The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-11
PACIFIC NAIL DISCLOSURES.
4 LIVELY EXAMINATION BEFORn
COMMISSIONER WIGHr
Tho THE. thu. were Told by tho s,ss- q ,ss


Tho Tales TINT were Told by tho stub- ef ,ss
Grent Steamship Companv's Check book
Two Millions for One Firm Of Brokers.
In the Pacific Mail investigation yester~
day rich vein was opened. Theodore r. John
son, ex Secretary and acting Treasurer OF the
Pacific NJ II Steamship Company, and Samuel J.
Hanlott, OF Harriott h Noyes, who were the
principal brokers in Stock wells speculations In
Pacific Mail, were examined. The situation bor-
dcred on tho dramatic, especially when. after
Mr.. t.arrioits inability TO rcmointe er from
whom' TO wnat extent. or for what purpose,
checks OF the Pacific Mail Steamship CONT pany
had been received by this firm. Mr.. johnson
produced check book, whose stubs showed
over S2OO).OOO drawn to the order OF Harfiott q
Noyes during three months OF 1879 alone. Mr..
Iohnson's testimony was "a follows:
Wnlle % s was Secretary and acting Treasurer
tifcn. not \. - stocswcll ar y. W q. Bclows in
favor O, 'i'rrioit 4 Moves. and ,ssrged to loan so
co.o H.. o,l ssaer'y called f9r - checks bling
Moves rendered n, st,iees for tho company to M,
onsy s@@ eS @ c to & 5r spceaS.. t ~.
putoosos There was no .'mcisi inquiry male ~ the
large sums but informally the nhject was commented
Ia, irqcors we're i1,cresod IN large amount of
rscnc Mail stock being carried at lia,Flou Noyess
Mr.. Johnson's answer as to what created such
an understanding was u Grst confused, tut n
another form the question ellcitci the response
that II was because, after directors came In and
conferred with StOcxwell aud Bellows, loans
were issued Alex. Masteitgn was one Of these
directors. At certain meeting OF the directors,
which Russell Sage, Rufus Hatch, Irenor W.
Park, and others attended, some charges were
made Involving bad faith on the part Of Mr..
5tockweH In compliance with their request,
these nroceedinas were not recorded.
Mr.. samuel J. lIsutott, of lIairiOtt n Moves,
took the At. nd. lie said that be had large trans
ACTIONS with A. ~ Stpckw II in 1871 end 1873.
lie could not recolect how many checks he re-
Ceived that had been issued by the Pacific Mail
steam hiu Company, nor to what accounts they
were credited; There was 2 pool then IN tho
stock, but he did not know whether any of these
checks were credited TO the pool account lie
believed that the only checks ho received from
tue Pacific Mail steamship Jmpany were credit
ed to the loan account; but he lid not know
whether the nrm furnished coil teral security
for all the checks. lie did not know whethes
any other directcr was assOcia' ed with Stock
MIR. Beineit, the counsel for the mpann
spoke sharply OF the witness's subterfuges and
ambiguous answers.
MIR. HprrIott roplei that It was unfair and un.
Just 10 compel him to parade his business and
that Of his customers.
MIR. Bennett responded that It was unfair and
unjust To re the Pacilc Mail steamship Com<
panls money.
Mr.. Bennett, in relation to something that the
witness had said. returted q" Yes, 1t must bs
unpleasant TO parade people who were operating
with other peoples money"
Mr.. narriott-Wh hat do you mean TO insinuatef
9f. Bennett To the tommssiOner-Ihe courts
have been dehed long enough. 1t Is evident the
directors are In league to cover this thing up.
! an entitled to know the names of all men do-
lny business IN Mr.. HarTiOtts office at that time.
leave this witness Ia your hands.
Mr Harrutt At Length admitted that Mr.. Bit
lngs kept an account with him md operated n
Psctfc Mail with Stockwe.
Mr. Bennett-Did Alex Masterton2
Mr. HarriOtt-I think not.
Mr. Rrnnett-Henry II. Bagster1
MIR. Hsrrott-I think not.
Mr. Bennett-'frenor w. Parkt
Mr.. Harriott-I don't know.
Mr.. Bennett-F. w. u. Bellowst
Mr.. Hnrriott-NO.
Mr.. Harriott promised to produce bis boom
to day.
Mr.. johnson was recalled. The check books
OF ihs Pacific Mail steamship Company were
handed to MIN, and he read OF from the stubs
the following amounts drawn to the order II
llarriutt Noycs in lS12 March 9th, S3ls.OO0t
lith. $1C0tOl; 18Th. sltNpD; 18Th. $500: 10Th.
eight checks for t2i,0Do, $i0,lO, $eOO,OO se0OO0,
$,O.UO stS,,42,t2, $l4.10g;}S, and SBH!5; Aprtl
llth, S20Wo aud S6.0U l6th. ohecks foI
%oAr, $4,000, $3.50 0, $ll255o rs 18th, checks
for $3.50 and $4,000; 10Th. chccks Tor $1ss-
81 80 and Sl76.s q; May To- S.l05S7i 18th, $2OI,-
Az 70; 2lst, $ss,75s3 and t2ll5. witness identl-
ned the handwriting in which the checks wera
drawn as that uf Charles s. Ahercrom lie, Henry
Smith, and Charles Lyman. At this time the CO.
directors With Stockwell were Alexander Mas
terton, II. H. liag>ter, Henry Clews, james ID.
smith, %. j. e. Billings, Charles j Osborn Le-
grand Lockwood. ana l.. &. Taylor. StockwoI
was l'res ident Of the Panama Railroad then a.
well az Presid Of the Pacific Mail Steamship
Company.
Are YOU most through with me2" Inquired
Mr.. Johnson ns he arose to 20.
-" Bless you, no! only Just commenced" saiA
Nr. Bennett.