The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-03-04
SIX MILLIONS OF DOLLARS INVOLVED.
Credit Mobilier Financiering in Another
Shape Before the Paris Tribunal.
RICH AND SPICY REVELATIONS.
Fremont's Reply to the Jul
dicial Citation.
History of the Operations and the Bases
of the Indictment.

of the Indictment.
TELEGRAM TO 1lf new YORK RERALD
The following special despatch to the
HERALD has been received from our CORE
spondent in the capital of France
PARIS, March 3, 1873.
The case Of the Memphis and Ell Paso Rail
way bond-variously known as the Transconti-
mental Memphis and Pacific Railroad, and as
the Southern Tmnscontinental Railroad
frauds is fixed for trial, before the Criminal
Tribunal of Paris, for Tuesday, the 4th of
March.
THE INDICTMENT AND PERSONS INDICTED.
Major General John G. Fremont, with six
pther persons named in the proceedings, will
be arraigned before the Court under indict-
ments charging them, each and severally, with
swindling divers personages by fraudulent
sale of worthless American bonds to the extent
pf six millions of dollars.
FINANCIAL REVELATIONS AND CURIOUS FACTS TO
FOLLOW.
Exposures not unlike those which have fol-
lowed from the investigation of the Credit
Mobilier's transactions in the United States
are expected to ensue from the legal and judi
cial probing Of this new and unusual case in
the French Court.
FREMoNT's REPLY TO THE CITATION.
General Fremont has been cited to appear in
person. He has replied to the summons by
answering that he cannot get to Paris in time
The Financial Conspiracy-Its Combina-
tion. Intent and Mode OF Operation.
With the above important special telegram to
the HERALD we have the following special history
of the financial frauds which constitute the bases
of the French Indictment
Several items have appeared in the papers
In regard to the suit brought in the French Courts
against John G. Fremont account Of the sale of
bonds in France of what was called the "Transcon-
tinenta Memphis Pacific 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 customs OF
France to bring out generally ali the facts In the
case and endeavor to reach such Frenchmen as
participated in the swindle. The writer was in
Paris during the Summer OF 1869 when the sale OF
these bonds was made. and well remembers their
advertisements in the leading papers OF that city.
Nothing could be stronger than the terms of these
advertisements. 1t was stated that the bonds were
first mortgage all the lands coded to the road,
'amounting to 240 acres per mile, or 800 acres to
every $1,000 bond, and thirty acres to every 800
bond" They we're offered at 40 francs for every
500 bond, payable in 1890 at 5l5 francs. SIX
per cent interest said to be guaranteed by the
American government and purchasers of bonds at
that time May were entitled to the first coupon,
payable in July. The trustees of the bonds were
announced to be ANDREW G. Curtin, Governor OF
Pennsylvania Minister Penipotentiary OF the
United States at st. Petersburg; Paul s. Forbes
and Svante M. Swenson," as copied from the Paris
lie National May IL, 1869. The name attached to
the advertisement was NJ J. Pasadis OF the
officers of the French Bourse, and there was no
doubt that their introduction had the sanction Of
the imperial French government. Editorials ap-
peared from day to day announcing the excellence
of the bonds, the favor with which they had been
received and predicting speedy advance in price.
Every American in Paris knew their character;
but IL was impossible to expose the fraud, as the
papers had been subsidized and government favor
been procured.
CIRCULAR
In the English language was laid on the tables or
the American banking houses In regard to it, but
It could not reach the French. Some Frenchmcn
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 principal banking houses Of Paris
asserted that, as the proceeds OF this sale, they
remitted to New York the largest sum they had
ever RENTED at one time-almost three millions of
dollars.
To facilitate the sale Of the bonds
MAPS WERE PRINTED
with large lines drawn from Norfolk Va to San
Diego through the whole American Continent, and
It was said that the new company had formed con-
nectons with roads already built, so that much OF
the line was then virtually in operation.
FOUND OUT.
The operations OF the swindle, many OF them,
came out IN report made by the late Senator
Howard, OF Michigan, from the Committee on the
Pacific Railroad, on bill to incorporate the
s'Southern Transcontnental Railway Company
and grant 1t the right OF way, presented to the
Senate April g. 1870. BY his report $4,000. 900 OF
these bonds were sold In Paris at sixty per cent,
realizing at that rate s4soo,ooO. The facts as
stated above were admitted before the committee,
rs the French papers were produced, and the only
defence was that the agents made these false rep
reservations without the authority OF General FIRE.
mont. But for these false statements however,
the bonds could not have been sold.
When all the facts are brought out on trial
this Will probably be found TO be one Of the most
ndrolt and successful swndles of the period IL
could not have been perpetrated in England or
Germany, where American securities are better
known nor can 1t be repeated in France. u has
affected seriously the good name Of our country In