Page "History of Honduras" Paragraph 51

The connection between the wealth of the banana trade and the influence of outsiders, particularly North Americans, led O. Henry, the American writer who took temporary refuge in Honduras in 1896-97, to coin the term " Banana Republic " to describe Honduras.

By 1912, three companies dominated the banana trade in Honduras: Samuel Zemurray's Cuyamel Fruit Company, Vaccaro Brothers and Company and the United Fruit Company ; all of which tended to be vertically integrated, owning their own lands and railroad companies and ship lines such as United's " Great White Fleet ".

Through land subsidies granted to the railroads, they soon came to control vast tracts of the best land along the Caribbean coast.

Coastal cities such as La Ceiba, Tela, and Trujillo and towns further inland such as El Progreso and La Lima became virtual company towns.