New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-01-04
BOARD OF DIRECTORS SURPRISED.

BOARD OF DIRECTORS SURPRISED.
TESTIMONY OF HENRY CLEws, EX-DIRECTOR.
Considerable time elapsed after the time set
FOR the opening the on Saturday morning DC
fore ANYTHING was done. The first witness examined
was Henry Cews.
Mr. Klsson-Please be good enough to give your name
aud place Of business the reporter. A Henry CleWs
No. 50 Wallst.
O. Were You n ofncer director OF the Pacific Mail
Steamship Company in IS72l A. 1 was.
@ During tho whole Of that yeari A. think so.
O We're YOU director on Feb. A. 1921 will ask you
Asst II you went il with the St0Okwe administration
A. think l did, Sir; think became director in
November 1871.
O. We're you member Of the Executive Committee :
A. was not Sir.
@ Then YOU not present at meeting OF the E1-
scutiye Committee in February, 1871 A. was not.
@. Do you remember being present at the meeting OF
the Board OF Directors whom the resolution was pre-
tented giving certain authority to the President to en-
gage counsel and incur the necessary expenses In pro
curing the subsidy A. have no recollection OF H.
@ DID you ever hear anything said to the Board Of
Directors to OF the directors touching the onect
of such a resout0ui A. Not that now remember.
O. Did YOU krow that Mr.. stockwen had employed
Company A. did not until long afterward.
Q. Unu the law had been passedi A. Yes sir.
in Srncnrng the su6sidyi a. Not until il was late
correct 1t some tune after the subsidy was Cd
@ How did yOn fret hear that that expense had
a.
facts /; it was merely from common Tumor.
O You did not hear IL from Mr. StocRwell or any
officer OF the Company or IN the Board VI directors
@ Dld you ever see any report Of the amount of ex
pense incurred made TO tho Board OF hdcaIeu III any
O. Then you say that you had no personal knowledge,
unll afcer the subsidy granted, OF the means by
which was obtained or OF the expense incurred III CD
tanning M a. No, sir
known TO Board either prior 10 The sending OF MI
Irwin Washington or after he had gone theref A.
think On contrary, think was scrupulously
kept from the Board and also all knowledge appertaln
Tug ut. 49,. .
the Board in the Spring and Summer Of 1877 A. was
Of that Committee, but, think WAS elected after
Q. You think you became member Of the Auditing
Committee after the subsidy granted A think
It was before granting Of the subsidy but after the
O. As a member Of the Auditing Committee, any
accounts presented 10 that Committee having relation
to these expenses Washington A Not at any meet
O. Thon You don' know Of any account audited by the
Committee while ou were member having any rela-
q l viii ask you additional general question. Have
you any knowledge derlved rom any member Of the
Board from which you can state what amount was ex-
pended through Mr. Irwin, or otherwise, in procuring
the subsidy, alleged to have been expendedf A.
never knew Of II until my attention was called 10 an
freguary of the Presidents when that matter deVel
oped Itself 1t ard the end of the year. or rather
the of that year. that We we're elected Tor think
IL was in the Spring OF 1873.
O. Prior then TO the spring OF 1878 you bad knowl
edge Whatever touching these irregulantesf A. No,
my attention and that developed these large expend
lures alleged to he in behalf Of the subsidy. Ii was
while he IN the Board.
O. How long did he remain In the Board after that
dis.overyi A. He remained in the Board until his term
had expired don't know that he resigned at all
@ In other words, when did he ret1ref A. In the
Sprug OF 1878.
@ 1lis discovery was psde tnen III a. INC spring
OF 1873
O. Did Mr. stockweu make any statement at that time
about these doubtful accountsi A. lie did not
O. What actiOn was taken in con sequence OF the dis
cOVery A. Toe action principally taken was in con-
nectlOn VITA another matter which absorbed the aten
OF the Board almost TO the exclusion Of the subsidy
matter, ana mat the taxing or large amount OF
Panama Railroad stock and the investigation was in
connection with that
O In connection with assets belonging to the Pacific
Mail Steamship Company alleged TO have been unlaY-
fully appropriated by hini A. Yes, Sir.
O. Do you know whether Dir. 5tOckwell was gain er
IN 1872 by operations In the stock OF the Pacific
Mail Steamship COmpaDyi A. think he was gamer.
@ Had you any personal knowledge as to what his
condition respect TO operations In the stock OF
the Company in tho Spring and Summerf A. In the
Spring think he was large gamer, and III the Fall
large loser. My only knowledge was from common re-
port.
of the Board OF Directors Otherwise have reason
70 believe Board Of Directors the Executive
Committee of the Board OF Directors had any knowledge
OF the expenditures made 70 obtain this subsidy until
after the passed aud prior to the time OF which
you spOkei A. cannot speak In behalf or the Execu-
tive Committee for Was not a member In behalf Of
the Board OF Directors can uphestatingy say that no
knowledge brought TO the Board In connection with
tine large pendtuTes On the contrary, think 1t has
been regarded by them money taken from the Com
without any authority a1o for taking which those
q. Do you leave u 70 be implied that individually
those Directors had learned what was going on, and
knew OF the expendituresa A have no knowledge
that any had any knowledge OF IL.
was surprise 10 those who had directors during
that time A, IL was very great surprise.