The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1874-12-31
SPOLLA TON Of THE FREED.
MANS B.4NK.

the condition of the Freedman's Savings
Company at washington and the real
causes which lead TO its bankruptcy; and
there should be complete exposure Of
every name in any way responsible for
the robbery and T in Of that ,institu-
tion.
Coneealment Of the truth is no longer
possible, but il should be verified offlci-
ally, in order that the thieves may be
branded with public scorn now, and be
rigOrousl prosecuted assoon as the De-
partment of Justice shall be- rescued from
It's present pollution, and has been so for
years. Itneeded only the pinch of the
panic to tear away the deceptive disguis-
es and to grind to powder all the false
and fabricated statements.
1t is now certainthat several millions
of the hard savings of poor freedmen,
their wives and their children, have been
heartlessly stolen. The Washington
Ring obtained the largest share of the
spoils by means of a criminal conspiracy
to which some of its chiefs, constituting
fuence committee to make loans, with
certain wanton knayes who shouted loud
est for the rights ofthe "colored brother"
and ONE of the officers ofthe bank, were
principal parties.
The original design of this bank was
pure and philanthrOpic. At the start it
did great good to the race just emerging
from slavery, by encouraging habits of
thrift and industry. 1t expanded rapidly
in growth, so that in eight years some
fifty-eight millions of dollars were col.
lected and distributed through the par
ent institution and its agencies.
The first charter was granted in
March, 1865, and protected the deposit
tors against loss by requiring every dol
lar of their money to be invested in
bonds of the United States. Agencies
were scattered over the South and in
some of the Northern cities, with con-
ditiOn that their deposits should be trans
mitted to Washington. As the business
increased, the cupidity of venal trick
sters who saw an opportunity to plumber
the negro proportionately expanded.
In 1870, contemporaneous with the
scheme to organize the Washington Ring,
the character was so amended as to de-
stroy the best safeguard, or the deposit
tors, under the pretence OF enlarging the
profits and demands. The door to fraud
was opened by adding the clanse which
authorized loans to be made to the ex-
tent of One-half the whole deposits on
real estate in double the value of the sum
borrowed, and also to hold and improve
the real estate of the bank in Washing
ton.
Interpreted by the light of events
which soon followed this radical change
in the charter, it is now certain that
the amendment was concocted by the !
Ring as the readiest mode ofsteahhg the
earnings of these poor people. j. W.
ALvORD who graduated from an agency |
Of the Freedman's Bureau had helped !
to organize the negro vote for Grant in |
the Southern States, and wasIa member !
of the Christian Missionary Association, |
became President. Gen. Howard was, of |
course leading trustee, and most of the
others we're of the same kidney, ~,
A Committee of Finance determined |
all the loans and discounts, of course
with the privity of the active trustees
and officers of the bank, who were all in
the same boat. Henry ID. Cooke his CASH
Ter W. S. Huntington, and Lewis Clep.
hane, Ring contractor, were majority
Ofand controlled that committee. Cooke |
was then President of the First National
Bank, and member of the firm of Jay
Cooke& & Co. He was necessarily famil-
lar with the standing of the small busi-
ness community of Washington, and with
the responsibility Of persons seeking
loans from banks.
There are no recent data showing the |
true state Of the bank. 1t is therefore
necessary to take the figures furnished
by the Treasury near the close of the last
session of Congress, which are sufii- |
cient guide for the present purpose. In
less than three years, or during the rule
of Shepherd and his crew, of whom
Cooke was the ostensible chief from be- |
ing Governor of the District, the loans
on 'real estate" for the city Of Washing !
ton aggregated 81, ,473 3,22G.5j, and on
"sundr securities" S535, ,lG0.56-S2 ,0OS,- |
3S7.1l. Add the overdue and unpaid in
terest, and the total exceeds two and
quarter millions. A large portion Of the
so-called real estate was unimproyed
land in the county assessed at eXOrbitant
values by Kilbourn & Latta, Ring bro
kers, who themselves were large borrow
ers. Another portion of it was not real
estate at all, but worthless chattel mort
cages and notes of hand unsecured.
Ring leaders, jobbers, contractors, and
lobbyists were the set who absorbed the
deposits of the bank. And for "securi-
ties" and collateral they pledged Seneca
stone scrip, the stock Of fiUiciOus COM
panies, and lot of trashy paper worth
at the paper mill about three cents per
pound.
Cooke and his coniederates literally
opened the vaults to the Ring, and they
stripped them clean to the iron walls OF
the S., ,33S, ,S9615 due TO depositors but
S967 ,90S.ll was available in cash and
United States securities at the parent
office and branches" That is to say,
fraction over ten per cent on the whole
sum of deposits was on hand at the time
the statement was made. The rest is dis
tributed in the money grabbed by Shep-
herds Ring, the bank buildings, and
other items.
Five months after the panic Mr.. Brom-
berg of Alabama offered this resolution
in the House:
ResoIred,i That the Committee on
Banking and Currency be and is hereby
instructed to inquire into the manage
ment and condition Of the National
Freedman's Savings and Trust Company;
and whether said company has violated
its character, and to report. by bill or
otherwise, such measures, as shall, lest
protect the interests ofthe class for whom
said bank was chartered" '''J
,The subjecS was referred to a sub-com-
mittee consisting of Mr.. Farwell of ILL.
nois, Mr.. Merriam of New YORK, and Mr..
Durham of Kentucky. Phey set 70 work
to whitewash the rascality, and Mr. Dur!
ham, anppright but inexperienced man,
was duped by the lying representations
ofthe bank officers and trustees, asewell