Evening star. [volume] (Washington, D.C.) 1854-1972, 1876-03-28

before the House Committee on Foreign Az
fairs this morning, and gave an explanation
OF bis connection with the Emma mine. Be-
fore the examination commenced, Mr..
Schencs read the following:
desire respectfully to state to the COM
mtttee that since my arrival in Washington
f. Ly on and Hiram A Johnso1. on which
the charges against me appear to be founded,
The testimony OF these witnesses was taken
In my absence, and without any opportuni-
ty for cross examination. This evidence is
produced to show that the sale of the Emma
mine by Messrs. Park, Stewart and Baxter
to the Emma Mining Company of London
was fraud, and that TO the contamination
of such fraud 1 Knowingly lent the assist
ance OF my name and official position. The
charge is very grave one, and ask for the
most full investig alton of it, For that mr.
pose, although not invited to appear before
the committee, L left London as soon as /
Learn ed from the news pa pers what action had
been aiken, and came at once to Washington.
might res my vindication for the simple
statement of my own connection with the
transaction in question which propose to
make, from which it will appear that under
sincere belief in the value OF the niue, and
the honesty OF the sale of it. l bought and
paid f the shares hold and sustained
large pecuniary loss But as the committee
here received evidence growing out of the
previous history of the mine AMI intended
to show that it was of little vaiue, and the
sale of it was fraudulent, and this evidence
has been widely published, L deem 10 suitable
to my complete vindication that the com
mittee should hear testimony upon these
points. am prepared to lay before the com
mittee unquestiOnable proofs that
THE EVIDENCE WHICH HAS BEEN TAKEN
Is FALSE
that the witnesses who gave 10 are of in
famous character, and not worthy of credit
under oath; that the sale of the mine was
lair, honest and straightforward, without
falsehOOd or fraud, and made by men who
bad paid large sum of money for ft, aud
implicitly believed in its value; that the
purchase was not made on the faith OF any
representations by the sellers, but upon
exact accounts of the actual product OF the
mine for nearly year next before the sale,
and upon careful survey and examination OF
IL by competent persons EN- pIoyed bytle buzz
ers for that purpose; that the mine continued
FOR more than a year after the s. ale to Weld
large monthly dividends that the confidence
OF the sellers In IL was such that after their
interest had been sued and paid for, some of
them purchased largely of the stock at high
prices, and also loaned the company large
sums of money; that the subsequent failure
of The mine was owing To Acknowledgement
IN It's working; that the mine is To day il
properly worked, IN all probabilities as val
liable as IL was claimed or supposed to be,
NJ d finally that so far as | know or believe
parties in England who were concerned In
its original purchase have never claimed
that any fraud or imposition was practised
upon them; that claims having been recently
set up 10y those VINO have bought the
stock since the alleged failure of the
mine at nominal price. 1t will be
apparent to the committee that the
proof must involve the Interrogation
of a considerable number of witnesses
that the evidence cannot be presented ex.
cept through the means universally en-
ployed in judicial tribunals, the eXamina-
ton of the witnesses by competent counsel
acquainted with the case, subject, of course,
10 such further questions as any member of
the committee may wish to put. That to
conduct the inquiry by calling upon wit
nesses to examine themselves, or by such
desultory aud imperfect examination as
must be made by committee not informed
of the facts, would be extremely unjust to
the party who relies upon the testimony,
and would tend to obscure the truth rather
than to elicit 1t. 1 have, therefore, to re-
specially request of the committee that the
usual privilege of the assistance OF proper
cross examination of the witnesses who
have testified against me as for the exami-
nation of those whom / desire to produce
Should the committee be pleased To accede
TO this, my request, as l cannot doubt they
will, shall be ready TO proceed with the
cross examination of the witnesses or my
own statement, as the committee may think
most desirable.
am, gentlemen, yours respectfully,
Robert G. SCEFSCK
Mr.. Faulkner, of the committee, remarked
10 General Schenck that his request was IN
necessary, as the committee had a!read +, by
resolution, granted him that privilege.
General Schenck said That was the first IN
formation he had OF the grant. and that had
be known il he would not have read his
paper.
GEN. sCHENCK's TESTIMONY.
ment, giving history OF his first connection
with the Emma mine, which was brought
about his meeting Hessrs. Parke and ex Sem
ator Stewart In London about the middle of
October, 1871. These gentlemen inform ID
him that their business there was that they
were DESTROYS of placing the Emma mine
stock upon the market. He had often heard
of the Emma mine, and, in fact, when he
(Schenck) was in Washington prior TO goiBg
10 London he saw some of the silver ore from
ihe mine His attention was called. to 1t by
10 CnTl1vp G nj V.Qn n
formed him that 1t came from the little cot
ton wood canon. Remembered the ore, and
when Mr.. Stewart, whom be had known for
many years, spoke or ii, told him that he
had heard of its immense value. When he
was first asked to take some stock he
promptly replied to Mr.. Parke that he had
70 means. After general conversation,
Mr.. Parke said he would aid witness and
give him time TO pay for the same if he
would take five hundred shares. At that
time il was never limited TO him that he
would he asked 30 become one OF the board
of directors. There was
A CONTRACT
made between himself and Parlle, which he
read 10 the committee. He gave his note to
Parke, secured by deed of trust on his
(Schenck's) house at the corner OF l4th street
snd Massachusetts avenue, in this city. Gen.
Schenck said the statements that he had
seen published, that this contract had been
written since that time, was unqualifiedly
false. After he had held the shares some
time proposition was made TO him 10
tecOne one OF the board of the direct tors, toe
reason being given the American stock
holders wanted an American who resided
there 20 be one OF the directors, to look out
for their Interests AT first he declined SO to
act, but after being informed that IL was
usual for diplomats 10 be SO interested, and
that there was great many precedents for
his action. He consented, and did act as one
of the directors for short while, but his
actions being criticised in the public prints
he resigned. He has since come to the con-
clusion that il was his great mis-
take 10 go on the board of directors.
After giving number of precedents and GO
ing into q detailed account of the many
schemes that were under the direction of
diplomats, OF other nations, Gen. Schenck
explained the purchases that he made OF the
stock. His first purchase was 800 shares The
first operation that he went into Melted him
so, coo clear, but the second did not succeed
as well. By his second Investment he lost
all he had previously made, the stock going
down, following a sink in the mine, and De-
sides leaving him indebted to Jay Cooke,
Mccullough & Co. in the sum of four or five
Thousand dollars. He afterwards made a
settlement with this bank with Is, 600, but
intends TO pay the restifhe is ever able to do
SO Mr.. Parke has since often said to him
that being as he bad got him into the Emma
mine, he would do all he could for him, and
on more than one occasion Afterwards Parke
said he would see him through, as ne had got
him N N q