New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-14
WASHINGTON.
THE FREEDMAN'S BANK.

,rs rnANs TO THE RING-CHARACTER OF r. j. FLhM-
,SG's AssRTs-PoORNEss OF THE SECURITIES
GIVEN.
lyRoM THE REGULAR CORRESPONDENT OF TIE IhiboNI'j
WASHINGTON, June 10.-Of all the dishones' trans
actions which have been dragged INTO inc hs"',
within the past few years, the most WICK" anu
heartless are those which resulted IN the laiuic VI
the Frcedmans Bank, and in the roboery Vi 'iou-
sands of poor cOlored people. struggling IN 'he ioo
of almost insurmountable obstacles to become use
IN, and thrifty citizens If the negro has one nat
nra, vice which it is harder to overcome than
,pother il is that of imprOvldence. The condition
of slavery under which the present generation mas
heen reared of course accounts for this the coored
man in the South had no inducement or opportunity
IN provde for the future either OF himseii OF MS
children and it is not. therefore, to be wondered at
that when thrown upon his own resources he shoulo
unfortunate present enjoyment to future wants.
To encourage the freedmen to cultivate habits OF
thrift and economy, the Freedmans Savings ana
Trust Company was formed Chartered py 'he
United States and to some extent under the super
vision of the Government, the colored people Hi"
confidence in IT, and intrusted to it their small sur
pus earnings, which, but for it, they would not have
saved at all or would have placed in the hands OF
,bor old masters. How they were swndled is now
AN old story. little light having been thrown upon
the subect by the reports of the Commissioners ap-
u,inted 10 wind up its affairs. The Washington hing
got control of the bank and robbed it most unmerci
fully. Having got possession of its Finance Com
mittee il lent out its money to Ring contractors ana
Ring operators insufficient security, OF no security
at ALL and now, while many of the men VINO snare
the responsibility for the collapse of the institution
have grown rch the poor freedmen are unable TO re-
cover their money, and the prospect OF ever getting
more than small percentage of ii is far from good
A., .f,t4t.. SInna \
failure have given no more information than was
Absolutely necessary, but now and then some par
tcnlars leak out which disclose the wickedness OF
;ts management in the very darkest colOrs. Robert
I Fleming of this city recently made an assignment
Of his nropery for the benefit of his creditors and
an examination of his assets by committee OF the
latter was made about month ago. The report OF
that committee l now have before me- The very
first item Of assets consists of two building lots IN
This city assessed leash value) mt $l3,266 20, but
estimated by Mr. Fleming to be worth $25,254 40
On this the Freedmans Bank holds deed of trust
for SOL. O16 &C, and has paid taxes amounting to
SG63 3d. making $2l, $50 OIL without interest Oh
expenses. The committee do not think that the lots
will sell for enough to pay the deed of trust In this
rase Mr. Fleming obtained loan amounting to nearly
600 more than the assessed value OF the property on
which he gave a mortgage for security. But 1t Is
when we examine the schedules OF personal prop
erty accepted from Mr.. Fleming as security Tor
loans that he rccklessness of the management OF the
bank becomes most apparent. For instance he gave
IA security for note of $4,000 and interest:
Auditors certificates at 20 cents, worth $9,7o| 62;
bonds of the Young Mems Christian Association at
80 cents, worth $1,000, and two deeds Of trust
amounting to $4,000; total, $15,307 so. Had all
these securities been valued at par they would have
been worth only 500 sol 33, or more than $1,000
less than the face of the note In addition to this
the bank holds another note. OF Mr.. Flemng's Tor
SlO992 So for which it has not dollar of security
Mr. Fleming is builder and among other work
which he did in the District was the construction OF
houses for Gen. Howard, Gen. Balloch, Prof Langs-
ton, and William J. Wilson, the colored cashier OF
the bank He seems to have been kept afioat solely
by loans from the Freedmans Bank. If the accounts
of other Ring men with the bank could be examined
Nh equally dsgracefu state of affairs would be dis
covered,