New-York tribune., 1876-02-21
WASHINGTON.
r,,p11Is AND I'll. PASO SCANDALS.

MAN nIs IItUTENANT AND PARTNEh-l"N
SOUTHERN LAND AGENCY.
lBY TELEGRAPH To THE TRIBuNh'
WASHINGTON. Feb. 2O.-Gen rIec'. 80
vet given the House Judiciary Committee 'io oo"O
Cir of his knowledge of the TRANSACTIONS co''io''O
with the Memphis and Ell Paso ioDoy' lhclo ''0
charges that besides the vast amount vi "oi
stock-then supposed to have tuture Vaiue' VIM"
.,o, ,romiscd for influence about the balls OF Con
Vress-t.ers was really expended mere ioi oo
rupt purposes 100000 III gold. 1t is SAID tia'
Cen. Fremont has the list of the persons to whoh
this uonev was paid and that several OF them are
,omhers of the present Congress. The name OF "1i'
c.heuck IL also mentioned in connection Win thiS
,rvestigation and It is anticipated that he may DC
ueedrd here as a witness. The reasons why DIS
ounearauce as a witness here would be opporIuhe
NAV be found in the following facts: Gen. schencK
first became associated with tins enterprise
when Chairman of the Committee OF ways anu
Means in the XLth Congress. ABOUT tha' 'iiue "oh.
Fremont had sold in Paris chiefly to persons vi
sp,ou means S3 500. 900 of the worthless bonds OF
,be Mcmphis and FL Paso Railroad. Minister Wash
burne ha expo.ed the enornity of the fraud
A,out that time Gen. Schenck abandoned IN CHI
cago portion Of the Committee on ways anu MEANS
that Ead started on an official investigation for Cali
foruia. and su denly, without explanation, left for
able comment among Gen. schcnck's associates.
Gen. Fremont, then vicc-PresOent of the Memphis
and FL Paso Road, sailed from New-lork about the
same Time aud reaci Paris in July, where he was
subsequently joined | Y Gen. Schenck. lie then set
about to defend the tlaud.
Ge1. Schenck then appeared not 20 support Minis
ter Washburne i'll denOuncing the fraud ana III his
attempt to expose those who were disgfacing the
American name by their huge swfndle, as from his
position in the House of Representatives ana hlS
former relations to Mr.. Washburne it night Lave
been well said he would have done, but to enter INTO
n written contract with Gen. Fremont in which the
Southern Land Agency is only another name Tor
Gen. Schenck and his nephew, fred.N. f0Or. belo"
is bri analysis of the agreement between Zen.
Rchcnck Chairman of the Committee on ways anu
Means and Gen Fremont, then Nice-Presdcnt, ana
Colby. agent of tie Memphis and FL Paso Company.
1t bears date Oc,. H. 1869 at Paris France and rs
made between the Memphis and El PasO Company
and the Southern LAID Agency, claiming to he a
incorporated company of Virginia, with Frederick
w. Poor as general agent
The contract provides that the Memphis and Fl
Paso Company agrees with the Southern Land
Agency for five years TO give that agency the cx-
elusive night to manage sell, and dispose Of three
fourths of the S,00O.0O0 acres of land owned by
tnat Company IN Texas. This contract is 10 embrace
any lands that the Company might obtain from
Texas OF the United States within the five years
limit. The only agreepients and undertakings
Of the Agency in consideration OF tins
contract, far as they appear FROM
the contract itself, that it should use reason
able efforts to promote emigration" and maintain
agencies for that purpose. In consideration OF
these services and undertakings the Memphis and
FL Pasc Company agreed to pay the agency i per
oo, M, oil lands sol1 in IS=0 ner ALI
lands Id in 1871. and 10 per cent ali payments
received for sales after 1871 AL town sites were
to be owned Jointly by the FL Paso Company and
the agency. Gen. Sehenck contracts in this way:
"Robert C.. Schenck, attorney IN fact fr the South
ern Land Agency. aud for Frederick W. Poor, gen
efal agent"
Gen. Schcnck soon after returned to Washington,
where the Memphis and FL Paso Railroad had mat
tiers of interes; pending. The house bill relating Ia
Il at road was pending in tire Senate. Great efforts
making TO pass it, and Unlimited promises
circulated in the lobby in connection with the
scheme. During the Christmas recess Gen. schenck
visited New-York to secure the ratification Of his
contract. On the 2sth of December, Gen. Frc
mont reached that city. when an additional
agreement was signed in duplicate between the
same parties, with Gen. Schenck and Gen. Fremont
as attornies. his new agreement ratified in behalf
of the Memphis and FL Paso Company tie previous
contract made in Paris with some notifications.
These notifications did not change the spirit or
substance of tho original contract
After the Memphis and FL Paso and Southern
transcontinenal corporations had partially adjusted
heir dffsrsl ces and the Texas Pacific had been
corporated by Congress in 1877 as a cOmproInisc
road, these contracts presented in New-fork,
OIL the part of Gen. Schcnck, to the officers Of The
new corpuratiOn and a recognition OF their terms
demanded, coupled with a threat that unless
they were recognized the Texas Pacific
Company would suffer for it. The cash
value of these contracts, lad they been
carried out would have been very great. The sale
OF 100000 acres put IN the hands Of Gen.
Schenck and his nephew. Half of all the town
sites, and the commission upon the aes1f all addi-
tional land for FIVE years, would have alone been a
generous reward for the assistance of the land COM
pany OF the Chairman of Ways and Means. The
snm realized from commissions alone would have
reached 81 100000.
Tie contract bore upon its face fraud and lie.
An examination of the records of the State of Vir-
gnia shows that no charter was granted to the
Southern Land Agency" either by the Legislature
or by courts authorized to grant charters. The
Company advertised by Richmond paper, but
no charter cOrporstors named, and the whole
affair appeared to be partnership. 1t simply
screen.
GEN. SCHENCK RETAINED.
ANOTHER ILLUSTRATION OF PIEsIDLNT GIANTS
PECULIAR HOBBY FIRE FROM THE DIMo-
CRATIC HOuSK DisrNtYs THE HOPE op