The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-03-29
HIS CONNECTION WITH THE EMMA NINE.
Oaustic Review of the Action Against
Him in His Absence.
his PURCHASE OF FIVE HUNDRED SHARES.
The Amount Paid and the Manner
Of Paying.


filled with papers. He privately complained Of being
weak, not having fully recovered from his recent
attack OF sickness Ex-senator Stewart and other gen
tlemen connected with the Emma mine transactions
present Mr.. Schenck read the following paper
LETTER COMMITTEE
desire respectfully to state TO the committee that
my arrival in Washington have read the printed
testimony OF James r. Lyon and Hiram A. johnson, on
The testimony OF those witnesses was taken IN my
absence ana without any opportunity for cross
examination This evidence Is proposed TO
snow that the sale OF the Emma mine by
heSsrs. PARK, Baxter and stewart, of the Emma
AIne Company OF London, fraud and that TO the
COMMUNICATION OF spch fraud knowingly lent the as
sistance OF my and official position The charge
very grave and ask for the most full investi
cation Of IL For that pu pose although not invited
TO appear before the committee left London
rs learned from the newspapers what action had been
taken and at once to Washington.
might rest my vindcation upon the simple state
ment OF my own connection with the transaction in
question, which propose to make from which it will
appear that under a belief the value OF the
mine and the honesty OF the sale OF It, bought and
paid for the shares hold now and sustained large
evidence growing out OF the previous history OF The
mine and intended to show that It was
fraudulent and this evidence has been
widely published, deem 1t suitable TO my complete
vindicaton that the committee should hear testimony
upon these points, ! am prepared to lay before the
committee unquestionable proofs that the evidence
which has been taken is false that the witnesses who
gave II are OF Infamous character and not worthy OF
credit under oath that the sale of the mine far,
sonest and Straightforward, without alsehood or
fraud, and made by men who had paid large sum OF
money Tor II and implicitly believed in its value; that
The purchase was not made on the alth OF any repre-
Ientatons by the sellers but upon exact accounts of
The actual product OF the mine for nearly year before
the sale and upon careful survey and examination of
II by competent persons employed by the buyers for
that purpose; that the mine continued for than
year after the sale to yield large monthly divi-
aends that the confidence OF the sellers
In IL such that after their interest had been sold
and paid for some OF them purchased largely the
stock at high prices and also loaned the company large
sums OF money; that the subsequent failure of the
mine was owing 10 mismanagement IN its working;
that the mine IS to-day, II properly worked, all
probability valuable as II claimed supposed
TO be- and finally. that, SO far as know or believe
parties in England who concerned original
purchase have never claimed that any fraud impo-
sition was practised under them, that claim having
teen recently set up by those who have bought the
stock since the alleged failure OF the mine nominal
price.
1t will be apparent to the committee that this proof
must involve the interrogation OF considerable num-
Der of witnesses the presented
except through the means universally employed IN
Judicial trlbunas-the examination OF the witnesses
by competent counsel acquainted with the
case, subject OF course, to such further
questions as any member OF the committee may wish
30 put; that TO conduct the inquiry by calling upon
witnesses to examine themselves or by such desultory
aud imperfect examination as must be made by COM
mttee not informed o. the facts, would be extremely
unjust to the party who relies upon the testimony and
would tend to obscure the truth rather than elicit
have, therefore, to respectfully request OF the
committee that the usual privilege OF the assistance of
proper counsel may be accorded, as well for the
cross examination of the witnesses who have testified
against Tor the examination OF those whom
desire TO produce. Should the committee be pleased
TO accede TO this, my request cannot doubt they
WILL Will be ready to proceed with the cross exam
NATION OF the witnesses or my own statement the
committee may think most desirable. | am, gentle
men, very respectfully, ROBERT {. SCHENCk.
Mr.. Falkner said that Mr.. Schenck mistook 1t was
he intention OF the committee to invite him appear
before IT,
Mr.. Swami also remarked the committee would give
Mr.. schenck every facility with the aid of counsel
Mr. Grhop han ts.Io q
his connection with the Emma mine
GENERAL scHENcK > TESTIMONY
Alter q few preliminary remarks, he said that in oc-
tober, 1871 he at Edwards HOTEL in London ex-
Senator Stewart and Mr. Park; it the table OF
William NJ Evarts, Of New York he was not sure
whether il was at the table subsequent inter-
view Mr. Stewart said something about the purpose of
bis visit to London and informed him that
he and Park Interested in the property of
the Emma mine aud deslrous OF put
ting the stock tho English market, and
that they then engaged in negotiations In max
ing this communication to him. either at the dinner
table afterward his attention directed to what
Mr. Stewart called the Little Cottonwood Canyon in
Utah. lie represented that when at the Land Once in
Washington just before he LEFT the United States for
London-callng there for the purpose of eiecng the
promotion of a clerk-the Commissioner exhibited
rich silver found in the Little Cottonwood
CANYON
Reverting to his soourn in London and his there
having met PARK the first time and after Hearing Of
the object of the of Stewart aud Park and their
conversation the value OF the property the sug
gestion first made by Schcnck that the
latter ought to become interested in this valuable
property the finest yet brought out Schenck
answered he had means to invest, and II he had he
would not 90 into the matter unless he could
ctae To hi Inv fax
number of shares
This led to conversation which increased his inter-
est the subject He consented to look into the
ter. to whether 1t worth his while to invest
provided he could obtain the means lie thought Stew
art was exceedingly ANXIOUS that no should have
opportunity to profit in the business He told HIM
schencK) that Park would assist him. and would give
him time If he would take 500 shares, make an in
vestment OF some degree OF importance Mr.. Schenck
wished TO know the value of the property They gave
him diagrams Of the niue, and showed him statements of
the working operations the sales OF ore at London Ltv
erpool and swansea and the balance bank They
told him they had report on the mine from Probes
sor Shinan, showing the value of IL A dav or
two alter this conversation they showed HIM SiI-
mans report, and Sohenck finally made up his mind to
invest IN the mine II Park would let him have the
money time-say for year-Park having many
shares This matter settled between Park and
himself about the LIST OF November when their agree
ment reduced to writing anu executed and II was
true but utterly false, that the agreement was
written or executed al any time prior to the date
bore
THE Ex MINISTER'S PURCHASE
Mr Schenck then exhibited the agreement for SEQ
shares, Park promising To give Schcnck two per
month the shares while they should be held by
him take them back par subsequently,,
At Parks request, Schenck agreed 10 rcduc.
bad given bis note to Park Tor eI0oOo
For thirteen months Schenck the other stock
holders received one and halt per cent month. At
Tie time he made this agreement there had been no
organization OF n company. Al the time OF its cXecu-
ton there suggestion whatever that he should
TNH In do ff.NT lsta
pany. Aferward, however, Park aud stewart thought
schcncE ought 10 be one OF the directors
o the proposed company. Scheuck disscutcd from
this, but II urged that they wanted somebody
lourning IN London TO protect their interests This
seemed TO DO plausible reason, but he still objected,
saying he doubted the prOpfiety Of his having any
thing 10 10 with the management while
there In representative capacity, unless ho
could be saiisned there prccedonts OF the kind.
be ON hav