The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-03-29
GEN. SCHENCK'S DEFENCE.
nov HB VAS INVEIGLBD INTO THE
EMMA MINI GUINNESS.
stewart and PARK Giving him mn Opportunity
To Acquire Wealth without Investing "a
BOllRr-rhe Agreement with Purk.

To Acquire Wealth without Investing "a
DoIlar-rhe Agreement with Purk.
WAsnINGToN. March 2s.-Ex-Minister
Schenck appeared before tho Committee on
Foreign AGHis to-day. ith a satchcl filed wi h
papers. He privately complained of being We h,
not having fully recovered from his recent at
tick Of sickness. TX Senator Stewart d ther
gentlemen connected with tue Emma mino tran
sacions we're present. Mr. Schenck read 10 z
written statement, in WHOM he said, referring to
tie printed testimony Of james u. LYON and
Hiram johnson:
, am nrepared to lay before tho commit unoqos.
is f1sc Ia tue witnesses o gave ar Of iniiIous
"a RI. tor and not worny OF credit Under olth hat
ward, without iaschood or frauc, atd made by N n
~ bcitvcd IN it, value that the purchase Was not
a ON thr iai OF any repre- Ions 1y nc g ic'
mine for ncty year before tne SAFE, aud u Oh
tent pers rs employed oy ne myers for taat pur.
psr' nat the mine continued for more than
icnd.' tnat Toe confidence Of the sellers IN It WIS
ZONE - them purchased largely " the sock hrh
nIccs an 80 loaned the company large sums ~ M.
l. ns'uan aeemcnt IN ne wording that emin 10
ss % w. or rN s.c az ~ M a e M Vlu n
20 far as know o. bcnevr parties IN Eng and VINO
aimed ih,t any fr'ud or mpdsIuoa was nraeils,d
i ur'" ',''' ,,T Nun h'Nna o'in i'ynE 81, Hp ~
ure o the mine at = uoninal piic'.
As tnis evidence, In HE ouinion could not DO
preso I'd EXCEPT through the means employed
In Judicial tribunals, he respectfully asked
the committee that tho uetstl privilea of the
as-i ttence vt prouer counsel be &c lrded to
him, IA well Tor the cross examination of the
Witnesses who n We testified .n,itst MN rs flr
the examination Of tnuse whom he desired to
Gen. swami and other members Of the COM
mttce replied that every facility would De
given him to vindca.e himself.
now sCHENCK WAS RoPED IN.
Gen. Scnenck then went on to give a circum-
siantini account of his connection with the
u nma mine. lie SAID no hn-t met stewart End
Park at the table Of william NJ. Evarts In Eli
wald's Hotel, London. In October. 1871, and
occasion. they told him Of the object Of tneir
| visit 10 Londnn-to pul the stock Of the Emm,
mine on the English market. Stewart suggested
| ma he t-chenckD ought 20 take nm Interest IN
this valuable property, the finest yet brought out
Schenck repned that ne had no means To invest
ana u he had he would tot risk II u less he
| could add considerably to his income by taking
large number of shares. This cd to CONVEX
satun that Increased his tSchenck's) interest IN
| the subject. and at length Stewart. who seemed
| to be exceedingly anxious that he should have
an opportunity to profit In the business, pro-
posed that II he would take SO sh res, Park
would give hun years time 60 pay for them.
| To show the value ~ the property, thew gave
| MIN diagrams Of the mine, and showed him
| II tements ~ the WORKING operations. the sales
| Of ore at London, LIVERPOOL, aud swanson and
the balance IN hank. The, also told him they
| had report on toe NINE from Prof Siman
| showing the value Of the mine. A day or two
port, and Schcnck finally made up hts mind
| to Invest m the mine on the terms propos ed.
| The matter was settled between = TX aud MIN
| self about the first OF November. rhe agree
| ment was reduced 10 writing ana exc ufed at
| that date and II was utterly lse tn I " was
| wri' ten or executed NJ any time pripr 10 the
| date II bore. Mr.. Schenck then exhibited tie
agreement for 800 shares, 7 TX promising to
give Schenck two per cent. month on the
shares while they should be held nY him, or
take them back at par. Subsequently, 20 Park =
| request, Scheuck agreed to reduction Of one
ana "a half per cent. Scheuck had gwen his note
to Park for tl0.0p. Fer thirteen mon his
| Schenck and the other stockholders received
one aud half Der cent. n month.
MAKING sCHESCK A DIRECTOR.
| Al the time lie made this agreement there had
! been no ofV'nization OF company. At the
| time - It's execution there was no sucgesf ion
| VIII .tever that hs snould have anything to do
| with the management f the con. any. After.
| ward, however, Park and Stewart Thought
| Schcnck ought To nc one II the man gers or u
| rectors % the proposed COMPANY. Schcnck dis
| scented from thls, but II was urged that they
| waited somebody soJourninQ In London to pro-
| tcot their interests. fhis seemed to be plausl-
| nle reason, out he sull objected, saving he
| doubteI the propr.cty Of his having anything to
| do win the management while there
| in n representative capacity, uuiess he
| kind. II tms should tie done another condition
| would have to te complied witn-he must know
| the names ~ all tho dir' ctOfs. IS he had thus
| iar ue ri tue name ~ only on" person who had
| been asked VI agreed to be director. ON Nov.
| the names Of such persons were furnished to
| MIN. lie was not acqn ia ed with any Of the N,
| but he learned that there we're among them
| members 81 Parliament and other gentlemen IN
! high position. Inc precedent fur foreign min
lister noluing an ONCE In JOINT stock comp ny
WIS found IN the mister from Port lgal, one q
| the Oldest and most respected Of he diplomatic
| curps, VINO was President OF "a tIalnway company
in LISBON, the stock OF whicn WIS being put on
| the market. Mr. Schcnck then referred to hi 3
| correspondence with Secretary Fish In relation
| to his being director; to the painful criticisms
| VIII, h THIS fact excited nd which resulted in
his Withdrawal IA director on Dec q. 1871
| Mir. S,henck said when ne went into the busl-
ness he uid not know there was such person
INs.4TN main In
or hnanci CIRCLES. lie attended only two meet
in-s # the board, on Nov, - ana 30, n wing re-
Board Of Directors or company again. He TOOK
no p.rt In the management, except giving
proxy u vote against Gardner's sci eme.
sCHFNCKs Losses.
Gen. Schenck then told how he and a friend
bought 81 shares IN the open market Il 80 ui
81 a share, and arr nged with Jaw Cooke, SIC
Culoca y Go. to carry that stock, putting up rs
u margin the f2.OOO gained by the purchase and
sale Of previous shares. Eventually the shares
were so1d al Ii, per sia n IN s9pssluen
hts losses In such speculatilns AZ $4,000 a
$bO,uUO. OF the dOJ shares he Originally obtained
c~lying 40 snare. He would have sold The
remaining shares, bur for the fact that he had
been ab lscd ana criticised. This determined
him Ia retain MA SHARES, which ne now hel l.
In explaining the settlement with Park, : chehcR
Mrs. bates. and q. s9i ~ addition. There was 4
credit OF f9jO1 on the note wnicn he had given
10 Park, aud winch note had been returned /,
HIM. THIS amount Schenck dtd not unucr~t M
until his hndl settlement with Park. II 81 sme1
that Park mad some arrangement with Grant tnl
the payment Of a commission To him on tho
shares, aud that Grant gavo Park commission
on the 5Ol shares hrid by schemes, of which
L TX said Scnenck ought tn have the benelt, a..
IL belonged to hin. As 10 the payment # the
remaining indebtedness to Park, the latter told
HIM he need not trolhle himself, ana that ne
felt as safe without security as with II, As he
knew 1t would lie paid. Schenck then rclat ed
how he PAID the remainder Of the amount d Z
To Park IN stock. sc. Nj. Schcnck then read q
letter from Sir Rodndel Palmer in reference "a
IA lawsuit, dlsprOying statements which had beer
made against HIM. A To Lyon, some of whose
statements he characterized "a clumsy lies, he
did not know that ne had ever seen him.
| rho committee adjourned until Tomorrow
morning, when Mr.. Schsnck will again appear.
Contents OF the Weekly Snn.
THE WEEKLY SUN published tAs morning con-