, 1873-03-07


Recent cable dispatches announced that the
case of the Memphis l. Ell Paso bond frauds
sometimes known as the Trsnscontinen.al Nom
phis l. Pacific Railroad, and sometimes as the
Southern Continental Railroad had been hxed
for trial before the Criminal Tribunal at Paris
On the 18th inst, and that Gen. Fremont with eix
others had been indicted and cited to appear to
answer the charge OF swindIing various parsons
by the fraudulent issue OF worthless bonds OF
this road, amounting to six millions Of dollars.
Close upon the heels Of this announcement
comes rumor from Washington that proceed
ings are about to DO instituted against Gen.
Fremont by the Union Pacific Road; and that =
cable dispatch has been sent from Paris to the
agent Of the Company asking to have the suit
commenced The latter statements, "a far as
they concern suits in this. country, are highly
prob1omatical; but the French suit is = fact Of
the first consequence, and when thorough
ly investigated will bring out q swindle
fully equal to the Credit Mobilier in
the extent Of its operations, and the corrupt
character Of those who manipulated the sale Of
the bonds. a correspondent OF the New York
Herald, who Was in Paris at the time the bonds
were put On the MARKET: furnishes some inter-
eating facts showing hon. this grand financial
conspiracy was managed. The first ADVERTISE.
menta which appeared in. the Paris papers
wers written, of course, in the strongest
terms, and set forth the advantages Of Mem
phis 4 Ell Paso in tho most glowing manner
This WAS in the summer of 1869. The adver-
tisements stated that the bends were first
mortgage on all the lands cedcd to the read,
" amounting to 1920 acres per mile, or 800
acres to every 8, 900 bond and so acres to every
800 bond" The bonds we're offered at 40
francs, or about e82, for every 800 bond, paya-
bic in 1890, at 515 francs, or $10s, Six per cent
interest was said to be guaranteed by the United
States Government, and bondholdars at that
time, which was in May, wore entitled to The
July coupon. Tho Trustees Of the bonds wero
announced as Andrew g., Gurtin, =" Gov:
erno= Of Pennzsylyania, Minister. Plenipo-
tenti.ry Of the United States at St, Petersburg"
Paul s. Forbes, and syante n. .swensou, The
name nttached to the advertisement WAS N. ]. !
Parad1s, one Of tho officers Of the French Bourso.
In soma manner the favor Of the Government
WAS obtained, md, as the entire press, was sub
sidized, it was impossible to expose the swindle,
although many Americans in Paris knew it to be
q swindle. An English circular WAS issued with
regard ta il bnt, being printed in English It did
no: largely reach the French. The few French
men who did discover the fraud and publicly
denounce it we're soon si1enced by libel
suits, which at tho same time secured freah. time
fol the bond-ope1ators to expedite their sales,
ard the bonds we're thus rapidly disposed Of.
TIE frat discovery Of tho fraud came ont iq .
report made By the late Senator Howard, Of
Michigan, on the bill to incorporate "the South
EN- Ttsnseontinenta.1 Railway Company, :" which,
oi the maps engraved for Paris ase, etretchal
{pm Norfolk, Va, to s.n Diego, Gu, with CON:
n.ctions with numerous roads already construct
el- According to Senator Howard's report,
s,ooo,Qoo Of theae bonds we're sold in Paris at
s, pei cent, thus realizing At that rate, $780,
0,0 TO those engaged in tho conspiracy.
These facts show that while oakes Amea and
bis associates were making snug fortunes out Of
tie corruptions Of Credit sN1obi1ier John c. Ere
pont and his sssociatea 6a1o in Psris making q