The Portland daily press., 1876-03-02
THE EMMA MINE.
More Testimony From Lyon and
His Attorney.
Minister Sehenck and Albert Grant
DenOunce His Statement as False.
sCHENCK COMING HOME TO EX.
PLAIN.


WASHINGTON, D. c., March 1.-Mr. Lyon
again appeared before the foreign affairs CON-
mittee to-day and exhibited copies of Senator
Stewards letters to which allusion has previous
ly been made. These letters were photo
graphed by the Emma Mine Company to be
used in the pending suit against the vendors of
the mine Mr.. Lyon read extracts from the re-
port OF George Atwood IAN Englishman) Super
rectors and shareholders, date Oct %, 1875, in
which he represented the mine in deplorable
condition, the water fifty feet above the level,
the timber failed and the engine shaft unfit for
use. The mine was virtually exhausted and
the only hope for the future was to solve the
geological problem which would take money
and much time. Mr.. Lyon said that Atwood
was scientific man and received salary of
$4,000 year.
The witness reiterated his testimony of yes
terday to the effect that Senator Morton did
not receive any money nor had he anything
whatever to do with him and Senator Stewar t
in connection with the suit of witness in the
Utah Court.
Witness then referred to the telegram sent to
London in 1875, that Senator Blair had intro:
duced resolution calling for an investigation
OF MIR. Schenck's connection with the Emma
mine. In a conversation with Park, the latter
said he had fixed the matter with the General
whom be had induced to give him park his
Auto lOr olUCh duu bu6u WTlJo ulLu lett6r say
ing IF his note were not sficient security, he
would give mortgage on his house and lot in
Washington" Park said he had certified this
statement to Stewart and if Stewart would
do the same thing, is would dispose OF the
resolution.
The committee ca1sed to be read the corre-
spondence between S. T. Pofford and Gen.
Schenck. La the letter Of July 8, 1873, Mr..
Poford wished Gen Scheck to give him GER
tain information about the Emma mine and
repelled the rumor that Gen. Schenck did not
bona fide pay for his part whether this was true
or not. A countryman of Schenck then in
London, said that 5000 shares had been given
to Schenck to float the Emma stock and that
Senator Stewart had received 1000 shares to
become director of the Emma Mine Com
papy. Pofford wanted to know if these things
were true and 10 conclusion charged Park and
Stewart, who were friends to Schenck, with
having with nefarious intent and fraudulent
statements obtained from him and other confid-
ing shareholders, large sums of money. He
asked whether Schenck endorsed the acts of
these men, and said that if an answer should
not be given, he would publish full statement
and also call the attention of President Grant
and Lord Granville to the question.
To this Mr.. Schenck replied July 10, 1873.
that he had responded to the previous letter
because it was respectful in character, but
when Pofford subsequently attacked him in
the public prints, he could take no notice of
his structures. He had however no objec-
ton to giving Poffred all the information in his
possession It he would call upon him at 10
o'clock on the next Sunday.
The witness Lyon then stated that Pafford
bad an interview with Schenck, who said he
did not know much of witness except that he
was an adventurer and asked Pafford ii his
name and Stewards were not better than that
of Lyon, as they occupied high and respons-
ible positions. Patford said to Schenck that
there were many concurrent circumstances to
induce these persons that money was given to
him TO float the stock, that a countryman of
Schenck had said the latter's means were too
informed Patford that he had a patrimony in
the shape of coal mine in Wisconsin. On
this he borrowed $500 to pay for one-half of
his stock, and the other $4,000 he borrowed
from Park and has not yet paid him all back.
Witness said to Pafford there were no coal
mines in Wisconsin. Subsequently witness
called on McCulloch of the banking house of
Jay Cooke & Co., when McCulloch asked him
to let up on Schenck and not be too severe on
him, and said the General was very indignant
whenever the name of the Emma mine was
mentioned. witness replied that he was not
surprised at that and that he could not forgive
ScheDck for calling him adventurer. Nc
Culloch informed him that Schenck denied
calling Lyon an adventurer.
The following telegram, dated San Francisco,
was received by Mr.. Gorham, Secretary of the
United States Senate, yesterday afternoon:
II desire to testify before the House Com
mttee. Ascertain when it is necessary for me
to start, and would like few days here before
leaving" VIM. M. STEWART.
Col Gorham appeared before the committee
with the above telegram, and the committee
authorized him to inform Stewart that they
would hear him whenever he should present
himself about two weeks hence, and the COM
mittee further said Mr.. Lyon would be called
at that time SO that Mr.. Stewart could interro-
gate him. Lyon said that this would be very
agreeable to himself, and then resumed his ties.
timony, repeating that Park had often informed
him that Gen. Schenck's name had sold the
Emma mine, and this witness believed from
concurrent circumstances. 1t appeared from
the replies to the questioning of witness by
members of the committee, that he compro-
missed his interest in the mine for ST., 000 the
original stipulated sum being 100000 There
were great inducements to withhold from the
public about month Schencks resignation as
a director Park very much regretted the res
ignation, because the shares fell as low as G14
sterling Owing to the Emma mining transac-
tons the American securities generally were
much depressed. j. III. Puleston, of the bank
ing house of Jay Cooke, McCulloch & Co. bit
terly complained that their firm had been badly
treated, having received only 925,000 sterling
for the use of their name in putting the Emma
mine stock on the market
The chairman laid before the committee the
following telegram dated London today adj
dressed to himself:
The report of the statement as to Gen.
Schenck's connection with the Emma mine
published In to days London Times states that
James e Lyon testified that told him gave
Senator Stewart 1000 shares to become Sirec-
tor and assist in getting Schencks name on the
board. This statement is absolutely untrue
have never seen Lyon nor had any communl-
cation with him in my life. l never gave
Stewart any shares either to become director
himself or to get Schenck to be a director and
give Lyons testimony the most unqualified
contradiction
ALBERT GRANT.
The above telegram having been shown to
Mr.. Lyon. he denied ever having made such a
statement.
Hiram A. johnson of New York, who acted
as attorney for Lyon, gave detailed account
OF the manner in which the scheme of the
Emma Mining Co. was placed on the London
market by Albert Grant, though Grants name
did not appear in the prospectus. The latter's
name was so disreputable in financial circles
that If it had been known in England that
Grant was the protector and promoter of the
scheme the subscriptions would not have been
secured, even with Gen. Schencks name to the
prospectus. 10000 circulars were sent ont in a
single day by Grant to as many persons resid-
ing in the different parts of the United King
dom. The newspapers of London, Edinburgh,
Glasgow, Liverpool and other cities contained
on the same day statements similar to those in
the circulars. 1t was published in the London
Times as result Of intimate relations between
samson, the financial editor, and Albert Grant,
which subsequently resulted in Samsons dis
missal. With the exception of one or two pa
pers, the criticisms of the press were fayora-
BILE.
Witness availed himself of the earliest oppor-
tunlty to disabuse the public mind as to the
scandalOus character of the mining scheme.
He sent out circulars to counterfeit the prospec-
tus of the company, in which he narrated all
he then knew about the property. Witness
then related a conversation with solicitor of
London and with Anderson and Pembleton,
members of Parliament, who had taken shares.
he stated to them among other things that AL
bert Grant had received very large sum to
float the scheme, that Prof. Sllman received
$1,000 to go out and examine and report on the
mine. The original contract with Silliman was
that if the mine should be sold he was TO have
a further compensation of $4,000. There.wa
also rumor that Gen. Schenck received 5000
shares for consenting to serve as director
Witness said to Mr. Pemberton: "You are a
barrister and am not acquainted with your
laws, but if was solicitor would put the
strong arm of the law on Park and hold it
there till he surrendered the money of which |
he has robbed you and your associate share |
holders" Witness also warned him if they |
wished to recover any of the money they must |
prevent the further cabling of transfers to New |
York. Witness never had any conversation |
with Gen. Schenck on the subject.
In conclusion, johnson said he stated in his' |
circular that there was only one man in the |
world who could have the audacity to ask Gen |
IL f