Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-03-29
He Presents Written Statement Of His
Connection with the Emma-Mine
Scheme, and DenOunces Park
and LyOns
How lie Joined the Company, and Be
came a DirectOr-HOW he Bought
and Sold his StOck-His Expe-
rfenees as a Dupe.

Stewart and other gentlemen connected
with Emma-mine transactions were
present. Scbenck read the following
paper:
Z" desire respectfully to state to the
committee, that since my arrival in
Washington have read the printed tes-
timony of Jas. J.. Lyon and Hiram A.
johnson, on which charges against me
appear to be founded. The testimony of
these witnesses has been taken in my
absence, and without affording any OPP
portunity for q cross-examinatiOp. This
evidence is produced to show that the
sale of the Emma mine by Park, Bax-
ter and Stewart to the Emma company,
OF London, was fraud, and that to the
consummation of such fraud l know
ingly lent the assistance of my name
and official position. The charge
is q Efave one, and I ask for
8 most full investigation of it.
For that purpose; although not
invited to appear before the
committee, left London as soon as /
learned from the newspapers what ac-
ton had been taken, ana came at once
to Washington. 1 might rest my vim
dication upon the simple statement Of
my own connection with the transac-
ton in question, which 1 propose to
make, ffOm which it will appear that
under the sincere belief in the value OF
the mine, and the honesty OF the sale of
it, bought aud paid for the shares [
hold now, and sustained large pecunia-
~ loss; but as the committee have re-
ceived the evidence growing out of the
previous history Of the mine, and in.
tended to show that it was of little
value, and the sale of it was fraudulent,
and this evidence has been in, it was
such that after their interest had been
sold and paid for, some of them pur-
chased largely of stock at high prices,
and also loaned the company large sums
of money; that the subsequent failure of
the mine was owing to mismanage.
ment in its working; that the mine is,
to-day, if properly worked, in all
as valuable as it was claimed
or supposed to be; and finally, that, so
far as know or believe, the parties in
England who were concerned in the
original purchase have never claimed
that any fraud or imposition was prac-
tieed upon them, that claim having been
recently set up by those who have borght
stock, since the alleged failure efAthe
mine, at nominal pgiRa aGkFRill be ap-
parent to the ecnNaeAtee that this proof
must involve the interrogation of a con-
rumber of witnesses; that
evidence cannot be presented except
through the means universally employed
in judicial tribunals, the examination OF
witnesses by competent counsel ac-
quainted with the case, subject, OF
course, to such further questions as any
member Of the committee may wish to
put; that to conduct the inquiry by call
ing upon witnesses to examine them
selves, or by such desultory and imper-
feet examination as must Ds made by
not informed, would be urjust
to the party who relies upon the testi-
mony, and would tend to obscure the
truth rather than to elicit it. 1 have,
therefore, to request OF the committee
that the usual privilege Of assistance Of
proper counsel may be accorded as well
as for cross-exsminatiOn of witnesses
who have testified against me. AS for
the examination Of those whom desire
to produce, should the committee be
blessed to accede to this my request, as
cannot doubt they will, l will be ready
to proceed with the cross-examinstion
of witnesses or on my own statement, as
the committee may think most desIra-
ble. 1 am, gentlemen, very respect
fully, ROBERT O. sCHENCK.
Mr.. Faulkner said that Mr.. Schenck
mistook. 1t was the intention Of the
to invite him to appear before
the committee.
Mr.. Swami also remarked that the
committee would give Mr.. Schenck
every facility with the aid OF counsel.
GaHor1aky n OirOIl Q O n
tial account of his connection with the
Emma mine.
After few preliminary remarks, Mr..
Schenck said that in October, 1871, he
met at Edwards hotel, London, Ex-
Senator Stewart and Mr.. Park; it was
at the table of William NJ. Evarts, OF
New York; he was not sure whether it
was at the table or at q subsequent in
terview; Stewart said something about
the purpose of his visit 10 London, and
informed him that he and Park were
interested in the property of the Emma
mine, and were desirOus OF putting the
stock on the English market, and they
were then engaged in negotiations; IN
making this communication to him,
either at the dinner table or after, his
attention was directed to what Stewart
called Little Cottonwood canon on
Utah; he represented that when at the
land office in Washington, just before
he left the United States for London,
calling there for the purpose OF effecting
the promotion of q clerk, the commits
sioner exhibited some rich silver ore
found in Little Cottonwood canon. Re-
verting to his sojourn in London and to
his there having met Park for the first
time, and after hearing the object of the
visit OF Stewart and Park, aud their
conversation as to the value of the prop.
erty, the suggestion YVES first made by
SteeArt to Schenck that the latter ought
to become interested in this valuable
property, the finest yet brought out.
Schenck answered he had no means to
invest, and if he had he would not go
into the matter unless he could consid-
erably add to his income by taking
q considerable number of shares.
This led to a conversation which in
creased his interest on the subject. He
consented to look into the matter to see
whether it was worth his while to in
vest, provided he could obtain means;
he thought Stewart wss exceedingly
anxious he should have an opportunity
to profit in the business; ne told him
tScn6HCh I0aL IdTK NOulu dSSlsI MIN,
and would give him time II he would
take five hundred shares or make the
investment of some degree Of impor-
tance. Schenck wished to know the
vslue of the property. They gave him
diagrams of the mine and showed him
statements Of the working operations,
the sales Of ore at London, Liverpool
and Swanza, and the balance in bank !;
they also told bim they had report on
the mine from Professor Silliman show.
ing the value of the mine; a day or two
after this conversation they showed him
Silliman's report, and Schenck finally
mode up his mind to invest in the mine
if Park would let him have money on
time, say for year. Park having many
shares, this matter was settled between
Park and himself about the first
OF November, when their agreement
was reducedi to writing and executed
and 1t was not true, but utterly false
that an agreement was written or exc
cuted at any time prior to ths date 4
bore. Schenck then exhibited an agree
D.