The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-01-26
PACIFIC MAIL LOBBYING.
THE FACTS OF THE SUBSIDY COR
RUPTION EXPOSED.
The Compnny'r suit Against william =. King,
ex-POstmaster of the House Of Representa-
tivcs-The Checks for s75O.OOO Paid.

RUPTION EXPOSED.
The Company'p suit Against william =. King,
ex-POstmaster of the n ousc Of X cprescnta-
tivcs-The Checks for s7JO.OOO Paid.
The alleged use of $4,000 for Washing
ton lobbying ia behalf OF subsidy for the Pa
cnc Mail Company in 1872 Is brought TO public
notice again 10y the company's suit against W IL
liam s. King, ex.Postma ter Of the House Of
Representatives. The action was commenced
In Minnesota, In which State King lives, and Is
Intended by the present managers to result In
the recovery OF the money either disbursed In
corruptine Congress or retained by the defe nd
ant. The plaintiff says that the money Wee sp-
proprated without the knowledge OF most OF
tho directors, and the defendant AYERS that such
Is not the fact.
Testimony was taken in this city yesterday
before Mr.. +. W. Wight, Notary Public. The
money had, by previous testimony, been traced
TO Kings possession In this way ; Mr.. r. W. q.
Bellows, vice-Presidcnt Of the Pacific Mail
Company In 1872, wrote to Mr.. Richard II. Irwin,
tho agent In san Francisco, TO come to New
York and report what he had done regard ny a
subsidy for tho China line. Irwin came. and
spent several subsequent months here ana In
Washington. Checks for SIJO,0O were given to
American Exchange National Bank for pay
ment. King was then with him, and to King On
the following dav the moneywas paid.
Thomas Ellis, note teller OF the National Park
Bank, the first Of Yesterdays Witnesses testified
that King deposited In that bank IN May, 1872
ell2,OO and that Of the sum $4,000 was placed
to the credit ~ the state Bank OF Minneapolis,
$1,00D to the First National Bank OF st. Paul,
$l5.OOO paid an overdue note, aud the rest was
drawn on certificates OF deposit for various
amounts.
MIR. Theodore T. johnson, ex-secretary Of the
Pacific Mail COMPANY, testified that In Nav,
1872, he drew six checks In favor OF Irwin agRre-
RatinR t75OWO. His further testimony, In re-
Mr. Henry :. Bennett for the plaintiff, and Mr..
John Noble Goodwin for the defendant-was as
follows:
motion Was offered by o. p. c. billings in . diree-
tors meeting authorizing President stockwcil to Incur
eHpense N Washngton. Inc cnechs anu Their cennee
the duty Of the Treasurer 70 know for wus
e h sS o nv seI esss
ny for signing check for any amount: An entry Of
cePresideni, ~ usually made in the margin OF the
hse5 6ogs MIN reference to these Sheek du Iss s
charged The original checks had been issued to the
After destroying original checks by order OF Vice
President Bellows ana craving the cheeks OF the same
account they should be entered. Mr Bellows replied.
entry the ' Margins w BE ts you Tie prom.
sea wss % ysn Sy Mr. ISoTs
hSdsS Sss9i i san I'm aa ne
these entries did not Know hut have since learned.
that tins was SAID for the purpose OF misleading re a.
SNOW Of any other entries Of that traasacon IN any
other books than the check book. discovered mat
money when the matter was brought into court saw
Irwin IN the office on or about the day on which tue
checks drawn. Mr.. stockwell and had no con
yerration ABOUT what entries shOuld be mace TO &C
count for this disburse The Board of Directors
In tat period met monthly. generally and tue \. H
80 1879 Tine auditing committee met Dec. 49, 1873,
aud present when they presented their report 70
money not sugg eeted or discussed. | know ~ u
fact that the expenditure purpoeey concealed 10y
Mr.. stocsweil aud Sir. Bellows from The board, aud
made were part Of pan to cotc al he knewiecsc
from ether Ulcers and directors In transactng the
business OF this company. the system used - guard
against such false enttles these was this The by.
laws provided tor aud ting committee OF the Presi.
dent aud three directors appointed every three months,
have before them all securities OF every nature and
kind TO compare with the accounts am verify them
and to m he full written report 70 the board. All
bills for things purchased we're required 20 be examined
IS Cltrk Tie uuryeyor who made the purchases Was
required TO certify to the quantities ana prces. All
the Nc. President anu by the treasurer he President
Vlce-P esident was required 10 put hs initials On
every bill, draft. or contract for which he Signed a
check. AZ expert accountant should say that. had
the auditing committee properly performed It's duty II
have erred the fAlsts Of these entries
collateral for the am unit Of loan represented ~ the
entries TO h.ve been made the committee should have
the same Us IN the margin " the check books.
had uperveiOn u the accounts Ia the cash book
subs guently, the t5o9Vg Wa, mentioned; thout I
panalun. by order Of the NlcePF slteAt Tue account
| OF the san Francisco sguACy were adjusted ever,
month. aud vouchers were required for every dollar
lhe accounts Of tue agency SUBMITTED to tue audiii.
ascucy received 10 such money.
Mr.. johnson also swore that In December, 1872
n claim was made against Mr. StOckwell for 81,
! Vptu, which lac said he had expended in Wash
| ingtOn.
Other ex-oflcers of the company will testlf,
! to-day