The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1873-03-06
2lrtlmond 1ispatrIl.
sE THE CIRCULATION OF THE DIS.
cATCH Is LARGER THAN THE CONFINED
CIRCULATION OF ALI. THE OTHER DAILY
NEwSpApERs OF THE CITY.
The Memphis and FL raso Railway
Roneia "SVintsfc

The New lork Herald has the following
history OF the financial frauds which consti.
| tute the French indictment against General
John c. Fremont.
Several items have appeared in the papers
in regard 10 the suit brought in the French
| courts against John c. Fremont on account
| of the sale of bonds in France Of what was
called the Tran. continental Memphis Pa
cific Railroad Company OF which he was
president. 1t is not expected that he will
| appear in person to defend himself, but the
suit is brought in accordance with the Gus.
| toms Of France 10 bring out generally oil the
| facts in the case and endearor to reach such
| Frcnchmen us participated in the swindlc.
| The writer WAS in Paris during the summer
| Of 1863. when the sale Of these bonds were
| made, aud well remembers their advertise
mcnts III the leading papers of that city.
Nothing could he stronger than the terms of
| these advertisements. 1t was stated that the
| bonds were iifst mortgage on all the lands
| ccded TO the road, amounting to 1920
acres per mile, ur 800 acres to every $1,000
bond, and thirty acres to every 800 bond"
They were offered at 40 francs for every
| 800 bond, payable In 1890 at 5l5 francs.
SIX per cent. interest was said to be guaran-
teed by the American Government, and pur-
ctlascrs OF bonds at that time (May) were en-
titled to the first coupon, payable in July.
The trustees of the bonds were announced
to be" Andrew G. Curtin, Governor of Penn
Sy!vania, Minister Plenipotentiary of the
United states ut st. petersburgh; Paul S..
Forbes, and Srante M. SwenSon," as copied
from the Paris lie National, May II, 1869.
The name attached to the advertisement
Was NJ. j. PaSadis. one Of the officers Of the
French Buursc, and there was no doubt that
their introduction had the sanction Of the
Imperial French Government. Editorials
appeared from day to day announcing the ex-
celcncc Of the bonds. the favor with which
they had been received, and predicting a
speedy advance in price. Every American
II Paris knew tneir character; but it was
ihpos'lh!r T., expose the fraud, az the papers
lad h".u Subsidized and Government favor
o~.n procured.
4 circular in the English language was
laid on The tables of the American banking
houses IN regard 10 it. but it could not reach
| The French. Some Frenchmen did discover
| the fraud and denounced it, but, to gain
| Tine. liUci suits were brought against them.
] The bonds were sold, and q gentleman con-
| uectcd with one Of the principal banking
| houses of Paris asserted that rs the proceeds
If this sale, they rcmittcd to New York the
! largest s;;m they had ever romttcd at one
| timc---amoSt three millions of dollars.
70 facilitate TIC sale OF these bonds map:
| "erc printed, with large lines drawn from
| Norfolk. Va, to San Diego. through the
| whole American continent, and it was said
| hat the new company had formed conncc-
! ionS with roads already built, so that much
Of the inc was then virtually in operation.
| The operations Of the swindle, many OF
| them. cane ont in Il report made by the late
Senator Howard. of Michigan, from the
| Committee on the Pacific r.ilroad, on bill
| 10 incorporate the Southern Trans-Conti-
mental hallway Company" and grant ii the
| Iigl;t OF way, presented to the Senate April
| -, 1870. Ey his report S2,000,000 Of these
| Jond> were sold in Paris at sixty per ccut.,
| realizing ii that ra:e Si,S00.QO0. The facts
IS stated above were admitted before the
| committee. aS the French papers were pro-
| iuccd. and the only defence was that the
| ,-eutS made these false representations with
out authority Of General Fremont. But for
| these false statements, however. the bonds
| could not nave teen sold.
When all the facts are brought out on trial
| this will probably Ec found to be one Of the
most adrcit and successful SwndleS Of the
period. 1t could not have been perpetrated
in Engllud or Germany, where American
securities are better Known. nor can it be
repeated III France. 1t mas affected seriously
he good name Of our country in France.