The Jasper weekly courier., 1876-06-02
The FreedmeH's Bank Swindle.
Ito the Associate.I Pros. ]

WASHINGTON, ID. c., MAY 19.-The
House Committee investigating the affairs OF
the Freedmen'S Bank made their report to-
day, in which they say that the institution
degenerated into monstrou. swindle. and
was. almost from the start, merely scheme
Of seltishness under the guise OF phlan-
thropy. and to its confding victims an in
corporate body Of false pretenses. In adj
dition 10 speculating rings, the District OF
Columbia Government came in to hasten and
profit by the work of spoation. IL, treas
ury was wholly unequal TO the task Of sIs-
tanning magnificent expenditures Of the
Board OF Public Works. presided over by III /.
ID. Cooke and controlled bv A. X. shep-
herd. Some cNchequer must he found 10 adj
vance the deprecated bonds and worthless
Auditors certificates OF the District. or the
cOntrarts must fail. and the speculafiOnss Of
the pool, and ~ Shepherd and his friends,
In eut-of-the-way and unimprovcd town
lots. come to grief.
The actual proof OF improper conduct on
the part Of the officers aud agents OF the
Bank is shown IN Che testimony OF the Wash
ington gabal, consisting OF the President OF
the Bank, y. l.. Eaton; the Actuary, III. ID.
Cooke. Chairman Of the Finance Committee; !;
William ;. Huntington, the henchman of
Cooke. and Of the same COMMITTEES. o. q.
Howard, Honorary Trustee tan Office and
position unknown to the charter: Lewis Cle-
phane, Of the Finance Committee. and a
lew more enough 10 con-Iltltt quorum
nine--and majority of that, five, held high
carnivals over the freedmen's hard-earncd
and swcat-stained earnings. which in an
evil hour they had been caioled into trust
ing them with for fe-keeping and proiita-
ble Inv estment. sThe freedmen were swim
died out Of their money for the benefit OF
strangers, while the canting hyp0crites who
had deceived them under precious profess
sions OF regard for their race. and who have
undoubtedly, directly or indirectly. shared
in the plunder, 90 unwhipped of Justice
Proof OF actual fraud and dishonesty is not
wanting In the following Instances. y. w.
yandenberg was a pet OF the District Cow
ernment. as sort Of protegs md fvorite
contractor for the grand public Improve
ments, planned and put In execution by the
Board OF Public Works.
The report says that the securities on
which Nandenburg borrowed money from
the bank were not worth four cents 4 bushel
as salable securities or as evidence Of debt
The Actuary of the bank himself, then -.
J.. Eaton. was persuaded to accept a. gratu-
iiy from Nandenburg, half interest in a
SlOO,coO contract for sewcr-pipes. Eaton
put in no money Of his own. incurred no
risks or responsibility, and had no trouble
about u except 20 sign the receipts for his
share uf the profits: but he used the influ-
ence Of his position tn pass Nandenburg's
paper at the bank counter, and the money
thus obtained was used TO carry out the con-
tract in which he was interested as benc-
ficiary. This may not be steal, but Van
denburg still owes TO the bank. according TO
the exhibit made by the books OF that con-
cern, Sl44, l04, which, however, he dis
putes. on the ground that some $40. 600 or
so, 900 Of his securities have been disposed
Of and no credit given them, the rest being
hardly worth contest about.
Tire freedmen depositors have the conso-
ation that they have been flecccd by the ir-
regularity, 10 use a polite aud exculpatory
phrase employed by the present Commis-
sioners when compelled TO alludc 10 the
rascalties Of their predecessors In the man
agement and control ~ the Affairs Of the
bank, but the Commission say the vanden-
burg Eaton irrcgularity IL small i'm actual
criminality compared with the Seneca sand
stone swindle. This bubble was fancy