73 THE FREEDMEN’S SAVINGS BANK
methods of the authorities there may be mentioned
 the loans made to Evan Lyons and to the
Seneca Sandstone Company. Lyons, who owned
60 acres of land in Washington County, Maryland,
 repeatedly applied for small loans. Four
times he was refused by the finance committee,
because it was believed that his title to the land
was not clear. Finally he secured a loan of
$34,000—more than the property was worth.
The facts that came out upon investigation were
as follows: Lyons’ land was already covered with
mortgages which he could not raise. As his creditors
 wanted the money, it was agreed that they
should give up their first mortgage claims on the
property, take second mortgages, and allow
Lyons to secure a large loan from the Freedmen’s
Bank under a first mortgage. This was done; the
creditors and Lyons divided the proceeds and
left the bank with the land, on which it lost
$25,000.% There is evidence to show that other
creditors used this method to get money back
from bad loans. When the debtor and the creditor
 got together the bank was helpless, especially
when its appraiser happened to be interested in
the transaction.
The Seneca Sandstone transaction was never
fully cleared up, but the principal facts that were
ascertained upon investigation were as follows:
The Maryland Freestone Mining and Manufacturing
 Company, commonly called the Seneca
Sandstone Company, was a promising enterprise,
incorporated in 1867 with such men as General
Grant, Secretary Seward, and Caleb Cushing as
3 Bruce Report, report of Committee, and pp. 124, 154,