The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-20
GENERAL WASHINGTON DISPATCHES.

WASHINGTON. Nay 10, 1s7d
THE YRERDMAN's BANK Observation-Disclosures
ING RxvIRw By THE COMMITTEE OF THE
RAscALITIKs AND RoBBERIEs OF THE BANK
orrIcIALs--rHE PSEUDO FRIENDS OF THE
coLoRED MAN SHOWN IN rHuR TRUE
coLoRs.
The House committee investigating the affairs OF
the Frccdmans Bank made their report to-day, in
which they say that institution degenerated into a
monstrous swndie and was almost from the start,
merely a scheme OF sclnshncss under tho guise OF
philanthropy, and, to It's eonfding victims, incor-
porato body OF false pretenoeA In addition to the
speculative rings tho District OF Columbia govern
mcnt camo In 10 hasten and profit by the work Of
spolation- Its treasury was wholly unequal to the
task OF sustaining tho magnificent expenditures Of the
Board Of Public Works, presided over by H. D.
Cooke and controlled by A. R. shepherd Some ex-
chcquer DO found TO advance upon the deprecated
bonds and worthless auditors certificates OF tho Dis
the contracts must TAIL and tho spccuations OF
the pool and Shepherd and his friends Of tho
way and unimprovcd town lots como 10 grief This
mass OF putrldty, tho District government, alb
horrcd OF all men, and abandoned and rspudIacd
by the political authors OF Its being represented
in the bank by less than nvc Of the high officers
namely, II. d. Cook. George W. Bullock,
William s. Huntington, D. L. Eaton and e. d. Rich
ards all Of whom werc in way othcr, concerned
in spccuations less dependent for successful
sustaining the contractors under tho Board OF
Public Works aud Tree Of tho funds OF the Freed
mans Bank. They we're nigh In power, too, with tho
dominant Influences Congress- the fact that tho
Legislation they asked sanctioned and obtained
fully demonstrates Thus Il was that without consult
Ing wishes regarding tho interests OF those most
commemorative dcpositors-tho vaults OF the bank
literally thrown open to INSCRIPTIONS greed aud
rapacty; the wolves literally became the pastors OF
tho flock. and without conjunction or rcmorso, de-
vourcd the young,ngs committed 10 their caro-
Tho actual proof OF improper conduct the part Of
the officers and agents OF the bank Is shown IN the
testimony. Tho Washington cabaI, consisting Of the
president tho bank, d. L. Eaton; the cctuary, H. d.
Cooke tho chairman OF the Finance Committee, Will
lam $ Huntington; tho henchman OF Cooke and OF tho
same committee, o. q. Howard. honorary trustee ian
Office and position unknown TO the charter; Lewis
Clcphane OF the Finance Committed. and lew more,
enough 10 constitute quorum Of nine, and majority
OF that I've, held high carnival over the irecdmens
hard-carned and sweat-stainod earnings. which
evil hour they had been cajosd into trusting them with
for keeping and profitable investment proof
that the law requiring bonds and Investments 10 be
made excusvoIy on government securities was
violated and the provision Of the amended charter al
lowing the acceptance Of real estate securities In
double The amount obtained from the bank was more
dcIuson and cheat II opened tho door TO the in
Vulnerable rascalIties which quickly followed its
adoption by which the freedmen swndlcd out OF
their money for tho benefit Of strangers, while tho
canting hypocres who had deceived them under
specious professions Of regard for their and who
have undoubtedly directly indirectly, shared in the
plumber 20 unwhipped OF justice. Hardly had passed
and been approved before the ofhcc Of the bank
boscgcd by real estate agents and brokers, to
serve their ccnts by getting the largest accommoda
upon the very smallest possible security having
the scmbIance OF conformity with law. Messrs Kill
bourn rta tho rustees Of tho real estate pool were
there and werc actually appointed appraisers for tho
bank whereby tho unseoInly spectacle 10 presented Of