National Republican. (Washington City (D.C.)) 1872-1888, 1876-04-24
CAPITAL TOPICS.
tContfnutd from First Pace,

Of the commissioners to wind up the affairs of the
bank, and they found that the bank was largely
made, ard the liabilities, as they appeared then,
were $2s1so3l.7s. They then found assets, as per
Of he assets could not be aseertained. because
many Of them were personal securities, and ap-
peared to be worthless. He feared that not more
lied. Messrs Purvis and Leopold, his associates,
were more hopeful than he was. When the COM
missioners took charge they found very small
amount of United States bonds belonging to the
institution. The loans secured by personal Sc
enIities amounted Including interest) to
A. n. Sperry, Inspector Of the Freedmen's
bank, testified to a very loose way Of doing the
business. Some of the branches could not be
difference between the ledgers and the general
account In the Washington branch Of $4,000
VIM. J. Wilson was cashier and Thos. s. Boston
Boston's bond Tor the sum OF q, 900. An the dis
crepancies that appeared upon the books OF the
Incompetent boOk-keepers. Witness related q
large number of instances of fraud perpettated at
different branches by the officers Of the bank.
The whole business was conducted everywhere
except Richmond in the most careless manner.
Officers stole the funds and admitted the fact,
but plead poverty. They were frequently IN the
taking security for the amounts. As TO the
Washington branch, there was no wrong
ralSer nso 90 IS criminal sosso or
the book-keeper there, had been smarter he
should say there was fraud. But Boston was too
duh for fraud; There were good number Of
transactions that were concealed, and among
them was that relating to the Seneca Stone Com
that loan was made to Hallet Kilbourn and
John o. Evans of 81, 900 at certain time with
certain collaterals attached, and secret agree
finance committee, and these gentlemen that in
case the note was not paid at maturity the note
and all the securities except the bonds Of the
Maryland Mining and Manufacturing Company,
should be surrendered to the makers Of the note,
and that the bonds in question chat is the Seneca
Stone Company's bondsl should be taken in full
Tor year. When 1t did mature the then actuary,
Col Eaton, demanded payment, and the parties
payment. There was good deal of wrangling
about II, and finally the note and other papers
were given up, and the Seneca Stone bonds re-
tanned. These bonds are not worth anything and
never were.
William Kilgour, Of Alexandria, testified that
he has as client colored man named Watkins,
whose money was drawn out Of the Freedmans
Bank on fraudulent checks, and that 1t was drawn
by I. s. Boston, the teller. He looked into the
tween q 600 and sl,lOo. Boston was the son-in-
law of Wilson, the cashier, and was afterwards
compelled to pay Watkins in installments.
loaned S33, 000tO the Young Mems Christian Asso-
citation joint stock company, The association
owns abont s15 900 worth Of tie stock out Of 800
exception above stated was held by different par.
tles. deed OF trust on the property was given
to secure the loan,
Ar, Sper-y was recalled, and was asked to state
m general way ali the causes which were most
prominent in bringing about the failure of the
bank, and he replied that if there had been
and carefulness in selecting Investments, the fall
ure would not have occurred. The first fatal de-
parture from sound policy was the erection of the
TO be around the principal office Of the company
an unwholesome SAVIOR of connection with what d
was popularity known as the District ring: At amy
man0Uemant " rst nj 10 ar;tf
cism by the politicians. The immediate causes of
failure were undoubtedly the panic of 1873 and
the bank with Jay Cooke & co. This led TO such
a reduction of the balances held by depOsitors
that, even If nothing further had transpired, the
J. W. Alvord testified to loan of over $4,000
70 the Howard University. The trustees of the i
roy, Bishop Talbot, Bishop Brown, Fred. Doug
lass, F. H. Smith and @. w. Balloch. That loan
was for the payment Of construction bills for pro-
Iessors houses, for the building erected for the
Normal school, and for bills which had accumu-
lated on the foundation work. 1t appeared that I
J. K p Dn Ta
cushing, and others Of equal prominence, were |
stock o.Sers in the Seneca Company.
Z. H. Purvis, a trustee Of the bank since March, !
s6s, testified that Mr.. Stickpey, who was the ae
suary, had authorized a man named Boyle "a seil
! large number Of bonds belonging to rne hank
his was atter Jay Cookies failure. The transac.
Stickney's removal. There was loan of sel 600 |
o Boyle, on which Stickney took security, and |
he bank has never realized d cent from the loan.
large number OF witnesses were examined to
how that loans were made to prominent individ-
ials in the District Of Columbia without requiring
proper security
joseph ]. Stewart testified that he was trus-
Zee, but resigned in 1877, because he thought the
of the institution unsound, and all
bis Efforts to correct It proved unavailing, He
had given an opinion against certain Investments,
and he saw that his views were not acceptable
md that the institution would not be governed by
them.
Mr.. Purvis had frequently protested against
he loose manner Of doing business, but HIS pro-
tests were unavailing.