The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-29
PACIFIC MAIL MYSTERIES.
MIR. JOHNSON Tells SOME THIN0s
That MIR. HiTCH DIDN'T.
A Charge TINT EN-Prerident StockwcII and |
OTHERS Made 5000. 600 TrrcVuIariy-R
citations Incidental tn Tho Il inc Sui,

Charge TINT EN-Prerident StockweiI and
OTHERS Made 5000, 900 frrcVulariy-Rev-
citations Incidental to the King suit.
The Pacific Mail Company's suit against
William g. King continues to disclose interest.
ing facts In relation To the former Management
Further testimony was given yesterday before
Commissioner Edwin w. Wight, by ex- Secretary
Theodore r. johnson, revealing the facts which
the persistent questioning OF MIR. Rufus II atch
on Thursday bad failed To elicit Mr.. Johnson's
testimony bore upon the following transactions {;
The company had claim of about 100000
against MIR. A. II. stockwell at the time OF his
retirement from the presidency. The company
held, a. security, notes OF the Howe Machine
Company, secured by mortgages upon property
In Bridgeport A written agreement was made
by the terms Of which the company was To sur
render the notes and mortgages and receive, in
stead, In fun satisfaction Of the claim, ten thou
sand shares OF the oompany's stock. worth
at that time about 100000. This agreement
was carried out. The stock was to be
delivered In stated amounts within seven
months but before the time had expired, and
In consequence, 1t is alleged, Of the exposure Of
the subsidy lobbying In Washington at cost Of
t75O,OOO, Mr. Stockwell made haste to CONSUME
mate the delivery before he was required to, in
order to secure release from the company of
all claims against him. Mr. Russell sage was
then acting as President and Mr.. Rufus Hatch
and MIR. George n scott directors we're i'm
WASHINGTON. Secretary johnson wrote to Mr..
Hatch telling them Of the FASTENED delivery Of
the stock, and received a telegraphed order not
had been discovered. Mr.. Sage, however,
peremptorily ordered the delivery Of release,
ana Mr.. johnson ODeyed. The stock certificates
were gwen by Mr.. Stockwell to MIR. Sage person-
ally; but subsequently committee was ap-
sold within few months to various brokers.
MIR. Johnson's testimony was as follows, under
the questioning OF Lawyer Bennett:
Q-Who were prominent iu cancelling the nrst agree.
provided for a surrender OF the securities? A.Mr,
huss,l sage was the most prominent. and next Mr..
directors Mr. stockweii aicrward accepted person.
al0 by any Director Al DO not know. -,
do}oa remember what vas saId or done bv Mr.. Hatch
o.-DId they no. charge that u wa. corrupt bargain
@ sS'a Ss re 1H AI aesS 'TS pSs
specuations in stock his pu,s ana calls and Tor sens
;SS, SS' DC W., Inc sIdsni
results Ms Sage dld resis1 nc Pfssids9ey:
that unless a Sage and M iraSor u faTf rasne
INDUCED delivery Of the release to Mr. stocKwcnp
Q-And Mr. Sage an resign7 Ale did
g sgoseqgeni did not Mr. Hatch ana Mr. Scott re-
peatdY request the board o. authorize them to pro-
OF tni. money? A~-ihey adj ''' '"e '''o''''
Q-Dld not the board refuse' A.-They took no
o.-was check drawn by the Pana ms Railroad Com.
IN meeting " thc pacinc Mall board2 Ayes; a
@ a,Did Mr.. Hatch demand authority to collect it1
Q-wa. successful attempt made to charge that
eheck 90 the Pacnc Man Company? A.-Therc was.
M ss e' as oa on ,as ne o2 r,so rs com
piny.
Q-was not Mr.. parE, director in the Panama Rail.
not the qqssISn s,ise whether the Panama
Mr. strkvell. should lose that money? At aid.
claim against Sir. stockWen' X.-fes u that and
q. What position DID Mr.. PArk hold at that time in
he Panama Railroad Company Ale was rresI.
o-Did not MIR. Hatch say to his fellow directors
~ gnarantre ne S9ll.ston Of That ehecz from NJ.
slock"eh " Jou Viii give me the authority Ale
CD, you know whether or not 1t still stands
Q.-was not charged after the delivery Of the re.
which Nj sage and Mr. fsrk were Present that some
Of the directors received 100000 for that
%ws' not &c @e,ncd BY WHICH that
Gr,sor pointed oS Al DO not reeoect tast the
e eSq ps le she Shi bs e MAS nSs
made nsains, hln2 Al d0 not rcmemoer.
the Howe Macnlne Company aud the mortgages he
S ts rss1s Ms C % a. 'eSSr Tor s!9es
aud myself to Mr. stoc&se in the once u 5. L. g.
Q. Thereafter into whose possession did they so ?
.. Was Trencr W Park IN the city' Al do not
Y -suhsequert to the indignation meetings Of the
board thAt Followed, dd not reconciliation take place
between Messrs. Hatch, Sage, aud Pirk2 Ayes.
,Q'-Did Mr. ParA resign shortly thereafter? Ale
Q.-Atter the RESIGNATION ~ Mr.. Sage did Mr.. Hatch
anu Mr. scott press the necessity of prosecuting the
claim against Mr.. StockScl2 A-They did.
Q.-Mh0 else atvocttel ~ AIR. Francis Alex.
amer Mr.. James e.. smith, and Mr. Charles Osborne.
that 1t would Dc bad fiith.
Mr. Park had been again summoned to attend
as witness. and again he sent the message that
he was III. lie suggested. through his attorney.
that his testimony might be taken at home, but
neither MIR. Goodwin nor Mr. Bennett. the OPP
posing lawyers, would assent to that PROPOSE
ton. Thereupon the attorney said that Mr..
II itch dropped In, but he would not promise to
and therefore ne was not put on the stand.
" Ask ne some easy questions aud will answer
them" he said, iocosely.
The uertnency Of MIR. Johnsons testimony In
the suit against King Is tins A part Of the $151,-
90 drawn from the Pacific Mail Company's trea-
sury for the corruption OF Congress has been
clearly traced to Kings possession, and the suit
Is instituted by the incumbent management to
recover II. This transaction with King was
while Mr.. Stockwell was President, and, as al
legged by his direction. II Mr.. King can prove
that the company gave Mr.. Stockweil release
from all its claims against him, including this
expenditure for lobbying, that will he urged as
"A har to the recovery Of the money from any
body. The company seeks to show that the de-
livery to StOckwell OF release was corrupt
Transaction, ana not sanctioned by most Of the
directors.