New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-04-07
FINANCIAL. COMPLICATIONS.
PACIFIC MAIL FINANCES.

.-,, ,,r,vy DEFAICATIoN - FOUR HUNDRED
a-onr.,xn DOLLARS DEFICIT IN THE CHINA
,o,-,r,sp rc ALL or THE CHINA AGENT
-oou,.t;ve circles we're aGitated yesterday by the
announcement of an alleged heavy defalcatlon ana
Recommendation of funds TO the extent OF S1VoOoo'
:; one Of the large corporations dong business on
49, The rumor fioated about the street ex-
,;;nc dist1ust and causing apprehension by reason
.;. uncertainty as to the corporation After care
a., tnouiry il was finally discovered shat the origin
,ba MINOR grew out OF the cation into the
e,aoces Of the Pacific Mail Steamship Company.
When the Dillon administration went into power
searching investigation into the actual condition OF
tbe Company was 5egUn with a view TO ascertain
ing its resources and in order TO make the necessary
arrangements for placing it on proper business
basis According 10 the statements of one'of the
attaches of the Company, in their researches the
new directors discovered that by the books OF the
corporation there about S25O,OOO or s70O
zoo 70 the credit of the Company at the
China agencies. With the object OF utIl-
izing. this amount to meet the necessary
disbursements of the Company, theyt elegraphed to
the China agent for the money but were startled
10 receive in reply kilograms 10 the effect that IN
,tead of owing the Company any money, the ac-
commits of the China agencies had been overdrawn
$4,000 viz: $4,000 at Hong Kong and S1o'VO al
Shanghai This remarkable statement OF anairs
excited the utmost establishment among those IN
terested in the Company, and materially dls&r-
ranged some of their calculations, as it made
difference of between SGGOOOO and 100000
Indignant at the discovery of the fraud, the
officers of the Company recalled the emma agent
by telegraph, and instructed a. Center, Formerly
the COMMANDS representative in Japan TO 60 to
China and take control. The recalled agent was
formerly Wall-st stock jobber, named Henry
Hart He was an appointee of Rufus Hatch, late
Managing Director and has been summoned here TO
make an explanation of the extraordinary dehclt
Whoever has been guilty of fraud will be prose
Gated to the fullest extent by the officers OF the
COMPANY A hope has been expressed that there
NAV have been O misunderstanding OF the cable
messages which were in cipher, but 1t is not re-
garded as likely.
STATEMENT OF THE VICE-PREsIDENT
George 6 Scott, vicePresdent of the Paelhc Mail
Steamship Company, said last evening that there WAS
an apparent discrepancy in the China accounts 70 the
monn, az about sl25 100 but the Company had not the
slightest evidence that there had been any deia-
cation He, personally, had no reason 10 De-
neye that there had been any celacauoh'
and he based opinion the fact that as soon as MI
Hart mad received his instructions TO return 10 -e"
York he lad set sail for San Francisco THIS ne thought
wonld hardly have been the had there been any
thing cr.niaay wrong in his accounts Tor ne might
have remained here ne and been Deyond the
ofany the Company could have brought 10 pear
upon him Mr. Hart had arrived at san FRANCISCO az
1he Company mad been officially informed and ieft py
rail for New York April = He Is therefore "llmh
three days Journey OF this city, and may be expected
nv Friday or saturday latest. He Mr scoI) did
not believe that the Company would lose any money by
,he Transaction that every dollar OF discrepancy
Toud be accounted for in satisfactory manner SO Tar
Ne Mr. Hart was concerned. There were several ways
10 the discrepancy such as msmanagement
The failure OF remittances 10 reach their DESTINATION
and heavy expenses which had not yet come 10 the
knowledge OF the Company, although at the present
tune he had no actual know ledge nor positive surmse
as 10 how such things could be. He however, thought
II would be very unjust charge any one with beng
defaul.er with SO little evidence he knew that sew
eral Of the directors did agree entirely Win MIN IN
this view OF the case but until the facts were known IL
was only fair in opinion to give the most charitable
view of the case He teiegraphed to China for fnr-
her details Of the actual financial condition Of affairs
il was true that Hart had been ordered home ana
that A. Center had been appointed to take charge OF tho
China agency; aud lie had no doubt but that, after
The investigation financial affairs OF thai agency
had been made, Mr.. Hart would be removed from TIE
COmpaDy's service.