The Portland daily press., 1882-03-23
THE PERUVIAN COMPANY.


President dated April 49, 1881, which was
alluded to in his testimony yesterday, and In
which he opened negotiations upon the SuoJect
of the Peruvian company. The letter was READ
by the chair In this letter Shipherd states that
the interests of his clients in Peru are so great
as to entitle them to consideration in the dis
cussion of any plans affecting the future OF the
PROSTATE republic. He further states that the
purpose of this note is that decision on the
appointments of ministers to Chilli and Peru
shall be rererved until the facts relative to
the claims of the company shall have been
laid before the President.
Shipherd stated that he had not yet found
the letter of May 81 but had written to his son
to make a copy and send to him, and he ex-
pected to lay it before the committee in few
days.
The chairman announced that the committee
would in tnrn ask such questions as they might
desire relating to matters under discussion
yesterday
Representative Kasson asked if the witness
knew of any instance in which Hurlbut's official
action had been purchased.
Shipherd replied that in the statement he
had made yesterday he spoke from his knowl-
and which came under his notice az the time
and from which he had formed Ills opinion of
Hurlbut. In connection with this opinion and
in further reply to enquiry he called attention
to a decision of the United States supreme
court in the case of Clark against the United
States in which it was shown that Hurlbut
while in the service of the United States at
New Orleans accepted bride.
Representative Kasson then asked If IN all
his (witnesss) correspondence with Hurlbut
the latter ever intimated that he desired to
have an interest in the Peruvian claim.
Answer-No sir ;she never did.
The witness stated in further reply that no
officer of the United States in the diplomatic
service or otherwise expressed any desire or
| listened to any proposals for interest in the
oIotr, IF no Paru
The witness was then asked by Repres enta-
| tive Kasson, "Who now holds the Landreau
| claim" He replied, "It is now held by
Americans but could not without violating
parties" The legal name OF his (Shipherd 81
company, the witness stated in further reply,
| is 1.-THE Peruvian Company incorporated un-
der the laws of Georgia in 1870 and every
share of stock is held in this country. The
! witness declined to state how much had been
paid in for stock, or from what parties the
| claim was purchased, or whether the original
| parties were paid for their claim in stock of
the new company, or whether the company
has ever taken possession OF any property IN
Peru, or whether they have resident agent in
| Peru. The witness stated that the company
have notified Peru of their claim but have
never received any reply in acknowledgment
| of the claim. The Peruvian Company has
never had any official correspondence with the
| Peruvian government. Whatever advices the
| CUmpduy LAS IoCClFcu nave uCOA ACCcifOu AAoii
| private sources.
Representative Kasson explained the object
| OF his inquiries to be the discovery whether
| the allegation on which the investigation is
based, that the Peruvian Company was pure
! ly speculative enterprise dependent for its sue
cess entirely upon the Intervention of this gov
| eminent is a true one, or whether the claim OF
4 the company is a solid one and its business
such as American citizens have perfect right
to engage in. Shipherd then went into long
explanation of his connection with the Peru
| Wan Company which began in March, 1871,
| when he became counsel for his clients who
purchased this claim. The witness recognized
the magnitude of the interests involved in the
claim and opened negotiations with Governor
Boutwell, with view OF securing his aid as
counsel upon all matters affecting information
| al questions Boutwell, examined the papers,
! and after three weeks called upon the witness
| and stated that the claim was good and
| that he was prepared to lay it before the Presi-
dent. Several conferences ensued as to what
| cousel should he employ, but at no time was
anything said in favor of his official station or
| relations.
| The witness discussed with Boutwell, the
| question of renewing through the Secretary of
State the negotiations which had been begun
| with the executive, who had since been dis
abled, and suggested that Governor Boutwell,
shoald undertake to open negotiations. About
| that time, however, it was suggested that a
certain Senator whose name the witness de-
clined to give, being warm personal friend
| of the Secretary would perhaps be the best per
son for that delicate mission. Boutwell, ap-
| proved it, and shortly afterwards the witness
| had an interview with the Senator at his wit
ness's) Office in New York, lasting about four
hours and in which all the papers were sub
| mitted to the Senator. The witness asked him
| if he would accept retainer in the case as
COUNSEL and the Senator replied with vehem-
ence, mo, sir, under no conceivable circum-
stances. You can readily see that this matter
| might come before Congress in some shape for
| its action and it would be manifestly impro-
per-" The Senator added that we had no need
| of counsel in the sense had mentioned, that
| we had simply to lay our case before the Score
tary and President. The whole country was
| interested and it was his duty as Senator to
! on his way from his home in New Hampshire
--(At this point there were visible signs OF
| amusement, IN view of the witnesses repeated
| refusas to disclose the name of the SENATOR
| to Washington, and he stated that he would be
pleased to bring about for me an interview
| with the Secretary of State.
| The witness waslasked how he came to obtain
| charter under the laws of Georgia, and ex-
planned that in looking about for the most fay
/ orable conditions he heard OF charter which
| had some time since been granted to Duff
| Green, by Georgia, and which contained such
| extraordinary advantageous features allowing
| the establishment of branches at any point in
the country or abroad, that they decided to OBJ
tain this charter. The company is now acting
/ under this charter and stock has been regular
ly issued, and under the clause permitting
branches they have established their head
| quarters in New York city.
The witness was again asked if he still had
objections to giving the name OF the Senator,
| and replied
Since SO much has been said in this connec-
ton, perhaps it would be better that I should
| right here and now give the entire history OF
the connection of this Senator with the Peru
| Wan company. Ihave already spoken of his
refusal to take retainer. At subsequent
4 of State and several friends in the Senate and
| House that this case could neve come before
| Congress, but would be settled in the State de-
| partment, the Senator did take the place as at
orney for the company, and acted in that capacity
| for nearly four months. His entire connection
| with the case was during recess of Congress.
Shortly before the reassembling OF Congress in
| December he had another interview with me
and stated that he was satisfied that questions
| involved in the affairs of the company would
| come before Congress in a manner involving
| legislative action and he could not, therefore,
reconcile his position as counsel for company
/ upon whose affairs he might be called upon to
pass in the capacity of Senator. He there
| fore returned the amount of fee he had taken,
| not even reserving what he had expended in
travelling expenses in the interests of the COM
pany From that point all connection of the
| Senator with the affairs of the Peruvian Com
| pany absolutely ceased.
The witness was asked If he had ever had
correspondence with any other foreign minis
| tiers of the United States besides Hurlbut, and
| replied that the correspondence with Hurlbut
| and two letters to General Fitzpatrick compris-
| ed all the correspondence he (witness) had had
| with foreign ministers of the United States
| abroad.
| The witness had personal interview with
| General Adams, American minister to Bolivia
who was in this country last summer. 1t was
| however, in relation to a possible establish
ment of commercial relat ons between the Pc
ruvian company and government of Bolivia.
| 1t was matter that could in no way become
| the subject of diplomatic inquiry.
| Pursuing the line of inquiry. Kasson said,
GAS you have mentioned Kilpatrick's name
| and he is now dead, will you state exactly
what correspondence passed between you and
whether he ever in any way intimated any de-
sire or intention to further the plans of your
| company"
Shipherd replied, Fitzpatrick never replied
| to either of my letters. I never saw fitzpatrick
and never sent him any message by the hand
| of any one. Two letters of mine to Fitzpatrick
made up the totality of correspondence with
| him.
The witness was then asked if any other per-
son holding any official relations to the United
| Stotoc oouorn nant or nffica undnr the govern