The New York herald., 1875-09-11
AFFIDAVIT OF RUFUS HATCH.
Interesting Expose Of the DOings Of Stock
well, Schumacher & Co.
Anticipated Return of One Of the
Expatriated Trio.
WHAT 1T IS EXPECTED TO PROVE.

city by the attorneys of the Pacific Mail Steamship Com
pany on which His Honor A. H. Young, presiding
Judge granted a continuance OF the against King
until the March term, 1876
THE AFFIDAVIT.
UNITED STATES or AMERICA, State Of New York
City and County Of NeW FORK, s& The Pacific Mail
Steamship Company VS. William G.. King-Rufus
Hatch being duly sworn, says:-I am now
pany. During tho year 1874 and until March, 1875,
/ managing director of the plaintiff My duties
we're to personally superincnd tho business and inter
ess OF the plaintiff and investigate the transactions of
several agents OF plaintiff. with the view make them
faithful in the discharge Of their duties and prevent the
misappropriation of funds Also my duty, in
case any such incorporation had been
made, TO take efficient measures to have such
misapproprlated funds restored 10 the plantin.
During 1872 and previous thereto Richard b. Irwin
the confidential agent OF plaintiff, and was accustomed
to receive pay out OF and did receive pay out OF large
sums OF money belonging 90 plaintiff As managing
director became my duty TO investigate the accounts
of Irwin for the purpose of testing their accuracy.
discovered that on the gath OF May, lsI2 at New
had drawn from plaintiff an aggregate amount OF
$4,000 in six different instalmcnts OF $3.50 900,
$5o,0Oo $25,ooo, $4,000 and two OF $1,000 each:
Among the paid and returned checks OF plaintiff
found six checks corresponding TO the amounts above
named The in endorsements on on each Of sSd aid
handwriting OF Irwin, and the money
drawn from money belonging to the plaintiff
about the dates thereof have examined the
counts of Irwin and his vouchers and all the books
and records OF said plaintiff relating 10 trans
actions had before during and subsequent TO the period
mentioned, and, though find money was drawn IN the
heretofore set forth, yet find no entry
indicating the purpose for which It
except to said Irwin for what purpose II paid
can find authority for the drawing, payment dis
burscmcnt Of sad money. find no alusion TO said
money any part in any accounts which said Irwin
has rendered to the plaintiff is Irwin debiet with
the same. IRWIN requested to account TO the
Pacific Mail Company for said money and explain
what disposition was made OF II, which he
declined to do Thereupon, during the month OF Janu
ary this year. suit instituted by tho company "
compel said accounting The aforesaid facts having
been brought to the attention the House OF Representa-
tives then assembled,
An INVESTIGATION
was instituted A large number of witnesses wero ex-
amned and the testimony published was present
Among the witnesses summoned was Irwin, who
resides in London; John G. Schumacher George q. Coo,
Dumont Clark Jonathan l.. Worth, Thomas Ellis and
William B. Gage all of whom reside in New York; l.
Davis, who resides in Washington, and William S. King,
Minneapolis Said Irwin, after admitting he had distrl-
buted large portion Of said money TO different persons
efused to disclose the names
After reciting portion Of the testimony OF Irwin
taken upon the investigation, which has been already
published the affidavit continues.
Subsequently Irwin testified that he had paid said
defendant William S. King, $l25, 600 of said amount in
varying from $25 600 to 900 OF the aforesaid
$3.50 00O and about the time he had paid to John
G. Schumacher the sum of 5000 900 thereof and other
persons various other sums amounting In the aggre
gate to about 81, 900. These sums wcrc not
paid by him in the line of his duties as agent OF the
company through any authority conferred upon him
by said company discovered that during the months
Of May and June, 1872 than 81 600 900 had been
extracted unawuy and secretly from the funds Of the
company by Stockwe, the president, and Irwin, the
agent, and that Schumacher and defendant King and
others, with the full knowledge that said amounts
unlawfuly distracted, appropriated TO
their portion of said funds
without rendering any consideration service what
ever said company, and then secretly and corrupty
made arrangement each with the other, to divulge
The fact of such unlawful abstraction and msappropra-
ton; and they did further agree each with the other,
10 prevent and battle every effort that should thereafter
he made 10 detect such unlawful acts The books of
the company were BY Stockwel manipulated
and prepared and SO filled with false
entries that IL impossible to dis
cover the extent OF the dofalcation Only by aid of
evidence elected upon said investigation and a con-
nued series of comparisons OF entries with persons and
Hrms to which they REFERRED the plot unioded and
the method and extent OF the defalcation brought TO
light; that during the progress OF the developments
made under the the four chef conspratOrs
and receivers OF this stolen fund left the countryto wit
stockwcll King, Schumacher and Irwin. Immediately
after said disclosures made took the promptest
and most efficient measures to compel the return OF the
money to the company. l further asked from the
House Of Representatives process TO compel the at
tendance of King before the investigating committee
Before the process could be served King fled from the
Jurisdiction OF Congress to foreign country and there
renamed till the process lost its force Since the be-
ginning OF this action | have been persistent in
seeking out the whereabouts of witnesses whose testi
mony support the allegations of this complaint,
but, through the efforts of Stockwell, Schumacher,
Irwin, King and their confederates, l have been
able TO produce the witnesses. Stockwe is in London,
Schumacher and Irwin arc now also in London During
The last three months most strenuous efforts have
been made to induce those gentlemen to appear
and testify as to the facts of the defalca-
ton, and to identify the of the
persons who shared with them in the abstracted funds
/ am informed that one has agreed TO place himself
within the jurisdiction of the Court before the
list day OF January next to testify to facts bearing
upon the case within his knowledge.
THE TESTIMONY,
which believe he can give is as folows:-That King
In the month Of May, 1872 upon the allegation and
pretence that he could Herewith corruptly influence
certain members of Congress to vote in favor of
then pending before tho House of Representatives
Affecting the Pacific Mail Company, induced an
employ6 OF that company To deliver to him
sl25,000 from funds belonging to said company,
and thereupon promised that in said
amount was delivered to him he would distribute the
greater portion thereof among the members of Con-
grcss that on the faith OF this promise and for that
poso said amount without tho knowledge Of the Board
OF Directors of the Pacific Mail Company was so de-
livered to King, and that, instead OF paying the
same he appropriated the whole thereof TO his uso
and performed the service made the payment
TO any one for the company. aver that each Of the
aforesaid persons Schumacher Stockwe and Irwin has
personal knowledge of truth the foregoing aega-
lions, and testify TO them in Court believe that
Of them has consented and agreed before the lst
day of January 1876 to place himself within the urs-
dicton of this Court for the purpose OF having his
testimony taken in this case. l am advised by II. $.
Bennett counsel for plaintiff in New York and John
that IL will tend to defeat tho ends oil
justice and may. prevent obtaining the
aforesaid test timony " reveal which of the three
has made the foregoing agreement; unlawful in
ducement has been made to him to give the aforesaid
testimony; the only motive that prompted witness to
make said agreement is desire TO tell the whole truth
Mr.. Hatch then testincs to Kings and Schumaker's
Identification in New York. has been already pub.
hshcd naming George $. Cole, Dumont Clark, Thomas
Ellis, J. L. Worth, c. L. McDougall and William p.
Gage witnesses who will testify in support of his
lIiatch'sl allegations, and continues
Each OF the above named witnesses Is material for
the paintin, and without the testimony Of said wit
ncsscs plaintiff cannot safely proceed to trial In consc
auence OF the skull aud secrecy with which the alorc
said immense sums have been distracted from the
company, tho ingenuity and with which the
tracks of the dcauters have been covered up II has
auircd the united efforts Of many detectives and ac-
oountanis TO unearth their hiding places and the
stolen funds, TO discover the names of witnesses,
who have knowledge OF the circumstances and events
By which conviction Of the dcfaultcrs can be esab-
lishcd. have been unable TO do than discover
the Aforesaid iacls but have not had time since TO pre-
sent the proper papers TO the Court that commits
sion could issue 10 secure their testimony in
time for the trial Of this have, how.
ever, instructed counsel TO take the proper steps
10 have commission issue TO examine all OF the wit
ncsses az their residences respectively, hei testi.