The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-10
PACIFIC MAIL INVESTIGATION.
Racy Revelations of Stock Jobbine
Operations.

The President and Directors Of the Pacific Steam.
ship Company Charged with Fraud
Interesting Testimony.
The committee appointed by the Legislature to-
Investigate the charges made against President
St0ckwen and the directors of the Pacific Mali
Steamship Company met yesterday morning at
eleven O'Clock In the 50. Nicholas Hotel.
The members of the committee are:~I. A. Al,
berger, Chairman: Thomas c. Green, John L.
Snyder, Conrad Geib, J. Campbell and George u,
Bennett. The investigation has been entered into
in consequence q a petition which was sene
to the Legislature, charging President Stock
well and the directors OF the Executive
Board with manipulating the stocks OF the
company and using them to speculate for private
purposes The petition was signed by Mr.. Newton
Laymen, stakeholder who claims ne has been In
jured by the late operations OF the directors. bill
is before the Legislature to forbid the rrespon-
sble use OF moneys by the officers OF the company,
and Mr.. Laymen claims he has information when
viii seriously impicate several OF the prominent
officials. including the President and some Of the
directors. The following is copy Of the petition
forwarded by Mr.. Laymen to the Legislature. which
caused the present action:-
LAYMENs PETITION.
TO THE HONORABLE THE SENATE AND ASSEMBLY ' or,
The Of the undersigned citizen of the United
800 the
the p Sn Ms % dong
State Of New York that stockhoIder Of company
es n % ri .s
and the part Of the b
law and calculated to bring ds pue the and
Ne" aS and many
Se So or % 10
con that you may charge with the duty OF making due
the Pacific Mail steamship Company BY virtue Of the opDor
the rights OF this petitioner other stockholders engaged
IN If the s the ana Ss for
OF r the funds fund OF S, the company;
furiherance Of their the said 4 steckwell
has anS at sas the S S
fusion with these brokers lends them the funds
GS taxing
his power that there transactions OF this nature
to he amount q several millions Of money. ....,-
the rights ' Of the sockhoasrs and putting in pro-
thorough acton loss and
shs ns yGoF
Investigate The facts herein specified to the end that justices
pan 00n' 70 inc 0'ne' M
Subp9nas had been served upon the officers OF
the company prior 10 yesterday to attend and give
evidence and several OF the directors were promptly
hand. Three OF the directors were examined
vestigaton relative to the truth Of the alleged
charges. Mr. Laymen, 1t is expected, VIII be ex-
proof to substantiate his Allegations. The evidence
Is given below
ne said consists Of FOUR
$ n S:s
90 ssyns t So 'sa SS Nall
s :s I 5sT 70 no
any special or specific ARRANGEMENT with Mr. stockwe IN
aav.ncsd to usa cent their
distinctly A..
1s s%. s E. %S:s 1 The B.
sS ou s s w
not boaGn and solo e oS were mot in the habit OF
iOT M stoesws prior ii: becoming Prssasns nd
S the sT Ss us
stock ef n.sS since S 1s been
well Mr. stockwe has operated for rise to make money
GU. Of the stock by advance in the price Of the stock
value be has With me and s the stock ss So.
nSaos The prior
change BY re SS has not been
depreciation since bought; any comOi
S;Psss,s:s , r. ~ DO
there some no sp the State. sna
board Of director: the Oi intact and
SSsds r.
to the same class of people, was 20
e q
81 81
rowsd Of the both since have been drsco, and
cent a. sn
but have the data At hand have borrowed money!
Of the company the as we borrowed OF other lenders
ssoeKwe has bought stock speculative freely
ss Ct S Ss s he sna
n he eS y 20 S
holder Of the company for or two all that have scent
re e.
DO no, KNOW Of any instance when W stockwe any
Sssns s1rTs1sS
.oeH H here ha: been change in shs hrm
oS. ~ William the
JAMES d. SMITH
New YORK. ann banker director Inc faeSo
s,ssm.hp Company of The
United state. when the present company took
at the time do not know that there ever
any the
cent; DO not know that money was worth more az
csey the same terms; have bought Tor my Gus,
that the company has sold any since
November; the of stock held Ia 1900 shares
don't recoect that ever bought stock for
before became directors have frequently bought
thousand hundred shares; there
bination and control the and
thus control the conpany the persons whom formed tho
combination with OF them connected with the
COMPANY
Q. Who those individuals connected with the COM
| panvr A. do not know that . proper question to
! answer.
| The CHAInMAN-It must be answered
WITNEse-Wel, answer compassion; the only otherf
director WHOSE name reeoeet rs mr. Dsoorne know oI
manipulate the stock to the depreciation of the stock
h0lders Mr. Stockwe earnest worker In their behalf
believe he increases the amount OF his stock with the des
that the will enhance its value alwava
counsel him to conform the rules ordinary
toners the street, special facilities given him.
has been the of OF the di-