National Republican. (Washington City (D.C.)) 1872-1888, 1874-12-16
THE EREEDKAN's BANK.
REPORT OF THE COMMISSIONERS.
BAD SHOWING.

REPORT OF THE COMMISSIONERS-A
BAD SHOWING.
The report Of the commissioners OF the Freed
mans bank was presented to Congress yesterday.
It sets forth that with but few exceptions, every
dollar received by the commissioners has been
deposited in the Treasury, and whatever expenses
have been betrayed have been paid by checks
upon the same. The commissioners speak Of the
dificulty attending the withdrawal Of the funds
from the several agencies. In some cases they
had 10 resort to the purchase Of the companys
property, which had been seiEed and offered for
SALE to prevent its disposal at ruinous rates, and
in others they had to pay the claim and costs Of
suit. The proceedings instituted amer their sp-
pointment have been nearly all set aside under
the provisions Of the act OF Congress, but in enc
or two cases they have been compelled TO replevy
property seized and furnish bonds to abide the
ultimate decision. The cash and cash items on
hand at the several branches as called for by the
books Of the company at the close Of business
July II last, amounted t. S49, 1912. OF this the
sum Of 81, 6se. IS only had been received up to
November so. The difference, SIT,442.s6, is found
and shorts carried In the cash Of some Of the
branches. A portion Of this amount, the commits
siOners tear, will prove . total loss.
The commissioners, after further speaking of
their transactions, refer to the difficulties with
which they have had to contend, owing to the de-
confusion Of accounts, and say, considering the
material they have had to rely on, and the per.
sons TO deal with, it is somewhat doubtful
whether they shall ever be able to obtain an alb
solutely correct statement of the liabilities and
assets OF the company; at any rate 1t will be
the branches show there are on the books Of the
company over 1900 depositors' accounts still
open, and each Of them requires o careful exami-
nation. Eor long time 1t has been known that
the deposit ledger balances Of several of the
branches, including the Washington branch,
were inaccurate and unreliable, those Of the
NJ n nhfnuf0n mt nv ~ fhak fraa
the commissioners took possession discrepancies
Of over S70,0OO The sum Of t16, 523 has since
been discovered to consist Of the duplication.of
portion Of the depOsitors' accounts, they having
been twice transferred from one Of the old ledRers
Of the company. On account OF the Irregularities
books tb smEelVes the basis Of their examination.
1t soon became apparent that designing persons
were engaged in melting the suspicion Of deposI-
senting their pass books. Many Of the deposit
tors themselves looked upon this action as an at
them Of the only evidence they had Of the com
pany's Indebtedness to them, and no amount or
character Of assurances seemed to be sufficient to
disabuse them Of this belief. All the schedules
except those Of New Orleans and ST. Louis have
been received. Most Of them show the amount
due depCsitors to be greater than the amount
previously reported BY officers in charge Of the
several branches.
Most Of the loans held by the company are
overdue and on many of them interest has been
allowed to accumulate for two, and in some cases
for three years. IN ordinary times the real es-
tate loans could doubtless be collected without
much trouble, but under the present circum-
stances their collection would be exceedingly
slow and difficult. The late financial panic and
consequent extreme scarcity Of funds the uncer-
tainty Of the future character Of the District and
the present high rate of taxation, all conspire to
retard the collection of these loans. To attempt
to enforce their immediate payment would result
in the greatest sacrifice, and to throw any con-
siderable portion Of real estate held security
on the market at present would make 1t impossL-
bic to realize the Indebtedness thereon. Still,
the commissioners are pressing, and shall con-
tinue to press, their collections as fast as they
are able to do SO, but up to this time they have
been able to effect sale to third parties in three
cases only Of eleven pieces Of property offered for
sale. In all the other cases they have been COM
property to avoid sacrifice and they shall probably
be compelled to continue to do SO for some time |
to come. As to the so-ealled available loans,
their collection is still more dif1cult About half
of them were made on District Of Columbia secu- |
rifles, now below par. or many Of these loans |
the security is inadequate; Of others utterly |
bank have been loaned upon mere personal notes |
without any security whatever. The same may |
class these appear to be the worst in the posses
sion Of the company, and the commissioners |
doubt whether even nifty per cent. Of their amount
upon the real estate proper Of the company, the |
commissioners hope to secure the cooperation Of |
Congress IN making sales Of the Wsson and |
bly, adapted.
Inc commissioners say tnat the exhibit OF cash |
transactions from July 13, 1874, to November 80,
1874, both inclusive shows a balance Of cash and
cash items on hand November 80 of sos, 352 The |
say their collections have, COM |
paratiVely speaking, been very small, and the |
cash on hand does not promise very early diVi- |
dend. Unless Congress comes to our aid and |
the purchase for the use Of the Gov |
eminent Of some Of the real estate owned by the |
company, long time will elapse before we can |
hope to accumulate sufficient funds to make |
payment Of twenty cents, for 1t requires nearly |
100000 to make such payment, and the amount |
Of cash in the Treasury subject to draft at the |
writing OF this report is ais 5OS50. The present
condition Of the books and accounts Of the COM |
pany, too, is such that If we had the necessary |
FUNDS now to declare dividend, 1t would not only
be imprudent, but unsafe to do 80. Hence It is |
he hncIarnh - |