New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-04-30
The Freedmen's Savings and Trust Com
pany.

The Freedmen's Savings and Trust Com.
Dany.
From Washington City and New York
come notes of warning regarding this finan-
cial institution. It sppeafs that many de.
faloations and Irregularities appear upon
the record of this depository OF the laborer
in the vineyard. High andextravagant sal
aries have been paid to favored officials,
and discrepancies have arisen in the &C.
counts of trusted ones who manipulated the
affairs of this bank of the poor laborer
Representative Bromberg, of Mobile, has
directed public attention to the matter, and
it is probable that the whole institution
with its thirty correlative branches, will be
thrown into the hands of receiver.
The branch in this city has always stood
we'll and may possibly come out clear, but
in the face Of the damaging disclosures
made in the halls of Congress and in the
public prints of the North, it would Ger
tainly seem right that tho depositors here
should have straightforward statement
Understand us; We are not writing sensa-
tional article. This paragraph is simply to
give correct and reliable information to all
those who may be in any manner interested
in the matter. Ii, as the New York Herald
says, ian effort will be made to close the
affairs of the institution without delay" it
is proper that this public should know it.
The Washington correspondent of the
Baltimore american of the twenty fifth in
slant says:
The Secretary Of the Treasury sent to the
House to day tho report OF Bank Examiner
Meigs upon the condition of the Freednen's
Bank and it's branches in the various cities
of the North and South. The liabilities of
the institution, including those of it's
arc 50, l21 ,O08, Of which $lO6,5 500 are bad
and doubtful debts, showing deficiency of
SOL, 1856. In other words, the depositors
are secured to the extent of about ninety
three cents in the dollar.
There is a discrepancy in the amounts
due depositors between the deposit books
and the general ledger of about $40, 900,
but the examiners think it the result of
carelessness in carrying accounts forward
and opening different accounts. The by.
laws were SO amended on January l of the
present year es to allow depositors only
such interest as the profits Of the institu-
tiOn warranted, and the examiner says
that If depOsitOrs will exercise reasonable
fOrbearance for ak or twelve months un-
der the regulation, it will give the institu-
ton time to recuperate from the misfor-
tunes of the past, and add largely to the
safety of deposit0rs. The examiner ex-
presses hope that Congress will still con.
tinue to foster an institution which has
done 80 much good, and can still do much.
The examination of the Washington or
main branch shows discrepancy of over
ZOO between the amounts reported due
depositors and the examiners figures, and
the examiner attributes it to the gross care
lessness in keeping the books. Many &C.
counts were duplicated, many transferred
and not crossed of, deposits and drafts
made by dealers have remained unposted
for several months, and the examiner finds
it impossible to prove the books OF the bank
without checking back all The entries to the
time the bank was started or calling in all
the pass-b0Oks Either would occupy sew
eral months, but one or the other ought to
be undertaken. In some instances debts
have been posted as credits, and in others
credits as debits. There has been no improve
ment in the bookkeeping, the difference
being twice as great as last year. The ex-
aminer presents list of losses made and
securities taken. Among these ars the fol-
lowing:
On Auditors certificates and district
loans of the face value Of $l64, 900, $I44,6l4.
To Hallett KilbOurne and John .. Evans,
mortgage bonds of the Maryland Mining
anu Manufacturing Company, $4,000.
To the AtchinsOn branch OF the Union
Pacific railroad by contract for proceeds of
sales of land in Kansas, $4,000.
On bonds of the International Steamship
Company, no interest paid, $4,000.
To Representative Purnam on $40, 600
worth of Florida State bonds, $4,000.
On the stock Of the American Seal Lock
Company, $C0O0
To General Howard, the vice president,
and Cook, the treasurer Of the Young Mems
Christian Association, $33, 900.
To the Washington Club $28,5G0.
To the Howard University. $4,000.
Numerous sums ranging from $1,000 to
$4,000, on which no interest is paid.
The examiner recommends closing the |
1on-sustaining branches and compelling
'he managers to exercise more care in ex-
.mining the character of securities accepted |
or loans '