Los Angeles herald., 1892-12-17
THE INQUIRY WILL GO ON,
More Panama Canal Frauds
to Be Unearthed.
The Investigating Committee
Will Not Resign.
Charles De Lesseps and Other Canal
Directors Arrested.
The Arrest OF M. Ferdinand De Lessepf
Also Decided Upon-Wagon Loads
OF Incrinin ating Docu-
ments Seized.
By the Associated Press.

By the Associated Press.
PARIS, Dec. 16.-The Panama investi
cation committee, after lengthy dis
cussion of the situation today. unani
mously decided not to resign.
As yet no warrant has bseu Issued fol-
the arrest Of Ferdinand De Lesseps. Il
was decided to make the arrest, how
ever, at meeting last night.
Charles De Lesseps, Marius Fontaine
and M. San Leroy were arrested today
by direction of the minister Of justice,
Bourgeois, for alleged connection with
Panama canal frauds. Henry Cottu, for
whose arrest an order was also issued,
has fled to Vienna. San Leroy is
charged with having accepted bribe as
q member of the chamber of deputies.
| The arrested Panama canal directors,
when arraigned before Magistrate Fran
quelle, protested their innocence. They
were committed to the Mazas prison.
The charges against the officers OF the
company are that they jointly made use
of fraudulent imaginary credit; that
they dissipated capital intrusted to
them for specific purpose. and swim
died others out of part or all of their
means of living. These offensee come
within the reach of seven articles of the
penal code.
THR PENALTIES PRESCRIBED.
The penalt es to which the heads of
the Panama company have made them
selves liable, should the theory of the
prosecution be established, are thus
laid down:
"Whosoever by making use OF false
name or quality. or resorting to fraudu-
lent devices to persuade another or 9TH
ere, of the reality of imaginary en-
terprises, or OF power or credit, or to
give rise TO the hope or fear OF chi
merical event or undertaking. attempts
to obtain money or any other property
or receipts or discharges, is liable TO one
to five years imprisonment and fine
of E2 to Gi2O. The convict may
also be deprived of his civil rights
for five to tenyears and be forbidden to
vote at legislative, municipal or other
elections; to carry arms or to act as q
guardian. An accomplice is liable to
the same penalty"
1t is noteworthy that the accused
parties in this case are not to be prose
cuted for infractions of the laws regu-
lating financial and industrial COM
panies, but under the articles of the
common law The theory, therefore. of
the prosecution is that the Panama
affair was swindle from the beginning.
he original concessionaires, however,
are settled by prescription.
The prosecution OF M. Charles De
Lesseps, Fontaine and Charles San Le-
roy will be entirely distinct from the
others.
SAN LERoY's CHANGE OF FRONT.
San Leroy is said to be badly impli-
Gated by documents and other evidence
brought to light. He was not on the
Panama board. but suspicion always at
tached to him on account of his sudden
change of front when the lottery loan
was being voted Oh. Atfirst he opposed
the loan, but turned the scale at the
last moment by voting in it's favor. In
hearing before the Panama investigat-
ing committee few days ago San Le-
roy stated that he changed his vote in
obedience to the wishes of his constitu
ents. 1t is understood that the govern
ment has documentary evidence show
ing the exact amount paid San Leroy for
his vote.
Besides making arrests the authori-
ties searched the residence of De Les.
seps, Fontaine, Cottu and San Leroy,
and seized mass of documents throw
ing new and important light upon the
Panama frauds and corruption.
The police have been making whole
sale search for documents and other
evidence in the Panama canal cases
They visited the premises of the Panama
Canal company and Thierree &.Co. Be-
sides searching Thierree's premises,
they searched those of his partner,
Proper, who joined with Thierree in
refusing to enter into the particulars
about the 26 checks to bearer which the
company had given Baron Reinach in
return for check for 8 800 495 francs,
drawn by the Panama company. The
rs checks were believed to be the key to
the mystery OF the corruption and fraud.
The police also searched the residence
of Herr. alleged to be deeply implicated
in the Panama schemes OF Reinach. An
enormous quantity of documents was
seized, altogether. So great was the
number that IA vans were required to
transport them.
THE HONOR OF FRANCE BETRAYED.
The only topic OF conversation in po-
litical and social circles ia the Panama
scandal, and the arrests today caused
the greatest excitement, although ru-
NOR had it last night that such action
had been determined upon. What the
outcome will be no one is able to pre-.
dict, but it can be eaid that those who
have the best interests OF the repu blicat
heart are deeply grieved at the venslity
and selfishness displayed by men in
high positions, many of whom were
sworn to preserve the honor OF France.
The evening papers assert that four
more important arrests are imminent.
1t IS reported that the government
will aek the chamber of deputies to
authorize the prosecution of a number
OF its members. Only the members of
the right and some Radicals disapprove
the governments course
Jules Picard. president of the Suez
Canal company. has written letter cay
ing the shareholders in the Sutz canal
need not be alarmed over the arrest Of
Charles De Lesseps, as the Sutz Canal
company is absolutely certain to pro-
gress satisfactorily.