MISMANAGEMENT AND OTHER TROUBLES 77
and the First National Bank, both large borrowers
 from the Freedmen’s Bank, had representatives
 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 borrowed
 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 contract
 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bonds were withdrawn and $1,800 in less valuable
 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.