The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1876-04-01
WASHINGTON.



counsel laid before the Committee state
ment OF the facts connected with the En-
ma mine, its sale to the Emma Silve
Mining Company OF London, and its sub
sequent history and present condition
which was prepared for the use Of th
Committee on Foreign Affairs in the in
vestigation OF the connection Of Genera
Schenck with said company. It was pre-
pared before the counsel knew exactly tn
what would be the course Of the proceed
ings before the Committee.
Faulkner proceeded to PROFOUND ques
tionS to Schenck. He asked whether tht
statement laid before the committee OF
the 18th inst, by Schenck, contained th,
allegations OF the facts within his owl
personal knowledge.
Schenck replied that draft OF thu
statement was submitted TO him by his
council and after several changes wert
made in it he adopted it. Allhe knew o
the testimony before the committee be-
fore he lett London was q paragraph ol
two in London newspaper Of the lst OIL
Cd OF March, when he Immediately an
nounced his purpose OF coming to Wash
ington to appear before the committee
When he arrived here and saw fuller
detail Of the testimony Of Lyon it seemed
that it was connected with your Difficult
ties and quarrels with others, but all in
tended 10 bear upon the question collat
orally against Schenck, and he was adyis
ed that there was much testimony tC
show his transactions in light different
from Lyons report.
@. Is it true as contained in your
! statement that the sale OF the Emma
Mine was fair, honest and straight forward
without false bond and fraud.
A. beelive it, but know nothing but
what l have disclosed, ofmy..own person
al knowledge.
3 Q. Isit true Of your knowledge that
James E. Lyon and A. A. Johnson are
infamous and unworthy Of belief.
Schenck said he proposed to produce
un answerable proofs OF what he had stated
he being satisfied that he could do 80 in
representations which had been made to
him.
Mr.. Faulkner asked him whether in
making the statement preliminary to the
examination 1t was his purpose to break
down the testimony OF Lyon and johnson,
the statement having been published
through the Associated Press.
Mr.. Schenck said the object OF the
statement was to present the cause Of the
examination, and that the reply should
he aa broad ns the attack.
Mr.. Faulkner interrogated Schenck us
to whether he had heard any Of the orig
inal stockholders charge fraud in the
sale OF stock.
Mr.. Schenck, in the course Of his reply,
said he had received numerous letters in
which the writers asked what they should
do. He never advised them to hold on
70 the stock, but said they must act for
themselves. This was after he ceased to
be manager or director in the company.
The difficulty did not spring out Of want
OF confidence on the part Of those who had
purchased stock and become directors,
&c. They were we'll satisfied with the re-
port OF the English directors, but the
difficulty originated in the action Of those
who subsequently obtained the manage
ment Of the company, including McDOu.
gal, who had no interest in the company
at the formation, but afterwards bought
stock at very low or deprecated price.
Mr.. Schenck, in reply to question,
said that he considered that he had suffer-
ed large pecuniary loss. The contract
with Park for the purchase Of five hun
drcd shares was executed and delivered to
Park on the day itpurported to have been
made. He was aware that the English
laws required a stampto be placed on all
such papers, but he did not know wheth-
er the absence Of stamp invalidated
the contract.
The question was asked whether
Park in making the contract was not So
fictitious OF having the name ofthe prime
minister Of England among the list OF di-
rectors?
Mr.. schenck replied that very possibly
such desire existed in Parks mind, but
what Park may have desired had nothing
do 10 with his reasons for entering into
the contract with him. He thought he
was making bargain for himself, he felt
confidence in the property all the time,
and invested HE money as permanent, He
considered the subscription TO the stock
rs bona fide. He regretted only that he
permitted his name to be used as
director, but when he became
satisfied it was improper he resigned.
He repeated that he was convinced that
be had made mistake. He neither con-
cealed or proclaimed 10 the world his
contract with Park, it being Of a pri-
yate nature and private transaction.
The question was asked Schenck
whether the Board OF Directors would
have sold him, as they did in the allott.
ment, 800 shares, if they had known he
had made private arrangement with
Park for 500.
Schenck replied that this was no con-
cern to the directors. Park wanted to do
liberal thing for him, and he (Schenck)
wanted to secure good bargain.
Mr., Faulkner asked whether his good
faith did not require that every one COM
ing into the company should stand on an
equality?
SSchenk answered in the affirmative; but
so far as Park and himself were concern
ed Park guaranteed dividend OF two
per cent a month as an inducemcnt for
him to take the 500 shares OF stock.
In reply to the question whether
his resignation as a director did
not cause the fall in stock, Schenck
said that il was his serious belief
that those who invested 10 the stock
placed less stress on the fact that he was
a director than on the communications
Of Englishmen and others from Salt
Lake, representing the richness Of the
mine. The stock continued TO be bought
and sold after his previous connection
with the company had been pretty much
forgotten. lie was n director only four
weeks. II the stock had fell on account
Of its becoming known that he had ceased
to be a director, it was because those
bearing down the stock made false repre-.
sentations, that "the Emma Mine stock
was worth nothing, as Mr.. Schenck had
abandoned ii"
Mr.. schenck was asked whether he
knew Of his own personal knowledge that
the character Of H. A. johnson was so in
famous that he was not worthy Of belief,
as he had asserted beiore7 schenck said
proofs would be furnished 10 this effect.
His opnioE as to Johnson's character for
truth was unfavorable, because he had