The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-12-17
Charles de Lesseps and Deputy
San Leroy Arrested.
THEIR PRIVATE PAPERS SEIZED.
Leaders in the Stupendous Canal
Swindle Dragged Away to Prison.
Ferdinand de Lesseps, the Great Engi-
neer. Suffers with the Rest-Loewe
& Co., Gunsmiths andFriends Of Cap.
rtvi, Made Overtures t. Boulanger.

PARIS. Dec. 16-Charles de Lesseps. N. San
Leroy, member of the deputies. and Marius Fon.
taine have been arrested, by direction OF Min
lister OF Justice Bourgeois, for alleged connec-
ton with the Panama canal frauds. Ferdinand
de Lesseps, son of the great engineer, is to be
arrested. and Henry Cotter, for whose arrest an
o-der was issued. has fed TO Vienna. San
Leroy is charged with having accepted bribs
as a member OF the chamber of deputies. The
charges against the officers OF the company
that they jointly made use of fraudulent and
imaginary credit: that they dssipatcd the capt
tai intrus,ed 10 them for specific purpose, and
swindied others out OF part or all of their
means of living These offenses come within
reach OF seven articles of the penal code. TO the
penalties of which the heads of the Panama
company have made themselves liable should
the theory of the prosecution be established a.
laid down. Whosoever, by making use of false
name or quality, or resortiug to fraudulent de-
vices 20 persuade another others OF the reality
OF imaginary enterprises, or of power OF credit.
or to give rise to hope or fear OF a chimercai
event or undertaking, or attempts to obtain
money or any other property or receipts or dis
charges is liable to one 10 Ave years imprison-
ment and fine of from to fl20. The convict
may aso be deprived OF his civil rights for five
to ten years, and be forbidden 10 vote at iegisa-
tive, municipal or other elections, TO carry
arms or to act guardian. Accomplices
liable TO the same penalties Ii Is noteworthy
that the accused parties in this case will not be
tried for iniract;on OF the laws regulating finan-
cial and Industrial companies, but under the
articles OF common law. The theory, therefore,
Of the prosecution OF the Panama affair Is thar IL
was swindle from the beginning.
san Leroy is said to be badly implicated by
documents and other evidence brought 10 light.
san Leroy was not OF the Panama board Sus.
picion always attached to him on account OF
his sudden change of front in the lottery loan
when it Was being voted on. At first he opposed
the loan, but turned the scale at the last mo-
ment by voting in its favor Ia the hearing be-
fore the Panama investigating committee Il
few days ago. san Leroy stated that he changed
his vote in obedience to the wishes of his con.
stitueuts. 1t is understood that the govern
ment has documentary evidence showing the
exact amount paid San Leroy for this change OF
'front.' Beside making arrests, the authorities
searched the residences of De Iesseps, Fontaine,
Cotter and San Leroy and seiZsd u mass of doc
uments throwing a new and important light on
the Panama frauds and corruption.
The Panama Investigation commission. after
lengthy discussion of the situation today,
unanimously decided not 10 resign
As yet no warrant has been issuei for the ar.
rest OF Ferdinand do Lesseps. II was decided to
make the arrest, however, at q meeting last
night The prosecution of Charles de Lesseps.
Fontaine and San Leroy will be entirely distincs
from the others.
An enormous Quautity Oh uOcumeuto was
seized. So great was the number that fourteen
vans were required to transport them. An
evening paper asserts that four more Important
arrests are imminent 1t Is reported that the
government will ask the chamber OF deputies to
authorize the prosecution OF number OF its
members. Only members OF the Right and some
Radicals disapprove the governments course.
The only topic OF conversation in political
and social circles 10 the Panama scandal. aud
the arrests today caused the greatest excite
ment, although rumor had 1t last night that
such action had been determined upon. What
the outcome will be no one Is able TO predict,
but it can be said that those who have the best
interests Of the republic at heart are deeply
grieyed at the venality and seltishness displayed
by men in high positions, many OF whom had
sworn to preserve the honor OF France.
The news of the arrest OF the Panama Canal
Company's directors caused q sensation in the
chamber of deputies and much excitement in
the Hobbies. some of the members of the
Panama commission of investigation proposed
to suspend the inquiry.
The police have been making a wholesale
search for documents aud other evidence in tho
Panama canal case. They visited the premises
of the Panama Canal Company and There u
Co. Besides searching There's premises
they searched those of his partner, who engaged
with There in refusing 10 enter into the par
ticulars about the twenty-six checks to There
which the company had given Baron Rcinaeh
in return for a check for $500. .i95 francs drawn
by the Panama Canal 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 Herz, alleged to
be deeply implicated in the schemes of Reinach.
The arrested directors. when arraigned before
y Magistrate frauqGelle, protested innocence.
They were committed to Mazas prison.
Jules Picard, president OF the Suez Canal
Company, has written letter saying that share
holders in the Saez canal need not be alarmed
over the arrest OF Charles de Iesseps, as the
suez Canal Company is absolutely certain 10
progress satisfactorily.
VIENNA Dec l6.--ft is expected that scandal
Gus developments regarding the Panama canal
enterprise Will lead to raproachement be-
tween Russa and Germany, owing TO the fact
that the fail OF Rouvier. French iniuister of
finance, will prevent Russia from obtaining
loans.
LONDON, Dec ia Paris correspondent says
that member OF the investigating COMMITTEES
who witnessed the seareh at the house OF Baron
Beinach states that enough poison was seized to
Kill q whole garrison.