The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1893-02-02
rnuT tho Great Lottery Loan V.-a-
EIGici ipUl lJcu.
Tho Primary Cause of t.,c Great Tumult
Which IL Now Co~vclsiAg Franco
Prominent Officials I; gagged
In Sharp Practices.

For two years prior to the lottery
loan, writes the P2ris correspondent of
the London Economist. the public had
begun to manifest reluctance to in
vest more money in the scheme. In
1856 an Issue Of 800. coo bonds was made.
but only 45S,SO2 were subscribed. In
1857 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 lean of GOO, ,O1D,O0o francs
with lottery prizes, that sum being suf-
ficicnt to terminate the canal Bat lot
terry leans require the authorization of
! parliament. and bill was presented to
the chamber March J. N. 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, ana March IA
offered for public subscription $4,000
bonds of 1000 francs, without lottery
prizes, but which subscribers could OK
| change for new bonds when the lottery
loan was authorized.
OF the 350.O90 bonds offered only 49,
4S3 were taken up The situation had
become desperate. ard the undertaking
could only be saved by the passing OF
/ the lottery loan bill. Tic bill was
passed suocessivcly by the chamber and
the senate. and became law or June s.
The events that are to become the sub
iect of the parliamentary inquiry oc-
cured between these dates of March l
and June s, 1855. Parliament he'd in
creased the amount Cf the loan from
GO0.oO0.0O0 francs to 720.000.000. in order
that the additional l20, eco. eco should be
invested in rertes in trust to insure pay
mcGt of the lottery prizes and the re-
dcmption Of the bonds in niuety-nine
years. the company being only liable
for the interest.
The loan was issued in 1900. Geo bonds
at 300 francs, but only S49,2:0 were sub
scribed. including those taken in ez-
change, producing 305.C00,000 francs, Of
which 54,00o,00o were for the company
and 81, GOO, coo for the trust. The costs
of the issue were enormous, and are set
down in the report drawn up by NJ.
MonchicouTt. official liquidator OF the
company in 1890, at 81 .250.7S francs, or
over 10 per cent. OF the amount sub
scribed. OF that sum 100000 francs
is entered under the head of ''syndi-
Gates" 7.30l,l3 francs for the press
and 10, 500, So 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 II. 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 unioundcd. 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 IN
decided. but went to the company and
offered his vote for oO0.C3o 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
learningof the bear operation in Pam
anna shares, and sent to the chamber its |
emissary, who called the deputy out of
the committee-room and offered him |
100, coo 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 cor
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 Reinacll, who was the inter-
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 al other
documents of nature to incrinilate
him, as he was to have been made one
Of the defendants in the prosecution.
He, however. employed a wcll-lznown
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-booli from which the
deputies were paid.
Don't forget to go and see the Two