New-York tribune., 1874-04-30
PACIFIC MAIL.

THE CHINA AND JAPAN POSTAL SERVICE
F,uuRE OF THE PACIFIC MAIL COMPANY TO PER-
FORM THE sRMI-MoNTHLY sERyICE-TIE INVEs-
T1GATfoN BY THE HOUSE PosT-oFFIcE COM
| MIITEE-TEsTIMONY OF GEO. s. SCOTT IN hhi-A-
ToN TO THE sToCKwELL ADMINISTRATION
ENORMOUS WASTE OF MoNEY-EXfENsioN of
TIME ASKED by THE CoMPANY-AMERlCAS AMI
FOREIGN SHIPPING.
The testimony taken during March and April
by the House Committee on Postomces aiu 80
Roads in relation TO the China Mah Sei''o' - - oa
| printed, and COMPACT document VI .suoa
| Tho Pacific Mail steamship Company having r"
| TO perform the semi-monthly service pe'" io .,
| Francisco and Yokohama, had asReu on ~ q ooo,t
| time The first witness examined was oeoie Coro
! Wee President OF the Paciho Mail s'e" ,. eco,,,s
many One OF the first points touched IN MI, ~,
,yo ,r,s the financial troubles Of the Paclhc "ai
! sta,sbir comnany He said they had Oeeh 'i'
,oo, ON account both OF the misappropriauoh vi ~ ~
| =, ,ho poord the extravagant waste ana eNpcn'''
| of money ON the part Of all its agents anu on'''
| the amount OF steaage which has gone on' -
| WIT TIE PRESENT BOARD OF DIRECTORS HAS DoN"'
/ ~ c., oon,irued THAT amount cannot name,
o.. 40 ma, know how much 1t has been Inc preson'
Roard however have used every effort I'D the "oie "
the advantage OF the Company. MT sage iho
! q, the Company, and myself went on our inoi'iuu"
eIedi. lS. to hankruptcy and we did They had no
credit They could not have DouR, pa @ " cIredit "a
~ OTk(
0nol ~ that Of any other corporation in the CITY,
fspoafing OF the contract with the Government 70
| carrv a semi-monthly mall 10 China ana Japan, MI
srotf said: And now let speak in regard to what
we ask of the Government Ihe SomphnS sbips ~"
this Size costing 81 200 900 apiece very tatge M
money in good faith 70 carry on soon oI as Wo took
charge OF the affairs OF the Company that we eoulu os
comply with the terms OF the cohuac,i "a ma nmited and
although could then, with oss OF may pe s''V
100000 have simply thrown the matter up We uetel
| do he
generosity of the members oi SoDgtess @ 20 @ ~ tb
contract We have ALREADY 2aid OUT SS bsapce o a.
| they are completed
THE sToCKwE1L ADMINISTRATIONS.
He further stated that the Company was anxious 10
show Congress that ready to do anything IN It's
mower 10 fulfill the contract. 'f you gentlemen, ne
said would take into consideration the large NUMBER
NJ stockholders who are interested In the Pacino
| Mail steamship Company am sure you Will be disposed
10 aid u.s. We have 60 stockholders lneIo az t 90
% IN SaTs OF stock aud most Of it cost them from $50
10 SlOO per share under the magnificent
and on the other hand last year the Company lost Iost
$4,000 dead loss without allowing a9ytnhg aor fr
caton of ships. aud without spending one ceht fOi
insurance During the last four months Oh our aun @
istrstion have made 5000 net money dn i5 a5
by the establishment generally OF rgld system oi econ
omy Mr Scott several times spo6e Nty in
answer 20 various questions he said Mr. stockwe hao
g tocE eauai to $4,000 which he had taken rom the
Cnonv innronefly Three experts he said, had been
endeayorng get books of the Company into shape
nt IN would puzzle wsest bookkeeper 70 know what
| the Company had done He was himself pLaeucSaal
bookkeeper but he had found the books IN horrible
condition. All the Company knew was that tue mohe!
Mr. Scott also said that II the PostmasterGeneral
youln allow Company TO pat on the Our seamsips
IL now has IT could do the semmonthly ana LnSuIB my
service immediately; the Company Only asked d .nis
privilege until large iron shps were eompeted
INC sGPs o te Rm n bc the wooden sde-whee
vessels dld not do SO well. The Great HepuDhe last
| October lost $4,000 on the round voyage
| MIsMANAGEMFNT OF THE COMPANY's AFFAIRS.
Mr. T ". Park member of the Board of Directors
! WIN was not examined gave some details concerning
the cost of running vessels and then made the follow
ing statement "I want 10 say something in regard 10
| mlsmanagement. / hear many different statements IN
regard this matter and am asked "a many Times ~ re re
gard 70 II. When We TOOK cOntrOi ol the oonpanS &
found that there had been received 2lOOO IN money
surplus @ in s there rad 6eeL Of 100000 100000
hand we found empty treasury; that thcy WeIe III
sset snare 81 IT, own stock PScic Mail s'oc
9e eo to be S0a @ out al P o the ns narSet by
| Mr.. StOckwell, who President OF the Board OF
ComEany cheeks Of the brokers through whonihe had
sold il for the amount some $20OOOOO think Aerw@afd @
Mr.. Sockwell reported the whole OF the Paclho Mail
sod par, and the Company received the money
for After the Board came IN 10 was asceralned tat
the Panama STOCK owned oy the FscnG h9 aooaIP Ii
! COMPANY had been used, and Mr. stOckWeH was called
70 account for It, de stated t1at the facIc ii ~ @
ship Company STOCKS tha ma Oeen Ie.oreu a. so az
not IN fact sOld but held by the brokers' and they had
|
| "A margin carrying the stock which had
| declined on the market, and that Tor TINS ne
| took from the Company, without authority OF
tie Board of Directors, the Panama STOCK that
! tbey owned. He claimed that he was not Tespon-
sbie loss OF the Pacific Mail Company STOCK, Du!
the Company decided that nasmuch as he had reported
the stock been sOd he responsible Tor the
amount reported have been received Tor lti ana
| therefore he give mortgage on the Howe sewing
Maehue Works, Bridgeport, for the SUN or $2O0OOO
10 secure the balance found against him. In ADDITION,
found Oyerdrawn account OIL tnlnk, ABOUT
| S65lOOO the san Francisco agency. Mr. stOckWeii
sad that claimed that this money was expended
for the purpose OF buying opposition line and for
10 the conclusion that Mr. Irving Une agent did not
expend il either the opposition line or Tor passing
the subsidy BILL but that lac took the money iInse ana
invested It, OF his sister, III real estate IN
Phadelpna for which we have Instructed our COUNSEL
10 prosecute and recover the amount " possible"
Mr Park was confident that the Conpany's receipts,
with the $4,000 received each vessel from the GOV
crnmont would not much more than cover expenses.
The Company could not put on the semmoDthly line
without additional subsidy. lie said the Company
was in s32l. the Panama Railroad and about
81 100000 TO MIR John Roach In addition, two vessels
were bc built, and the 100000 which had been
TO puttIug the Company in proper condition.
| COST OF THE LINE 10 YOKOHAMA AND RETURN.
The following exhibit presented to the Committee
TO show the expenses and earnings Of the line
year on the route from Francisco TO Yokohama aud
return:
Snaner Rrpenses Earnings gain Net loss.
Oct 10 1872 sG- 93s % $685. 80 ...... s325s6 %