The Portland daily press., 1876-03-30
THE EMMA MINE.
Continuation of Schenck's Tes-
tim0ny.
SHARP QUESTIONING BY THE
COMMITTEE.
A Letter Rejecting on the Character
Of Lyon.

WASHINGTON. d. c., March 80. -Ex- Minister
Scheuck again appeared before the Committee
on Foreign Affairs to-day and made personal
explanation as to certain publications in the
newspapers concerning him, showing that he
was not recalled as Minister to England at the
request of the Britieh Government. In regard
10 his leaving England without taking leave of
the Queen. Mr.. Schenck stated that he came
home on a leave of absence, but not knowing
his status, he did not know whether he would
return to London. The usual note was sent to
Lord Derby, stating that as he was
leaving suddenly he was not able to pay his
personal respects, and that he had left
the legation in charge of Col. Hoffman.
1t was usual that the resignation of q Minister
took effect on the appointment of his successor,
and successor bad not yet been appointed
He supposed that he was still Minister, but on
leave of absence. He left London for Wash
ington for the sole purpose of appearing before
the committee.
Mr.. Hewitt interrogated Schenck closely as to
his settlement with Park. He calculated Mr..
Schenck, instead of being out Of POCKET. was
in pocket $4,000 by the transaction. Schenck
said he wished he could view it in that light.
Mr. Hewitt said he had proceeded very care
fully in his questions on the theory that Schenck
made bona .tfde contract with Park, but the
point remained why Schenck, having turned
over his property to Park, should continue to
receive the dividends from it.
Schenck explained that the right to receive
the kdividend, which was $2100, on the insur-
ance and coal stocks was to continue 4 four
years, within which time he had right to re-
deem the stocks, paying both principal and
interest. Mr.. Hewitt said the suggestion was
still open that at the end of four years the
stock might be returned to him by Park.
Schenck replied that Mr. Hewitt might as we'll
say the same thing as to the mortgage of his
house in Washington. Mr.. Hewitt remarked
ha knav n oOltnct
unless for his actual protection. Schenck
understood that a man might draw interest on
mortgaged stock as we'll as on mortgaged
house.
Mr.. Monroe asked Schenck whether it did
not occur TO him that while Park was bestow-
ing favors on him, he was thus acting in order
to secure his influence as Minister of the
Uu;ted States in the Emma mine transactions.
Schenck replied it never occurred to him that
Park was seeking his influence in that direc-
ton. He believed Park was o liberal and
generous man, and having been instrumental
in bringing him into the Emma mine specula-
tion, he was DESTROYS of assisting him out of
difficulty. Mr. Monroe asked Schenck whether
it ever occurred to him that Park by his per-
sonal kindness wished to have him serve as a
manager or director. Schenck did not SO
understand, but he had no doubt that Fdrk
and others would have been glad to have him
serve as manager or director. There was a
time in 1873, when, not knowing what to think
in reply he gave in the evidence yesterday. The
letter went into an explanation of the condi.
ton of the mine.
Mr.. Swami wished to know if Schenck now
held to the doctrine as heretofore expressed to
Secretary Fish that while holding the position
of United States minister he had right to go
into the stock market and invest money whih-
out reference to his obligations to the govern
ment. Schenck assumed that so long as he
did notoffend against public propriety be had
right to buy and sell any kind OF property
whether as minister, member of Congress
or occupying any other capacity. Swami asked
Schenck whether he considered he had right
to engage i'm speculative stocks. Schenck re-
piled that he thought he had right to buy
and sell such stocks. 1t would not however be
cpmmendable to 60 into stock market business
This might be considered inconsistent with his
position as minister but if he could buy and
sell stock in good companies or any other kind
of property he should not be prevented from
doing so because of his official position.
Swami said: II understand you to say you
have the right to invest in what you please as
an American minister irrespective OF your obli-
cation to the government"
Schenck replied: 'lf it be an honest enter
prise.''
Mr.. Swann-"That is another question:
Schenck replied that he had right to invest
in honest enterprise while acting in an official
capacity and no one had right to censure him
for so doing.
Mr.. Faulkner asked what was the reputation
of the Portuguese Minister whose presidency
Of the Lisbon Tramway Company was taken
by Mr.. Schenck as precedent for serving as
director of the Emma Mine Company. Mr..
Schenck briefly spoke of the public services of
the Portuguese Minister, saying that his char
acter was excellent. In the course of the Ak
animation Schenck said that he made mis-
take in permitting his name to be used as a
director of the Emma Mine Company, and
this gave him more concern than anything else
concerned with the matter. He might be OBJ
fuse, but he could not see that he committed a
moral wrong in becoming director. 1t was
Schenck's impression from all the information
he could obtain, that if money were expended
in sinking shafts and in explorations the mine
would be found enormously valuable.
Mr.. Schenck, during the examin alton deny
ing the statements Of James E. Lyon, whom
he had seen but once, submitted the following
letter addressed to him, dated London, March
Is, 1876, by Harry Brett:
Your Ercellency-It appears by the report in the
public press that one James E. Lyon of Wisconsin,
now transacting business at New York, has been
giving evidence against you. In 1874 one James
Elias Lyon then residing at the Langham Hotel,
London, was adjudged bankrupt. He appears to
and to have dabbled freely in Stock Exchange
transactions and the claims already rendered against
MS estate amount to 1900 to 5000
absconded from England, as am informed firstly to
Paris and subsequently to Brunswick, and has since
affairs neither has he surrendered to his bankruptcy.
He is also reported to have been connected with
some American mining operations in London. His
adjudication only took place after very long delay,
he having kept his creditors at arms length as long
as possible. As one of the commissioners of in
spection am DESTROYS of ascertaining the present
whereabouts of the bankrupt, and whether he is
identical with the James E. Lyon of Wisconsin, and
may be able to render you assistance in return
for any kind of informa. ion which you may be in
position to give us.
The chairman said that as the proceedings
had been rather dry he would ask Mr.. Schenck
whether the drawing he handed him was true
representation of that distinguished gentleman,
Albert Grant. Naughter.) drawing was
carcature.)
Mr.. Hewitt remarked that perhaps Schenck
could not tell, as he had seen the original but
once. Schenck said this representation of Grant
was not half as bad as the pictures that had
been made of him. He only recollected Mr.
Grant as small man. Hewitt said the COM
mittee, Gen. Schenck and others here would
soon see themselves in an illustrated view as
an artist of one of the illustrated papers bad
been here sketching them.
The committee adjourned till tomorrow.