THE UNION GENERALE.

Poverty Bay Standard, Volume X, Issue 1071, 9 May 1882, Page 4

THE UNION GENERALE.

In reference to the disastrous failure •of this French bank, it is stated that M. Bontoux, the director of the Union Generale —who, together with M. Fedher, the manager of the society, has since been arrested—attempted to s op the run upon it by securing tl e help of the great bankers of Vienna, which has been for some time a chief ■centre of his financial operation. On his recent return from the Australian capital he announced that 17,000,000 francs would shortly be forthcoming; the promise was not fulfilled, and hei ce tne crash. M. Bontoux had founded more than one great bank in Vienna, and had squired there unprecedented commercial and political influence. He had undertaken the construction of a railway from Pesth to Semlin, of several Bohemian and Galician railways, and of certain Servian lines which were to establish a connection between the railways of Hungary and Turkey. The total of Austrian capital involved in the scheme of AL Bontoux was estimated at not less than twentyfour millions sterling; it is nowdoubttul whether these projects can be exe :uted, and the leading members of the Catholic party in A ustria, as well as in France have suffered severely. The Servian Finance Minister has gone to Paris, to endeavour to negotiate for the continuance of the Servian railway works. The Comte de Chambord is said to have lost several millions of francs as the result of his confidence in M. Bountoux. Many of the best known Legitimists and denizens of the Faubourg St. Germain have susnfrned losses scarcely less severe. Thousands of the French bourgeoisie and peasantry who, acting on the advice of their priests, had invested in the Union Generale, are ruined or narrowly escaped being ruined. There is aparently more than enough to justify the legal proceedings commenced against the Union Generale; its strong boxes on examination have proved to be empty, its reserve capital is only represented by 50,000 shares, whose value has sunk to zero. At the very moment when M. Bontoux stated that his profits amounted to fifty-seven millions of francs there existed, it is alleged, a deficit of ninety-six millions. In November last 10,000 new shares were issued at at a premium of 350 francs. The 125 Francs paid for original shares were fetching 2,500 francs, and even a month ago five-hundred francs shares were worth more than three thousand francs.