The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-10-01
HENRY MEIGGS'S FINANCES,
EMBARRASSMENT THAT THREATENED
PERCJTlN PROGRESS.
The Note Shnvcrs Happily Circumvented-Tbs
Peruvian Government stepping In 10 Save
the Great Buiider-Mr. Meixgs's Health. /,

The Note Shnvcrs Happily Circumveuted-Tbe
Peruvian Government stepping In 10 save
the Great Builder-Mr Meixgs's Health. .
Recent dispatches from Peru say that
Henry Meiggs the protector and constructor Of
railroads and other public works in that rcpub-
lie. has become financially embarrassed and
unable to redeem the bills issued by the Public
Works Company Of which he is the President.
and that. in consequence of these difficulties,
the work on some Of the railroads in that coun-
try likelyto he temporarily. If not permanent-
ly. suspended Some time ago Mr. MeigRs or.
ganizcd an association styled the Public Works
Company. he becoming its President. This
company was intended to operate with him in q
manner similar TO that In which the Credit
Motilier Association worked with the Union
Iueinc haiirond Company. Contracts were
made with II to build parts Of the railroads for
whose construction he had contracted with the
PERUVIAN Government. Soon after he had OBJ
tanned the contract TO extend the Lima, Callao,
gnd Or9ya Railroad 10 Ccrro de Pasco. Mr..
lublic Works Company, with which to pay for
w., w9 30 as done ne on ths road hccardngy on
Consul lalo. an institution in Lima similar totho
Chamber OF Commerce in This city, a million
md half of soles I'm bonds Of the Peruvian
Government. which had bccn paid him for pre-
vious work. and declared his Intention 10 issue
on that guarantcc and that OF the capitnl Of tha
Public Works Company. ono million soles, in
Lima bnnks. Theh!lls were issued from Tina
t. time as the work progressed. and on July lS
nne hundred thousand soles oil them were in
From the date Of the frs, issue. the banks and
most Of the wholesalers in Lima opposed Mr..
Meiggs and endcavored 10y every means to have
but up TO the 18th OF july they were regarded rs
good money md We're regularly redeemed in
on their face. On the 18TH of july. the retailers
IN Lima and Cailao formed the association
known H. the Junta Mrrcantl. and resolved
that after the LIST Of October they would not re-
ceVe any bank notes that did not bear on their
face the stamp OF the Government. This action
OF thc retail merchants. winch is characterized
by Mr. Meiggs IN alctter addressed to the public.
on the 18TH Of jugs crus lde against tbs
notes alarmed tho holders Of the Public Works
Company's bills and created a demand for tbeiI
exchange for not u the Lima banks that Mr.
Meiggs could MT meet II used every effort
TO obtain bank notes enough TO redeem his
securities of four times the amount OF the sums
that he wished To borrow. bu' the banks refused
To- lend him money. At length he was forced to
suspend the redemption OF the bills. This he
did on the 18th of july. announcing to the pub
lie ON the same day that ne should not renew
ment had put it, obligations to him in n form
tha, would enable him to RAISE money on them
By the Tribunal del Consu lado. or in some Other
way
minds OF the holders Of the bills that their pny-
ment was not sufficiently guaranteed, Mr..
Meiggs. on the day that he suspended their re-
dempton. deposited with the Tribunal dies Com
suladO provisional bond of the Supreme Cow
crnlnent Tor I'VE hundred thousand sQlcs. 1hlt
made the security for the payment OF the nina
hundred thousand soles of his bills then in cir
culatlOn two millions ~ rlle- In bonds.
His iaii nre 10 redeem the Public Works Conn
panys bills OF course seriously Injured Mr..
Meiggs's credit. and gave rise 10 the reports OF
his financial emharrHssnents. But he set to
work nj once 10 cNtricnte himself from his diff
tculties. He published Il notice ON the 2Sth OF
July promising to bay the full value of the bills,
and asking the holders not TO sell them To spec
uaiofs who were trying to buy them at u large
discount. Then he asked the Peruvian Govern
mcnt t. give to his bills the same guarantee that
IL gives to the notes OF the banks by impressing
upon their face It's official stamp, Offering TO
withdraw the two millions of soles in bonds
from the Tribunal del Consulate and deposit
them with the Coy rrnlnent Us security Tor the
payment of the bills.
One OF the reasons on which his claim for
the Government guarantee was founded was
| that the Public Works Companys bills repre-
| sentcd an amount much less than the sum owed
| 10y the Government to their isSucrs. and that
| the security VIII Ia he offered was much larger
| than that depos tod 10y any OF the banks
The latest adyi''e. from Peru are that the
| Government has begun to stamp Mr.. Meiggss
| bills. This indicates that his proposition has
| been accepted. ana that hc las been. to say the
least temporarily relieved from his embarrass-
mcnt
Mr. Joseph c. Tracy the Peruvian Consul In
| New York. says OF the report that Mr.. Mciggs
| was dangerously III. that the niest intelligence
| indicated that he was convalescent.