AN EXTRAORDINARY RAILWAY STORY.

New Zealand Times, Volume XXIX, Issue 4289, 18 December 1874, Page 3

AN EXTRAORDINARY RAILWAY STORY.

An adjourned meeting of the shareholders of the Honduras Inter-Oceanic Railway, which turned out a very stormy one, was held in London in October, under the presidency of Mr. Digby Seymour, Q.C., who explained that in 1573 a committee of bondholders was appointed to inquire into the condition of the company, and to report. Owing, however, to the want of certain books which they had no power to inspect, they had not been able to get at the bottom of the loans and the history of them. Some startling results had, nevertheless, been arrived at. They had, for instance, discovered the fact that the amount of bonds held against the Republic of Honduras represented the enormous sum of £5,317,720; but they were unable to find out where that sum had gone. Of the English loan there was a total issue of £2,735,937 10s.; but as to the French loan they were left in the dark. A sum of £562,800 had been paid on engineering and railway works; £17,500 for expenses on the French loan account; £165,000 to the Government of Honduras for mining purposes; and about £1,000,000 for the sinking fund. A deficit of about £3,000,000 sterling remained unexplained to their satisfaction. This intimation was received by the meeting with groans and cries of “ Shame !” Mr. Seymour declared that it was an indelible disgrace on the commercial representatives of the company in this country. Out of a loan of five and a half millions, the Honduras Government had only received half a million. At present nobody seemed to know where the money had gone to, though they hoped to discover. The chairman further said he had made up his mind that the financial agent in London should be asked on his oath—- “ What have you done with the bonds, and where is the money !” Similar questions would be asked of several other persons, and writs had already been served. The further statement of the chairman, “there was no concealing the fact that the bonds were worthless,” was received with “ Shame !” and groans. The proceedings then became exceedingly stormy, but ultimately the report was adopted, and the meeting became special, in order that alterations on the articles of associations might be agreed to, and that the board might be enabled to issue debentures at a lower denomination than at present.