Part 2

Criminal and vicious classes are not confined to race, color, or country. They are found everywhere. A long residence in the South enabled me to observe and study the habits of both black and white. A more illiterate, vicious, and depraved—a class more reckless of human life than the poor whites of the South it would be difficult to find in any country. I refer more particularly to what are known as crackers, wire-grass, and sand-hill men. Depraved and vicious to an extent almost beyond belief, they yet, in many things, hold the better classes subject to their dictation, and too frequently make them responsible for their crimes. My experience has been that for Christian virtues, for all that was kindly and tractable in human nature, the negro, even as a slave, was by far the poor white’s superior; in truth, I never saw the time, in the South, when I would not prefer trusting myself in his hands. Now that the negro is a man, a citizen, a voter, and a factor in the body politic of the South, it seems to me that it should not only be the desire but the ambition of the “ruling classes” (I use an old and much abused expression) to treat him fairly, as if he had always been a man entitled to the value of his own labor, to educate and elevate him—in a word, to make him part and parcel of their own welfare. They must make him something more than he was when he came out of the fiery furnace of slavery, as a means to their own protection. I would suggest, also, as I did twenty-seven years ago, that the “ruling classes” of the South would find it to their benefit to try the experiment of education on that large and very dangerous class I referred to above, called poor whites. I make this suggestion, fully aware that these poor whites—lawless, vicious, and degraded as they are—have heretofore fiercely resisted all attempts in that direction, firmly believing, as they do, that education is an evil, and civilization an infringement of their sovereign rights to roam over the sand hills, raid on the plantations of the rich, shoot negroes at sight, and burn down school houses.

The present Governor of Kentucky understood the situation I have been discussing perfectly when he said, in his message vetoing the act for the restoration of that relic of barbarism and cruelty, the whipping post: “Mankind is already too much degraded. He who can elevate and place mankind on an higher plane is a benefactor of his race.” I have had these words printed in letters of gold, framed, and hung on the walls of my humble sanctum.

NOT TO BE FORGOTTEN.

Out of all the charges of vice laid at the door of the negro race there rises the fact that almost on the heels of their emancipation the men and women composing it brought out their savings of a lifetime and deposited nearly six million of dollars in this Freedmen’s Bank and its thirty-odd agencies. The candid-minded will admit that this fact is something greatly to their credit, and must not be forgotten when their virtue or want of virtue is under discussion. Indeed, it speaks volumes for their thrift, for their love of saving, and providing for future wants. Most of this money was drawn from the middle southern States, the negroes of Georgia alone contributing nearly half a million, all of which, or nearly all of which, was brought here and placed at the mercy of a ring of Republican sharpers, and with the shocking result already known. It is also something to the credit of the race that, during and just after the war, very many of them, with remarkable shrewdness, purchased property and built comfortable little homes in what is now the most desirable part of the city, and where real estate is the most valuable. The imposing churches and school houses they have built in this neighborhood must also be accepted as proof of their thrift and progress. It is also something to their credit that, during the reign of Mr. Shepherd and his vile Ring, they successfully resisted the shameful attempts made to get possession of their property and drive them from their homes. Here let me say that the greatest danger to the future prospects of the race will come from those mischievous, ambitious, and restless men, more white than black, who set themselves up as leaders, and are always shedding tears over what they call the sorrows of “their race.” They have no claim to race distinction, being a bad cross between a bad white man and an unchaste negress. I cannot help thinking that their example is bad and their teachings worse.

The damaging effect, morally, physically, and otherwise, on the negro, of the robbery of the Freedmen’s Bank can hardly be over estimated. It was a very serious blow to his progress—to his future hopes. It made him lose faith in the integrity of the white man. The hope of gain no longer sweetens labor with him. He no longer saves his money to deposit in a saving bank, where he was so plausibly told it would bring him large interest, and ultimately a home. No; my experience has been that a large majority of the negroes to-day spend their money as they earn it, and indeed have lost that ambition to put something aside for a rainy day which characterized them a few years ago.

I will here relate an instance in proof of what is said in the above, and which will forceably illustrate a thousand other cases. During the campaign on the peninsula (1862) under McClellan, we had our headquarters (Franklin’s) at Toler’s Farm, Cumberland Landing, on the Pamunkey. A very intelligent and respectable colored man came to me and disclosed the secret that he had more than fourteen hundred dollars, in silver, buried in the cellar. His wife, a wonderfully active woman, and one child were owned by the Tolers. He, himself, was the slave of a Mr. Myers, of Richmond, of whom he bought his time, as was common among the more intelligent and thrifty slaves. He boasted that his master would trust him anywhere, and had always been very kind to him. The Tolers, on the other hand, were very hard on their slaves, and Henry’s greatest ambition was to get money enough to purchase the freedom of his wife and child, and the money he had saved from fishing and oystering on the York and Pamunkey rivers was for that purpose. For that he had toiled, and toiled, and toiled for sixteen years to get money enough to purchase the freedom of his wife and child. Even then he could have taken his money, his wife, and his child, and gone to Washington; but he refused. Indeed, he remained true to his master until the fall of Richmond. Then he came here, put what money he had left in the Freedmen’s Bank, and the painful story is told in these words: he lost it. The Washington sharpers got it. I met this man a few years ago; dissipation had overtaken him; he was a changed man; uttering curses on the heads of the men who had robbed him.

Let us retrace our steps again.

A REPUBLICAN CONGRESS

was again derelict of its duty. When the gang organized to rob the bank had finished its nefarious work, and its doors were closed in bankruptcy, one would have supposed that the most important question to be decided was the quickest and most economical method of winding up its affairs, to the end of saving as much as possible to the poor, deluded depositors. A Republican Congress did exactly the opposite of this.

Instead of authorizing the President to appoint a receiver, a man of well-known integrity and business capacity, it authorized him to appoint a board of three commissioners, each at a salary of three thousand dollars a year, to be paid out of the funds of the bank. This was virtually giving the commissioners a long lease of the funds.

Grant, in making these appointments, charmingly illustrated what is known as Grantism. Creswell, who resigned his position in Grant’s cabinet to escape impeachment, and with whose official and political record the country is already familiar, was his first choice. Money is Mr. Creswell’s fetish, no one has ever accused him of doing a charitable act, and as for political convictions, he has about as much use for them as a savage has for a time-piece. When a Senator, a true friend of the race, remonstrated against this appointment and predicted the result, Grant said Creswell was a lawyer, and as such could make himself useful in managing the legal affairs. We shall see what kind of legal service this lawyer has rendered.

Grant’s next choice was an aged black man, with a very benevolent face, named Purvis. Of law, banking, finance, poor Purvis knew just nothing. His knowledge of medicine even was slender, and he resided in Philadelphia. These qualifications, however, were satisfactory to Grant, who said the Board would not be complete without “one nigger,” whose presence was necessary to inspire confidence in the plundered depositors. He doubtless meant the poor devils, the washers and scrubbers, the very poor and the very ignorant, who had been plundered by his cronies.

Grant’s third choice was R. H. T. Leipold.[1] His qualifications were that he was a Hessian by birth, had lived in Wisconsin, was a favorite of Senator Howe of that State, and had been a clerk in that great American penal colony, the Treasury Department. I want the reader to make a note of this Senator Howe part of the business, as I shall have something to say on it hereafter, when a son-in-law of that Senator figures somewhat numerically.

To men of Purvis’ and Leipold’s type, this salary of three thousand dollars a year was a god-send of no mean dimensions. But placing them in charge of the bank’s money was a very dangerous power to intrust such men with. Grant, I am told, used to allude to these commissioners as representing Europe, Africa, and America. That it was a charming blending of colors must be confessed. The sombre clouding, however, hung around America, represented by the man Creswell.

Let us turn now and see how these commissioners have discharged this

MOST SACRED TRUST.

Let us survey the field carefully and thoroughly, and see how these commissioners have got away with the savings of the scrubbers and the washers, the widows and the orphans of the very poor and the very ignorant. And I will begin this by turning to the testimony and report of Hon. Beverly Douglass’ Investigating Committee, made to Congress May 9th, 1876. That investigation developed:

First: A chapter of fraud unparalleled in the history of crime.

Second: Shameful dereliction of duty on the part of the commissioners.

Third: That J. A. J. Creswell was too much engaged in other business, to give any of his valuable time to the bank. That he paid Leipold $500 for attending to his part of the business, and quietly pocketed $2,500.

Fourth: That the colored man Purvis, followed the example of Creswell—paid Leipold $500 to excuse him.

Fifth: That Leipold was the great Republican high priest, who ran the bank according to his own methods.

Sixth: That the remaining funds were fast disappearing into the pockets of the commissioners and their favorites.

Seventh: That the commissioners were appointed on the 4th of July, 1874, and that no report of their management has been made, as was required by law.

Eighth: That more than sixty thousand dollars had disappeared in a single year, for what was called “expense account.”

Ninth: That there was at least a suspicious connection between Leipold, Senator Howe’s man, and lawyer Totten, a son-in-law of the same Senator.

Tenth: That G. W. Stickney succeeded D. L. Eaton, as Actuary of the bank; that some of the very worst frauds on the bank were committed during his administration, and with his knowledge. Not only this, but that he was found to be individually indebted to the bank to the amount of $2,680.

Brother G. W. Stickney, sometimes called Colonel Stickney, is well known in Washington, alike for his praying propensities and sharp practices. He is, if I may be pardoned for using the phrase, an outwash of the war, a Christian statesman of the Schuyler Colfax type. He is one of those persons who could, at any time, get a certificate of good character from those illustrious friends of humanity, U. S. Grant and Boss Shepherd.

Let us turn to page 50 of Mr. Beverly Douglas’ report and see what Brother J. W. Alvord, at one time president of the Freedmen’s Bank, says of Brother G. W. Stickney:

By the Chairman (Douglas):

Q. I want you to tell the Committee, without any evasion or concealment, whether, during your administration as president, or your connection with the bank as trustee, there was, to your mind and your comprehension, a fair, faithful, and honest administration of its funds?

A. I can answer in the language of Saturday last. There was I would not say dishonest, but improper loaning to men who were not responsible; loaning upon insufficient security; loaning on illegal security, such as city scrip and personal chattels; and permitting employees at the branches to loan without the knowledge of the trustees. The Actuary [Stickney] gave them such permission as that. They quoted him as authority for such loans. I do not think that the trustees ever stole any money. [Credulous Alvord!] The matter of Vandenburgh is one of the marked instances that I would range under insufficient security.

Q. You seem to be very well acquainted with Vandenburgh, from your boyhood up. Do you know whether there was any business connection in the street paving business between Vandenburgh and Alexander R. Shepherd at the time these loans were being negotiated?

A. I do not know that there was any business connection.

Q. Tell us of any other connection that there was between them.

A. I know that they were acquaintances, and that Mr. Shepherd was at the head of affairs here, while Mr. Vandenburgh was a contractor.

Q. Contractor under him?

A. Contractor of him; he contracted to do his work in the city for pay....

By Mr. Bradford:

Q. Where is this Mr. Stickney, the actuary? Does he live in this city?

A. Yes, sir.

Q. What was his pecuniary condition when he entered the service of the Freedmen’s Bank?

A. He was a man without any appearance of any considerable amount of means—not very large amount of property. He is a wide-a-wake, active, business real estate broker.

Q. How much property has he got now?

A. I cannot tell.... I think he has an interest in a good many pieces of property; how large that interest is, or how well secured, I cannot say.

The above will serve to show what kind of a man this G. W. Stickney was. The simple truth is that, when he took charge of the bank’s affairs, about all the property he had was his pretensions to being a high church Republican, and his stock in trade in religion of an assorted kind.

Old man Alvord was an unwilling witness. He could have told the Committee much more than he did of the connection between Stickney and Shepherd, Vandenburgh and Shepherd, John O. Evans, Lewis Clephane, and Hallett Kilbourn. Vandenburgh is a free and easy, good natured, open-handed man, and not naturally dishonest. And yet he was, during the reign of Mr. Shepherd and his Ring, a sample sheep, of which Clephane, Evans, Kilbourn, and Shepherd constituted the flock. He was associated with them in the paving business, and the very large amounts of money he was permitted to draw from the bank from time to time, and while Stickney had almost absolute control of its funds—nearly $200,000—convinces me that there was not only collusion, but that Vandenburgh was used as an instrument by his more designing confederates. These “Vandenburgh loans,” as they are called, are regarded as bad as any made by the bank. That Vandenburgh never could have used so large an amount of money in his own business, the Committee were satisfied. This, too, must be said, that Mr. Beverly Douglas was very decidedly of the opinion that Vandenburgh was “used by the master spirits of the ring to pull their chestnuts out of the fire.”

Stickney was responsible for these bad loans. They were made with his consent, perhaps not criminally. I have, however, given enough proof to convince the candid reader that he never should have been employed as an officer of the bank again.

THE SADDEST CHAPTER OF ALL.

I come now to the saddest and most melancholy chapter of this history of fraud. I refer to the report recently wrung from the commissioners in response to Mr. Muller’s resolution, introduced in Congress February 25th, 1878. This report, (Mis. Doc. 43, House of Representatives, 45th Congress, 2d Session,) is a very remarkable document, and merits to be extensively read and carefully studied. It is a remarkable document, as well for the force in which it illustrates the blighting power of money, the want of heart, soul, and conscience, even the better class of mankind is afflicted with at the present day, and, worst of all, that there is very little difference between the men, who, in 1870, deliberately plotted to rob the bank, and the men, who, in 1878, and under the disguise of law, make themselves and their friends the beneficiaries of what there is left.

The following passage is quoted from this remarkable report, to which the names of the three commissioners are attached. It reads like a bit of exquisite satire:

“In conclusion, permit us to say that we have no knowledge of any improper use of the funds of the company to which reference is made in the preamble of the resolution of the House of Representatives, except sums required for the payment of petty expenditures and expenses incurred by agents and deducted from their collections.”

This is a very singular statement to make to Congress, and is false on its face. Can it be possible that these commissioners were so deaf to public sentiment that they did not hear the criticisms made on their conduct in managing the affairs of the bank for the last three years? Do they not know that the atmosphere of Washington has been foul with scandals in regard to the relations between one of the commissioners and a well-known Washington lawyer, who was enriching himself at the expense of the washers and scrubbers, the very poor and the very ignorant? Do they not know that these suspicious relations have been the talk of the Washington bar for at least two years? Why, gentlemen commissioners, this report of yours is, of itself, the best proof that there was just cause for these scandals, if such you choose to call them.

I have shown that Creswell and Purvis were mere figureheads, who pocketed their salaries with heartless regularity, while Leipold did all the business, and was really the Board of Commissioners. I have also shown this man Leipold’s relations to Senator Howe, and his son-in-law, lawyer Enoch Totten. We have now only to turn and see what an extensive field lawyer Enoch Totten found for his legal services, and how splendidly he improved it. Here are some of his charges:

January 20, 1875, Fees, &c., $22 00 March 1, 1875, Enoch Totten, Attorney 34 00 March 20, 1875, ” ” 13 00 April 7, 1875, ” ” 12 00 April 13, 1875, ” ” 11 00 May 10, 1875, ” ” 23 00 May 28, 1875, ” ” (fees) 500 00 June 25, 1875, ” ” (fees, &c.) 58 00 September 27, 1875, ” ” 29 00 October 6, 1875, ” ” 17 00 November 3, 1875, ” ” 22 00 ” ” ” (fees) 500 00 December 23, 1875, ” ” (fees) 1,000 00 ---------- $2,241 00 ========== March 11, 1876, Enoch Totten, Attorney $13 00 March 28, 1876, ” ” (fees) 1,500 00 April 21, 1876, ” ” (costs) 85 00 May 5, 1876, ” ” 69 00 May 16, 1876, ” ” 85 00 May 23, 1876, ” ” 85 00 June 10, 1876, ” ” (fees) 1,886 90 June 30, 1876, ” ” 22 00 July 20, 1876, ” ” (fees & costs) 49 00 Aug’st 15, 1876, Filing Bill in Equity 14 00 Aug’st 18, 1876, Attorney’s Fees 500 00 Nov’r 22, 1876, Attorney’s Fees 1,000 00 Dec’r 11, 1876, Attorney’s Costs, &c., 30 00 Dec’r 22, 1876, Attorney’s Fees 1,000 00 ---------- $6,338 90 ========== Jan’ry 10, 1877, Enoch Totten, (costs) $16 35 Feb’ry 9, 1877, ” 11 00 Feb’ry 23, 1877, ” (fees and costs) 68 43 April 5, 1877, ” (legal service) 500 00 April 19, 1877, ” (costs) 12 00 May 5, 1877, ” (fees) 500 00 May 17, 1877, ” (fees) 25 00 May 31, 1877, ” (fees) 150 00 June 30, 1877, ” (fees) 10 00 July 5, 1877, ” (attorney’s fees) 500 00 July 13, 1877, ” 125 00 July 19, 1877, ” (attorney’s fees) 60 00 Sept’r 1, 1877, ” ” ” 1,200 00 Sept’r 15, 1877, ” ” ” 1,409 53 Oct’br 18, 1877, ” Attorney 25 00 Nov’br 22, 1877, ” Attorney 30 00 Dec’br 13, 1877, ” (attorney’s fees) 250 00 ---------- $4,821 21 ==========

_Summary._

1875 $2,241 00 1876 6,338 90 1877 4,821 21 ---------- Total $13,401 11 ==========

The sad story of greed recorded in the above account of fees is so well told as to render comment by me unnecessary. And yet the above is by no means all lawyer Enoch Totten got of the money of the washers and the scrubbers, the very poor and the very ignorant. He can afford to ride in his coach; and I hope he can sleep at night with the self-satisfaction that he has been just and generous to the poor freedmen who had been so cruelly robbed, and had pocketed only what was right of their money.