MISMANAGEMENT AND OTHER TROUBLES 73 
LOANS TO SPECULATORS 
The local District of Columbia spoilsmen 
found a mine in the bank. Vandenburg, a public 
works contractor, secured a loan of $30,000 
without any security except the verbal indorse- 
ment of A. R. Shepherd,® the District “Boss.” 
Vandenburg failed to pay, and Shepherd after 
delay made good the loan, but took occasion to 
remind Stickney, the actuary, that “if you do 
business in that kind of a loose way you are a 
damned fool.” 
The management seemed unable to refuse 
loans to the favored contractors and speculators 
of the District. Vandenburg loaded the bank 
with bills against the District which he was un- 
able to collect. In all he secured loans amounting 
to $180,000, of which about $150,000 was still 
due when the bank failed. Several promotion 
companies in which he was interested also se- 
cured large sums resulting in a final loss to the 
bank of about $50,000. As one of the officials 
said: “Vandenburg got what he wanted; couldn’t 
keep him from getting it.” 
JAY COOKE AND THE FIRST NATIONAL BANK 
The Freedmen’s Bank was utilized by other 
banks to carry questionable paper for them, to 
% Alexander Robey Shepherd (1835-1902) was a local District of 
Columbia politician, who was prominent in helping to get a measure 
through Congress in 1871 providing for the establishment of a territorial 
government for the District of Columbia. When H. D. Cooke, the first 
territorial governor resigned in 1873 Shepherd was appointed governor. 
Charges of corruption were brought gales him, and in 1874 Congress 
abolished the territorial government. The District was then placed under 
three commissioners. President Grant nominated Shepherd to be one of 
the commissioners but the Senate refused to confirm him.—Cyclopedia 
of American Biography. 
% Douglas Report, pp. 76, 77, 91; Bruce Report, p. 161.