The New York herald., 1878-11-10
HOW THE SCHEME WAS DEVELOPED
The Struggle Between the Contractors and the
English BOndhOhlcrx.
PROBABLE SUCCESS OF THE LATTER.
History of the Work Done and the Causes
Of Its Abandonment
THE LOSSES AND THE LOSERS

The wreck of the steamer Metropolis the fatal
shore of Kitty and its attendant loss of life and
property painfully called the attention Of the people
Of the United States to the fact that railway was
being built somewhere in the heart of South America
by American contractors and American labor
The history OF this railway has been an eventful
one. From its inception until its present partially
achieved condition it has suffered many vicissi-
tudes delays tigations that its story reads
like fiction than fact.
In the year 1867 the Bolivian government sent e-
cation to Mexico to arrange diplomatic affair with
that country. The head of this legation Don Quintin
Quersdo, instructed to proceed to New York,
after he had completed his duties in Mexico, for the
purpose of selecting from the engineers of that city
who competent and willing to undertake the
task of opening an Amazon route from New York to
the isolated country which had sent him.
BOLIVIAN CONCESSIONS.
The General in pursuance of his instructions
lected George Earl Church. and feeling confident that
he would be competent undertake the labor offered
him the position. After due consideration and study
of the situation Colonel Church consented to accept
the offer and in 1868 he proceeded to La Paz the capi
tai of Bolivia to receive definite concessions for the
formation of tho National Bolivian Navigation Com
pany These granted him by the government of
that country the 27th of August. 1868. In these
It would endeavor to obtain from Brazil the
right Of way around the Falls Of the
Mndeira and for the purpose Of obtaining this priv
ege il sent General Querado to the Court OF Rio ia
metro. After spending some mouths there he
compelled to announce his want Of success. and
Colonel Church then requested, in letter from
the Minister of Foreign Affairs OF Bolivia. dated La
Paz 23d of May. 1882 take the matter hand and
also to enlist if possible the good Offices Of the United
States in behalf of the enterprise Before accepting
this additional duty he proceeded again to Bolivis
and after considerable delay and trouble succeeded
in securing a modification of the existing
concession and also . loan contract with
the Bolivian government. without which guar
antee he would have been unable to enlist the
solid symraHhy of the fnanciers OF Europe. At his
solicitation new Minister was accredited to the
Court Of Rio, and the diplomat Don Ricardo Busta-
mente named as Charge d'Afaires.
Don Ricardo proceeded the mountains and
Colonel Church made his way to Rio via the Straits
Of Magellan The latter arrived nearly year after
his departure but. to his SURPRISE ne did not ind
the Bolivian Charge that Official having 1t after
ward transpired. changed his mind before pro-
ceeding far on his journey. The disappoint-
ment great and the loss of time an
noying The cordial reception given him, how
ever by His Excellency Baron de Cotgipe the Secre-
tary Of state for Foreign Affairs of Brazil. and His tx
reency Diego velho Calvalcante de albuquerque the
Minister of Commerce and of Public Works. compen-
stated the delay. Both Of these officials entered
fully into the scheme and being presented to His
Majesty Dom Pedro H. by His Excellency Henry T.
Blow the American Minister that time accredited to
the Court of Rio he found that monarch fny alive
the Importance Of the work and ready to help him in
every way increase and develop the commercial aud
friendly political relations of Bolivia and Brazil.
DIPLOMATIC CAUTION.
After many consultations with prominent officials
aud with the ministers Of the Emperor il deter
mined that it would BE- unwise for the government of
Brazil to deal directly. government with the gov
ernment Of Bolivia, as questions might arise which
would disturb the peace and harmony of the two ma
tions. There was, however objection whatever to
the government Of Brazil granting concession d
recty Colonel Church for the building railroad
around the rapids.
Although this plan would necessitate the forma-
tion of new company it was finally decided upon,
and the concession published by imperial decree
on the Goth of April. 1870.
The day after the publication of the official decree
Colonel Church sailed for the United States, and
his arrival in New York proceeded directly WASH
ingon. where he succeeded in procuring the passage
of bill by which Congress granted the unusual prvi
lege Of national charter the Bolivian Navigation
Company.
A NATIONAL CHARTER.
This bill was signed by the Executive and beeame
law on the 25th OF June. 1870 Five days later the
company organized with George Earl Church
w. II. Reynolds Jerome b. chsnee. =. +. NJ Barlow.
James 8. Msckte. Charles A. Lambard George r. viii
son, and Samuel g. Arnold and Quipn Querado, on
the part Of Bolivia in accordance with an article
of the concessions, as incorporators. George Earl
Church elected president and s. L. VI. Barlow
vice president. The capital OF the com
On the opening Of the subscription books
the conccssionare subscribed s2.UpOO00 to be paid
out OF the proceeds of the loan which the Bolivian
government had authorized. The President of the
company then sailed for Europe to negotiate the loan
In this cndeayor he visited the principal cities OF
Europe; but the bankers Of England, France. Italy
and Holland would have nothing ~ do with Bolivian
affairs. That country had attempted the placing Of
other loans and had not fulfilled her contracts Her
general credit had been much impaired by the failure
~ the avcnno Aramago scheme and the chronic
feyershncss of South American republics generally
of this particular one. Mr. Brassey. the wealthy
contractor, looked with favor on the project.
and il was thought at one time that be would his
influence 70 secure the placing of the loan but his
nntmely death put an end 10 that hope. For a long
period Il seemed though Bolivia had no friends
strong enough 10 advance money her
national word Of honor but after long study and con
sidcration the French arm OF Erlanger CO. and Mr.
Julius Beer concluded that il worth their while
md these gentlemen finally consented 10 issue the
ponds for popular subscription
THE rRosPRsTus.
on the Goth OF January, 1872, the loan was thrown
upon the market with the following prospectus.-
"EEpuBrIc BOLIVIA
''six per cent government loan Of 81 100000 nominal
-apital in bonds OF EI00 and f500.
..Authorized by act of Congress and approved fby
the President Of the Republic August a. ls1 redeem
able at par by Of an accumustiye sinking fund
VI two per cent per anntnl.
Principal and interest payable in London free
from Bolivian taxation.
The bonds were sold at " per cent and were taken
u readily The amount realized 81, ,f5J, 256, out
of which the Mcssrr. Erlanger Co received the
enormous sum Of f1l0,JOO for their servicse f2.470
paid for stamps and printing, and f1s7,0O0 were
invested in 500 securities Of the United states for the
bcneht of the sinking fund OF the remainder
ElOOOo paid to the Bolivian government. In ac
rordance with the terms Of the loan E135,05S in
vested In $40 bonds fGa0.DO turned over 10 the
trustees OF Investment for contract of works and
2l7 issued to the Bolivian Navigation Com
psny.