The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1875-02-20

THE MEMPHIS AND Ell PAsO
RAILROAD swIxDLE.

The New York Sun continues
It's history of the said swindle,
aud has already shown it to be
THE swindle Of the age.
To secure such lavish and mu-
niticent appropriations for the
Memphis and FL Paso as were be-
slowed III other Pacific routes,
appears to have been the aim Of
Fremont aud his fellows; and to
this end corruption or lobby
fund.- OF several millions was
formed, aud as the Sun thinks,
spent among Congressman; but
despite all this, tho necessary leg
islation was always defeated by
rival companies.
But all losses were made up in
Paris, by the sale Of bonds. This
Is the blackest feature Of this ex-
traordinary fraud; involving as it
does the reputation of our Minis
ter to England, Mr.. Schcnck, and
France. Mr.. Washburn. No one
is surprised that Mr.. Schenck was
guiltily concerned in the swindle.
The Sun publishes the "agree-
ment' between Schcnck and Free
mont; the former being taken by
the latter with him to six WASH
bnrnc." Weherewith publish exs
tracts Of what transpircd in Paris !:
The joint resolution which pass
cd the House Of Representatives
February %, 1869, granting right
Of way simply to the Pacific, was
reported IN France as the "nation-
alixntion" Of the Memphis, FL Pa
so and Pacific, by "le Congress
Federal, }" and as guaranteeing the
interest on Its construction bonds
to the extent Of $4,000 a mile.
This Interpretation Of American
law was accepted as correct, as
were all tho other statements Of
Probst, the agent Of Fremont and
Schcnck, no matter how extrava-
gaut, by the Minister Of Finance,
and Oh tho 10Th of March, 1869,
the order was issued admitting tho
bonds to the official quotation.
But an unexpected difficulty now
presented itself. The French law
requires securities offered for sale
to pay q stamp tax. When Probst
presented himself ut the stamp Of
fec aud offered tho installncnt re.
quivcd twas refused on the ground
that no orders had been received
from the Finance Department to
that effect. lie sought the Dirsc-
tion du movement dcs fonda to oh.
tain the order, but the Director
answered "That for him the quo.
tation did not exist" There must
be an approval by the Foreign De-
par.mcnt and by tho Department
Of Public Works. II was nearly
the first Of May before all obsta-
clcs were overcome, but success
finally crowned the efforts Of
Probst, Lcssignol and Auircrman,
of Crampon and Paradis (agcnts
for Fremont and Schcnck), and
they were ready to reap the long
deferred harvest.
GORGEOUS ExTRAvA0ANcE.
They commenced operations In a
manner which must have aston
ished even the extravagant Parish.
ans. A magnificent suite of apart
ments wns taken and richly fur
nished as Offices. The company
was no longer the simple Memphis,
FL PHO and Pacific, but 1.-THE
'rranscontinental. Memphis, Ell Pa.
10 and pnciilc.n Great masses Of
maps and pamphlets were printed
and stored In one Of the rooms ol
the grand suite occupied by the nd
venturers, and were thence distri.
buted all over France, and reprin-
ted in all the principal journals
Of Paris and Of the provinces. The
maps presented the 'transconti-
mental" lines of the company as
extending from Norfolk, on the
Chesapeake bay, to San Diego, on
the Pacific, and the pamphlets
avcrred that the road hal been
"nationallzed," that all compet-
ing or intervening lines between
the terminal points on the two
oceans had been fused" with 1t ;
that the Federal Government had
granted immense subsidies in
lands, aud guaranteed the interest
on its bonds; and that the States
through which the Fused" lines
ran were about to be equally llber
al. Even the official journal, Yum
der the immediate control Of the
Minister, printed matter like The
following:
ITO favor and husten the lines Of
the plateau Of the South the Con-
grcss Of the United States has gram
| ted divers subsidies. To certain
companies q loan has been made
In greenbacks, loan redeemable ut
the Treasuary of the United States
the company is unable to pay it,
and which Is guaranteed by sec
ond mortgage on the road and Its
materials. For other companies
Congress has guaranteed purely
u II. =.