New-York tribune., 1876-03-29
THE EMMA MINE FRAUD.
GEN. SCHENCK IN HIS OWN DEFENSE.


MS STATEMENT TO THE CoMMnTEE-THE EMMA
NINE STOCK BOUGHT IN GOOD FAITH-HE LOSES
$4,000 BY 1.-THE GENERAL DEMANDS THE
RIGHT TO CROss-ExAMINE LYON.
WASHINGTON, March 2s.-Gen. Schenck appeared
before the Committee on Foreign Affairs to-day.
bringing with hln satchel filed with papers He
privately complained of being weak, not having
fully recovered from bis recent attack OF sickness
Ex-senator Stewart and other gentlemen connected
with the Emma mine transactions were present. MI
Schenck read the following paper:
desire respectfully TO state TO the Committee that
testimony Of James f. Lyon and Hiram A. Johnson on
which the charges against me appear to be founded Inc
and without any opportunity for cross rms
Mine by Messr Park Baxter, and Stewart TO the Emma
Mine Company Of London was fraud ana tnat @ 10 TUE
ance of my name and official position The charge Il
grave one. and ask ior the most full INVESTIGATION
before the Committee left London learned
from the wspapcs what action had been taken, and
my vindcaton upon the simple statement OF
in from T6ieh win appear that unT belief IN
the value Of the mine and the honesty OF the sale or H.
tanned a large pecuniary loss But the Committee
have received evidence growing out OF the previous ms
little value aud the sale Of 1t fraudulent, ana TINS
evidence has been widely published. deem II suitable
to my complete yindcatOn that the Committee should
hear testimony upon these points.
prepared TO lay before the Committee unquestion-
able evidence which has been taken Is fase
that the witnesses who gave 1t are OF Infamous character
aud not worthy of credit under oath that the sale OF the
mine was fair honest, and straghtiOrWaId, without
falseh0od or fraud, and made by men VINO hau pald
large sum Of money for IT, and implicitly believed ~ Its
representations by the sellers put upon he exact ac
OF the ua product Of the mine for nearly
year before the SALE upon careful survey and exam
natiOn OF II by competent persons employ by the Duy-
ers for that purpose tne mine continued for more
monthly dividends that the confidence of the sellers
IN 10 was after their interest had been sold and
paid for them purchased largely OF the stock at
high prices and also loaned the Company large sums OF
money that the subsequent failure OF the mine was
owing TO mismanagemen In its working tnat tie nine
is today, properly worked in all probability as val-
able rs IL claimed supposed to be- and hnay that
SO far as 1 know believe, parties III England VINO
were concerned in its original purchase Lave never
claimed that any fraud oriposltlon was pfcucea Ger
them, that claim having been recently set up by those
who have bought the stock since the alleged Iauie oi
the IN a nominal price.
il Will be apparent to Committee that this proof
must involve the Interrogation oi considerable number
ot witnesses; that tue evidence ealhot nc
cept through the means universally employed IN JUDICIAL
tribuuas-lhe examination OF he witnesses Dy cohpt-
counsel acquainted with the case subject COURSE
further questions AS any lnenD'r vi the ,oihl
tee ma, wish TO- put dnat 20 eVauS. , Eno es or m snc
desuory and imperfect examination as must Oe lhad
by q committee not informed by the facts WOuiu
upon the testimony. and wonld tend 10 op-
Lave therefore respectfully request OF tue Committee
that the usual privilege OI me assistance Vi plUtG
sti"n OF The witues,es WHO have testified against
for the examination of those whom desire 10 poduce
Should the Couittee pleased 10 acceie 10 thls hy
request, cannot DOUBT they VIII, WIZ pe rcduy 70
proceed with tue crossexamndtlon oi the wesses OF
Inv own statement, the Committee may thlhk most
RoBEET G. bCHENCK
Mr.. Faulkner and Mr.. Swami also remarked that
the Committee would give Gen. schenck every iacl"
lty, with the aid OF counsel.
Gen, schenck then gave crcumstantial account
a., ,la Ua 9aII
that in October, 1871, he met, at Edwardss Hotel,
in London. ex-senator Stewart and Mr.. Park at the
table of William NJ. Evarts of New-fork. lie
was not sure whether it was at the table or at
subseauent interview, Mr.. Stewart said something
about the purpose Of his visit to London, and Ill
formed him that he and Mr. Park were interested III
the property of the Emma Mine, and were deslrous
of putting the stock the English market and that
they were then engaged in negotiations lis atten-
tion was directed to what MIR. Stewart
called the Little Cottonwood Canon in
Utah. He represented that when at the
Land Office in Washington, just before he left the
limited States for London, the Commissioner exhib-
tied some rich silver ore found in the Little Cotton
wood Canon. RevertiDg to his sojourn IN London,
and to his there having met Mr. Park Tor
the first time, and after hearing OF the OBJ
iect of the visit Of Messrs. Stewart and Park,
and their conversation as to the Value VI
the property the suggestion was first made by MI.
Stewart to Gen. Schenck that the latter ought to be-
come interested in this valuable property the finest
yet broupht ont. Gen. Schenck answered that he
had no means to invest and if lie had he would not 60
into the matter unless he could considerably add to
his income by taking considerable number of shares
He finally consented to look into the matter. Mr.
Stewart told him that Mr.. Park would assist HIM,
and would give him time if he would take ooo
baras ar make an investment Of some degree OF inn
nortance. Gen Schenck wished to know the value
of the property. They gave him diagrams OF the
mine, aud showed him statements OF the WORKING
operations, the sales of ore at London, Liverpool
and Swansea, and the balance in bank. They also
told him they had report on the NINE iroh lfol
Silliman. showing the value of the mine. A day or
two after this conversation they showed hlm Prof.
Silliman's report and Gen. Schenck finally made up
his mind 70 invest in the mine if Park would let hlm
have the money on time, say for year, Mr. Park
ba wing many shares. This matter was settled be-
tyycen Park and himself about the 1st of November,
when their agreement was reduced to writing and
executed. and it is not true, he said but utterly
false. that the agreement was written or executed
nj any time prior to the date 1t bore.
Gen. Schenck then exhibited the agreement for
500 shares Mr. Park promising to give Gen. Schenck
two per cent month on the shares while they
should be held by him, or take them at par. AT
Parks reouest Gen. Schenck subsequently agree
ing TO reduction of one and a half per cent, Gen.
Schcnck had gwen his note to Park for 10000.
For I3 months Gen. Schenck continued, he and
the other stockholders received 1i2 per cent
month At the time he made this agreement there
l,od haen M orpanization of a COMPANY At the