The proceeds of the Honduras Government Loan were to be used to build an inter-oceanic railway line, the Railway from Puertos Caballos to Fonseca Bay, between the Pacific and the Atlantic Ocean.

The Minister of Honduras in Paris how happened to be a French doctor, Victor Herran, searched funds in France while Don Carlos Gutierrez went to London for the same goals. 

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