New-York tribune., 1873-07-01
A PACIFIC MAIL WAR.

Aiutn d. DbOChHclI, HaFe Dceu tilo bhDJctS VI iiN
quelt criticism or general comment throughout the
community. The financial troubles which charac-
tcr,ed the closing days of the late administration
resulting in the transfer Of 81 10000 in notes OF
President StOckwell, secured by the Howe Sewing
Machine mortgage to the Pacific Mail Company, are
still too fresh to need extended notice.
Anew trouble, however now menaces the treasury
of the Company. 1t will .be remembered that early
in the administration of President Stockwell the
legislature passed an act authorizing the Company
to reduce its capital stock from $20,0O0,OO0 TO
S1C0O00o0 THIS authority, it was generally under
stood on the Street, was used the basis of fire.
quent and successful stock operations. The Com
pauy however. purchased stock until il had secured
1900 shares, which at the par value of 800 share
aggregated $2,7000O0. At q meeting Of the Board
of Directors the President Mr.. StOokwell, was au-
thorzed to sell this stock at par. From this point
dates much Of the trouble which has made the Com
pany notorious. IL is alleged by those opposed to
President Stockwel that he took all this stock for
his own account, and, reporting to the Board that
it had been sold at par rendered check for the full
amount Those who profess to be acquainted with
the details OF the transaction say that Mr. StOckwell
passed this stock 10 his account at 100, believing
that he was then in the zenith of hs success nc
could raise the price to 150 unload on the market,
and secure a 20 per cent margin Of profit, aggre-
gatiDgon the 1900 shares Sl,35O,OOO
President Stockwell's star, however, was waning.
The Company careless OF unfortunate, and YES
sells were lost in quick succession. The community
was startled, and the treasury OF the Company de
pleted, with most depressing effect on the price of
the stock. 1t gradually fell, until one day the
bears" made raid on the market, and put IN cir
cuation rumors that Mr.. Stockwen had failed on
his contracts" There was almost a panic and the
price went very low. Reports were circulated that
Mr.. Stockwel no longer able to carry his stocks,
and had been obliged to effect compromise
whereby no was relieved from his burden.
BY those who had intimate relations with the Com
pany, it declared that he had called the Board
of Directors together and informed them that he
had not sold the stock but had taken it for his own
account was unable longer to carry it, and asked
the Board to compromise at low figures. Whether
this was the case or not certain it is that notes for
Sl,l4OOOO were made by him to the Pacific Mail
Steamship Company and secured by mortgage OH
the Howe Sewing Machine Company, Of which he
was also the President.
President Stockwell, however, claimed that he
had not taken all this stockf for his account but
that 1000 shares had been sold, and 1900 had been
hypothecated for the benefit of the Company. lie de-
stock at the price at which it was alleged to have
been hypotbecated, OF pay the difference between
this price and the market value at that time which
was much lower When tho present Board of Di-
reetors were installed this claim was presented to
them and s. was suggested as the basis of settle
ment. This proposition was rejected by the new
Board and Mr. Stockwell declared his intention of
appealing TO the courts, which he has done as VIII
DC seen by reference to his complaint below, which
is now made pupiic tor the nrst tinie:
THE COMPLAINT.
Supreme Court City and County or Feic York Alden
b. stockwelI against the Pacific Mail Steamship Com
pany The plaintiff complains Of the defendant and
alleges:
First. That the defendant is corporation duly created
organized aud established. owning and running line
Of steamships between the City OF New York and Panama
in Central America, between the said city OF Panama
and the City OF Fgancisco In the state OF California,
and intermediate ports aud places, and between said
City OF san Francisco and different ports and places IN
China aud Japan, for the carriage aud transportation
Of freight and passengers.
Second: That heretofore. 20 Wit on the tenth day OF
June one thousand eight hundred aud seventy
the said corporation became and indebted TO the
paint IN the SUN of million two hundred and hfty-
two thousand eight hundred aud seventy dollars aud
seyeny-two cents. with interest amounting TO the sum
OF fortysx thousand four hundred dollars and forty
four cents for money before that time lent aud ad-
yanced paid laid out and expended to and for the use
OF the defendant 3t the defendants request and the
defendant being indebted, afterward, in consideration
thereof promised the plaintiff TO pay the same, but
although thereto Ioften requested he defendant has
hitherto wholly neglected and refused 10 pay the same
or any part thereof.
Thtrd The plaintiff. for further and separate cause
Of action complains aud alleges that heretofore to wit.
Oh the said tenth day OF June thousand eight hnnd
red and the said defendant was justly in
debted to F. O. Markham in the sum OF one million,
TWO hundred and fortytwo thousand eight hundred
and seyeny dollars and twenty cents for money before
that time lent and advanced to the defendant at the de-
fendants request Together with large amount Of IN
terest then In and unpaid 70 w.t. the amount OF
fortysix thousand four hundred dollars and foryfour
cents That the day and last aforesaid the said
r C. Markham for valuable consideration, duly
signed transferred the said debt to tins plaintiff to
whom the same is now due and payable that the de
fendan though requested so TO do, has refused to pay
the same or any part thereof.
Wherefore the plaintiff demands Judgment against the
defendant for the OF million three hundred and
fortywo thousand eight hundred and seventy dollars
and seyontytwo cents with thereon from the
rst day of December one thousand ght hundred and
sevenfytwo inclusive together WIN the costs Oh TINS
action. -...... ....
Barlow, Larocque, and MaGarland, Attorneys for
Plaintiff
the above plaintiff being duly sworn. says that
the foregoing complaint Is true to his own knowledge,
except 70 the matters therein stated on information
and belief and that 20 those matters he believes
m IN he true. ALDEN Il. SrOCKwELL.
swOrn before me this nth day OF June, 1879.
s. ID. THOMAS, Notary Publfr Kings Comfy.
TIE Frank O. Markham referred 10 Is broker, doing
business iu Broad st., and operator for exPres
dent stockyeil ExJudge Edwards PierrepOnL is
counsel for tue Company and will oppose the demand
ina,much as he considers that Mr. stOcswel acted In
his capacity as officer of the Company, aud that the
money paid into the treasury was for the 27o shares
Of stock transferred TO him and reported as sold
The price Of the STOCK very heavy yesterday, In
Of that Of the notes for 100000
mentioned above today and would not be paid
The price declined from 37i TO $50.
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