The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-09-05
THE NICARAGUA TRANSIT COMPANY.

Charge of Extensive Frauds upon the Nicara
qua Transit Company by an Ex-Mayor 0
San FrAncascO-Orsler OF Arrest, and nai
Fixed at $l5O,OOO.
SUPERIOR CoURT-sPECIAL TERM.
Before Hon Judge Hoffman.
SEPT 4-7he Accessory Transit Company u.s. Cornelius
Garrison -lhe defendant in this Is Mayor of Sal
Ffancsco, and employed by the Transit Company
agent Of their line Of steamships between San Francisco
and San Juan Del Sur Nicaragua In the year 1855
continued that office up to March, 1885, when Genera
Walker at his psgation, az is alleged commenced his
' crusade against the company.
During period OF Garrsons agency he received for
account Of the company upwards of three million and
half of dollars his compensation was LIBERAL being
600 per annum. This action Is 10 recover the
sum oil $oO0,0O0 for alleged delalcatons Of
varied ard peculiar descriptions appearing in the
plant The principal Of alleged fraud as far as they
have been yet developed consist OF fabricated vouchers
large sums and Of false charges prices paid for
coal and other supplies. II Is alleged that the defendant
by his system OF fraudulent practices has embezzed up
wards OF half million OF dollars.
Appears, also, that he left San Francisco since the
commence OF the late excitement in that CITY, and
came 10 New York.
The Accessory Transit Company, plaintiffs in this
tion, comphn against Cornelius X. Garrison, defendant
oeren, and acge that these plaintiffs are and were at
tho several dates hereinafter referred TO, corporation
created by the republic Of Nicaragua in Central America,
business OF rtng passengers and freight between
the cities Of New York and San Francisco California AM
between the city of New Orleans, louisiana and San
Francisco aforesaid, by way OF the Isthmus Ncara
qua
That such transportation was accomplished by means
Iof steamships belonging TO these plaintiffs and plying
|oeween the port OF San Francisco aforesaid and
Ju-n del Sur the Isthmus Of Nicaragua steam
|shps belonging to these plaintiffs plying between the
tiles OF New York and New Orleans and the port of San
Juan del Nur,e via said Isthmus of Nicaragua and by
means OF other conveyances by land and water across
wi he
|of steamships.
That for The proper conduct Of said business agencies
were established by these plaintiffs at the city of San
Frapcisco Tor the manage of the steamships plying
san Francisco and San Juan del Sur AMI at the
|cty Of New York for the management Of the steam
'ehips Of The Plaintiffs plying the Atlantic Ocean.
That The pripcipe place Of business Of these plaintiffs
president directors said company resided and their
meetings were held and that the accounts of the various
agents OF said company were rendered TO the said
|pany at ,her tfiice in the city Of New York.
That the duties OF the agent Of said company at San
Francisco consisted Of selling tickets for passages coec
ping The passaSe money ana freight purchasing coal
provisions and other supplies for the OF said Pacific
|seap slips, paying the disbursements and expenses
hereo TAX the general and management OF said
ships rendering accounts OF his transac
|tons 10 the said company at the city OF New York aud
permitting TO diem at that place the moneys from time to
|time in his hands as such agent.
Tha, Il 2ith day Of january 1853 by resolution
ofthe Board OF Directors Of the sud company, the Vice
president thereof authorized to enter into agree
ment on behalf of said company with the defendant for
|his employ as agent Of said Company at San Fran
'cieco
That the ist day February 1853 the said compa-
ny (actrg through their said Vice Pre5iden) entered
into al agreement in writing with the defendant for his
empoymen as agent Of the said company at San Fran
cisco, which agreement is subscribed By the defendant
nd the Vice President of the plaintiffs and is in the words
Ind nRurts following, TO wit
OFFICE or rHE ACCESSORY TRAysrr coxp,sY
q A;canAGgA. NEW Yoak, lsi February, 1858
my and osre that are 70 proceed to San Francisco
% ss charge as ana ~ % the ma
adng between sen Francisco and san Juan del sur an
Pew Orcsn ond san Francisco across the transit route OF
The ser, you sueh customary
such cement IN receiving and collecting passage
sns aaa espense but you are aiso % provide and p1S
o. a s s % nG he Steamers sea
hagc The COS, and expense thereof to be reimbursed by
As eomper these services you to receive
as ursemenis wi'h his oyso that 4 the above
es 81 oa er a % return such es
|cess, any, 10 the company but i on charging two and
|e Yield 10 YOU shon be more ,han sixty thousand aos
Ss Sa S e S a cent q" round
n i nrb.y mdessood and agreed that you are not to
sgert any other the Pacific excepting those
6ssnars = 's % ay line M. % rstpicon Il not 10
app any business which house at paaama may trans
THIS eon se by mutual agreement shall exist force for
& K Glrruos, Esa.
Il above propositions and win sbiae b y terms
Tha, a.r the making Of said agreement the defendant
lett the city Of Nes York Tor san Francisco where ne
arrived ptor the first day OF April 1888, on which day
be entered the performance OF bis duties as agent of
the pans at san Francisco, under and in pursuance Of
said agreement
Thai the defendant continued TO the oise Of
agent OF these rnIntis At san Francisco, under said
serecm uniil the month Of February, lsso.
And pauuna furthur acge that In the month OF
February ls55 they entered into further agreement IN
writing, with the defendant whereby the term OF MS
agency or the said company at San lrnncsco was con-
tnued NJ to the day Of March, 1856; that the last
mentioned agreement subscrbed by .he.e plaintiffs,
through their Vice President and by the sad defendant
ana Is in the words and figures following to wit
OTytcy or IHE TRAsstr coasPASY--HEsORAS-
o. seErEarsr a.rwEES rrs .cassscsr s m ~ f4Sss ,
Ray yyrnrAHy, 1855.
II hereby mutually agreed hi, Mr.. Garrison to con.
the OF the company a ssn francesca up y the
Ss, day :. nsrsn S n be sSs smpoye IN ihe
company's from San Francisco TO san Juaa del sur
ssa ss Ss 10 sd k sss bronrS
nj The end Of the year terminating Sis March ls the
All we're owned BY The company excepting on only snea
Nevada while running in the hne as at present
the sesnefs company NAV md FOR ihe nieres,
70 shp 10 Fan Francesca or san Jnan 4. -. . ...,.
sion o b. receipts c ne, az asd ~ per cent
p ~ III nnsnv anS excsss nj chsrred
10 10 sss ssS'y ei Ssy"SS s a. per-
r. ( . Ispss bsyond a per cent ali Soaad Ths
Of ccmmssou nor s any to De charged for drawing bs
In tho contract of Isl February 1853 are 70
pe''"'' ~" Il X. GARRISON.
TiiOS. LORD,
yice Presidents Accessory Transit Company.
Nyw yonK 26h February, lsH5
rta,a pursuance Of The last mentioned agreement the
said deetdsn continued 70 act as the agent Of these
nlantlas a, Francisco, until the discovery Of the
frauds hereinafter FORTH after which discovery bis
authority a. agent Of these plaintiffs IVES revoked
And these plaintiffs further allege that from time 70
time durog the period OF his agency for them, the said
defcndapt has rendered accounts t. these plaintiffs
st the city oNew York. purporug 70 be the accounts Of
his Transactions agent OF these plaintiffs at m fran
Cisco by which accounts rendered II appears thas he
had up 70 the sh day Of April 1853, received Tor ac.
count " these plaintiffs, and OF hcr moneys, since Ga
fret OF February, 1853, the passage money freight an
other meneys o these plaintiffs collected by him as the
aseu, Al san Tr lncisco aforesaid the OF three mil
lions three hundred thousand i've hundred and eighteen
dollars and cents tla he had Also up TO The dat
last mentioned received for proceeds OF sale OF coal
these papss by the defendant al san Francisco tn
further sum Of twenty four thousand eight hun red and
thirty one dollars and sixty seven cents and that he ha
also during the same period, drawn drans upon thes
plantas 10 the OF one hundred aud forty seven
thousand sh hundred and seventy one dollars aud airy
cents which drafts have been paid by these plaintiffs