The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-09-29
THE GREAT FRENCH RAILWAY FRAUD.

lA1 nA1VAA AhACDs
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Interesting Interview with the French Fugi-
tives-How the Bulls and Bears Operate In
Paris--The Fraudulent System OF the Credlt
Mobilfer-How the Large Fish Swallow up
the Small Fry-WaH Street In the Shade
How the Embezzlemcnt was Effected-The
Prisoners Desire to Remain In the United
Stafes-Their Appearance Yestertiay-Fur1
ther Particulars, &c., &c.
The great railway fraud in France and the full account
Of the transaction published in yesterdays HERALD,
the all absorbing topic of conversation, NOT only among
the nanciers OF Wall street. but among all the intelligent
clagses of the community. The large amount involved
and the with which The work of ENFORCEMENT wal
performed gives the acton color Of Schuyerisu
not soon forgotten. Hudson Schuyler Sadder and
Messrs. Carpenter and Grelet are names tina. will b
fresh in the memories of the people, when those OF emil
nent statesmen will sink into oblivion.
The French railway scheme is quite different from th
transactions of Schuy ler Hudson and Saddicr in man
respects In the former the actors merely swindle
James Rothschid and deprived him OF the principsl
part OF his shares in railway company, while the latte
robbed the people and hose WHO placed confidence q
their integrity In this the richest man the wor
is slghtly unfortunate while Ia the cases OF Hudson
Schuyler and Saddier many thousand families have bee
made sufferers and desoation has been spread far
wide. But 1t is unnecessary to dwell upon this point
further, SO will carry readers to the prison
Messrs Grelet and Parot and detail the result or lon
conversation had with them by of faithful nte
prefer.
The prisoners are extremely anable and seemed quiz
willing to enter into conversation upon the subject VI
which we are now treating
To various questions put TO Mr.. Greet he stated that
and his companions unwilling to go back to Franc
and " deArOuz of sufpaiDq remainder
days In the United States All the money they orougt
hero with them honestly obtained, they said, ar
given them by their friends and relatives previous
their departure from Paris. III we are compelled TO
back 70 France - said Greet, IL will disclose sever
matters that will compromise the very men who no
prosecute me, and even grea, fnanciers who now no
their heads 80 high the Bourse" In the year 1874
when the railway company was first chartered, hessr
6relet and Carpenter were employed cashiers In
concern. my first speculations," says Grelet, I'VE
always entered into with cash, and 1t until Isl
that borrowed the shares Of the company. ! hoped
be able TO replace them by lucky ventures but bel
without any ready cash, Carpenter and myself were
ways unfortunate in specualions. Mr, Rothsch
who President OF the company, had every connden
in our integrity, and in ls4s he entrusted TO &c
sixty thousand shares Of the railway company valued
any million francs with orders the instruction IN Pal
was not queleJ, to proceed England with valua
package We proceeded far Amiens, and intend
10 cross the Channel when received orders TO rem
in France. These shares were the private property
Mr. Rothschild, and they remained In our possessi
until 1851, when Mr. Rotasehta oaimcd them. II,
were delivered NJ TO him, and all was found 10 DO
rect The properly was retained In Mr., Rothschu,
polseston tor Elk months alter that, when T. was agt
placed In our hands A. taat time Dir. Robert
cashier and right hand man o. Mr.. Rolhacnd. When
died, In tie month 81 3iay last, Carpcnticr appoint
10 Gl The vacancy. Two morths ago We we're entrusi
With 1900 franos and proceeded 10 Belgium Tor the
rose Of derostrg the anovnt With SIR Lambert, (Rot
ehiIds agent In Brutsel). II we were disposed TO
dishoncst at that time, we could have len
country with the large amount and no. co
here, az we did, without any money, exc
small sum given US By our friends We never took
ca,h from the establishment, (none has been MISE
but merely borrowed shares Of The company with
hope Of being able 10 replace them.
our reporter Wishing to know how the robberies
elected during The lifetime Of Mr.. Robert, (Rothchi
head cashier,) he proceeded put series Of oucsa
10 Mr.. Grelet, which sered as follows
@ How did you manage to &c, a, the shares when
Robert was head cashier, and was entrusted with
custody OF the property A. When he was alive be u
TO cay to There Is the key Of the bureau con Tain
the yaluables Of the company; f you want anything
my hunehNt, 9ou procure u MT ROBERT was
an old man. and did not exert himself much. lie
every confidence In integrity, and showed us the
where he bid The key o. the bureau.
O. Had any others access 10 the bureau in Al
ton A. man named Guerin a porter in the
Enlistment, who used 10 sleep In the r
where the bureau deposited, bad p1sses
OF the key for nearly month. Gns
opened the top cover Of tho piece Of cabinet ware VT
was fastened down with nails and thus had acccIs 10
bureau, even when the Icy Ia his p9ssosslos
stole eco shares, ard that the now charged 10 us
Q. Whnt bind q trcculauons dld you enter into2
We chiefly sreculsted n Frcheh funds.
9. How mary shares Old on lake on any one occas
A. wtll, Gould ret soy, exactly, bu, tras Two /
drtd vas tSe LtrtCt; wc generally took rom TART
two hundred ct a time.
q. Were you and Carpenter engaged IN these spe,
ons jointly md did you agree divide toe proa ca
profits. 1'''''
o. How was The deficiency Discovered. and sbep,
In this way. Rolhschild wa known 70 have a Ger
humber ~ shares IN the company, and was IN the
OF receiving he dividends without presenting Bic stock
tvcIy ku bis claim 10 he corrcct those Dorsons
bad bought The shares taken from Rothsch,lds bu,
aso cailcu semi annually and received tbeir Al ysdey
dividends were thus paid twice the same stock nj
uniil We lett France tba lie directors Of me
parry could find oct how The mistake occurred: 70
child received bis dividends regularly upon ooC shs
which not In bis possession but were IN the hs
OF other parties, who also received dividends for
same: 1t was not until Mr. R0,nschild fouui out thai
property bad been carried on that the mistake vae
covered; he had not counted the number OF shares
years suppostg that It was alt right: had received
DIVIDENDS regularly upon 81 600 shares without b
wked 70 Present tho same: Rothschiid has ater ali
but little TOR the flvSepds he rre,ves AZ ~ nnrnb
sharts stotn would " added together equal n noa
cect, Tie value q HE shares themselves.
n According 70 the best VI your knowledge and ID
wlet is Tee amount defcianS
A. We tex 600 shares from Mr. R0thaehlTa
number 81 shares from other stockholders, tori Ne
rose of replacing some OF those borrowed LIN
RcllHttdd
q, Wlai wns the capital n ths conn any?
A. coo Goo france Whpn IL ur9t "a - ri Ntnpe.l