The New York herald., 1874-12-31
The SUBJ Committee Of the Ways
and Means Make Some I'm
portant Discoveries.
THE SCIENCE OF BOOKKEEPING
Two Hundred and Seventy-fve Thousand Dol
lars Traced to Mr.. J. G. Schumacher,
Member Of Congress.
Testimony Of a Brooklyn Trust
Company Clerk.

Means are gradually throwing light upon the
channel through which she funds OF the Pacific
Mail Steamship Company were distributed. The
investigation yesterday was very interesting, as
some important Information was CLEANED from the
testimony OF Mr.. William r. Bunker, the Secretary
OF the Brooklyn Trust Company. For the past two
days the committee have been carefully following
up the tran or the mysteriods stranger that had
Mr. Irwin's check Tor S275,0O0 certified at the
American Exchange Bank. On Tuesday they ex-
amined the cashier of the Marine Bank, but that
gentleman being afflicted with very poor mem
ory. could only aid their researches by informing
the committee that the $780, 900 was deposited to
the credit OF the Brooklyn Trust Company. The
examination OF Mr. Bunker, the Secretary OF that
company, proved the sensation OF the morning
SESSION, as ne very clearly testified that
HR. J. @. sCHUMAKER,
member OF Congress from Brooklyn was the IN
dividual 10 whose credit the money had been de.
posted The statement created considerable
sensation III the committee room and VIII prob
aply AFFORD easy clew to other revelations OF an
important nature. MIR. Rounday, Dookkeeper
in the employ OF the Pacific Mail Steamship COM
pany during the time they were dlsbursing these
funds through Mr.. Irwin, gave some rather
startling evidence as to the loose manner in which
business was transacted by the company at that
time From Mr.. Rounday's story 1t appears to
have been the custom to make all kinds OF
FALSE ENTRIES
in order to balance their ledger; and that he EVIL
deDtly was OF The impression that there would be.
on some future occasion, an investigation into
the affairs OF the company, was shown Dy hts fre-
quent reference to memorandum that be ac-
knowledged to the committee he had made at the
time thinking that 1t might come IN useful. After
recess the only evidence OF Importance was that
OF the clerk of the Brooklyn Trust Company, VINO
produced the deposited checks OF Mr. Schumacher
with that company. This witness said that 1t
would be impossible to state the disposition OF
this money by Mr.. Schumacher, inasmuch as these
checks were returned to that gentleman. This
witness added, sign ifcantlv. that Mr.. Schumacher
would be able to give the committee the required
Information.
The morning session commenced sharp at half
past ten A. NJ. Messrs Burchard, Beck. Kasson
and Nlblack were present. Mr.. Rufus Hatch was
also che alert looking after the interests Of the
company. Mr.. Beck first examined two members
d the press in regard to some misrepresentation
that had been made in the papers The first re-
ferred the evidence OF Mr.. Scott saying that the
latter gentleman
wINKED MYsTERI0USLY
at Mr.. Dawes and SAID something 10 a very low
voice, as II he wished to hide 1t from every body
CioCs no VIC cIdtCiHCAe mi8us VIC A.SSOnoIi u0u
into an impression that Mr. Dawes was
trying to suppress a portion Of the
dence MIR. Beck asked the reporter to have
Il corrected, as the remark had been
made in the hearing or the rest OF the committee.
The other mistake referred to appeared IN some
OF the morning papers, and originated from one
OF the reporters thinking he heard Mr. Kasson re.
mark to Mr. Beck, "Do you flnd your name thereSn
referring to the
HOTEL REGISTER
that Mr. Beck was examining at the time. 1t was
reported in the papers that Mir. Beck answered In
the affirmative, which, however. was incorrect, as
the conversation was entirely misinter preted Mr..
Beck appeared to be rather annoyed at the st ate.
menr thinking 1t had been maliciously inserted,
but was quite satisfied when he heard the ex.
PLANTATION that was rendered. The next witness
examined was MIR. John Rounday, former cashier
OF the Pacific Mail steamship Company.
Mr.. John Rounday was sworn and said I'm
1872 l was the accountant OF the Pacific Mail
Steamship Company carried on business at the
ONCE OF the company; Mr.. A. B. Stockwell was
then President; Mr.. W. @. Believes Vice President
ana Mr.. I. Z. Johnson Secretary my duty was to
take charge OF the accounts; the monthly reports
came In to me, san Francisco agencies and others;
had the cash book journal and ledger der my
control; the CHECK book was not under my con.
troll; knew MIR. X. B. Irwin he was the agent for
the company in san Francisco; he had no other
position that was officially recognized; believe
he was employed in the business OF the company
at Washington; have heard that he was en-
ployed by the company to assist In the passage OF
the subsidy; l see the items, amounting
to $75O,OoO. that you refer to Qoo3lng at
the cash book; the entry Is In my
hand: the entry Is made in that form
simply because It Is copied in that
shape from the stubs OF the check book; there
are no other entries posted in that way; suppose
that when making the entries left the place for
the name blank, expecting to receive orders about
it, examining these stubs think these names
have been filed in since made the copy into the
cash book; observe that the entry IN the stub
book is made in the handwriting Of Mr.. Johnson,
secretary OF the company; was not IN the habit
OF making entries rom the stub book until the
latter part OF the month; the entries particularly
the first one charging the check to the account OF
ELDREDGE IRWIN,
appears to have been filled In later; the stub OF
cneck 2, 800 appears IN different ink; the entries
on page is7 81 the Journal tnat ! am looking at
VINO as then my assistant; on May "a see the
entries OF the sums amounting TO $750,0O0; l
1t Is my impression atnat those checks were orig-
naly charged 10 Mr.. Stockwell. but were since
maze 70 the account OF Eiureage irwin also
think that the name Harriott Noyes appears
to be
SUBSEQUENT ENTRY
to the original entry: remained In the service OF
the company until November 80, 1872; cheeks were
issued under the immediate direction OF the Vice
President; the President was accustomed TO issue
the checks OF the company without any authority
from the Board of Direction; he was IN the habit
OF making all ordinary disbursements without ap-
plying to The directors was not present at the
meeting OF the Executive Commit ttee that you
refer 10: was then secretary OF tue company pro
tenn, and the Executive committee mad their
own secretary; Mr.. I. p. Johnson was secretary OF
the company and when the treasurer was absent he
drew out the checks; those entries on the stocks
we're made Dy Mr.. johnson; made the transfer
to the cash BOOK from the STUB book; II mad
found the names that now appear on the stub
book wben | made the entry IN the cash book
those names would appear in the cash book in my
hand.
The witness was then handed the checks in
question, and, after examining them, stated tnat,
to the best OF his knowledge, he had never seen
them Oeiorei these were not taken out OF the
check book. hut