The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1893-03-09
Tnu the Great Lottery Loan N.y2s
Manipulated.
The Primary Cause of the Great Tumnt
Which Is Now Convulsin@ France
Prominent Officials L gagged
in Sharp Practices.

For two years prior to the lottery
loan, writes the Paris correspondent of
the London Economist, tie public had
begun to manifest reluctance to in
vest more money il the scheme. In
1856 an issue CT 500, 900 bonds was made,
but only 458.602 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 Lesscps then proposed to raise
final great loan of 600,000,C00 francs
with lottery prizes, that sum being suf
ficient to terminate the canal. But lot
terry loans require the authorization Of
parliament, and bill was presented to
the chamber March l. NJ. de Lcsseps
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 $1,000
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 s.
The events that are to become the sub
ject of the parliamentary inquiry oc-
Cured between those dates of March l
and June s, 1883. Parliament had in
creased the amount of the loan from
600, 900, 0G0 francs to T20, 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-
deInption of the bonds in ninety-nine |
years, the company being only liable !
for the interest.
The loan was issued in 6, 900, 200 bonds |
at 800 francs, but only S49,24o were sub
scribed, including those taken in ex-
change, producing 3o5, 5,o00,o 900 francs, OF
which 254, 1000, 900 were for the company |
and 81, 200, 900 for the trust. The costs !
of the issue were enormous, and are set |
down in the report drawn up by NJ. /
Monchicourt, official liquidator of the |
company in 1890, at 81, go, ,7S0 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, ,13l francs for the press |
and 10000. S32 francs for commission on |
the sale of the bonds. The remaining |
two millions went Tor the printing of |
the bonds and clerical work. /
The charges brought by NJ. Delahaye |
aud 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 III 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 IN
decided, but went to the company and |
offered his vote for 200,0 900 francs The |
proposal was declined, and the deputy |
then Joined bank for 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
anna shares, and sent to the chamber its !
emissary, who called the deputy out of |
the committee-room 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 coz
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 Reinach, who was The inter-
mediary employed by the company, is
said to have occurred from 4 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 i nature to incrimiuate
him, as he was to have been made one
of the defendants in the prosecution.
He, however, employed a well-llnown
financial agent, who disappeared a 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 checl-book from which the
deputies were paid.