The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1893-01-26
THE PANAMA SCANDAL.
How tho Great Lottery Loan Was
Manipulated.
The Primary Cause of the Great Tumult
Which Is Now Convulsing Franco
Prominent Officials Z gagged
In Sharp Practices.

loan, writes the Paris correspondent of
the London Economist, the public had
begun to manifest q reluctance to in
vest more money in the scheme. In
1856 an issue of 500, 900 bonds was made,
but only 45S,S03 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 1883 some additional attraction
to investors was necessary.
nj. de Lesseps then proposed to raise
final great loan of GC0,000,000 francs
with lottery prizes, that sum being suf-
ficicnt to terminate the canal. But lot
terry loans require the authorization Of
parliament, and bill was presented to
the chamber March l. NJ. dc Lesscps
being, however, in immediate want OF
money could not wait for the bill to
pass through the necessary stages be-
fore becoming law, and March IA
offered for public subscription $4,000
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 were 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 8.
The events that are to become the sub
ject of the parliamentary inquiry oc-
Cured between those dates Of March
and June 8, 1883. Parliament had in
creased the amount of the loan from
600, 900, 900 francs to 10000, 900, in order
that the additional 120, 1000, 900 should be
invested in rentes in trust to insure pay
ment of the lottery prizes and the re-
demption of the bonds in ninety-nine
years, the company being only liable
for the interest.
The loan was issued in 1000, 900 bonds
at 800 francs, but only s49,249 were sub
scribed, including those taken in ex-
change. producing 100000 francs, OF
which 254, 900, 900 were for the company
and 81, ,O0o, 900 for the trust. The costs
of the issue were enormous, and are set
down in the report drawn up by NJ.
Monchicourt, official iquidator Of the
company in 1890, at 81 $50, $50 francs, or
over 10 per cent. of the amount SUBJ
scribed. Of that sum 100000 francs
is entered under the head of ''syndi-
catcs," 7,SO1,13 francs for the press
and 10, 900, ,SS3 francs for commission on
the sale of the bonds. The remaining
two millions went for the printing Of
the bonds and clerical work.
The charges brought by NJ. Delahaye
and some opposition journals against
the deputies may be and probably are
exaggerated, but they are SO precise
and in some cases are accompanied
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 bill 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
U.lGD JOlllSu 1Ol d oCsb1 ODCiItAOh
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
enissary, who called the deputy out Of
the coInmittee-room and offered him
100, Geo francs, which was declined.
H. fov.
time and obtained his terms, and the
majority for the bill was obtained. But
the deputy neglected to inform his con-
federate, who continued to sell Panama
shares, and as they made sharp re-
bound on the decision of the committee
becoming known the banker was nearly
ruined. AS he 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
mediary employed by the company, is
said to have occurred from fit brought
on by the discovery that the book con-
tanning copies of his letters had been
stolen after he had destroyed all other
documents of q nature to incriminate
him, as he was to have been made one
of the defendants in the prosecution.
He. however, employed a well-lsnown
financial agent, who disappeared few
months after committing large forgeries
to the prejudice OF the dynamite COM
pany, and who now boasts from his
hiding place that he has in his posses
sion the check-book from which the
deputies were paid.