The New York herald., 1876-02-01
The Pacific Mail Steamship COmpany's
Suit Against King.
THAT FAMOUS $4,000 CHECK.
A BOokkeeper's Story of How the
Books Were Kept.
Legal Difficulties Of the Long Island
Railroad Companies.

The suit OF the Pacific Mail Steamship Company
against William S. King was continued yesterday De-
fore Edwin N. Dwight Commissioner, the plain
ts and defendant being represented respectively by
Mr. Henry s. Bennett and Mr.. John N. Goodwin. Mr..
H. T. Merrill was called and testified. He said
that he was by occupation bookkeeper and had been
bookkeeper for ten years. he was at present in tho
employ OF the Pacific Mail Steamship Company, and
had been for two years past he before the Con-
grossional Committee and had investigated the books
OF the Pacific Mail Steamship Company for that
nuittee; he was familiar with the entries ON those
books and not acquainted with Stockwell
Mr. Merrill then asked II he had the origI-
nal Of check OF which a photograph was produced
The following is copy of the photographed check
.:
OFFICE PAsAIA RAnRoAD coMrASY,l 5
g. NEW YORK sept 2l, 1872 ;
$LKATnEa MASUrAcrURxRs' NATIONAL BANK
Pay to the order Of A. b. stockwell si3O5sI 90
B. PANAMA RAILROAD COMPANY
$by, Henry Smith, President; +. W. s. Bellows, Vice
This check was indorsed "a ,. Stookwell, and i'm
nodiately underneath "L. 4 Co."
Mr.. Merrill said that he took the ia & CT for Lock
wood Co., which was probably put on by the cashier
OF the bank.
Mr.. Bennett-Is this check described on the books
Mr.. Merrill-No sir there is no entry to show that
1t ever reached the Pacific Mail steamship Company
Witness further testified that there was another
check drawn on September 2I, 1872 to The order
OF the Panama Railroad Company for $3.50 00O signed
by Henry Smith, President, and +. W. s. Bellows, Vice
President Pacific Mail Steamship Company, and In
dorsed by Panama Railroad Company on the books or
the Pacific Mail Company, September 2l, 1872, this is
charged TO Panama Railroad Company ON account Of
Mr. Bennett-Did you see an account on the books
for $4,000, rendered on September 20 1872, to the
Pacific Mail Company?
Mr. Merrill did,
Mr. Bennett-What checks were paid by Pacific Mail
Company to Panama Railroad Company for coal and
supplies about that timer
Mr. Merril-On September 90 1872 for S3S 800 "a;
September 81 1877. for $3.50 900 and on October 81
1872, for $74,s9S IS; about tho period the
Panama Railroad Company rendered check to Pacific
Mail Company for $74 2e6 SO for two bills, one for
$40 T72 96 and another for 424 93 on October 81
1872 check for 1851 80 received TO make up the
difference between the $3.50 900 check ndorsed Stock
we'll and the other check indorsed Panama Railroad
Company; on October 81 1872, there was charged to
the account of outfits and supplies $lS4,226 %.
Mr Bennett-That was the actual amount due the
Pacific Railroad Company
Mr. Merril-The amount actually due was S74 $50.
The overpayment was made to cover up false entry
OF $l3O 600 placed to account of coal and stores.
Mr. Bennett-Who was President when these entries
were nader
Mr. Merrll-Mr stockwell was President. and tho
entries made by Mr. Roundy, who
countant for the company he left in September 1873
and in in January, 1874 first discovered these
were really first discovered by in the Panama
Railroad Company; Mr. Hatch heard of 1t and he
wanted us to look 1t up
Mr.. Bonnet Under whose administration was Mr..
Roundy employedi
Mr.. Merrill think under Mr.. McLean's; when he
left Mr. Bradbury or Mr. Hatch, am not sure which,
was IN charge.
Mr. Bennett-That was the total of the overpay-
msnt 10 the Panama Railroad Company?
Mr.. Merril--It was $l6l, ,S54 SO. and it has never
been returned
Mr. Goodw n-would you make false entry at the
Command OF your superior officer
Mr.: Merrill-No, sir no more than would steal II l
ordered.
Mr.. Goodwin-well, 1T is pralseworthy principle on
your part but many accountants think that they are
excused from personal crminay II so ordered.
Mr.. Bennett-Was Mr. Park director OF the Panama
Railroad Company and the Pacific Mail Steamship Com
pany when these entries nader
Mr.. Merrill-I believe he was.
Mr.. H. H. Bagster was then called, but that gentle
not being present further hearing in the case was
adinurned TIL this morning a o,clock