New-York tribune., 1876-05-20
REPORT or THE FREEDMAN's BANK.

REPORT on THE EREEDMANS BANK.
THE INSTITUTION PToNoUN, I'd "A MoNsrEoUs
swISDLE" AND AN INCORPORATE BODY OF
rAIsE PRErENsEs" - CONNECTION or THE
sirPuERD RING Win THE B,Nk-PRooF FUR
SIsHgD or TnE WRONG DOING.
tGESER,L pRIss DisPATCul
WAsmNGroS, May 19.-Thc House Commit
tee invest eating the affairs Of the Fecdman's Bank,
made their report to-day in which they that that
Institution degcncratcd uto monstrous swinde, and
almost om the start merely scheme OF scltShness
under the guisc of philanthropy. ami to it, conhdng
victims On incorporate body OF false pretenses The
yashiugi1n cabal, consisting OF the President of the
ponl d. T. Eaton the Actuary, H. ID. Cooke, the Chair
man of the Finance Committee, William y. Huntington,
O. o. Howard Honorary Trustee (,n Office aud position
unknown to the chartcrl Lewis Cephane OF the Finance
Committee, and IA few more, enough TO constitute q
quorum of nine, and majority or that,
five, held high carnival over the freed
mems hard earned and sweat stained savings.
I is in proof hat the law requiring bonds and invest
mrnts To be made exclusively on Government securities
was violated and the provision Of the amended charter
allowing the acceptance OF real estate securities In
double the amount obtained from the bank mere
deusion and a cheat. Kilbourn and Iat the trustees
Of The real estate pool, were there, ana were
actually appointed appraisers for the bank, whereby
the unsecnly spectacle 10 presented OF All attempt
to serve two masiers-a thing dlscounenanced 10y the
laws deemed Incompatible with strict business integrity
and pronounced impossible In Scripture. They and
others Ike them repre.entng both and lender
were practically given the keys Of the vaults, Of whose
guardians themselves stockholders or partners In the
companies societies aud speculatlng rings outside
wnkcd at the hnly disguised pecuations and compla-
Gently pockced their share OF the punder though they
had not sinncd against the prohibition Of any officer
trustee. or agent borrowing the money Of the bank
Proof OF actual fraud and dishonesty In not wanting In
the following Instances B W. Vandcnbrg wasa pet OF
the District Government; sort Of protege andfal0rte
contractor for the grand public improvements planned
and put in execution by the Board OF Public Works
Ihe report says the securities ON which Nanhenburg
borrowed money from the bank were not worth four
GEMS a bu-he as salable securities evidence Of
debt The actuary OF the bank himself then
D. l.. Eaton, was persuaded 10 accept as O
gratuty from Vandonburg a half Interest III q
100000 contract for sewer pipes. Eaton put In no
money Of his incurred no risk or responsibility AMI
had trouble about IL except t. sign receipts for Ills
share Of the profits But lac used the Influence Of his po
sin To pass Vandenburgs paper at he bank counter
and the money thus obtained was used TO carry out the
con tract In which he Interested as beneficiary.
vandonburg still owes the bank Sl44,lGt 50, which,
$4,000 OF $4,000 Of his securities haye
been disposed Of and no credit given him.
But the Committee say that the Vanderburg Eaton ir
regularity" 10 small In actual crimnality compared with
the seneca Sandstone swinde This bubble was fancy
stock gamble invented by H. ID. Cooke, John L. kidweii
and II. II. Dodge by which $4,000 OF freedmens good
money drawn out on worthless securities Inc re-
mort was signed by Messrs. Douglass Chairman Brad
ford St. Engcr. Riddle Hooker, and Raney the last
named coored Mr. Frost agreed on all the main points
but dssented from some OF the argument.