The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-25
THE Ell PASO RAILROAD.
Testimony Before the Grim
inal Court Of Paris.
General Fremont's Adjustment of Ac.
counts with His Brother-in-Law.
Where the Money of the French
Subscribers Went.

By our French files Of newspapers which have
Just arrived we have further disclosures with
reference to the operations Of the TransConti-
mental, Memphis and Pacific Railroad The pro-
ceedings of the trial now going on at Paris show
that out OF 1863 miles OF railroad to which French
subscriptions were invited 74s miles have never
been surveyed.
On the 4th OF February, 1855, the Legislature of
Texas passed q law sanctoning the Memphis, M
Paso and Pacific Railroad. subscription Of
$40O00,000 was opened, and about 81, 100000 was
received, with which the works were begun. I'm,
mediately afterwards these works were suspended,
the civil war broke cut and when that came to an
end the company had capital, floating debt OF
some $4,000 and the conditional promise OF the
concession oflands, subject to the prior compile
ton Of the line 1t was then that 4r,,q
GENERAL FREMONT BECAME PRESIDENT OF TIM
COMPANY.
without seeking to obtain the further aid OF Ameri-
capital he turned his attention to the resources
which might be found In France The first thing
was to obtain a quotation OF the shares on the
Paris Bourse and to issue shares. The actors in
this scheme were, first, General Fremont then
Baron Gaufdree-B oeau former Consul General Of
France and officer Of the Legion OF Honor person
well adapted to intervene at critical moments and
to guarantee the uprightness Of the undertaking
to the French government, to flnanciers and to
the investing public. Then came M. Probst an
old contractor in Mexico, having thorough knowl-
edge Of America who undertook any amount of
responsibility upon condition that he received
compensatory commission upon Sales purchases
and investments.
railroad engineer named Lassignol was found,
who assisted in the negotiation and drove hard
bargains; also banker named Crampon, who
maintained that the bonds OF the railroad first
rate stock and duly
and that Congress had voted a guaranteed rate OF
interest and that the railroad also in running
order for large portion Of it's length. Then came
Parads, now dead, who was at the head OF the
Tfvages Finaneieis, a company which readily en-
barked In all new enterprises. One Aufiermann,
who had large local knowledge OF the country,
was also found useful in launching the new project.
statement was inserted in New York paper
cent of the Memphis, III Paso and Pacific Railroad
Company, principal and interest payable in gold.
Co. and rms M Wien ~ ns %ece aa besn
procured the following certificate was obtained by
Aufiermann and forwarded to Europe:-
BY order of the Council is certified that
Mem s Fl aga ahS ha a s anas
In series S5O0O00 each, denominations SlUU
S1d 100 arg admitted to negotiation upon the New
The merits of the company were Wanted in
many French newspapers, and the consequence
was that the French public took up the bonds 10 a
lions for time. After the subscribers failed to
secure further payments proceedings were COM
reeeG See wars The is S
OF accounts ascertained to have existed when the
t sy gs tea anss q 9Sas
amount there was paid for materials pur-
chased 275o,Ooo francs. At the time the
NAMED in hand but 2,oas, 2s2 francs There is.
therefore, 15,335,4lS francs to be accounted for.
Launching the affair." 5,45O,oo0 in allowances and
commissions which the accused have received,
q
interest, and 6,46O,000 francs forwarded TO New
York: Of this last amount General Fremont and
francs as commission, and as to the remainder no
account has been given. tA
COURT PROCEEDINGS.
From the proceedings before the Police COrrcc.
tlonaelle at Paris we take the following ex-
TESTIMONY OF MR.. CRAMPoN,
who was well known Ior his large dealings In the
Paris BOurse some years ago:-
BY the Court-General Cluseret, who had lived in
America, denounced the enterprise did he norY
N, Mr. CramPonmYes, that is So but On our side we
Bolleau, former French Consul at New
his. Eventually, however, Mr.. Sourigives In
the Ecloireur Fi'sdncfer, attacked the scheme.
thought that an enterprise that had 2lo,OOO,oOo
Of francs as capital was solid. Mr.. Lissignol
then went to America and brought back statistics
M the snd s A
MAINTAIN That was only an agent In the AFFAIR,
and not Q principal. was referred to Baron Gaul.
Fremont, and that settled the matter in my mind.
MR. MAGNIN;s TESTIMONY. OF
He commenced by stating that the emission OF
bonds was brought about by the false signature Of
man named spencer, who was an imaginary per-
to obtain through General Fremont the quotation
OF the bonds in New York, but that Consul Boileau
had said no quotations Of the bonds could be had
until the construction OF the road was completed;
to which PrObst and Lssignol replied,
THE BONDS MUST BE QUOTED AT 1851
which would make the effective value OF the bond
$500 francs; believe that only four miles Of the
road have been constructed; I3,oOo,00o OF francs
have been received by General Fremont, Aurer-
mann, Gaudree- Boieau Paradis, Crampon, Probst
and Lissign0l; Baron Gauldree- BOileau has re-
ceived 100000 francs for commission according to
TESTIMONY OF BARON O. BoILLEAn
by the Court-You speak in your correspondence
OF the difficulties OF obtaining quotation In the
New York Stock Exchange
Baron Boeau-I had no hand in that business.
be heavily subsidized.
Baron Boileau-That is untrue; for had no in
700 oooI from my brotherin-law, General Fremont;
we both married daughters Of the late Senator Ben
ton 81 Missouri Fremont Ere aad made
WHEN FREMONT MARRIED HE WAS SIMPLE
LIEUTENANT, Hra
without fortune and was ready to plunge into any
new enterprise which promised q fair gain but he
was unfortunate In money matters, and Senator
in 1853 went to New York in 1853, but our ac-
counts had not been settled and General Fremont
had spent much money for election purposes TO
settle aiiars Fremont gave me the 24s bonds. l
have no account OF this transaction. for General
Fremont was my friend and brother-in-aw.
BY the C0urt-When you received these bonds
they were not officially quoted at New York-hOw,
then. could you TX their valueY
Baron Boilieau--I believed That the enterprise
would be successful
The Court then read statement of Probst who
declared that by order of General Fremont he had
paid the Baron 766,32Of for commission, which
Probst and Lissignol demanded should be re-
funded.
Mr.. Ponpnel, secretary OF the late Mr.. Parader,
admitted having received q bonus OF 300,0 DOOR. ON
account OF expenses In negotiating the bonds in
France,
A PRIGHTPUL FRATRICIDE
A Young Man shoots His Brother Three