[Inclosure 1 in No. 509.]
Mr. Bernhard to Mr.
Hall.
United
States Consulate,
Tegucigalpa
,
May 1,
1886.
Sir: In reply to yours of March 29, addressed
to Daniel W. Herring, esq., United States consul at Tegucigalpa,
requesting information about the mines and mining industry of Honduras,
I beg leave, in the absence of that gentleman, to report as follows:
The gold and silver mines of Honduras are divided into ten mineral
districts, having nearly two thousand known veins, beside which are the
placer gold washings, situated on what is known as the “North coast,”
that is to say, north of the Cordilleras, which, running east and west,
divide the country into a north and south section. I am aware that these
placers are attracting great attention in the United States, but from
the best information which I can get on the subject, are not as rich as
represented.
The alluvial deposits forming the gold washings average about 30 feet in
depth, and cover hundreds of square miles, all of which is well watered
and heavily timbered. Experts who have examined the placer country,
particularly in the department of Olancho, unite in pronouncing it equal
to the best California hydraulic washings, and say that large
investments of capital will meet with handsome profits. On the other
hand, the earth is too poor to pay the pan miner.
Gold-quartz veins abound on the north and south coasts, while between
them lies the great silver belt of the country. This silver belt is over
50 miles in width, and extends across the country from east to west.
The gold quartz veins yield mainly a refractory ore, and the silver ores
are principally sulphurets and galenas. Most all the silver veins carry
gold in paying quantities. Many of these veins attained great fame for
their production of the precious metals when Honduras formed part of the
vice-royalty of Guatemala. Indeed, Honduras then produced four-fifths of
the mineral wealth extracted by Spain from Central America. Many of the
traditions of these would be incredible but for the corroborative proof
furnished by the records in possession of the Government.
A case in point is the Claro Rico mine, located in the department of
Choluteca, near the Pacific coast. This mine produced gold in such great
quantities that the Crown of Spain doubted the genuineness of the metal,
and appointed a royal commission to investigate, and in consequence, a
special royal treasurer was stationed at the mine to receive the “Bang’s
fifth,” the tribute paid by all mines to the Crown of Spain.
The richness of another mine, the Guayabillas, also known as the
Gamblers’ mine, in the mineral region of Yuscarán, department of Pariso,
once caused a great revolution. It would not be difficult to cite twenty
other instances of rich mines in fact all the mineral districts contain
a number of properties which have been remarkable for their
production.
The records in support of the statements made of these mines date back to
the last quarter of the seventeenth century, and are in a remarkable
state of preservation. To search them, however, with any particular mine
in view, is a work requiring considerable [Page 62] time, as their care is divided between the General
Government and the municipality of Tegucigalpa, and no successful effort
has been made to classify them.
The two principal causes loading to the abandonment of the mines since
the independence of 1821, were numerous revolutions and the robbing,
under legal permission, the mines of their pillars. These pillars were,
in most instances, very rich, and afforded the native miner the readiest
profit at the least outlay, but ultimately resulted in the complete
ruination of the works.
By the native system of mining and reduction, ores yielding less than $60
a ton cannot be worked.
A few years ago the mining laws were amended by the adoption, with some
modifications, of the Chilian mining code, and a vigorous effort was
made by the Government to encourage the investment of foreign capital,
and concessions of great value have been repeatedly granted to
individuals proposing to organize companies to develop the mining
industry of the country. The only concession, however, which produced
any great result was granted to a Mr. Thomas R. Lombard, of New York
City, who organized what is known as the Central American Syndicate
Company. The great privileges possessed by this company have enabled it
to secure what are considered the best mines in the country. Under its
auspices nine companies have been organized in the State of New York,
and are all developing their respective properties on a large scale.
Judging from the work already accomplished and that said to be
contemplated, all of these companies are in possession of ample funds to
carry them to success. The companies have their headquarters in New York
City, and are known as the Santa Lucia Mining and Milling Company, the
Rio Chiquito Company, Santa Elena Mining Company, Honduras Mining
Company, Yuscaran Mining Company, Animas Mining Company, and the Pariso
Reduction Company.
As the Government derives no revenue from the imports or exports of the
mines, no data is kept of the bullion exportations.
The Government has greatly aided the mining industry within the past ten
months by the building of a practical cart road from the Pacific coast
into the heart of the mining country. This is the only cart road in
Honduras.
The mining laws are liberal, but, excepting in the case of the companies
organized under the concession granted to Mr. Lombard, and now owned by
the Central American Syndicate Company, titles to mines are not held in
fee-simple. Aliens enjoy the same rights as citizens in respect to mines
and real estate, and the General Government is disposed to grant extra
privileges to those who can influence the introduction of capital.
A mining claim is 250 varas long, by from 100 to 200 varas wide,
according to the dip of the vein. A vara is between 32 and 33 inches
long. More than one claim, is allowed upon a vein.
The imports and exports on account of the mines are free.
Possession of mines is maintained for an indefinite term by the labor of
four men. Natives engaged in mining can bo exempt from military
duty.
Yours, &c.,
GEORGE BERNHARD,
Vice-Consul.
[Inclosure 2 in No. 509.]
Mr. Hall to Mr.
McPherson.
United
States Legation in Central America,
Guatemala
,
May 20, 1886.
Sir: I have received from the Department of
State copies of your letter, dated the 12th ultimo, to the honorable
Secretary, and one to myself of the same date, in which you ask for
information concerning the mines and mining interests of Honduras.
Within the past week I have received a report on that subject from Mr.
George Bern-hard, an intelligent resident for many years of that state,
and I have no doubt it will be found both interesting and trustworthy. I
inclose a copy herewith.
I beg leave, however, to suggest to you, before making any definite
arrangement, that two or more of your company should visit Honduras and
acquire the necessary information by actual observation and experience.
They should visit the capital, Tegucigalpa, which is most accessible
from Amapala, the Pacific port of the country, and make their plans
fully known to the Government, which I have no doubt will afford them
all needed information and such assistance as it may be able to
render.
The Hondurian Government manifests a great desire to give every
protection to legitimate enterprises when undertaken by responsible
parties with sufficient means to carry them out.
I am, &c.,
