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

nature the offer to sell the stock upon credit without the
without the payment Of any Interest the loan tile In
demnity against ultimate loss by agreeing to take back
his guard against the dangers OF connection with
| ciates who mado such tempting and such unusual
| offers.
Moreover, more critical examination of the docu;;
mens which were submitted to him would have enabled
linn to have discovered discrepancy which should have
kept him from giving the weight OF his name to the pros
In the statement by Mr. Park to Coates and Hankey at
the time when Gen schencks attention was first
S Ss TONS by pTsss
9wners sS 9 pugchased .pri 2555 Sp 10 Sept l.
In the prospectus in which Gen. SchencKs name ap-
S d aa . of mine
m LIST May % LIST sepmosr equal 70 d9nr months WORKING
uis probable mat Gen. Schcncks attention was not
70 s O i 's as snSw tine
legitimate sphere OF his official duties into the region OF
| private business and speculation.
Gen schenck testiflos that he had doubts to the
proprley Of identifying himself with commercial or
to him these doubts could have been resolved
without risk TO his character and Official position by
referring to the standard authorities on international
law to his colleagues III the diplomatic corps, or by
consulting his Government at home from whom he could
have listened TO the seductive arguments OF those I'M
| mediately about him, more concerned for their own
profit than for MS reputation. and holding out induce
ncnts TO him which should have made him dOuDly eau
Having thus placed himself in false position with his
own Governments b. Identifying himself win private
enterprise regard to which he himself hid grave scru
pies without consultation with Secretary Of State,
aud having Tcccpted pecunary fayols ir IN tue von1
doris OF the property, winch dsqualed nm on moral
grounds frori.assimng the duties OF trustee ne never
thelcss did ndvanco OF the sale OF the stooS become
director OF the proposed company, and therefore as inc
agent of tie vendors joined IN the invitation TO
the publlc TO subscribe for its shares without
informing the subscribers that his dividends had been
guaranteed him. and that his shares had been pro-
cured by previous arrangement without any r,k % osi
agreed lko the shares off his hands nc any time at
further false position with the public for tho req
son that no could make pr1, only H9 9y nra sHe
permanently valuable not, while the pubic were sure
to make loss in case the representations oil the pros,
pectus should provo TO be faacouS, whie he couit
make lie IN fact IN the position not merely
Of VENDOR RETAINING from ne ~, m anon OF kna 'v'
but OF trustee ound by the Obligations oil ms tr" 10
those FOR whom he proposed TO act OF his true
In the recent 4 Toohe agt; MeDougall. as re-
ported in The London Day feogrdph May ., 1876, hav-
ing reference Emma ane, Mr.. Justice Grove uses
ts IooSS nrSn ts pot miles, by pub
lie and open vote OF Lac Sonps Hsey Ss g 20 in
be and to let their names be
exoei upon the pTspegt1 o aa not Sone o 1 S
asa who Mere called honoraS ne Tsin Wy NV hs gaIi
TO believe iat taey were men 70 hat invested her own
Position coad 9e rlao- but II the directors al
was NOT fcai oao aHy which puOlo
tach TO the names would be misplaced.
Throughout all his testimony, Cen ocncncg seemed 10
| he perfectly unconscious OF the improprlety %
this action, and seemed To regard II as matter purely
personal to himself and Mr. Park, IN when the other
shareholders and directors could nave no concern; nut
Minister Is not only puI forth IN tne prospccts a.
director, but voucher of the exceptional
own statement it subscribed puD.icly Tor
10000 OF ;ho stock, apparently upon the same terms rs
the other subscribers but IN reality upon private ar
raDgomoni. previously made win the vendors IN whicn
put money ut risk aud was absolutely guaranteed
against loss IL cannot denied that lac occupied posi-
which cannot bo defended IL Is no answer To TINS
statement that Cen schenck did IN reality loso money
by tno operation II dit II because IN the hope
OF making greater prOnt lac refused 10 tIkr Inc pron
when might have had nj the iiie "heh iath oheed
Ia relic -
SECRETARY rIsn's DIsAPpRovAL-
As matter OF course high nnctonary who had thus
placed himself in false position with his own Govern
mcnt and with the people OF the country TO which he
WAS accredited must have expected that his action
would not long pass without adverse criticism; but Cen
schenos appears have thought 1t very unreasonable,
long after this that some comment wa, made in
cliy upon beng member Of boad OF directors
company which Was onr.nR PIoDg r 90 ma en- ,'rs ~
annoy e mo As YOU iAy S,y wei u i , i,hu, - "
when tlns comment MAZE up %y G.pd az once wa,
mistake IN oonsendns uicr ans circumstances 10 De oos o'
the managers OF the COMPANY. ~,
Tnorcupon he sent tc following Telegram 10 TIC Sccro
ris, q Se et,,e OF STATE WasAfngtons
Am SURPRISED pin,d by siesrams from United States
iia%s no pseanary is0fci except shcb,
after a%G ia e 70 sI Sy i wa. .cea by %
specialize Americans to a. %,h EeI n5 az fnT~ S
bseyo valuable property Perhaps made mis-
meni and counymen, have deemei Il wrong ictry
withdraw board do whatever you advise Ml not
ea,Darrass ADMINISTRATOR: 1871 S'hh''A' iN""o"'
IL viii be observed scnenck here alleges that
fop the shares which head lac had paid dollar Tor DOT
lnr;" that lie had raised means 10 invest IN Othsr
words ne had msdo purchase OF stock for cash
The truth IS, as appears Dy ms own teS' , ~
| that he had paid one dollar IN money TOT lhe
stock but had given is note TO Mf rarh ISr tie "Io
amour. In advance OF the issue OF the pIospc'u Is
| also apparent from his own statement llt hc
in the purchase tins stock; that II IN realty
a speculation for which he borrowed from tue 'ehutr
lion Of making profit out OF the stock but
was guaranteed against loss IN case 1t should IAN III he
Was not an statement of the iuets The state
he was solicited b. trspectaDe Aneflean ms
To act with gentlemen OF known bgh character as III
rector was also incomplete in not stating that these
respectable Americans" ere the vendors of tho prop
| erty who had loaned him the means To invest
10 This lcc gram Gen. Schcnck received tho Following
'''' u DErGETMEsT or STATE Dec. 2s 1871
nr6 bubble oacer you have the right every
zo1 to shaehod,r and TO invest your money IN saSh
public haveany nsh' u cri'ise OF 10 o''
The adysr,sement Of diplomatic represents.
OF the Government as director OF company te1
dispose OF its shares IN ihs county 20 %sn a. - him
~ isea i ni IL IL assumed tnat tho OF
that Of tns agents Company without consultation with
arc advised withdraw name from tho
az - !" ne observed that the Secretary arns
tho full right OF Gen hcnek TO- invest ms MONEY ~
bones terprscs" but distinctly disapproves the con
necton Of diplomatic representative OF tho Govern
| shares in the country To which ho ~ ao
credited" that no characterizcs tho advertisement y,
such connection as a director g III advised ana
unfortunate and calculated 10 subject him TO crcisn
nd t,l ne assumes that the advertisement In the Lon
Jnn Journals was Of Cen Schenck but thht OF
The agents OF tho Company, without consultation w,n
| him the testimony OF Cen schenck shows that thls
VAS not the fact but that the prospectus was Nsneu
and ndycrtiscd with his full knowledge and CONSENT no
,iS,nnroyal OF tao Secretary of state was, thero-
| fore by Implication. full and conclusive. fiha1'
Gen schenck Is ,sty advised ~ Withdraw MS h:he
ron, the management the Company Tlis dispatch OF
tns secretary state H. therefore, tho oicia oSop