The DeLamar nugget. [volume] (DeLamar, Idaho) 1891-1900, 1893-02-11

How the Great Lottery Loan Was
Manipulated
Tho Primary Cause Of the Great rumult
which u Now Coavulsing Franco
-Preninsnt OaciAis Engaged
n sharp Practices.

l
For two years prior to the lottery
loan, writes the Paris correspondent Of
, the London Economist, the public had
i begun to manifest reluctance to in
vest more money in the scheme. In
1886 an issue Of 500, 900 bonds was made,
but only 458, 800 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 1888 some additional attraction
to investors was necessary.
NJ. de Lesseps then proposed to raise
final great loan Of 600, 000, 900 francs
with lottery prizes, that sum being SUI
fcient to terminate the canal. But lot
terry loans require the authorization of
parliament, and bill was presented to
the chamber March 1. M. 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 $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 $50, 900 bonds offered only 49,
| 4SS 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 s, 1888. Parliament had in
creased the amount of the loan from
600 900, 900 francs to 7S0, 900, 900, in order
that the additional 100, Zoo, 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.
lie loan was issued in 1000, 900 bonds |
at 300 francs, but only S49, 249 were sub
scribed including those taken in ex-
change, producing 305, 000, 900 francs, of
which 254, 900, 600 were for the company
and 81, 900, 900 for the trust. The costs
of the issue were enormous, and are set
down in the report drawn up by NJ.
MonchicourS, Official li4-lidator of the
company in 1890, at 81. $50, $50 francs, or
over 10 per cent. of the amount sub
scribed. OF that sum 100000 francs
is entered under the head of ''syndi-
Gates" 1901, 131 francs for the press
and 1900, 1892 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 l
With details SO circumstantial as to
eave the impression that they are not
unfounded. Take the story q
old of the vote on the loan bill in the :
'hamber. The committee consisted of
leven members, of whom five were in
ayor of the bill and five hostile. The
ELEVENTH, 1t is said. pretended to be I'M
ecided but went to the company and
Hered his vote for 200, 900 francs. The a
roposal was declined, and the deputy !,
hen Joined a bank for bear operation u
. Panama shares, with the intention of II
living his casting vote against the bill. a
he company, however, reflected on u
earning of the bear operation in Pan %
ma shares, and sent to the chamber its o. 9,
rnissary, who called the deputy out of =
ne committee-room and offered him ~
70, 600 francs, which was declined. ~ ~
The deputy was sent for second u
me and obtained his terms, and the ~
ajority for the bill was obtained. But "a
lie deputy neglected to inform his con- -
derate, who continued to sell Panama
lares, and as they made sharp re-
,und on the decision of the committee
known the banker was nearly
lined AS he has since been quite en-
inod and hoe .h.oordoa -, 11iUo trs
zen given, but that of the deputy is ~
It yet revealed. The sudden death of ~
iron de Reinach, who was the inter an
ediary employed by the company, is or,
id to have occurred from a fit brought RAJ
by the discovery that the book con- Tr,
ming copies Of his letters had been ne,
'len after he had destroyed all other bel
OF nature to incriminate ma
n, as he was to have been made one :
the defendants in the prosecution sha
}, however, employed well-known the
ancial agent, who disappeared few cor
'nths after committing large forgeries ~
the prejudice of the dynamite com wi
ny, and who now boasts from his ws
ling place that he has in his posses Ne,
the check-book from which the as
outies were paid. or !
idlli