war with Chile, lasting five years, the result being the defeat of Peru
and the invasion of its capital. As a consequence, Peru ceded one of its
richest provinces, Tarapaca, outright to Chile, and the territories of
Tacna and Arica conditionally for ten years, at the end of which period
a vote was to be taken in these provinces, and the inhabitants were to
decide under which country they preferred to remain. The Chileans,
despite the repeated requests of Peru, have failed to observe this
condition of the peace treaty and these territories with all their
wealth still are under the control of the conquerors. The methods
employed by the Germans in Alsace-Lorraine have been used here by Chile,
and the chances are that this district will always remain in the hands
of its present governors.
A President and two Vice-Presidents, together with a legislative body of
two branches, a Senate and a House of Representatives, control the
destinies of Peru.
Peru contains 687,600 square miles, and is bounded on the north by
Ecuador and Colombia, on the east by Brazil and Bolivia, on the south by
Chile, its western boundary being washed by the waters of the Pacific
for its entire length of 1600 miles. For purposes of comparison Peru
covers as much territory as Texas, Nevada, Utah, New Mexico and Arizona.
Three mountain ranges run through this country between which are found
extremely fertile and productive plateaus, the scene of much of the
country’s agricultural development. The land from the coast to the
foothills of the Andes is as a rule barren, and were it not for the
Humboldt Current which runs close to the shore and cools it, would be
exceedingly tropical. On the eastern slopes of the Andes, as they
stretch toward Brazil and Bolivia, there is a wealth of verdure,
vegetation and virgin forests, due to the heavy rains and the tropical
sun’s action. This comprises three-fourths of Peru’s territory. The
table-lands are cool and enjoy a temperate climate. From June to
November, the days are marked by a fine drizzling rain, particularly
along the coast but for the rest of the year rain coats and umbrellas
are not needed.
Peru claims a population of 4,500,000 but I seriously doubt if it will
reach 3,500,000. Of this number fully half are unlettered, ignorant
Indians, lacking in ambition, requiring few necessities and living most
primitively. One-fourth are half-breeds, the descendants of the
conquerors and the Incas. About two per cent. of the population are
Chinese. Here it may be noted that many archæologists and
anthropologists believe that the early settlers of Peru came from China,
across the stepping stones in line with the finger of Alaska which
points toward Asia, and by degrees wandered down the western coast of
America, finally establishing a government near what is now the city of
Cuzco. Perhaps 15 per cent. are pure white. There are nearly 50,000
Europeans and Americans located throughout Peru. Italians and their
descendants are most numerously represented, followed by Germans and
English.
Peru has no navigable rivers on her west coast, the many streams which
empty into the Pacific being dry or very low except during the periods
of heavy rains. Properly husbanded their water power could be
effectively used. To-day they serve for irrigation and near some of the
larger cities, such as Lima and Callao, have been advantageously used
for generating electric light and power for tram systems. On the eastern
side of Peru there are about 3500 miles of navigable rivers for
light-draft vessels, drawing 8 to 15 feet, all of these streams
ultimately emptying into the Atlantic.
Iquitos with 20,000 inhabitants, on the Amazon, 2500 miles from the
Atlantic Ocean, is the center of the rubber industry, and is more
accessible from New York than from the capital of the Republic, Lima.
Peru has 1840 miles of railway, 1300 being standard and 500 narrow
gauge. Nearly 3500 miles of road have been surveyed and are in various
process of construction. Nominally about 1200 miles of these roads are
owned by the Government but are operated and controlled by the Peruvian
Corporation, Ltd., an English organization, whose presence is very much
in evidence in Peru, and which also operates a line of steamers on Lake
Titicaca. Under the present contract with the government this concern is
to control the railways under it until 1973, a certain percentage of the
profits to go to the State, and another portion to be utilized in
railway extension.
The Peruvian Corporation, it should be stated, was organized by
Europeans holding Peruvian bonds on which it was impossible to collect
the guaranteed interest, due to the mismanagement of the government as
well as the outcome of the war with Chile. This corporation took over
and cancelled the indebtedness in return for certain privileges among
which was the right to exploit the railways.
To Henry Meiggs, an American from San Francisco, Peru and the world is
indebted for the completion of what are the most marvelous railways on
the globe. By a series of twists and turns, which include 65 tunnels and
67 bridges, it climbs to the highest point in the world ever reached by
a railway, 15,665 feet above sea level in a distance of 138 miles, to
what is locally called “the roof of the world.” Some idea of the
rapidity of the ascent may be gained when I state that in the first
twenty-five miles from Lima the train ascends 2800 feet above the sea,
while it reaches 5000 feet twelve miles further on its journey.
Another wonderful road runs from Mollendo through Arequipa and on to
Puno, at the edge of Lake Titicaca, passing through the most magnificent
scenery and ascending to an altitude of 14,665 feet. There are numerous
Americans employed in the management of the Peruvian railways and
practically all the rolling stock comes from the States.
The many mountains paralleling the coast make railway construction a
difficult and expensive problem. It is possible that this will have much
to do with the retarding of the progress of mine development, inasmuch
as many of the mineral deposits are almost inaccessible due to their
interior location.
Unlike Chile, Peru has many natural harbors, affording protection
against storms, Mollendo, Salaverry and Eten being the only ones really
dangerous to shipping and life. The ports from north to south are
Tumbez, Paita, Eten, Pacasmayo, Salaverry, Chimbote, Huacho, Ancon,
Callao, Pisco, Mollendo, and Ilo. The docks at Callao, the leading port,
are quite modern and capable of receiving the largest vessels.
[Illustration:
_Copyright by Underwood & Underwood_
Oroya Line, Peru
]
Peru’s products are chiefly mineral and agricultural.
Her mines have long been famous, producing gold, silver, copper, iron,
coal, bismuth, lead, quicksilver, tungsten, antimony, molybdenum,
vanadium and borax. Her petroleum fields are a source of much revenue.
Her guano industry is being revived by protecting the birds which
frequent the islands and by restricting the working of these deposits.
Sugar cane, cotton, and rice are profitably raised.
The forests of the eastern section are rich in cabinet and medicinal
woods.
Copper is the leading metal mined, the production in 1912 being valued
at $9,625,000, while the amount of silver extracted in the same period
was $5,152,412. Vanadium, used for hardening steel, exists, the deposits
being larger than in any other locality. More than $500,000, or 70 per
cent. of the world’s output, was exported in 1912. The bulk of these
industries is controlled by American capital and many Americans are
employed.
There was mined in Peru in 1912, 268,000 long tons of coal, 254,088 of
which came from the mine owned by the American companies operating at
Cerro de Pasco and was used chiefly in the smelters. Geologists estimate
that there is a carboniferous area in this country of approximately
40,000,000 tons of coal.
Peru is fortunately rich in being the possessor of petroleum fields
yielding a high-quality oil, much of which goes to the States and Europe
for purifying. One local refinery has a capacity of 300,000 gallons per
month. The Standard Oil Company owns some of these properties, but the
largest holders are British and Italians. In 1912, 214,947 metric tons
of oil were produced. The national line of steamers are oil burners.
In 1913 Peru exported over $51,000,000 worth of cotton and $7,500,000 of
sugar; $2,000,000 of vicuna, alpaca, llama and sheep’s wool; $500,000
worth of cocaine and $3,000,000 worth of rubber. Much coffee, tobacco,
and cocoa are grown, most of which is used for home consumption.
Peru’s crops are produced chiefly by irrigation, the watersheds on the
mountain sides being of great advantage in this connection.
Cotton is manufactured into cloth in mills situated at Lima, Arequipa
and Ica. There are also woolen mills but they do not come anywhere near
supplying the local demand and much is imported.
Panama hats are largely produced, in 1911 the exports in this line
reaching the enormous sum of $2,147,668. Some twenty-five factories in
the Cuzco valley are devoted to the production of cocaine, the world’s
supply largely coming from this section. The cattle and wool growing
industries are capable of much greater development.
Peru is on a gold basis, the _sole_ being the unit of value. This is a
silver coin and is designated thus “$.” Ten _soles_ ($10) equal a gold
_Libra_ or pound, worth a pound sterling or $4.8665 U. S. gold and
expressed thus “_Lp._,” meaning _Libra Peruana_, or Peruvian Pound. A
_sole_ contains 100 _centavos_, or cents.
Peru’s exports in 1912 were $45,871,504, and her imports $25,066,354,
the bulk of the business being done with the United Kingdom, the United
States being second. Within the past five years the exports from and
imports to the States have materially increased and are rapidly
approaching those of our greatest competitor, England. This is due
perhaps to the development of the mining industries, under the control
of American capital. In 1910, England shipped Peru $8,134,189 worth of
goods to our $4,484,214 and Germany’s $3,842,855. In 1912 the figures
were as follows, England $6,800,708, United States $5,763,423 and
Germany $4,557,698. Undoubtedly the figures for 1913, when available,
will show a decided further gain for us.
Peru exports copper, gold, silver, mercury, vanadium, bismuth, cocaine,
quinine, wool, sugar, petroleum, hides, hats and guano, and imports
textiles, mining machinery, oil machinery, pipe, railway supplies,
windmills, corrugated iron, tools, hardware, flour, canned goods, shoes,
electric supplies, typewriters, mineral waters, wines and liquors.
The bulk of invested capital is English, but in this line the Americans
are forging to the front. Germans, Italians, and French are chiefly
interested as merchants throughout the country.
There are no taxes or restrictions placed on commercial travelers and
samples are admitted duty free.
If you are handling mining machinery or devices for use in mines or
petroleum fields, it is apparent that the localities where these
industries thrive should be visited personally. Many of the mines have
company stores located in their holdings that are worthy of calls, while
others maintain purchasing agents in Lima for this purpose. Inquiry of
local authorities will give all the information necessary, otherwise the
following cities should be visited:
_Population_
Lima 150,000
Callao 35,000
Arequipa 35,000
Cerro de Pasco 18,000
Piura 15,000
Trujillo 12,000
Mollendo 6,000
Cuzco, with a population of 26,000, is hardly worth a visit for business
purposes, but is interesting for its historical associations. It was the
ancient metropolis of the Inca Empire. Mostly all of its buildings were
of stone, set together as wonderfully as the Pyramids, their joints
being so perfect that a knife blade cannot be inserted between them.
Streets crossed each other at right angles, and were paved with
naturally colored stones, forming intricate patterns and geometrical
designs, which can still be seen. There was an imposing temple dedicated
to the sun, whose walls were studded with gold plates. Water from the
mountains ran through the city streets, while around the entire town
were fortifications many of which yet remain. Its civilization was of
the highest order.
Iquitos, 20,000, should only be visited from Mañaos in Brazil. It is a
good business town.
Peruvian ports can be reached via the Straits of Magellan and Smythe
Channel from New York or via Colon and Panama. There are direct European
steamers from England and Germany weekly, with connections for Panama,
either through their own lines or via the Chilean or Peruvian National
steamers, both of which make all the ports along the coast. There are
also tramp and freight boats from San Francisco which carry passengers,
but for personal comfort this service is not to be recommended.
To get to Iquitos, take the river boats from Mañaos, Brazil.
IX
ECUADOR
Sebastian de Benalcazar, a lieutenant of Pizarro, on December 6, 1534,
was the first European to enter the Kingdom of Quito, the seat of
government of the Caras Indians. The Spaniards controlled this territory
at different times from Lima, Peru, or from Bogota, Colombia, as
conditions warranted.
In 1809 the Ecuadorians attempted to throw off the yoke of Spain, but
were unsuccessful in establishing their independence from the Mother
Country until May 24, 1822, when General Sucre defeated the Spanish
forces at Pichincha, as a result of which Ecuador entered a union,
fathered by the Great Liberator, Simon Bolivar, and comprising as its
other states Colombia and Venezuela. Internal dissension which grew
resulted in the dissolution of this trinity of republics, and on August
14, 1830, Ecuador proclaimed herself an independent republic, adopting a
constitution similar to those in vogue in Latin America. The executive
power is vested in a President and Vice-President, the legislative in a
National Congress composed of two houses—a Senate and a Chamber of
Deputies.
Ecuador has an area of 116,000 square miles, or about as big as the
combined areas of Missouri and Arkansas. The Galapagos Islands, which at
one time the United States tried to acquire by purchase for a coaling
station, lying 750 miles to the westward, with an area about 2500 square
miles, also belong to this country.
Ecuador is wedge-shaped, bounded on the north and east by Colombia, on
the south by Peru while the waters of the Pacific lap its western shore
line.
The climate is diversified, running all the gamuts of change from
tropic, semi-tropic and temperate to cold. The tropical region, as may
be surmised, starts at the coast line and continues to the foothills
where it gradually changes to semi-tropical at 6000 feet, and to cold in
the fertile plateau on which Quito is situated at about 9000 feet. Above
this in the mountains it is always much colder. The Equator passes
across the northern tip of the country near Quito, while two ranges of
the Andes run parallel throughout its length for 520 miles, embracing
some of the highest peaks in the system, Chimborazo being 20,498 feet
high and Cotopaxi 19,613. The plateau between these ranges averages 65
miles in width and has a mean altitude of 8250 feet.
These mountains form watersheds giving rise to two river systems,
flowing respectively toward the sea and toward the interior, which
ultimately develop into 91 distinct rivers, only one, the Guayas, on
which Guayaquil is situated about 60 miles from where it empties into
the sea, being of any great commercial value. The other rivers which are
navigable for a short distance are the Daule and the Vinces in the west,
while the extension of the Amazon in Ecuador, there called Marañon,
affords direct communication with Brazil.
A census has never been taken in Ecuador but the population is estimated
at 1,500,000. Perhaps 1,200,000 would be nearer the true figure.
Seventy-five per cent. are Indians, 200,000 half-breeds, 100,000 white,
2500 negroes, with a floating foreign population of 7500.
There are fewer railways in Ecuador than any other country of South
America. One American owned and operated railway running from Duran, on
the opposite bank of the river from Guayaquil to Quito, a distance of
285 miles, may be described briefly as the scenic road of the world.
There is another road of about 20 miles, and one or two contemplated
lines.
Ecuador has been cursed by revolutions, and depressed by the lack of
enterprise on the part of its various governments. Guayaquil is perhaps
the dirtiest city in the world and at all times a hotbed of filth and
disease. For these reasons it has been shunned by tourist and traveler
alike, although it is one of the best markets I know of on the West
Coast.
The country has no great industries. It is, however, susceptible of
enormous developments. It has no agriculture to speak of, but can
successfully raise sugar, tobacco, coffee, cotton, cocoa, bananas,
wheat, cereals and tropical and temperate fruits. Its forests are rich
in cabinet and hard woods. Medicinal trees abound, as well as the tagua
nut tree from which the ivory nut comes, and the species of palm which
furnishes the fibre for Panama hats. Cocoanuts are plentiful and of an
excellent quality. There are minerals in quantities sufficient to pay
for the mining, such as coal, sulphur, copper, gold, iron and silver.
Oil has recently been discovered. Over most of the land disease lurks
and the ambition of the native is dead.
The monetary unit of value is the _sucre_, named after one of its
military heroes; it has a value in American money of 48.7 cents. Ten
_sucres_ are the equivalent of a pound sterling and are called a
_condor_, after the Andean bird.
There are a few English houses in business here, but the bulk of the
trade is under German control. Many Syrians have come to the country and
established themselves as petty merchants.
Cocoa is largely grown in Ecuador, the bean being of a high grade, rich
in color and fats. Strange to say, practically none of the chocolate of
commerce is made here, the crude dried bean only being exported. In 1912
$7,653,505 of this article alone was exported, chiefly to Europe,
despite the fact that we, as a nation, are the largest users of
chocolate.
Forty million one hundred and forty-three thousand four hundred and
fifty-two pounds of tagua or ivory nuts worth $936,511 were exported in
the same time, most of it going to Germany to be made into buttons; one
German village has fourteen factories elaborating this product into the
finished article of commerce.
Panama hats are made by individuals, collected by jobbers, and exported,
this trade in 1912 amounting to $1,372,051.
More than $1,000,000 worth of rubber was exported in 1913, and in the
same time coffee to the value of $783,787, most of which went to Chile.
The total exports in 1912 amounted to $13,717,884, as against
$10,652,843 imports, the leading articles being boots and shoes,
candles, ready made clothes, crockery, drugs, food stuffs (flour and
canned goods), hats, hardware, machinery, oils, paper, perfumes,
textiles, wines and liquors.
I cannot refrain from repeating that Ecuador, due to the prevalence of
disease, is passed over by most travelers and as a consequence there is
little competition, and one is sure of doing business here if his
product is appropriate.
A small license or fee is one of the legal requirements to sell goods in
this country, but is more honored in the breach than the observance.
These towns should be made:
_Population_
Guayaquil 80,000
Quito 80,000
Cuenca 35,000
Riobamba 18,000
There is but one city in the Galapagos group of islands, namely
Floriana. They are unworthy of any attention from a commercial
standpoint.
Ecuador is reached most directly from Panama in about three days.
Travelers going to Peru or Panama from any of its ports are detained in
quarantine and have their baggage disinfected. This rule is strictly
observed. Freight should be sent via any line to Colon or Panama for
trans-shipment as there are but few direct boats. From San Francisco the
Kosmos Line of Hamburg formerly maintained a bi-monthly direct service
which may be resumed after the war. The West Coast Line from New York
has irregular sailings via the Strait of Magellan, carrying only
freight; the voyage takes about three months as the ships drop off cargo
en route.
X
COLOMBIA
Columbus on his fourth trip of discovery to the New World was the first
European to sight Colombia. He sailed along the coast during September,
1502, but did not undertake to land. Alonso de Ojeda in 1508 obtained a
patent from the Spanish crown and after repeatedly repulsing the warlike
Indians, secured a foothold at Cartagena, which place he proceeded to
fortify. Others with warrants from the King of Spain also entered the
territory, ultimately subjugating the Indians and establishing the
capital at Bogota in 1538.
The province was called New Granada and was governed by a Viceroy until
1810 when a revolutionary movement deposed him, and on December 17,
1819, the Republic of Colombia was born. Under the guidance of Simon
Bolivar, Venezuela and Ecuador joined with Colombia in forming a union
of these republics, which could not be held together after the death of
the founder, in 1830. On the dissolution of this body of states, the
Republic of New Granada came to light November 17, 1831, this title
being changed to the United States of Colombia in 1863.
Colombia covers an area of 438,436 square miles, and like the United
States enjoys the unique advantage of having a coast line on two
oceans—the Caribbean Sea to the northwest being part of the Atlantic and
the Pacific on the south and west. Ecuador and Peru form her southern
boundary, Brazil and Venezuela are on her eastern frontier, while
Venezuela stretches across much of her northern limits, and the Republic
of Panama is the only land on the west.
Colombia is a land of mountains, plateaus and wide plains. To the east
and south are large areas of level ground known as “_llanos_,” or
“_selvas_,” covered with grass and tropical growths including virgin
forests. This section has enormous rainfalls, is very warm, unhealthful
and sparsely populated, in fact, has hardly been explored. There are
three different mountain systems running northeast and southwest,
between which are rich, luxuriant valleys, capable of great agricultural
possibilities. These mountains contain many extinct volcanoes, of
varying altitude, one being 18,000 feet high.
The climate ranges from tropical to temperate, Bogota, the capital,
having a uniformly cool and spring-like temperature throughout the year,
due to its elevation of 8600 feet. In the lowlands, and especially along
both coasts, the heat is oppressive and far from salubrious. This is
also true of much of the low-lying interior country. The cities on both
coasts are notably unsanitary.
Colombia claims a population slightly in excess of 5,000,000, but I
doubt if it really has 4,000,000. About one-tenth of the inhabitants are
pure white and there are 200,000 wild Indians, living primitively under
tribal chiefs, nominally under the control of the local government. The
remainder are mixtures of white, black and Indian in varying proportion,
over 300,000 of whom are negroes and mulattoes. Little can be hoped for
from the majority of these people owing to their poor source of origin
and the climatic conditions which surround them.
The Government recognizes the doctrine of states rights, and is
republican in form with the usual branches, judicial, legislative and
executive. A President with two Vice-Presidents represent the executive
control, and the legislative body is composed of a Senate and House of
Representatives.
The mountainous topography of Colombia has had much to do with the
scarcity of railways, rendering them expensive in construction and owing
to the great distance between possible termini, likely to make them
profitless ventures. There are about 650 miles of railroads in Colombia,
many of them supplemental to river transportation, or connecting ports
with interior towns. It is doubtful if this condition will ever alter
materially.