, 1873-02-08
GENERAL FREMoNr,s OPERATIONS.

familiar with tho railroad enterprise known
as tho TranBcontinontal Railway" and
who layo known of General Tromont's
negotiation Of tho bonds in Europe, who
will not bo surprised ut the announcement
that tho matter will como before tho
French Courts in tho Bhapo Of prosecution Of
General Fremont It must bo admitted that tho
caso will be Of moro fnterost than II It wero
brought in tho Courts Of New York; for tho
roaaon TINT tho Tronch Inv provides moro
direct method for probing alleged frauds, md
the Fronch Courts hnvo 1nado 1t n rule to deal
summarily with financial swindlors. II tho
charges against General Fremont shall DO
proved, and II this gentloman shall place him.,
self In tho power OF the Fronoh Government by
personal appearance, 1t is not improbable that
his manu- will find placo in history alongside Of
Law aud EIircs.
Tho alleged circumRtancoa Of tho Momphia &
Ell Paso, or 'sTrauscontinontal," Railroad
scheme arc as follows: Tho project was to build
a rnilroad to San Diego, with southern tormi-
nus. It never progressed any further than tho
drawings of tho route, and the printing Of the
bonds. General Fremont proceeded to Europe
to negotiate tho bonds, and took up his residence
in Paris, He spoclily made o combination with
the Imperial Government, by which the bonda
wore allowed to be placed on the Paris Bourso.
They wore recognized as having tho special sane
tion Of tho Government a newspaper was
started with tho express purpose Of assisting in
their negotiation. Newspapers were suppressed,
or thoir circulation prohibited in franco, when-
ever tlloy denounced tho achemo. Oluaoret was
ordered to leave tho country because 10 had
dared to attack 1t. Everything possible vas
done to give thesc bonds standing,
mud tho result was, that some sevon
or eight millions Of thom woro sold to the people
of Franco at prices which brought Romo avo or
six millions In money. 1t was represented that
tho United States Government had guaranteed
tho payment Of tho securities, and that thoy
woro among tho best stocks On tho New York
market. If thoso representations were curront
in France at the time Of the negotiation, serious
blame will bo attached to tho United states 11in-
istry of that dato; for the American 3tlniztnf
could scarcely have boon ignorant Of them, and
must l,avo known TINT they woro falsc. and
promulgated for tho purpoao OF docolving tho
people. Subsequently, Minister Waahburno, In
annwer to inquiry, pronounced the bonds WORTH
less, and denied the allegation Of Govor'1-
u,ent connection with tho scheme. But AIr.
Washbrrne did not become Minister until after
the negotiation OF the bulk Of the securities had
boon made, and his exposure Of the fraud cane
too lato to saye the people. When the corpora
tion was declared bankrupt, aad put into the
hands OF Receiver, all tho assets that could DO
found consisted Of Il quantity Of iron md aomo
usoless locomotiyca, which arc supposed to havo
been bought from II. Schroeder, great manu-
facturor, and at tlat tinlo President of tho
French Senate, at exorbitant prices. This, Of
courao, WAS III the nnture Of bribe. How much
money WAS used for bribing purposes or whore
it was distributed, is not known. It is certain,
however, that tho facilities which Fremont en-
1oycd woro not obtaincd without q liberal dis
tribution Of money, and it is ono Of tho purposos
Of tho Fronch prosecution to discover where it
went.
Tho conviction Of John q. Fremont whoee
namo is Of higher dogroo in Europe rs lead
ing American than it ia in thia country, ct the
negotiation Of worthless securities, and Of de-
frauding tho peopla Of Franco, will naturally
layo tho effect to further destroy European con-
| fldence in all American bonds aud securities
that may be presented abroad. This Is tho nost
| important and lamontable feature Of the whole
traneactton, from financial point of yiew. But
| there is also political Significance attached to
| tho affair. No such negotiation Of worthless
securities would hayo been possible except for
| Goyornnent interference with tho private affairs
Of it's citizens. When tho Napoloonic Govern
mont reaorvcd tho right Of debating what Hecuy-
| itics should be admitted into tho Boards
Of Trade Of France, it opened tho
why for just such corruption on tho
part OF ita officials, and just such swindlng of
tho people US nro horo described. Trench oapi-
talists would mover have boon deceived by 30
flinasy scAome If tAoy had not boon misod by
their own Government. They would haye Do
mandcd tho proofs Of tie alleged guarantees.
| It Is manin OF tho French people to subscribe
to tho national loans and public securities but
they never rush headlong into projects that pro-
sent thomsolvoa without Government iudogae-
mont General Fremont could mover hare no.
gotiatel q dollars worth Of hia bonds
In tho British market. Nor could
he have negotiated thom in the French market
without Government interference. It ia another
illustration Of principle that tho American
people ahoull keep prominently before them
just at this timo.
II Geuoral Fremont is guilty OF the charges
that arc made against him, 1t IL probable that
they will DO definitely established in the French
Courts; and It is equally probable that tho
judgment Of the Courtn will ba swoopingly
soyore<
NOTES AND OPINION.
A. v1r n$S1}a ~