New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-05-26

London and in tho body the prospectus the
Mo Con sc6cnek of the exceptional character
of undertaking. has consented TO act OF the tors
OF the properly sold and the resources IL
OF L per cent per month for IL months In addition TO
tSsIs aSUa Of ALREADY dee
yeoped in various paris Of the mine and described IN
1857 75Op The prospectus then states:
From arrangements and details will be seen the
% SS nd
ms Mill stands % eEsy ne IN wch the paOho
For tns statement every DIRECTOR including the Amer
ani Judgment we're Ined. If this statement had
been true then the resources already developed"
sufficient for two years additional dividends at the
rate per cent per annum, thus securing from both
sources to the stockholders 81 per, cent OF
the purchase money, without any further prod
uct Whatever beyond the reserves ALREADY developed
The evidence shows that dividends at the rate
secutveiy, until December 1872, since when divi-
bends been earned paid and there IS no money
hand out of which they can be paid and there is no
in sight winch no mined. all the IN the old
workings having been absolutely exhausted and no new
dividends paid, 936,OOO we're advanced on sales OF
ore by Mr.. Park, wno is now snlng the Company
for balance of about s25.ooo thereof so that tins
net amount OF earnings actually divided was 4l700Oo
On inquiry by TIE Com Siee mr. Park protested his III
ability 10 account for tho disappearance OF the reserves
acglng as reason tnat he had been refused access
to the mne' ana no satisfactory eylaehGe Was he
come OF the remainder of the available resources
estimated Prospectus TO be OF the total Value
OF $J3J,050, of the LARGO quantity Of ore which
ought TO have been found during the years 1872 aud
1878, dnriDg which mining operations were steau, steadily
Prosecuted The result is that tho shares nave greatly
deprecated III yauc having fallen from 49, per snare
at which they were sold May IL ISL 70 osii a.
which they are now quoted The nne itself Is sun IN
the OF the Company but the personal properly
Park ana mas been purchased by aim and is in his
Great losses and consequent distress nave
believing ese presentations had subscribed for the
shares and probably DO failure OF nS ec hra do nr
snch briefly is the skeleton history the Emma silver
Mining Company of London as developed by the cVi-
dence submitted to the COMMITTEE
TEMPTATIONS OFFERED TO sCHENCK.
The history Of Gen. Schenck's connection with this
Company disclosed by the evidence, would appear to
he as follows: About the middle of October, 1871,
Gen. Schenck made the acquaintance OF Park, iii
company with Stewart whom he had previously well
known in the I'm tel States The object of their visit to
England mentioned, and conversation ensued upon
he subject which led Sar to suggest To Gen. Schenck
that he should purchase shares in the Company about To
be formed On Scbencs reply that he had No means to
invest Stewart suggested that Park, owning great
many of shares, and being Of wealth, could as
sst him II he disposed; and accordingly Park
proposed Schenck that he should become subscriber
in the company about to be formed To the
extent of 500 shares OF the value at cost
If $4,000. with the understanding that Gen
Schenck would not be required to provide any
money but that Para would let him have tne Tor
year without interest As further lnducenehi ior
Gen ocheuck take the stock Park guaranteed thlt lo
dividends Thereon should amount 10 Dor cent per
while held by said rchenck and that he woni u,
any time, the request OF Sehenck take bhck e ses
at the par value thereof Ii further provided thai
Park might relieve himself from this guarantee at any
tine by Offering to take back inc SHARES at teir pa,
value (see documents page 2sO Tho paetlIaI result ol
this agreement Was to give to Gen. schemes bonus
OF "a per cent on the STOCK suDscIoed ny nun
because note which he gave IN payment 0r the STOCK
was made payable IL one year. ana oSad no
were reduced TO liz per cent, thus itancing ,ne
bonus to IL per cent on the amount Of the pui-
chase. In addition to the note given IN accord
ance with this agreement, Schenck also agreed 10 assign
Sars 81 the ssd stock and II required by said Park 10
give him mortgage on certain rcai estate IN inc Wy "
Wasn ston; bus the stock was Lot so assigned ana Tue
mortgage was never given for any such purpose although
1t sub equently gwen to secure ioan OF Sl1,UoG
that the note the guarantee Of Park 10 Schenck, ana the
stipulation for security froi1 schenek 10 Pax.
IS ISL. pear and PARK and schenek both
SIat they were executed on the day p pne{i
told him that the note and the papers werr sSned al
subsequen date after the report reached bohue o 's
introduction OF resolution OF inquiry INTO the Seha'e VI
TIN 0omm1Iee merely call attention TO the fact that
while scGenck pu chased 300 shares OF stock hc only
agreed to assign to Park as security leaving
q saares unassged these rs shares sold by Gen
sobenck as am act Of personal friendship to Mrs Fannie
Bates then residing in Paris Inc date OF TINS shle
arising from IT, $500 Endorsed upon schencks note to
tine sh of Janutry 1877; ana tie actual
of the stock to Mrs Bates appsaIst hase pee maui
on 3lst of January, 1872 NOW u the doe % ne
aud Schcnck were really signed on the ist
OF November, 1871. then Gen schench must nave La, ni
an understanding vita rs. Bates PRIOR 10 that GATE tn
Size was TO have shares OF stock or tins there j. no eV
deDce aud considering that the contract 10 se
Gen scnencks language was made on tle lst DAYS "
October reduced 10 wiring AID closed on tho leI uay
S,yemlcr; tbat no company had yet been formed, IL
raises strong dOu0 as 10 whether All thc papers were
executed upon the day when they bear date Inc rop
bity wOull DE, though 1t may have Oeen forgot
by Gen. Schenck, that the note anu tne ealter "
to,gye security executed at later date Ihs view
is confirmed By tine letter OF resignation OF Cen Scehns
DaeE I'm "
shares have been able to tike ana by the statement
his counsel ing Of IGg bs sp snare
with the exception OF % shares soon aierward dspoSd
friend" IL also to be observed th't ig nooo
was not stamped, omission which nclthtI falk hoI
Gen Schenck appear 10 have observed II, ,... .
director OF The Company Is said by HIM TO have been
made either by Stewart or Park within day or TWO
aIIor the execution of these papers stewart says that
Tbe oroposIion was made in the following language
General, why cannot you De ono ~, ~ 'ne
diiectorsbip ills $500 year, that will bo worth
something TO yOu and you will have plenty OF ume TO
attend 10 it," schenck replied have not thought 81
dol any such tning that. but viii think about u
ON page l62, thai tao only cOhsi1eIalio
We suggested in connection with u was me Sai ~ NE
would GO; If nc became director that Is SZoyYi Wcn
rest OF them were to receive s9henck anu ~
appear u remember that the salary argument was
used. Schenck says: -, .,,,, Ia y man
ager II stated that Park and stewart ana pr; BAIT
would be Amer directors on that tmay Saea r
and in sense, need be- 10 protect American helsS
aud Placed my objection nrst upon ihe ground ha uVIsen
The Ppn 81 my ss Sss lnro in
pafy and that certainly should not have anything 10 90
be satisfied that there we're pece
deps for thing Of that KIM, or That was nor
prer by sOe persons whom might consult upon the SUP
iect and Whose Judgment might hop 10 inhuenco NINE 80
Cen schenek d.d not consult inc Secretary OF otae Oh
the subject, but says that he made inquiry OF
Mr. Moran tho Secretary OF Legation; but Mr Hoiah
does not appear have given any opinion as 10 tue pro
priety OF the American Minister becoming director III
The Emma Mining Company, but only as " the CHARACTER
aud standing OF the English gentlemen 10 Dc abso'eu ia
dir Gen. Schrncks Gcruples appear 10 nave
been removed by the fact that the Duke OF Ssldaha t
Portuguese Minister Resident in London was ad'cItscd
director prospectus Offering for sale the shares
OF the " Lisbon Tramway Company" This was Que OF