New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-10

The charge of fraudulent proceedings a9alhst
Ferdinand de Lesseps, Charles de Lcsseps, henrl
Cottu and Marius Fontane was held to be proved
On this point the Judgment referred to the COM
panys methods in issuing loans, the mendacious
Official bulletins and the persistent pulling dohe
by the press at the instance OF the directors.
These practices, the Judgment stated, wnen ho'
directly originated or indorsed by the directors
had been connived at BY them. Ferdinand de
Lesseps aided and abetted by his son CharHs NJ.
Cot,u and NJ Fontane had persistently concealed
the operations of the Canal Company in order that
the quotation Of shares might not be affected uh-
fayorably. The directors had dealt with under
writing syndicates, which, so far as their utility
was concerned, were fictitious and were known to
be fictitious In underwriting loans these syn
dicates had taken upon themselves no risks, and
vet they had received enormous sums from the
company The expenses necessarily attendant
upon the issue of loans had been grossly exas-
gerated by the directors, and this exaggeratlon
also constituted fraudulent act.
The plea of the defence that, despite these
fraudulent acts, the directors We're not amenable
because the loan especislly in question had not
succeeded, the decision pronounced worthless IN
view of the evidence that the directors had not
scruped to expose the capital OF the company "
the risks involved in the fresh issue, and even
with the proceeds of the loan BY Article 40S OF
the Codo concerning treach of trust il was not
necessary that Che money should have been mis-
appropriated or souandered, should have Dehe'
flied the directors. in order that they be fouhd
guilty Their fraudulent intent was the same
whether or not their purpose was carried ou''
THIS intent was proved by the fact that the sums
paid TO Baron Rcinach, Hugo Obcrndoeriter anu
others could not he regarded as having oeeh SUI
scnbed for the purposes to Which they were
put. ,. -,
In dealing with Custave EiffePs breach o'
trust tho decision said that NJ. Eihel had re-
ceived l2C, 900 900 francs for the conStrucioh u
tea locks end had promised to compete ,he," . -.
1890 The evidence had shown tnat nc nan aU.
even pul chased the specified materials , b. baa
in the construction of tess locks; III Iact, ne
bought in France all told, but l,Z2ao1' tur,ier. i,
worth OF material. lie had pretehhueu u'eaar.,rcn
more to fulfil the obllgatiohs hv Notwithstanding
the funds .,o son,eno.s. AS given
:, Judge Perivier then reao '''e 'e''''
Immediately after the reading Of the he sentences
" EifieI left the courtroom WIN o, ms the Iiish
whom he has instructed aIpl !" dpsd do Isseps and
N,rus Fontsne remained unceer arrest ,a,9sd n9sd
ksksd hacrard ard disheartcned as .hey ucPI PuhIc
~ Henri Cottu for the once '' WV
- sentencing Of the prisoners in the rnn rSnama in.
tj3 eaused the utmost constcrnauon. tho
terr cxcitemcnt at the Palais Justice In In the e
norning WAS increased in the afternoon py vi ~
cssleused absence OF the Judges from co"r. ..m' ~
ked wss not until o'clock did the lud2es '%me Se
theiri places The delay was said 70 ~, The
70 Ne necessity Of final consultation, wmva w,soa to
psocrednS in the Chamber yesterday caasea se 10 !"
b postpoSed until II this morning, Chalh,eS ny d..
Le~sps was calm during the recital oi .he sen. eo
eision, but burst into tears when ne hea1u M o,so
tence passed upon his father: NJ Fontane Az a'so
was pfostrated Charles de LesseIs sent ,eIs-
rsm 10 La Chesnaye. informing Nine; &c 80 80
seps Of the result Of the trial. Nine de LessSps ~,
probably win not communicate the news 70 nsn -,
husband unless compelled by circumstances 10 ny ~
o. The general belief is that the sentence Will
never be executed against him. =, nan
The fines imposed were the utmost iegai gem,
sIty, but they will not prevent acfion u. i""
10 recover the money s1uandcrod; .;v.r
Inc only possible appeal from the decision gaNr, ~.
sday u one to the Court OF Cassation Tor tne is I
vh&on OF the sentence. IL any legal faw can 70
iound In the triaA such an appeal will undohD'eo-
ne taken In each case.
The excitement caused bv the announcement
et the sentencer In the Parliamentary loDplce, on
me streets and In the cafes SURPASSED anythng o'
snc Kind since the opening Of the Panama inves,
ngauon.. Tho Newspaper booths were Deeaegs'
crowds fighting for the successive. special edi.
uena Newspapers sold rapidly, and ns iaS'