Hall to Frelinghuysen, August 10, 1883

No. 30. Mr. Hall to Mr. Frelinghuysen.

Sir: The President of Guatemala has issued a decree relative to the construction by the Government of a railroad from the port of Santo Tomas, on the Atlantic, to this capital. I inclose copies and translations thereof, and of an appeal which he makes to his people for cooperation.

From the 1st of January, 1884, a personal tax of $4 will be imposed on every Guatemalan having an income of not less than $8 a month; for this tax the payer will receive a proportionate interest in the road; the tax: will not be collected from foreigners.

The estimated capital required for the work is $12,000,000, for which 300,000 shares of stock, at $40 each, will be issued.

As a means of bringing these shares into circulation, the Government reserves a strip of the public lands, a league in width, on either side of the proposed railway, for which, when sold, the Government will receive in payment the said shares only, at 25 per cent. premium during the first five years, and at 30 per cent. premium thereafter.

A board of three directors will have charge of the execution of the work and of the administration of its funds. The board will enter upon its preliminary labors as soon as its members shall be appointed.

The President appeals to the patriotism of his countrymen to cooperate with the Government in carrying out this enterprise, destined, he believes, to bring progress and civilization with it.

The motives of the President are praiseworthy beyond a doubt; but it is too soon to venture an opinion as to the probability of a realization of the project to which the decree relates.

I have, &c.,