Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-03-04
STEWART.
What the Ex-senator Knows About the
Emma Mine Scandal-He Says
Lyon is Lying.
How He Became Tangled in the Web of
Lyons Weaving - Schenck's
Part in the Job.

SAN FRANCISCO, March 2.-Ex-Sen-
atOr Stewart expects to leave next Tues.
! day, for Washington, to testify before
the house committee on foreign rela-
tons in the Emma mine investigation.
In an interview this morning, he fore
Swallowed the general tenor of his evi.
dence, to the effect that on first meeting
Lyon at Washington, in the early part
1872, he was favorably impressed with
Lyons claim to an interest in the Emms
mine, and went to Salt Lake to push
his claim as legal adviser. He thought,
at that time, that Judge M'Keau was
prejudiced against Lyon, and endeavored
TO procure his removal. Afterward he
became convinced that Judge M'Kean
acted fairly and impartially, and found,
on examination, that Lyons claim was
not as good as it first appeared, and ad.
vlsed compromise with the Emma
company; in this connection he wrote q
letter to Lyon in which the expression
occurred "better have a compromise
than a worked out mine" meaning that
to enforce Lyons claim would require a
litigation of years, and in the meantime
the mine might be worked out. The ba-
sis Of the compromise was agreed upon !;
went to England as agent for Lyon,
with Park as agent for the company |;
we were az once besieged by parties
wishing to purchase; received a propo-
sition from Coates & Hankey to buy a
half interest for two million, they to put
stock on the market; they also selected
Prof. SfllimRn to report on the mine;
Albert Grant then put in an appear
ance, and at his suggestion got Schenck
to come 10 as director, believing at the
tina % the nina It,aI
erty; when the storm wac raised about
Echenck being a director, he resigned,
hut held on to bis stock, etill believing
it valuable, and subsequently, lost on it;
neither Schenck or myself received any
stock as gift; my own WAS received for
services to Lyon in professional capac-
ity; Echenck bought his, and raised the
money TO pay for it; Lyon then wanted
to realize on his interest, gave me q bill
OF sale, and l gave note for one hug
dred and fifty thousand dollars to Park,
who advanced the money to Lyon;
Lyon then began to sell sholt and circu-
late stories in depreciation OF the mine;
the stockholders sent q committee to ex.
anime 1t, who reported sll right; the
stock kept up, and Lyon could not cover
his shorts; he then threatened to COM
mence suit to recover an additional
amount for his interest, which was COM
promised by Park paying him fifty
thousand dollars more, which he
also lost by selling short; in the
summer of 1872 went to Salt Lake In
the interest OF the Emma company, the
mine having been dumped" by the IL
Hnois tunnel mine; IL wac then looking
well but shortly after fault occurred
In lead; the company ran shout sixty
feet to hanging wall and stopped, in
stead of going down on lead; believe
still that 1t ia very valuable, If properly
worked; since quitting operations the
Bay City tunnel company has run I'M
der the old Emma working, and is in
rich ore on the Emma's ground; Lyon
has been making living for years by
litigation; his evidence before the house
committee is tissue Of faisehoods,