The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-10-06
The Report Of the Parliamentary Committee
on Foreign Loans.
AN INSTRUCTIVE BLUE BOOK.
HOW British Bondholders Lost
Ten Million Pounds.
THE HONDURAS LOANS
From the London Times, Sept. % ]


the narrower part Of the South American Continent
may now DO bought at Hansard's, Great Queen street.
Lincoln Inn Fields, for S. 3d. although its production
has cost British bondhoders not much less than
tlOOooOOo More millions yet already practically lost
in leans not made the subject of inquiry might have
been saved If this book could have appeared in 1865
stead Of in 1875
The revelations Of the committee not only teach
general principles, but refer very poIntedly to partcu-
lar persons They express a strong opinion about Don
Carlos Gutierrez Minister Of Honduras in this country
IN their report which printed the 31st OF july and
in the volumes before they devote space in their
elaborate index and analysts of index to tho following
headings :-'obsaccs raised by Don Carlos Gutierrez
10 attendance before the committee and as to the
supply Of documentary evidence;' "Antccedcnts and
personal character OF Don Carlos Gutierrez" and
lastly, Conclusions Of the Committee in strong dis
approval OF the conduct OF the Honduras Minister
Under the FIRST head the committee say
No document information OF any kind in relation TO the
account was rnshed6y Don Carlos Gutierrez until on The
fourteenth day Of the inquiry proof given that he
then caused to be forwarded to committee.
GUTIERREZ A cLERR2
Don Carlos reply is contained in the following paper
handed in by Nr. Love- and numbered II in the appen
dix, page 1913, oisthe Blue Book
SO BEDFORD STREET, CovEsr GAnnEs,}
Senior Carlos Gutierrez wishes his solicitor Mr. Fran
els Hughes explain that the statement made to the
mitee Of his having been clerk have arisen from his
having been offered partnership in commercial house
Gossip with regard to the e. 600 worth Of jewels said to
HUGHES 4 SON.
Captain PIN, in his evidence, said
All communications with DON Carlos Gutierrez and the
gentlemen who have been connected with these have
been IT IS trne o entirely tran, matters b.. have
men ever met.
The other references in the index the Honduras
pamphlet ITSELF and conclude with the quotation from
it of a difficult metaphor, according to which the
Minister of Honduras inter oceanic as her rail
way intended to be, and revived as often:--
he has frequently been the victim sacrificed for
for the complaints Of the bondhoders and the difficulties in
When the preliminary inquiry into the Stock Ex-
change practice left for the history Of particular
loans, the committee began with the
HONDURAS RAILWAY
and half the evidence taken related to that notorious
speculation That the committee far from probing
to their depth the transactions which, though they
transferred very little money indeed the treasury of
Honduras, enjoy the name OF the Honduras loans
proved when at nearly the last sitting witness came
and gave entirely information part of the his
tory later than that revealed by the evidence of Mr.
Davids II might also be inferred from the fact that
Senior Don Carlos Gutierrez, Mr. Henry l.. Bischor-
shem and Mr.. Charles Joachim Lefevre remain unex-
amined The one maintained the mmunties of his
diplomatic character, which Colonel Mcndcs, for in
stance and Mr.. Herran waived tho other was
cused at his request and the third (who is out
OF the jurisdcton) made conditions which the commit
tee would not accept This absence Is partly the loss
Of the public and partly perhaps that of tho gentlemen
who did not appear for things which they might posi-
bly, have explained WILL to certain extent be taken
against them. We have ourselves, indeed published
contradictions OF statements made before the commit
tee in the form OF letters from Mr.. Gutierrez Mr..
Frank A. Mori and Mr. Lefevre, and do not wish to
detract from the value OF the contradictions made in
that way The gentlemen, however who adopt this
mode Of defence must remember that II is possible the
public will attach greater weight to dispositions
from witnesses who have undergone the test of
ination.
MR. LEFEvRE
Tho central figure in the Honduras transactions Is
undoubtedly Mr. Lefevre The public have learned Mr.
Leievre's history backward. The committee refer
notice OF Mr. Lcievre the books of the Paris police
condemned by default In 1856, TO two years mpris-
onment for breach OF trust Mr.. Lefevre appears
in 1884, partner Of Haye, Swiss, In small Office in
Lombard street, with Railway Financial Agency en-
graved on his doorpae, with one clerk and carrying
in his capacity Of railway financial agent specul-
ton in ice under the title OF the Omitted lcehouses
(LTLdcieres RtlniesJ.
Four years later Mr. Lefevra begins buying and sell
ing scrip by hundreds Of thousands contracting with
great houses like Bischonshem and Goldgchmidt and
with NJ mister OF State, running racehorses, purchas
ing Ger0me's pictures and bringing them down TO his
premises in Lombard street, Ito be exhibited in
his Office for tho edilcaon of the public All this
wealth acquired by adherence to the simplest trade
maxm-he bought in the cheapest market and
bought bonds Of the representatives Of the
Honduras government and he sold them TO the
British public. The bonds did not rise in price TO Mr.
Lelevre time went on like the Skyline books, but
the contrary, grew cheaper to him by degrees TIL
the E1O0 bonds Of the 1867 loan reached the limit of
E6S 12s in the latter period OF 1859. On the other
hand, in the stock market after his contracts
with the trustees OF Honduras concluded, they
rose rapidly till they touched the price OF "a or 95 in
1868, aud they average of about IS in 1869
In 1870 and 1871 the average price was ESQ The pre-
ciptous fall did not till the middle Of 1872 but
then 1t was so striking that country clergyman, who
had invested in the bonds, thought there had been
earthquake (which had swallowed the whole Of the
precious place up"
The means by which this extraordinary rise was 80
cured were detailed In part by Mr. Richard Evans, who
owned to having been paid himself by Mr. Lefeyre at
which would make his profits out OF the 1870 loan
amount to at least 000O Tor he said that he was al
lowed one per cent on sum between fl,0O0,00O and
e. 600 600 Mr. Lefevre's gains were at far higher
rate While stock in the hands of the trustees he
received interest it, and he was at the same time
PAID COMMISSION FOR PAYING INTEREST TO HIMSELF.
First the stock was thought back, then II was doled
the market at discretion During the latter part
OF 1858 in 1869 Mr. Lefevre was selling to dealers
the 1867 loan at wholesale price, dealer would
take ESQ 600 and stipuate that Mr. Leevre should not
sell any more that month The dealer would tnen
'make his market and retail the bonds 70 the public
Mr. Lelevre himself paid TO the trustees for bonds, OF
which the market value at the time he took them was
f70 004 14s f622 CAB As or Sol los less han the
market value There was, however, subsequent con
yenon in October 1869 IL appears TO have been made
at time when feared that all these transactions
(Which at that time were enriching everybody, Dor
rowers lenders and nermediariesl would come TO an
end by the non payment Of interest Letevre, by this
convention agreed pay fS per bond above the con-
tract price out OF his PROFITS to certain fund TO pro-
vide for interest," but the thus paid were to be
returned to him. and If they were, In fact returned
f36 $40 must be added to his profits Unfortunately
the books put in only 70 up TO certain date and do
not show everything Mr. Lefevre may thus have made
In all eI20 600 but the evidence about his launching
into expense upon the turf and exhibiting costly pic
lures at his Office Lombard street referred TO the 1870
loan He sold TO jobbers, through Mr. Evans at some
thing below the market price-at Els, for instance
when he buying at $40 or f6s, aud the profits Of
these middcmen we're SO much subtracted from bis
own II was, perhaps, not without expenditure his
own part that the market price made high. To
defeat the bearsn might require purchases aud per-
haps the way in which the 1857 loan chiefly pTohta
Bile was in preparing for the great issue in 1870.
BY attractive drawings at par OF stock which was
realY not paid lor-lL remained for the most part in