The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1876-02-17
SWINDLING THE .
NEGROES!
How THE FREEDMAN'S BANK
WAS RUM
THEPRESLDENT Of THE CONCERN
EXAMINED WHO MADE ALL
THE BAD LOAMS-A VERY
POOR FIG UREHEAD.
A STORY OF FRA I'D AND CoRRUPTI6N
Special Dispatch to the Baltimore Gazette.

Special Dlspatch 70 the Baltimore Gazette.
WASHINGTON, Feb. 81. W. Alvord,
who was President of the Freedman's
Saving and Trust Company during the
last three years of its existence, was ex-
amined by the special committee last
Saturday. He claimed that he was a
mere fgurehead in the concern, and
therefore was not responsible for the
many wrongs which he admitted had
been perpetrated on the unfortunate ne
groes who had entrusted their earnings
to the safe keeping of the bank. He,
like all the other witnesses who have
been examined, sought to throw the
responsibility on the finance committee,
and he produced a resolution passed by
that body which deprived the president
of voicein its deliberations. He might
attend their meetings if he could get
them together, or find out when and
where they were to be held; but he had
no vote. He made several efforts, he
said, at various times to have regular
meetings of the finance committee, but
without success So far as he knew the
meetings were generally held on the
street and the Cookies practically con.
trolled the committee. 1t was this
finance committee that made all the bad
loans after the charter of the company
was amended so as to allow it to loan
money on real estate. Henry D. Cooke
was chairman of the finance committee
and practically ran it. The charter re-
quired the security, if in real estate, to
be double the amount advanced upon it,
but no attention whatever was paid to
this provision. A great deal of money
was loaned to contractors, who hypothe-
Gated District securities at their face
value when they we're selling at 80 and
40 cents below par on the street. Among
the loans reported to Congress by the
Commissioners was one of $33, 900 to the
Young Mems Christian Association. The
loan book of the bank shows that orig
inally this loan was made to Henry D.
Cooke and 0. 0. Howard, and no salts
factory explanation of the manner in
which it was transferred to the Young
Mems Christian Association, with the
worthless stock of that concern for Sc
curity, has been given. A poor darkey
who had deposited $2,4OO with the bank
and lost 81 $1,000 of it also appeared be-,
fore the committee to tell the story of
his wrongs. He had by patient toll and
careful economy saved from his earnings
$5,4OO. which he deposited with the
Freedman's bank, an institution which
he thought was created for the Colored
mans protection. From time to time he
drew out sums, till his bank book showed
that he had withdrawn about $500, A
short time before the concern went into
bankruptcy he called to check out the
balance; he was amazed to find that
there were only forty cents to his credit,
Subsequent inquiries, with legal gen.
tleman to aid him, developed the start
ling fact that Boston, a clerk in the bank
had drawn 81 $1,000 on checks to which
he had signed the depositor's name.
This was nothing more or less than for
gerry, and yet it seems that the poor me-
gro has been unable to get justice done
him in the punishment of Boston, or to
recover his money.