The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-21
PACIFIC MAIL TROUBLES.


MEETING or THE OPPOSITION pIREcToRs-IHn
DIRECTORS TO DE RESTRAINED FROM ISSUING
MoETGAcE ON THE srEAMsHIPs-MR.
HATCH's COMPLAINT.
-Four opposition directors OF the Pacific Mail Stcau
ship Company held a meeting yesterday at the gen
era Office Of the company, the pier the foot OF
Canal street. North River. half past nine o'clock
A. H., ard adjourned TIL the time next Tuesday
morning. Those present were RUFUS Hatch, James d.
Smith, Captain Riley and George Forrest The absent
ones were sydney Dillon, Jay Gould, G. J. Osborne
G. s. Scott who is in Europe, and oliver Ames, OF
Boston. The opposition directors, who consist Of tho
persons mentioned present. Is said have control
OF the majority OF the stock and determined
make the other members OF the Board OF Di-
rectors responsible for any default that may occur
the annual election for want Of proper appoint
of inspectors Tho following is the clause OF Tho
bylaws that they stand on:
l. The election OF directors shall held in the city
OF New York the last Wednesday OF May, annually,
the polls 10 be opened at noon aud continue open
Tor two hours. The Board OF Directors, az tho
monthly meeting next preceding an election, shalt
choose three shareholders 10 act AS inspectors OF the
election.
1t is tho intention of Mr. Rufus Hatch TO sock
strain the directors from issuing the mortgage Of
S. 600 900 on the steamships tho company, they
resolved to do at their meeting held the lssh OF lass
PENDANTS late Saturday afternoon. Below will bo
found summary Of Mr. Hatch's complaints
sets forth that tho Pacific Mail Steamship CON-
pany tho defendant, Is boiy corporate and
polite created in lSiS; that said corporation
tabshcd for the purpose of ansacng the business oil
steamship company in the transportation convey.
ing Of freight and passengers upon vessels boz
the city OF New York and the lshmus of Panama
tho Atlantic Ocean and between said sthmus and
San Francisco and between San Francisco and Japan
and Chinu and other foreign countries places and
for carrying the mails tho United States and other
governments, which said business II has pursued for
many years past and IL has been very profitable bus-
ness that the capital stock OF said company
OF 200 900 shares OF 500 each, and tho plaintiff
and holder OF 100 shares of said capital stock that
tho control OF said corporation - vested in
Board OF Directors consisting Of the fol-
lowing defendants:-Sdney Dillon, President; Jay
Could James ID. smith, Charles J. Osborne John
Riley, George Forrest, Oliver Amcs George $. Scott
and this plaintiff whose term or Office expires tho
3lst inst That the bylaws defendant company
require meeting Of the shall DO
held the third Wednesday Of each month; that
jory of the directors shall be necessary TO form quo
rum for the transaction OF business; that at monthly
meeting next preceding an election The directors shall
choose three shareholders 70 act as inspectors OF Tho
election that the election shall be held In the city Of
New York on the last Wednesday OF May annually.
That the stated meeting for the current month Of May
three O'Clock r. NJ. said nth OF May, the time for
which said meeting was called there present only
the following directors: --Gcorge Forrest John Riley
Rufus Hatch and James u. Smith, and there being no
quorum present the meeting was adjourned until thu
18th Of May at nine A. ~, at which meeting tho Same
directors present and adjournment then nd
to the 18th of May, at which time quorum again
wanting and an adjournment was again had till tho 10th
DEFENDANTS DILLON GOULD Axp OSBORNE
In tho city Of New York at tho time Of hold
ing said meeting adjournents thereof as above
duties directors, have been present. but the plain
till is informed and believes and purposcly
and In consion with each other absented themselves
therelrom with the intent and for tho purpose OF pre-
venting the OF inspectors OF election to 10
held the 3lst OF May ns and TO prevent tho
action ofany other business Of said company That az
said adjourned meeting TO be held tho 10th Of May,
plaintiff had prepared resolution to be offered
structing tho attorney Of said company take the
TO set aside anu vacatc tho mortgage
bills OF sale and bonds hereinafter set forth. That
Oliver Ames resides in Boston and George s. Scott
at the time mentioned absent in Europe
The complaint further alleges that on or about tho
18Th of March 1876 tho entire indebtedness OF tho
Pacific Maj Steamship Company did not exceed tho
sum Of 81 100 900 large part OF which was owing 70
the Panama Railroad Company, which became duo 70
SAID railroad company IN consequences Of certain
tracts existing between the two companies Tor tho
transaction oil the business OF CARRYING freight and pas
sengcrs between the ports Of New York Fran
respectively; and other portions Of amount
owing upon bills payable becoming due al various
intervals between said date and January /, 1877,
That at meeting Of the Board OF Directors Of said
defendant corporation, held March Is 1916 tho dcen-
dants the directors passed resolution authorizing
the President OF said corporation to issue coupon bonds
70 40 aor ~ ~ rass ~ s wsn
per annum and the principal TO be paid IN equal
nual instaments Of $500 000 The last Of which should
be paid March, 1856, and TO the payment Of
said coupon bonds bills OF sale 20 trustees appointed
for that purpose by the said President Of such OF the
steamships Of SAID company as the said President
should select That this plaintiff present at the
said meeting and protested and voted against tho pass
age Of the resolution being entirely unnecessary
for the protection OF sad company being be-
yond the power Of the said Board of Directors OF
company make That the said defendants still
control Of dcfondant corporation form-
ing, with this plaintiff its Board OF Directors That
March l3, 1876, tho defendant corpRation made ~
certain indcntnre OF mortgage, dated upon said day,
which said corporation described the party or
first part aud the defendants, Benjamin y. Ham ant
Stephen " White, descr.b parties Of the SEQ
part, trustees, by which said indcnturc the said
corporation sold transferred and set said
trustees all the following Steamships then bo
ing property OF corporation or in pos
session Of said company TO witCoon Acapulco, Ora
nas CIV vy Cy %
Toxic, security for tho payment of the said
$1,000 ooo in coupon bonds aforcsad and, at the
time the said corporation executed and delivered to
said defendants Ham and White, bills Of sale Of cncn
OF SAID steamships thus vestng the title said vessels
In the said deicndnnts Ham aud White, plaintiff Is
informed and believes
The plaintiff further shows that said bonds have been
executed and prepared by defendants and that
1881 OF them have been issued That said bonds
have not been
ISSUED TO BosA yrpE CREDITORS
TO secure bond de debts oil the SAID corporation but
the said bonds tho contrary thereof issued
for the purpose OF securing debts created aftor the
OF said bonds. and for the further fraudulent
rupt and wicked purposes hereinafter set forth. That
the doIcndants Sidney Dillon and Jay Gould, are
largely interested thu Union Pacific Railroad Com
pany and that their interest Is 10 destroy bust
ness, stock, assets AMI property OF the Pacific Mail
with other OF tho defendants, have obained control Of
SAID defendant corporation for the purpose Of destroy.
ing It's stock, sc, in order that all opposition IN the
business Of carrying passengers between tho Atlantic
aud Pacific States the said Union Pacific Railroad
Company may be forever destroyed.
And the plaintiff further charges on Information and
belief that the mortgage created 10 the
aforesaid design and that It's conditions Tho taking
into possession by the trustees or the company the
steamships mentioned were for that purpose, Also with
deliberate intention that default should DO made 10
of the conditions and the
and dispose OF them at forced the destruction
of the business and property OF the defendants rum
other stockholders the said Jay oud and Sid