New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-07-09
PACIFIC MAIL SUITS.

A STOCKHOLDERS FUND ~ I'M '''''~
THE COMPANY REQUESTED TO SUE ExPREsDESr
| sTocKyEII-uE Is ALLEGED TO BIZ cRIMNALLY
| IIABLE-HLs ASSOCIATES Also RESPONSIBLE
THE TRIBUNE announced some days ago
that stakeholder Of the Pacific Mail Steamship Com
pany, dissatisfied with the manner IN which us atairs
had been managed about TO request the new boafd
Of Directors to begin legal proceedings against er
President stockwel aud such OF his codrectors as Wer"
responsible for the manner in which tbe Companys
| treasury had been depleted.
This statement has been verified by the application ~
Aaron Freeman resident Of Schenectady and holder
OF several hundred shares OF stock, 10 the Board or
Directors requesting them begin proceedings mme
| diately. His communication was served Capt
George H. Bradbury President OF the company, and at
! n meeting OF the Board Of Directors yesterday II WA
discussed and referred the counsel Of the
for his consideration. The request ia as follows;
THE APPLICATION
To N, Paeifc Mail steamship Company A. a stock
holder OF the Pacific Mail steamship Company Tor more
than one year past request that, making the necessary
tender TO Alden b. stOckwell you immediately bring
First To set aside thesale bv the Pacific Mail steam
ship Company TO him OF $500 shares OK the capai stock
Of the Panama Railroad COMPANY. ..,, s...,u..l,, -
the Pacific Mail Steamship Company o. bis four 'ieam-
ers the Nevada, the Nebraska, the DdAo1'' @nh ID"
Thirdly: To compel said stockwen to restore o'th.
Pacific Mail Steamship Company the said $50 shares of
Panama stock in such that ne cannot derive ang
profit nor the Company sustain any loss by ih' hnclnt
lions OF said stock IN the market or by bis taking hold
| ing, purchasing, selling the same.
Fourthy TO compel aid sockwell to paw me Pa.
cihc Mail Steamship Company the sum- SAY S50O' APP
| pearng on the books OF the Company 10 have bcsa
loaned TO Frank G. Markham. and " have been unpaid
| on the 10th day OF February. 1873.
Fifh To have adjudged utterly null and void tho
whole agreement between .ad StocKwe and his feilsw
! directors Of the Pacific Mail steamship company 70,
February ana March, 1873, whereby the claim OF tb,
! Company against stOckwel for puroinng The .at
Panama stock and misappying the money a,lts.u 10
| have been loaned 10 said Markham was compounded
and the said steamers aud the notes OF SAID siock~
secured by mortgage upon certain property OF ths
/ Howe Sewing Machine Company were taken IA seitt-
Ifurther request tina. you will institute suit against
the said Frank {. Markham and against those directors
of the Pacific Mail Steamship Company who apprSd
| OF Stockwelps breaches OK duty as trustee lor lho
stockholders OF said Company, participated Dy lnrt
counsel by their votes or IA any Other Ws ~ foVshs
property Of the Company Beside the ilrgay ~ SAID
TO buy property from or sell property 10 Tue topang
/ OF which he q director, | am informed
that he purloned from the Pacific Mai Steamship Com
pany the said $500 shares OF Panant stoek ana In@t n'
fact known 10 his feOw-drectOrs when they mai"
fictitious sale Of SAID stock 10 htm, and that 40 pre-"
far below liz value ~ the time IL was aos'ih IRON
the treasury OF the Company TIE loans standing ia
airy :" Esp Lo,' %S epe or the iont' ar ea
mon advantage of said SCOckwciI or Markham; THIS
also was known 20 the fellow directors of said sto'A
| well. Said steamers were sold by said st0ckNeH al
price far Of their real value, aud TINS O ibe
knowledge OF said directors. said Markham knew that
| the money he obtained from stockwe was the money
I
OF himself aud StOcEwe, and that the securities hn
! offered therefor were worthless. AARON FREEMAN
July ., 1873
! GEO. NJ VAN HosES Attorney, No IL Colcgepiace NY.
George NJ. Van Hosen. the attorney OF Mr.. Freeman.
said that the time Mr. stOekwel took the Presidency
OF the Pacific Mail steamship Company hs client Vas
impressed with idea that the stock was desirable
purchase ana invested accordingly, believing that tho
| Company would be well managed AT the ume the
| stock began To decline he sought Mr.. stockweiL
who repeatedly advised him TO average" that s pui-
chase sufficient stock after each decline 50 that hero
was a reaction lie would get such proHt on his low
priced stock would OFFSET the loss on tho
hgh-priced stock. Freeman acted on the AL.
vice. and secured, by repeated attempts to
average" labout Coo shares OF stock. Contrary
to Mr.. Stockwels many predictions there was no IN
| proyement but steady decline, eliminating M .
panic Mr. Freeman, with ms 60 shares OF Stock Is still
waiting for that reaction" Becoming augued how
ever under his load he determined to seek the AID OF
the courts did think judcous 10 do 30 nnil
the stockwell administration had retired. Mr.. Van Hoo
sen states that his client will wait until he shall receive
the reply OF the directors II il be unfayOrabo then ho
will begin on his account. The attorney lui'
thcr explains that Mr. StOckwel was normally IA tbs
habit OF lending the COmpanys money To Ms br0k's,
but through OF really using In his own opera
tions f. c. Markham old and intimate friend oil
! Mr. stockwelI In Cleveland Ohio When Mr.. Markham
entered the stock market, he did small out
| side business until the intimacy which existed
| between Mr. stockwe and himself prompted hun Ia
give 10 his friend large share VI his speculative Ous
ness When Mr. Sockwell became President Of she Pa.
cifo Mail Steamship Company MI Markham's orders
were increased and he did large business. almost cS-
| clusiyely however, for Mr.. stockwell when De WIS
/ carrying stocks for Mr.. StOcKwel the latter
would supply money from the ueasury ot
the Company upon collateral security Of an 10.
ferior aud often OF worthless quality.
The alleged loan of s5OjOO said to have been made
rendered collateral securities in the shape OF certificates
of the Australian and NewZealand Steamship Company,
otherwise known Webb's company, tine steamers II
which we're bought by the Pacific Mail COMPANY.
These certificates were said 10 Do worth
less, and when the examination INTO tho
affairs OF the Company was made by thu
directors the loan called IN bat not paid when
Mr. stockwe purchased the Webb steamers, referred ~
In Mr. Freeman's communication, and rcsoId them AZ AN
advance Of several hundred thousand dollars to TIC
Company through Mr. Markham, IL was agreed that .
sum sufficient to repay 10 the Company the Markham
loan should be retained and the rest Oe paid over ~ Mr.
stockwell. The attorney further says that az mo
old Board OF Directors responsible except perhaps
two or three, whO fearing what Was Ia come, eyad'd
liability by absence refusal To consent to M.
stockwelPs operations. Mr. Van H1sen thinks that
what is meant by the necessary tender" M Nj frr"-
mans communication is such property as Mr. s"okWen
turned over to the Company liquidation Of his debts
among other things Webb steamers the notes aud
mortgages etc. The total claim of the Company Is eN-
pected to aggnga'e between 100000 ana S-'octtc0.