,rYt,s. II, Inu',,n, 70 mo drIfor.
'a % n, ~ !, 80. Ten ,t.ri,-ered the loan IN