The New York herald., 1876-03-02
THE EN- MA MIN E
The Investigation Before the Com
mittee on Foreign Affairs.
TESTIMONY OF COLONEL GRAHAM.
How and Why General Schenck
Paid for His Stock.
wAsnNdroN, March l, 1874


Mr Lyon again appeared before tho Committee on
Foreign Affairs to-day and exhibited copies OF Senator
Stewards letters TO which aluson was previously
made These letters photographed by the Emma
Mine 10 be used the pending suit against the yend-
ers OF the mine Mr.. Lyon read an extract IRON the
report Of George Atwood, an Englishman, Supcrin-
tendent OF tho Emma Nine made to the directors and
Shareholders of the company dated October % 1875
in which he represents the mine TO be IN deplorabe
condition, the water having fifty ieet above the
level the tmbers fallen and the engine unfit Tor
The mine virtually exhausted, aud the only hope
for the future was TO solve geological problem which
would take money and much time. Mr. Lyon said
Atwood was scientific man, and received salary Of
S. 600
The witness reiterated his testimony OF yesterday
to the elect that Senator Morton did not receive any
money, nor had he anything whatever to do with him
and Senator Stewart in connection with the suit OF the
witness the Utah The witness then referred
10 the telegram London in 1871, that Senator
Blair had introduced resolution calling for an invest-
cation of General Schencks connection with the Emma
Nine In a conversation with Mr. Park the latter said
he had exed tho matter with the General whom he
had induced 10 give him (Nr Park his note for tho
stock and then write him letter saying If his note
and stock were sufficient security he would give
mortgage his house and lot in Washington. Mr.
Park said he had certified this statement TO Mr. Stew
art and If Mr. Stewart would do the thing it
would dry up the resolution.
The committee caused to be read a correspondence
between 5. T. Paaord and General schenck In the
letter of July 9 1873 Mr. Paford wished General
SchcncE TO give him certain Information about the
Emma Nine aud repeated tue rumor that General
Schenck did not bona fde pay Tor his shares Whether
tins true not, countryman of Schenck's, then
Ia London, said that 900 shares had been given 10
schenck 10 iloat the Emma stock and tha, Senator
Stewart received 1000 shares to become director oil
the Emma Mining Company. Nr Paiford wanted TO
know whether these things true, and
ia conclus. on charged Park and Stewart, who
friends OF Schenck, with having, with nofar-
intent and by fraudulent statements, OBJ
tanned from hun and other conldng share
holders large OF money He asked whether
Schenck ndorsed the acts OF these men, and SAID If an
answer should not be gwen. he would furnish a iul
uaement be published in the New York papers and
llso call the attention of President Grant and Lord
Granville TO the question To this letter General
Schenck replied July TO- 1873, saying that he had re-
sponded TO previous letter becauset 1t was respectful
in character; but when Mr. Panord subsequently at
tackled him the public prints. the publication being
accompanied by nnuendocs he could take no notice OF
his structures He, however had no objection TO give
Mr. Paord all the information in his possession " he
would call upon him at ten O'Clock on the next Sunday
his engagements being such that he could state no other
INTERVIEW WITH GENERAL scuEScK.
The witness, Mr. Lyon then stated that Mr. Panord
had ansiniervew with General Schenck, who told Mr.
Paiord that he did not know much OF the witness ex
cept that he adventurer, and asked Palord
whether his name and stewards were not better than
that OF Lyons they occupied high and responsible
positions Palord said 10 Schenck there were many
concurrent circumstances TO induce persons to believe
that money given To him TO float the stock that a
country yman of Schenck bad sand that the latter's
means too inconsiderabe to pay Tor the shares
schenck informed Paiiord that he had parimony
from fathers estate in the shape OF coal NINE in
Wisconsin On this he borrowed S25, 900 to pay Tor
pne-half of his stock and the other S25 900 he bor
fowed from Mr Park, and had not yet paid him all
back The witness said to Mr. Paford that there
we're no coal mines In Wisconsin. Subsequently wit
ness called Mr. McCulloch, OF the banking house or
lay Cooke, McCuoch X Co, wnen McCulloch asked
him to let up Schenck and not 10 be too severe ON
ann unI said haf Iha RrNl a
whenever the name OF the Emma Nine was mentioned
The said in reply that lac Was not surprised at
him an adventurer. Mr. McCuloch informed him that
schenck had denied that he had called him an adven
turcr
The following telegram dated San Francisco early
yesterday morning, was received by Hon George g.
Gorham, Secretary OF the United states Senate yeser-
Mr. STEWARDS TELEGRAM
al desire testify before House Committee Foreign
Relations III tue Emma NINE inVesugauoh' see chair
OF cOmmlttce ascertain when necessary for me TO
start Would like a few days here before leaving
Mr. Gorham submitted this telegram 10 the Commit
tee on Foreign Anars to-day and asked permission for
Mr.. C. j. Hiyer 10 cross examine Lyon ON Stewards
behalf The committee d response proposed that they
should cite Lyon to appear aud confront stewart when
the latter arrives Mr. Graham assenied TO this propo
stion being still moro satisfactory, and II was &C
IL is unacrsIood that Minister SchencK will sail for
America next Saturday and appear before the commit
lee IN person. Friends OF General Schenck now In this
;iy they are in possession OF letter written by
t2J0O00 under threat OF publishing his Lyon's) story.
they also that this story mpeaGhed IN every ma
leral assertion every witness and document in the
litigation now pending IN England
Colone Gorham appeared before the committee with
telegram nom ex-senator stewart The committee
authorized Colonel Gorh an TO inform Mr. Stewart that
they would hear him whenever he should present him
sell about two weeks hence, and the committee further
said that Mr. Lyon would be recalled at that time SO
that Mr.. Stewart could interrogate him. hr. Lyon
iad tins would be very agreeable TO him
self and then resumed his testimony,
repeating that Park had often informed
him that General Schencks name had sold the Emma
Mine, and this the witness bcIeved from concurrent
circumstances.
II appeared from the replies the questioning of the
committee that he compromised his interest In the
nine for $780, 600 the original stipulated sum being
500 COO There great nducement 10 withhold from
The public for about month Scheuck's resignation
Is director Of the Emma Mine Company. Park very
much regretted the resignation, because the shares ic
A. low as El4 sterling owing to The kmma Nine
transactions American securities generally much
depressed. H. Pulcston OF the bankiog house OF Jay
Cooke McCuloch Co, bitterly con planned that their
Grm bad been badly treated having received only
f2j, 900 sterling or the OF their name In putting
the Emma Mine stock ON the market.
The Chairman laid before the committee the following
telegram, dated London, to-day, addressed to HIM
seli:-
Tho report OF the proceedings General Schcncks
connection with the Emma Nine, published IN to-days
London Times that james Lyon testified tnat
told him gave senator Stewart ZOO shares To be-
some = and assist IN getting Schenck name
the Board. Tn 5 statement Is absolutely untrue.
have never Ll on nor had any communication
Nth hun Ia my liie never gave stewart any shares
ttcr become director himself TO get ScheDck to
be director aud give Lyons testimony the most un-
qualified contradiction. ALBERT GRANT.
The telegram having been shown to Mr.. Lyon,
he denied having made such statement Hiram A.
johnson, OF New YORK, who acted as attorney ior
Lyon tcstned that lac had interview with senator
Stewart two three weeks succeeding his arrival IN
London; Stewart informed him that lac aud Mr. ark
dosirous OF selling some mining property and had
10 London Tor that purpose; Stewart asked
what could be done; the witness replied.
lac thought the market was Indifferent IN view OF the
aiiurc sell other similar proper'yi stewart then
referred the large shipments OF ore from the Emma
Nine time 10 time, and the rcspcctabity OF tue
persons connected with u vendors not at that
lime considering himself as one OF them, Stewart
thought the Emma Nine could be sold, although others
had Jailed at subsequent interview, the witness told
Stewart he had Understood that MS mine had
proved 10 he pocket mere deposit OF ere as dis
nnguished from true assure vein; the witness told
sIewar be had Teceived lelcrs and reports from The