The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1873-03-20
FREMoNr,s FRAUD.
rhe Points of the Suit Against s'ths Path.
[Fro- the New Ysrs Herala-l

gg Eros the New York HerAld.l
Several items have appeared In the
papers in regard TO the suit brought
in the French Courts against John T..
| Fremont on account oi the sale of
bonds in France of what wss called
the "Transeontinental Memphis Pa
citic Railroad Company" of which he
was President. 1t is not expected
that he will appear in person to de-
fend himself, and the suit is brought,
in accordance with the customs OF
France, to bring out generally all the
facts in the case, and to endeavOr to
reach such Frenchmen as participated
in the swindle. The writer was ia
Paris during the summer OF 1869,
when the sales of these bonds were
made, and well remembers their
papers. of that city. Nothing could
be more strong than ihe terms of
these advertisements, It was stated
that the bonds were first mortgage
on all the lands ceded 10 the road,
amounting to 10,240 acres per mile,
300 acres to every 81, 900 bond, aud 80
acres to every 500 bond" They
were offered at 40 francs for every
$100 bond, payable sina 1890 at 515
francs. Six per gcentscinterest was
to be guaranteed by the American
Government, and purchasers OF bonds
at that time (May) were entitled to
the firstcupom payablein July. The
trustees of the bonds were announced
to be Andrew g. Curtin, Governor
of Pennsylvania, Minister Plenipoten-
tiary of the United States at st. Pc
tersburg Paul s. Forbes, and Svante
M. Swenson," as copied from the
Paris lie National. May II, 1869. The
name attached TO the advertisement
was M. j. Pasadis, one. of the officers
of the French Bourse, and there was
no doubt that their Introduction had
the sanction of the Imperial French
Government. q Editorials appeared
from day to day announcing the ex-
cellence of the bonds, the, favor with
which they had been received, and
a speedy advance in price.
Every American in Paris knew their
but it was Impossible to
expose the fraud, as the papers had
been subsidized and Government fa-
vor been procured. gaome
A circular in the English language
was laid on the tables of the Ameri-
can. banking houses in regard to it,
but it could not reach the French.
Some Frenchmenl did discover the
fraud, and denounced it !; but, to gain
Time libel suits were brought against
Them. The bonds were sold, and
gentleman connected with one of the
banking houses of Paris as
'erted that as the, proceeds of this
sale, they remitted to New York the
argest sum they had ever remitted at
1ne time-almost three millions of
iollars. ts;a,t,. tui .lffua
TO facilitate the sale of the bonds.
maps were printed, with large lines
irawn from Norfolk, Va, to San
Diego, through the wholeh American
Continent, aud it was said that the
lew Company had formed connec-
ions with roads already built, SO that
much of the line was then virtually in
peiatloh. onl ~ 20
The operations of the swindle, many
4 them, came out in a report made
y the late Senator Howard. OF Michi-
an, from the Committe on Pacific Rd.,
n bill to incorporate the tSouthern
'rans-Continental Railway Compa-
y" and grant it the right of way.
resented TO the Senate April 90,
865. BY his report $8,0000O0 of these
onds were sold in Paris at sixty per
snt. relizing at that rate 81 10000.
he facts as stated above were admit
I'd before the Committe, as the
rench papers were produced, and
ie only defence was that. the agents
Iade these false representations with
Ut the authority of General Fremont.
ut for these false statements, how
YER, the bonds could not have been
I'D. ~ .ef9sieassfI0,B1tL
When all the facts are brought out
q trial this will probably. be found
} be one of the most adroit and sue
'ssful swindies of the period. 1t
'uld not have been pefpetrated in
| England or Germany, where
mel lean securities are better known,
Or canlitbe repeated in France. 1t has
fected seriously the good name of
our country in France.