The New York herald., 1875-01-03
PACIFIC MAIL.
The Sub Committee Conclude Their Business in
New York and Adjourn to Washington.
MR. HENRY CLEWS ON THE STAND.

ana means was raCner uutnterestlnR, 66 no very
startling evidence was elected The session was
only held In order to conclude any unfinished bust
pess that there might be left and give any OF the
witnesses that had testified during the week an
opportunity OF correcting or revising their test-
mony.
= The committee were represented by Mr.. Bur-
Chard and Mr.. Kasson and Mr.. Rufus Hatch was
also present, looking after the interests OF the
Pacific Mail steamship Company. The testimony
OF Mr.. Henry Clews merely corroborated the evil
nence derived from other Witnesses showing that
the Board OF Di ectors had no personal
or ofncal knowledge OF the dongs OF Mr..
Stockwell In regard to the disbursements
he made In connection with the subsidy. Mr..
Laidlaw. the successor to the business OF Lees
& Waller, proved that the check tor $14.5oO that
they deposited IN the Bank OF America came from
Richard b. Irwin, at Washington, and read some
letters on the subject. The testimony Of Mr..
Phelps. the second Vice President OF the Pacific
Mail Steamship Company, proved that Mr.. Irwin
came to Mr.. Maclesn shortly after he lailed to OBJ
tain the subsidy at the second session OF Con-
gress, and said that they would have to spend
halt q million In order to obtain it. The mat
ter was brought up before the Board OF Directors,
but voted down. MIR. Phelps also repeated con-
versation he had with Mr. StOckwell IN August or
September. 1873, in which the latter stated that,
as there was going to be Congressional investi.
CATION he would have to send Irwin out of the
country.
The committee did not get to work until after
eleven A. NJ, and, as Mr.. Burchard was absent,
MIR. Kasson had to send for notary TO swear Mr..
Clews, the first witness
Mr.. Henry Clews the banker, was the first
witness sworn. He sald:-I was director OF the
Pacific Mail steamship Company in 1872; believe
/ was in Office during the who,e OF the year; I
Twas q director IN February, 1872; was not a
member OF the Executive Committee; was not
present at meeting of the Executive Committee
held In February 1872; do not remember any
resolution coming up for thes approval OF the d.
rectors giving power to the President Of the COM
panY to expend money to assist the
PASSAGE OF THE SUBSIDY;
had no idea of the extent Of the expenditure
until after the subsidy was obtained; 1 had no
personal knowledge at all OF any expenses in
Cured for the subsidy; do not think any of the
directors were aware Of 1t; IN fact, think it was
carefully concealed from them; believe l was
member of the Auditing Committee prior to the
granting OF the subsidy; do not remember any
expenses in Washington ever being brought
before the Auditing Cnomirtee for settle
ment; heard nothing about the
expenses incurred in washington until the close
OF 1872; at that time discovery was made Of
some TIRE guarities that were a1terward traced
to connection with the subsidy; Mr.. Stockwell
remained In the Board until his term expired !;
am not aware that be resigned; Mr.. Stockwell
made no explanation about these
DOUBTFUL ACCOUNTS;
the Boa rd's attention wal especially drawn to a
transaction IN connection with large amount OF
stock Of the Panama Railroad Company that
was alleged to have been improperly ap
ted nv Mr.
at all was brought to- the Board OF Directors
about the expenditures that were being incurred,
she slishtest idea OF what was going on; do not
believe any director was individually aware OF any
irregularities IN the transaction OF the business OF
Le Grand Lockwood then testined:-In 1872 1
the name o LocSwood @ co.. early neSs IN ,s9a aae my
father was director OF Pacific Mail; he was
elected In November, 1871, and remained in office
until MS death, on February 81, 1872; my father
was chairman Of the Executive Committee
and was present At al their meetings
father told NE snort time before his death that
deal Of money IN WASHINGTON to assist the passage
BILLINGS wished II distinctly understood that they
would "a Gve no support supp 70 such proceeding; we
an connection with the subsidy, as Mr.. Stockwel
had 80 sta.ed wnen on the stand in connec-
tion Of my books credit OF 100000 to an
account called "change," and correspond.
Tor the amount to the Pacific Mail Steamship
company; have not seen the check, SO l could
pany or to Mr. stockwen; there is another Item Of
that amount on the same day: believe that the
$500 goo entry have explained is the 5000 600 that
Mr. RUFUS Hatch then stated The only entry Of
was the proceeds OF the sale of 1000 shares
-o Panama; there was no trace OF any check for
that amount that came from Lockwood.
MI. Henry b. Laidlaw was then sworn and
stated IL was memDer of the firm of Lees Is
February. rp-
ceipt OF check from Richard b. Irwin, sent from
him In Washington; also found some letters that
had direct connection with the transaction; |
shall read them to the committee
THE LETTERS
Mes.rs LEES ' snnfSe New YorR Feb % 1872
DEAn sIRs-Wha win be the cost IN currency of your
send Tor same With remittance ealaiey on receipt
of your reply Truly yours, RICHARD B. IRWIN.
n.. lsss S1 'v snHHE' WASHINGTON Feb 90 1872
TsAR siRs-Lnclosed please lnd check for sl.5oO for
Caos ver Of wa s On con oas and ID
spseu Tor Inc Gas re-
WASHINGTON, Feb. Is, 1872
Yours of The 27th, with encosuxe, to hand this
morning With thanks very truly Ef5Inkp 5tEprS IRWIN
Mr. LaidIaw was then questioned by Mr.. Bur-
chard and stated:- 81 did find any other letters
transaction with Mr.. Irwin; / presume we drew
the draft and sent 1t to Mr.. Irwin in washington;
do not come back to us; suppose the draft is in
the possession OF the Bank Oi California.
Mr.. Hatch then called the attention OF the COM
mtttee to an anonymous communication In the
Times ana requested to De examined In regard to
1t. Mr. kasson said that the committee had de-
cided to give Mr.. Hatch the privilege OF appearing
IN Washington alter Mr.. Irwin's testimony was all
taken, and that then he should be examined on
any point ne might desire. The committee have
taken no notice Of anonymous communications
and did not think It necessary TO bring the matter
up now. The committee then adjourned until half
past one O'Clock p. M.
1t was nearly two O'Clock before business was
resumed. The first witness sworn was Mr.. s. L.
Phelps, who stated IL was second Vice President
OF the Pacific Mail Steamship Company in por-
zion Of 1872; entered the service OF the cocipany
In 1884 and remained until 1873: was not a men,
Der OF the Executive Committee; my duties were
especially confined TO the China line; was gen.
eral
INSPECTOR AND SUPERINTENDENT
OF th8t department.; the agents reported through
me; Office had to critcise their accounts; the
accounts sent from the san Francisco agency
had nothing whatever to 90 with me; my business
was entirely with the Eastern agency in China