Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-03-16
THE FREEDMEN's BANK.

honesty That Has Characterized It's Man-
agesnent.
Investigation of the affairs of the sus-
pended Freedhcn's bank having been con-
cluded last Saturday, the select committee of
Senators met to-day and agreed upon a re-
port, and also perfected bill to change the
method of liquidation of that concern. The
report will show that the Freedmen's bank
was established under favorable auspices.
Its business grew rapidly, and it soon be-
came prosperous institution. Its manage
ment fell into the hands of, and was con-
trolled by, unworthy, dishonest persons, by
whose acts and loose management, the
investments in nonproductive, valueless
stocks and loans upon worthless sscur-
tiles, the banks business diminished rapidly,
and failure wss the natural result. The re-
port will deal severely with certain individ-
uals, but owing to the death of some and the
impecuniosity or absence of others, it will
make no Recommendation with reference to
prosecution other than is found in the bill
agreed upon by the committee. By that bill
the secretary of the treasury is directed to
appoint the comptroller of the currency q
commissioner to wind up the affairs of the
bank, at salary of $1,000 in addition to
his present salary as comptroller of the cur
rency, and requiring him to give bond in
$4,000 and to take an oath to
faithfully perform his duties as COM
missioner. This dispsnses with the
sinecure commission of three
gentlemen who have for six years been draw
ing $1,000 each yearly, without rendering
ha ntp 10 tn hou ho
rights, prerogatives and privileges, and to
perform all the duties that were conferred
and enjoined by law upon the three commits
sioners. His appointment is not in any way
to be allo we'd to impede or delay any suit OF
suits instituted in any court by or against
the commissioners. He shall have the right
and authority, with the approval of the sec
rotary of the treasury, to sell any property
of the bank and buy in for the benefit of
the bank any of said property which may be
offered for sale to pay debts and
liabilities of the bank, if, in his judg.
ment, said property is being sacrificed by
said sale. He shall make an annual report
to Congress, and is authorized to make 9
dividend to depositors whenever he is pre-
pared 80 to do, paying to those depositors
only whose pass books have been properly
verified and balanced, unless satisfactory
proof is given of loss of such books. If there
shall be any considerable delay in making q
dividend to depositors, the commissions,
shall, under direction of the secretary
of the treasury, invest the funds or
hand in United States bonds unit
such time as he may be prepared to make 6
dividend. A sum not exceeding $25O,OO0 is
by the bill appropriated for use by the secre
tary of the treasury, in purchasing for tht
United States the ground and building o.
the bank opposite the treasury building, thil
amount of money to be placed on the treas
ury books to the credit of the bank for dis
tribution among its creditors. 1t is made
the duty of the solicitor of the treasury, under
direction of the comptroller, to investigate
the manner in which the bank company
has been managed by its trustees and otheri
having control thereof, and if, in the judg.
menr of the solicitor, the affairs of the bank
have been mismansged or managed fraudu'
lently and corruptly, then the solicitor, IN.
der direction of the commissioners, shall
cause such civil and criminal proceeding to
be instituted in the courts against those par.
ticipating in the mismanagement or fraudu
lent and corrupt management, as he shall
deem right and proper to attain the ends Of
Justice.