MISMANAGEMENT AND OTHER TROUBLES 77 
and the First National Bank, both large bor- 
rowers from the Freedmen’s Bank, had repre- 
sentatives on the finance committee of the latter 
institution. H. D. Cooke, the First National 
Bank representative, when later called before 
investigating committees, professed profound 
ignorance of all the questionable transactions.* 
Balloch, a trustee and member of the finance 
committee, made a bad private loan in 1870, 
and in 1872 transferred his claim to the bank.® 
Huntington of the First National Bank bor- 
rowed 3,000 for one day and never repaid it.® 
Eaton, the actuary, was given by Vandenburg 
one-half interest in a $100,000 sewer-pipe con- 
tract to reward him for his kindness in securing 
loans for said Vandenburg.** Balloch borrowed 
$2,000 in 1872, giving as collateral $2,000 in 
United States five per cent bonds. Later these 
bonds were withdrawn and $1,800 in less valu- 
able railroad securities were substituted.” There 
was a loss of $32,000 caused by frequent loans 
to R. I. Fleming who, it was well known, was 
practically bankrupt. As security he offered bills 
against the District of Columbia, Y. M. C. A. 
bonds, and other doubtful paper. 
THE SENECA SANDSTONE COMPANY 
As examples to show the character of loans 
made after 1870 and to illustrate the business 
# Douglas Report, pp. &, 9, 76, 77, 91, 93; Bruce Report, pp. 51, 
110, 111; Savannah News, Dec. 9, 1871. 
# Bruce Report, p. 176. 
3 Douglas Report, p. 176. 
# Douglas Report, p. 12. 
3 Bruce Report, p. 153.