Agriculture Reference
In-Depth Information
bility in Honduras: just threeyears earlier, Nicaraguan forces had invaded
Tegucigalpa and ousted Bonilla from power. Miguel Dávila assumed the
presidencyintheaftermathonlytolosemostof hispoliticalsupportwhen
his government signed a treaty with the United States giving the latter the
right to oversee Honduran customs receipts.
1
Sam Zemurray was among
those who opposed the treaty for fear that it would bring an end to the
generous duty exemptions held by his fruit company. The Dávila admin-
istration further irritated Zemurray by leasing the National Railroad—a
key transportation artery for banana exporters—to a rival U.S. investor.
In contrast, Bonilla had previously granted important land and railroad
concessions to Zemurray. Little wonder, then, that Zemurray was willing
to provide financial backing for Bonilla's ''invasion.''
2
With the rebels occupying La Ceiba, Roatán, and Trujillo, President
Dávila appealed to the United States for support. A U.S. warship entered
Honduranwatersandimpededtheadvanceof Bonilla'sforcewhilesimul-
taneously keeping government troops at bay. Dávila then offered to step
down from power provided that the United States agree to arbitrate a
settlement between the competing political factions. The negotiations,
which took place aboard the U.S.S. Tacoma, culminated with the naming
of Francisco Bertrand as interim president. Bertrand's appointment was
a victory for Dávila's opponents and set the stage for Bonilla's triumph in
presidential elections held in November 1911.
3
That same year, United Fruit sold its interests in Cuyamel Fruit, and
Zemurray subsequently incorporated his company with an initial capital-
ization of five million dollars.These legal maneuvers in Honduras and the
UnitedStatessetthestageforaveritablebonanzaofconcessionsapproved
by Bonilla during his first year in o
ce. Zemurray secured two conces-
sions in March that included a lease on 10,000 hectares of land plus the
rights to develop port facilities in Omoa. In April 1912, Bonilla approved
a railroad concession in the name of Cuyamel Fruit Company executive
Hillyer V. Rolston. Two months later, Rolston transferred the concession
to Zemurray, who in 1913 passed the concession to theTela Railroad Com-
pany, a subsidiary of the United Fruit Company. The transfer was a pay-
back of sorts for the financial backing that United Fruit had provided for
ZemurraywhenhefirstenteredHonduras.UnitedFruitacquiredasecond
major railroad concession in 1913 via J. B. Camors, who one year earlier
had assumed control over the concession originally granted to the Fair-
banks Syndicate, an investor group led by a brother of former U.S. Vice-
President Charles W. Fairbanks. After failing for more than a decade to
establish a foothold in Honduras, United Fruit secured two key conces-
