New-York tribune., 1876-02-29
WASHINGTON.
LAYING OPEN THE sCHENCK SCANDAL.

MOTION NEUTRALITY-SUSPICIOUS. We
IN THE MATTER.
IBY TELEGRAPH TO THE TRIBufs'l
W.su,rnrox Feb 2S.-The House COMMITTEES
n, Eoreiop Affairs had spasm of sense to-day anu
onened it's doors The subject matter was 'ne
Gchenck investigation. If the story Oh James E
lyon one of the original owners OF the Emma nii'o
=, t that chapter in our National history involves
a greater scandal than has been known. lha' s'ory
eomprehends the betrayal of a client by MS counsel
and that counsel United States Senator; the prosu
tution OF professional scientific opinion; gganuc
scheme of stock -Obbng corruption; the open pripos
of United States Minister; and National disgrace
The outline of James F. Lyons story. told reVerenty
pnon kissed Bible and frankly the statement Ot
an honest man. is ths
He was formerly a resident of Racine Wis, and
has for years been engaged in Western mining inter-
ests He was the original owner OF the only patent
which the Emma Mining Company had OF mas
Three years before the Emma Mine was thought OF
he had located and worked the old Monitor looe
which was later chTstened the Emma Nine squat
ers during his absence set up nval claims. great
lawsuit resulted, in the course OF which Lyon
engaged William NJ. Stewart late United States
Senator from Nevada with many Others. The mine
had grown valuable. The pocket, OF filed egg
shenD us he called it, had yielded two millions OF
dollars of ore. Mr.. Stewart came In to save MI
LYONS rights with contingent fees ranging from D
10 25 per cent of the amount recovered, according
to the service rendered. Mr. Stewart went to Nevada
with Mr. Lyon, and there. as Mr.. Lyon says, met
Senator Oliver P. Morton Utah then seems to have
been IN a condition of judicial anarchy. IL Mr.
Iyon Is to be believed, ChiefJustce Mexican
and his associate justices were sitting III
Judgment upon mining cases, while hold
ing stock and acting directors in one
of the corDOrations litigant. The United States
Marshal held stock likewise, and was certain to
select jurors who held stock This condition OF
affairs was represented to Senator Morton by Senator
Stewart The former said it was all wrong. Mr.
Stewart told Mr. Morton that if he would assist i'll
securing the removal of Judge Mexican, and III the
case generally, he would give him $4,000. 10 TINS
Mr. Lyon says Senator Morton agreed. He was
going TO Indianapolis and wanted to be advised OF
progress. Senator Stewart did soon after telegraph
TO Morton to come to Salt Lake immediately as the
case was very important and Lyon had been abused
Morton does not to have gone. and although
great influence was brought to bear. Judge Mexican
was not then removed. The Methodists were too
much for Senators and litigants. Stewart wanted
Lyon TO 10 10 trial in Utah. He refused so long rs
the Marshal, who interested with the opposite
party could pack Jury.
Meanwhile Mr.. Lyon says, some California spec
ulators bought for 81 600 the shadowy claim Of
some squaters near this mine Upon this basis they
made company with $l0,000,00O stock. Stewart
urged Lyon to consolidate with this company, using
as an argument the fact that there would be shares
enough to supply all the Judges, jurors, and wit
nesses in Utah. This Lyon refused TO do Trenor
W. Park then appeared the holder of an interest
ayerse to Lyon. Stewart ani Park were then uD-
friendly Stewart said that Park would steal the
court records buy witnesses, bribe jurors, do any
thing 10 carry his point. Park SAID that Stewart
had bought judges and juries Lyon declined to en-
ter into their personal differences. This enmity
seems to have been assumed, as Stewart and Park
soon worked jointly to induce Lyon to compromise.
In the course of these conferences Stewart proposed
10 manage" the surveyor and the land
Office. All this was in July, 1871. At that
time Park and Stewart agreed that $2,OOO,OOO had
been taken from the Emma mine. Then Park
organized his New-York Emma Mine Company,
with a capital of $5,000000. Park, Stewart 4
Lyon were then agreed that the mine so far as de-
veloped was already about exhausted. All the ore
that was in sight nearly gone. 1t was agreed
between the three that the ore taken out should be
called 81 SOC, 900 net, and that Lyon should have
onethird, OF $500, 900, for his claim. To-day finds
him still in search Of that claim Senator Stewart
himself, in a letter to Lyon, dated Aug. o, 1871,
speaks of the mine a worked out mine" and
says that IL would be better TO accept the compro-
mise than htgate for such mine. In the same
letter Stewart speaks of having worked up the mine
I'm England by the ore that was sent and by the
manner of sending that s. 600 600 ST, ,0000 600
of Parks stock expected to lie sold there. The
witness implied that 4" by the manner of sending it"
he understood that the services of Minister Sehenek
were meant.
contract Of adjustment was then made between
Park and Lyon, which Senator Stewart signed for
Lyon without authority. That contract Lyon sup
posed secured to him 100000 AS it turned out,
Senator Stewart made it something very
different. Stewart went to London Under express
instructions from his client not to associate himself
with Park in putting the Emma Mine upon the
market. Stewart violated his instructions. Park
undertook his work. saying TO Lyon, 81 propose to
sch this mine for what Las come out Of it, not for
what is in it." and Stewart helped him to do this. II
was accomplished by q wholesale system of cor
ruption. The mine frst prepared for scientific
investigation and then Prof. bhnan engaged
TO report upen it, He did this for 100000 In that
report he said that tie Emma Mine one of true
mineral wealth. and of great power, and that he
placed il among the great mines Of the world This
was placed in the prospectus. and helped the sale.
When this report was received, Stewart wrote to
Lyon that it had done great good. and that every
thing was very hopeful and homogeneous
Albert Grant was selected the promoter" OF the
enterprise
vast system of bribery was then begun. Among
the promises were, TO Albert Grant, f1OO,0OO; to
Jay Cooke. McCulloch & Co. f25, COO; paid for the
Use Of their name, JOHN Puleston of that firm,
10000; X. s. echenok. United States Minister
30 sbares, with guarantee that it should net EGO
per share Lewis & Sons, metal brokers, 91S,OOO;
Lent. mining claimant Of San Francisco, $4,000.
Mr.. Lyon, In continuing his testimony, said that