The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1876-01-05

What induced him TO. believe that there
| was no such impropriety was, among
other, things, the fact that company
had been formed under Portuguese
charter for the construction of steam
tramways at Lisbon, of which the Min
| lister of Portugal, one of the oldest and
most esteemed at this Court, Field Mar
shall the Duke of Saldanha, was the pro-
ieetor and the Chairman of the Board of
Directors, and its stock was on this
market. Neither at that time nor sine
has this step ON the part of the Duke
been censured.
The guarantee referred 60, Mr.. Park
had, by its terms, the right to withdraw
at any time, and did in fact withdraw,
| so that in truth, IL was no guarantee at
all. Gen. Schenck was TO receive the
amount, apparently guaranteed, If the
dividends were equal to it, and nothing
really by virtue OF the guarantee, when
that guarantee was Withdrawn. What
be did receive, therefore, was strictly
dividends, and when these ceased to be
made he received nothing. The guaran-
tee was of no advantage to him what
ever, and did not place him in situa-
| ton better than that of the st0ckhold-
ers.
1t is impossible to suppose, even if he
he could have accepted this guarantee
under any idea whatever that in doing
so he would do injustice to the other
stockholders. Soon after the General
became o director he, on reflection,
Thought that his name ought not to ap-
pear, and at once resigned. 1t is proper
| also to state that before he became q
director he asked to be informed who
were to be his associates, and this in
formation was given him in note from
Mr.. Stewart, dated the 81 of Nomember,
1871, and was to the effect that they
were gentlemen of the highest respecta-
bility and large wealth, including sever
| al members of Parliament and exten-
siye manufacturers, naming them.
| His resignation was sent in on Dec 9,
1871, when his official connection with
the company ceased. During no part OF
this period, that is to say, from the time
! when he became stockholder and d.
rector TO the time of his resignation, had
| any doubt been cast upon the value of
| the mine. On the contrary, the stock
had enhanced in value from f20 to over
$50 per share, and many sales were
madea at the latter price. The immedi-
ate cause of the subsequent depreciation
was the fact that the mine had caved in,
and that large expenditures would be
necessary to set it again in order.
| 1t must be apparent to every reader
that, il the enterprise had proved to be
of permanent value, the cruel charges OF
which the General has been the OBJECT
would never have been made. He never
sold his stock, and holds it still, and the
loss to him has been severe one, ex-
hausting nearly all his available means
He has repaid the loan made him by
Park, but to do SO has been obliged 10
dispose of other stocks and bonds. In
| a word, then, what Gen. Schenck did
was a mere business transaction, en-.
tered into by him with full belief
which he was authorized to entertain,
that it would inure to his profit, and this
must have been the case with all the
original stockholders.
SO tar from it's having turned out prof
liable, it has been and Is quite other
wise; but the General bears the loss
with the firmness which belongs to his
character, and without the least con-
seriousness that he has done anything
legally or morally wrong, although as he
| himself stated in his testimony, he sub
lsequently thought that in becoming a
director he had made mistake. 1t
must be satisfaction to him that his
Government never censured him, but on
the contrary, has acquitted him OF any
wrong intention, and retained perfect
confidence in his ability as Minister
aud his integrity as man.
1t must also be satisfactory to him to
know that he stands well with the GOV.
ernment of Her Maj ,sty, and is enabled
to serve the United States as well as if
the Emma Mine had never peen thought
OF or existed. That our representative
at one OF the most important Courts OF
Europe should be SO mercilessly assailed
is not only great personal wrong to
him, but IL is a reflection upon our Ad.
| ministration who continue TO confide in
| him.
Ii this letter shall have the effect, in
some degree, of setting the public senti
ment Of our country right in regard to
The matter on which i have written, il
will ever DO a qualification to me that an
opportunity has been offered me to dc
SO. A word more and have done.
am not, as you know, political friend
of Gen. Scheuck, having differed with
him upon almost all the questions which
have been before our country since the
Termination Of our Late war, but we have
\ differed, as gentlemen ever differ, with
out imputing improper motives to one
another.
remain, with regard, your obedient
servant, REyERDY JOHNSON.