73 THE FREEDMEN’S SAVINGS BANK 
methods of the authorities there may be men- 
tioned the loans made to Evan Lyons and to the 
Seneca Sandstone Company. Lyons, who owned 
60 acres of land in Washington County, Mary- 
land, 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 credi- 
tors 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 credi- 
tor 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 Manufac- 
turing 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,