The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-20
NEUTRALITY-SUSPICIOUS.
mar yuryB s4vIYGs WERB USED BY
A THIEJJNG RING.
~s. ReaI E.tnte Pool and the shepherd GANG
Proa,,ns BY tho work of rpsliat,on-The
,.x..,iantion Of the Freedmans BANK

Che Real Estnte Pool and the shepherd Gang
proa,,ps by tho work of rpsiiatton-The
in,..,iantion Of the Freedman's bank
w.sutxcroN, NAV l9.-The House COM
ro,,,ee investigating tho affairs Of the Freed
mans Bank made their report to-day. Ihe' say
,hat the Institution degenerated into mo NJ
s,.ous sU,ndle. and was almost from the start
merely a scheme OF selnshness under the eulse OF
philanthropy, and to It's conndina victims an IN
cornorate body of false pretences. In ahuiUoh
,o tho speculatinR Rings the DisVr'o'
NJ Columbta Government came III W
hasten and profit by the work OF spo"-
alton. Its treasury was wholly unequal 10
tbs task of sustaining the magnificent e1pendl-
,uras Of the hoard OF Public Works, presided
over nv II. ID. Cooke and controlled by A. X.
Shepherd. Some erchequer must he found TO
advance upon the depreciated bonds and worth
less Auditors certificates Of the District or the
contracts must fail. and the speoulstions Of the
pool aud Of shepherd and his friends In out Of
the-way and unimproved town lots como TO
grief This mass of putridity, tue District Gov
eminent, now abhorred Of all men. and aoin-
doned and repudtated even by the pohticai
authors OF Its being, was represented IN Tue
bank by no less than I'VE OF the n'sn
officers, namely, II. u. Cooke, Geo. W. bullock'
william 8. Huntington. ID. l.. biton ana n n'
Richards. all Of whom were In one way OF o'"er
concerned in speculations more or less uepen-
dent for A successful issue on sustaining the
contractors under tho Board OF Public works,
and free use Of the funds Of the Freedmans
Rank. They were high in power, too, with the
dominant influences In Congress, AS the fact
that the legislation they asked was sanctioned
and obtained fully demonstrates. Thus II was
that vi hout cons ulting the wishes or regarding
the Interests OF those most concerncd-the de-
positurs-the vaults Of the bank were literally
thrown opeh TO interruptions greed and rapa-
civ the wolves literally became the pastors OF
the flock. aud, without conjunction OF Temorse,
devOIred the yUlngings committed " their
care.
THE PIuNDERISG CABAI.
The actual proof of improper conduct on tho
part Of the officers and agents u the bank Ia
bal. cons sting Of the President of the bank, ID.
j. Eaton: the Actuary, "A. -. Cooke the Chair
iuon a tDe Finance Committee, VIM. ). Hunt
ing,Un; the henchman Of Cooke, o. q. Howard,
Honorary Trustee tan ONCE and position IN
known to the charter; Lewis Clepnane OF the
Iiuancr Committee. and Few more. enough
to constitute quOrdm (nine), anu "A MAORI
~ # that Qve,i held high carnival oyel
The freed .nens hard earnings Ii Is IN proof
that the law req nring bonds and investments
TO be made exclusively on Government secu
rite was violated. and tho provision OF th'
aniead,a charter allowing the acceptance OF
real estate SECURITIES in double tue amount OBJ
tanned from the bank was mere deiu-ion anC
acncAt. Ii opened the door to the lnnumera
bic ta-caliies which quickly followed ITS adOp
non. 0S which the freedmen were swindled ou
OF Iber money Tor the benefit OF strang ers
while the cauting hypocrltes VINO had deceiveS
them under specious professions OF regard 10
their race. ana VINO have undoubtedly ditectl
or indlrecty shared Ia the plLuuer, 70 un
winged OF Justice. Hardly mad II passed AnC
been an, ruyed before the ofice Of the bank wa,
bcsiesed oy real estate agents and brokers. cage
To serve their clients by getting the l.rsest nc
conmodations upon the ve'y smallest possibl,
kecdrity having the semhiHnce oil cOnfOrmit,
with law. kilDOurn X Latta. the trustees Of the
real estate pool, we're there, and were actually
unseenily spectacle ID presented OF an attempt
60 serve Two MASTERS, thing dlscOuDtenanced
business intssrity, and pronounced i,npossiois
III scripture. Proof Of actuA fraud and disnon-
esty Is not wanting in tue following Instance.
THE PROOF OF FRAUD.
j. II. W. Vandenburg was pet Of the Distrfc,
Government, sort OF p-ote.e aud fsvorite con
tractor for the grand public improvement.
planned and put In execution by the Board OF
Public Works. The report saws that the secur.
lies on which Vandenburg borrowed money
rom tue bank were not worth four cents
busnel as salaDIe securities or evidences OF
debt The Actuary Of the bank himself, tneu
ID. l.. l. ton, was persuaded to accept as \ gra
tuity from NandenOurg half interest In q tll1,
00g contract for sewer pipe. Eaton put In nc
money OF his own, Incurred no risk or responsi.
10y, aiis 10 trouble ABOUT IL except "a
sign receipts for his share OF the profits. But lid
used the influence of bic position 10 pass Van
uenbmgs paper at the bank counter. and the
money thus obi ined W IS used To carry out the
contract In which tie WAS Interested as bench
Ciaty. This may not oe stealing. Dut, AZ an
deuUurg still owes to the bank, according to tn
eXuibit made ny the books OF that concern
tlH,lo4.Si-which. however, lie disputes on TIM
Rround that some forty or nifty Thousand dollar
OF his securities have been disposed Of and "A,
credit gwen MIN tine rest beng hardly worth
contest abOut-the freed men depostors hav'
the consolation OF knowing that they have beer
Heeced by "irregularity," to use the pohu
and exculpatOry phrase em Dloyed by the presen
Commissioner when compelled to alude To th'
rascaiitlos Of their predecessors la the III mage
ment nj control OF tue Affairs VI the bank. Bu
tue committee say that the Vandenburg- EatoI
"nregularity' II small IN actual criminality com
pared with
THE SENECA SANDSTONE swISDLE.
This bubble was fancy stock gamble got az
by n. ID. Cooke, John l.. kidwell and II. II
MONEY was drawn out on worthless securities
Every one OF the survivors In this gross fraud
ClrmAar, Hdllett KilDourn ana 10 Evans-
kLu.li be indicted, tried and punished L
the extent q tne law, while tnose who are pc
euIl-FnN responsible should be sued for thu
rec 'Soy OF tue money or good securities, con
sistin. III par, u $20,UJ0 first mortgage bonds o
the Maryland Freestone Mining and Nanufao
turing Company, Of which tue DinK was rooOet
BY the cOnspIrators. Inc committee exculpats
Leroy iutlle from actual crimiDality, although
III lame appears to the secret agreement VIII len
Was tue COMPACT OF fraud with hilbouIn anC
Evans because no appears TO have been only
weaA aud unsuspicious TOOL OF his asso riates OF
tie tinauce Committee OF tue bank George w
sShekney, tho Assistant Aetuary, and. ate
Eaton Actuary Of tue bank. IL shown 10 hav,
n-en not only privy ~ the crooked transaction
tul the principal actor IN others, Of winch
II ,nduient conversion Of the funds 10 his owl
private Use Is one. aud Tor which ne merits anC
should receive uulsnmeut.
Add 10 the theft perpetrated on the ban
~ the urf1cers and others through tine con
nv.nce VI It's officers the act " forgery, as u
Tue c-sf OF the Boston teller vi the asuing loI
blancn. and TIE way the freedmen's money Wen
T. nut dithCult OF comprehension.
Inc report WAS signed by Douglass, Chairman
Bradford, stenger, kIdle, Hooker, and Il IN
sey, the last named colOred. MI. Frost agree,
q. ~ the main points, cut dissented from SOM
u the Argument.