Panama Scandal

During the investigation, in 1892, into the affairs of the Panama Canal Company, which had become bankrupt, it was discovered that large sums of money belonging to the shareholders were not properly accounted for. It appeared that in order to get the Panama Lottery Bill pa ed in 1888, the Baron de Reinach had distributed three millions of francs in bribes to deputies and senators, and that over one hundred had accepted bribes to vote for the bill. The directors of the company, including M. de Le eps and his son, were tried and found guilty of malversation of the company’s funds, and several deputies and senators, including eight ex-ministers, were prosecuted for receiving bribes. The Parisians called this affair “La Le ive du Panama,” or the Panama dirty linen.