The New York herald., 1876-10-11
PACIFIC NAIL.

APPLYING rHn NEW DocTRINE RELATING 70
THE PERSONAL RESPONSIBILITY OF DIRxc-
Toas-A SUIT TO BE INSTITUTED TO RxCov1H
NEARLY TWO MILLION DOLLARS FOE THI
coMPANY's TREASURY.
Tho various rumors, substantial and otherwise, IN
relation the Pacific Natl Steamship Company, which
havo been floating the financial for several days
past will cause some facts relation to the matter
be Of interest 10 the public generally well those
more i'm mmediately and directly interested From these
facts derived from reliable sources yesterday, It ap
pears that the newly announced law In relation to ths
liability or directors OF incorporated companies tns
shareholders Is about to have unexpected applca
ton Ii may be remembered that last winter some i'm
portant developments made which seemed TO savol
OF complcity Of certain directors OF the Pacific MAI
Steamship Company in the heavy dsfalcations Of NE
stockwe and his agents in the treasury Of that
pany These developments made in the taking o
testimony in action brought by that company
aga,ns. Mr.. W. s. King late Postmaster Of the House
OF Representatives, who received, II alleged
$4,000 OF the money. In proving tho case againa
King it was ascsrtaned by the evidence OF Messrs.
Rufus Hatch. johnson and others, vol as by The
examination OF Park, Harrios and Baxter, that the
directors OF the company during the Stockwell ad.
ministration were more or less negligent in having
allowed Stockwell to draw such immense sums from
tho treasury Of tho company for socaled expenses in
Washington and elsewhere. At the close si
the examination It was determined by two
of the directors OF the company to send
for IRWIN and induce him TO reveal the
whole truth respecting the knowledge Of stockwel's
co-directors In his defalcaton, with view to holding
them liable for Stockwell's Mr. Irwin con.
sented to come from California and unburden himself
On his arrival here, however, under promised sale
conduct from Two directors of the company well
It's counsel, he arrested crimnally cnarge OF
embezzng $3.50 900 OF the funds OF tho company This
obvious motive Of this act 1t claimed was 10 de.
stroy his crediblllty and dscredit his testimony
which Il INTENDED to give against the directors o
full and In the meantime, to prevent further dis
closures, combination was formed TO take the
troll Of the company from those directors who
were inclined 10 use Irwin Ia order to hx
the liability OF Stock Wells on Stockwell's
co-directorS This device also succeeded and the
troll passed the hands Of those who disposed
70 shield them But II that the OF
the company are now about to take the matter into
their own hands Irwins prosecution has been per.
mittea to linger along until he has become ds2usted
and more resolved than 10 tell the whole truth.
The curious part Of il is that OF the directors
implicated appeared print few days since having
asked obtained legal opinion to the liabilities
OF directors who mismanage the affairs Of their corpora
tons and the remedies OF stockholders against them.
The principles OF law thus ec'ted by them are
now, Il appears, TO be applied against themselves.
/. is well known that much dissatisfaction
has existed among the shareholders Of the
Pacific Mail Steamship Company. with not only the
way tho Stockwell Board spent money, but also
the manner In which the Sage Board attempted to
compromise with and shield him. The evidence
elected in the examination ID alleged to disclose many
strange ugly features. which, 1t Is asserted these
directors may have opportunity TO explain. and
II Irwin permitted compelled to tell all he knows
the records OF thc company cxhumed and the books
certain stockhrokcrs uniolded, story may be told
which will demonstrate that tho principles OF law
bodied in tho opinion before spoken OF ought to be
speedily applied. Il is cradibly stated that
q complainsr prepared by the late
counsel Of the Pacific Mail Steamship Com
pany undor direction of controlling members
OF tho Board whereby II intended 70 hold the
old members OF the Stockwe Board jointly liable with
ancc Of this purpose II was that Irwin summoned
from California. change OF administration inter.
fercd these proceedings, but now II Is understood
that in conformity with the mode suggested In the 70
cent opinion somo shareholders, behalf OF them
selves their sharenoiders, have resolved TO re
vivo those proceedings by suit tor tho benefit OF the
company II believed that such suit the greater
portion II not ali tho funds abstrActed or i'm.
properly expended, estimated between s.. .00o, 00d
and 81 O00 600, may be recovered back into the
treasury OF the company. Tho sanc counsel who ap-
pcared for the company In tho former proceedings,
and who drew the original complains, has beon re
tanned in this proceeding, and, considering the re-
have prospect Of largely replcnshng the treasury
OF the company.
Further inquiry on the subject elected the add
tionnl IN there truth In tho para
graph which appeared In morning journal OF yosser
day to the effect that execution for taxes about
TO be issued against the property Of the company
has there been there reported, any serious quarrel
tts dirart