New-York tribune., 1874-12-10
THE FIRST OF THE JOBS AT WASH
iNGTON.

PACIFIC MAIL REVELATIONS.
HISTORY OF THE CONTRACT WITH JOHN ROACH FOR
THE CONSTRUCTION OF TIE EXTRA STE AMsHIrs
-RUFUs HATQU's MARGIN.
The Wall-st. cauldrOn is still boiling and
Pacihc Mail furnishes the fuel Numerous reports
10 circulation regarding the future organization Of tho
company, but nothing 10 definitely known beyond the
iact mat Rufus HItchs position Managing Director
ana Executive Officer will be vacated after the new
fresident shall have entered into the details OF his
WORK Re orts In circulation yesterday that Mr..
Hatcn, having been carrying largo amount Of Pacific
Mallat high prices, his brokers called upon him sup
ply the margin" after the change In the Presidency
This was reported he failed do aud stock
sod out Tor his account The revelations of THE TRIBUNE
concerning the private contract with John Roach
whereby he claimed to have order from the Company
lor the construction OF steamships like the Peking
ana Toxic, to cost between toooO0o and 5ooooo
sioned much surprise. While some Of the attaches OF
tue company profess entire Ignorance OF tho matter.
Others declare their knowledge of tho facts. From
erai sources OF information tho following story Is de-
rived:
Ihose who admit that such contract was made with
John Roach say that 1t was only done cOndionay.
when the prospects Of the Company looked rather dark
John Roach was very active in sustaining the credit and
operations OF the Company and worked In the sincerest
manner to secure tho subsidy He successful and
was rewarded by the speedy acceptance Of bis steamers
by the Company In consequence of his success efforts
were made to obtain additional subsidy In view Of his
prospective efforts contracts made with him for the
construction OF the three steamers now building for the
Company. at total cost OF slS00Ooo and also Of the
other two steamers which in dispute The terms OF
'he contract respecting the two largo steamers 1t Is
alleged were to the effect that the additional subsidy
should DO procured within SIX months This contract
was made by George Scott Russell Sage aud tho other
representative officers OF the Company. The additional
aA nd
it was claimed by the officers OF tho Company that the
contract was abroSated in consequence Mr. Roach 1t
stated applied to Russell for the extension Of the
contract but that official refused to to it, saying
that the contract had been abrogaed by the failure
comply with Its terms. Mr. Roach telegraphed to Mr.
Scott, who in rope, to upon him the import
anco OF extending the contract aud Of inducing Mr.
Sage 10 comply. This contract. IL is alleged has not
been renewed. The friends OF Mr.. Roach, however.
claim that the contract Is still existence and that he
Is authorized to or 1000
burden. Mr.. Roach will make statement explaining
all his relations with the Company and especially the
circumstances connected with the alleged contract for
the construction of the two steamers In dispute.
A meeting OF the directors of the Company was held
yesterday at which these matters came up for consider
alton. Mr. Roach present and applied for copies OF
minutes Of the Board upon which The resolutions
authorizing the contract had been entered He Will no
doubt make Of them ia his statement As tho Com
pany Is disposed to allow his claim at the present
time, 1t Is expected that IL Mr.. Roach insists upon
1t the matter will be taken to the courts As
dispute had arisen concerning "extras.' .0r
overcharges for work done on the. Toki"
and Peking the matter referred to committee and
finally adjusted. Mr.. Roach taking the notes of
the Company for sl4lOo0 and the steamer Rising Star
instead OF s2i6.OcO. which he claimed.
1t is expected that as as President Alexandra
gets work there will be changes In the several agen
cies of the company. Henry Hart. formerly Walst.
stock broker and the present China agent will probably
be removed aud business substituted in MS place
The statement tke company will probably be submit
ted to-day the directors having spent much time yes
terday IN considering the details
SMUGGLING THROUGH AN INCREASE OF
PACIFIC MAIL SUBSIDY.
AN APPROPRIATION OF HALF MILLION FOR SUB
sIDY NOT Authorized BY LAw-oNE THING
THAT THE EARLY APPROPRIATION BILLS MEANT
WHAT LOBBYIST MANAGED THIS JOB AND WHAT
MEMBERS WILL VOTE Fo.: I'll
TO the Edttor OF The Tribune.
SIR: l wish, through your columns, to call
he attention Congress and tho country 10 another
gross fraud be practced the United States
Treasury in the interests of tho Pdcihc Mali
Steamship Company. They have failed to fulfill
the contract under which they We're to gain
the additional subsidy OF $j00.0Oo per annum.
They in default on this contract since Oct l.
1873 are at th, moment and must be for at least year
to come. Tne PostmasterG reported the Default
Congress refused make appropriation for IT. aud
the new subsidy considered on all hands as dead IL
suddenly appears again IN the appropriation Dls whch
we're introduced wi such flourish OF trumpets In the
House the other day Under these circumstances beg
your careful attention to the following recital Of the
facts all Of which OF public record and not one OF
which can in any way be disputed.
efar arnl rp rpnOrte0 Congress
fDecember 1879 that the contractors had failed to
ply with the terms Of the law and contract In not
beginning service with iron steamers OF 1000 tons
on before Oct 1s3 and he submitted to Congress
for Its decision the question whether the forfeiture
should be enforced TIE Committee on Commerce OF
the Senate and Post-O.hce Committee OF the House
reported In favor enforcing the forfeiture, and bill
was at the same reported repeating tho subsidy
act This would undoubtedly have passed had not the
Committees urged that its passage would merely
kill what was already dead. The Company's
friends fell In with this view, waiting Ior
more propitious opportunity. The views OF the
Committees were adopted BY the Senate and House oy
reducing appropriation for the present fiscal year 70
the amount Of the old subsidy viz sooooo instead OF
H. 100000 During the recess and before leaving the
De partment Mr.. Cres we'll prevailed on to submit
to Attorney General Williams substantially the same
question he had previously submitted to Congress-
which, as he was fully aware, Congress had settled;
fnaltv as every one supposed except Creswell. Will
liams, and the;contractors. Williams decided that the
time fixed BY law for beginning OF the service was
of no consequence, and although nearly year had
elapsed tdescribed by him few months ~ and the
Company had not yet begun and was not really
TO begin the service, still the contract was binding
on the Government and the new steamers must DC ac-
ceoted. Ou this, Creswe accepted the steamers Pc
king snd Toxic coupling his acceptance, however.
with the distinct that the service to be rendered
nv SAID steamers woui be paid for until Congress
shall legislate further on the subject
Postmaster. General Jewell has included the entire
Al his annual estimate for the next hscal year.
probably without having had his attention ora"n W 'ne
nseonences. tor he reminds Congress his annual