Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-02-24
his Reticenee In Paris Conserving the
II PasO Fraud-The Glaring MIS-
representations Made Regard.
ing the Action OF
Congress.
W NAshbBrne silent While American CitI.
zens We're Exposing the Character
Of the SWIndle-Our COantTy
Is Disgraeed Abroad.

anu propose now 10 examine MS state
ment that che exposed the frsudulen
character Of the bonds, and advised th,
state department about them" Mr.
WashbUrne was member of the forti
Il eth congress, which expired March 4th
1863; was nominated secretary Of stat,
March 5th, 1863; on the 9TH was con
ilrmed by the senate, and on the Sth as
sumed the duties of his Office. The mex
next day be resigned, his resignation tC
lake place on the appointment OF hi
successor. On the Ilth OF March ht
was nominated and confirmed minister
4 plenipotentiary TO France. He sailed
May lst in the steamer Periere, which
arrived at Brest on the 10th in the even.
ing. His arrival in Paris was cabled on
the l4th, and on the 23d he presented
his credentials. The first session Of the
lorty-hrst congress expired April 10th,
1853. 1t was therefore impos-
slbie for the Memphis, FL PasO and Pa
chic railroad company to have obtained
any legislation which would not have
been known TO Mr.. Washburne. In
point OF fact, the joint resolution which
4 passed the house OF representatives
4 March 22d, granting the right of way
Z FOR that company TO the Pacific, was
killed in the senate the same day by
4 laying 1t on the table. The whole
4 amount Of the first issue of land grant
+ bonds was sold to Crampon and Parsdls
in August, 1865, but they were not able
4 TO dispose Of one francis worth until
. they obtained the official quotations on
4 March lG, 1853, and they were not
placed on the market until late in April,
when their unparalleled advertising be-
gan. Attacks were almost simuItane.
ously made upon the company by rival
financial papers, and this war was at its
hight when Minister Washburne ar.
rived in Paris.
FALSE REPRESENTATIONS
The following extracts from the pa
i pers submitted by the judge Of instruc
ItiOn in the case of the TranscontiDental,
Memphis and Ell Paso railroad before
the tribunal police correctionelle Of
Paris will show the fraudulent character
OF the means adopted to sell the bonds,
and the equRnimity which Minister
Wsshburne maintained during the
greater portion Of the time during which
the French public were being victim
lied by the sharpers who were repre-
senting an American corporation:
''TO sell promptly and with profit the
bonds which they had purchased from
the company, Psradis organized an i'm
mense scheme of advertising, not only
In the large newspapers of Paris, but
even in those Ofthe provinces. He made
|cOntracis with the advertising agencies
of Fannher Lsffitte, and Bullier & La
aTaEg GeTf 4 Co., by virtue of which
he binds himself to give them 200, 900
francs worth Of advertising; and he pro-
yides that no newspapers controlled by
o.. Il, l.,
criticise 10 any way the company or the
Memphis and FL Paso railroad, under q
penalty OF being excluded at once from
the profits Of the bargain. He throws
profusely over Paris and in the provin-
ces prOspectuses and handbills, with
map OF the Transcontinental, Memphis
and FL Paso railroad, accompanied by
the explanation. He makes also an
appeal through the columns of the Ga
zstte deS Ifi6tndur, LIE DrOit, and even
of the Official Journal; and he an
nounces these falsehoods to the public:
First, that the Memphis aud Ell Paso
company own and work all the rail-
roads connecting Baltimore and Norfolk
with Memphis, east OF the Mississippi;
second, that the company owned al
most all the land on which the city of
Norfolk was built; third, that the con.
gress OF the United States had voted
to guarautee six per cent. interest on
the construction bonds Of the COM
pany, and had guaranteed also the pay
ment Of said bonds at par aud in gold
within fifty years; fourth, that the land
grant bonds had already an absolute
guarantee in resting on their mortgages,
even If the railroad was not to be built,
and even if the charter should be for
feited: fifth, that the same bonds were
<lso guaranteed by lien on the assets Of
the company; sixth, that they were quo
ted "a the New York market; seventh,
Ihat re bonus which had been sold had
peen ri zen in payment to French man
nfecturers; eighth, that the material
which these latter were going to supply
was 10 be imported into the United States
free Of duty; ninth, that not one cent
10 come fEOm the proceeds of the bonds
was to be sent out to France, and that
these proceeds should be used TO pay the
These unparalleled and
faIlacious representations produced the
effect anticipated by Paradis and Cram
pon, and French capital rushed in.
RESULTS OF THIS ADVERTISING.
From the twentieth Of April, 1869, to |
The following August, Paradis sells D. |
s62 bonds, representing 4795 bonds OF |
$1,000 each, either on the stock exchange |
Of Paris or in the banks, or through a 1
nublic subscription which took place in |
the offices Of the MOniteur de IErdQeS |
F1ndnciers on the twentieth of May, |
7 $50. This enormous advertising had |
cost 5l4, "a francs, but it had yielded /
Is. gg4. 955 francs. Notwithstanding the |
means used by Paradis to secure the sup. |
port OF the press, certain financial pa |
pers raised questions concerning the af- |
firmations Of PaTadis, aud one OF them, |
tie Reform, in its issue OF the sixteenth |
Of May, referred to the affair as q mon |
ztrous sWindle and a contemplate spec |
,s!atiou. The EcldiTeur FFRdncier, man. |
i, ed by N. SOurigue, without going so /
- bsd advised the public to be diffident /
hour eu enterprise which seemed to be /
- csrts N OF splendid results, aud which |
,od no n edit in the United States. At /
- same time General Cluseret, late |
de csmC 20 General Fremont, pub |
'ished in France q pamphlet in which |
se showed up al the lies published by |
the French newspapers. A certain /
Warren, an American gentleman, in 1
pamphlet bearing date the twenty-tlrst 4
m Nav, made some strong attacks /
against the Trsn5cOntinentsi company. |
on the tventy-second Of May, Protest 1
informs the bondholders that the libel /
Ious publications against the company |
will he sued. On the twentieth Of May /
ne summons 81. MalespiDe, director OF
the Reform, before the sixth chamber Of
The tribunal police correctionnelle Of .
Paris. TO appear on the fourteenth OF 1
Juue. Some time later he sued also be- /
fore the same tribunal General Cluseret /
and Mr.. Warren, and before the civil .
courts NJ. SouIjgue, against whom he .
made a claim OF one million francs ,
damages. Notwithstanding these pro- 4
=ecuti0ns, the Reform, in its issue o! May 4
3Oth. maintained bravely its attacks. The 4
director, Malespine, repeated, in speak ,
ing OF the affair, the very words Of his 1
,-called libel, "This affair is q con- 4
:, uptible swindle." The EcldiTeur I
60. meier persisted also in its conduct. /
\, :, cir part Paradis and Crampon were (
- i1,. ctive. On the fourteenth Of May
5sre5is bought for 1000 francs aud one
,ond for : 1000 q pamphlet published by
certain F,'ntaIne, late sergeaut-majOr
:, - arn,iea OF the United States, and [
- - The twenti.th of May Crampon, in /
IL pewspaper, the. Finance, asserted /
,[,.i, oil the declarations made by the /
1ewspapers, and said that General Fre-