The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-01-09
THE PACIFIC MAIL sUBsIDYk

THE PACIFIC MAIL SUBSIDY
CoNoREssMEN PARSONS AND sCHUMAKF< IN
voRE THE WAYS AND MEANS COM xrfyr~sF-
rurIR RELATIONS WITH THE sTEA xrszrp cow
NpANY-REFUsAL TO DISCLOSE DF 4qvKp FACTS
AN EXCITED DENIAL OF BRIDr Ay
"AsHiN 4roS. Jan. 9, 1875
me Committee on Ways a "a Mean. met to-day
at eleven O'Clock and resv med the Pacific Hail In
vestigauon.
Richard c. Parsons, Che present member OF Con-
gress from the c. eveland tOho) district, being
asked If he knewfsnythin about the procurement
of the Increased subsidy in 1872 answered in the
Affirmative, and proceeded TO read a statement
OF which the points are as lollows:-
CONGRESSMAN PARSONS STATEMENT.
About three years ago witness was employed by
Mr.. Stockwell as his lawyer, to aid him In pre-
sentipg 10 Congress the application for an In
creased subsidy. The arrangement was made
with Mr.. Stockwer individually, he being an old
friend and client or witness in Cleveland, where
both resided. In pursuance OF this arrangement
witness devoted much time and labor to the col
lection OF statistics and the preparation OF
gument in favor OF the measure, proving irs value
and Importance to the commerce and ship
building and other interests OF the country.
He openly did all he could to urge
this measure upon individual members Of Con-
gress, never asking any one TOR his VOTE but Sc
curing attention TO the facts and arguments pre-
scented. His connection with this matter was
well known in Ohio as well as In washington, and
swas not in any way concealed. He received iOr
his services ana expenses ST. 600 from Mr.. Stock
well, and ne thinks also 81, 500 from Mr.. Irwin by
DRAFT on New York he paid no portion Of tLls
brother in-law, who rendered him valuable SER
wee as his clerk In gathering statistics, &c.
Two thousand dollars OF this amount was for trav-
cling expenses, printing expenses, &C., and his
lee consisted OF the remainder, namely, $4,000
Witness had no knowledge whatever Of any men,
bers OF Congress receiving money, being ap-
preached corruptly, or that Irwin was expending
any money In that or any other way except for
MIR. Parsons was examined at considerable
oath. - 60
CONGRESSMAN scHUMAKER's TESTIMONY.
John G. Schumacher was then sworn, and testi-
ced that during the years 1871, 1872 and 1873 he
had been an attorney Tor the Pacific Mail Steam
ship Company, and also for stockwen and Irwin
Individually.
q Did you in May, 1872, have in your possession
o check drawn by Richard Il. Irwin Tor $275, 900
A. had cneck Tor that amount given me by
client In confidential relations, and am under the
impression that This check was drawn by Richard
y. Irwin.
Q. Did you receive this check from Richard B.
Irwin A. That question relates to CONFIDENTIAL
relations between client and counsel. l would
hike TO tell you II permitted by my clients.
Q. What portion OF this amount was for your
personal servlcess A. In the neignborhood OF
witness then testified that he took this check to
the Brooklyn Trust Company by direction OF his
client and converted 1t into checks which by the
direction OF his client were sent by the Brooklyn
Trust company to another client. Alter consider
able questioning and repeated protests on the part
Of witness against invading the privileges OF con-
ddential communications, witness finally stated
drawn from che proceeds OF this $275,OOO check,
York. ~ ~ -
witness further stated that the remaining $l25 900
was, by mistake OF the Brooklyn Trust Company,
placed to his individual credit on their books and
shat he therefore drew out all this sum, except
$40, 600, by his individual checks and sent them all
a. one time and in one direction by order OF his
client to parties whom his client designated.
O. viii you give the names of the persons
among whom the Sis 600 were distributed A.
j cannot without the consent OF my client.
q. Was this client VINO gave you these instr uc-
lions the same person or being or entity from
whom you received the check ior s275.oOos A.
That u question OF law, and, besides, II Is going
Into confidential relations.
DENIAL OF BRIBERY.
@. What Instructions were given you as 20 the
disposition OF the avais OF the s275,OOO check I?
"A. am not at liberty to state; would like to tell
you II couli; l have tiled to Obtain permission
and nave not got 1t, and (eXcItedly) would be
willing Co go out OF Congress, II need be. to pre-
serve my professional honor and continue TO be
lawyers in the lace; want to say, however, that
although drew the money on the $4,000 check
casned BY Riggs / Co., did not draw the two
checks from jay, Cooke & Co., and never bribed,
or attempted to bribe, any member or o11cer OF
the Forty-second Congress.
ing IN various forms the inquiries which witness
had declared ne could not answer, at which Mr..
Schumacher manifested great impotence and told
the Chairman that he had no right to ask such
questions, that as = lawyer he ought to know
better. &c.
Mr. Beck remarked that It was evident the wit.
ness intended to place himself IN conflict with the
committee, ana WIS he'd to have the matter
brought before the House TO pass upon the issue
and compel him to answer II 1t saw 1T to
do so.
The committee at this point, It being nearly
hall-past twelve, adjourned subject to the call OF
the CHAIRMAN.