New-York tribune., 1886-11-12
NOW GRACE MUST ANSWER.
ma RELATIONS WITH GRANT & WARD
~,rrvxn DAVIES ANXIOUS ABOUT IHS AA'o"
s15OO0O OF "rRoFIrs."

~.~-,vrp pAvrEs ANXIOUS ABOUT TIN MA r
e15O 600 OF "PRoFIrs."
vv,rsru r. Grace has at length been cai'eo upon ~
go to The charge that he has In his possession
ess"oi ,r,nr N Gmnt Ward In tho SUIT
Ss. bv Julien T. Davies, receiver OF tne hr'
~. rancrs have now been served upon MI "ia'o
....rnevs by W. h Honbower, the co"nsei Vi VIC
-..ivsr The amount which the receiver alleges 'ha'
a. Grace drew out OF the firm over and above whae
=. nut IN il $4,000. This is the sum which ferd
80 uans has all along declared that MI Grace
-. ros IN h.s transactions The suit was begun soon
s..r the failure OF Grant & Ward In May, 1854 AT
s,s time when actions were begun against W. O.
Warner and Others 49,.
To nrenare the complaint which has now peeh
carved. and which Mr.. Grace has until November "a
10 answer has been long and tor'uous pioooo'n,s'
ar Uornblowcr had expert accountants put on 'no
,.,,r as soon as possible after the case against W.
8 warner had been closed. To begin the preparation
nj this suit sooner impossible owing 10 INC hee
of building up the books for the receivers use, so 'A
he could make bis report, from the checks ana chech
books in his possession. The accountants oesan Nns
WORT last spring and did not finish 1t until late In the
ro.r Al so,n as MIR Hornblower returned from
A.. srst vacation he had taken In years he went U"
xor, at the results OF the accountants ihVeeusauon
The result has already been published In ihE
IT shoved that Mr.. Grace had cleared Sloo'oo", "
T. H. Tobey had made some sloo'ooo out Vi hi' wv
tr.neac,ions Mr Hornbower was occupied 'nroueH
A.. uno,e of October in getting his complaint In
.h.re and IL has now been served. The document Is
slmar in tenor 10 that In the warner ana olhcr case
and charges that the $l5O,OOO whlch IL Is apos0" ~
AIR Grace cleared in his Grant q "aru uahsao"0i'
belongs TO Mr. Davies a. the receiver Oh ,ho hiih -
accordance with the decision of Referee Cole III .nc
wsrnsr case in which the opinion was given that
some II a. OoOO should be turned over 20 INC aIv
P9int ,bs Of ooaas nsslso Of Il the 'He elai
lie has ssssrted sat IT., he hn aeant him 1he ro-
ecver Iasing has opinion ON the result oi an in The
psrts neutrality-suspicious. tenics biS o. aaerton sc pse
sample of the nature of the tansacuons petwccn M ~,
Ward and Grace and i1oey ha aeaa o the Contract
Agreements between Messrs. Grace ana "au n ai't t
subsequent checks with their indorsements some oi
these tran. actions Indicate interest as high as 20o
rer cent moneys loaned IL Is uhieIs,oou It oii.
he believed 10 be bona file contrA.ts, ana that Ihe
heavy were simply prohts MI @ OIaoo, ,,e1 az
not TO plead tie short statute of limitations on inc
charge OF usury, which is one of the points haue III
Ihs most important phase in this suit when II IT
comes to rarana an cary @ 6ay yooS % TG
Be the nght il VIII throw On the relations oI ohny Sr
s1e : 20 d to be- in Peru Mr. Grace testified before
the United States Grand Jury that Mr. lobey
we're s Sa aGy h hS Socs Iwn Of avg
Co will show the precise relation between the TWO IN
over The books it stated that Charles r. Flint, who
lett the firm Of W. II. Grace & Co. January last
edge of the books but has no desire to appear III
suit against his former partner. o.
In a recent conversation at the Sing sing state
Prison Fer linand Warl said to 1RIBUSE reporter :
al have repeatedly stated that w. X. Grace cleared
at least Sl50OOO and 1obey about 100000, and the
experts haVc arriVol at the same result In the
recent article in THE TRIBUNE IT was shown that
tLe check on which TOlcy wac Indicted was indOIsed
over to W. II. Grace Co., but the fact was not
noted that the $4,000 which wa furnished Grant &
Ward and on which the 5000 bonus was Tad was In
the form OF W. r; Graces personal check Io6ey
came to with the check and the transaction was
made with him. But the fact that II was MIR. Grace 5
check shows clearly TO my mind for whom the busi
ness was transacted. ] accordingly put on the stub
OF my check book the marks: T.. II. r. for W. r. g.
g.. .O6O / mad many such transactions with Tobey
For instance he would bring Mr.. Grace's check for
e5OoOO. and | would make contract to pay
$4,000 for the OF 1t for thirty days. TOley
found that pretty heavy profit to 90 to Mr. Grace.
60 he would divide it up ana have me agree to pay
him 80 600 and Mr.. Grace $4,000 JOhcy. of course,
kept this from Grace but In this while acting for
Grace lie sated down eOOt sum for himself.
have letters from IOhcy 10 substantatc what say.
and / think my CORES pOnience with Mr.. Grace II
have Col les of 100 letter. OF mine 10 HIM will
throw additional light the subject. The books
OF W X. Grace G Co for 1924 will supply any
additional evidence wanted"