Evening star. [volume] (Washington, D.C.) 1854-1972, 1876-05-19
THE FREEDNEN's SAVINGS BANK.
rco.,;,v.5 fro,. First Panel

lNeSs'NN -
personal misconduct IN the MANAGEMENT
tseoree w Stickney, assistant actuary, and
after Eaton, actuary Of the bank, Is shown
70 be not only Priyy 70 the crooked transac-
e sesu 11
ofvhich fraudulent conversion Of the funds
10 his own private use Ia one, and for which
He m %ss oose
upon The funds and assets of the bank with
cut even being bonded, though perhaps that
OF for that, seeing that in nearly all cases
where the trustees had taken bonds of their
onieers and agents they proved either to De
INFORMAL, subject TO some technical objection
or otherwise worthless when the time came,
as IL did come in several instances, to put
them In suit on account of the delinquencies
Of their makers. IN the case of the A. Z.
Bradley Transaction, too, he aud the prssi-
dent, j. W. Alv0rd, were parties TO al at
tempted transfer Of property held 6y the he
and some few hundreds OF accrued interest,
whereby the bank was treated to lot OF
Sy a TsarP
whilst the vender, COR rather his principal,
for he was merely agenO a. r. Shepherd,
of an annual income of $500 from the
ONCE department. What Is still m 1re
tween Bradley and the department ten days
before he obtained a transfer OF the property
from the aforementioned officers OF the bank,
Mt, delectstion and behalf of Shepherd VINO
nevertheless Is not seen in the transaction.
Not until the processes Of court Of justice
Were resorted 10 by the or ginal owner, one
Mrs. Louisa McGhan, TO set aside the whole
proceeding for fraud. and permission given
banE. did the fact act herein detained come To To
the surface and 10 the light of day. For such
an inequitable, unjust. and 70 the bank in
furious disposition OF Its assets IL Is hard to
believe there was no consideration given
but allowing Alvord and Stickney the full
benefit OF the presumption or law In favor
worthy the high trust they held, and is
striking example of the actings and doings
whereby the credit OF the bank was destroyed
and its deposttors iplundered and ruined.
In the Juan Boyle business too, the same
Mr.. Stickney and Mr.. Leopold. one of the
present commissioners, acted part the
reasons for which are best understood by
themselves, but one resulting In a total
loss both to the bank and its debtor
BoyieJ though the evidences establishes
OF sd, 900 on his liabilities, (Leipold
TO take the property consisting OF certain
houses on NJ street, In the city of Washing
toni, and that subsequent sales even under
the prevailing depression and shrinkage In
values proved that they were worth under
such unfavorable conditions nearly the whole
amount for which they were encumberei.
Very soon after this negotiation failed, the
property was sold under deed of trust
holding from Boyle for the benefit Of the
bank, and he, Stickney, bought it in for
himself at the price OF s1i 900, there being no
one present to protect the bank, and little or
no competition among the bidders. (See
Boyle's testimony given in the presence of
stiekney and Leopold, and not contradicte1
In any material point of fact as above reci-
fed.) There were also a great many small
speculations By which the bank was drained
as can yet be ascertained amounts to the
sum OF -. This sum is in part represented
by checks and drafts without collateral of
any kiDd-in part by nothing but the empty
Golfers OF the bank. and neither more
less than steal perpetrated on the bank by
the officers or others through their connf-
OF Boston, teller of the Washington brarcH,
and the way The fIeedmen's money vents uDt
difficult OF comprehension. And now taking
a retrospective glance over the events of the
last ten years, In which this Frecdm ans
bank looms up conspicuOusly, we are led to
believe that no race, or kindred among ali
sounded the depths OF the philosophy ex-
pressed in the prayer, Save me from my
slavery at the south,"~a people orer whom M
more crocodile tears have been shed, on
whom more imposition practiced and for
fessed friends than any other known to his
tory-a people almost litteraIy stabbed
under the fifth rio with hug and
day, my brother?' In regard To this
bank the grossest deception was prac-
used upon them. Many were told 1t was
and safety guaranteed by the United States.
Missionaries, of whom the chief was Alyortf
PI ;1ce anca ine sont d mixing religion,
how TO toll and to save and then trust their
hard earned savings TO Alvord and his as
sociates 10 invest for them, not until, how
ever, they had levied toll for taeir services
In bestowing such inestimable benefits, and
for their disinterested labors and sacrifices.
Full OF gratitude 70 the government for
their emancipation, the negroes were easily
approached by, and gave unheeding cred
enee 70, any adventurer who declared him
and
10 aid bis moral Intellectual and So
cial elevation, provided he belonged TO the
party Of the administration. He believed
and was deceivedy-trust and was be-
frayed. Taught to his ruin and that OF the
whites among whom he lives and moves and
self there mnsf he mmfna, srnst s ana nlm-
tence before prosperity can be restored to
his section, 10 hate and distrust "the old
friends for his credulity, (see Sanders How
ellis statement about conversation with
Ieipold,) and told that those who dragged
celed every obligation to deal with him 90
principles OF common honesty. Upon no one
OF the originators and trustees Of the bank
did so great responsibility rest as upon j.
w: Alvord; but yet be permitted all the MIS-
doings described in this report 20 go from
year 70 year without any vigorous protest
giving warning 70 those who had so trusted
the concern through his persuasion he
it-tnIaaeing upon its beneftsDSstvRine ass
surance OF It's stability, and soliciting in
crease OF depOsitors and deposits. When the
ruin of the Institution was already past rem
edy, an amendment to the charter was ob-
tanned, in 1874, with provisions limiting the
amount 10 be loaned 10 any one person, and
making any emoezzlement or misuse of the
funds oy officers or agents a criminal Of
fence. This should have been done at
The beginning. Now, IL was like lock-
Ing the stable door after the horse
was stolen-it neither saved the prop
erty or caught the thief. 1t was a thin veil
TO The plunge into actual bankruptcy. aud
tie handing the defunct remains OF the once
yaunted "Freedmen's Savings and Trust
Company" 10 the undertakers-theC Commits
sioners 10 close up It's afairs--which speedily
followed the enactment Having incident
ally pointed TO the parties chiefly RESPONSE
bic for the final catastrophe, whilst describ-
ing the causes which led to IL, your commit
tee have as far as practicable and for the
present discharged the duty assigned to
them, and respectfully submit the result TO
the consideration Of the House without far.
Their recommendation than that already en-
bodied In the pending bill To amend the
legislation Of 1874 In regard to the Commits