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The Emma Mine Swindle

The Emma Mine Swindle image
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The House Committee on Foreigu Affairs has been investigating Gen. Sohenck's conneotion with that institution. Among other testimony taken was that of James E. Lyon, of Encino, Wis., one of the owners of tho Monitor lode, wliich aftcrward became the Eninia miue. This witness testified that the mine was an unmitigated fraud from the beginning. When suits aroso tho Directora huil great difficulty in o'otaining a trial in the courta of Utah, bicause Judge MeKean was engaged iu Uyiug in his own court a case in wliioh he was i nterestod. being President of, and a largo stockholder in a eompany engaged íh litigatioa with anothor similar ruining compaiiy. McKean was also interested to the extent of $100,000 in the Tnnnelling Company, wMch organizad with a capital . of $1,000,000. Tho otlier justices were joint partners in the ; Einma Mino with intereste adverso to him. The Marshal of the Territory was also intforeeted iu Emina mine stock. Therefore it was considered necessary I to effect the removal of Jndge McKean, and tho afiHi.staiice of Senator Mortonvas called in as au attorney, he being promisedi$20,000 if the sohemes of the speculators were successful; but that man declined to have anything to do with the affair whon he ascertained that the pavties wished to uso his political ir 1 1 i i , . i . . .i . nu o faLaia+SM T iVíiti TtMlfl ff eceive $300,000 as his aliare of the plunder oí tlie Engtisli inyestors in the mine, aíid betírui''i t w.os , not íortíicoming he now exposes the sciieniü. líe ao-yfí that ihe sale to the English capitalista was made by wholesale corruption and bribery. He charp-es that Prof. Sillimau reeired 30,000 for making a favorable report oí a iiíiiie tPndy eshaijstedi that Gen. Schenck was given i00 síiaíos, with the guarantee that they should yield liim L20 a sharo; that Baron Grant received $500,000, Jay Cooke, McOulloch ê Oo. St2r,0004 mid othera still otlier petíifictí SuffiSi On June i, 1872, Jjyon testifies; me Flinma Mino literally caved in, or collapsedi and han noí sitice been repaired. Whon ex-Sonator Btewarfc was asked how they could satisfy the English stoekholders ior tho non-production of ore, he replid Unit was easily arranged. They could say the snows of Utah wero so deep as to prevent hauling, but they oould rnake up for lost time during the siunmcr. Mr, Park wroto to Anderson, connected with the conlpany, on the 29tli of Jnly, Í874, after his return from Salt tiako City, that ■vfrhile he expected o see in the Émma Mine íarge beds of ore, tho sight of them went far above his expectalions. There was no report conoerning the vast products of the mino but what, feil far short of the tmth. On such false representations tlic stook as a eonsequenco advanced. Gen. Schenk's statement to the English stockholders materially differs from the above. It is to tho effect that he, as well as the Englishmen, had been swindled. and all that can be iustly laid at lis door is the cliafge öf groSS iffiprojriety in consenting to tlie use of liis lame as a Director in a mining company vliile ho was the United States Minister i the Oourt of St. James. The General says he first met Senator 3tewart and Treubr W. Park in a Lon[lon hotel in company with Mr. Evarte, who was then on his wy to Geneva to represent the tjnited States as öounsel in the Geneva cuse. Mr. Ë vatte introduced Park, and at snbseqnent meetings he and Stewart iirged npon Schenck the value of the Emma Mine shares as an investment, till at last Park offered to advance the money on Schenck's note, with seciurity for ono year. It waa not until af ter tliis that Gen. Sehenck was f e(ueated to become one of the Directors, as he says, and ho only consented aftcr the question of propriety had been settled by tho showing that other men prominent in diplomatic circles were sorving in a similar capacity in other stock companies. His coniidenco ia the scheme betrayed him into giving it this additional indorsement, and when he retired from the Directory his letter of resignat.ion exuressed continued confidence in the valué of the mine. By the f ollowing card it mil be seen that Minister Schenck asks an opportunity to be more fully heard on the subject: London, March 1. In some London papers this morning were publisbed telegraphic diapatohes purporting to givo a report of Lyon's testimony bef ore a committee of Congress. I denounce bis whole statement concerning me aa a' tissue of inf amouH falueboods. Having obtained leave from my Government for tbe purpoae, I uhall aail ui the next Bteamcr for tlie United States to confrout my calumniators and vindicate my reputation. B. C. Schenck. ïhe matter is to be thoroughly investigated, and it ia probable that the committeo will be granted leave to sit during the recesa of Congress. Mr. Schenck has telegraphed his attorney to retain the professional services of Wm. M. Evarts, and to have Park and Stewart summoned.


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Michigan Argus