FRANCE SHAKEN.

Star (Christchurch), Volume LXVI, Issue 20280, 14 April 1934, Page 19 (Supplement)

FRANCE SHAKEN.

History of Most Notorious Swindler. (CONTINUED FROM TAGE IV.) The French Government had passed a law whereby the bonds emitted by municipal credit institutions throughout the nation were guaranteed, with the taxpayers of France as their backing in case of need. “ Handsome Alex ’’ Stavisky went to the city of Bayonne, where he ingratiated himself with the municipal authorities. One of his righthand supporters was M. Garat, Major of that city. Thus the ill-fated “ Bayonne Municipal Pawnshop ” came into being, with ” Handsome Alex ” as its moving spirit. By an odd juxtaposition of circumstances, about this time—in 1932—the Minister of Labour, Albert Dalimier, in the Herriot Cabinet, issued a circular informing insurance companies and other investment concerns that they might invest in municipal credit institutions with safety. Bonds Issued in Small Lots. The wheels of Stavisky’s enterprise at Bayonne began to turn. lie received through the pawnshop all kinds of small articles brought in by people eager to raise money. The value of these articles was, of course, very small —a few pounds at the outside. Against these, as security, Alexandre Stavisky, whose criminal record was then nearly ten years long, proceeded to issue bonds for fabulous sums. To avert suspicion, the bonds were emitted in small lots, each lot duplicated and reduplicated. Investment concerns all over France purchased them. Finally the swindle exceeded the astronomical figure of 500,000,000 francs. Then the going became too difficult, and the whole edifice collapsed. On December 30 the authorities issued warrants for the arrest of all involved in the engineering of the Bayonne Pawnshop. But, as usual, Stavisky slipped through the net. As the story unfolded, M. Dalimier, Minister of Labour in the llerriot Cabinet, and later Minister of Colonies in the Chautemps Cabinet, was identified as the official who had urged insurance companies to invest in such enterprises. Such a public clamour arose following this discovery that M. Dalimier resigned. Then the public realised that the taxpayers are held liable for losses incurred by investors in municipal credit institutions. Thirty-one million dollars’ more taxes! Immediately the taxridden French people let out a roar of rage. Suddenly, in the midst of the tumult, came word that “ Handsome Alex” had been cornered at Chamounix. It was said that he intended to make his way afoot over the Alps into Italy, but the heavy snow in the passes prevented him. What happened next remains in dispute. The police and medScal authorities declare that he killed himself rather than surrender. But the thoroughly aroused French public did not believe this. Out of the two dozen newspapers published in Paris, half boldly asserted that Stavisky was shot by the police because “he knew too much.” Important Witness Slain. A few weeks after the Stavisky scandal broke, another sensation was caused, by the brutal murder of Judge Albert Prince. His body was found on a railway track near Dijon just a day before he was to have come to Paris to give the authorities important information in his possession regarding the activities of Stavisky. The murder was laid to a terrorist gang that has been attempting to block investigation in the Bayonne Pawnshop scandal. The identity of some of Stavisky’s political friends was revealed when the French Secret Service found a number of cheque stubs giving the names of recipients of “ bearer ” cheques from the swindler. The finding of the cheque stubs was followed by the arrest of Mme. Arlette Stavisky, the beautiful young widow of the pawnbroker, and the authorities sought to obtain from her more information concerning the persons who benefited through Stavisky’s operations. The public in France asked disconcerting questions of the Government. Why was “ Handsome Alex ” permitted to postpone his trial for a previous swindle for seven long years? Why,, when his record was a matter of official knowledge, was he permitted to go ahead with his infamous Bayonne Pawnshop Scheme? Flow did it happen that he was held in such high esteem by police authorities ? What was the source of his power in politics? The wrath of the French rentiers and of taxpayers in general was centred upon the Government, and a ringing demand was made for drastic reforms of the -judiciary, the police and he procedure of Cabinet officials. The public clamour aroused by “ L’Affaire Stavisky ” was a major factor in the downfall of the Chautemps and Daladier Cabinets and in the rioting and bloodshed in the streets of Paris, creating a crisis that brought Gaston Doumergue, former President back to Paris as Premier of a National Coalition Government.