Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1886-07-08
WARDS COLLAl'ERALS.
Five Millions and a Half in Mexican Pa.
per-A Vigorous Denial by All Con.
cerned-International Operations Of a
CurbstOne Broker.
NEW YoRK. ,July Z

Inc new Ork w OElu tnlS morning puG-
fishes some hitherto unwritten history of a
most striking nature in regard to the repu-
dated Mexican bonds. The article tells how
George Jose and M. J. Csrvsjal, governors
of the states Of Tomaulipas and San Luis
Potos,, were commissioned by President
Juarez of the Mexican Republic, and obtain
| ed arms and supplies for their starving bat
| talions from the United States, to enable
them to continue the struggle that eventually
ended in the death of Macmillan, and the
restoration of peace and prosperity to the
Mexican Republic
| General Carvajal was sent to the United
States with authority to negotiate for money
and munitions OF war, upon terms which even
Charles the Second would have refused to
King Louis. General Carvsjal had power to
sign away to individuals enormous land
grants, telegraph, canal, mining and railroad
monopolies and franchises, so vast and valua-
| Bile that ordinarily none but sovereign states
would assume the title to them The Repub
lie seemed to be on ts last legs, and was
willing to make almost any sacrifice in order
to regain dominion over Mexican soil and to
capture Maxm.lian.
| The story turns on the fact that at the time
| of the Grant & Ward failure, Ward held in
the firms safe for redemption 50, 900, 900
worth of Mexican bonds that had already
been repudiated. If these could have been
| pledged the crash would have been avoided,
but the bonds came into the possession of the
firm to late to be of any use. 1t is now
thought that the reference continually make
by Ward to his government contracts referr-
ed directly to those made by General Carva
jail with the men who supplied him with
money and means to save the Republic and
defeat Macmillan. Connection with the
affair is vigorously denied by all those con-
cerned, and veil of mystery hangs over all.
The World publishes the facts as gathered
during long and careful investigation.
When Gen. Carvsjal linded in New York
on his mission of salvation he tell in first with
David Woodhouse, one of the Dick Swiveler
type of curbstone brokers, so numerous at
the close of the war. The General unfolded
his plans to Woodhouse and formed a com
pany known as the Omitted States European
and West Virginia Land and Mining Com
pauy," and to this company was given enor-
nous and rich Mexican franchises, and the
right to issue millions of dollars worth of
bonds. Woodbouse drew up and General
Carvajal signed the contract which is said TO
| be the most extraordinary document ever ex-
| ecuted in the State. To Woodhouse, indi-
vidually, was given a wide tract of land and
authority to build railroads, telegraph wires
and canals and TO operate mines in Mexico.
| Almost every valuable franchise within the
gift of the Mexican government was granted
| to the delighted curbstone operator. His
company was authorized to issue bonds ID
| the name of the United States of Mexico, and
he soon went to work. An issue of sc, 6,O00,-
| 600 worth of bonds was made and the Mexi-
can government drew drafts to the order of
the company. These to the extent of So,
900. 600 were paid but they were afterwards
81, "A al
BILE brokers.
The General next fell in with banker Cor.
lies, solid fnancier and gentleman of re-
pute. Negotiations were at once opened
with Corlies for money and war supplies
which ended in another liberal contract. Sup
| plies and bonds to the amount of something
in the neighborhood of 81 200. 900 were
placed largely in England. What the Mexi-
cans received from Corlies is not known.
Woodhouse and his company claimed that IN
addition to the 81 100000 Of drafts which
they endorsed they sent shipload of arms to
President Jusrez. The ship sank at sea.
1t was intimated by the Mexicans
that there were no arms on board
the ship and that it was scuttled
| for the purpose of concealing this fact.
Finally the Mexican republic rriumphed
over its enemies. Maximilian was shot.
Prayers of thanksgiving went mp from one
end of Mexico to the other and the present
government was established strongly and Sc
curely in power. Mexico, however, repudi-
ated the bonds issued in New York. As Mex
leo became richer and affairs there more SET
| tied the holders of the Woodhouse and Cor
lies bonds clamored for their money They
were treated with contempt. The Corlies
bonds were all in the hands of second parties
but of the Woodhouse bonds net much more
than $500 900 had been issued while nearly
81. 500, 900 remained in the custody of the
Manhattan Engraving Company unissued.
| At last the bonds became the laughing stock
of fnanciers and were . matter of attention
only to curbstone brokers.
| The history of these bonds is given in de-
tail. Those disposed of to Engiishmen by
Corlies were eventually paid after some diff
Guilty, made by the holders. OF the q, ,0O0,-
900 issued by the Woodhouse company only
$500 900 worth we're placed. The balance,
q, 500 600 worth we're held BY the Manhattan
Engraving Company, successor to the United
States Company, - above stated. When
this company failed, Judge Sedgwick seized
] these bonds together with the plates they