Democratic Sentinel, Volume 6, Number 9, Rensselaer, Jasper County, 31 March 1882 — THE DIPLOMATIC SCANDAL. [ARTICLE]

THE DIPLOMATIC SCANDAL.

Jacob R. Shipherd, accompanied by his wife, appeared before the House Committee on Foreign Affairs, at Washington, on the 21st of Maroh. He handed in a certificate from his physician that his recent illness had been quite serious. Shipherd was examined at length by the committee. He stated that he indorsed to President Garfield and Secretarv Blaine, in May, copids of the Prospectus of the Peruvian Company. In New ork, on May 30, he had a' prolonged interview with Minister Hurlbut, who said the President regarded the case as strong in law and equity as it could possibly be, and action would be taken if it would enable Peru to pay her indemnity and get out of her trouble with ChilL Huribut was assured by Shipherd that it would result advantageously to him if he made no opposition. Shipherd had two extended conversations with Blame at the end of July last, and asked that both Chili and Pern be officially notified of the right to the guauo fields asserted by Americans, which the Secretary said should be done at once. In a letter to Hurlbut Shipherd states that $250,000 of pool stock in the Peruvian Company bad been reserved for the Minister and his friends, the terms of payment to be arranged at their convenience. In his testimony before the Hquse Committee on Foreign Affairs, on the 22d, Shipherd said that the only officers of the United States with whom he had any correspondence or whom he sought to interest in the company were Ministers Hurlbut, Kilpatrick and Adams, the Secretary of State, President Garfield, a Senator from New Hampshire (Blair), and William H. Robertson, Collector of the Port of New York. According to his story Blair was given a retainer, which he afterward returned, and Robertson was paid a fee for services rendered the company in the capacity of attorney. Shipherd admitted that his only dealings with Gen. Kilpatrick consisted in writing two letters to him, which were never answered. Shipherd, when called before the House com* mittee on Maroh 23, stated, before any ques* tion had been pat, that he desired to add a word, if it would be in order, to the testimony given the previous day. He then stated that he would waive the technical objection he had raised, and would state that the Senator to whom he had alluded was Henry W. Blair, of New Hampshire. He further stated that, with one exception, there was no other Senator or member of Congress who had in any way been interested as counsel or had been approached with a view to securing his services. This gentleman, Shipherd said, was asked to act as counsel, and declined on the ground that he might be called on as a member of Congress to pass upon the claims of the Peruvian Company. With this exception and that of Senator Blair, there was no other instance of any effort to secure the services of a member of either house of Congress. Witness produced a copv of his letter to the President. It was quite long, and rehearsed in detail the claims and plans of the Peruvian Company. The letter referred to inclosures naming the prospectus of the company, the draft of agreement with Peru, the chain of the title of the Peruvian Company, and stated it was deemed best to lay the whole matter before the President. It spoke of the magnitude of the interests involved, and estimated the value of guano at $1,000,000,000, and indicated that ex-President Grant would be President of the company, and that its Board of Directors would include gentlemen equally well known and capable.