The sun., 1878-07-21

The most hcartless and the most Disgrace
ful OF all the frauds perpetrated during Re-
publican rule was the plumber Of the Freed
mans Bank, which was organized under the
prctencc Of inducing the colorcd people To
be thrifty and saving Of their earnings but
with the deliberate design Of stealing the
hoard when it had been gathered from all
parts Of the country. The original charter
protected the depostors against all ordi-
nary dangers But as soon as confidence
was created, and the millions began to ac-
cumulate, the managers who affected the
largest philanthropy and the utmost devo-
tion to the welfare Of the black man, APP
piled to Congress for n modification of the
charter and this opened the door to the
swndling which ended in bankruptcy five
years ago.
The exhibit Of its affairs is shocking. The
total liabilities of the bank on the 1st of Jam
uary, 1873, were s2,9Gs,sli36. On the lst Of
November, 1870 dividend oftwenty cent.
was authorized. amounting TO Sj93 7G2s7, Of
which sum 500, ,392.6i remained uncaled for
at the last report. Death, Ignorance and
misfortune deprived many of these poor
victims Of a share in this dividend
The expenditures from Jan. l. 1875. to Jan.
], 1873, We're s2ol99ji9 principally for sala-
rics and counsel fees. So that II actually
cost more than thirty-cght per cent. Of the
dividend declared TO collect it, These are
the figures Of the Commissioners. and they
carry their own comment 1t will be asked,
What are the assets of the bank They
consist chiefly in bad debts, and some real
estatc: The Ring managers at Washington,
when they got the charter changed, were
not content with modest quarters. They
spurgcd after the example Of TWEED, who
was the model Of their operations. IN direct
violation Of the charter, they erected
Snowy banking house at Washington, with
front Of Seneca sandstone, of course, and
another on less prctentious scale at Jack
sonville, Fla. These two properties, and a
lot of shantics which the Commissioners
had to buy in at auction, for want Of real
bidders, constitute the real estate, which Is
cooly estimated at half million.
Washington leads the list in the way ~
Dad debts, though the Commissioners seem
to have cxeltcd their ingenuity to conceal
the truth hy a variety Of devices. In round
numbers this indebtedness aggregates about
six hundred and seventy thousand dollars,
regarded a- worthless in the main and
for which there is hardy the name Of Sc
ourity.
For more than three and a half years three
Commissioners have been drawing from this
fund $4,000 each per annum, with a rciinuo
Of clerks and messengers at their beck and
call Il favored attorney and auctiun""r, and
whole crowd OF parasites who are eating
up. day by day, the remaining substance Of
this bankrupt concern, while thousands OF
It's creditor, are almost on the verge of ac-
tunl starvation.
1t is Il burning scandal and shame that
this lla@rant spolation should pe toler-
atcd. when the whole affair can bc turned
over to the Irea-urV a. the Freedmen r
Bureau was fortunately transferred TO the
charge of Gcn. NlNCFNr The SCN has
more than onco advised this course as al
act of Justice to thc dciraudod dcpo-itors
and a. a dirty which common honesty re-
puiros to bc i-,lnrgcd. because a R'pUhlt
can Congress n.c iiicd the charter. and may
be said TO have invited this robbery by with
drawing every safeguard that would have
rendered il impacticahle. After the pas
sugc OF resolution la lee House last Feb
ruury, n dividend of ten per cent. was dc
clarri and when the a--',s are sold, sucl
n they are. the HccD ant Will be- closed.