The Lake County star. [volume] (Chase, Mich.) 1873-current, 1876-04-06
General Schenck before the Committee.

Ex-Minister Schsnck appeared before the Com
him satehel filled with papers He privately com.
planned OF being weak, not having fully recovered
from his recent attack OF sickness Ex-senator
Stewart, and other gentlemen connected with the
Emma Nine transactions, were present.
The Committee agreed to give Mr.. Schenck every
facility with the aid of Counsel.
o MT At: sehenea then gave ercnms anita account
few preliminary remarks, Mr.. Schenck said that In
October, 1871, he met at Edwards Hotel. In Lon
don, ex-senator Stewart and Mr.. Park. IL was at
the table OF William NJ. Evarts, Of New York. He
was not sure whether 1t was at the table, or at a
subsequent interview. Mr.. Stewart said something
about the purpose Of his visit TO London, and in
property Of the Emma Mine, and were DESTROYS of
putting the stock on the English MARKET and they
communication to him, either the dinner table or
afterward, his attention was directed to what Stew
art called the Little Cottonwood Canon, in Utah.
NE NE represented that when at the Land Ohice in
for London, calling there for the purpose of effect
ing the promotion of clerk, the Commissioner ex-
hibited some rich silver ore found in Little Cotton
wood Canon.
Reverting to his sojourn in London and to his
there having met Park for the first time and after
hearing OF the object OF the visit of Stewart and
farK, ana their conversation AZ to the value of the
property, the suggestion was first made by Stewart
TO Schenck that the latter ought TO become in
,erested In this valuable property, the finest yet
10 means TO invest, and II he had he would not 20
into the matter, unless he could considerably add
shares.
This led to conversation which increased his
interest In the subject. He consented to look into
the matter, to see whether II was worth his while
10 invest, provided he could obtain means. He
thought Stewart was exceedingly anxious he should
nave the oppoi tunity TO profit In the business. lie
told him (Schenck) that Park would assist him, and
shares, or make the investment OF some degree OF
importance Schenck wished to know the value OF
the property. They gave him diagrams OF the
mine, ana showed him the statements Of the work
ing operations, sales OF ore at London, Liverpool,
aud Swansea, and the balance In the bank. They
also told him they had a report on the mine from
PROFESSOR silliman, showing the value Of the mine:
a DAY or two after this conversation they showed
MIN Siiliman's report, and Schenck finally made up
his mind to invest In the mine II Park would let
MN nave the money on time, say for year. Park
tween Park and himself about the LIST Of November,
when their agreement was reduced to writing and
executed; and II was not true but utterly false,
time prior to the date II bore. Mr. Schenck then
exhibited the agreement for five hundred shares,
faIk promising to give Schenck two per cent: per
month on the shares while they should be held
by him. or TO take them back at par Subsequently,
at Parks quest, Schenck agreed to the reduction
TO- one and one-haif per cent. Schenck had givsn
his note to Park for $4,000 for thirteen months,
and Schenck and the other stockholders received
one and one-half per cent. per month. At the time
he made this agreement there had been organiza-
there was no suggestion whatever that he should
have anything to do with the management of the
company. Afterwards, however, Park and Stewart
thought Schenck ought to be one Of the managers
directors OF the proposed company. Schenck dis
scented from this but 1t urged that they wanted
somebody soourning In London TO protect their in
terests. This seemed to be plausible reason, hut
he still objected saying that ne doubted the pro-
priety OF his having anything to do with the man
agement while there In his present active capacity
unless he could be satisfied that there were prece-
dents Of the kind II this should be done, another
condition would have to be complied with. He
must know the names OF all the Directors, he had
thus far heard the names Of such persons were fur
Dished him. lie was not acquainted with any Of
them, but he learned that there were among them
members OF Parliament and other gentlemen in
high position. The precedent OF Foreign Minister
holding Office in Joint stock company was found in
the Minister from Portugal one Of the oldest and
most respected Of the diplomatic corps, who was
s, o. the TramTay Company in Lsbon the
Schenck had nothing TO do with the preparation of
the prospectus OF the Emma Mine Company. Gen.
Schenck said when he went into business he did
not know that there was such a person as Albert
Grant, not being acquainted in stock or financial
circles ScheDck attended only two meetings OF the
board, on the 2Sth and 3oth Of November having
resigned In December, he never went near the
Board OF Directors or the company again. He
took no part in the management, except
giving proxy to vote against Gardeners
scheme. He related how he and friend bought
800 shares in open market at $50 or E3l share and
arranged with Jay Cooke McCu,Och & / o. to carry
that stock, putting up as margin $4,000 gsincd by
the purchase and sale Of previous shares Eventu-
ally the shares were sod at Ella per share. In
subsequent part OF his statement General Schenck
calculated his losses In such specuations at $4,000
or S6O0tO OF the 500 shares he originally obtained
from Park, he sold % shares TO Mrs. Bates, receiv
ing f2O a share. He would have sold the remaining
shares but for the fact that he had been so much
abused and criticised. This determined him to re-
tain his shares, which he now held. In explaining
the settlement with Park, General Schenck said he
gave to him the $500 ne received from Mrs Bates
and e. 1874 in rdditOn. There credit of e., 900
on note which he gave to Park, and which note
had been returned to him. This amount Schenek
did not understand till his final settlement with
Iark. 1t seemed Park had some arrangement with
Grant for the payment Of commission TO him on
the 900 shares held by ScheDck, OF which Park said
Schenck ought to have the benefit as It belonged 10
him. AS to the payment Of remaining indebted
ness to Park, the latter told him that ne need not
trouble himself, and that he felt safe without Sc
curity as with 1t, as he knew 1t would be paid
General Schenck then re lated how he paid the
mainder OF the amount due to Park in stocks, ETC.