National Republican. (Washington City (D.C.)) 1872-1888, 1875-02-19

sums, to bankers and brokers, and IL had frequent
transactions Of this character The entries would
money or lead him to suspect It, and this Is true
Of the various false and Irregular entries that
were made TO cover the various distractions Of
Some criticisms have been made against the
auditing directors for not examining into this AZ
nato Sn Sr tss SeoF tSpF tbese ertcIsms IN
just for It has only been by the most careful and
diigent search with the aid Of this investigation,
the company that the distractions have been fully
| detected and the manner in which they were
made and successfully concealed on the books
A misapprehension appears to exist not only In
the public mind, but, I fear, even by members OF
Congress, as to the precise nature and character
This COMMITTEES Is well aware that that lsgisla-
tion was not . subsidy IN any sense to the Pacific
/ wish to make, as : part Of my evidence in this
case, in order that the committee and Congress
may exactly understand the true posture Of af-
There was no act Of Congress in 1t72 granting any
subsidy to the Pacihs Mail Steamship Company
The general approximation bill Of 1872 entitled
IAN act making appropriations for the service Of
the Post Ofnoe Department for the year ending
that year for the support Of that entire branch Of
the Government, under which numerous contracts
for mail service have been made, was approved
in favor Of the Pacific Mail Steamship Company
whatever.
By the third and sixth sections Of that act the
Postmaster General was authorized to advertise
and invite bids or proposals for the mail Eteau-
ship service between San Francisco, China, and
anS o ley tSs sne sS
vice to the lowest bidder, according to the terms
and provisions Of the act.
On the 9TH june, ls72, the Postmaster General
made public advertisement pursuant to the act
inviting proposals for the mail service. The Pa
cihc Mail Steamship Company was the successful
bidder, and under the authority Of the general
appropriation bill the contract was awarded to It,
and on the 18th August, 1872, the mail contract
United states, Of the one part, and the Pacific
Mail Steamship Company OF the other part, for
the additional monthly mail service between the
port OF San Francisco and the port Of Hong Kong,
China, via Yokohama, in Japan, as authorized
by the general appropriation act Of June /, 1872.
That afterWard and on the sd August, 1873, the
new contract with the Pacific Mail Steamship
Company, with George H. Bradbury and Rufus
an additional mont6iy mail for t6e ports ABOVE
named, conditioned in all respects like the pre-
vious contract Of August o. 1872 for the said mail
at the rate Of 66o for each round voyage in the
currency Of the United States, payablein quarter
y payments on the receipt at the Post Office De-
ance Of the round voyages embraced In said pay
ments, to be paid by the Government of the
United states TO the company for carrying the
mails, according to the terms and provisions Of
the contract.
That this contract is still in full force and eff
feet, and the Pacific Mail Steamship Company
has maintained the additional monthly mali SER
vice therein provided for between those ports, and
has carried the mails, and is still carrying the
mails, making, In connection with the previous
contract between the United States Government
and the company, q semi-monthly mail service.
Up to the present time the Pacific Mail Steam
shlp company has never received one dollar from
the Government on account Of this additional
monthly service provided for by the contract.
In order to perform the contract as construed by
limited SEQtag INV mas
great expense, to build a number of vessels which
were required to be Of not less than coo tons reg
ister eae6, TO De nui!t Of iron and with their en-
and to be so constructed as to be
readily adapted to the armed naval service Of the
United States in case of war, and before accept
ance, were to be inspected by the officers Of the
Government, who were to report to the Secretary
of the Navy and Postmaster General whether
On the faith Of such contract and pursuant 10 It's
terms and provisions, and in performance of the
same, the PACING Mail Steamship Company has
since the said contract was made constructed and
ully equipped two steamships, not excelled by |
my sfoat IN the world, namely the City of Pc |
King and the City Of Toxic, at cost, including |
'utht, supplies and the expense Of delivery at the
port Of San Francisco where the contract requires
he vessels to be delivered, Of upward Of 81 SOO-
100. Both these vessels have been duly inspected |
y the board Of naval inspectors under the direc-
ion OF the Secretary Of the Navy, who have duly |
certified that all the conditions OF the law have |
'een fully complied with in their construction, |
md on the sth day of August, 1874, both the said
teamships were duly accepted by the United /
states Government for the additional monthly |
nail service between San Francisco Japan and
nina, under the contract before reclted, and of |
Which the company were officially notified by the
General.
The steamship City OF Picking is already at San
francisco, and the steamship City OF Toxic, now
n route for San Francise0 from New York, is
Drobably on the Pacific ocean, and will shortly be
0 San Francisco.
To enable the company to carry out its contracts
has commenced the construction Of three other
dditfoDal steamships Of the class and character
equired by the terms Of the said contract and the
iW Of June ], 1872, upon account Of the construc-
ION OF which the company has already expended |
nd paid out the large sum Of s3T5OOO.
That the total cost Of construction and eduip-
lent Of the three additional Steamships now In
recess OF construction, and their delivery at San
Francisco, will not be less than the sum OF q 400
70, making total expenditure when they are 50 |
nished and delivered Of g. 200 900 on the part Of
10 eemppny in the construction Of the peculiar
ass OF vessels required by the law of 1s72, and
10 terms Of the contract, to enable the COMPANY |
perform the same according 10 its terms.