Lo THE FREEDMEN’S SAVINGS BANK
payable in six months, supported by good collateral
 plus the second mortgage collateral of the
first loan.
So far the transaction seemed good business,
but at the same time a curious secret agreement
was made by the bank officials with Kilbourn
and Evans, securing the latter against loss. This
agreement was signed for the finance committee
by Huntington (of the Seneca Company, etc.),
Clephane, and Tuttle, and by Eaton, the actuary.
 It recited the list of the securities (including
$75,000 in second mortgage Seneca bonds) purporting
 to have been deposited by Kilbourn and
Evans, and stated that in case Kilbourn and
Evans did not pay the note at maturity, their
note and all their own collateral securities were
to be returned to them except the $75,000 in
second mortgage Seneca bonds. It was understood
 that the transaction was not to make Kilbourn
 and Evans responsible in any way; they
were simply allowing the use of their names as a
temporary accommodation. In other words the
bank was to pay $51,000 for $75,000 in unsalable
bonds.
Two years later, in 1873, the note and securities
 were surrendered according to agreement,
and only the $75,000 in second mortgage bonds
was left to secure the bank against loss. The
actuary early in 1874 closed the Kilbourn and
Evans account and again charged the Seneca
Company with the $51,000 and with $7,500 accrued
 interest. The $20,000 first mortgage bonds
held from the Seneca Company had disappeared
in 1872 in a transaction in which Kidwell, then

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