Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-08-28
SUIT FOR A MILLION.
That Is the Amount of Damages
Wanted of Senator Stewart.
A MINE OWNER CHARGES FRAUD
Against the Senator in Big Mining Trans
action of Years Ago.
THE FAMOUS EMMA MINE BROUGHT IN
rsrEcIAL TELEGRAM TO THE DISPATCH,

NEW YORK, Aug. 27.-James E. Lyon
has brought an action in the Supreme Court
against Senator William NJ Stewart, of
Nevada, claiming 81, 100000 damages, al
legged to have been sustained in the famous
Emma Mine complications. He charges
Senator Stewart with conspiracy, while act
ing as his counsel, to defraud him of his
mining rights. Among the other alleged
conspirators is Trenor w. Park, of Yer
mont. The suit recalls the inquiry insti-
tuted by the House of Representatives in
1876 to ascertain the relations of Robert G.
Schenck, Minister to the Court of st.
pany, the stock of which was unloaded
chiefly in London for Sc, jOO,OOO
Mr.. Lyon alleges in his complaint that in
1870 he owned the Monitor and st. Louis
lode silver mines in Little Cottonwood
Canon in Utah. Certain persons who
claimed to own the Emma Mine encroached
on his property and dug into his lodes.
Their alleged mining rights overlapped his.
The Emma Mine was then owned by the
Emma Mining Company, of New York,
half of the stock of which was held by
THE SUIT OF 1870.
Action was begun by Lyon to oust the
company from this mining property and to
secure damages for the ore it had taken.
The action was referred to Benjamin r.
Curtis, of Boston. Stewart acted as Lyons
counsel in the suit. Overtures were made,
by which it was arranged that Lyon was to
dispose of his rights to the Emma Mining
g., nnn -
had conducted the negotiations.
Lyon alleges that Stewart represented
that the suit would lag on for long time,
as Referee Curtis was then engaged on the
Alabama claims at Geneva. Stewart ad-
vised Lyon to sell his property and with
draw protest he had entered when the
Emma Mining Company applied for min
Ing grant from the United States Govern
ment. Lyon says that he subsequently as
certained that Curtis was not engaged on
the Alabama claims. Several efforts were
made without avail by Lyon to get the half
million, and he hesitated about signing the
agreement. Lyon says that on August Is,
1871, Stewart signed an agreement to convey
Lyons interests to Grant & Co., who were to
formed in London. Lyon claims that Stew
art entered into this agreement for his own
gain.
RELYING ON PROMISES.
On further representations of returns
from the London company, Lyon declares
he agreed not TO press his demand for the
$500, 900 on promise of much more after the
sale of the stock in London. He paid Stew
arts expenses in London to conduct nego-
tiations, and on subsequently. going over
himself found Stewart and Park occupying
adjoining apartments in hotel in Hanover
Square, London.
Lyon was informed that the Emma Silver
Mining Company had been Incorporated
and capitalized at 1000 900, to work the
Emma mine and the Monitor and st. Louis
lode. He claims, however, that they in
formed him that the expense of putting the
stock on the market was so great that he
would not receive more than $25OO for his
interests. The stock of the New York Com
pany was to be bought for 81, 10000 The ex-
penses, according to their figures, were
G2ll,3C0, of which SlO0 0c0 we're to be paid to
Grant & Co., and 10000 to Prof. Benjamin
of Yale College, for his expert
services. Lyon says these expenses were |
SETTLED FOR $780,
On the strength of their representations
he agreed to sell his rights to Park for $780,
)GO. He received this sum and gave Stewart |
and Hillyer, Stewards partner, for their |
services as his counsel $4,000. He says that |
lie has since learned that on the date Of the |
agreement mentioned, August IS, 1871, Stew |
nto an agreement with Park adverse to |
his Lyon's) interests. He says that Park |
md the English company made two pay |
nents, amounting to $l25 600, to Mrs. Stewart. |
To this Mr.. Stewart replies that no pay |
nents were made to his wife, except under |
lis own direction and in his own account.
Lyon says that Stewart realized about g OOO,- |
100 out OF the transactions and that the stock |
of the English company was sold for S., ,5OO,-
OO
THE ANSWER OF STEWART.
In his answer, senator Stewart says that |
he claim to the mine property made by |
Lyon was looked upon in the courts as
pure blackmail." He declares that after
Lyon received 5000, ,OOO for his rights he used |
lis money and influence to depress the stock |
If the company in the English market and |
hat when the stock recovered and rose in
1alue all the money LYON had was lost.
Ly on thon came to Stewart and Park and
made some ofthe allegations made in the !
present suit about conspiracy and threat
med to bring suit against them in the
English courts.
Stewart said frankly to him: "This is
nothing more than b!ackmail. What is YOUR
,rice?" He alleges that Lyon said $4,000.
This was the sum paid by Mr.. Park and him.
,elf through another OerSOn and thereuDOn