Evening star. [volume] (Washington, D.C.) 1854-1972, 1882-03-22
TEE PERU-CHILI INVESTIGATION.
Mr.. SHEPHERDS DISCLOSURES TO-DAY.
A FEE TO COLLECTOR ROBERTSON.
THE SENATOR VINO ACTED AS COUNSEL

THE SENATOR WHO ACTED AS COUNSEL.
Owing to some Misrepresentation in relation to
the hour OF meeting, quorum Of the members OF
the foreign affairs committee was not in atten-
dance until 1890 o'clock this morning, and the
examination OF Mr.. Shipherd was resumed at 10 :35
Chairman Williams, and Representatives Kasson.
Rice, Dunnell, Lord, Walker, Blount, Wilson and
Belmont were present. Mr.. Shipherd produced a
copy Of
THE LETTER TO THE PRESIDENT,
dated April q, 1881, which was alluded to in his
testimony yesterday, and in which he opened
negotiations upon the subject OF the Peruvian
company. The letter was read by the chairman.
In this letter, Mr.. Shipherd states that the in
tereStS OF his clients in Peru great as 10
entitle them to consideration In the discussion OF
any plans affecting the future OF the PROSTATE re-
public He further states that the purpose of this
note is that decision on the appointments OF min
listers to Chilli and Peru shall be reserved until the
facts relative to the claims OF the company shall
nave been laid before the President.
THE LETTER OF MAY 21ST NOT YET PRODUCED
Mr.. Shtpherd stated that he had not yet found
the letter of May 2lst, but had written to his son
to makes a copy and send to him, and he expected
to lay 1t before the committee in few days
The chairman announced that the committee
would In turn ask suck questions as they might
desire touching the matters under discussion yes
terday.
Representative KaSson asked if witness knew
any instance in which Mr.. Hurbut's official action
had been purchased Mr.. Shpherd replied that in
the statement he had made yesterday he spoke
from his knowledge OF events that occurred many
years ago, and Which came under his notice at the
time, and from which he had formed his opinion Of
Gen. Hurlbut. In connection with this opinion.
and in further reply the inquiry he called atten-
ttOn to decision OF the T. S. Supreme Court In the
case of Clark against the United States, in which
IT was shown that Gen. Hurlbut While in the SER
SfafD Snf npln ,rloo a
brihc.
Representative Kasson then asked If In all his
(witness,) correspondence with Gen. Hurlbut the
Ia tier ever 1ntlmated that he desired to have In
tereSt in the Peruvian claim?
AnSWer-NO, sir; he never did.
QUESTIONS THE WITNESS DECLINED To ANSWER.
Witness stated, in further reply, that no officer
OF the United States In the diplomatic service
or otherwise ever expressed any desire or list
ened to any proposals for interest in the claim
OF the Peruvian company. Witness was then
asked by Representative Kasson. who now holds
the Landrean claim, and replied it is now held by
Americans, but could not, without violating pr-
Vate condolences, disclose tine of the parties.
The legal name OF his {Shipherd's) company wit
ness stated, IN further reply, is the Peruvian
pany, Incorporated under the laws OF Georgia in
1870 and every share of the stock is held in this
country. Witness declined to stIte how much has
been paid in for stock, or IRON what parties the
Claim Was purchased, or whether the original par
ties were paid for their claim in stock OF the new
company, or whether the company has ever t. ken
possession OF any, property in Peru, or whether
they nave resident agent in Peru. Witness
stated that the company have notified Peru
OF their claim, but have never received
any reply or acknowledgment of the claim
The Peruvian company has never had any OFF,
cial correspondence with the Peruvian gov
government. Whatever advices the company
vate sources. Representative Kasson explained
the object of his inquiries to be the dis
ctovery whether the allegation on which the
investigation is based. that the Peruvian company
was purely speculative enterprise, dependent for
its success entirely upon the Intervention OF this
government, Is a true one, or whether the claim OF
the company is solid one, and its business such
as American Citizens have perfect right to en-
gage In.
Mr.. SHEPHERDS LONG EXPLANATION.
Mr.. Shipherd then went into long explanation
OF his connection with the Peruvian company
which began in March, 1881, when he became
counsel for his clients who had purchased this
claim. Witness recognized the magnitude OF the
interests involved in the claim and opened neyo-
tiations with Governor Boutwell, with view to Sc
curing his aid as counsel upon all matters affect
ing international questions: Governor Boutwell,
examined the papers, and after three weeks called
upon witness and stated that the claim was good
and that he was prepared to lay it before the
President Several conferences enSued as TO what
counsel should be employed, but at no time was
anything said in favor OF employing any man on
account of his official station or relations Witness
discussed with Governor Boutwell, the question OF
renewing through the Secretary Of State the ne
gottat1ons which had been begun with the Execu-
tive (who had since been dsabled), and suggested
that Governor Boutwell, should undertake to open
negotiations. About that time, however, it was
suggested that
A CERTAIN SENATOR,
twhose name witness declined to give the commit
tee) being warm personal friend of the Secre
tary, would perhaps be the best person for that
delicate mission. Gov. Boutwell, approved It, and
snorIly afterwards witness had an interview with
lasting about four hours, ana in which ali the ma
perS were submitted to the Senator Witness asked
him II he would accept retainer in the case as
ronlff
mo, sir; under no conceivable circumstances. You
can readily see that this matter might come be-
would be manirestly improper" The Sena tor
added that We had no need OF counsel in the sense
had mentioned; that we had simply to lay our
case before the Secretary and the President. The
whole country was interested, and it was his duty
as a Senator to further the interests OF our COM
New Hampshire TAT this point there were Wis
IDLE signs OF amusement in view of witness re-
peated re1usals to disclose the name OF the sena-
be pleased to bring about for me an interview with
the Secretary OF State.
THE GEORGIA CHARTER,
Witness was asked how he came to obtain a
charter under the laws of Georgia, and explained
that in looking about for the most favorable con-
dittons he heard OF a charter which had some time
since been granted to Dun Green by the state of
Georgia and which contained such extraordi-
nar1ly advantageous features allowing the eSSab-
lfshment OF branches at any point in this country
or abroad-that they decided to obtain this char
Inc company Is now aCL0g unQcr C0lS CHAR
ter, and stock has been regularly issued; and
under the clause permitting branches they have
established their headquarters in New York city.
THE SENATOR IN THE CASE.
Witness was again asked il he still had ob1ec-
tions to giving the name OF the Senator, and re-
piled that since SO much has been said in this
nection, perhaps it would be better that should
right here and now give the entire history Of the
connection Of this Senator with the Peruvian
pany. have already spoken OF his refusal to
take retainer: at subsequent date, having been
advised by the Secretary OF State and several
friends both in the Senate and House that this case
could never come before Congress, but would be
settled in the State department, the Senator did
take fee as attorney for the company and acted in
that capacity for nearly four months. His ent .e
connection with the case was during the recess OF
Congress Shortly before the reassemblfng of Con-
greSS in December he had another interview with
me, and stated that he satisfied that the queS-
uons involved in the affairs Of the company would
come before Congress in manner involving legts-
ative 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 ca
| pactty OF Senator OF the United States. He,
| therefore, returned the amount OF the fee he had
taken, not even reServing what he had expended
in travelling expenses in the interests of the CON-
pany. From that point all connection OF the Sen
ator with the affairs OF the Peruvian company alb
Solutely ceased
AS 10 Q. 8. MINISTER'S ABROAD.
Witness was asked ff he had ever had any c0r.