Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1874-12-16
THE FREEDxgN's BANK.
Synopsis Of the Report Of the Commis.
siOners Of the Freedwen's Savings
and Trust Company.
Apparent Present CcBditi0n Of the AZ
fairs Of the Bank, and Suggestions
as 70 its Management.

| WAsHINaToN, Dsesnber 14.--Th,
commissioners OF the Freedmen
savings and trust company, Will present
their report to congress tomorrow. l
will show the cSsh ard cash items oI
hand at the several branebes, ss cailet
for by the books Of the company st tb'
close OF business July ilth las;, amount
ed to So, isl. OF this sum S9l $50 onl;
bad been received up to November 30th
The difference Of ST., Az dollars is found
70 CONSIST mainly Of temporary loans
bills, and shotts, carried ia cash bS
! some OF the branches. A potion O
/ this amount the commissioners feal
! will prove total loss.
TIE commissioners say that owitIg
to the detective system Of book
| keeping and general confusion OF &C.
counts, and considering the material
| they have had TO rely on and persons To
deal with, Il Il somewhat doubtful
whether they shall ever be able to OBJ
tain an absolutely correct abatement OF
the liabilities and assets Of the company.
AZ any rate it will be slow and tedious
RAOiE1Es 4hC LlOllAllI AEpDAAG VI NAE
! branches show that there are on the
books Of the company over $4,000 in
depOsitOTs' accounts still open, and each
OF them require careful examination.
For q long time it has been known that
the deposit ledger balances Of several Oi
the branches, including those Of Wash
ington branch, were inaccurate and
unreliable, those of Washington
branch alone containing, at the time
the com missiOners took possession,
discrepancies over SO, coo. The sum OF
SIC, ,523 has since been discovered to con-
sist of duplication OF a portion Of the
depositors' accounts, they having been
twice transferred from one Of the Old
ledgeTs of the company. On account of
the irregularities thus existing, the COM
missiOners made the pass-boOks them
selves the basis of their examination. 1t
soon became apparent that designing
persons were engaged ia exciting the
suspicious Of dspCsitors aud endeavoring
to prevent them from presenting their
pass-books. All the schedules except
those of New Orleans and St. Louis
have been received. Most OF them
show the amount due the deposit.
Ors to be- greater than the amount
previously reported by the officers
in charge Of several branches When
the commissioners assumed control, the
running expenses of the branches Of the
institution amounted to about Sl55, coo
per 8nnum. These hsve been cut down
TO about $50 600 per annum. Agents
have been retained at small salaries, in
q number of places, to guard the inter-
ests of depOsitors, and aid in winding up
the affairs Of the institution. kicst of
the loans held by the company are over
due, and on many of them interest has
been allowed to accumulate for two, and
in some cases three, years. The cOllec-
ton of real estate loans Is extremely
slow and difficult. As to the So
called available loans, their collection
is still more difficult. About half Of
them were made in the District Of CO.
lumbia, and securities are now below
par. OF many of these loans the Sc
curity is inadequate, and others are
utterly worthless, and in some cases the
funds Of the bank have been loaned upon
mere personal notes without any Sc
curity whatever. The same may SUBJ
stantially be said of the branch loans.
As class these appear 10 be the worst
in possession Of the company, and
the commissioners doubt whether
even fifty per cent Of their
amount will ever be collected. Ia at
tempting 10 realizs upon real estate
property Of the company, the commits
sioners hope TO secure the cooperation
of congress in making over the same, of
Washington aud jacksonville proper
ties, to the United States, for uses and
purposes for which they are admirably
adapted. In matter OF assignments, find
ing that persistent efforts were being
made TO impose upon depOsitors, the
commits .oneIs adopted q rule to recog-
nizs assignments only so far as to get
Over-cbecks in payment of dividends to
assiguees, but TO draw checks to the or
der OF the original depositoTs. This
rule, though severely criticised ard sp-
parently harsh as against some of the
most needy, has been found TO operate
on the mass OF the de-
positOrs, and keeping them from sacri-
hcing their interests for mere tIi1e.
The exhibit of cash transact tions from
July Is, 1874, to November 80, 1874
both inclusive, shows q balance Of cssh
and case items on hand on November
30th of $93. 1852. The commissioners
say 1.-THE cash on hand does not prom
ise very early dividends, and unless eOu-
ress comes to our aid and authorizes
the purchase for the use Of the govern
ment Of some of the real estate owned
by the company, long time will elapse
before we can hope to accumulate suffi-
cient funds to make the payment Of the
twenty per cent, for it requires nearly
$500, ,000 to make such payment, and
the amount Of cash in the treasury sub
Iect to draft at the whiting OF this re-
port is Sis, sos. The present condition
Df the books and accounts of the CON-
paDy, too, is such that even if we had
he necessary funds now to declare
= dividend, it would not only be impru-
1ent, but unsafe to do 50. Hence iC is
for US to say how soon div
dend Will be declared. Time should be
allowed US either to reconcile existing
or at least to arrive at
Iome satisfactory explanation Of them,
% that we may not be betrayed into the
payment Of obligations already satisfied,
,r neglect to provide for those still due,
Jut which appear closed On the books.
IN the meantime it would be well il con-
yress should allow US to invest the sur
Jlus balance to ourcredit in the treasury
If the United States, in United States
,onds, TO be kept on deposit in the treas
Try, so that the depositoTs may profit by
he interest which would accumulate on
aid bonds, until such time IS the funds
nay be actually needed. 1t remains for
Is, before closing, to refer briefly to the
manner Of paying dividends, and to sub
nit certain amendments to the act Of
June 20, ls74, the adoption Of which we
ieem absolutely neeessa y to the proper
discharge Of our duties. How are
livideDds to be paid, and where ?
How are depositors to be identified? ?
How are assignments OF deposit accounts
20 be recognized? These are questions
1f the utmost importance TO US ard to
the army Of creditors Of the company,
and require full and free discussion aud
adequate legislation before q dividend
ean possibly be declared. We hope, for
the sake OF further reduction OF ex-
penses, to dispense with the services of
most OF the gentlemen who now repre-
sent US at nominal salaries. We shall
be ignorant Of the address Of depOsit0rs;
most OF them being unable to read, it
will be impossible to notify them of the
payment Of dividends, and thousands Of
them, if payments are to be made by
checks, will find it itimpraeticsble to iden-
Iify themselves IN the ordinary manner.
Unless we revive our agencies by the
time our first dividend will De declared,