The Eaton Democrat. (Eaton, Ohio) 1875-1903, 1876-04-06
The Emma Mime.

mittee on Foreign Affairs March Is, bringing with
him a satchel filed with papers. He privately COM
planned Of being weak, not having fully recovered
from his recent attack Of sickness. Ex-senator
Stewart. and other gentlemen connected with the
Emma Mine Transactions, were present.
The COMMITTEES agreed to give Mr.. Schenck every
facility with the aid Of Counsel.
Mr.. Schenck then gave q circumstantial account
OF his connection with the Emma Mine. After a
few preliminary remarks, Mr.. Schenck said that in
October, 1sn, he met at Edwards Hotel, in London,
ex-senator Stewart and Mr.. Park. 1t was at the
table Of William NJ. Eyarts, Of New York. He was
not sure whether it was at the table, or at a sub
about the purpose of his visit to London, and in
formed him he and Park were interested in the
property Of the Emma Mine, and were DESTROYS Of
putting the stock on the English market, and they
were then engaged in negotiations. In making. this
communication to him., either at the dinner table or
a~fterward, his attention was directed to what Stew
art called the Little Cottonwood Canon, in Utah.
BE represented that when at the Land Office in
Washington, just before he left the United States
for London, calling there for the purpose of effect
ing the promotion of q clerk, the Commissioner ex-
hibited some rich silver ore found In Little Cotton
weod Canon.
Reverting to his s~ojourn in London, aud to his
there having met ParE for the first time, and after
hearing Of the object Of the visit Of Stewart and
Park, and their conversation rs to the value Of the
property, the suggestion was first made by Stewart
70 Schenck that the latter ought to become inter-
ested in this valuable property, the finest yet brought
to invest, and If he had he would not go into the
matter, unless he could considerably add to his in
come by taking a considerable number of shares.
This led to a conversation which increased his
interest In the subject. He consented to look into
the matter, to see whether it was worth his while
to invest provided he could obtain means. He
thought Stewart was exceedingly anxious he should
have the opportunity to profit in toe business He
told him (Schenck) that Park would assist him, and
would give him time II he would take five hundred
shares, or make the investment OF some degree of
importance. Schenck wished to know the value Of
the property. They gave him diagrams Of the
mine, and showed him the statements of the work
ing operations, sales Of ore at London, Liverpool,
and swansea, and ths balance in the bank. They
also told him they had a report on the mine fIom
Professor Silliman, showing the value of the mine.
A day or TWO after TINS conversation they showed
him Silliman's report, and Schenck finally made up
his mind To invest in the mine If Park would let
him have the money on time, say for a year, Park
having many shares. This matter was settled be-
tween Park and himself about the LIST of November,
when their agreement was reduced to writing aud
executed and 1t was not true, but utterly false,
that the agreement was written or executed at any
time prior to the date it bore. Mr.. Schenck then
exhibited the agreement for five hundred shares,
Park promising to give Schenck two per cent. per
month on the snares while they should be held
by him, or to take them back at par. subsequently,
at Parks request, Sehenck agreed to the reduction
to Cne and one-haH per cent. echepck had given
his note to Park for 10000 for thirteen months,
and Schenck and the other stockholders received
one and one-half per cent. per month. At the time
he made this agreement there had been no organiza-
ton of the company. At the time OF its execution
there was no suggestion whatever that he should
nave anything to do with the management of the
company. Afterwards, however, PARK and Stewart
thought Schenck ought to be one of the managers or
directors OF the proposed company. Schenck dis
somebody sojourning in London to protect their in
terests. This seemed to be a plausible reason, but
he still objected, saying that he doubted the pro-
priety of his having anything to do with the man
agement while there in his present active capacity,
unless he could be satisfied that there were prece-
dents of the kind. If this should be done, another
condition would have to be complied with. He
must know the names of all the Directors, as he had
thus far heard the name of only one person who had
been asked or agreed to become q Director. On the
Sd of November the names Of such persons were fur
nished him. He was not acquainted with any Of
them, but he learned that there were among them
members of Parliament and other gentlemen in
high position. The precedent Of a Foreign Minister
holding Office In a joint stock company was found in
the Minister from Portugal one Of the Oldest and
most respected Of the diplomatic corps, who was
President Of the Tramway Company in Lisbon, the
stock of which was being put on the market.
Schenck had nothing TO do with the preparation of
the prospectus Of the Emma Mine Company. Gen.
Schenck said when he went into the business he did
not know that there was such a person as Albert
Grant, not being acquainted in stock or financial
circles. Schenck sttended only two meetings of the
board, on the 18th and SOth Of November; having
resigned in December, he never went near the
Board of Directors or the company again. He
took no part in the management, except
giving q proxy to vote against Gardner's
scheme. He related how he and a friend bought
so shares in open market at ESQ or fSi a share, and
arranged with Jay Cooke, McCulloch & Co. 10 carry
that stock, putting up as margin f2,t00 gained by
the purchase and sale OF previous shares. Eventu-
ally the shares were sold at ETA per share. In a
subsequent part Of his statement General Schenek
calculated his losses in such specularons al $4,000
or S60,O00. OF the so shares he originally obtained
from Park, he sold % shares to Mrs. Bates, receiy-
ing EGO 4 share. He womb have sold the remaining
shares but for the fact that he had been so much
abused ard criticised. This determined him to re-
tain his shares, which h. now he'd. In explaining
the settlement with Park, General Schenck said he
gave to him the ESQ., he rcceiy.d from Mrs. Bat
and FL 1894 in addition. There was a credit of e., 500
on a note which he gave to Park, and which note
had been returned TO him. This amount Schenck
did not understand till his final settlement with
Park. 1t seemed Park had some arrangement with
Grant for the payment Of a commission to him oil
shares, and that Grant gave Park a commission Oh
the sou shares held by Schenek, Of which Park sal
Schenck ought to have the benefit. as it belonged t1
him. As. to the payment of remaining indebted.
ness TO Park, the latter told him that he need moi
trouble himself, and that he felt as safe without Sc.
curity as with it, as he knew it would be paid
General Schenek then related how he paid the re-
mainder of the amount due TO Park in stocks, etc