The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-09
PACIFIC MAIL MATTERS.

The Omcers Charged with Unlawful Prac.
tices-Attempt to Restrain Illegal Spocula-
latiOn-A Nice Financial Question.
One or the customary sensational bubbles rppled
yesterday the surface Of Wall street affairs, and
the rumOr went forth that the Committee on Com
merce and Navigation, which was Instructed to ex-
anime into the AFFAIRS OF the Pacific Mail Company,
were about to visit New York and commence pro-
ceedings. The charge is relative 10 the conduct OF
the President and other officers regarding the man.
ner In which they speculate with the stock OF the
company. About fortnight ago Mr.. New
ton Layman peLitioned the Legislature to investi-
gate this charge. he claiming that he has 500
shares OF the stock, and, consequently, has q
right TO prevent its being jeOpardized by men who
are not wholly responsible. He asserts that the
President, Mr.. Stockwel, loans the funds Of the
company to brokers, to enable them to speculate
with the stock OF the company, and this to the ex
tent Of millions Of dollars. Yesterday morning Q
representative Of the HERALD called at the ONCE OF
the company, and although the officers were very
courteous, they maintained o strict reticence re-
garding giving tnfOrmatlon declaring that their
whole Iorce were at work preparing q statement to
be submitted to the committee. The Vice President
informed the reporter that he had received the fol-
lowing communication
STATE OF NEW YORK. IN AssEMnLY,l
Mr. bellows Vice President Pacidc Man Steamship Com
snIn Pgssuanse q resolution Of the Assembly adopted
On motion of Mr.. Morton,
Resolved That the Committee on Commerce and Navga.
ss
lawful practices ON the part Of the officers OF the Pacific Mail
BY ordsr Of the Assembly. G. s. UNDERWOOD, Clerk.
You hereby notified before committee at
the 81 Nicholas Hotel In the city of New York. on Friday
the 9Th day of February, 1879, at eleven O'Clock A. M,
there give such information touching the subject OF
qury be in possession. And you are further
directed bring with before said committee all docu
mepts custody required In the investigation
OF the said subject
BY order Of the committee.
Y. A. ALBERGER. Chairman.
bill has been passed recently IN the Legislature
fOrbldding the irresponsible OF the moneys OF
the company by The Ofilcers and Mr.. Newton Lyman
has Information that several OF these gentlemen are
placing MS rights III very precariOus condl.
ton by depressing and in1atlng the stock
for their private purposes. The feeling prevail
Ing on Wall street was that this Is test case ana
that serious charges can be brought against the
officers The Vice President stated that none Of the
employees had any objection give all induir-
ing stockholders every Information regarding their
transactions, thai the books were always open TO
inspection, and that Mr. Newton Layman's stock was
only transferred 10 him on the 25tn OF January and
that he never called TO make inquiries. Those con-
versant with Wall street affairs ana the transac-
tons OF large corporate bodies are OF opinion That
the law restraining officers from specializing IN the
moneys OF the companies win prove imperative, as
innate investments and speculation. The officers
say that II their accounts are properly adjusted at
the end OIL the year no lawful fault can be found
their transactions as long no risks are taken
when Will place the funds entrusted TO their charge
| III critical positions