New-York tribune., 1876-03-02
WASHINGTON.


c1RcuLARs-TEsTIMONY OF LYON AND '0i''''O''
lay TELEGRAPH TO THE TRIBuSE'' ,
,,,.o,,,,crov March 1.-The testimony gwen Wy
~ won in the Schenck investigation seon' W
hove stirred up hornets nest in two heniisp".',
~ senator Stewart, who Is IN California ~
.,ranhed to-day. asking the Committee 10 near I'm
- his own defense, and will probably pe III
" -. ,ith;n two weeks Gen. Scbenck ls 10 san
He s,,or,ca on Saturday, and will answer ioi nm,
IF before the close of the present month"; HD ~
Cront has sent long cable dispatch 10 'ne = Oonn.
,uittee denying all accusations OF inPioPei Loa
81, his mart and the counsel OF Irenoi We CO.."
" assnredv Gov. Swami that MS ciie"', Inv
Panama will also demand hearing "o al ','I
,,rou,inent actors in the great Emma Mine so',un
lii nrobably have an opportunity 10 teii 'nei
stories. which, if they prove as eh'eI'a'nine
those already told will add very
aahio tbouch greatly mortifying chapter
,ha history of official scandals ana
.;..rtic svindles. The session Of the Foreign Al
- Committee today continued the greater parI OF
a. dov and fnished the examination OF Mr. Lyon
"a NJ Johpson. The former completed his very
;,,orosting history of the connection OF Minister
Sobo,ck ex-senator Stewart, and Irenor W. fark
;,b the sale of the Emma Mine III London AS
oAl;tional evidence of the worthlessness Oh the
nine ne read an extract from an Official report oI
tbe English Superintendent, dated Oct 20, $780, III
which he said :" that its present condition was most
dsplorablen He gave some particulars OF the h'gh'
of the water in the mine, and the consequent ue
tructon of the interior works, and called attention
10 several previous reports which Le had made Oh 'ho
subiect lie concluded by saying that the mine was
exhausted, and that its future Vaiue VIII oepenu
upon the solution of an important geoiogleal ques
uou. which "will require time and great expense
About two hours were spent by the Committee In
,bo denomination of Mr. Lyon. Mr. Hewitt of
New-York asked series Of questions to determine
wbether some other explanation than that based on
the snpposition that 500 shares we're gwen to Gen.
scbenc. could not be made consistent with the cir
cumsranS= which Lyon had cited to sustain his
theory The witness, in reply, introduced some cor
respondence between Mr. Pa1iord and Gen. Schenek
which took place in 1878, and letter of the former
10 The uiRiHg HOTH The tendency OF 1t all was TO
sustaIn the theory that Gen. Schenck was bnbed
II did not positively prove tho assertion that Gen.
schenck had never paid for his stock, but it made
such an assertion seem probable. Mr.. Patford, who
was stockholder, had 1t seems. originally written
10 Gen. Schenck to ask his advice, in view OF the
rapid depreciation in the value of the stock and
Gen. Schenck had replied, informing him that he
himself still held his 500 shares. Subsequently
ton to some very ugly rumors then aoat, affecting
the character of the American Minister, and this
letter as well rs one of the same character pub
hshed in The Mining WOrld, and to which Gen.
Scheucks attention was especially called,
was never answered. Finally Pafford addressed
letter to Gen. Schenck in which he related cate
corcaly several of these scandals, and asked an
explanation. Gen. Schenck in reply appointed an
Interview TO take place on the next Sunday morning
PafiOrd reported to Lyon the particulars of TINS
interview Gen. Schenck said that he did not know
much about Lyon, who was Pafords authority Tor
the statement that he had made, but believed him
10 be an adventurer and appealed to the latter to
know il he did not think that his Gen. Sehencks 81
name and that of Senator Stewart were not suii-
eient guarantee PaffOrd also asked Gen. Schenck
how he obtained the money to pay for his stock.
Gen. Schenck replied that he had patrimOny from
his fathers estate, amounting to $4,000 invested
In a coal mine in Wisconsin He borrowed Sc5 900
on this property with which TO pay for One-half of
the stock and the other $25, 900 he borrowed from
Mr. Park and had not paid 1t all back at that tune.
The witness never knew that any authoritative de-
NAL Of the report that the stock had been gwen to
Gen. Schenck had been made until he saw Gen.
Schenck's testimony taken in London year ago.
Mr.. Hewitt also asked the witness in regard to the
btNeIa upon lllC tonulllOh VI luc
we're made by experts Two reports seem to have
been made by Prof. Blake, in one of which Prof.
Raymond joined The first of Prof Blake's reports
was not satisfactory to Mr. Park who said that he
had paid So 900 for it, but that he considered it
failure and that he would not attempt to sell the
mine on such report. This document, Lyon thinks,
was never accessible TO the public in London. The
second report made by Prof Blake was somewhat
notified, but was still unfavorable. Prof. Sill
mans report was dated Oct. 49, 1871. Slas VIII
lams the superintendent of the mine, sent TO fix il
up preparatory to this report, had been there
about three months. Lyon did not think
Il possible that a mining superintendent
could "fx" mine in such a way as TO deceive a
competent and honest ReolOgst who actually per-
formed bis duty in making an investigation, but il
The gcOlOgiSt had confidence in the superintendent
and was unsuspiciOns the latter might possibly
"iO0l0 him terribly. The witness did not seem to
have much confidence in the honesty of Prof. Slli-
mans report. and gave a number of reasons for his
opinion, which Mr.. Hewitt said were stronger than
any he had ever heard presented. Mr.. Hewitt also
Informed the Committee that Prof. Slliman had
denied many of the assertions, now made by the
witness, when coming from different sources, and
that the Professor would appear before the Commit
Tee and give his version of the matter
After the Dissemination of Mr.. Lyon, II. A.
johnson Of New-York, who in 1871 and 1872 acted
as consulting counsel for Mr.. Lyon, introduced
As witness, and gave history Of the mine and Of
le sale BY the yenders in London. He said that his
nst acquaintance with Senator Stewart was in Lon
con In the latter part Of May the latter brought
MN letter of Introduction from Mr.. Lyon. The
senator in the course of several interviews, which
'oOk place soon after asked the witness in regard to
We possibility Of selling the mine in London. Mr..
Sohnson told him that in his opinion 1t was simply
POCKET mine, not a true assure, and that it had