In 1879, over a question of boundary lines, Peru became involved in a

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.

Selling Latin America: A Problem in International Salesmanship. What to Sell and How to Sell It · 第 4 / 17 段