New-York tribune., 1874-07-04
THE FREEDMENs S4VINGS BANK.

PROVISIONS OF THE RECENT ACT AMENDING ITS
OBSERVATION-DISCLOSURES OF TIE NEW POSITION
OF THE COMMITTEE-LEGAL ADVICE sOUGHT-TT
LEADS To THE BANK BEING PUT INTO THE
HANDS OF COMMISSIONERS.
The recent act of Congress, approved June
23 amending the charter OF the Freedmens savings and
Trust Company provides that Onehaf OF the special de-
poss received the passage OF the act shall ce IN
vested in security situated In the vicinity Of
the branch where the deposits have been made ana the
remaining half United States bonds. Under this law
bank order to those who made their deposits
previous June %, many OF whom had complied with
the 60 days rule, would have TO realize in
upon the held 10 that date. and deposors
could not paid with funds received later II seems
that the Company unable 10 do so, and Frederick
Douglass the President submitted the subject. in the
shape OF several queries Thomas j. Durant Tor legal
advice and received reply On June 29 de was OF the
opiuon hat the law OF June % dd not authorize the
bank TO refuse payment IN full depostors who had
compiled with rule Of 60 days nOtice OF wlthdraWal
Of deposits Tie Trustees could only part OF any
deposit and written obligation that the deposltof
would not demand further sum untl al
others had received equal proportion by
the voluntary argeement between the Company
and the depcsitor. Such contract would not
bring the Trustees 20 the point Of placing the BANK IN
Tue hands Of COMMISSIONERS thdt event. Dy me terms
OF tie law. could Ony occur NJ the G'cIS.Iou VI nv I
Trustees or the order OF Congress. Mf Dhrdnt asO
said the Trustees could the Old accounts III Tue
hands OF commissioners, anu SIM continue Ihe paA 'd III
der their control in relation TO the new special de-
potors all the business must proceed together ana %
closed together Other question: were aiis - ~ -, No
MIR Dnrant closed ds follows; The Company can on no
acrOiut and consideration Invest Jhe rpeoIA uo
posIts received from branches IA any other way & ai
mar prescrbed By the first section OF the act Ot june
1874 Special deposits made at tne BANK IN Waslns
City might perhaps, under certain cObstIucuon VI
the law be deemed rest on different IoOtuEi y@us @
the spirit Of the law is against me dstj'IOn ION i' ~ i
design is to insure the investment oi the iunus Vi nv
depositors In securities Ile OJect Oh Tue
tory legis alton OF June, 1874, was 10 Keep 'Io ~
new deposItOrs from any enSingnS contact Win ne
preexlsting securities" This answer wIs DIough out
Dy the Trustees asking WleJuer lueJ C1u'i Io'' q
tnnorary expedien invest Onenaf Of the sptcia ue'
no-ts IN undOubted real estate loans, now HcIu ID
i,ssets NV the Company AT the principal Oince.'
These repes decided the Trustees 10 put the bank IN
the hands Of commissioners the best method 70 pro
mote the pest interest Of the depOstOfs inc vote on
nate AZ commits Robert Pnrvs (coored OF fhii-
ephia ex Postmaster General CresWelI, anu II Lei
On Thursday the bank Washington neither paiu ou'
nor received any money, ana tne various ;.
instructed 10 follow the same course !. - ta,,g
will take TWO years To close up the Ouslness, tuO
partial pay lnent may be made wltnln lew mon'"S'
TIE COMMISSIONERS APPOINTED APPROVED 81 Ihh
SECRETARY OF THE TREASURY - DLPosToRs
SELLING THEIR PAss-BOoKs.
| w WAsUISGToN, July 3.-The designation oil
commissioners made by the Freedmen's Savings BanH
and Trust Company has been approved by the Secretary
of the Treasury They consist Of POstmaster-Genera
| C-osveu Dr. c. b. Purvis, and L. II. Leopold. II
onorted that some OF the depositors In the Freemeh
papk are selling their pass-DoOks for less than the
vaIue either from necessity IN Ignorance OF the iae
that Bank Examiner Meigs, after a thorough exahin
durting had aud doubtful debts at 9j cents on uc
lar The officers OF the COMPANY say that with prqpuei u
care ON the part the Infringement, tue DOCKS WI, w
worth more than that SUN, and that % LIRe NV
! NlIl be made at a early day as Is practlcaDie