The New York herald., 1876-01-26

4b 000 No 2552 for IL $40 III these constituted the
whole Of witness transactions with Mr.. King; the
several certificates Of deposit subsequently back
70 the bank and were paid each OF them bore tho
inaorseme1t oi MT King witness compiled WITH the
when previously at the bank Nj King did not mention
his expectation Of receiving money and previous TO
witness his intention OF SO doing Mr. King had previous
fy had transactions with the pnrk Bank witness did
not ask or receive an explanation Of the unusually large
transactions OF May 90 1872 and the manner in which
Mr. KING proposed to distribute r.; the cashier, Mr..
James L. Worth If witness remembered Alright brought
M King 10 him on tnat day, and that was sufficient
for witness to act upon witness knew OF precautions
taken so as to ascertain whether the proposed dstrou
ton OF the money was bona sdc The witness was not
Mr.. Theodore T. Johnson former secretary OF the
Pacific Mail Company, recalled. He testned that
the Auditing Committee of the Pacific Mail company
IN 1872 were r. g. Ralston, George j. kngsDDd ana
Henry Clews; the next report OF the Auditing Com
mtec after May, 1872 December IL OF the same
year the witness read the report, which Was received
In evidence, and in which the Auditing Committee
recommended more care in the making OF loans ana
in the taking OF collateral security; OF the checks
previously alluded to $3.50 600 appeared in the books
In the OF the San Francisco agency witness
remembered no settlement made with Mr. Stockwel OF
claims demands having reference to the amount or
these checks; there settlement or claim against
Mr. StocKwe for the cost OF repairs OF certain steam
shps purchased Of him seaworby, but found alter
ward to be unseawor,hy and for certain notes OF the
Howe Machine Company received in prior settlement
OF claim for 600, being the amount OF the in
vestments OF the company in Panama Railroad stock,
delivered 20 him by the Vice President Mr. Francis
W. g. Bellows, to enable him TO carry about IL 600
shares OF Pacific Mail stock which he had reported TO
the Board as being sold at par paying the money for
the same and afterward claiming that the stock had
not boon sold but still in the hands Of his brokers'
Mr Bennett-Heads win, tails you lose Y
Witness laughingl-Yes he expected TO get $l25 for
H. remember no other settlement by Mr. stockwelL
but claim of about 81 COO COO has also been made by
the company upon him for money expended by him at
Washington In obtaining the subsidy without the au
thorty of tho Board of Directors for such expenditure
that claim first made against Mr. Stockwcll wit
ness thought, in December, 1872; Mr.. Stockwe was
that time in the country there was no action OF
the Board OF Directors the matter at that time; u
some time after; the settlement with stockweii
was made in August 1873; after the fuhlment OF his
agreement under that settlement In the following NO
vember. witness thought Stockwei was discharged
from all claims against the Howe Machine Company's
notes and expenditures for repairs OF steamships; Mr.
Stockwel while President Of the Pacific Mail Company
did not borrow any money in his own name II was the
custom OF the company TO make loans on security when
they had large balances; no such loans were ever
made TO Stockwel; witness stated that as Act
ing Treasurer he had authority to inquire into
the matter Of the checks nasmuch as he was obliged
to obey orders given him by the Vice President; he
subsequently discovered that the entries given to him.
and which he made at the time, misleading as to
the purpose for which the checks were issued.
The examination was then adjourned