Evening star., 1908-01-15

be able to create a temporary demand
for the bonds and unload small blocks
from time to time. And 1t is evident that
the spectators conspirators enjoyed the
entire benefit of the proceeds. for very
little sof the money ever went to the re-
public of Honduras. They sold as many
bonds as they could at any price they
could, and put the money in their pockets
According to the report of the parlia-
mentary committee the sum of e6o0O35
was actually realized from the first loan
OF c9OO. 700. of which the government Of
Honduras got only cJ1617. the railway
contractors f2a3,0s0, and alOS.742 was
used to pay interest in order to keep up
the price and humbug the public The
balance was disposed of in some myste-
rious way.
The second loan of fo176,570 was placed
in France, of which G1SO,O0O is said to
have been paid to the railway contractors
But the latter claim to have received only
f61 ,i31. and that is all Of the total loan
from which the government ever got any
benefit. Messrs. Bischoffsheim & Gold
schmidt had three million francs of nickel
money coined for Honduras. which cost
very little, but is charged against the gov
eminent at $6O0OOO. and was shipped to
Tegucigalpa, but the public refused to ac-
cept it and only a small portion of it ever
went into circulation.
Public Suspicious Aroused.
BY this time the public seemed TO have
had its suspicious aroused concerning the
operations of the agents Of Honduras, but
Messrs. Bschoffhsheim & Goldschmidt un-
dertook to float another 10 per cent loan
in London. AS the government had no
new guarantees to offer. real or nominal.
these financial agents beguiled innocent
investors by pretending to call in and re-
deem certain portion of the previous
loan. but it was afterward disclosed that
the bonds which were thus taken up had
never been issued. but were lying in the
vaults Of the brokers. Four cargoes of
mahogany arrived from Honduras. which,
1t was alleged. had been sent by the gov
ernment 10 be sold for account Of the
debt. but it appears that the mahogany
| was purchased as a decoy by the bank
ers and was sold for their benefit.
A secret arrangement was entered into
between the bankers and Lefevre. who.
| it Is alleged, was q French adVenturer
| and had served two years in prison In his
| own country for embezzlement. Under
| this arrangement to deceive the pub
| lie various applications We're made for
1 the bonds, and they were allotted to him
\ BY this fictitious proceeding G946.2OO OF
| the total of 42.242 500 bonds were .un-
loaded but it does not appear what was
! actually paid for them. 1t has been
proven. however. that with the sanction
and authority Of Senior Gutierrez the
minister of Honduras to Great Britain
Lefevre was able to juggle with the bonds
as he thought best for his own advantage
| 1t is aiso.alleged that he realized IN cash
| the sum of E955.39S as compensation foi
| his swindles and Of the proceeds
e145o54 was paid to the railway con
| tractors and e3S.930 TO the government,
4 Of Honduras This amount is said to have
| been all the benefits enjoyed by the re-
| public from that loan of $11 .o12. 800 which
| with cumulated interest for thirty-sever
years. now amounts to more thar
SJO.O0O.OG0.
J Contention Of Bondholders.
The Bondholders Association OF Lon
don. which represents the investors in the
| government loans OF Central and Soutl
| America. in it's statement contends tha,
the net proceeds of the three loans. will
/ a face value of e5,99O. iOs. was G2.695O 900
| leaving a balance of e3, 295, los which II
| not accounted for. The Bondholders
| Association also claims that the govern
ment of Honduras was benefited as fol
| lows:
Interest paid and bends redeemed. fl. 100 90
! Coming Of nickel money. ............ isV'WH
Paid TO the government ............. dco'OCs ~
| Salaries and commissions. ....-..... 24o,oN
| Total. .A@,ooo,Oo'
| Accounting this statement as accurate
| which the government of Honduras has
never been willing to do. II illustrates the
| size of the swindle. The 600 whicf
is now claimed to have been paid az IN
| terest upon these loans and to redeem
some Of the bonds is not creditedRgains1
the total of the loan or the accrued In
| t..o.t opd there IN no evidence that II