The Arizona sentinel., 1893-08-19
THE PANAMA SCANDAL.
How the Great Lottery Loan Was
 Manipulated.
The Primary Cause of the Great TumuIt Which Is Now COnvulsing France Prominent Officials Engaged
 in Sharp Practices.

Prominent Officials 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 1886 an issue of 500, ,000 bonds was made, but only 45S,S02 were subscribed. In 1887 a fresh subscription of the same number was opened, and only 25S, ,S87 were taken. The source had almost dried up, and when money was required again in 1888 some additional attraction to investors was necessary.
 NJ. de Lesseps then proposed to raise final great loan of 600, ,O0O,000 francs with lottery prizes, that sum being sui fcient to terminate the canal. But lot tery loans require the authorization of parliament, and a bill was presented to the chamber March 1. NJ. de Lesseps 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 35O,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 350, 1000 bonds offered only 112,- 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 successively 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 1 andsijune 8, 1888. Parliament had in- creased the amount of the loan from GOO, 900, 900 francs to 720, ,000, ,000, in order that the additional 12O, 900, ,00O 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.
 1Le loan was issued in 2,000, 900 bonds at 300 francs, but only 649, ,249 were sub scribed, including those taken in ex- change, producing 3O5, 100000 francs, of which 254, 1000, ,OOO were for the company and 51, ,O0O, 900 for the trust. The costs of the issue were enormous, and are set down in the report drawn up by NJ. MonchicourU, official iqIidator of the company in 1890, at 31, ,25O, 7SO francs, or over 10 per cent. of the amount sub scribed. Of that sum 100000 francs is entered under the head of "syndi- cates," 7,3O1, ,131 francs for the press and 10,900, 832 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 M. 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 then joined 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- ana shares, and sent to the chamber it's emissary, who called the deputy out of the committeeman and offered him 100, 900 francs, which was declined.
 The deputy was sent for a second 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 a 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 Reinach, 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- taining copies of his letters had been stolen after he had destroyed all other documents of nature to incriminate him, as 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 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 deprties were paid.