The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-01-29
DEPEw, BOSS OF HONDURAS
TO PAY THE GOVERNMENT EBr AND
CREATE A LITTLE NAVY.

In Return Tor These and other Services rzis
Syndicate Getn q Concession TO Build . Rail-
read rrsm Sea 10 sea-To RstnbIish . Bank.
Run the Customs. and nuend on snugElers.
MOBILE. Ala. Jan. 2s.-Special correspond
ence to persons here from officials Of high au-
thorlty in the Honduras Government has arrived
saying that tho Government has granted con.
cessions to the Valentine syndicate, composed
OF Chauncey NJ. Depcw, President, and w.
Seward webb, John Jacob Aston, Benjamin +.
Tracy, J. G. Mccullough. Frederick B-Jennings,
George S, Scott, Nathaniel A. Prentiss. Charles
MoVeigh and Melville E. Ingalls,, Jr., directors.
Tho agents for the syndicate are Henry L.
Spraguo and w. s. Valentine Of New York. Tho
letter received hero is from Mr.. Bernard, Vice.
Consul at Teguclgalpa, A duplicate has been
sent to the State Department at Washington.
1t says:
by the terms of tho concession the syndicate
Is to construct and operate a railroad from
Puerto Cortez to q point on the Bay Of Fonseco,
on the Pacific coast. The Government comedies
to the company the railway now in operation
from Puerto Cortez to Lapincienta, a distance
OF fifty miles. with all its appurtenances. A
subsidy of 100 feet Of land is granted on each
side Of the road. whether it passes through
public or private lands. In the latter case, tho
Government is to pny for the improvements on
the land, in accordance with the law. When
the roadway lies In inhabited sections, half this
width Of land 10 granted.
For every mile of railroad constructed tho
Government comedies Eve square miles of land
lying contiguous TO the road. Alternate sec
tions are granted where the road traverses pub
lie land When the road passes through pri-
vate property the company may select sections
"A 49, "a A
be made within 1--we years from the date Of con-
tract, A condition of the franchise says that Q
branch mel line shall extend p, to TeSuciEslpa capital a.
constructed under terms similar to those given
for the main line.
8 feet Q inches. Five miles shall DO constructed
IN the first year, twenty-five in the second, Il ~
m in the tn third cd,,n to Goame9 ~ atSIaua In the fP9 s r and
and freight. engaged In interoceanic travel or
transportation are not subject to customs dues:
the road are admitted FREQ of import duty. and.
with the exception of negroes and Chinese work
onlpt from personal taxes for ten years.
The syndicate may issue bonds in amounts
not to exceed $50, 600 in gold for each, mile Of
tho road. and may transfer rights in the prop
erty TO any private person or corporation, but
not to a foreign Government. The Government
reserves the right to purchase the road after it
The option will apply Mt the end of each success.
siye I've years after that period. and at the end
~ AsSy ahN JSa'S Az 'S"N eAe 80 y
tonances will become the property Of tho State.
Tho syndicate bligates itself to liquidato he
debt of Honduras. and offices for this purpose
will be opened in New York. London. and Paris.
a bank Is to be established under the name Of
the Commercial Bank of Honduras. with a
minimum capital of 100000 gold. Tho bank
has authority to act as the fiscal and financial
agent Of tho Government and as a depository
Of national funds. empowered to coin money.
The net profits are to be equally divided between
the Government and the syndicate from Oct. !,
1897. The bank Is to take control OF the Gus
toms Of the country. and the Government obli-
Eatos itself not to reduce the revenue tariff
within a period of fifteen. years. The bank is to
pay 1.o00,0o0 pesos each year; and q certain
annually to the payment of new bonds. Tho
railroad and bank capital is to be exempt from
all taxation. The syndicate is TO equip one or
more vessels as coast guard to prevent Snug
Cling.
Nv. S. Valentine has the management OF the
enterprise. When the road is completed it will
shorten the distance from Mobile to San Fran.
cisco over n thousand miles as against tho
Panama route. The work Of construction of the
railroad has actively begun"