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 indorsement
 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 unable
 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 secured
 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.