The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-30
GEN. SCIIENCK'S DEFENCE.
WHY HE QUIT LONDON WITHOUT
SEEING THE QUEEN.


locations In tho newspapers concerning him.
showing that he was not recalled az Minister TO
England at the request OF tue Britsh Govern
ment, and he alluded to the writ served on him
| Just previous to his leaving London To meet a
pending suit, and the following note In the way
| of explanation:
~ IIScoLS's Ivy TtgLps, LoNnoy. W C., March O
slh; Inc writ sned ny US was served unony YOU under
oassador here. We beg to apologz for the mist Ike 20
80 commenced assoandoned. Yoggs obsdie9ty,
His Ercelency Gen. scnrxoK. washinston. i, s. a.
Mir. Monroe said that II had been alleged that
he left England without taking leave of the
Queen.
Mr.. schenck replied that he came home on
leave OF absence. but not knowing his status he
did not know whether he would return 10 Lon
don. The usual note was sent to Lord Derby,
stating that as he was leaving suddenly, he was
not able to pay his personal res poets, and that
he had lett the Legation In charge ~ Col. lIoH-
man. II was usual that the resignation Of a
Minister took effect on the appointment Of his
successor, and successor had not ct been
appointed. He supposed he was still Minister,
but on leave Of absence. lie left London for
Washington for tue sole purpose OF appearing
before the committee.
NO INDUCEMENTS OFFERED.
Mr.. Hewitt then Intercepted the witness,
who said he had no iniucement to subscribe to
TIC Emma mine stock except from what APP
corning the value OF the mine. lie was asked
whether the giving him two per cent. month
bonus on his flO.OO0 invested was not equivalent
to twenty-four per cent. wear "a bonus. Gen
schenck said he understood the company would
divide that much. Park said the stock was a
good thing, and the stock would pay such div
ldend. Gen. Sehenck never communicated TO
the company or the directors the fact that he
had such a contract with Park. He WIS asked
to become a director subsequeut to the date OF
bis contract with Park When he said he paid
dollar for dollar be meant that he had given his
al dam
sntee given him Of two per cent. month was
before the organic, alton. After the organization
declaration of the amount vi dividends WAS
made, namely. one and half per cent, and
Schenck modified his contract with Park ao-
cordingy.
The examination yesterday and to-day devel-
opsd the fact that Mr.. schenck's note to Park
was Tor $1,000 for his 500 shares Of stock. on
this being his interest on the sale of some Emma
mine stocks. Then further credit Of el.5OO in
December, ISL, THIS f2.5O0 consisted Of 900
cash. which had been gwen by Schenck 10 Park
Just before the latter left London. schenck
heard that credit had subsequently been given
him of f2,OO0 apart from this fJOO cash. and he
wrote To Park In May, 1873, 70 know what we're
the credits on tho note. sod asceriained by let
the note was 1000 This. In the lnal settlement
n May, 1879 was explained by Park as including
ing London, and 1000 which had been erro-
neousy received by Albert Graut AS commits
sions on the 800 shares sold not by Grant. hut by
Park to Scbenck, aud which PARK insisted
schenck was entitled TO receive.
now THE $4,000 NOTE WAS PAID.
Al the seitlement after the calculation 81 all
interest there was found due from Schenck 10
Park an amount equal IN American currency 20
SSh1O. Park Insisted on allowing to Schenck a
balance of over $500, as shown by the books o.
his boOkkceper, Granger, e. he due Schenck a.
interest to which he was entitled on the pur-
chase aud sale Of stocks. schoRck says he ut
terry refused to receive any such credit. and In
sisted on paving or settling Ia some way as best
he could out Of his means the balance OF the
note. THIS was done by q payment Of about
Gates Of pald-up stocks In the Nermillion Coal
Company Of Illinois, the National Insurance
Company Of Washington. and In another com
ptny or companies to the amount Of $1,000, and
promissory note OF Mr.. Woodruff for $500
more with the fight TO redeem the stock In four
years.
MIR. Hewitt INTERCEPTED Mr. schenck closely
~ to the above settlement. He calculated that
pocset Ss.s6 hy the transactioni Mr. schSncR
said he wished he could view II in that light.
Mr. Hewitt said he had proceeded very carefully
IN his questions. on the theory that Mr. Schenrk
m ode bona hde contract with Park, but the
point remained why Schenck, having turned
over his property t. Park, should continue 10
receive the dividends on II. Mr.. Schenck ex-
planned that tue rignt 70 receive the dividends,
which were f2.lOl on the insurance and coal
stocks. WAS 70 continue for four years, within
which time he mad the right TO redeem the
stocks. paying both principal aud interest. Mr..
Hewitt said the suggestion was still open that
At the end Of four years the stocks might be re-
turned To him by Park. MIR. Schenck replied
that Mr.. Hewitt might as well say the same
thing "a To the mortgage Of his house In wash
ington Mr.. Hewitt remarked that he never
knew mortgagee to collect rents unless for his
actual protection. Mr. Schenck understood that
a man might draw interest on mor'gaged stock
a. well as on mortgaged house.
SOMETHING THAT sCHENcK DIDN'T SEE.
Mr.. Monroe asked Mr.. Schenck whether It did
not occur to him that while Park was bestowing
fayors on him he was thus acting in order to Sc
cure his influence as Minister Of the United
States IN the Emma mine transactionsf Mir.
Schsnck replied that il never occurred 10 him
that Park Was seeking his Influence In that
direction. He believed Park TO be a liberal and
generous man, but. having been instrumental IN
bringing HIM into thes.Emm mine speculation,
he was desirous OF assisting Lin out Of diff
Guilty.
Mr. Monroe asked Mr.. schenck whether It
ever occurred 10 MIN that Park, by his personal
Kindness, wished To have HIM serve as a man
ager or directOrf Mr.. Schenck did not so I'M
derstand. but ne had no DOUBT Park aud others
would have been glad to have HIM serve AS a
manager or director. There was IA Time, in 1873,
when, not knowing whit to think about the
mine, he wrote to Park. whose letter in reply he
gave ia evidence YESTERDAY The letter went
INTO an explanation Of the condition Of the
mine.
MIR. Swami wished TO know whether MIR
Schenck now held to tho doctrine, as hereto
fore EXPRESSED TO Secretary Fish, that while
holding the posi- ton of United States Min
lister he had the right to go into the stock mar
ket aud invest money without reference TO his
obligations TO the Government Mr SchAnck
answered that 40 long as he did not offend
against public prOpriety, he had a right to buy
and sell any kind Of property, whether as a Min
ister, member Of Congress, or occupying any
other capacity.
scHENcK's NOTION OF WHAT is RIGHT,
Mr. swami asked whether ne considered he had
a risht TO engage In speculative stocks. Mr..
Schenck said he thought he had right o buy
ana sell such stocks. IL would not, however, be
commemorate To 20 into the stock market, be-
cause this might be considered inconsistent
with his position as Minister, but If he could
buy and sell stock In good companies, or other
kinds Of property. he should not be prevented
from doing so because OF MS official position.
Mr.. swami understand YOU to say you have
the right to invest in what you plense IA an
American Minister, irrespective Of your obliga-
tons To the Government.
MIR. SchencK-lf II be an honest enterprise.
Mr.. Swann-Ihat II another question.
MIR. Schenck repeated that ne had right to
invest In any honest enterprise while acting In
AN Official capacity, and no QUO had right TO
censure him for so doing.
In the course OF the examination Mr.. Schenck
said he made a mistake In permitting his name
to be used AS a director OF the Emn!. Milne Com
pany, and this gave him poPe concern than any
thing else connected with the matter. He mi5ht
be obtuse, out he could not see he committed
a moral wrong In becoming director IL was
schenck . impression, from all the information
he could obtain, that II money were expended
in sinking shafts and In explorations, tine mine
would be found enormously valuable
The Canal Ring suits.
ALBANY, March e. -Proceedings were had to-
day before the County Clerk in the matter Of striking
frotn IN tryt ha aoI tha