Savannah morning news. [volume] (Savannah) 1868-1887, 1882-02-09
THE UNION GENERALE.
A Financial War Between Catholics
and Jews.
Netr York Sun.

NetU York Sun.
In November last the Sun gave an account
OF the origin and methods of the financial
concern whose collapse has brought misery
upon good Catholics in all parts OF the Old
World. At that date French financial cir
cles had been greatly excited by the manipu-
latton of "cOrner' in the shares of the
Ouion Generate and the Lander Bank
About three years before a specuator
named Dervieux had founded the Union
Generate, and, being a devout man, con-
ceived the brilliant idea of inducing the
Pope to give the scheme his blessing. How
he accomplished this is not known, but may
be guessed at, some of the
Holy Fathers household being sufficiently
we'll versed in worldly matters to know a
thousand franc note when they see it. The
shares of this blessed company were soon
placed on the market, and the faithful"
French bought them as eagerly as If they
were passports to heaven. The capital of
the company was Dominally 200, 900 shares
at 500 francs each, 125 francs the share be-
ing paid up. Dervieux, however, in a
weak moment, placed the managing direc-
torsbip of the company in the hands of
one Eugene Bontoux, who had had some
experience in fnanciering in Austria.
Bontoux, quickly managed to depose
the confdipg Dervieux, who was
heard of no more in the opera
tions. Having obtained full control of the
capital of the Union Generate, Bontoux es-
tablished in Austria the Lander Bank, the
200, 900 shares of which were also 500 francs
each, one half paid up. With these nice
little sums of money Bontoux went into
mining speculations, and bought all the
Austrian mines he could at prices the own
ers jumped at. For some time Partisan
dnanciers had been watching for chance
to euchre NJ BOntouX, and, unfortunately
for themselves, instead of permitting that
gentleman's schemes to fall by their own
inherent weakness, determined to "bear"
the shares of the two companies. In this,
however, they reckoned without their host
The shares of the Lander Bank were
all in the hands of Bontoux, and
the French priests and devout old wo-
men would not part with one of the sane
titled shares of the Union Generate. The
"bears," therefore, being distinctly "cor-
nered," Bontoux proceeded to make them
dance, and calmly put the Union Generate
shares up to 1850 francs and the shares of
the Lander Bank to 1900 francs. One
| Partisan banker was said to have paid ,00O,-
0O0 francs before Bontoux would "let up"
on him. Amusing stories were told about
| other prominent ''bears." NJ Banberger
went down on his knees and begged Bon
| tOux to have mercy. Three Hebrew bank
ers went to the Archbishop of Paris and
| offered to be publicly baptized as Christians
| II he would induce BontOuX to lend them
| the shares they had contracted to deliver.
The struggle between the Union Generate
and the brokers the Paris Stock Ex-
| change assumed then a very bitter form.
| NJ. BontOuX had the whole Catholic world
at his back-both clerical and arlstocratic
The COmte de ChambOrd was the owner of
| S. 000, 900 francs worth of the company's
Tho 1o 10 Rooa h.
de Nun, the d'Harcourts, the DE Microbes,
the Polish magnates and all the Faubourg
st. German had invested largely in the
concern. The financial war became actually
a war betwaen the Catholics and the Jews.
The Catholics were 'long," the Jews
were "short" OF the stock, and the death
| of Mr.. James Rothschild was attributed
to the loss OF some 8O,OOO,OOO francs on
the short side of the market. The
Hebrew contingent seemed to be badly
beaten, but shrewd observers were inclined
to believe that their defeat was only tempo
rary 1t is notable that such schemes as
| the Union Generale-which professed to be
| guided in its operations solely by desire
10 further the cause of charity by enabling
its adherents to gain an enormous percent
| age on their vestments--invariable come
TO grief sooner or later. Goodness and
cent per cent. seldom row In the same boat
without upsetting 1t. The Catholics had
the Jews by the throat for a while, but
che laughs best who laughs last" aud the
| children Of Israel have now repeated their
exploits Of the land of the PharOahs.
The financial methods of the Union Gen
erale were by no means the methods ad-
hered to by business men. A fair sample
OF the operations Of this company, as well
| as of the Lander Bank, which was but
branch OF the Union Generate, is found in
| the purchase of the Innesberger Iron Works
| for 600 900 forms more than the proprietors
| had valued them at a month before the sale.
| The Pesth Semlin Railroad. which is an
| other of NJ. B0ntouX's bonanZas, has always
been a losing concern. That gentleman
also invested an immense sum of money in
| bribing the Servian Government to grant
him the concession for building a railroad
| through that country. This railroad is In
course of construction, and cannot possibly
pay any dividends for years after 1t is COM
peted. Besides these enormous outlays,
| about ,000 600 f0rins were spent in adVer-
tising the Lander Bank.
The original capiral of the now "busted"
concern was 20, ,0OO,0 600 francs. This was in
| 1878, and at that time one quarter of the
twenty-five millions had been paid up. In
the next year the capital was doubled, the
new stock being allotted by preference to
the old stockholders, who paid One-quarter
on the new stock. Thus the capital was
| idASCO W COIOOOsOOO AAdHNos VI MnlCu lS3OoO,-
900 were paid in. In 1880 the capital was
again doubled, bringing it to 100 100000
francs, and last November it was resolved
TO increase 1t once more to $4,000, 600
francs. 1t was also proposed to apply the
earnings of 1881 and the premiums on the
stock to the paying up in full Of
the 100, 600 600 francs of outstanding capital
The new stock was to be issued in the same
manner as before. These so 000, 900 francs
were ordered to be paid up on or before
January 20, but before that date the time
was extended to January 81. Whether they
will ever be paid up now is more than doubt
| full That the Union Generate had at one
time the confidence OF the public is entirely
| proved by the fact that the deposits, which
in 1873 were 10000 600 francs, were at the
close of last December no less than $140,-
600, 900 francs. The wildness of recent
speculation IN France, and the haste which
was lately shown in throwing over stocks,
excite the graVest fears for the future.
1t is believed that NJ. Bontoux is largely
interested in the shares of the Ottoman
Bank; indeed, that the Union Generate con-
trolls four-ffths of the capital of that In
| stItution. The stock of the Ottoman Bank
was fercely attacked by the bear party
| mainly composed of the Jew bankers-and
it was believed in Paris that the stock was
sustained only by large purchases by NJ.
Bontoux. But, according to another story,
| its strength was caused by the buying of
some 100 900 shares by one of the so called
'fnduslrial' institutions, which have been
started merely for gambling on the bourse.
The short and long of the story is that
| French bankers and brokers had to throw
overheard all the securities they held for
themselves and their customers, and that
this process of liquidation will have to be
followed up till stock speculation is brought
back to reasonable basis.
Hanged With Blanket Strips.
| Sn I Q-Obar1oc Mil1or