The Sun.
London, England, 1867-11-12 00:00:00

HONDURAS GOVERNMENT RAILWAY
LOAN, £1,000,000, in Bonds to bearer of £lOO,
£5OO, and £l,OOO each, bearing 10 per cent. annual in-
terest, payable half-yearly in sterling, issued at 80 per cent.,
and to be redeemed at par in sterling within 17 years by
yearly drawings, by means of an accumulative sinking
fund of 3 per cent. per annum. The first drawing to take
place on Dec. 31, 1869.
The payments by subscribers will be as follows :-
5 per cent. on application £5 0 0
10 „ on allotment
10 „ on Jan. 1, 1868,
less interest £0 9 41 9 10 71
15 „ on July 1, 1868,
less interest 1 11 3 13 8 9
20 „ on Jan. 1, 1869,
less interest 2 10 0 17 10 0
20 „ on April 1, 1869,
less interest 1 17 6 18 2 6

80 per cent
Interest will be payable on Ist July and Ist January in
each year at the London and County Bank, and, for tLe
first instalment of £l5, will date from Ist October, 1867.
In default of payment of any of the respective instal-
ments, all previous payments will be liable to forfeiture.
The instalments may be anticipated at any time at Bank
of England rate.
The Government of Honduras having agreed to appro-
priate to the subscribers a moiety of the net profits of the
railway during 15 years after the complete repayment of
the present Loan, subscribers will receive, as bonus, with-
in ono month after allotment, with each £lOO bond, one
10,000 th deferred fully-paid up railway share to bearer,
entitling the holder thereof to receive his proportion of
such net profits.
PROSPECT US.

The President of the Republic of Honduras, being duly
authorised, has given full powers to Mons. Victor Herran,
Minister at Paris, and Senor Don Carlos Gutierrez, Hon-
duras Minister in London, to contract on account of the
Government a Loan, to he applied towards the construc-
tion of an Interoceanic Railway from Puerto Caballos, on
the Atlantic, to the Bay of Fonseca, on the Pacific.
To show the importance attached by the British Go-
veanment to the Honduras Interoceanic Railway, it may
be stated that the line has been surveyed ou the part of her
Majesty's Government by Lieutenant-Colonel Stanton,
RE., and a detachment of Royal Engineers sent out for
the purpose. Colonel Stanton reports "That the harbours
at both termini are unexceptionable, and that the read can
be constructed " without any sharper curves or heavier
gradients than are to be found on existing lines over which
locomotives work without difficulty."
The new Treaty between Honduras and Great Britain
declares that—

" In order to secure the construction and permanence of
the route or road herein contemplated, and also to secure
for the benefit of mankind the uninterrupted advantages
of such communication from sea to sea, her Britannic
Majesty recognises the rights of sovereignty and property
of Honduras in and over the line of the said road, and for
the same reason guarantees, positively and effiaciously,
the entire neutrality of the same. And when the proposed
road shall have been completed, her Britannic Majesty
equally engages, in conjunction with the Republic of Hon-
duras, to protect the same from interruption, seizure, or
unjust confiscation, from whatsoever quarter the attempt
may proceed."
Treaties signed by the Honduras Government with
France and the United States contain the same provisions,
and thee French Government, considering the public utility
of the Honduras Railway, has promised the official quota-
tion of the Honduras Loa❑ on the Paris Bourse.

The following official report by Bear-Admiral Davis,
made to the Secretary of the Navy of the United States
Government, in compliance with a resolution of the
American Congress on the 19th of March, 1866, demon-
strates likewise the importance which the United States
Government attaches to the construction of the Honduras
line

" The reader who follows the course of the surveyors,
naturalists, and geologists from the capacious, safe, and ex-
cellent harbour of Puerto Caballos, through regions re-
markable for their salubrity, fertility, great variety of cli-
mate and productions, and valuable mineral resources, to
the waters cf the splendid harbour of La Union (Bay of
Fonseca), cannot but regret that capitalists have not found
it to their interest to carry out one of the most promising
and ono of the least embarrassing enterprises of the
day."
The line of railway has been carefully selected and sur
veyed by Mr. Trantwine (late engineer-in-chief of the
Panama Railway) and an efficient staff, and a contract has
been entered into for the construction of the whole line
with stations and rolling stock, for a stipulated sum of
about XB,OOO a mile, including every outlay, and the works
are to be proceeded with in sections.
From time to time, as the instalments of the present
Loan are received, the proportion to be applied to the
construction of the first section of the railway will be
handed to and held by trustees in trust, to pay the con-
tractor the instalments on his contract, as certified by the
Government Engineer. The balance of the Loan will be
applied in clearing the forests, and in payment of engineer-
ing and other incidental expenses.
The interest and sinking fund of the Loan are specially
guaranteed by a first charge upon the intended railway
itself and its revenue, and also by a first mortgage upon
the whole of the domains and mahogany forests of the State
of Honduras, which, according to official report, are of im-
mense value.
It is arranged that the whole of the produce of the above
mortgaged State domains and forests shall be consigned
direct to London by the Honduras Government to Messrs.
Bischoffsheim and Goldschmidt, wbo will pay over the peo-
coeds of the sales towards the annual interest and sinking
fund, and the construction of the remaining sections of the
railway.
It has been further arranged in the contract that, as soon
as any portion of the railway is completed, the contractor
shall bring down to the terminus, free of charge, by the
return empty waggons, any produce of the Government
forests and domains that may be ready for shipment to Eng-
land.

Beginning at the harbour of Puerto Caballos, on the
Atlantic, the railway will proceed over the table land of
Honduras—in a line of 230 miles to the Bay of Fonseca, on
the Pacific.

The ports at either end aro spacious, safe, and easily
accessible for the largest ships.
Tho steaming distances from Liverpool to San Fran-
cisco, touching at Jamaica, are—by way of Panama, 7,980
miles; Nicaragua, 7,720 miles; Tehuantepec, 7,740 miles;
llonduras, 7,320 miles.
The distance between New York and San Francisco, by
Panama, is 5,224 miles ; by Nicaragua, 4,700 miles; by
Tehuantepec, 4,200 miles; by Honduras, 4,121 miles— a
saving, by way of Honduras, as compared with Panama,
the only line on which a railway is already constructed, of
1,103 milos.
The difference in actual distance, coupled with the su-
periority of ports, the facilities of embarkation and disem-
barkation, and the connection with the American coast
lines, will effect a saving in time, as compared with the
Panama route, of not less than five days between the
Atlantic and Pacific ports of the United States.
The line will afford the easiest, safest, and speediest
route between Great Britain and British Columbia ' • it will
also offer the increased facilities of first-class ports for the
establishment of speedy intercourse with Australia and
New Zealand, and will bring Jamaica, Belize, and other
British possessions in the West Indies into the direct line
of communication. _

Last year the dividend paid by the Panama Company
was at the rate of 24 per cont. per annum on a capital of
£1,600,000, in addition to a bonus of 40 per cent. from
accumulated profits. The Honduras line will in all pro-
bability return as much profit as the Panama lino, if not
considerably more.
Sufficient of the proceeds of the present issue will be
applied to the construction of the first section, from Puerto
Caballos to Santiago. This section will enable the ex-
portation of the mahogany, &c., to take place ; the means
of transport now existing being too expensive to be re-
munerative. Careful estimates have satisfied the Honduras
Government that the surplus revenue of the State domains
and forests will b., amply sufficient to complete the whole
line, without any further issue of stock, but in case it should
be found advantageous, on account of increasing traffic, to
accelerate the opening of the railway from sea to sea by
raising more money, further stock will be issued for the
construction of the remaining sections of the railway.
The several contracts and other documents can bo in-
int,pceted at the Baxter, Itosp, Norton, and
co., soecitorz, Ni. 6, Victoria-street,
A pplical ions for the Loan will he reeeiveil 1)0111
Muu-
day, lith November, to Friday, the 15th November, by
the London and County Bank, 21, Lombard-street, and
oranches, where prospectuses and forms of application can
be obtained; and in Paris by Messrs. Bischoffsheim, Gold-
schmidt, and Co., 26, Rue de la Chaussee d'Antin. Pay-
meats on application for the Loan can also be made at the
Bank of France and branches.

HONDURAS GOVERNMENT RAILWAY LOAN FOR
£1,000,000.
FORM OF APPLICATION.
(To be retained by the Bankers).
To the Directors of the London and County Bank.
Gentlemen,—Having paid to the London and County
Bank the sum of , I hereby request that you
will allot to me £ net in Bonds of the above Loan,
and I hereby agree to accept the same, or any smaller
amount that may be allotted to me, and to pay th 4 further
sum of £lO per cent. on the same when allotted.—l am,
gentlemen, your obedient servant,
Signature
Address iu full
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