The Cambria freeman. [volume] (Ebensburg, Pa.) 1867-1938, 1893-03-03
THE PANAMA SCANDAL.
How the Great Lottery Loan Was
Manipulated
The Primary Cause of the Great TumuIt
Which Is Now ConvuIsing France
Prominent OmclaIs Engaged
In Sharp Practices.

For two years prior to the lottery
loan, writes the Paris correspondent of
the London Economist the public had
begun to manifest a reluctance to in
vest more money in the scheme In
1856 an issue of 500, 900 bonds was made.
but only ass, ,S02 were subscribed In
1887 fresh subscription of the same
number was opened, and only 25s, ,SS7
Were taken The source had almost
dried up, and when money was required
again in lSSs some additional attraction
to investors was necessary
NJ. de Lesseps then proposed TO raise
final great loan of 600, ,OOO, 900 francs
with lottery prizes, that sum being suf-
ticient 10 terminate the canal But lot
terry loans require the authorization of
parliament, and n bill was presented TO
the chamber March l. NJ. de Lesseps
being, however, in immediate want of
money could not wait for the bin to
pass through the necessary stages be-
fore becoming law, and March Ii
offered for public subscription $50, 900
bonds of 1000 francs, without lottery
prizes. but which subscribers could ex-
change for new bonds when the lottery
loan was authorized.
OF the $4,000 bonds offered only 49,
4S3 We're taken up. The situation had
become desperate. and the undertaking
could only be saved by the passing of
the lottery loan bill. The bill was
passed successfully by the chamber and
the senate, and became law on June s.
The events that are To become the sub
ject OF the parliamentary inquiry oc-
currcd between those dates of March !
and2 2unc :, IssS. Parliament had in
creased the amount of the loan from
COZ, ,O00. OO3 francs to 30, ,OO0. 900. in order
that the additional I20, 900. 600 should be
invested in rentes in trust to insure pay
ment Of the lottery prizes and the re-
demption Of the bonds IL ninety-nine
years, the company being only liable
for the interest
4 1-ic loan was issued in =, 900, 900 bonds
II 800 francs, but only si9.2f9 were sub
scribcd, including those taken in ex-
change. producing sos. .OOO, 900 francs. of
which 2Ji, ,OO0, 900 were for the company
and 81 900 900 for the trust The costs
Of the issue weru enormous, and are set
down in Lhc report drawn mp by VI.
Monchicour,, official liz q.Iidator of the
company in 1890, at 81, go, $50 francs, or
over 10 per cent of the amount sub
scribed. OF that sum lI,OO0.O 900 francs
II cAltENhl lllt hc1Al OF SslAl-
Gates" 1901. l3I francs for the press
and ID. 300, S32 francs for commission on
thc sale of the bonds. The remaining
two millions went for the printing of
the bonds and clerical work.
The charges brought by VI. Delahaye
and some opposition journals against
the deputies may bc and probably are
exaggerated, but they are so precise
Il
with details so circumstantial as to
leave the impression that they are not
absolutely unfounded. Take the story
told of the vote on the loan bill in the
chamber. The committee consisted of
eleven members, of whom five were in
favor of the bin and five hostile. The
eleventh, it is said, pretended to be un-
decided. but went TO the company and
offered his vote for 200, 900 francs. The
proposal was declined, and the deputy
then Joined n bank for a bear operation
in Panama shares, with the intention of
giving his casting vote against the bill
The company, however, reflected on
learning of the bear operation in Pan
anna shares, and sent to the chamber its
emissary, who called the deputy out of
the comnittee-room and offered him
100, 600 francs. which was declined.
The deputy was sent for 4 second
time and obtained his terms. and the
majority for the bill was obtained But
the deputy neglected TO inform his con
federatc who continued to sell Panama
shares. and rs they made a sharp re-
bound on the decision of the committee
becoming known the banker was nearly
ruined A. hc has since been quite
ruined and has abSconded his name has
been given, but that of the deputy is
not yet revealed. The sudden death of
Baron de Rcinach, who was the inter
mc,liary employed by the company, is
said to have occurred from tit brought
on bv the discovery that the book con-
tanning copies of his letters had been
stolen after he had destroyed all other
docuIacnts OF nature to incriminate
him IS he was to have been made one
of the defendants in the prosecution.
He, however, employed a well-known
financial agent, who disappeared few
months after committing large forgeries
10 the prejudice Of the dynamite com
pauy, and who now boasts from his
hiding place that he has in his posses
sion the checll-booll from which the