New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-10
SYNDICATE BROKE FAITH.
SAYS HONDURAN ENJOY.
Secretary Hay Protested against
Sei2ure of Railroad.

DR.. Angel Ugarte, cx-Secretary of State of
Honduras who arrived in this city on Friday
vas asked Yesterday at the Hotel Victoria re-
rardine the mission which his government
has sent him to this country. The object of
his appointnent as special emissary to the
United states is to place before the State De-
,,a-tnsent at Washington the case of the Hon
duran Government in its dispute with the
Honduras Syndicate. Of this city, of which Sen
ator Chauncey NJ. Depew and other New-York-
ers are directors.
Honduras recently seized the railroad operat-
ed by the syndicate. DR.. Ugarte made it known
Yesterday that this seizure has been made the
subject Of protest from Secretary Hay to the
government Of Honduras, through the United
states Minister there.
The Honduran envoy is also charged with
The mission of opening offices here for the regis
traton of bonds OF Honduras, the proceeds of
which were used TO build the railroad over
which there is now a controversy.
According TO DR.. Ugarte the American syndi-
cate twice violated the terms of the contract by
which it leased the railroad from the govern
ment.
"The trouble arose." he continued, lover the
failure Of the syndicate TO build a bridge over
he UIua River, thus connecting the ifty-three
miles Of road on one side and the five miles on
the ether. The time for the commencement of
this work expired year ago last June. To
show our magnanimity we gave the syndicate
an extension of a year. They again failed to
comply with the contract. whereupon we, ac-
cording to law, seized the road, which the gov
eminent is operating. The syndicate has
asked another year, which has been refused
The syndicate obtained the lease Of the road
which runs from Puerto Cortez TO La Pimiento
eleven years ago. and it's earnings have been
between 10000 and 10000 pesos a year. Yet
the service has been miserable. There are only
tvo passenger cars on The line. which are really
little better than cattle cars It should be under
stood that the Honduras syndicate never owned
this railroad. It was only leased TO them. And
We have been far from arbitrary in the matter
An offer has been made for the lease by other
persons. bat we would prefer an American COM
pany. A German concern would like to estab-
FISH German colony in Honduras, of which we
disapprove We will welcome immigrants who
come singly, but we are opposed to wholesale
immigration.
Il am sure that my government can convince
the authorities at Washington that we have
acted right and in good faith
In regard to the registration of Honduras
aonds in this city and in London and Pari-
where other offices will be established. Dr.
l-garte said it was done to ascertain the exact
indebtedness Of Honduras from the building Of
the railroad, as the government suspected That
all the bonds were not issued and all the money
negotiated in Europe for this purpose was not
expended the enterprise. The road was
built. he said, by the same firms that ISSUED the
bonds and no account had been rendered.
The total debt is about S13500,o00. at per
cent, and the interest has not been paid since
1873. Thus far only the English bondholders
have demanded payment.
DR.. Ugarte announced that President Bonilla
had appointed Senior Salvador Cordova, a Column
bia University graduate, as consul general in
this city.
The government" he said. lis well pleased
with the able services rendered by General
Bolet-P eraza the present incumbent, but Presi-
dent Bonila intends to fill all our consulates In
this country with native Hondurans' tnat our
people NAV come in direct touch with the
American people and cultivate closer relations
General Juan Angel Arrias, who lately usurped
ne . fesidency, was imprisoned for the murdc
Of a Spaniard in quarrel and not for his
political offence it is said.