Daily independent. [volume] (Elko, Nev.) 188?-1915, 1893-01-23
THE PANAMA SCANDAL.
How the Great Lottery Loan Was
Manipulated.

| 1856 an issue of SOC, 900 bonds was made,
, but only 500 were subscribed. In
, 1887 fresh subscription of the same
number was opened, and only 258,SS7
were taken. The source had almost
. dried up, and when money was required
again in 1888 some additional attraction
to investors was necessary.
NJ. Gle Lesseps then proposed to raise
a final great loan of C00,000,000 francs
| with lottery prizes, that sum being suf-
ticicnt to terminate the canal. But lot
terry loans require the authorization of
parliament, and 4 bill was presented to
the chamber March /. N. &c LcSscps
being, however, i'll immediate want Of
| money could not wait for the bill to
| pass through the necessary stages be-
fore becoming law. and March Il
| 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 500. 900 bonds offered only 112,-
| $50 were taken up. The situation had
become desperate, and the undertaking
| ccNld 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 juno S.
The events that arc to bCcCElc the sub
ject Of the parliamentary inquiry oc-
Cured between those Gatc6 Of March l
| Gntt';jUnc 9, 1888. Parliament had il
creased the amount Of the loan from
Geo, O01, eco francs to 80, 900, coo, in order
| that the additional 1"9, GOO should DC
| invested in rc1teS in trust to insure pay
Incnt OF the lottery prizes and the re-
| dCrnption Of the bonds in nincty-Rine
| years, the company being only liable
| fOr the interest.
I nc loan was issued in 1000, 600 bonds
| az 500 francs, but only $40. go were sub
| HcriDeA, including those taken in OK
! change, producing 305,000,000 francs, Of
| which Poi, G00,020 were for the company
and 5l,000,00O for the trust. The costs
| of the issue WerC enormous, and are set
| down il the report drawn up by NJ
| MOnchicouru, Official liz Iidator of the
| cOulpany il 1890, ut II, $50, TS0 francs, or
| over 10 per cent. of the amount sub
! Scribcd. OF that sum II, ZOO, 900 francs
| is entered under the head of ''synGi-
| Gates" 1901, 131 francs for the press
I and 10,000,S32 francs for commission on
| the sale Of the bonds. The rcraaininG
| two millions went for the printing of
| the bonds and clerical work
| The charges brought by III. Delahayc
and Gonlc opposition Journals against
the deputies may be and probably arc
| exaggerated, but they are SO precise
iii some cases arc accompanied
| with details so circumstantial as to
leave the impression that they arc not
absolutely unfoundcd. 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 TN
decided, but went to the company and
offered his vote for 1000 francs. The
| proposal was declined, and the deputy
| then joined bank for bear operation
in Panama shares, with tho intention Of
| Giving his casting vote against the bill
The company, however, reflected on
fiCarniEg OF the bear operation in Pan
ltaa shares, and sent to the chamhcr lis
Il1i352ry, who called the deputy ont Of
| oEC committeeman and offered him
| 100. 600 francs, which was declined.
| The deputy was sent for second
lime and obtained his terms, and the
majority for tho bill was obtained. Bat
| tao deputy neglected to inform his con-
fcdcratc. who continued to SCH Panama
ihares, and as they made q sharp re-
| 0ou7d on the decision Of the committee
becoming known the banker was nearly
[ cuinca AS. he has since been quite
| cuincd and has abscondcd his name has
been given, but that of the deputy is
not yet revealed The sudden death OF
Earon &c Rcinach, who was the inter
ncdiary employed by the company, is
I said To have occurred from fit brought
on by The discovery shat the book con
tanning copies of his letters had been
? stolen after he had destroyed all other
documents of nature to incriminate
D him, rs he was to have been made one
| OF the defendants i'm the prosecution