The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1873-03-21
THE JOURNAL.
Mr. Premont,a Railroad Fraua.

Mr.. PremOnt's Railroad Erauu'
1t has been somewhat vaguely
stated by the telegraph several tunes
that suit had been brought IN the
Courts at Paris against General Jonn
C. Fremont for alleged completely IN
the sale of large quantity OF bogus
bonds issued in behalf of some n.y.
potheticar railway known as the
Trans Continental Memphis and III
Paso Pacific Railroad. The full
story of this great fraud has
lust come from Paris and we
eondence it for the instruc-
tion of those who think it strange
that American securities should
stand lower in European markets
than other bonds less secure and
paving smaller interest. The suit,
let us premise, is brought against
General Fremont, who was at the
time President of the Company J, not
with the expectation that he will ap-
pear in person at the bar of the
court, but in oder to bring ont in
! formal evidence all The facts in the
case and secure the conviction of
whatever Frenchmen participated
in the fraud as agents, and shared
its illgotten gains
The bonds were thrown upon the
Paris market with a great flourish
OF trumpets in May, 1869. There
is the fullest reason to believe that
the Imperial government had been
seen and consented not to inter
fere with the enterprise. At all
events the leading Imperial news
papers contained flaming advertise
Iments, setting forth the value OF
the bonds, as well as long and en-
thusiastic editorial articles explain
ing their value and urging them
upon the market. It was distinctly
stated that the bonds were a first
mortgage on all the lands ceded by
Congress to the road, amounting to
l1O,24O acres per mile, 800 acres to
every $1,000 bond, and 80 acres to
every 800 bond. They were put
upon the market at 410 francs for
every 500 bond, or about 81 per
cent. of its face in gold. 1t was
stated that six per cent. interest
was guaranteed by the United States
government, and parties purchasing
bonds then-in May-Would be en-
titled to the first coupon in July.
The trustees OF the bonds were said
to be Andrew G. Curtin, then United
States minister to st. Petersburg,
and two other parties less familiar
ly known, and the official agent of
the company at Paris, the man
whose name was attached to all local
advertisements, was NJ. j. Paradis,
an officer of the French Bourse.
Thus set afoat, these bonds sold
with remarkable rapidity. A few
Americans then in Paris knew the
character of the swindle and made
some efforts to expose it, but when
ever any attempt to do this was
made, suit was made for libel by the
conspirators, and time thereby gain
ed for getting rid of the bonds. A
circular in English was issued de-
nouncing the frauds, but the French
public could not read it and it had
little or no effect. Large maps were
hung up in the hotels and banking
houses, with broad lines drawn from
Norfolk Virginia, to San Diego Cali
fornia, and it was stated that the
company had already secured con
troll of roads already built east Of
the Mississippi, so that the great
trans-continental railway was then
partly in actual operation. 1t took
but short time to make so adroit a
sWindle remunerative. The amount
realized was $4,8OO,0OO gold, Of
which 100000 came to New York
in one shipment. 1t is now claimed
by General Fremont that his agents
made the false statements upon which
the bonds were sold, without his
knowledge or consent. Such pro-
ceedings are crime IN France, and
whatever may or may not happen to
the American pathfinder, his French
agents are in a tight place.-C7ere-
land Leader.