Lo THE FREEDMEN’S SAVINGS BANK 
payable in six months, supported by good col- 
lateral 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 actu- 
ary. It recited the list of the securities (including 
$75,000 in second mortgage Seneca bonds) pur- 
porting 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 under- 
stood that the transaction was not to make Kil- 
bourn 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 securi- 
ties 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 ac- 
crued 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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