Daily globe., 1878-07-13


Altogether, she is fine craft. and does
credit to the energetic firm who have built
her.
THE FREEDMAN,s BANK.
One OF the Blacltest Chapters II, the History |
oTthe Rep"btican Party.
New York Sun.
Last February Representative Muller of !
New York introduced, and Congress passed,
appointed by Grant to liquidate the affairs of
the bankrupt Freedman's bank to render
some account of their stewardship. The re-
port reluctantly brought out in obedience to
that resolution is now published, and it is
certainly one of the most remarkable docu-
ments ever given to the American people.
In order to appreciate the edifying per-
formances of this commission, it may be
well to recapitulate very briefly the events
which preceded its appointment. 1t will be
remembered that the Freedman's bank CON
trived in few years to accumulate some
thing like $6,O0O,00O from the savings Of the
colored race. The success of this philan-
tropical institution was peculiarly crafty
ing to such Christian heroes as Gen. 0. 0.
Howard, and to those modern statesmen of
whom Boss Shepherd is a shining rep
resentatiye. These gentlemen became so
eager to forward the interests
of the depositors that they speedily evaded
or thrust aside the over-stringent restraints
of legislation. Thus the charter of the
bank debarred its otfic rs from borrowing,
whereupon the Christian soldier, Howard.
resigned his office of vice-president and
three days afterward borrowed $24,00O on
rotten securities. Boss Shepherd, for his
part, was unwilling to take an active part in
the development of the institution until the
| original restrictions contining loans to
first mortgages and national OF other
approved bonds had been swept away;
and accordingly an act to that effect
was passed by Republican Congress.
| Thenceforward the process of substituting
second mortgages and the scrip of the Young
Mems Christian association paving COM
panies, or other corporations equally sub
stantial, for the hard earned dollars of the
freedmen went on with startling rapidity
Nevertheless, the co!ored man and brother
would have probably continued to deposit,
and allow his Republican friends to manlp-
ulate his deposits for an indefinite period,
but for the light thrown on these operations
by the Sim and other independent news
papers. AS it was, the bankruptcy of the
institutions was stoutly denied and studi
ously concea' ed by the eminent philantro-
pists who controlled it until at least fifty
per cent. of it's assets had disappeared.
| When the club of Republican statesmen
and Christian soldiers organized to inves
the savings of the freedman had finished
their work. and the doors of the bank were
closed, the most urgent business apparentl,
should have been to determine on the quick
est method of liquidation to the end OF Sc
curing as much as possible for the unlucky
depostors. A Republican Congress, how.
ever, did just the opposite of this. Insteat
of taking measures to obtain receiver o
!, well-known integrity and business capacity
it authorized the President to appoint
board of three commissioners, each t.
, receive three thousand dollars
year, payable out of the remnan
of funds belonging to the bank
Grants selections in this instance were clal
acteristic. For the first place in the com
mission he named Creswell who had Jus
resigned from the Cabinet to escape in
parchment. Next, with the sage declaratio
that the board ought to include zone niger,
! Grant appointed an aged black man with
benevolent face, named Purvis, who lived i
Philadelphia and knew little about med
cine, but of law OF banking nothing. III
third place was given to a man named Leipolt
born in Germany, but hailing from Wisconsin
, and rejoicing in the special favor of Senate
! Howe These commissioners were appoin
ed on the 4th of July, 1874, but no accOur
was rendered, and nothing regarding the
management could be ascertained until I'll
report of the Beverly Douglass investigator
committee was made to Congress in Ma,
) 1876. 1t was then shown that ]. A.
Creswell was too much engaged in 9th,
t business to give any of the valuable time
e the bank; that, accordingly, he paid Leipo
8 $500 for attending to his part of the bus
ness, and pocketed the remainder of his sa
ary. It appeared that the colored man Pu
n Wis followed the example of Creswell in eat
q particular, and that in the hands of Leipolt
a thus invested with exclusive control, IL
q funds left to the bank on the morrow of i
4 collapse were swiftly vanishing, under Il
:. guise of an expense account. 1t was di
tinctly charged by Mr.. Douglass in h
9 report that Grants commissioners 'sr
n garding what remained of sa
S wreck as legacy for the benefit
e themselves and their retainers." Of cour
:. the charges of Democratic Congressm,
) we're Indignantly replied. but now, after Il
IS lapse of some two years, they are more th;
l. sustained by the statement wrung from Il
e commission by the Muller resolution.
II The fact is now admitted by the comm
e sioners that in three years their so-called e
., pense account has reached the enorno
; sum Of 900, of which more than Sc
r. COO went to their own salaries and those
e their clerks. The amount paid in fees
d favorite lawyers was upward of 1923, 900. t
larger share of this being secured by o
: Enoch Totten, a son-in-law of Senat
> Howe. No wonder the board has requir
II two years to pay dividend of ten per cen
1t making but thirty per cent. in all yet
1t turned to the deposi tors.
a The Freedman's bank was created bv t
7. Republican party. Its managers, from
n U. Howard down to Ex-senator Pomer.
|, were Republicans: SO are the commissions
n whose discharge of their trust we are NJ
II able to judge by their own report. III
d statement was delayed until Congressior
n action at the late session was improbab
e But when it again meets, let Congress asst
a its prerogative, and wipe out scandal tt
/ has become national, by snatching from t
$ hands of the present commissioners a
g their legal parasites. the scanty remnant ST
}, belonging to the victims of the most colo
n sal scheme of swindling hypocrisy that t
e world has known.
i Sam Cary, the great Greenbacker of Cine
,s natl, is quite enthusiastic over the prospects
i the Nationals. He says they will elect the n,
: President of the co untry. Ben Rutler "