New-York tribune., 1890-04-13


holders and constructors Of the railways, with the
execution in Mr. Thorndike's case, on the cond.
ton that they assume full responsibility for all
counter-clams. There are fifteen entries in ths
bill of particulars under this clause, including ali
the important claims which have been In litca
tion and DISPUTE since the construction of fLe
railways Private settlements have been effected
in most instances, bondhoders and claimants hay
ing pooled their issues In an arrangement fol
liquidating the finances OF an insoivent State and
enabling all creditors to participate In the bene
fits of a revival OF Peruvian prosperity. The fol-
lowing list includes the railways which have been
ceded to the bondholders the valuations being iu
Peruvian bonds and copied from the testimony ot
the late William II. Cilley before the South Amen.
can Commission:
RAILWAYS CEDED TO BONDHOLDERS.
THE SOUTHERN PERUVIAN SYSTEM.
Mollendo to Arequipa-lO7 miles in operation.
Contract price, 12,O00,00O soes.
Areaupa to Puno-220 miles in operation
Contract price, 30,000,000 socs Inc extension
OF y is line from Lake Titicaca TO Ic Paz and tho
Bolivian mines of Caracaro and liuanapaca l.
proposed.
Juaca to Santa Rosa-66 miles in Operation
Contract price for the entire line as projected u
Cuzco, 272 miles from Juliaca, 25,000,0 900 solea
The bondholders are inquired by the Grace con.
tract to extend the line TO Maransani e3 lkSiIo- kiIo-
meters, within four years The Southern system
noY has 405 miles in operation. and Is to be eS
tended 81 miles.
Callao to Chcla-s6 1-2 miles in operation.
Contract price. 26,600.000 soles, as originally
projected 10 Oroya, 36 miles from CallaO. Under
| the Grace contract the line must be completed TO
Oroya within three years, distance OF 40 miles
further extension to the Cerro de Pasco mining
district is possible.
COAST RAILWAYS.
| Pisco TO leafs miles finished. Received by
| the bondholders subject 10 contract for lease and
| sale Of rolling stock to Christian Schrcitmuller.
of mi
. Lima TO Ancon-22 miles in operation Line
| originally built from Ancon 10 Chancsy. but this
section was destroyed by Chlllans and nerer re-
stored Contract price for 43 miles. 100000
solcs.
Chimbote to Suchiman-eO miles finished and
in operation Contract price for projected line
Of l7e miles. 900 soles. The road runs
through n rich mineral district where there are
silver and coal deposits.
| Pacasmayo 10 Yonan and Guadalupe-66 miles
in operation. Length as projected. 93 miles. IL
runs through rich farming country.
Salayerry TO Traxilo and Ascope-53 miles in
operation Original dn contract price for ,, s. mes
fine sugar country.
Payta to Piura-4l miles in operation. Est+
mated cost Of line 1000. 900 solcs Received by
the bondhoders subject TO special conditions.
The bondhoders under the contract acquire
possession 0T s6i miles Of railway in actual opera
ton. and are required to extend the Southern
system ffty.one miles TO Sicuani within four
wears and the Central system forty-nine miles,
from Chicla to Oroya. within three years. and in
addition to build within six years 90 miles ~
new road either on the coast lines in connection
with the two main systems. These extensions
are compulsory under pena ~ OF lines and for
fciture of certain lines; b1t the bondholdeIs
are at liberty to build as many add-
'onal sections as they choose. Moreover
! since the signing of the contract concessions
have been granted by the Peruvian Government
of he rrht to connect the Southern railway system
at Puno with the frontiers OF Bolivia. and also, the
Central railway system, when completed, Win
the nayigabe waters OF the Amazon. win an az
ditonal land grant Of 5000 acres for every Kill
Ometrc Of railway built. y supplementary con-
cession Of 100000 acres of land has also been
sanctioned. The transfer Of the famous Cerro de
Pasco silver mines has also been arranged. by Mr
Grace and his associates, for the benefit OF me
hondholdrrs Negotiations have been successfully
conducted for concessions from the Bolivian Gov
eminent for railway 20 be built in connectlon
| with the southern railway system, with lana
| grants and subsidies Contracts have been mado
! already for repairing and extending the railways
ceded by the Government the creditors The rail.
ways have been transferred 10 the NV owners.
! The bondholiers are promised an immediate In.
come Of 81 600 900 year as the first result or
| The Grace contract. and it is estimated that this
sum will be largely increased when the conceded
RI are po } nav tne ~ The bond
holders thrtv-hree annuties of $50 900: but tho
first three of these annuities are 10 be refunded oy
the bondholders, the rebate amounting 10 gao oOo
! Practically the annuites will be reduced from
/ thiry-thrcc 10 thirty, beginning with the fourth
year and amounting 10 S2,4OJ,O0o IN thirty years.
L Inc Governments previously tNDlOlucN. arms
| bondholders with ell the guano privileges OBJ
! tained by the Gillian protocol They have the
| right 10 take 5000 900 tons Of guano wherever
! they find il in Peru, any excess over Inat
| amount being reserved for the Government Peru
/ cannot export guano until the bondholders shall
/ have secured their share. but retains exclusive
! control over the Chincha Island beds.
| These are the main outlines OF this stupendons
I liquidation scheme, which has practically been
carried into effect with the signing Of the contract
hy Lord Donoughmore the enactment Of The Con-
1rrr.s t,.rfol Nf0
. WAYS 10 representatives Of the creditors. The
: Nondhohers are empowered to mortgage their
railways mineral lands and gnano possessions %
J The extent of $50. 600 900. With fresh supplies
Of capital. for which arrangements are now max
ing in London. work Will he begun on the rau-
I WAYS both on the old sections where repairs are
/ greatly needed. and on the new sections designed
! 10 open rich mineral and agricultural regions.
! The contract has the full force OF pubhc law:
: having received the approval of Congress. II
allowed 10 stand il will b. put in operation
throlghout the country. and will mpart strong
stimulus TO every industrial interest me elec-
/ tions on April II may exert disturbing influence
upon this extraordinary financial scheme There
( have been four. and there are now three can
didates in the field. DIR. Francisco Rosas. Presl-
dent of the Senate is the candidate of the civilian
I as opposed To the military party. General Pieroa'
formerly dictator. and by nature a demagogue;
represents the lower orders of population. Colonel
Noralnl Bernudez has been understood 70 be the
! favored candidate of the CacereS Government, hut
this is disputed by the Presidents partisans. The
chief executives here. a. well in other sections
| of South America. have been in the past predls-
| posrd 10 nominate their own successors, and 10
carry the elections by force II necessary. fresi-
| dent Cacercs may follow this evil custom. nut
his partisans now resent the idea. The fourth
! candidate Scnor Canevnra. is out Of the field. y,
/ these candidates Dr. RoSas j. the ablest ana
most reputable. and his election Will IN
volvc the CARRYING ont of the Grace contract,
with the least possible resistance. tolone.
| Noralcz Bermudez, as the official candidate ot
. President Caccres would also be pledged to sns-
tain the contract. General Pierola Is the cahdi,
! date whose election is dreaded by all interested
ia the execution of the bondholders aei'emeht
but IL seems improbable that even IN the even!
/ OF his triumph this complex scheme of natlom'
liquidation can be repudiated in whole or III pairl
Mr. Grace'S achievement IN bringing aoou' tns
| s,unendous result ranks with the best and most
intricate work of European fnanccrs IN reailus'-
ing the debts of bankrupt States and IN rctununs
nationa debts. II has been an undertaking U.s. oes'
| and inwroupht with difficulties and emFarrass
mcnts. and his success has been honorable alhe 49,, ~
L - r-.-. IL -