The record-union., 1892-12-17
Special to the RECoRD-UNIoN.

PARIS, Dec. 1G.-Charles de Lesseps,
Marcus Fontane and NJ. San-Leroy have
been arrested by direction of the Minis
ter Of Justice, Bourgeois, for alleged con-
nection with the Panama Canal frauds
Henry Cottu, for whose arrest an order
was also issued, has fled to Vienna.
San-Leroy is charged with having ac-
cepted bribe as a member of the Cham
Der of Deputies. The charges against the
officers of the company are that they
jointly made use of fraudulent imaginary
credit; that they dissipated the capital in
trusted to them for specific purposes, and
swindlcd others out OF part or all of their
means Of living. These ohenses come
within reach OF the 7th Article of the
Penal Code. The penalties to which the
heads Of the Panama Company have
made themselves liable, should the theory
Of the prosecution be established, are
thus laid down: "WhOsoever, by max
ing use of a false name, or quality, or by
reSorting to fraudulent devices to per
suade another or others of the reality of
imaginary enterprises, or of the power or
credit OF an event or undertaking. at
temptS to obtain money or any other
property, or receipts or discharges. is
y Il
fine of f. TO stl2U. The convict may also
be deprived Of his civil rights for five to
ten years and be forbidden to vote at the
legislative. municipal or other elections.
to carry arms or to act as guardian" "
An accomplice is liable TO the same
penalties.
1t is noteworthy the accused parties in
this case are not to be tried for infractions
OF the laws regulating financial and in
dustrial companies. bur under articles of
the common law. The theory, therefore
of the prosecution IS the Panama affair
was swindIe from the beginning The
original cOncesSlonaireS are sheltered by
prescription.
San-Leroy is said to be badly impli-
Gated by documents and other evidence
brought to light. San-Leroy is not on the
Panama board. Suspicion always at
tached TO him on account of his sudden
change OF front in the lottery loan when
being voted on. At first he opposed the
loan, but turned the scale at the last mo-
ment by voting in its favor. In the hear
ing before the Panama Investigating
Committee few days ago. San-Leroy
stated that he changed his vote in obedi-
ence to the wishes of his constituents. 1t
is understood the Government has docu-
mentary evidence showing the exact
amount paid San-LerOy FOR his change Of
front. Beside making arrests, the au-
thOrities have searched the residences of
De Lesseps, FOntaine, Cottu and San e.
roy and have seized a mass of documents
throwing new and important light on
the Panama frauds and corruption.
The only topic of conversation in politi-
cal and social circles is the Panama scan
dial, and the arrests to-day have caused
the greatest excitement, although rumor
had 1t last night that such action had been
determined upon.
Nv hat - will hn ;,
able to predict, but it can be said of those
who have the best interests of the repub-
lie at heart that they are deeply grieved
at the venality and Selfishness displaved
by men in high positions, many of
whom were sworn to preserve the honor
Of France.
The news of the arrest of the Panama
Canal directors has caused a sensation in
the Chamber of Deputies, and there is
much excitement in the lobbies. Some
members of the Panama Commission of
Investigation have proposed to suspend
the inquiry.
The police have been making whole
sale search for documents and other evil
dence in the Panama Canal cases. Thev
visited the promises of the Panama Canal
Company and Thierree GC Co. Beside
searching Thierree's premises, they
searched those of his partner, Propper.
who joined with Thierree in refusing to
enter into particulars about the twenty
six checks TO bearer, which the company
had given to Baron Reinach in return for
a cheque for 1880. .495 francs drawn by the
Panama Company. The twenty-six
checks were believed to be the key to the
mystery OF corruption and fraud. The
police searched also the residence of Hetz.
alleged to be deeply implicated in the
Panama schemes OF Reinach.
The Panama Investigating Commits
sion, after a lengthy discussion of the
situation, to-day unanimously decided
not TO resign. AS yet no warrant has been
issued for the arrest of Ferdinand lie Les-
seps. 1t was decided to make the arrest.
however, at the meeting last night. The
prosecution OF Charles de Lesseps, Fon-
tame and San-Leroy will be entirely dis
tinct from the others.
An enormous quantity of documents
were seized. So great was the number
that fourteen vans were required to trans
port them.
The evening papers assert that four
more important arrests are imminent. II
is reported that the Government will ask
the Chamber of Deputies to authorize the
prosecution of a number of it's members
only members of the Right and some
Radicals disapprove of the Governments
course.