The Daily Gazette

THE SHEPHERD INVESTIGATION.

Senator Blair Before the Committee-Telling
What he Knows and Don't Know:

[Associated Press dispatch to the Gazette.]

WASHINGTON, May 1.--Senator Blair was
before the Foreign Affairs Committee to-day
and opened his testimony by reading
a paper setting forth that "I know
nothing of the membership of the
Peruvian Company
except the presi-
dent Mr. Shepherd. I do not know of
any member of either house being in any
way whatever connected with it except my-
self, and my connection with it was purely
as counsel with no pecuniary interest what-
ever in the company and with no expectation
whatever of pecuniary reward.

This statement then rehearsed at some
length on the situation of affairs in Peru
and Chili and the writer's sympathy with
Peru and desire to prevent her dismember-
ment, which led him to take an interest in
the purposes and objects of the Peruvian
Company.

Continuation of Senator Blair's Statement—His Letter to Shepherd.

[Continued from First Edition.]

WASHINGTON, May 1.—Senator Blair's statement then set forth the circumstances which led witness to accept a retainer from the Peruvian Company.

Witness knew nothing of the Credit Industrial or their contract with Calderon. In relation to his (Blair's) letter to Shepherd in which he says "you should act as though American ships of war were on the way," witness said he believed that our Government ought to consider the kidnapping of Calderon a breach of good faith towards this country. and while he did not at that time entertain the slightest apprehension of any war between the United States and a little nation of less than two million people, however plucky they might be, he had thought it most likely that "American ships of war would be sent to the South American waters as English ships had already been."

He understood that General Grant, without any pecuniary interest whatever in the Peruvian Company, was strongly in favor of rendering such sympathy and aid to Peru as would assist in giving her a chance before permitting her dismemberment. As for himself, witness was more interested in the true policy of our country than in the Shepherd Company or any other company. He could not believe in a foreign policy of debasement, and whatever others had thought of the Shepherd Company, "there were those whose belief in its possibilities to play no unimportant part in the settlement of the South American situation."

Witness stated that he was prepared to answer any questions the committee might desire to ask.

Representative Blount stated that he wished to have the statement in print before proceeding with any further examination.

As the hour of adjournment had arrived the committee went into secret session and the room was cleared. It was decided during the secret session that the sub-committee appointed to go to New York will remain here until Mr. Blair's testimony is concluded.

Chairman Williams says he will call the committee together Wednesday or Thursday to resume the examination of Senator Blaine. It is thought the sub-committee will be ready to start early next week.