The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-07-10

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paralyze all belligerent action is possible
that it will finally settle the Eastern ques-
ton we are not sangune enough to believe
The Blacklist Chapter in the History of
the Republican Party.
Last February Representative MULLER Of
New York introduced. and Congress passed
II resolution ordering the three Commission
ers appointed by GRANT to iquidate the
affairs Of the bankrupt Frecdman's Bank to
render some account OF their Stewardship
The report reluctantly brought out In ODE
dience TO that resolution is now published
and IL IL certainly one Of the most remark
able documents ever given to the American
people.
In order to appreciate the edifying per-
formances of this commission, It may be
we'll to recapltulate very briefly the events
which preceded its appointment. II will be
remembered that the Freedman's Bank con-
| trived In few years to accumulate some
thing like six million dollars from the saw
| ings OF the colOred race. The success of this
phlanthropical institution was peculiarly
| gratifying to such Christian heroes as Gen.
o. o. HOWARD, and to those modern states
men Of whom Boss SHEPHERD is shining
representative. These gentlemen became
so eager to forward the interests
Of the depositors that they speedily cvaded
or thrust aside the over-stringent restraints
of legislation. Thus the charter Of the
bank debarred its officers from borrowing,
whereupon the Christian soldier HOWARD.
resigned his Office OF Vice-President and
three days afterward borrowed $4,000 on
| -. Ii.
part. was unwilling to take an active part
in the development Of tn, institution until
the original restrictions combining loans
to first mortgages aud national or
other approved bonds had been swept
away; and accordingly an act to that effect
was passed by Republican Congress.
Ihenccforward the process Of substituting
second mortgages and the scrip of the Young
Mems Christian Association, Paving compa-
mics. or other corporations equally substan-
tisl for the hard-earned dollars Of the freed
men went on with startling rapidity. Never
theless, the colored man and brother would
have probably continued to deposit, and al
low his Republican friends to manipulate his
| deposits for an indefinite period, but for the
light thrown on these operations by The
Sun and other independent newspapers. As
it was, the bankruptcy of the institution was
stoutly denied ard studiously concealed by
the eminent philanthropists who controlled
It until at least fifty per cent. OF its assets
had disappeared.
When the club of Republican statesmen
and Christian soldiers organized to invest
the savings Of the freedman had finished
their work, and the doors OF the bank were
closed, the most urgent business apparently
should have been to determine on the quick
est and cheapest method OF liquidation to the
end Of securing as much as possible for the
unlucky depositors A Republican Congress,
however, did Just the opposite of this. In
stead Of taking measures to obtain a re-
ceiver OF well-known integrity and bus
mess capacity, IT authorized the Presl-
dent to appoint board Of three Com
missioners, each to receive three thou
sand dollars year, payable out of the rem
nant OF funds belonging to the bank.
GRANTS selections in this instance were
characteristic. For the first place in the
commission he named CREswELL, who had
just resigned from the Cabinet to escape i'm
parchment. Next, with the sage declaration
that the board ought to include lone
niger GRANT appointed an aged black
man with benevolent face, named PURvIs.
who lived in Philadelphia, and knew a lit
tie about medicine, but OF law or bank
ing nothing. The third place was given
to a man named LEOPOLD, born In
Germany, but hailing from Wisconsin.
and rejoicing in the special favor of Senator
HOWE. These Commissioners were appoint
ed on the lth of July 1874, but no account
was rendered, and nothing regarding their
management could be asccrtaned until the
report OF the BEVERLY DOUGLASS Investi-
eating Committee was made to Congress in
May, 1876. 1t was then shown that J. A. ].
CREswELL was too much engaged in other
business to give any Of his valuable time
to the bank that, accordingly, he paid
LElPOLD $500 for attending to his
part of the business, aud pOcketcd
the remainder Of his salary. 1t appeared
that the colOred man PURvIs followed the
example OF CkEswELL in each particular,
ana That IN the hands Of LEIPOLD, thus III
vested with exclusive control the funds left
to the bank on the morrow of its COLLAPSE
were swiftly vanishing, under the guise If an
expense account, Ii was distinctly charged
by Mr.. DOUGLASS in his report that GRANTS |
Commissioners regarded what remained Of
sad wreck AS a legacy for the benefit OF
themselves and their retainers." OF course
the charges OF Democratic Congressman |
were Indignantly repealed, but now, after
the lapse of some two years, they are more |
than sustained by the statement wrung from |
the commission by the MULLER resolution.
Ihe fact Is now admitted by the Commits
sloners that in three years their so-called ex-
pense account has reached the enormous
sum OF $4,000, Of which more than $4,000