The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-03-19
FIGHTING TEE PACIFIC MAIL.
Luther c. Challiss' Injunction Hearing Before
the Refsree-A "Pool' by the Directory
or a Stock obbing Effort Of Chal-
lisa Great Legal Battle

some Gays ago MI. L1tner =. CnallSS, q wealthy
capitalist and railroad Oncer of the West applied
to Judge Gilbert for an injunction against the Pa
clfc Mail Steamship Company to restrain them, and
supported 1t by an affidavit. The case was referred
to John S. Lawrence, referee take testimony and
report upon the facts The defence, with o view Of
preventing the injunction being made permanent,
introduced testimony OF one witness tOimpeach Mr..
Chaliiss veracty and character, when the plaintiff
produced large number or witnesses TO sustain
his reputation at the nearing before Referee Law.
renee on saturday last.
The further hearing took place before the referee
yesterday afternoon, eX-Judge Fullerton ana Gen
eral Craig appearing for plaintiff, and Messrs ira
Shaer, Morris Wilson and Billings for the defend
| ants.
| Alden B. Stockwell, President Of the Pacific Mail
Steamship Company, was recalled, and said he
wanted 10 make correction. lie had stated tnaG
loans; the loans on the 9Th OF March were all call
loans, except the mortgages the morning after the
Injunction was dissolved, IN view OF the PROBABILITY
OF another. 1t was thought advisable 10 make time
loans instead OF call loans; did this fearing IL
might cause depreciation OF the stock OF the com.
pany; We 40 not do business in view OF &c pdrte in.
functions; do not know what pool Is, and Will
not go into my private affairs unless 1t ls so ruled.
Judge Fullerton said he proposed TO show what
pool was and then snow that indlvduals formed q
pool and then used the stock OF the company
Mr.: Shaler declared that pool had nothing to
should be shown IN evidence. witness resumed.
In answer TO the question about pool-"I think
men TO guy stocks; 1t may be to sell stocks for
profit as well as 90 Duy.u
q. Do you know OF any such combination since
November 10, 1871, and prior TO the 10Th oil March,
1872, TO purchase The stock OF the Pacific Mail Steam
ship CompanyI A. refuse to ans Wer
Mr.. Fuilerton-I wish to show that witness was
Interested In that pool and furnished stock OF Inc
steamship company Tor that purpose.
Mr.. Snaler-We understand TINS suit IL instituted
to Offset the STOCK. Mr.. Chalss has 400 shares OF
the stock and tins suit is brought to depress stocks
and aid somebody who Is ''snort."
Further lesa, sparrlng followed between counsel,
but witness ssill declined TO answer.
q. Upon what ground do you refuse to answer
! A. By advise OF my counsel.
9. Why9 a. Because 1t IS my private business.
q. Have you not loaned stock Of the company 10
| persons wnom you knew had combined to purchase
| IL? A. No. Sir.
| @. Do you say you did not know of such q combi-
nation? A. decline TO answer.
q. Who borrowed money or what brokers owed
the company on the 9Th OF March, A. l can't say,
but aoou5 81, 900 was loaned out that day In
o. Who were the borrowers A. cannot be
positive about It; Mr.. Believes can tell.
q. DO you know Masley d Cor A. lido.
q. Were they debtors? A. cannot say.
Ors A. think nor.
Q. We're OSBORNE, Chaplin & Co.. ? A. 1 can't say.
q. We're jameson Smith q Coleman debtors I?
A. can't say; loans are changing every day.
q. Was Rufus Hatch dentor that Day? A.
don't know; tnlnk the money was loaned out that
day, put can't say TO Wnom IL was lOaned but some
OF IL was loaned out
Q. State who have bought stock since you became
President and prior TO The 9th of March purchases
still outstaudngl and who are interested with you ,
A. i decline to answer.
O. Have you not loaned to persons holding certid.
Gates OF guarantee A. ] have not.
Mr. Fullerton asked II any deposits had been
made In other companies than those provided under
section nineteen OF the company's bylaws. 1t Was
objected 20 and witness refused 10 answer.
Finally he said, lie Grand Lockwood. James ID.
Smith, o. p g. Billings, Alexander MastersOn and
myself composed the Executive Committee; none
OF us have had loans Individually; Smith, OF Jane.
son. Smith Il Co., had q loan; LIE Grand Lockwood
X Co. had loan, but don't know now much; no
other memDer OF a firm represented In the Execu-
i've Committee mad loans: decline to say whether
! was interested In the purchase OF stock
son, Smith Co.; the Executive Commit
tee authorized the purchase OF STOCK OF
the company Dy resolution but none was sold or
purchased did not think II eXpedlent TO purchase;
ana not report to tue Executive Committee or
other parties that had purchased stock the
1t known In the street that the company was going
to buy STOCK; no prOnt5 carried TO the credit
OF the company In consequence.
Here another set-tO occurred between counsel,
lasting hall an n0ur Judge Fullerton declaring that
before the battle ended he proposed to examine the
MIR. Shafer swearing by the Revised Statutes
that the books should not be seen by
proiane eyes. Finally counsel agreed to refer the
questions that Stockwell refused to TO Judge
Gilbert at nall past ten Tomorrow and resume the
testimony before the referee at three p. NJ to-mor-
row. The plaintl In the case, who Is large STOCK
holder In the Pacific Mail Steamship Company,
claims that the difcc Urs are msmanaging us affairs,
while the ueence In Dref claims tina: THIS action Is
taken by nun 10 af1ect the value OF stocks upon the
market. IL is likely that the battle VIII last before
the referee Tor several weeks If The court under
whose orders the evidence IL taken opens the )or
for critical examination OF the Pacific Mail steaih-
snip Company'S Affairs