New-York tribune., 1891-08-28
SENATOR STEWART SUED.
CHARGED WITH EFRAUDING A CLIENT.
r ANSWERS THAT IE SCHEME is A BLACK:
MAILING oN-A MILLION DOL
LARS sINvoLvED.

MAILING ON-A MlLL1ON DOL
LARsINvoLvED.
Serious charges Of uplicity on the part OF Sen
.,or William NJ Steprt, of Nevada, In which ne
+ charged with havig cheated his client out OF
q, 600 600. were mae in n suit brought in the
Sunreme Court yesteiay by James Il. Lyon. The
..snsactions complaed of made up part OF the
soapdal over the ".mma Nine" which caused
s,oh q disturbance i London financial circles In
1876 and 1877.
According to Lyc's story, as 1t appears IN MS
.omplaint filed in ourt yesterday, he openeu u
.,,ver mine. llnowns the Monitor and ot, LOUIS
lode. in Little Cottnwood Canon, near oait Lake
citv. in 1870. Thd1mma mine adJolned MS an"
before long the p,ple owning the lat'er mine
besan to infringe his territory. lie ooJec.eu,
ond when the Emm people applied TO inc oni'eu
S,otss authorities fc patents on their mines, Lyon
CO nro,est Tr.or W. Park of Vermont, and
II uerrv Baxter hid half interest in the Emma
,;no LYON becapn eiectment suit against them
nd tho other OWLS of the mine, and also sued
- rooover for the ie which the Emma people had
- ont To ccduct this suit Lyon employed
M-;uiam NJ Stew,t who was at that time the
-, rortner Of j. Hillyer, in San Francisco
- made q corract to give Stewart one-1ourth
- IN ho rocovere in the suit. The case was senO
o. Reniamin R urtis, Of Boston, as re1eree
Ivon declareahat soon after the case was re-
,orrsd to Mr. Ortis Stewart began to "dlcKer
With Park Mr. Lyons opponent in the Ia"suio'
s..,,,or+ rnrronted to Lyon that the owners
- .b. Fmms mine would give MN Sooo,-
ooo for his nine interest and loss, providing
~ u,ou1d whdraw his protest filed with the
I-ritsd State Government against the granting OF
Oh. natent o the Emma people. Lyon agreed
o. do this Soon after he consented 10 tins
orrangcmen however, he was In Nevada ana ne
,slecrapbeSto Stewart, who was IN New-f ork, not
% tal,e az action until he received further IN
strno,ions This telegram was sent ON August IA,
1871. -, ,
etor-or went ahead though. and carried out
auromant on August IS, Stewart afterward
p, reason for making the settlement that
n, Curs was engaged in the negotiations over the
Alobar, Claims, and could not give this case
he at4ntion for some time. Lyon declares that
In Ssopentlv learned that Mr.. Curtis not
.u-o,.a on the Alabama Claims. Even after
S.e'''rt had SIGNED the agreement, Lyon says that
.. ,ss jmpossible for him to get the $5OO,O0o
,r,,,b be was to receive. But instead, propo-
s,sor was made to hin by Park and Stewart to
s,,,n company in London and put the stock
:, both mines on the London market. Lyon con-
s.rted 70 this scheme and says he sent Stewart
IN London to pu it through. Stewart had the
London company incorporated with capital stock
of sl .oOO. 900, divided into 10000 shares. Then
Stewart telegraphed for Lyon to come over to
London, and he wen.
There he found Stoyart and Park occupying the
same suite Of rooms According to Lyons story,
Stewart was much oppressed about the new COM
pany 1t was in a ad way. The expenses were
terribly heavy Upto that time they amounted
rus. al nnO Cpoo
& Co.. of No. IS Brod-st, this city, for negotiating
sales of stock, and 100000 to Professor b. Sill
man. of Yale Colleg. Stewart gave such black
account that he ct Lyon in frame of mind
where he wished o get out, SO Lyon says, at
least. At any rat Lyon sold out for 100000
and gave Steurt and Hillyer $4,000
of that. Lyo, now declares that Stew
art and Hillyer old the stock for $6,5O0 900
and that Stewar got 81 100000 of this sum.
LYON declares thaStewart realized another million
ont of the Monito and ST. Louis Lode.
Recently he ba, Earned, he says, that Stewart
had a private cotnct with Park on August 18,
1871, while he ras apparently Lyons counsel.
Stewart's wife, e declares, got one check for
500, 900, and aother for $4,000 from Park.
He winds up th complaint from which these
allegations are taen by saying that Park, II. II.
Baxter, who waspresident of the New-YorlS COM
pany, and Stewft conspired to cheat him of his
rights in the Mnitor and St. Louis Lode" He
discovered thesefacts, he says, in 1s76-'77, when
the House of representatives. appointed COM
mittee to inquir into the relations of Robert G.
Schenck, who vas then Minister to England, to
the Emma min scandal in London. Lyon asks
for 81 900, 900 With interest from April 22 1872
for an accounting of the sale of the Emma mine
stock and to nave the contract of August 49,
1871, declared void. He also wants to have
release which he signed in favor of Stewart and
Park set asae. He received $4,000 for sign
ing this relese.
Senator Sewart calls the whole thing black
mailing schme from beginning TO end, and says
in his answer to the complaint that he has paid
a great may thousand dollars to Lyon as black
mail The case came up before Judge Patterson,
in the Suueme Court Chambers, yesterday, upon
a motion made by Lyons counsel, V. Wright
Kingsley, 10 strike out the allegations OF black
mail.
Stewar, in his answer admits being literally
paid by lark for services as counsel lie declares
that Lyons claim to the mine in question was
for the suppose of securing blackmall. Lyon, he
says, theatened to sue Park and him, in London.
Stewart replied
| suppose this means blackmail. and what's
your price ?'
According to Stewart, Lyon replied "$5O,00O,
and this sum was paid TO him through Park; 1t
was then that Lyon signed the release which he
wants TO have cancelled.
Stewart declares that Lyon lost the Sl50,Oo0
which was paid to him by Park in dealing III
losses that he came back. threatened the law
suit and received the $4,000. lie denies that
any money was paid to his wifes except by his own
direction and on his own account.
Decision was reserved by Judge Patterson on
the motion TO strike out the allegations about
Lyons claims being Dlackmail