A.  J.  Scherzer,  in  pursuance  of  a  contract  made  by  the
Government  with  Mr.  Scherzer  in  1891,  for  the  purpose
of  the  extension  of  the  railway.  These  bonds  were
specially  secured  on  10  per  cent,  of  the  Customs  duties,
and  also  by  a  first  mortgage  on  the  railway  line  from
Ateos  to  Santa  Ana  (thirty  miles)  when  built.  These
bonds  were  not  issued  to  the  public,  but  were  delivered
from  time  to  time  to  the  contractor,  against  the
engineer's  certificates,  as  the  works  proceeded.
1894 :  A  company  called  the  Central  American
Public  Works  Company  was  registered  by  Mr.  Mark  J.
Kelly  in  London,  and  Mr.  Kelly  was  associated  with
Mr.  Scherzer  in  carrying  out  this  contract,  and  in
the  month  of  April  a  concession  was  obtained  from
the  Government  under  which  the  contract  of  1891
was  cancelled.  The  Central  American  Public  Works
Company  undertook  to  complete  the  line  to  Santa
Ana ;  to  build  a  branch  from  Sitio  del  Nino  to


52    SALVADOR  OF  THE  TWENTIETH  CENTURY

San  Salvador  (twenty-four  miles),  together  with  a
deviation  of  one  and  a  half  miles  at  the  port  of
Acajutla  ;  to  give  the  Government  £70,000  in  fully-
paid  ordinary  shares  of  the  company  when  issued  ;  and
to  redeem  the  loans  of  1889  and  1892.  The  Govern-
ment, on  its  part,  agreed  to  hand  over  to  the  Company
the  whole  of  the  railways  for  a  period  of  ninety-nine
years,  and  to  guarantee  the  Company  for  fifty  years
a  net  annual  profit  on  working  the  railways  of  6  per
cent,  upon  the  sum  of  £800,000,  secured  by  a  charge
of  10  per  cent,  on  the  import  duties.
