The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1876-01-10
EMMA MINE.
LETTER FROM HON. REvERDY JOHN
SON.
Roviow of Charges Against United States
Minister Schenck -Vindication Of General
Schorck

In common with every citi-
zen of the United States, I had been much |
at the charges which from time |
to time had been made in this country and |
in ours against our Minister, General |
because of his connection with |
what is known as "the Emma Mine.
Since my arrival in London, therefore, ! |
have endeavored to become accurately ac-
quainted with all the circumstances of the
so far as he was concerned
with them. The result is my perfect conuic-
ton that there is no ground nhdteger for i'm
pedchiny IN the Slightest degree General
Scheneks integrity. For myself, / need
not such an examination to arrive at this
conclusion My acquaintance with Gener-
al Sehenck has been intimate for more
than thirty years, serving with him in con-
gress for nine or ten years, and an observer
of his whole official conduct. Until this
matter of the Emma Mine was started, l
never heard the slightest suspicion cast up
on his private or public honor. And so
firm was the confidence reposed in him by
his countrymen who knew HIM, that,
have no doubt, with them his reputation
remains unspotted. 1t is proper, however,
and deem it in some manner my duty, to
give to your readers as succnctly as may,
the reasons upon which my present judg-
ment is founded Before proceeding to do
this will correct an erroneous impression
which some of his assaiants have created,
either designedly or ignorantly, as TO one
statement of fact, which is, that some legal
proceeding was Instituted here for the invcs-
tpation of the generals conduct in the
matter Of the mine. This is not the case.
The late directors of the mining company
instituted suit in the circuit court of the
United States for the southern district of
New York, against Park, Stewart g. Bax-
ter, to recover the amount paid to them,
on the charge that they had been fraudu-
lently acquired. When this suit was in
sttuted General Schenck bad ceased to be a
director. and was, of course, not one of the
plaintiffs, nor was he in any sense de-
| PENDANT.
A commission was issued by the court to
London to take testimony. When it ar
rived here General Schenck was on the
continent, aud had been there for several
weeks on leave of absence. While there
he received letter from Mr.. Turner, the
solicitor of the plaintiffs, advising him that
he desired to take his testimony. He soon
started for London, and the day after he
arrived here, the commission not being
then closed, he appeared before it and re-
quested to be heard as witness, waving
all objection he could make to it because
of his official position. He was heard, and
then gave very clear account Of his con-
nection with the enterprise. AS | am not
aware that this account has been laid be-
fore the American public, ! proceed t.
| IL l. I'm n ct In Ia,
latter part of October, 1871, on visiting the
Hon. Vim. Nj. Evarts, at his hotel in this
| CITY, General Schenck met Senator Stew
art, of Nevada, whom he had known
for several years, and for the first tint
Mr.. T. W. Park, of Vermont. On thi
occasion no reference was made to thu
mine, nor had the general any knowledg,
of its existence. A few days afterwarC
Messrs. Stewart and Park told General S
of the mine and the object with which they
had visited London. They explained t
him its great value, and inquired of hin
whether he would not take some
of the shares. This the genera
declined to do until he had tim,
time to examine the proofs which the
exhibited to him, among which was re
port of Prof. Silliman. The examination
he afterward made, and being satisfied witt
its result, he agreed to purchase 500 share
at $50 a share, the price which other stock
holders paid, but his means being limited
and the fact being communicated
to Mr.. Park, that gentleman agree
to loan him, and did loan him
the necessary amount to complete the pun
chase. For the security of this loan, Gen
eral Schenck pledged the shares, and CAV
Park, as collateral, property belonging t
| t,,t L. taI G,l1 lt.,n
meet the obligation, and Mr.. Park agree
to guarantee to him an annual dividend q
10 per cent, payable monthly. This divi
dend was paid regularly by the compan
for thirteen months to General Scheme
and the other stockholders. AT the time G
, this agreement no proposition was made @
intimidation given him that Park or Stew
art, or either of them, desired him TO b
one of the directors of the company, nc
: did he receive such proposition unit
several days afterward. Being then tol
that this would enable him to protect hl
own interests and the interests G
I other American stockholders, an
without thinking there was an official in
propriety in SO doing, he consented, an
' was appointed director. What induce
him to believe that there was no such In
propriety was, among other things, tn
fact that company had been formed Ill
der Portuguese charter for the constru,
ton of steam tramways at Lisbon, of whic
the minister of Portual, one of the oldel
and most esteemed at this court, field ma
shall the Duke Of Saldanha, was the pr,
, jector and the chairman of the board {
: directors, and its stock was on this marke
Neither at that time nor since has this ste
on the part of the duke been censured
The guarantee referred to, Mr.. Park haC
by its terms, the right to withdraw at al
time, and did, in fact, withdraw, go tina
u in truth, it was no guarantee at all. Ge
! Schenck was to receive the amour
J. apparently guaranteed, if the div
dends were equal to ii, and nothr
:, really by virtue of the guarantee, when thu
II guarantee was Withdrawn What he d
receive, therefore, was strictly dividend
and when these ceased to be made he T
ceived nothing. The guarantee was of I
It advantage to him whatever, and did n
;. place him in situation better than that
= other stockholders. 1t is impossible
suppose, even If he were a man of differe
5 character, that he could have accepted III
d guarantee under any idea whatever that
doing so he would do injustice TO Il
other stockholders. Soon after the &c
eral became director he, on
Re Election, thought his name ought n
10 so to appear, and at once resigned.
N is proper. also, TO state that before he b
~ came director he asked to be inform,
N who were to be his associates, and this /
ie formation was given him in note fro
Mr.. Stewart, dated the Sd OF Novembe
1871, and was to the effect that they we
a gentlemen of the highest respectable
8 and large wealth, including several mel
,e beers of parliament and extensive manufa
! turers, naming them. His resignation W
sent in on December 6, 1871, when his q
" fetal connection with the company cease
le During no part Of this period-that is
1t say, from the time when he became
II stakeholder and director to the time of
p eslgnation-had any doubt been cast up
the mine. On the contrary, the stock h
}. enhanced in value from twenty TO thr
a pounds per share, and many sales we
. made at the latter price. The immedis