only two-fifths of the loan was realized in this country, the remainder
was disposed of in Paris before August, 1870, and no account of the
application of the funds resulting from such portion of the loan could
be obtained.

"The two-fifths of the 1869 loan, and the whole of the loan of 1870,
produced net £2,051,511; out of this sum only £145,254 has been paid to
the railway contractors; a sum of £923,184 would have been sufficient to
discharge the interest and sinking fund in respect of the issued bonds
of the three loans, yet the trustees ... paid to Mr. L----£1,339,752 or
£416,568 beyond the sum so required to be paid upon the issued bonds of
the loans.

"There was paid to him for commissions (apart from expenses) on the
three loans, out of the above proceeds, the sum of £216,852. He also
received out of the same proceeds £41,090, being the difference between
£370,000 cash paid to him by the trustees and £328,910 scrip returned by
him to them. This £41,090 probably represents the premiums paid on the
purchase of the scrip before or immediately after the allotment of the
loan, and was certainly a misapplication of the proceeds of the loan.

"Mr. L---- was also paid, out of these proceeds, a further sum of
£57,318, nearly the whole of which seems to be a payment in discharge of
an allowance of £8 per bond in respect of the dealings in the 1867
loan.... In addition ... it will be remembered that Mr. L---- received
£50,000 'to maintain the credit of Honduras.'

"He also on the 18th of June, 1872, obtained £173,570 by delivering to
the trustees ... 5042 bonds of the 1870 loan, at £75 Per bond and 33,000
bonds of the 1869 loan at 104 francs per bond, and retaking them at the