The New York herald., 1875-02-08
PACIFIC NAIL.

| STATEMENTS CONCERNING THE SECRETS OF Tm
CoMPANY-wHAr THE MANAGING DIRECToB
HAS TO SAY ABOUT THEM.
when the funny men OF Wall street dubbed
Pacific Mail stock Perpetual Misery" they must
have been lmbued with prophetic instinct for GER
tainly ever since the shares have assumed any
prominence on the Stock Exchange as a specula-
tive interest either its directors or Its AFFAIRS have
invariably been In not water. The present Con.
gressional investigation into what Is popularly,
although, 1t appears enormously, called the "Sup-
sidy Joo, has wed with the celebre Of Brook
yn in absorbing the public attention. and, like Its
former rival, seems to be almost tnJerminabie
Indeed, 80 true Is this that In the iuture the in
tials P. N. s. s., instead OF standing for Pacific
Mail Steamship. VIII suggest to the mind rather
Pacific Mail Subsidy Scandal.
Yesterday morning the HERALD received infor.
nation to the following enect:-First, that the
Pacific Mail Steamship Company had within few
days, sold all OF their San Francisco property con.
slssing OF wharfs, warehouses and real esrate, for
the sum OF $45O000. this property having been
invenforled by them at 81, 100 900. Second, that
the coast or San Diego line. with six ships and
certain parcels OF real estate, valued at $500 000
had been sold for $230,000 Third, that 100000
worth OF stock OF the company had been disposed
Of Fourth, that desperate effort was to be
made to have the subsidy renewed. Fifth. that
the company was burdened with very heavy debts
and finally tina: an effort might be made to sell out
the present subsidy; the inference to be drawn
from the whole that the affairs OF the company
were In q very bad way indeed. Here was cata-
logue OF statements the truth or fasity OF
which 1t was most important to discover
and HERALD reporter was instructed that
such was the duty assigned him. Mr.. Rufus
Hatch, the managing director OF the Pacific Mail
Steamship Company, was accordingly called upon.
Mr.. Hatch was suffering from severe colo. but
when the mission OF the reporter was explained,
he welcomed him anably and expressed his entire
Willingness to converse on the subject and to give
all The acts In his possession which would throw
any new light on the rumors
STATEMENT OF MR.. RUFUS HATCH.
in regard 10 the San Francisco property, It Is
not true that we have disposed OF II all. Only
not include any dock or wharf property Whatever.
The sum TO be paid to the company Is $3.50, 900 in
gOld The trade has been consummatcd but some
few minor details have yet to be. arranged. The
property has been leased back to the company
lor fifteen years at an annual rental OF $1,000. .
This includes two large warehouses, which we
have leased TO other parties at an annual rental
OF $24O0O, so that the actual annual outlay Of the
company VIII be only $4,000 The valuation Of
the entire property In San Francisco and this In
cludes the two warehouses mentioned, made as
mentioned Dy your informant Is terribly exces-
sive."
MIR. HArcH-The San Diego line was sold some.
time ago for the sum mentioned-that is, $780, 600.
The property consisted OF six old wooden steam.
ers and one piece OF property worth about $4,000.
II remember correctly Messrs. Alexandra Guion
TSe 6s Mss no sse Os ans
means profitable one, as It was being operated
one quarter alone it lost about So SO that the
sale was clearly in the interest or the st0cKhold.
srs II was an expensive Iu1ury ana was one Of the
ton. The launching OF the Peking and Toxic, which
was necessary to carry out our second contract
win the United states government, which shall
explain to you later, Was great disappointment
to many people, because that was supposed to be
the turning point In the affairs of the company.
Had the company failed TO perform this contract
1t was supposed that It's ruin was inevitable, and
this accountsin q measure for tine ialsenoods and
mlsstatements which have been so lndustriousy
circulated. The evidence before the investigating
oa tbs ss the
bribery, and 1t IS hardly necessary to mention
who divided the money.
NJ. irwin's testimony, IN which he acknowl.
edged to have stated tnat be was coming to this
ship Company, that II would be IN the hands OF
receiver within sixty days, and that he came here
vince the pubic That the wSoie thing was pre-
concerted conspiracy to break down the credit OF
the company, II not TO finally ruin it.
REPORTER-Have you, as stated, sold within
short time 100000 worth OF the STOCK Of the CON-
mi Nj. HArcH--rhere is nothing new in snas.
Some time IN November last 5000 shares OF the
stock were sold at AN. The m oney was used 10
or 4,lOO tons EACH being built on the China con
tract We have paid already $375,O0O on
to make final payments. The ships when all com.
pleted and fitted out. are TO cost about $3.50 900
escn, an ana as tne tnird think VIII ee launched
REPoBTER-welL Mr. Hatch, what have you got
to say about the subsidy
Steamship Company has never been subsidized oy
the United states government; what money the
wees wees rendered. I'm In 1865 law was
passed authorizing the Postmaster Cen
for monthly mail service for ten years between
San Francisco, CHINA and Japan. the Pacific Mail
Company was the lowest bidder, and the contract
was awarded to 1t, the service to commence on
January l, 1867 the sum to be paid being $780, 000
annually in quarterly payments OF SIPS, 900 each.
the Pacific Mail Company and We are Carrying
them now, and the government has always paid
twenty ty-three months TO run before 1t expires.
THE SECOND CONTRACT.
ing sh General to oq aa
dltlonai monthly service between San Francisco,
China and Japan ior ten years. THIS would make
contract was awarded to the Pacific Mail Com
pany, the service TO commence in october, 1873.
as before, viz., $500, 900 annually, tn quarterly
instalmenis.. Since october, 1878, the steamers
been carried satisfactorily to the government and
10 the commercial pubic, but for this additional
service We nave not as yet received single dollar.
In this second contract there was @ provision that
the ships were to be built OF iron and so con-
structed that IN the event OF war they could be
readily converted into war vessels. TWO OF them
are already anoat. The secretary Of the Treasury,
as provided by law, appointed q commission OF
three naval oncers, who were to inspect the
vessels The Inspection was made and the
report OF the commission flied with the Post
master General, who ordered Us to put the
ships on the service under the contract. We have
the letter ordering ths, SO there can be no
doubt about that lhe first one, the City OF Peking.
and Japan on the 18th, under the last contract.
The reason why these payments have been with.
he'd is because we have not technically performed
the service with American built iron ships, but we
have performed 1t satisfactorily with ships OF
another class, and the Attorney General Of the
United states has rendered q decision to
the effect that We entitled to the pay
ments. The present ADMINISTRATION has nothing
to cover up. Whenever called upon we have freely
nlacad books. dQCumenta and naners at dis.