The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-29

million dollars. Even after Grants accession 10
which evertwhere denied The high place. Of the
Administration had been efectuallJ deprived
q the power 70 tanner with ,hi. sacred u1s.
hope proved to be but snare and delusion.
Edmund burke has somewhere saidi No
property Is secure when II becomes large enough
TO tempt the cupidity OF INDECENT power Grant
had not been year 10 ofaoe before the rapacitI
OF the crew which surrounded him-BOsi
Shepherd, Halleti Kilboutn, John o. Evans,
J. v W. vandefburgh, and others, all Of them
eonfessedy nj mbers Of the real estate Ring, 10
which II 10 more than suspected that the Pfesl.
dent himself MAS a secret partner-was directed
10 tho millions OF deposits which bad been 40.
cumulateu IN the bank. These con. pirators found
ready sccomon,.ss In tho finance COMMITTEES and
actuaries Of the ,astitu Ion. Together tbei
formed a combination BY the operations o.
which At times aud "a ways w nn nS ,Knt.
less OF insufficient securities, =. Cd 90 seourl'
ties whatever Meantime. however me no,o.
rious banking house Of jay Cooke CoY two
members OF which, Henry d. Cooke and Will
liam :. Huntington, controlled the finance SoVn
OF tss 9s nsa nsa a. to ho nmouns d
f705,OO0, and had Invested the proceeds w the
bonds OF the Pacific Railroad company ,n0f
was this oil. In the early part o. the, year dlei3
;S,s sauio finance committee nad ifnt sIp'@H
the available funds TO their oronisa on u'sS''
worthless securities. -,
CURED 70 some one that 1t might be safer to
give the color Of law to their proceedings Tne
honest men IN the direction ID been crowded
out and, az wo have seen, had been replaced by
the special fiiends Of Gen. Grant, like Henry ID.
Cooke and his coniederates Oh tne snepheto
10 Congress stood ready to supply whatever
legislation was necessary to enable these sharp.
srs to carry out their predatory designs. Thef
1rst step was to secure all amendment to the
charter removing the freedmons iufalhbe safe.
guard Tor tbs security OF their deposils-the
wise provision that the funds Of the Institution
should be Invested only I'm the STOCK, bonds,
Treasury notes, or other securities OF the United
maindef OF the work was simple enough. All
they had to do was To help themselves. and thsy
did IL without pity or remorse.
BY the amended charter, authority wss oven
10 invest one half Of the deposits " In bonds or
notes secured by mortgage on real estate" rhe
loans II this class were generally made through
the 1rm OF Kiloourn & Latta as brokers. they
also acted as the appraisers Of the real estate
pected. the property was often falsely valued,
besides being subject to defects of title and
PRIOR liens In tais way bad debts were ere.
strd II Washington alone TO the amount ~
tlt7l,22d 55. So much for che real estate fund
Ne 1oms next TO the Investment Of mat
Of distinction, was denominated the "vsns-
BILE fund" rhs was professedlS 40 in
TO V fsp.ymsn, on demand. and in IN.
way practically subject 10 The n OK OF ths Of.
neers. ln ord a. the charter expresses 1t. ITO
meet tia current payments Of the corporation"
Al Immense SUN was thus invested in scrip
which vas Aesoiutey sHlueles-, or else WAS
isiaed loan "a shares 4 the Morn. Mining
without any .ecnrity, Hallett kilbouIn and
John y. Evan, On second mortgage bonds VI ths
sawsy on shares u the seal Lock Company aud
the Metropolis Paving COMPANY. j.. III.
Brown ou stock Of the District Car Loan
COMPANY. Holttclar Brur on shares u the
Capitol Hill Binding Association, v W
Marlborough on Claim tot wnts on the
Washington Aaueduet. 90 ON f9t work 90
Pubic Works, also a. Treasurer Of the Abbott
Pave Company. and others 20 ths Aggregate
uuu4O Der OF many hundreds. This sickentnR
list comprises pty-v0uchers Of sch poi- stresses,
domestcs, iaoorers on the public works and
pretended cllms Of all eorts on the bankrupt
treasury VI the District II Columbia.
IL 10 perhaps bIt lst TO state that the natnss
Of Boss shepherd. Measurer bcock AMI Post
dent Grant Do DOT sppeM on the roll OF de.
faultefs TO the bank. Neither do ind he
name Of Rutherford u, Hayes or that Of William
| A. Whesler. although both OF them, as re re-
ssntatses 10 Congress, stood by. Ike saul Of
| Tarsus at the stouins Of the protomntyr, con-
ssntine TO the plumber OF the UNHAPPY freed.
| himself a banker. and he at least could not
| plead ignorance Of what WAS gcine on. BESIDES,
| Of democratic faith. that the party IN power
| is responsible tor ali legislation white in pow
not wholly Idle when the loot" came to be
divided, | viii cite a portion OF the testimony Of
one " the witnesses (Nt fuIvisl before we IN
vesutating eonlnit,s- ~ tbs house 81 a.o'.
| ,entatlves
su Aney nc ..r,,An, sctusr, Of the oans si.ysl ~
nad ncyct done W. ing hing IA the BANK except e.
ss NpsgnY KIN n' AZ nca n e NJ 81 All Ss
Ihtt pflie-.i t,l.Hsata Re, ~ Ns4. M ei'.
octus ~ 10 reo i,ci ID andu.e It Ne sall aat va
| d,nnuf-h came 1in ~anun5 some Money ~ pN on
buy = account. ere approved, bul l31f a. ,cl.si
Lal, va. 90 saturday 9ls s "a PA' 'o' % Mon
'4a ', he "oa r anq,vs en- IN: qiSnsf
ter ter i.y 90 Sc II sheoA r. AMI coai nj see en
When id see hin shepherd va. more forcioie ihat
POI t.. sud GO nm lee va 10 dAmnei urn To- -,
.ha .1ney 80 9.sI.n na ~ at Va, sos Ar,
| In many OF toe thirty.fou' otancn tank
-nich. without authority OF law hai oeeh e5
ta0hshed in various ,rts OF tue cSunlrV' as Iced
err to the main concern, the officers seem u
have followed the example 81 hose 10 ia
parent institution. Oy emoelLlinR y otherwls'
wasting ths funds IN their control. Pallut
banking houses were erected PecuiatiOn
waste and fraud everywhere held hign carnival
While this wholesale robbery was going on
repeated efforts we're made 70 induce the ma
joiity m Congress u order An Investigation Of
- affairs NJ 4. NJ Sperry. the General In
spector Of tbs bans and it, branches
tesunes under oath that Tor two year
hs know that this colossal institution va
automatically robbing nearly hundred thou
sand Of the sOiured population Of tue country
for two yelTs he htd pronounced against II u
tho councils 81 tue Corporation. for tso year
he hal sought Congre,slOnal inve-tis",ion. T.
quote hi own worls ana Tor Reasons "hch WI
appear ~ the sequel ASK yodf particular attel
ton to THIS uointi " For two wears. Nj. ca ar
man. nave been working 10 get aCongressiond
| lnvrstigattou." He further swears;
| The fairs Of the Freedmans Bank ought 70 nav
been Nould w lolg before, because ~ Wa very ~
vie Oily anu uuIuauAgr aDu institution, aud ua1 Zee
| trylug for 4 year tYO t. nave lt wouni up Ia
cashiers most u the oranches we're set OF scpuu
drrls ana tlevess mean partlcu arly those Al hc.l
| Fort, Jacks luvlle, FlOudl, Mooie, anu NlcksbHrs
These fellows wore al thieves aud scOll .reis an
maze ~ UuAes bout n. The cnsnier AT J4cksoANil
toos s. 900 from the Olng and loaned II TO nj 500 ~
law without security ~ order to maze up aencl
which the slniHllw nal IN his account A. TAX cOdeetu
iu one Of Lac counties. , ,... 800
The, wefe all thieves and scoandrels, hut iheJ wer
ali plnus Ani come Of them were nlnlst re. ~
cashier al Jacksonville II mister AMI to-day be III
alirge sunday school Almost all OF theD are mlli
t-rs.
In order to convey anything Ike an adequ1t
idea Of the atrocities perpetrated 10 the IN m
agement Of the bank IL Is necessary 70 REFER q
| the manner ~ which tue accounts were kept
/ The experts employed 10y tue investigating CO ~
| mlttee testified AS fOllowsi
We found leaves cut from the original ledger, lesVe
without w nbeT pasted tOg ther bAances not brous
forward aud Of which, al TINS date no trace ma nee
fuund aud these Omissions occur ~ every OoOA 30 Ia
eIIu4lued
It's our privilege as wei, A. our duty 70 slale thh
more perverted arrangement coull scarcely ne dtN -
by human lngeIuy y, II the design hau hrep 70 oocuI
the .rAusacf lIL- If lne insliutOI lhconpettHcF,
/ tue guuIu. NAV be madf an excuse Tor Ialpao.
errur- aud ON. ssuAa But when rm.uelt ua-Ar1 AlA
/ Henry u Nllkc ani william S. Hdui gtOhl dfcct 10
yastu,ut ana Indicate TIE DusLeas " ne Asttulol
The auUugN ialls
Next Nr Sperry testines that In the Wa HING
ton Branch he found difference between IN
lelger- aud the general acco mt Of some SoO,OOO
ana he tuTtheS addsi IRE have been ?