In the first chapter of this book is reproduced in extenso the statement of Monsieur Victor Fabre, Procureur GÉnÉral, a legal official of judge’s rank, whose position somewhat resembles that of the Public Prosecutor in England. Monsieur Fabre, the gravity of whose statement caused the downfall of the Monis-Caillaux Cabinet, declared that pressure had been brought to bear on him to postpone or adjourn the trial of a financier named Rochette, who, since the postponement of his trial has escaped abroad, and is abroad still. The bearing of this statement on the Caillaux drama will be seen in a moment by the perusal of the examination on March 20, 1914, of Monsieur Monis and of Monsieur Caillaux by the parliamentary commission appointed after the storm caused by Monsieur Barthou’s reading of Monsieur Fabre’s statement to inquire again into the facts of the “Monsieur Caillaux,” Monsieur Monis said, “pointed out that apart from his own wish to oblige MaÎtre Bernard it might be dangerous, for political reasons, to refuse his request for the postponement of the Rochette trial.” “MaÎtre Bernard,” he said, “is a very vehement man, and a lawyer of great gifts. If the trial takes place now he is certain to point out the number of issues of bonds and shares which have been made in recent years on the Bourse, and authorized by the Government, which have dwindled in value, which have caused heavy loss to investors, which issues of stock have never, for all that, resulted in the taking of legal proceedings. An outcry is sure to be raised round a speech of this kind in the Law Courts, and the outcry is sure to have political results. One of the first of these will surely be a number of questions in the Chamber of Deputies. The Government has troubles enough of its own just now without adding to them in this way. It will be much wiser to grant MaÎtre Bernard’s request and postpone the trial.” It was as a result of this conversation between Monsieur Monis, the Prime Minister, and his colleague the Minister of Finance, Monsieur Caillaux, that the trial of Rochette was postponed. Even without going into any details now, though I am afraid that it will be necessary to go into a good many details presently, the verbatim report of this interview throws a curious light on the close connexion in France between the Government of the country and the country’s legal procedure. Monsieur Caillaux’s reference to Rochette’s power, or rather the power of Rochette’s lawyer, of causing the Government serious inconvenience by an exposure of the number of losses to which French investors have been subjected recently, points very clearly to a none too heavily veiled attempt on the part of Rochette to blackmail the Minister of Finance, and not only points to such an attempt, but looks very much as though it had succeeded, for the blackmailer’s object in this case was not money but time, and he was given time to escape doing Rochette was the son of country farmers, or field labourers—people at all events in poor circumstances. His early years are wrapped in mystery, for although it is currently believed that he was an errand boy and afterwards a waiter in a small cafÉ in a little town near Fontainebleau, Rochette himself has always denied this. What is certain about him is that in 1903 or 1904, nine or ten years ago, Rochette, who had just finished his military service and who was therefore twenty-three or twenty-four years old at the most, came to Paris and became a bank clerk. He had a little money even then, which he himself says he inherited and which was £2000 or £2500 at the most. He used this money to launch several financial enterprises, and succeeded in obtaining an incredible amount of credit for them with incredible rapidity. This young man, whether he be a swindler or not, and even now that is an open question, is undoubtedly a financial genius with a wonderful charm of manner. He made use of these two assets to start several companies, the first of which were the Banque Franco-Espagnole, the CrÉdit Minier, the SociÉtÉ des Mines de la Nerva, the Laviana, the Val d’Aran, the Paral Mexico, the Union Franco-Belge, the Syndicat Minier, the Mines de Liat, the Buisson Hella and the Manchon Hella. The flotation of nearly all these companies of different kinds, for the exploitation of banks, mines, electric lamps and incandescent gas mantles, was an immediate success, and hundreds of thousands of pounds flowed into the coffers of this young financier. The CrÉdit Minier in Paris, which was his headquarters, employed an enormous staff of clerks, had gorgeous offices, and very shortly after its foundation bore the appearance of a prosperous bank doing an enormous business. As a matter of fact the CrÉdit Minier and Rochette really did an enormous business, for not only from Paris, but from the provinces, where he had Very soon after his establishment in Paris Rochette was said to be worth somewhere between three and four million pounds sterling. Of course most of this money was employed in his financial enterprises, but these were successful beyond the dreams of avarice, and the prices of shares in the Rochette flotations rose and rose continuously. To mention one only among the number, shares of the Hella Gas Mantle Company which had been issued at £4 a share ran up in the course of a very few months to nearly £21 (518 frcs. was the exact figure) a share. Some idea may be formed of the confidence inspired by Rochette from the fact that when, in 1908, five years after his first appearance on the Paris market, the financier was arrested, ten thousand shareholders of his companies signed a petition for his immediate release, and sent it to the Chamber of Deputies. At the time of his arrest there were many more people than these ten thousand shareholders who pinned their faith to Rochette and his enterprises, and who maintain even now that his downfall was due to a conspiracy against him by financiers who were interested in the fall of his shares. To a certain extent this contention was true, as we shall see later on by some of the evidence given on oath before the Commission of Inquiry. A number of charges were formally made against Rochette by a number of people who had lost money and considered him responsible for the loss. These charges became so many that the Public Prosecutor, after consulting the Minister of Justice sent for Monsieur Rochette one day, and asked him, in view of the fact that a number of the actions brought against him had been amicably arranged between the parties while others of a graver nature charging him with fraud had resulted in acquittal, whether he would consent to a friendly though judicial examination of his books. This examination took place, took place it may be remarked at the expense of Rochette himself, who was perfectly willing to pay for it, and the accountants’ verdict was by no means altogether unfavourable to the young financier. Rochette, having triumphed, continued his issues of companies, and general opinion began to rank him with the Rothschilds and the other overlords of high finance. Agence Nouvelle—Photo, Paris ROCHETTE IN COURT (Rochette is the central figure with the black beard) These small financial newspapers are legion, but although Rochette undoubtedly had numbers of them at his disposal he realized that a paper more generally read and appealing more directly to the people he wanted to touch was necessary to his ambitions, and to the greater and wider success for which he was working. He made up his mind, therefore, to obtain control of the Petit Journal, a newspaper which is sold all over France in every town, in every village, and in every hamlet, and which, though it no longer enjoys the largest circulation of any newspaper in France, was one of the two newspapers most suitable for his purpose and the only one of the two which he had any chance at all of getting. In order to obtain control of the Petit Journal, Rochette set to work with tactics which were characteristic of the astuteness The managing director of the Petit Journal, the powerful member of the Senate, Monsieur Prevet, was naturally very much annoyed and somewhat alarmed by these manoeuvres, and took legal action to put a stop to them. He commenced a prosecution against a “person or persons unknown,” by which euphemism of course Rochette was indicated, for the purpose of putting a stop to the disloyal manoeuvres by which Monsieur Rochette was rapidly obtaining a large number of shares and powers of attorney from discontented shareholders. Monsieur Prevet realized that unless some such immediate action were taken it was more than possible that at the general meeting of the Petit Journal Company on April 5, 1908, the discontented shareholders either in person or by proxy would oust him, Monsieur Prevet, from his position as managing director of the Petit Journal, and would hand over the control of this newspaper with its enormous influence and immense phalanx of readers to the financier Rochette. Monsieur Prevet occupied a very high position. He was not only the managing director of the Petit Journal, he was not only a member of the Senate, but he was actually, at that time, the “rapporteur” or advisory summariser for the Senate on the big question of the purchase by the State of the Western Railway. It is a curious sidelight on the Rochette affair that this financier who had begun his career five years before with a capital of £2000 was the principal mover in the immense agitation against the acquisition by the State of the Western Railway of France. That he moved in this matter on purely personal grounds is of far less importance than the In spite of the persistent and unfailing confidence of his shareholders public opinion began to make itself felt, and as always happens in France when public opinion is roused, a great deal of mud began to be flung and accusations of corruption became very frequent and were directed against the highest in the land. The Government was hotly accused of laxity, and Monsieur Georges Clemenceau, who was Prime Minister in 1908, was accused of moral complicity with the financier Rochette. It is a curious proof of the poetical justice, which comes to its own even in financial questions, that these accusations against The connexion between the two cases, the case of Rochette and the Caillaux drama which followed the attack in the Figaro on Monsieur Caillaux’s conduct in connexion with it, is curiously close. There have On Friday (it is quite a curious coincidence that so many important dates of the Caillaux, Agadir, and Rochette affairs should have fallen on a Friday)—on Friday, March 20, 1908, at exactly twenty minutes to Now the French have a way of their own of conducting these matters. The State does not prosecute for fraud. Monsieur LÉpine’s orders were to find a plaintiff who would bring a charge against Rochette, who would show proof that Rochette had damaged his pocket, and who would be willing to pay the caution which the French courts require from such a plaintiff before legal action begins. Monsieur Yves Durand was ordered by Monsieur LÉpine to go out and find such a plaintiff. Monsieur LÉpine, in his examination by the Parliamentary Commission on July 26, Monsieur LÉpine had urged the judicial authorities to take action in the Rochette case long before action was taken, and he alluded with some bitterness to the difficulty in getting a serious charge brought against any financier suspected of fraud who was rich enough to make it worth the while of his creditors to withdraw such charges. There had been several charges made against Rochette, and they had all fallen through because the plaintiffs got their money or got money enough to induce them to withdraw. When, therefore, Monsieur LÉpine told Monsieur Yves Durand, his chef de Cabinet, that he must go out and find him a plaintiff, he added that he himself knew of nobody who was likely to assume the rÔle. The French law gives no greater claim on the assets in such a case to the man who goes to the expense of prosecuting than it affords to all the other At a quarter past two that afternoon, the afternoon of Friday, March 20, 1908, Monsieur Yves Durand returned to the Police Prefecture and told Monsieur LÉpine what he had done. Monsieur LÉpine sent Monsieur Yves Durand to the Procureur de la RÉpublique, Monsieur Monier (Monsieur Monier has been promoted since and is the high legal authority whom Madame Caillaux consulted on the morning of the day she shot Monsieur Calmette, as to the means of putting a stop to his campaign against her husband), whom he was to advise of the existence of a plaintiff ready to prosecute Rochette. Monsieur LÉpine, in his evidence before the Parliamentary Commission of Inquiry, explained that he had hoped to get the whole matter settled that same day, or at all events between the closing of one Bourse and the opening of the next, so as to avoid news of the prosecution being allowed to leak out and to be used as a basis for speculation. However, Monsieur Yves Durand, who got himself into terribly hot water over these preliminaries when the whole matter came to light, and who was openly accused of speculating himself on the fall of Rochette shares, declared that he was quite unaware of this dishonest combination, and that he had been misled by Monsieur Prevet, who had told him that he knew all about Gaudrion and about Pichereau as well. At a quarter-past two that afternoon Pichereau laid his formal charge against Rochette at the Palace of Justice, deposited £80 by way of guarantee for costs, and signed a request to be a civil party to the action. The matter was placed in the hands of the examining magistrate, Monsieur Berr, for his immediate attention, and poor Monsieur Berr sat up all Saturday night and all Sunday night, and worked through all day on Sunday at the Rochette dossier. At ten o’clock on Monday morning, March 23, 1908, Rochette was arrested. Of course the arrest of Rochette created an immense sensation, and equally of course it occasioned the downfall of the shares of the companies in which he was interested. But while these shares tumbled headlong, an immense wave of public indignation swelled against the financier’s arrest, for so far from finding empty coffers at the offices of the CrÉdit Minier, the authorities admitted that there were, in cash, £240,000 at this office, and £160,000 more at the Banque Franco-Espagnole, a sister enterprise of Rochette’s. Rochette had been arrested and sent to the SantÉ prison on Monday, March 23, 1908. On Wednesday he wrote a letter to the examining magistrate, Monsieur Berr, in which he protested with some appearance of justice against his arrest and the situation created by it for the shareholders of his companies. “It is my duty,” wrote Monsieur Rochette, “to declare that on the day of my arrest I left the industrial and financial companies under my control in an excellent situation. There were about £240,000 in cash in the safe of the CrÉdit Minier, and £160,000 in the safe of the Banque Franco-Espagnole. This makes a total of £400,000. If I were The examining magistrate, on receipt of this letter, confronted Monsieur Rochette with Monsieur Pichereau, and told the financier the exact terms of Monsieur Pichereau’s claim. Monsieur Pichereau claimed to have bought Nerva Copper Mines of the B series, which proved to be unnegotiable, and he put in nine documents to prove it. Rochette declared that the nine documents proved nothing, that before his arrest an attempt had been made to blackmail him, that these same documents In connexion with these statements, it was proved that a number of attempts had been made to blackmail Rochette, and that he had always refused any advances of the kind. It is needless to say that the arrest of this man and the closing of the banks and shutting down of mines and other enterprises in which he was interested had a disastrous effect on the market. All the money, and there was a great deal of money in Rochette’s safes, had been sequestrated by the legal authorities, and therefore of course no payments could be made. To put one case only, eighteen hundred men and women in the employ of the Syndicat Minier were clamouring for wages which could not be given them. Eventually the court decided that liquidators should be appointed who should pay out money from a reserve fund of £110,000 which the CrÉdit Minier placed in the liquidator’s hands for this purpose. In July 1908, Rochette was tried, and the case went against him, but again there were illegalities in the trial. Information was communicated to the court which was not, as the French law insists that it should be, communicated first of all to the defendant or his lawyer. In the course of the trial the liquidator, who had been officially appointed, announced that he had distributed 50 per cent. to the creditors of Rochette, and that he would be able to pay the 50 per cent. balance integrally. Rochette lodged an appeal against the verdict, and at the same time took legal action against Pichereau for making a false declaration. His appeal was heard, dismissed, and judgment rendered, by the Tenth Correctional Chamber of the Seine Tribunal on July 27, 1910—two years after his original arrest. The case was a long one, very complicated, and proceedings had been obstructed legally, whenever and wherever Rochette and his lawyers could obstruct them. The case, however, provoked considerable scandal. Charges of illegality were made It is worth noticing that the Rochette question had now become, as almost everything becomes in France, a political matter, and that the Socialists, with Monsieur JaurÈs at their head, affected to consider Rochette a victim of arbitrary treatment by vested authority. A On July 26 Monsieur LÉpine was examined by the Commission. He began by affirming that the arrest of Rochette had been perfectly justified, and while admitting that Monsieur Yves Durand had perhaps not been prudent enough in arranging the preliminaries and checking the information he received, he acquitted him of all personal action of a dishonourable nature. He defended the arrest of Rochette, and declared that its consequence had been to put a brake on the wild speculation which Rochette’s issues had created. “I consider,” said Monsieur LÉpine, “that the arrest of Rochette turned off the tap and prevented him from making new issues of shares. This preventive measure was a public benefit. Some people lost money undoubtedly, but they deserved to lose it. The speculation mania had been enormous and widely spread. It had been crazy. There were shares which were worth £4 one morning and which were run up to £22 before the same evening. If matters had been allowed to go on like this, financial catastrophe would surely have followed.” In the deposition on November 16 made before the Commission d’EnquÊte by Monsieur Georges Clemenceau, the ex-Premier, after declaring that he himself had no personal knowledge of Rochette, described with characteristic brevity the conversation which he had with Monsieur LÉpine just before Rochette’s arrest. “This has got to be finished off promptly,” I told him. “Do you believe Rochette to be an innocent man against whom calumniators are at work?” Monsieur LÉpine replied: “Rochette is a scoundrel. He is a serious danger to the small investor, and if he is allowed to go on as he has begun we shall have a catastrophe one of these days.” “I told Monsieur LÉpine to go and see the magistrates and make arrangements,” said Monsieur Clemenceau. “If I had to begin it all over again I would do again exactly what I did before, and I am quite certain that if I had allowed Rochette to get clear away with his millions out of private people’s pockets then, there would be a Commission of Inquiry at work now asking me to explain my complicity with the man.” Monsieur LÉpine was called before the Commission of Inquiry again on November 18, and once more affirmed his conviction that Rochette’s arrest had been necessary. He gave a few significant details of Rochette’s methods. Rochette had bought properties for £8000 and floated them as a company for £32,000. He had bought the Aratra Mines for £9000, and floated them with a capital of £200,000. Patents for which Rochette had paid £1200, and which, Monsieur LÉpine declared, were really not worth four shillings, were valued in the prospectus of the company, which asked for, and obtained, subscriptions, at £480,000. There were fictitious dividends declared, fraudulent balance sheets concocted, prices inflated to figures which had no real existence except by Rochette’s will. Rochette paid enormous sums for advertising. One newspaper alone cost him £14,000. His advertising adviser drew a salary of nearly £2000 a year. On one deal he spent £52,000, for On July 27, 1910, Rochette was sentenced to two years’ imprisonment and a fine of £120, by the Tenth Correctional Tribunal of the Seine Department. The verdict, with its “attendu,” or reasons, took two and a half hours to read aloud, though it was read with the extraordinary volubility of which only a French clerk of the court possesses the secret. I have this verdict before me in its printed form. It is printed in very small print by the official printing works of the Chamber of Deputies, for the copy I possess was printed for the use of the Commission of Inquiry. The verdict, which is, as I have said, very closely printed, fills forty large quarto sheets of paper. Against this verdict Monsieur Rochette appealed again, and in the meanwhile the Ultimately, after long, long days of verbiage which appear curiously useless now, Rochette himself was asked to give evidence before the Parliamentary Commission of Inquiry. He was delighted to attend, for he had nothing to lose and he had everything to gain by his attendance. He also had a great deal to say, and said it very well, for Rochette is a born orator. Naturally enough, he took the opportunity of pleading his own case from A to Z once more, and of denouncing the illegality of his arrest in March 1908. He launched accusations against the police, he launched accusations against members of Parliament, he was very rude His evidence is well worthy of consideration in detail, for it must not be forgotten that one of the men before whom he gave it was Monsieur Joseph Caillaux, and that he gave this evidence on November 25, 1910. A few months later, in March 1911, Monsieur Caillaux, who no doubt had been impressed by Rochette’s powers of oratory, advised his colleague, Monsieur Monis, of the dangers that might be incurred, politically speaking, if pressure were not brought to bear on the legal authorities for the postponement of Rochette’s trial, in accordance with the wishes of this extraordinary expert in legal obstruction. It is fair to infer, I think, that Rochette’s attitude before the Commission of Inquiry had impressed Monsieur Caillaux considerably, but Monsieur Caillaux’s political enemies ascribed his attitude to motives of another kind. Rochette’s evidence, if evidence it can be called, occupies twenty-five closely printed pages in quarto in the transcription printed for the Rochette then made a vicious attack on Monsieur Prevet and the Petit Journal, but vicious though his attack was, it was distinctly plausible. “A shareholder of the Petit Journal called on me,” he said. “He brought some very interesting figures with him. These figures showed that in 1901 the shareholders of the Petit Journal got £2 dividend and the shares were worth £44 to £48. In 1902,” he said Several attempts were made, according to Rochette, during the month of March 1908, to induce him to fall into cleverly laid traps which would make his arrest easy. “These traps were laid cleverly, but not cleverly enough,” Rochette declared, “and I was too astute to allow myself to be caught in them. That was why,” he added, “I was arrested on Pichereau’s disgracefully vamped-up charge.” Rochette was convinced, he told the members of the Parliamentary Commission of Inquiry, that the anonymous Rochette told the Commission of Inquiry that he had intended taking charge of the Petit Journal, as he had taken control in the krach of the Say sugar refinery. He was, at that time, endeavouring to get From this story it appeared that efforts were usually made by Rochette to conceal the real amounts which were paid for their services to newspapers and to those lawyers in the employ of the financier who happened to be members of Parliament or political personages. Curiously enough most of Rochette’s lawyers happened to be political personages, and one of the lawyers of the CrÉdit Minier was Monsieur RenÉ Renoult, One of the members of the Commission, Monsieur Jules Delahaye, who throughout the inquiry acted very much like a counsel for the prosecution of every political man who was mixed up in the Rochette affair, pointed out this unsavoury resemblance. “I consider Monsieur Rochette to be a great corrupter of public morals,” he said. “I am not at all content with his explanations. They do not satisfy me. There are matters of far greater gravity behind his methods than he would have us suppose, and I would ask my colleagues to concentrate their attention Rochette paid, in many ways, on the plea of publicity. He was in the habit, when he wanted to pay and to preserve secrecy for the payment, of sending a note down to the cashier of the CrÉdit Minier with his initials “H.R.” and a little cross marked on it next to the amount. These little crosses were used in the books, it is suggested, to signify that the amounts entered against certain names were not the On February 1, 1912, the judgment against Rochette was annulled on grounds of technical irregularity, by the Court of Correctional Appeal, and the conclusions of the Parliamentary Inquiry Commission were laid on the table of the Chamber of Deputies. It will be remembered that according to the statement made by the Procureur GÉnÉral, Monsieur Victor Fabre, the Prime Minister, Monsieur Monis, had brought influence to bear on him for the postponement of the Rochette trial on appeal from the judgment of July 1910. Monsieur JaurÈs, the President of the Committee of Inquiry, on March 20, 1912, told the Chamber the history of the Rochette case as he knew it, and he knows it perhaps better than any other Frenchman living except Rochette himself. He told the story In this conspiracy Monsieur Gaudrion furnished the prosecutor and Monsieur Prevet supplied the influence. Monsieur Gaudrion did not, himself, prosecute. He could not do so because he had been in trouble with the laws of his country. He found a man of straw to act as prosecutor in his stead, a man named Pichereau, and gave him shares and At half-past eleven on the morning of March 20, Monsieur Clemenceau telephoned for Monsieur LÉpine and told him to find a prosecutor. Here in a few words we have the real origin of the affaire Rochette, and the “coincidence” which Monsieur JaurÈs pointed out to the Chamber is a painfully suggestive one. Rochette, after his first sentence, was allowed to drag proceedings out for many months, from July 27 of one year to April 29 of the next, though the courts always found against him except in very minor subsidiary actions. He then secured a further postponement from April 29, 1911, till January 12, 1912. During all this time Rochette had been a free man, and he was able to continue his financial operations. His reasons for spending immense sums of money on securing these postponements of his trial were self-evident. Monsieur JaurÈs pointed out these reasons to the Chamber. Rochette said to In this speech before the Chamber, Monsieur JaurÈs referred to the contradictions in the evidence of the Procureur GÉnÉral Monsieur Fabre, the Prime Minister Monsieur Monis, and Judge Bidault de L’Isle, with reference to the last and longest postponement of the Rochette trial from April 29, 1911, to January 12, 1912. He alluded to the rumour which was gaining ground that political influence had been brought to bear on the judicial authorities for the postponement of the trial. He expressed the regret that these rumours had not been probed until after the truth was made clear and he declared that Monsieur Fabre had said either too much or too little before the Parliamentary Commission. We |