New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-03
THE PANAMA CANAL INQUIRY.
SOME OF THE CHARGE BROUGHT AGAINST DE
BESSEPs AND HIS ASSOCIATES.


DESSEPs AND HIS ASSOCIATES.
Paris, July 2.-Thc inquiry into the alleged malad-
ministration Of the Panama Canal Company which
IS proceeding before VI. Pinet, Consriller IA c0ur
d'appH will probably be OF n most protractcd and
comprehensive character, If it is rcally meant
ii thorough. The DesIesseps clique is not now the
mighty power 1t was, but has still wide influence I'm
high political quarters and throughout the press. OF
De Le,seps declares that he courts inquiry and
only fears that il may be pronounced needless. The
French pubh sts, who have from The inception of the
canal criticised 1t as rninous enterprise have once
more taken up the oause Of the stockholders and.
der the lead Of NJ Leroy Beauleu are trying to obtain
a genuine and exhaustive investigation.
The EcOnOmiste Francois - has denounced the
Panama affair the greatest financial scandal of the
nineteenth century," and demands the trial OF the per-
sons alleged 70 he responsible for the absorption Of
l,@0OOOOOOO francs, Snatched from the savings Of
small capitalists, many of whom have been ruined and
numbers Of whom are dead through despair No in
quTy, 1t Is declared will be satisfactory unless Il
goes back Of the first attempt at raising capital
in 1879, which, ending in failure, was followed
by second attempt in 1881. whch subscriptions were
got on the allegation that contract had been
made with NM CouvcuX and Ilersent 10 dig the canal
throughout, under forfeit Of 100000 francs This
contract II is asserted never existed,
mite FORM though the faith the subscriptions
were obalned. subsequent agreement with an Anglo
Iutch syndicate on the existence of which more cap
tai was raised Is also alleged TO have had no saclen,
validity IN brief IL IS asserted that series of agec
mchtS on the faith OF which share capital was issued
were FICTITIOUS, that many millions were squaldered I'm
bri6ng tie press throughout France induce by fs
acious statements the small capitalists TO invest
ara that millions more w re appropriated by leading
members Of the Council Of Admin strat'on having a
community Of Interests with certain Of the contractors
These specific charges may become tie basis of one Of
the greatest trials OF modern times
The whole affair of the Panama Canal Is so bad thai
few miSstatement like those contained in the above
dispatch cannot make it appear worse. In the first
place, NJ Lcroy-i eaulieu and hi, paper "LEconomst
francas rabid, fcctrade organ should be the last
to deplo:e the loss Cf French capital In anv enter
prise, after they have been foremost in inducing
French investors to sink vast amounts of money in
the Tunis and T0nkin undertakings. In the second
place, the remembrance Of the success f the Suez
Canal enterprise, and the great reputation Of VI de
Lessep were the only causes of the popularity Of the
Panama Canal The contract with MesSrs Couvrcux
and HerSent had 50 little to DO with that early popu-
larity That subscriptions continued to flow into the
companys treasury after the canceling of that con
tract Faith in the enterprise was not shaken, even
when II became known that the contractors instead Of
being called upon 70 pay money pcnalty for the nom
IMMINENT 81 their contract received large indemnity
from the company. The whole trouble occurred afe7
ward, through the ncedlble mismanagement Of the
enterprise. The company succeeded in concealing +he
nsinanaGement for long time through the sub
sies II gave 70 the press and especially e. La Petit
Journal whose imlNdent optimism brought ont the
savings OF It's 100000 readers most Of them anltOrs,
working people and bourgeois with small incomes
Finally it probable that the Indictment against ~
de LessepS and The Panama directors rests on the fact
that they deliberately deceived the public by calling
for more subscriptions after they knew that NJ Rous-
Seau's report Of the Government Commission sent 10
the lsthmuS Represented the enterprise on It's last
legs. The company's prospectus for that last appeal
for funds stated on tie contrary that everything was
proceeding finely hence the charge Of false prrenccs
which has boen brought against Vi. de Lesscps and his
cadyut0Ia The latter were aware that the ship was
sinking, and they were leaving IT 10 launch Themselves
in other scfPHes-litc NJ Gotta Tor Instance who had
contracted for making loan OF S26 900 900 to Guate
IN London.