Loan guaranteed by the Government of Honduras, which undertook to share with the subscribers one third of the net proceeds of the Railway from Puertos Caballos to Fonseca Bay for 15 years from the full repayment of the said Loan.

The proceeds of the loan were to be used to build an inter-oceanic railway line, between the Pacific Ocean and the Atlantic Ocean.

This bearer bond is authentic and not canceled. It is signed by the Minister of Honduras in Paris, Victor Herran, who searched for funds in France while Don Carlos Gutierrez went to London for the same goals. 

This uncancelled certificate has a beautiful design (railroad, sailships, bridge...). It includes all coupons, a sign of non-payment of dividend.

15 years before the scandal of the Panama Canal affair, this project was indeed a real fiasco, and at the origin of a financial and political scandal on both sides of the Atlantic. Only 57 miles of track had been built between Puerto-Cortès and San Pedro Sula, and was abandoned in 1875. By 1904, the railway debt still amounted to over £ 2 million. The railway was finally completed much later in 1883 and remains today the only railway in the country.

For more information: https://journals.openedition.org/rhcf/1651