The morning call., 1892-12-17
A MASS OF FRAUD.
Panama Canal Directors
Under Arrest.
CORRUPTION WITHOUT SHAME
De Lesseps' Son i'm Prison and the
Aged Father VIII! Probably Be
Sent to Join Him.
Special to THE MORNING CALL

PARIS, Dec. 16.-Charles de Lesseps, Mar
Gus Fontane and N. San-Leroy have been
arrested by direction of the Minister of JUS
tiee, Bourgeois. for alleged connection with
the Panama canal frauds. Henry Cottu,
Tor whose arrest an order was also issued,
has fed to Vienna.
San-Leroy is charged with having ac-
copied Dribe as mem Der of the Chamber
OF Deputies
1he charges against the officers of the
company are that they jointly made use of
frauduient ima aginary credit, that they diss-
pated the capital intrusied to them for
speeihe purposes, and swindled others out
oil part or all OF their means of livelihood.
These offenses come within reach Of the
seventh article Of the Penal Code. and 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: "Whoso-
ever oy Masking use of a false name or quail
ity. or by resorting TO fraudulent devices to
persuade another or others OF the reality of
imaginary enterprises, or OF the power or
credit OF an event or undertaking. attempts
10 obtain money or any other property or
receipts or discharges is liable to five years
Imprisonment and fine Of e2 to e120 The
convict may also be deprived Of his civil
rights for five 10 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 Tor infractions
OF the laws regulating financial and indus
trial companies. but under articles OF the
common law The theory, therefore, of the
prosecution is that the Panama affair was
swindle from the beginning. The original
concesslonaires are sheltered by prescrip-
tion.
San-Leroy is said 10 be badly implicated
by documents and other evidences brought
to light. San-Leroy is not on the Panama
board. Suspicion always attached 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 tho last moment by voting in its
favor. In the hearing before the Panama
investigating committee a few days ago,
San-leroy stated that he changed his vote
In obedience TO the wishes of his eonstitu-
eDts. 1t Is understood the Government has
documentary evidence showing the exact
amount paid San Leroy for his change of
front.
Besides making arrests. the authorities
searched the residences of De Lesseps,
Fontaine. Cottu aud San-Leroy and have
seized mass OF documents throwing new
and important light on live Panama frauds
and corruption.
The only topic of conversation in politi-
cal and social circles is the Panama scan-
dal, and the arrests to-day have caused the
greatest excitement. although rHmor had il
last night that such action had been de-
termined upon.
What the outcome will be no one is able
TO predict, but it can be said those who
have the best interests of the republic at
heart are deeply grieved at the venality and
selfishness displayed by men In high posi-
tions, many Of whom were sworn TO preserve
the honor Of France.
The arrested directory. when arraigned
before Magistrate Franquelle. protested
their innocence. They were committed TO
Mazas prison.
Jules Picard. president of the Suez Canal
Company, has written a letter saying that
shareholders in the Suez canal need not be
alarmed over the arrest of Charles de
Lesseps, as the Suez Canal Company is ab-
solutely certain 10 progress satisfactorily,