The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-27
PACIFIC MAIL CORRUPTION
SECRETS OF PAST MANAGEMENT
PARTLY DISCLOSED.
Ex-Secrctary Johnson's Testimony in the
suit against Lobbyist KinR-Tbe Settle
mont with ex-Prestdent A. N. toclx we'll

Ex-Secrctary Johnson's Testimony in the
Suit against Lobbyist King settlc-
mont with ex-President A. n. Stockweu.
Mr.. Theodore IT. johnson, ex-Secretarv
Of the Pacific Mail Steamship Company, gave
further testimony yesterday, before MIR. Edwin
NJ Wight, who IL commissioned TO take evil
dence In the suit begun by the CON pany against
Mr.. william s. kingin Minnesota. The previous
testimony had described the payment Of tT50,OOO
by MIR. A. b. Stockwell and Mr.. +. W. @. Bellows,
the President and Vice President In 1872, to Mr.
Richard II. Irwin, for use In buying of Congress
. subsidy for the China line the transfer Of
part Of the money to Mr.. King, then the Post
master OF the House OF Repre- sentatives; and
the falsincation OF the company's books to con-
cea the transaction. The continuation OF the
revelations yesterday gave Glimpses, astonishing
but not satisfying, into the management Of Pa
cinc Mall. The suit against King Is to recover
the money given to him for a corruption fund.
but incidentally the present officers intend to
clear themselves, and fix the sins upon the
shoulders OF their predecessors. Just enough
is revealed to arouse interest and indicate the
truth. without making the subject wholly intel
liRible to tho public.
"were you present, Mr. Johnson" the COM
panys LAWYER. Mr.. Bennett, asked Of the wit
ness. "at an interview between MIR. Sage. who
was at that time President; Mr. renor ". Park,
certain promises were made on behalf OF the
COMPANY upon condition OF the fulhiment of
certain defined obligations made by Mr.. stock
welf"
~ was present at "a meeting of the directors"
was the reply, "at the house OF Mr.. Stockwell,
the interview lasting until O'Clock ia the morn
ing, but Mr. Park was not there"
were YOU present at an interview in which
Mr., stockwelis overdraits were discussed, Mr..
Park taking part Z"
II think the oyerdrafts by Mr. stookwell wero
frequently discussed In meetings OF the direc-
tors: out not Officially, when Mr.. Park was pres
Other answers by Mr.. johnson make tho
following narrative: III remember an agree.
ment between ex-Presidcnt Stockwell aud the
had expired. An agreement in writing had been
made between these parties while he was Pres
ident-in March, 1873, The last agreement was
a contamination Of the first, and his resignation
was Tor the purpose Of making 1t valid. The per-
sons who negotiated the March agreement were
Alexander MastersOn, Geo. L. kingsland. Z. W.
q. Bellows, and Henry Clews. In meeting Mr..
smith said he would not consent to the execu-
In the handwriting Of Mr.. Trenor W. Park, who
was the negoiiaior OF the agreement. lie was
not then a director, but was when the agree
ment was contaminated, and was an adN Ocate OF
II IN the board. lie also appeared to be
well relinquished his office previous to
signlng the paper as the result of
bargain. A part of the bargain was that
Mr.. stockwell should deliver his proxies to
Mr. Park and withdraw from the board. Mr..
Park had been In active NEGOTIATION between Mr.
Stockwell snd the COMPANY. and was aided by
Mr. 5. l.. ". BARLOW. A friendly suit was begun
against Mr. Stockwell 10y the company. afterths
settlement between them. and that litigation
was settled according to an agreement made be-
Tore II commencement. The directors who
voted for the agreement were Messrs Bradbury,
sage, Osborne, scott, Hatch and Alexander. Pre-
viously Mr.. Osborne had opposed 1t, on tho
ground that the company was guaranteeing am
pie security Tor debt Of over million dollars,
and getting what would not probably realize
over four hundred thousand. The negotiations
covered hNe ni.nths. and during that period
Capt. Geo. IL. Bradbury was the President. Mr.
Russell sage participated with Mr.. Park In the
negotiations. aud SO did Mr. Rufus Hatch. The
elly was caused. suppose, by q wait for the
cheap enough BY Mr. Siockwell and mis-
friends. In that time there was very
considerable de line In the price. Mr..
stO,kwcN was frequently In the Office,
ami often consulted with Sir. &c ana Mr.. Park
probably with Mar. Hatch. In the agreement.
as executed. there were certain obligations to
be fulHlled 10y Mr. Stockwell WITHIN a certain
time; and during the pendency Of the agree
nent the discovery Of the appropriation of $15l.-
w Tor lobhyihg was made. l received a ttle-
graphic message from MI. Hatch. ia Washing
ton. directing me not to sure ndcr any lauef- or
tun Of SsJu,OO had been discovered. A dis
charge va, however, given to Mr.. StoCkwcli.
ani MIR. liatch was indignant. Nlr. StuCkweu
mad mai trNatc pcCuutlfy arrangements with
brokers 1rms, some OF whose members were
directors. II was owins to sumo Of these COM
pllcattuus, Thought. that the discharge was de-
HN"ted. ~ order VI Mr. Russell SAGE, President
pro t-u.'
No other testimony was taken yesterday but
to-u Hy " u likely That Mr.. IfcnOr W. Park. MIR.
Eufa, ltatcu and uths - Will hc summoned. Mr..
IaTh Was sem Tor YESTERDAY. hut he sent the ro-
ply thtt ne uti not feel IS ll enough 10 attend.
II u id mad good got tto patch" Mr.. john
son remarked. a. ne quit the room. " lad
ra.ner stsht tnat period IA org - Ia IL than