The New York herald., 1876-01-29
TIE PACIFIC MAIL SUIT.

The examination OF Witnesses the suit of the
Pacific Mail Steamship Company against William s
King continued yesterday, at room 100 Drexel
Building, before Edwin NJ Wright notary public, as
Commissioner.
Mr. Theodore T. Johnston testified that the 10000
shares OF Pacific Mail specified in the agreement of
October % 1873 were delivered TO Mr.. Russell Sage;
the Grs deliveries Of 900 600 shares were to Mr.
Sage individually; afterwards the matter was pre-
sentcd to the Board by Mr.. Francis Alexandra, who
said the shares ought not to stand the of Sage
and they transferred to committee in trust;
the shares were sold from time to time during the
next four months the price paid being from 40 to AK
tho brokers sales rendered and put on record;
Mr. Sage particularly prominent in the cancclla-
ton of the March agreement and after him Mr. Park
others acquiesced Mr., Sage said that in getting the
10000 shares ho had got certainty for un
certainty; the report OF the attorney If the
company respecting the validity of the mortgage was
on le do not know whether the mortgage and sceuri
ties accepted by any member in private dealings
with Stockwell; the records will show; Mossrs Scott
and Hatch, on their return from Washington, do.
nonnced Sagc's action they charged that it was cor
rupt bargain between stockwoll and other members,
and accused Sage OF spccuIang in puts and calls and
OF selling stock short; great deal of dissatisfaction
grew out Of these transactions; there we're many
stormy meetings, and the result was that Mr. Sage
signed; Messrs Hatch and Scott threatened, unless
sage resigned TO expose hts in delivering up
the release subsequently they requested the Board
authorize them 20 take proceedings against Sage for
the recovery Of the money but the Board took ac
ton on the matter; Mr. Park said that it would be
acting in bad faith toward Mr.. Stockwe TO proceed
those checks; Mr.. Hatch wished 10 proceed ;
check for $l395oo, IN favor Of Mr. Stock.
well, brought before the Board, and
attempt which was finally successful made TO
charge II TO the Pacific Mail steamship Company
loan; Mr Park at this time director In both
the Panama and the Pacific Mail companies, and the
question was as 70 who should lose that money; Mr.
fark on that occasion approved OF the prosecution OF
the claims against Stockweu and Nr. Hatch said ho
would guarantee the recovery OF the amount provided
authority was given him 10 proceed; the check re-
mains stu uncolected
The witness then stated that by the terms of the
October agreement Mr. Stockwou given six months
10 deliver 10 the company the 10 600 shares Of stock in
question he receiving IN return u full and absolute
discharge Of oil claims OF the COMPANY nrainst
him. The agreement then read aud ii was
found that the period given extended to seven
months and no discharge was provided for.
charged In the Board when Messrs. sage, stockwcI
and Park were present that Of the directors lad
received 800 600 for the delivery OF this release the
witness stated that the charge not made when the
Board was in session; he could say that the man
her in which tho 100000 transferred irom.the
pockets Of Mr. StOCkweli TO another director was
pointed out; the charge however denied in
my hearing the director present when the charges
were made agalnst him cannot give the names Of all
those present
The preamble and resolutions adopted October ls7S
were then read nom the minutes They provided that
% the delivery by Stockwe TO the company OF 10 600
shares OF Pacific Mail mutual releases should be cx.
examination OF Mr. Jobustoy bong contn-
ued, be testified that the releases were made
and delivered, he being present the
time; the mortgage OF tbe Home Sewing Machine Com.
pany went into The hands or Mr. StockweIl. cannot
trace u nrtncr; do know where Mr. Park was when.
Ap aehVerywA made and eKeoalsds N zoe indigna-