Under the old haphazard system, when a man would frequently go out into

the desert alone, or with a single companion, hunting for rich veins of

copper ore, a good living at least was the rule; when the discovery of a

considerable deposit warranted the introduction of simple machinery, a

few employés, transport animals, etc., many little and big fortunes were

made. The buyers and smelters of last century also earned satisfactory

returns. But, curiously enough, the huge organisations utilising immense

masses of lower-grade ores, employing thousands of men and most modern

machinery, with smelters at the mining camp, are generally stated to be

run at a loss. There are reasons why such statements should be accepted

with reserve, but looking at the matter purely from a Chilean angle it

is at least questionable whether an industry which yields nothing to the

national treasury in the way of export dues upon the mineral shipped

out, and which draws many thousands of men from agricultural zones to an

isolated and entirely artificial life under conditions tending to lower

the standard of citizenship, has a sound _raison d’être_. Possession of

the large Chilean copper deposits, whether operated at all, or operated

without profit, does however enable a group of powerful interests

controlling copper in North America to control also the copper markets

of the world: for after North America, Chile is the scene of the

greatest identified copper areas, the two series of mines together

producing over 60 per cent of the total international output.

At the present time, that is to say, at the end of 1921, the situation

in Chile with respect to copper is briefly this: there still exists,

throughout the copper-sown regions of Coquimbo and Atacama provinces, a

diminishing number of small mines following rich veins of the ore. Some

of these are little more than holes in the ground, others are worked by

organised companies with good machinery, housing several hundred workers

and owning their own system of transport, as the Dulcinea mine in

Copiapó. But almost everywhere the rich lodes, containing anything from

8 per cent of copper upwards, are disappearing; they have been hunted

for centuries, and although scientific examination of these immense

regions would no doubt reveal many unsuspected rich deposits, the

accessible mines have been worked out to a considerable degree.

No more striking example of the rise and fall of a copper mining centre

is to be seen in Chile than at the deserted city of La Higuera. It lies

just off the road leading from La Serena (Coquimbo) to the iron mountain

of El Tofo, upon a tiny thread of a stream trickling from the steep and

tumbled mountains. The city lies in the shallow cup of an immense

hillside, a patch upon the sandy and orange waste; numbers of black

dumps mark the sites of old copper mines, a score of chimneys stand

among the silent machinery of abandoned mines. At least a thousand

houses make, from a distance, a brave showing.

But at the approach of the infrequent visitor in automobile or on

horseback, the houses are seen to be windowless, empty; nothing moves in

the sun but a stray cur or two, until presently an old woman with a

child at her skirts peeps from a makeshift shelter. The whole place is

dead; not an engine is working, not a gang of workers moves upon the

great spread of properties. The exhaustion of rich veins, difficulty of

competition with metal produced at less expense in a fallen market,

coupled with tangled litigation, has brought back silence to this

strange spot in the mineral-strewn mountain spurs that here crowd down

almost to the sea.

The day of La Higuera is not long past; the mines of this

extraordinarily rich region were actively productive during the present

century. But a similar fate has already closed down very many smaller

groups of mines, as it closed down smelters from Arauco to Antofagasta.

In the prosperous days of the industry last century, when Chile was the

greatest copper-producing country in the world, a big fleet of sailing

ships, copper-bottomed, fast, with a famous list of captains, voyaged

constantly between Swansea and the Chilean coast by way of Cape Horn,

bringing British coal and merchandise and returning with bar copper or

rich ores. A whole colony of Welsh set up the first scientific furnaces

in Herradura Bay, just outside Coquimbo Town, and at a dozen points the

little smelters of Copiapó and Coquimbo were busy; simple methods were

used with profit, and many Chilean residents recall the time when the

stem and stalk of the _cardón_ were always used to obtain a fine clear

fire when annealing copper.

_El Teniente and Chuquicamata_

The most spectacular of the large copper mines in operation today in

Chile is that of El Teniente, situated on the rim of an ancient crater

of the Andes east of Rancagua, the nearest main line railway station.

Sewell, the little town of mining employés, is connected with Rancagua

by the private line of the Braden Copper Company, 72 kilometres in

length, climbing from Rancagua’s altitude of 513 metres, or about 1600

feet, to the mining camp’s height above sea level of 2140 metres, or

some 7000 feet, on the side of a terrific gorge in a tangle of rocky

mountain shoulders and peaks. The main ore bodies lie above the site of

the town and plant at altitudes ranging from 9000 to 11,000 feet, one

peak, El Diablo, on the crater’s edge, rising to 13,000 feet.

[Illustration: Sewell Camp at Night.]

[Illustration: Sewell (El Teniente Copper Mines) near Rancagua.]

The amount of copper ore found in masses on the circular rim was

calculated at the beginning of 1920 as 174,500,000 tons of 2.45 per

cent, with (probably) 92,000,000 tons of 1.91 per cent ore in sight,

with, in all probability, other large deposits in the vicinity. The main

body now under exploitation yields a low-grade ore containing an average

of 2½ per cent of copper in the form of sulphides. The ore is brought

down to the plant by a railway line protected by sheds from the deep

snow falling and standing for six months of the year; is crushed very

fine, treated by the oil flotation system about which so much litigation

has raged, and smelted by three processes during which the copper is

freed from sulphur and iron. A small quantity of gold and silver remains

in the bars shipped to market. Crushing 5000 tons of ore per day, a

production of 100 tons of bar copper is at present possible; plans are

also under way for new mills at a snow-free site on the railway line to

Rancagua, at a spot where the junction of the Coya and a canal from the

Cachapoal River forms a waterfall of 422 feet, yielding hydraulic power

sufficient for the generation of 40,000 H.P. A new power house recently

completed, on the Pangal River, another nearby Andean torrent joining

the Cachapoal and Coya, adds to the equipment by which the Braden

Company contemplates 10,000 tons of daily crushing, operations which

should result in the production of over 70,000 tons of bar copper each

year. Paralyzation of international markets has so far checked the

materialisation of these plans, and during 1921 the plant was operated

at no more than half its capacity. The most prosperous year which the

mine has had so far was that of 1918, when El Teniente produced nearly

35,000 metric tons of bar copper, out of the Chilean total production of

rather more than 102,200 tons: a year later, 1919, the Braden Company

sold and shipped only 10,000 tons of bar copper.

Rancagua, a somnolent little town lying about 70 miles from the Pacific,

has no direct rail communication with the sea, and derives what

liveliness it possesses from its position upon the main line to

Santiago, its chief market, and as the terminus of the Braden Company’s

electrically-operated line to El Teniente or rather to Sewell—which has

an older name, Machalí. At times the activity resulting from the mine’s

access to this town, and this town alone, is regarded without any

pleasure by the townsfolk, for when strike trouble occurs there is

likely to be a descent of discontented workmen and families. Such an

occasion occurred at the time of the disorders at the end of 1919, when

an army of expelled men with their families walked down the narrow track

from Sewell to Rancagua, and although the journey of 72 kilometres

occupied some three days, and the spirit of the strikers was reduced by

their experiences, Rancagua was alarmed and embarrassed by their

presence.

A curious mixture of workers finds its way to this and other mining

camps of Chile. The bulk consists of the hardy Chilean himself,

concerning whose good qualities no employer of intelligence and feeling

has any doubts: he is strong, trustworthy, kindly—but can be roused by

drink or anger to violence. Treated well, he is the best element among

massed groups of workers. But side by side with the genuine and sound

Chilean is not only the malcontent roaming from north to south, from

camp to camp, according to his own will or the exigencies of the Ley de

Residencia, but the “hard case” from half a score of different

countries. The mines are refuges for every variety of man who is down

and out: they offer fertile ground for the sowing of Bolshevik

propaganda or the seed of the I. W. W. of California, whose flag has

been seen more than once flaunted in Chilean streets. The curious

artificial life of the camps, with its poor rewards, the lack of healthy

recreation, of the sight of the horizon, of birds and fields and

flowers, of any interest at all but that of daily toil, lends itself to

the development of grievances.

From Rancagua to Coya the line is open to the public, the pleasant and

famous Baths of Cauquenes lying in the deep green gorge of the Cachapoal

River followed by the track. Casual visitors to the camp at Sewell are

however not encouraged: there is a wary eye kept upon possible purveyors

of such forbidden joys as alcoholic liquors. El Teniente is as “dry” as

managerial care can make it, but the fact that 1200 to 2000 bottles of

whisky and brandy are seized every year by the camp detectives without

putting any end to the attempts of the _guachucheros_ (bootleggers)

appears to prove that enough liquor gets through to make the business

pay. Despite this lack of welcome to the unintroduced stranger, however,

Sewell is hospitable to the visitor, and any accredited person receives

pleasant courtesies.

The rail automobile which takes such visitors from Rancagua to the camp

offers by far the most agreeable form of travel; the bright green fields

and sub-tropical verdure of the sheltered plain country gives way to

deep folds of mountain spurs, and presently, rising into colder air,

vegetation is reduced to a few hardy shrubs and mosses, and the violet

and tawny shoulders of the Andes rise from the banks of the racing

river. When I visited El Teniente the mountains were bare; their rocky

sides, steep, incredibly scored and peaked, took on at sunset and dawn

brilliant hues of rose and flame; but before I left the first snow fell,

transforming the whole country in a single night. A thick blanket filled

the crevices of the sheer rocks, black ridges and points alone emerging;

the piled tenements of the miners, clinging like birds’ nests on the

face of a cliff, were blanched, half-buried, pathless. Communication

with the outer world, by the single line down the ravine to Rancagua,

was actually not much more restricted, but with the blocking of even the

few mountain tracks open in summertime the isolation of the camp was

emphasised.

There are about 2800 miners engaged at El Teniente, but the total

population of the camp, including the workmen’s families, the officials

(chiefly North Americans), employés of railways, stores, etc., is

usually over 12,000. All this artificial town hangs precariously on a

steep slope immediately opposite to the jagged crater where the huge

copper deposits are embedded. Formerly, rows of camp buildings were

built on the mine’s lower slope, but avalanches of soil, rock and snow

necessitated the removal of dwellings to the present site, at the

7000-foot level.

Scarcely a sign of mining operations is visible from across the mountain

chasm, although work has been going on here for at least 200 years.

Owing to the treacherous nature of the country rock and danger from snow

slides during six months of each year, the ore bodies are now attacked

from below; entrances to the intricate system of shafts and subterranean

passages are lost in the rugged crenellations of the old volcano. Yet

the place is honeycombed: one tunnel, starting from the more recently

approached Fortuna side, runs all round the three-quarter-mile-wide

crater; there are innumerable hoists, ore-passes, shafts, galleries and

tunnels, that, with the railways and powerful machinery and gangs of

workers, comprise an industrial town hidden in the mountains.

The second large copper property operated by the Guggenheim interests in

Chile is at Chuquicamata, in the high deserts of the province of

Antofagasta, at about 11,000 feet above sea level. The region has long

been famous for its copper-ore deposits, and small, rich veins have been

worked during and since colonial times.

Most of these high-grade ores have been exhausted near the surface,

whatever may lie hidden in the heart of the region: the principle

adopted by the Chile Copper Company, as that of the Braden, is to attack

large bodies of low-grade ore upon a big scale and in a scientific

manner. But “Chuqui” is an open-air mine situated on a tawny desert, in

extraordinary contrast with El Teniente, and the actual processes

employed are different because the two bodies of ores differ in

composition.

[Illustration: Sewell (El Teniente Mine) in the Snows of June.]

[Illustration: Railway between Rancagua and El Teniente.]

Chuquicamata is reached by way of the Antofagasta and Bolivia Railway.

An all-day ride from Antofagasta Port takes the traveller across the

flaming nitrate pampas, waterless, without a sign of green, winding

upwards until the air is chill and the wind bleak. At sundown, when the

station of Calama is approached, the altitude of nearly 8000 feet has

been attained. In the distance the lights of the mining camp flicker at

a higher level; Calama itself shows a brilliant flare of green, for here

is the river Loa and a little modern town with fields and orchards

superimposed upon very ancient remains. Gold, pottery, and textiles

showing Inca influence have been found in the old cemeteries of Calama.

There is from Calama a small branch line of a few miles running to Punto

de Rieles, and some use is made of this to ship merchandise, etc., to

and from the Chuquicamata camp: but a private line is projected, and a

number of company motor cars traverse the road across the saffron desert

between the main line and the mines, ignoring Punto de Rieles as much as

possible. That ramshackle village is, indeed, little more than an

impudent hanger-on of the big works; practically every little frowsy

shack is a saloon or a gambling-den, more than one of the most

enterprising brothel-keepers being white ex-employés of the camp. Even

were any serious attempt made to operate Chuquicamata as a “dry” camp,

the existence of this terminus-village a mile away would counteract

these efforts.

The great ore bodies of Chuquicamata lie in a range of low, pale-hued

hills rising gently from the shelving, wind-swept, dust-strewn plain;

the chief mass of ore is easily attacked by steam shovels placed upon

four or five different levels cut along the face of the most accessible

slope, a system of light railways carrying the blasted-out rock, often

of the beautiful blue and green tints exhibited by copper sulphates, to

the plant in a shallow saucer below. Here also are the residential

quarters of this isolated camp, where there is neither vegetation nor

water, and a dust-laden wind prevails over the cold, widespread

territory, bordered only by the snow-crowned peaks of such Andean giants

as S. Pedro and S. Pablo.

The Chuquicamata ores are, chiefly, basic sulphates of copper, yielding

about 1.7 per cent of the mineral. The present plant has a crushing

capacity of 15,000 tons per day, which amount should produce 200 tons of

bar copper. As work goes on all day and every day, this production if

sustained would produce in twelve months over 70,000 tons of

electrolytic copper, a quantity which Chuquicamata has not yet recorded;

the mine’s best year so far was that of 1918, when a total of

101,134,000 pounds of electrolytic copper was produced, or about 45,000

tons. The leaching or lixiviation process is employed here: the ores,

crushed fairly fine, are soaked in a solution of copper sulphate for 48

hours, during which period the copper in the introduced ore is drawn

into the liquid. This, when chlorine has been extracted, is poured into

vats through which strong electric currents are passed, causing the

copper to be deposited in metallic form upon the copper sheets suspended

therein. The sheets and the deposited metal are melted and cast into

bars, the process producing a high-grade electrolytic copper bringing

top market prices. Eight hundred million tons of low-grade ore are

stated to be in sight at Chuquicamata, and a plant capable of turning

out 600 tons of bar copper daily is talked of.

Power for operating the Chuquicamata mine, works and camp is derived

from Tocopilla, 100 miles distant on the seacoast, where the company’s

plant is situated. Transmission lines follow the course of one of the

nitrate railways from the port to El Toco, thence running out across the

desert, where a highway also extends. Since no fuel exists in this

northerly region, nor are there water-falls available, the plant uses

petroleum imported from North America to generate the power required.

Chuquicamata employs about 2000 Chilean or Bolivian, with a small

sprinkling of Peruvian, workers, housed under conditions which leave

something to be desired. Many of the huts are made of sheetiron, with

partitions dividing the rooms; the floors are of mud, and an opaque

substitute for glass obscures the window space in too many cases. The

better-class houses are insufficient for all the native-born workers,

and it is not surprising that a degree of discontent has more than once

been fomented in the camp. Daily wages run higher here than at El

Teniente, averaging over nine Chilean pesos per day as against rather

less than eight pesos, but this raised scale does not compensate for the

greater cost of living and other disadvantages. Fuel is one of the

serious difficulties; coal is almost unknown, and the employé’s

womenfolk are seen cooking over a charcoal brazier, or a fire made of an

umbelliferous plant from the mountains (_llareta_), or a few pieces of

wood brought from long distances. A great deal is said by the company of

the Welfare Work Department: its most striking exemplification is in the

big clubhouse which, well equipped and decorated, is however used almost

exclusively by the North American officials and their families.

In addition to the two big mining plants at El Teniente and

Chuquicamata, the Guggenheim interests in Chile include the

old-established smelters at Carrizal and Caldera ports: the latter, in

common with all the smelters founded during the last century, took only

high-grade ores, the average of the mineral accepted here working out at

about 10½ per cent of copper. These works turned out over 5000 tons of

copper ingots in 1918, but were closed in 1921, following the slump in

prices.

Chuquicamata is operated by the Chile Copper Company, a subsidiary of

the Chile Exploration Company; El Teniente is operated by the Braden

Copper Company, which is owned by the Kennecott Copper Corporation, one

of the Guggenheim creations also controlling Alaskan and Utah copper

properties. The Braden Copper Company is stated to have shown a deficit

of $1,500,000, United States, in 1919.

_Pudahuel and Potrerillos_

Geographically speaking, there lie between El Teniente and Chuquicamata

two other large copper deposits acquired by North American interests

since the European War. Between Santiago and the sea lie the Pudahuel

mines, identified at least a hundred years ago, worked for their rich

surface veins, and now owned by the Andes Copper Company, a subsidiary

of the Anaconda interests. Immense masses of low-grade ores, rivalling

those of the Guggenheim interests in extent, are said to be available,

but although in 1920 projects for a big plant were under active

development, work was slackened by depressed markets and the operation

of the deposits is not yet in sight.

A similar fate has befallen the widely heralded plans connected with

another Anaconda property, a huge deposit of low-grade copper ores at

Potrerillos, in the Andean spurs east of the railway junction at Pueblo

Hundido in Atacama province. The main ore bodies lie in a ravine about

12,000 feet above sea level and consist chiefly of sulphides and oxides.

At the time when I visited the region in late 1920 the treatment of

these ores had not been decided upon, and no machinery installed,

although an expensive housing scheme had been carried out at the mine. A

railway between the tiny village of Pueblo Hundido, a handful of houses

in the middle of an apricot-hued desert, and the high-placed mine were

in operation; and a power plant, burning petroleum, had been set up at

Barquito, on the coast a few miles south of Chañaral, the transmission

lines running out across the sandy waste for some 130 miles.

Work on the Potrerillos installation was suspended about the middle of

1921, before a single ounce of copper had been produced. High above the

copper deposits are extensive beds of sulphur, and upon the extraction

of this mineral, needed in certain processes employed in treating

low-grade ores, a certain amount of work has been done.

There are 16,000 mines of copper registered in Chile, covering an area

of 57,000 hectares upon which the mining tax of ten pesos per hectare is

paid. Of the producing establishments, Chuquicamata and El Teniente are

by far the greatest, exporting in 1918 nearly eighty per cent of Chile’s

total production. From the Caldera smelters was shipped a total of 5217

metric tons; Catemu produced 3790 tons; Gatico, 3708 tons; Naltagua, a

French property, 3653 tons. Small quantities came also from El Volcán,

El Hueso, and the Chañaral smelters, also in French hands. For the last

ten years Chile’s output of copper in comparison with the total world

supply has varied between 4 per cent in 1911 and 1912, and 8 per cent in

1918. By far the greatest producer of copper today is the United States,

with a highest record of 880,000 metric tons in 1916, followed by Japan,

shipping her highest recorded figure in 1917, when 124,000 tons was

produced; Mexico, 75,000 tons; Canada, averaging 50,000 tons; and Peru,

45,000.

_Iron_

The story of Chile’s iron deposits and works offers one of the most

curious chapters in her mining history.

The most important of the identified deposits lie in the desert country

north of Coquimbo, the fields at El Algarrobo and Algarrobito in the

Department of Vallenar, Atacama Province, having interested a German

firm some years before the war. No practical results were achieved,

although the region recorded a small export of manganese, from the

Astillas beds, until economic conditions checked these shipments soon

after the beginning of this century. Proximity of quantities of

manganese ore to the iron fields, reported as being of immense extent,

has raised repeated hopes for the foundation of a great industry, but

the crux of the problem is the absence of adequate fuel or water

supplies, and the unproductivity of a sterile territory.

The only works so far established in connection with Chilean iron ores

depend upon what is the most remarkable ferruginous deposit on the West

Coast, paralleled only by the Itabira peaks in Brazil and the iron

mountain of Durango in Mexico. El Tofo, some forty miles north of

Coquimbo town, and fifteen miles from the Pacific, is a round hill

practically composed of hematite ores running over 65 per cent pure, the

quantity in sight totalling at least 300,000,000 tons. The hill stands

among an imposing array of rolling mountains, and both dwellings and

mine workings are daily enshrouded in seas of white mist.

Early in the present century this huge deposit was acquired by a French

company, the Société Altos Hornos de Corral, which mined a quantity of

the ores and transported them by light railway to the little bay of Cruz

Grande and thence to the south where, at the port of Corral in Valdivia

province, a smelter was erected, the first experimental production of

pig-iron taking place in 1910.

The company was fortunate in obtaining from the Chilean Government

various privileges, including the concession of 58,000 hectares, or

about 145,000 acres, of southern forest land, estimated to be capable of

yielding 50,000,000 cubic metres of fuel wood. The Prudhomme process is

employed at Corral; wood fuel alone is required, and an important item

in the calculated income from the operation of the plant is that of the

sale of by-products (charcoal and alcohol) obtained from the wood, in

addition to the output of the blast furnaces. The plant was built to

produce 50,000 tons of pig-iron annually, and would require for this

purpose nearly half a million cubic metres of fuel wood; the

expectations of the company have, however, not been realised, and when I

saw the plant in 1920 it had been inactive for several years. A week of

trial under the auspices of Chilean Government engineers headed by Dr.

Manuel Prieto was undertaken in July of the same year, and an optimistic

report issued: a few noteworthy points are quoted below.

With regard to the cost of production, the report states that the iron

ore costs at Cruz Grande nearly ten pesos per ton (the peso in mid-1920

being worth about one shilling): but the sea freight, unloading at

Corral, and transport to the smelter cost 14 pesos per ton. Despite the

high freight charge, the cost of producing the 345 experimental tons

worked out to only 152 pesos per ton, a quantity of the company’s ingots

finding a sale at 345 pesos per ton. If the calculation is correct that,

working sustainedly, the smelter could produce pig-iron at all in costs

of about 55 pesos per ton, the only problem is that of finding

sufficient local or other South American markets prepared to take yearly

50,000 tons.

To obtain this quantity, the engineers estimate the employment of 70,000

tons of iron ores, purchased from El Tofo at 8.40 pesos per ton. The

famous iron hill is no longer operated by the French Company, for during

the war the deposits were leased to the Bethlehem Steel Iron Mines

Company, and an extensive establishment created. A contract exists by

which the Bethlehem interests guarantee to supply a maximum of 100,000

tons of ore free on board at Cruz Grande to the Société Altos Hornos,

for thirty years.

If the fate, so far, of the Prudhomme smelter at Corral is misty despite

high promise, that of the big installation at El Tofo is no less

clouded. As soon as the Bethlehem Company took possession, large sums of

money were spent on an entirely new installation. Land was acquired at

Cruz Grande, an oil-burning power plant set up, the railway line rebuilt

and electrified, and a loading basin for the Company’s special

ore-carrying steamers, each of 17,000 tons capacity, cut out of the

solid rock. The basin is 500 feet long by 40 feet wide, and on the dock

side are 17 chutes each with a storage space for 20,000 tons of ore,

operating electrically, and built to discharge their contents into 17

hatches so that each ship would be loaded in four hours’ time.

At El Tofo itself electric shovels attack the face of the hill on four

or five levels; the crushing machinery is, like the ore-carrying outfit,

the most modern that Bethlehem’s experience has evolved; strings of

dwellings for workmen and officials stand upon the spur leading to the

iron hillside. The Company’s intention, I was informed by the sole

official left in the silent camp, is to ship the rich ores of El Tofo to

Sparrows Point, Maryland, where special equipment has been built to

unload the Cuban ores imported by the Bethlehem interests. The haul from

Chile is however considerably longer than from Cuba, and although

transit by way of the Panama Canal has brought the Atlantic Coast of

North America into closer commercial touch with the West Coast of South

America, the cost of freight or other equally powerful reasons have

prevented materialisation of the original plans. In more than one

instance, wealthy firms making immense sums of money during the great

war appear to have placed capital in investments far afield from which a

return was not desired for reasons having a certain relation to the tax

collector; and whether or no these considerations had any bearing upon

the acquisition of large copper, iron, tin and silver deposits in

various parts of South America by powerful companies, the fact remains

that vast mineral resources have been added to the properties of a

comparatively small group, and that their active operation may in the

future affect international markets.

Early in 1921 announcement was made to the effect that a concession for

thirty years of 140,000 hectares of forestal land in Llanquihue Province

had been granted to a German firm, for the installation of large iron

works. At the same time the concessionaires, who were stated to be

engineers representing the Krupp firm, secured an option upon the Pleito

iron ore deposits in Coquimbo and another series of mines in Atacama

known as the Zapallo fields. Several Chilean newspapers, including the

energetic _Mercurio_, took exception to the land grant, pointing out the

possibility that Germany was evading the spirit of the Treaty of

Versailles, prohibiting her from manufacturing arms or guns within her

own territory, by setting up big iron and steel factories upon foreign

soil; it was also objected that the territory conceded includes a

considerable part of the forestal reserves left in South Chile. A strip

of woodland two kilometres wide had been reserved by the Chilean

Government between the concession and Lake Todos los Santos, and with

this exception the German grant extended from the lake to the foot of

Calbuco volcano, with water outlet to the Pacific by way of an arm of

the Gulf of Reloncaví. The Petrohue River is said to offer power for

large hydraulic installations, and two other and smaller streams also

run through the grant.

Ore from the north would, according to the plan, be transported to

wood-burning smelters in the south. But difficulties arising from the

claims of property-owners in the conceded tract of forest appear to have

checked the scheme; the concessionaires announced their withdrawal in

early 1922.

The attitude of the Chilean Government is, quite naturally, that it is

desirable for large industrial development work to be promoted: and that

the concession of forestal land given to the German interests would have

been gladly granted to other nationals making similar propositions.

_Gold and Silver_

In early colonial days there was a fair yield of gold from Chile,

chiefly obtained from the sands of the southerly rivers and deposits, as

those of Tiltil, situated in the mountains between Valparaiso and

Santiago, and the shining sands of the river beds of Huasco. It is

estimated that from the days of the first settlement to the end of the

fifteenth century Chile produced 131,000,000 pesos’ worth of gold,

63,000,000 worth in the sixteenth century and 167,000,000 in the

seventeenth.[6] After Independence and the encouragement of foreign

enterprise, production rose in less than fifty years (1801 to 1850) to

226,000,000 pesos (all these calculations being reduced to pesos of

eighteen pence for purposes of comparison), but weakened abruptly when

the deposits of alluvial gold, eagerly sought and worked, became

exhausted by the end of the century. The present yearly production of

gold averages about 2,000,000 pesos, chiefly from the Alhué mines near

Rancagua.

Footnote 6:

Betagh, writing of conditions in 1720, says that there were gold mines

at Copiapó, “just beyond the town and all about the country likewise,

which have brought many purchasers and workmen thither, to the great

damage of the Indians; for the Spanish magistrates take away not only

their lands but their horses, which they sell to the new proprietors,

under pretence of serving the king and improving the settlements.” He

also noted the saltpetre, lying “an inch thick on the ground” in the

north, and says that the country is full of all sorts of mines. About

the year 1709 two lumps of gold found near the Chilean frontier, one

of which weighed 32 pounds, was brought by the Viceroy of Peru, Count

Monclove, and given to the King of Spain. In another washing place

near Valparaiso belonging to priests gold nuggets are found, he says,

ranging from a few ounces to one and a half pounds in weight.

The present production of silver is also a shadow of its former record.

Once upon a time rich silver mines were worked at Uspallata, near the

Pass; these were already abandoned in 1820, when Peter Schmidtmeyer made

his journey. Chile never rivalled Potosí, where travellers of the early

sixteenth century (before the amalgam process was introduced in 1571)

might see 6000 furnaces shining together at night upon the famous hill;

but her mines recorded a splendid total in one quarter-century, 1876 to

1900, when 432,000,000 pesos’ worth of silver was produced. Lowered

international prices and the exhaustion of rich veins so reduced the

industry that in 1915 only 1,000,000 pesos’ worth was produced, and

although later years have reached values of over 3,000,000 pesos, future

great production depends upon new discoveries and scientific operation.

The mining engineer still has much work to do in the deep folds of the

Chilean Andes, while the sands of the islands south of the Strait of

Magellan have yielded, and are likely to yield again under good

management, rich harvests of gold.

_Coal_

The coal industry of South Chile owes its greatest impetus to the energy

of Matias Cousiño, who organised development dating from 1852; but

mining for commercial purposes began as far back as 1840, when a field

near Talcahuano began to supply the needs of Chile’s first steamship

line, forerunner of the present Pacific Steam Navigation Company.

The entire region of Chile from Concepción southwards to the Territory

of Magellanes is dowered with coal deposits, but the richest region is a

series of mines strewn for one hundred miles along the coasts of the

provinces of Concepción and Arauco. Wealth in coal has brought a large

number of factories and mills to the prosperous city of Concepción, was

a factor in the establishment of the chief naval station of Chile in the

fine bay of Talcahuano—the best-sheltered port of Chile—and developed

smelting and metal-refining works at Tomé, to the north of Talcahuano,

and in Coronel and Lota, farther south.

Many coal beds known to exist in the Chilean south are unworked as yet

owing to lack of transport in undeveloped regions, but in addition to

the big mines in operation in the rich regions of Arauco and Concepción,

a deposit is being worked near Valdivia (the Sociedad Carbonifera de

Máfil) while the Loreto beds are also under exploitation in Magellanes

Territory, near Punta Arenas. The product of some of the Chilean mines

is of excellent quality, but the product was, before the war,

insufficient in quantity and not of a grade rendering it suitable for

all railway and steamship uses. It was therefore supplemented by hard

steam coal imported from foreign countries; before the outbreak of war

in 1914 British mines were shipping about 1,000,000 tons per year to

Chile, Australia sent about 450,000 tons, and the United States sent

small quantities that varied between 3000 and 100,000 tons. The supply

from Welsh and Australian mines was, during the war, diminished almost

to vanishing point, and at the same time imports from North America rose

to three or four hundred thousand tons, and the Chilean home production

was immensely stimulated.

Chile’s producing mines are fourteen in number, twelve of these lying in

the Arauco region; in 1909 production amounted to less than 900,000

tons, but had risen to over 1,500,000 in 1918 and 1919. Eleven to twelve

thousand men were then employed, as against 9000 in 1911. The most

important operators are the Compañia de Lota, Coronel y Arauco, a

combination owning four mines and tributary railways, employing 3670

workers, and producing more than half a million tons of coal yearly.

Next comes the Cia. Carbonifera y de Fundición Schwager, also situated

at Coronel, employing 2800 men and producing over 400,000 tons; the only

other company with an output of over 200,000 tons annually is that of

Cia. Carbonifera Los Rios de Curanilahue, employing 1500 men. Both here

and in the Lota mines the plant is operated by hydro-electric power, and

throughout the Chilean fields the standard of machinery and equipment is

high. The general width of coal seams operated in Chile is from fifty to

sixty inches.

The wages paid are about the same as for other mining and industrial

work in Chile, ranging from five to seven pesos (paper) per day. The

Coronel mines, many of which are deep-seated and run under the sea, pay

at a higher rate, averaging eight and a half pesos, but the Loreto mine

in Punta Arenas, where workers are scarce, pays its employés nearly

twelve pesos a day.

Chilean coal miners work only 280 days in the year, but conditions are

not always acceptable and there have been from time to time serious

strikes; the last, occurring at the beginning of 1922, was said to be

mainly fomented by the considerable foreign element.

Among the remaining coal companies of importance are the Cia.

Carbonifera de Lirquen (Penco); the Cia. El Rosal (Concepción); and the

Cia. Carbonifera de Lebu, owning three mines and a railway.

The price of Chilean coal responded to war conditions. In 1914 it stood

at about 13 paper pesos per ton; in 1915 it rose to 25 pesos, and thence

steadily climbed to 57 pesos in 1917, to 70 in the following year, and

to 85 pesos in 1919. With the cessation of hostilities these prices,

which were comparable with those of foreign imported coal, dropped; at

the same time demand fell, fewer vessels requiring bunkering, not only

because older fuel depôts became again available but because the

extended use of the Panama Canal by international vessels is making

itself felt more keenly. South Chile found its ports recording many

fewer foreign vessels in 1919 and 1920 than in former years.

[Illustration: Curanilahue Coal Mine, Arauco Province.]

[Illustration: Dulcinea Copper Mine, Copiapó Province.]

[Illustration: Chuquicamata Copper Mine, Antofagasta Province.]

In the Lonquimay region, along the valley of the upper Bio-Bio, are

deposits of petroliferous shales, upon which a big industry will some

day be founded. The most hopeful reports suggest the presence of a great

oil-bed, but it is undisputed that the superficial layers or _capas_

yield 5 to 6 per cent of petroleum, the lower part of the bed yielding

12 per cent. In Scotland a percentage of 5 per cent is considered good

enough, and the development of the prosperous North British industry

could no doubt be duplicated in Chile—with adequate transport

facilities. Manifestations of petroleum have been also identified

farther south. Don Salustio Valdes, an enthusiastic Chilean mining

engineer, considers that the most promising deposits are in the Province

of Llanquihue, at Carelmapu, where the Cia. Petroléos del Pacifico has

acquired territory; in Magellanes Territory, near Punta Arenas, where

the Sindicato de Petroléo de Agua Fresca is operating; and on Tierra del

Fuego, upon the north shore of Useless Bay. Natural gas escapes in

considerable quantities in all these regions.

Borax is produced by a British company from a wonderful and beautiful

lake-like deposit at Ascotan, on the Antofagasta and Bolivia Railway

almost at the Bolivian frontier. Nearly half the world’s supply comes

from Ascotan, the pre-war export of Borax Consolidated averaging 40,000

tons, a quantity subsequently reduced owing to the imposition of a heavy

export tax and high freight rates. The deposit lies at an altitude of

over 12,400 feet with temperature ranging from 24 degrees below zero

(Centigrade) and 32 degrees above, so that this well-organised company

works under climatic difficulties accentuated by high winds, rain and

snow.

Sulphur is abundant in Chilean mountains from north to south, a few

thousand tons being annually produced, chiefly for the use of the copper

mines; lead, cobalt, nickel, aluminium, graphite and bismuth also exist

in the highly mineralised north; deposits of manganese are worked on a

small scale near Merceditas in the interior of the Province of Atacama.

CHAPTER VIII

AGRICULTURE

_Area under Cultivation.—Oases in the Desert.—Farming in Central

Chile.—Vineyards.—Wheatfields, Orchards and Sheep Farms.—Irrigation

Canals._

“Agriculture in Chile and Buenos Aires has formed their population,

while the mines of Peru have extinguished almost all the Empire of the

Incas.” So wrote David Barry in his preface to the _Noticias Secretas_

in 1826.

I think that no one who knows Chile today will dispute the suggestion

that her fertile soil has chiefly contributed to her social well-being.

It has brought white European settlers, able to rear families in a

magnificent temperate climate; it has offered permanent homes and not a

temporary field for the fortune-hunter. There is a spring of life about

the farming region of Chile, a sense of energy, health and freshness

that is extraordinarily exhilarating. Much of this land is still but

newly opened: one may pass through hundreds of miles of land where the

tree-stumps of the primeval forest still stand among the vigorous corn,

where the farmhouse is but an impermanent thatched hut. But the dark

rich earth, the lusty crops, the blossoming orchards and hedges, the

green pastures with their sleek cattle, create a scene of genuine

content. The holdings may be new, yet they are plainly homes. Chile

possesses mines, but they drain rather than create populations; growing

industries—weaving factories, grain mills, and a score of new

employments which tend to concentrate wealth and culture; but it is in

her farming lands that the truest cradle of the race, the frankest and

strongest people, the most cheerful spirit, is found.

In actual figures the amount of land under cultivation in Chile is not

immense, yet the farmlands produce not only sufficient grain and fruits

to serve the needs of the inhabitants of both fertile and arid regions

but also ship a surplus to the exterior markets of Peru, Ecuador and

Bolivia.

Government statistics add up the total of land assigned to “agricultural

properties” or farms to 18,000,000 hectares, or about 45,000,000 acres.

But not all this land is under cultivation. The area devoted to cereals,

beans and peas, potatoes and vegetables, is reckoned as about 4½ per

cent of all Chilean territory, or 750,000 hectares, equal to two and a

half times as many acres; vines and orchards, 111,000 hectares; planted

woodland, 32,000 hectares. The cultivated pastures (grass, alfalfa,

clover, etc.) attain the figure of about 520,000 hectares; while there

are nearly 7,000,000 hectares of natural pastures. Twenty-two per cent

of all national territory is ascribed to forest and woodland, much of it

either utilisable for industry or at least covering the ground with a

rich vegetable detritus of great future value to the farmer. Twenty-nine

per cent of Chilean land areas is regarded as completely sterile, or at

least negligible under present conditions.

This proportion of uncultivated or barren country appears high at first

sight, but three great areas must be practically excluded from possible

cultivation, although unlikely and long-neglected regions have of late

triumphantly proved their worth as sheep pastures. The great,

diversified and topographically fantastic Territory of Magellanes,

comprising 71,000 square miles, has little to offer to the

agriculturist.

Sheltered country as that in the vicinity of Punta Arenas produces

certain field crops, while the limit of cultivable land both in Eastern

Patagonia and upon the islands of Tierra del Fuego, Navarin, Brunswick,

and other smaller groups, has not been reached with the establishment of

sheep farms; but the barren and rocky lands on the borders of many

channels, where blue glaciers creep to the edge of the water, and that

part of the Strait region where the freezing gusts of the “williwaws”

bend the heads of the drenched forests, is outside consideration until

the climate changes.

Also beyond the vision of the farmer are the widespread, sun-scorched

and waterless districts of the three northerly provinces of Atacama,

Antofagasta and Tarapacá, covering more than 95,000 square miles of

land: as well as most of the 9000 square miles of Tacna, whose final

ownership is still undetermined. The third considerable region which is

apparently destined to remain uncultivable is that of the rugged and

broken foothills and heights of the Andean slopes of eastern Chile,

where nothing lives but wild mountain birds and the hardy guanaco.

Reckoning in hectares, Magellanes counts an area of 3,214,000 hectares,

or about 8,000,000 acres: yet only 133 hectares were under crops in

1919. At the same time the Island of Chiloé, with a surface of about

8600 square miles, had only 75 hectares in cultivation. As between the

too-dry lands of the north and the too-rainy country of the south,

agricultural advantages lie with the former, for wherever irrigation is

possible the natural disabilities are at once overcome, and the rainless

belt becomes magnificently fertile. The agriculturist of the Chilean

lands below Puerto Montt is seldom able to risk planting a cereal crop,

for even should the heavy rains not affect the fields adversely, the

grain must be gathered green lest wind-storms should blow the ripened

seed away. However, the discovery of the last few years that certain

types of sheep (usually cross-bred Romney Marsh varieties similar to

those reared in the Falklands) thrive in Chilean Patagonia, Tierra del

Fuego and other once-despised Magellanic lands, has brought about an

agreeable transformation in the agricultural industries, as in the

revenue and population of the far south.

_Oases in the Desert_

Perhaps it is partly because they stand out in such sharp contrast with

a barren background that such northern valleys as that of the Lluta,

with pretty Arica town at its mouth, appear to be of such enchanting

loveliness. In other regions, burning ochre deserts stretch away in

dazzling sunlight, and suddenly one comes upon the tender lime-green

fields of the Copiapó River; the emerald maize and alfalfa of the Loa;

the Pica Vale, a strip of deepest green studded with millions of the

golden globes of ripe oranges; or the exquisite Elqui and Huasco in the

month when loads upon loads of grapes, peaches and figs are ripe. In

every dip of the land where a stream flows down from the Andes, gardens

and orchards bloom; careful intensive cultivation is the rule in north

Chile, where the farming industry has received an impetus since the

nitrate fields swarmed with industrial camps, ready to pay big prices

for every pound of fresh fruit or vegetables.

This cultivation of orchards in the desert is reviving enthusiastically,

but is no more than the restoration of ancient arts; before the day of

Spanish occupation irrigation was extensively practised, and we know

from the large burial grounds discovered near what are today small

villages that certain parts of the arid country formerly supported

considerable populations—as at Calama, at Chiu-Chiu, or at Arica itself.

The desolation of former cultivated districts is sometimes ascribed to

the war-expeditions of the Incas, sometimes to the destruction of

irrigation works by the Spaniards, sometimes to the action of

earthquakes which have diverted rivers from their original courses, and

is certainly to be attributed in many cases to the character of the

streams, rushing from mountain heights with tremendous force, washing

away fields and defences, and leaving wide, stony and sterile beds to

mark their ruinous course.

Tacna province, with Arica as the port and Tacna City as the capital, is

looked upon hopefully today as a source of supply of sugar and cotton

for Chilean mills; both these commodities are now imported. With

sufficient water, this little province of 40,000 inhabitants can produce

also enough tobacco for Chile’s internal consumption. The Sociedad

Industrial Azucarera de Tacna, formed at the end of 1920, hopes to plant

8000 hectares in sugarcane, to obtain from the harvest of each hectare

ten tons of sugar, and thus to fill the Chilean demand for 80,000 tons

of sugar per year. Apart from this enterprise, whose results are awaited

with interest, a number of small landholders already produce a little

sugar, and find a ready sale for the almonds, olives, walnuts, peaches,

figs, green fodder and vegetables cultivated. The splendid cotton of

Tacna province is eagerly purchased by South Chile’s mills, but the

export is small as yet, amounting only to a few hundred tons annually;

there is every inducement to immense extension of the cultivation of

this fibre, and when present plans to canalise the waters of the Caplina

River and of Lake Chuncara are completed, the little province will

multiply its 230,000 hectares now under cultivation.

Tarapacá Province is curiously situated as regards cultivation; to the

north a few rivers reach the sea, as in Arica, but from Pisagua

southwards the great nitrate beds lie like an immense dry lake parallel

with the coast, and a dozen little rivers flowing down from Andean

foothills disappear in the desert sands long before they reach the

eastern edge of the nitrate pampas. But each one of these rivers is a

green ribbon of fertility, and Tarapacá ships its luscious oranges to

the nitrate camps, and by train all the way to Pueblo Hundido in

Atacama.

Antofagasta’s one considerable river is the Loa, subject to strong

floods, but irrigating small fields all the way. There are but 121

farmers in the whole province of 46,000 square miles, cultivating less

than 3000 hectares. Sites of old pre-Spanish towns along the Loa’s banks

are proof of centuries of utilisation of its waters.

Copiapó possesses two charming oases in the desert. The first and most

important is the ancient town of Copiapó, long famous for its copper

mines, but depressed by the drop in metal prices after the close of the

European war. The second is Vallenar, whose bright setting of little

fields, peach trees and vines, is a joy to the eyes after a journey

through the copper country. Neither region produces enough foodstuffs

for its own maintenance, and there is no agricultural surplus to sell.

The whole province of over 30,000 square miles has less than 20,000

hectares under irrigation.

Coquimbo Province is generally regarded as the northern limit to general

farming; it is a small province, including only 13,500 square miles,

shouldered by the Andes that here push down within eighty kilometres of

the Pacific Ocean, but it is prosperous and enterprising. The population

is about 250,000, of whom 4500 are farmers; of the remainder the great

bulk are interested in mining small veins of copper, an industry which

has been handed down for generations as a kind of technical inheritance

in northern Chile. I know a Coquimbo farm, excellently managed, situated

a few miles outside Coquimbo Port and its older sister, La Serena, which

is a revelation of what can be done under the difficulties attendant

upon almost constant drought—for the rainfall does not usually attain

two inches in the year—and a temperature which remains steadily at about

60° Fahrenheit. The livestock were, in the period of greatest heat,

driven eastwards to the hills, many landowners upon the coast following

the system of buying supplementary land in the cordilleras in the hope

of finding at every season a few patches of pasture. John McAuliffe is

one of those Britons who identify their fortunes with those of Chile,

and forty years’ residence, with experience of shipbuilding, mining and

farming, has made the genial owner of San Martin a resourceful producer

and distributor.

Coquimbo Province possesses 1,500,000 hectares of land devoted to

agriculture, of which 20,000 are irrigated and about 25,000 are

“artificial” pastures. Vineyards on a commercial scale, orchards of figs

and other sub-tropical fruits, as well as fields of wheat, maize and

barley, produce a surplus exported from Coquimbo.

_Farming in Central Chile_

South of this province Central Chile begins. Aconcagua, Valparaiso,

Santiago, O’Higgins, Colchagua and Curicó are among the most delightful

regions in the world, with a perfect climate, fertile land, access to

markets, and employés who are not yet impressed with the views of the I.

W. W. which have troubled the waters of Chilean industry so effectively

during recent years. It has been the writer’s good fortune to see

something of the life upon several estates devoted to general farming

and livestock, upon fruit and alfalfa farms, and upon one of the finest

vine-growing and wine-making properties in Central Chile. I cannot

imagine a more agreeable life than that upon these estates.

In the first example, the lands are situated upon the Aconcagua River,

extending from this barrier in a half circle enclosed by a horse-shoe of

wooded hills. The river is a typical Chilean watercourse, widespread,

turbulent, spreading into five or six branches on a wide and stony bed.

When the snows melt and the stream comes down with great force, it is

almost impassable, although the sturdy Chilean horse, extremely

intelligent and well trained, will always struggle across safely so long

as the reins are left loose. The farm includes about 250 acres of

irrigated land and about 2000 acres of hillside. The jealously-watched

water rights are regulated by a set of special laws, and as there is

just about enough water for the service of the farms along the

Aconcagua’s banks, with none to spare, water-stealing is a black crime.

Quebrada Redonda is a mixed farm, upon which a couple of hundred sheep,

as well as cattle and horses, are fed: the fields are brilliant with

lucerne, wheat, beans, barley and Indian corn. In the kitchen garden are

peaches, walnuts, artichokes, oranges, pears, plums, celery—in fact, all

fruit and vegetables that grow in temperate or sub-tropical zones. The

lawn edges are gay with roses and iris, chrysanthemums and lupins. All

the flat lands are fertile: no fertilisers are needed, but leguminous

crops are grown in rotation with cereals. The milk of the Chilean cows

is first-class in quality and produces cheese—made daily by the simplest

process—that finds a ready sale in local markets.

The hill lands, invaluable upon a Chilean farm, offer plenty of food for

the young cattle in winter. Within a few days after the first heavy

rains the brown slopes turn green, and the cattle are driven up to crop

the new carpet of young grass. The woodland yields sufficient timber to

supply the domestic needs of the _patrón_ and the _inquilinos_ (farm

hands working upon a special system), but there is no growth of big

trees. The graceful, evergreen quillay is the base of quite a

considerable industry, for the bark is highly saponaceous, and, stripped

and dried, is sold in all the public markets in Chile. The maitén,

another thick little tree, is also cut for firewood; the litre offers

useful lumber when of sufficient size. Down by the water stand rows of

familiar willows, their branches draped with the scarlet flowers of the

parasite quintral; and on the slopes are scores of bunches of blue-green

dagger-shaped leaves enclosing a stalk crowned with a violet

flower-head. This is the chagual, whose young stem is eaten in

springtime, a lovely period when pink wild lilies clothe the rocky

slopes and a myriad flowering trees and shrubs scent the clear air. Many

of the aromatic leaves and barks for which Chile is famous are used to

make medicinal decoctions, beloved of the working classes.

Adjoining this property is another fine farm, also operated by an

energetic country-loving Briton; here lemons and other citrus fruits are

grown in well-kept orchards and the fields are given over to alfalfa and

hemp, grown in rotation with root crops. Chile has no warmer advocates

of her attractions than the owners of Quebrada Redonda and its

neighbour, but both farmers lay stress upon the need for personal

attention to every detail and constant residence upon the property, even

with the best _mayor-domo_ performing the duties of a farm bailiff or

estate steward. It is also emphasised that Chilean lands are not for the

worker without capital. In this coveted region, in fact, costs run high,

as the following data, owed to Mr. Geoffrey Bushell, demonstrate.

The average cost of good irrigated land, near the railway, in the

Central Valley (from Aconcagua to the Maule) is about 4000 paper pesos

per _cuadra_ of some four acres: or say £50 per acre with exchange at

twelve pence to the peso. To this should be added £50 per cuadra for the

purchase of horses, cattle and implements, and another £50 per cuadra

should also be allowed for fencing, drains, repairing or putting up

buildings, expenses frequently renewed even when a farm is in good

running order. Land in less accessible regions is less costly, but

transport in Chile depends upon railroads, since the highways are out of

action in the rainy season, and it is worth while to avoid trouble by a

greater initial outlay. No farm is cheap if its products cannot be sent

to market.

When the estate is in good running condition, returns come quickly and

markets are excellent; a profit of 12 to 15 per cent upon invested

capital is usually expected, but may rise to 20 per cent. Alfalfa can be

cut at least three times a year, and always finds a ready sale:

potatoes, wheat and barley, beans, hemp, aji (red pepper), all do well

and are good selling crops. Potatoes, for example, yield 300 bags (of

100 kilos each) to the cuadra, and bring fifteen to twenty pesos per bag

in the Valparaiso markets.

Animals can be kept out of doors all the year round, and the

stock-fattening and dairy businesses are both good. Fruit cultivation,

apart from such good carriers as lemons or oranges, is not recommended,

since quick access to markets is lacking and selling organisations do

not exist.

In order to buy, stock, equip and operate a farm and to wait a year for

returns without inconvenience, a farmer taking up land in Central Chile

should have £15,000 ($75,000 U. S. currency). He needs at least fifty

cuadras, or 200 acres, of irrigated land, as well as some wild bush,

preferably hill country. Workers are never abundant in South America,

but the _inquilino_ system retained in Chile tends to keep generation

after generation upon the soil, and no good farmer lacks help in spite

of the higher wages offered by the mining industry. Attacks have been

levelled against the inquilino system, yet it works well in practice

when estate owners are just and a personal interest taken in the

worker’s welfare. The men live upon the estate with their families, are

given a cottage rent free, a strip of land of generally one or two

acres, and sometimes the use of ploughs and other farm implements; a

horse and a few domestic animals are usually owned. One pound of bread

and one pound of beans are given daily, cooked if so preferred, and one

peso per day in cash. On the farms visited by the writer the houses of

the farm hands were sound and clean, and the families appeared cheerful

and content; I heard warm praises of the Chilean worker from employers.

The life of a farmer in Chile, it was generally agreed, is pleasant;

constant attention is required, but rewards are sufficient and the

delightful climate compensates for many difficulties. The open-air life,

constant horseback riding, and the sense of freedom in a country not too

densely populated, attract many Europeans, lamenting nothing more than

the absence of certain forms of sport. There is fair fishing, for

instance, in the fast streams from the Cordillera, but there are no

sporting fish; no hunting, but good shooting in wooded or open country.

The partridge and tortolita fly well and fast, and give almost as good

sport as grouse; snipe and quail are also to be found in the central

regions.

_Vineyards_

In this same region of the Aconcagua Valley are some of the best

vineyards and wine-making estates in Chile. The great Panquehue

property, one of the Errazuriz estates, is a magnificent sight with its

endless rows of trained vines bearing white and black grapes, stretching

across the rich brown lowlands to the foot of the Andean spurs, where

all cultivation ceases, and where valuable peat has been identified in

vast stretches. Here are 2000 acres devoted to viniculture, and from the

fruit of the low-trimmed branches is produced each year 2,000,000 to

3,000,000 litres of wine, chicha and brandy. Chilean red and white wines

are of sound and pleasant quality, superior to the Mendoza brands, owing

to greater suavity; some of the native-made “Sauternes” are practically

indistinguishable from the French original. It is astonishing to realise

the simplicity of this ancient industry of wine-making, for although

Panquehue has today a machine crusher, and a mechanical press, an

automatic bottler, etc., there is something primitive and ample in the

process. The _bodegas_ (cellar warehouses) of the estate are immense

vistas of cool stillness, the huge vats looming high in the

semi-darkness beneath a succession of great arches. This estate, with

its enormous and luxurious house of the owners, its settled population

of workers, its self-supporting crops and fine livestock, has almost a

feudal atmosphere. Altogether, Chile has 90,000 hectares, or say 225,000

acres, under grape culture, about ten times as much as California in her

pre-prohibition days.

While these vineyards of the central provinces are in very fine

condition—extending west from Santiago to within sight of the sea on the

beautiful slopes towards Valparaiso—the real heart of the grape country

is farther south, where also lie the great food-producing regions of

Chile. The great grape country is spread over Curicó, Talca, Maule,

Linares, Ñuble and Concepción provinces, while the wonderful valley of

Lontué is one great vineyard, with over 10,000 acres under cultivation.

Estates follow in a long succession, some able to boast of model

villages for workers and thoroughly up-to-date methods of wine-making.

The product of Lontué is sold not only throughout Chile, but is shipped

to Argentina, Peru and Colombia. “Dry” laws in Chile, advocated by Dr.

Fernando Peña, do not seem likely to cause the extinction of viniculture

here, if only for the reason that the use of wine is scarcely ever

excessive among the native workmen, or in the educated classes. The

industry is extremely important to Chile, is chiefly in the hands of

Chileans-born, and represents a very large investment; these

considerations would not, however, preserve the vineyards ultimately if

the effect of their existence were pernicious. The facts appear to be

against any idea of this kind.

South Americans in general inherit the temperate habits of the Latin,

and when strong liquors cause trouble amongst such closely crowded

groups of workers as one finds in the northern mines, badly made spirits

and not wine are to be blamed. Against the disembarcation of imported

spirits the workers of the north rose in arms, in 1920, procedure echoed

in Punta Arenas a little later, and an investigator sent to the spot by

the _Mercurio_ of Santiago reported that for every pint of good southern

wine sold in Taltal, there were twenty pints of noxious alcohol—much of

it made on the spot in amateur stills.

_Wheatfields, Orchards, and Sheepfarms_

Cereal culture, whether of maize, wheat, barley or other grains, exists

throughout Chile, but from Coquimbo to Chiloé are the great fields of

_trigo blanco_ and _trigo candeal_—the latter, hard wheat, grown chiefly

upon 20,000 acres in the north of the Central Valley, and the former

upon 1,000,000 acres, chiefly in the provinces of Maule, Linares, Ñuble,

Concepción, Bio-Bio, Malleco, Cautín, Valdivia and Llanquihue. The total

wheat crop is 5,500,000 metric quintales, worth 16,000,000 pesos. It is

in the great fertile region of the south that one finds the largest

number of small farmers, for most of this agricultural country has been

opened during the last fifty or sixty years, and no great ancient

estates exist. Valdivia and Llanquihue were developed mainly by the

efforts of settlers from Central Europe in the middle of last century,

while old Araucania was not finally opened to white settlers, whether

foreigners or Chileans, until the punitive expedition of 1881 broke down

the frontier for ever. Land was parcelled out in comparatively small

estates, and as a result Chile is fortunate in counting about 97,000

land proprietors; of these, 65,000 owners farm less than 50 acres each;

25,000 others farm holdings of less than 500 acres; 5000 estates are

between 500 and 2500 acres in extent; and only 465 proprietors are

possessed of estates totalling over 12,000 acres.

To create these southerly farm lands great forestal areas have been

necessarily denuded, and a good deal of work is required to keep down

the luxurious growth of creepers, wild bamboos, ferns and undergrowth.

But the southern agriculturist is spared the constant preoccupation of

the northerner as regards water supply. Chile has little marsh or swamp

country today, although the presence of large peat beds is eloquent of

ancient bogs, but the south is very well watered. Too well watered, in

fact, in some localities, Valdivia’s 115 inches of annual rainfall being

well outdistanced by Chiloé’s 134 inches; the genial softness of the

climate saves these localities from the unusual unpleasant effects of

such heavy rainfalls, for if it is almost true that in Valdivia it rains

every day, it is also true that the sun shines every day.

Between the Maule River and Lake Llanquihue the whole country of Chile

is like familiar ground to the traveller from well-tended countries of

Western Europe, an impression specially keen in Chile’s autumn, March

and April. Orderly apple and cherry orchards stand bordered by hedges

hung thick with ripening blackberries; long level fields show the tender

green of clover. Beside the rose-clustered farmhouse are neatly built

stacks of wheat straw; in the meadows are fine sleek cattle and

well-groomed horses. The fenced garden is full of flowers, of vegetables

and herbs, and behind the house is a grove of walnuts and chestnuts. The

farmer riding along a muddy road has the ruddy cheeks of the temperate

zone, and the only strange note is struck by his poncho and long

jingling spurs. Rows of tall poplars, burned golden, edge the fields. As

background to this ordered fertility there rise to the east the shining,

silver-white heads of volcanos—Llaima, Villarica, or Antuco, or, farther

south, Osorno and Calbuco—and from the lines of dark forest there run

deep and silent rivers. The south is remarkable in possessing three

navigable rivers, the Toltén, Imperial, and Valdivia; the Bueno is also

traversed by small steamers in part of its course from Lake Ranco and is

a channel for farm produce.

Wheat is harvested in the south at the end of March, but in May apples

and pears are still being gathered and nuts are ripe. The big crops of

strawberries, plums, and cherries are sent to jam and conserving

factories, South Chile supplying the whole of the West Coast with canned

fruit, while the export of fresh fruit to New York and London is a new

industry with bright prospects.

South of Temuco the land is seen in three stages. Belts of primeval

forests close down to the border of railway track or road, a green wall

matted with the wild climbing bamboo, the trails of scarlet and purple

fuchsias, or the slender vines of copihue with its beautiful rosy bells.

Native beech and lingue, their feet deep in ferns, stand as a solid

barrier, feathering at the top into thickly leaved branches; the wild

witch-hazel’s sweetly scented, creamy flowers break from every thicket.

That is the first stage: the next is encountered where a settler has

recently broken ground, and corn springs between the blackened stumps of

burned trees. A log hut, thatched, windowless, stands at the side of the

clearing. In the third stage all signs of violence are gone; the forest

is conquered, the cleared space smoothed and ploughed, the homestead

enclosed with a neat wooden fence. Rows of young fruit trees display

slim twigs beside the farmhouse, and this already has its chicken-run,

dove-cote, stable and pleasant meadow for horses and cattle. A chain of

sawmills is seen in this lately redeemed country with its thick reserve

of forest lands.

Between Valdivia and Puerto Montt lies a great potato-raising country;

the land flattens out from Osorno to the edge of Llanquihue Lake, and

here hundreds of well-managed farms flourish; a large proportion of the

settlers possess German names, and their forebears brought with them,

seventy years ago, the craft of the farmer. Today the population is

Chilean. Farther south, upon the island of Chiloé, another group of

foreign origin operates farms beside the native Chilotes: after the

South African War ending in 1903 a number of Boers came here and, in

spite of the marked difference between climate and conditions of the

Transvaal and South Chile, remained and prosper.

Chile feeds about 5,000,000 sheep, of which number 2,000,000 have been

raised in the far south, in the Territory of Magellanes; 2,250,000 head

of cattle are distributed throughout the country—Tarapacá and

Antofagasta owning about 600 head between them, while Tacna has 2500—but

by far the largest number, 2,000,000, are grouped in the provinces below

Valparaiso. The country supports also about 400,000 horses, 55,000

mules, and 300,000 pigs. The wool clip of Chile averages 170,000 metric

quintals, four-fifths of the total coming from the Territory of

Magellanes.

Among the small farming industries of Chile are beekeeping and

flax-production; a little olive oil is made in the more northerly

provinces, and the dried raisins, peaches and apricots of Huasco have

earned much more than local fame.

The rise of sheep-farming and allied industries in Magellanes Territory

is one of the great surprises of the century. Punta Arenas itself,

founded on paper by President Bulnes in 1843, and tentatively settled in

1851, was for a long time nothing but a penal settlement: but a rising

of the convicts drew attention to the region, the discovery of gold

reefs and coal beds, as well as petroliferous shales, brought a number

of enterprising people, and by 1897 the first flock of sheep, brought by

the governor Dublé Almeida twenty years previously, had multiplied so

fast that the territory counted 800,000 as the total flock. It was

difficult to find a use for the sheep, and by way of solving this

problem the first packing-house was established in 1905 at Rio Seco,

about ten miles from Punta Arenas.

Four _frigorificos_ are now in operation, at San Gregorio Bay, at Puerto

Bories (Ultima Esperanza) and at Tres Puentes, in addition to the first

established. During the war the packing-houses exported meat products

(frozen and conserved meat, fats, etc.) worth £1,000,000 sterling

annually, and large fortunes were also made by the sheep-raising farms

when the price of wool soared from sixpence per pound to twenty-two

pence. The largest of the companies running sheep on a big scale is the

Sociedad Explotadora de la Tierra del Fuego, which started operations in

1893, has a capital of £1,800,000, raised in London, and owns over a

million sheep.

A fifth packing-house built at the close of the war and already in

operation is situated in Puerto Montt, is British-financed and equipped,

and aims at helping the situation of this part of the south, possessing

a surplus for northern markets but lacking sufficient transportation for

live animals.

_Irrigation Canals_

Irrigation canals have been in use in Chile for hundreds of years, those

constructed by private estate owners watering a total of over 3,000,000

acres. Several of these are ambitious constructions, those diverted from

such well-supplied rivers as the Maipo and Aconcagua extending in

certain instances for over one hundred miles.

The great O’Higgins built a canal ensuring Santiago’s water supply 150

years ago: a continuance of this wise policy of Government direction in

a matter of national importance has been advised by many thinkers in

Chile, but it was not until the closure of nitrate enterprises in 1914

forced the Government to find employment for surplus workers that

irrigation laws were added to the Chilean code and bonds issued to

finance the construction of four important canals. In early 1915 the

creation of a new section in the Public Works Department inaugurated a

period of great activity in the work suggested, and by the beginning of

1921 the Manco Canal drawing water from the Aconcagua was already

completed, its forty-five miles of main length bringing water to nearly

8000 acres of land. The cost of construction was 2,000,000 pesos paper.

At the same time work was begun on the Maule Canal, drawing water from

the Maule River; it is 115 miles long, irrigates 113,000 acres, and was

built at a cost of 8,500,000 pesos; its completion represents an

engineering feat upon which Chilean engineers are to be congratulated. A

fall created by one of the branches of this canal offers 20,000 h.p. to

users of hydraulic force in Chile.

The Laja Canal diverts water from the river of this name, has a main

length of 25 miles with distribution canals of 240 miles, and is lined

with concrete for ten miles of its course where sandy soil is traversed.

It is calculated that this canal serves 110,000 acres of land. The

Melado Canal, drawing water from the river of the same name, is fifteen

miles long, and irrigates 75,000 acres.

The Public Works Department also plans construction of canals drawing

water from the Culenar River, to irrigate 12,000 acres; from the

Nilahue, to irrigate 25,000 acres; and from the Colina, to irrigate

10,000 acres, while businesslike schemes for damming and utilising the

water of seven of Chile’s string of snow-fed mountain lakes in the south

are also under way. All this work is due for completion by 1925, while

studies of the strange rivers of the north that flow from the Andes and

bury themselves in the sandy deserts long before the sea is approached

have also been energetically carried on, with a view to salving these

much-needed waters. Don Carlos Hoerning, Chief Engineer of the Chilean

Reclamation service, says that the wonderful northern climate and soil

respond to irrigation by producing crops five times as abundant as the

normal rate in the south, justifying the expense of pumping and piping

water.

Formerly, private enterprise was interested in irrigation canals only in

the central farming regions, while the more generously watered south

ignored the question; but denudation of the southern forests has brought

about a change in this rainy region while the need for foodstuffs and

the excellent rewards awaiting the farmer have valorised every acre of

good soil, and today a large proportion of the canalisation projects of

the Government refer to southerly regions. With little public land to

offer, the Chilean Government’s new laws were drafted to reach the owner

of large areas of uncultivated—and, if without water, uncultivable—land.

When the newly inaugurated system is in full working order Chile should

have at least 100,000,000 acres under the plough.

CHAPTER IX

FOREST AND WOODLAND

_Extent.—Beech, Conifer and Bamboo.—Trees in Northern and Central

Chile.—Plantations._

Chile’s heavily wooded country lies in the rainy south, and stretches

from the stormy islands about Cape Horn through the long archipelagos

and the provinces of Llanquihue and Valdivia, the forests gradually

thinning out as they run northward through the old Araucanian country.

The province of Cautín is the last stronghold of deep forest.

Altogether, the tree-covered area of Chile is estimated at 15,000,000

hectares, or about 37,000,000 acres; but at least two-thirds of this

quantity must be left out of consideration as regards opportunity for

organized commercial effort such as paper-pulp making. Lack of large

“social” woods, and thin or patchy distribution, is of course a bar to

industrial effort on a great scale, but there are immense stretches

existing in certain regions, as in Valdivia, with nearly 2,000,000 acres

of continuous forest; Llanquihue, with 1,500,000 acres; and Chiloé, with

rather more than 1,000,000 acres.

An impressive picture is created by the density and extent of the

southern forests of Chile, among the last of the great primeval

tree-covered areas in the world. They are like immense green seas,

filling mile after mile of basin-like valleys, running up the sides of

the lower Andean spurs, and in the archipelagos often closing down to

the sea’s edge so thickly that waves break between the trunks. Up to the

present the trees which have proved most useful are conifers, as the

alerce, used for centuries by the native Indians for their canoes; the

“Chilean pine” (_Araucaria chilensis_), yielding a big cone-full of

kernels not unlike chestnuts, which must not be confounded with its kin,

_Araucaria imbricata_, the “Monkey-puzzle” tree; the tall lumo of

Chiloé, used for shipbuilding, and exported to Liverpool before the war;

and two varieties of the native “roble,” which are not oaks, as this

colloquial Spanish name suggests, but varieties of beech.

The evergreen beech (_Fagus antarcticus_) flourishes in Magellanic

territory, and with its kin the deciduous _Fagus betuloides_ and the

cypress (_Libocedrus Tetragonus_) stands along the borders of Magellan

Strait and on the glacier country of the deeply scored waterways

extending northwards; its habitat does not extend north beyond the

Chonos Islands, or about 45° of south latitude. All about Punta Arenas

this beech is of great service, is used for house construction and

boatbuilding, and still exists in large stretches of woodland. The

famous Winter’s Bark (_Drimys Winterii_), a beautiful tree whose

aromatic-scented bark was noted by the earliest travellers, is also used

locally. Many of the shouldering green heights that edge the Strait are

clothed almost to the summit with trees that, changing to burning yellow

and orange tints by the month of April, glow from the mists, their lower

trunks thick with ferns.

Two wild bamboos of South Chile are common—the small climbing “quila,”

and the “colihue,” sometimes growing thirty feet tall, and congregated

in great social tracts known as “colihuales.” Characteristic woodland of

the Valdivia region is tangled with these bamboos, with thick ferns, and

with such creepers as the lovely _Lapageria rosea_, with its waxen pink

or white flowers that retain the Indian name of copihue—the national

flower of Chile, and the no less beautiful Philesia.

The handsome conifer called alerce (_Fitzroya Patagonica_ Hook) grows in

extensive woods or “alerzales” in the Llanquihue region, its base deep

in ferns, the thickly-berried berberis (_Empetrum rubrum_) and other

fruit-bearing shrubs, as the _Myrtus nummularia_. From these berries the

native Indians made their fermented drink “chicha” in the time before

Spanish soldiers and missionaries brought European fruit trees to South

Chile; today apples are chiefly used for the same purpose.

The alerce frequently grows to a great size. Dr. M. R. Espinosa,

visiting the regions of its greatest occurrence in 1917, measured

conifers of this variety which reached 115 feet in height, with a trunk

diameter, at three feet from the ground, of four and a half feet.

Another big specimen measured twenty-seven feet in circumference, and he

speaks of yet another giant, whose old trunk was still to be seen

between Puerto Varas and Puerto Montt, with a girth at the base of over

forty-two feet. The alerce grows perfectly erect, providing splendid

planks of such uniform quality that up to comparatively recent times

these “tablas” were the recognised standard of barter in the Llanquihue

and Chiloé regions, and were exchanged like cash for imported

manufactures and foodstuffs. The wood is red in hue, resists exposure to

water and air, and is easily worked, light and resilient.

The coihue, another fine timber tree of the south, growing in

“colonies,” runs the alerce a good second in height, the two bearing the

reputation of being the tallest trees found in Chile; the laurel, the

lumo, and the canelo are not equally social in habit, but grow in mixed

woodland and are therefore not commercially available to a like extent.

The latter tree, the “Chilean cinnamon,” has a scented bark and is

sacred to the Araucanians, whose main festivals and ceremonies were

traditionally held under the shade of the canelo’s branches.

Forty per cent of the whole territory of Magellanes is estimated as

forest: Llanquihue, Valdivia and Cautín possess a smaller proportion,

for much magnificent woodland has already yielded to the axe of the

settler, but there is still in all about 20,000,000 acres of timbered

land south of the Bio-Bio River. Beyond Araucania the thick forest of

the south gives place to light woods, with no large trees and none that

are tall except the imported poplar, commonly known as the “alamo.” All

about Concepción the thickly leaved little boldo is seen, yielding only

small timber but much prized for the medicinal value of its leaves, from

which “boldaina” is extracted; the thickets are full of the slim

avellano, producing a nut closely resembling the hazel.

The wooded areas of the central region, especially in the well-watered

parts of Aconcagua, O’Higgins, Valparaiso and Colchagua, are well

supplied with lingue, maitén, litre and quillay. The bark of the latter

is highly saponaceous and is sold in every Chilean market, but few of

these trees yield planks large enough for construction purposes, and are

chiefly useful as fuel.

The northerly, more arid country above Illapel frequently shows nothing

but a thorny scrub of the mimosa family; one of these, the algarroba, is

prized as a shade tree and for the green pods it produces, an excellent

cattle food. When brown and dry, these pods yield a tannin used in

curing skins, almost identical with the divi-divi of Venezuela. Beyond

Coquimbo even the thorny scrub and cactus disappear, and in the Andean

heights of Tacna the only fuel that offers is that strange growth, like

a mammoth fungus, the llareta, that must be dried for over a year before

it will burn.

It is thus plain that North and Central Chile, where is the bulk of the

population of the country, cannot supply their own needs for lumber; it

is from the great southerly habitat of the alerce, the coihue and the

Chilean pine that vast quantities of wood for industrial and domestic

use must be sought. Sawmills begin to dot the side of the railroad soon

after the Bio-Bio is crossed on a southerly journey, and immense piles

of fine planks and logs stand beside the line all the way to Puerto

Montt. Immense tracts of forest are still untouched for lack of adequate

transport, although the conformation of Chile, and the large number of

southerly rivers and lakes, help to render the problem soluble. Even

without any great organisation, the south supplies lumber to the central

and northern provinces while filling its own requirements and exporting

a varying quantity. It is difficult to estimate the amount of Chilean

timber exported, since statistics of the number of pieces, or even of

“bundles” of planks, are alone available; the value, in 1919, of

unworked timber exported from the country is officially given as

1,496,000 pesos of eighteen pence.

Forestal laws in Chile have been slow in application chiefly because for

centuries a great deal more woodland existed than could be utilised;

land was needed for cultivation, and it was no crime to burn large

tracts in order that farms should be created. I have heard it maintained

in Chile that such forest destruction or at least the clearing of wide

strips through the heart of certain southerly areas has been beneficial

to the climate: that the Valdivia and Llanquihue region have been less

lavishly endowed with rain and rendered more agreeable for settlers in

consequence.

A few enterprising land owners have begun to replant woodland, growing

plantations of spruce and eucalyptus for preference; for Chile is a

hospitable host to all plants and trees brought from temperate zones.

A great deal has been said concerning the suitability of the South

Chilean forests for making paper pulp, but up to the middle of 1921 no

manufacture has been commenced. Expert opinion has proposed new

plantations of eucalyptus, etc., owing to the non-social character of

Chilean timberlands. Were the Chilean conifers more closely grouped the

problem might have been solved long ago. Suggestions for utilising

extensive thickets of bamboo, the colihue, have also been without result

up to the present, but the recent careful investigations of a Swedish

firm will, it is hoped, bear fruit. The south has plenty of water-power

and easy access to sea or rail, two important points to be considered in

connection with manufacturing industries.

CHAPTER X

COMMERCE

_Home Factories.—Chilean Market Needs.—Sales to Foreign

Countries.—Foreign Firms in Chile.—Trade-marks._

The position of commerce in Chile is better understood when it is

realised that the country has no tropical products for sale. Apart from

the extreme north, where rills of precious water redeem the preponderant

desert, and where varying quantities of cotton, sugar and peppers are

grown, farming is on a par with the farming of western or southwestern

Europe, or the temperate regions of Mexico. Chile has a surplus of

wheat, cattle and sheep; a large production of grapes and wine; and, in

the mineral field, offers her unique supplies of nitrate as well as

about 6 per cent of the world’s supply of copper. Timber from her

southerly forests is chiefly used at home for house and ship building;

Chilean coal finds its market in the Chilean factory regions or

bunkering ports. Whatever the country has to spare of her cereals, fruit

(fresh or canned) and other farm produce finds a ready sale in Peru and

Bolivia; the copper is practically all ear-marked for the United States.

Thus Chile’s offering to the world outside the Americas is not large

aside from her immense and greatly needed output of nitrate of soda.

The establishment of four packing-houses (_frigorificos_) in Magellanic

territory, with another recently constructed at Puerto Montt, follows

and encourages the big development of the sheep-raising industry, with a

view not only to supplying the non-pastoral north, but selling a surplus

abroad. The wool produced, and formerly exported, is likely to be

entirely absorbed by home weaving factories, to which an important

addition has been recently made at Valparaiso.

Of great help in Chilean industrial development is the Sociedad de

Fomento Fabril, and the work of three Government industrial schools, at

Santiago, Chillan and Temuco, turning out electricians, chemists,

blacksmiths, carpenters and other technically trained students.

A country with a temperate climate, hardy population, possessing plenty

of fuel and offering securities to foreign capitalists and business

firms, is likely to prove an inviting ground for the creation of

factories; certain parts of Chile, in consequence, are developing home

industries in a manner comparable to that of South Brazil.

A good start had been made before the European War, but as in many other

South American regions the pressure of necessity brought about a

remarkable and speedy industrial growth. Deprived of big quantities of

manufactured goods, Chile increased or built national mills, and can

today produce a remarkably long list of the goods she needs. Home

utilization of raw materials of course tends to limit Chile’s export

lists and, diminishing her income from overseas, narrows her capacity

for purchases in foreign countries, rendering her still more dependent

upon nitrate exports for national revenues.

Chile’s beds of good coal, with the addition of immense forestal areas

offering lumber, and, also in the south, considerable water-power

resources, form a sound basis for manufacturing. Below the river

Aconcagua factories are thickly dotted, and south of the Maule is a

600-mile stretch of country where new industrial towns lie like beads on

a string, following the railroad track. Altogether, the large and small

factories of Chile number twenty-seven hundred, counting every industry

from Tacna to the Straits of Magellan; the group of important

establishments employs 70,000 people, of whom 40,000 are men, over

17,000 are women, and over 5000 are children less than fourteen years

old. Another 8000 people are employed by little industries. The value of

the merchandise produced by these factories increased by nearly 50 per

cent between 1915 and 1919, the latter year registering the manufacture

of goods worth more than 765,000,000 pesos, Chilean paper. At an

exchange value of twelve pence, this is equal to over £38,000,000.

Santiago province topped the list with manufactured produce worth

280,000,000 pesos, Valparaiso following with 163,000,000 and Concepción

coming third with 68,000,000 pesos.

Included in this output are metal goods, furniture, dried and tinned

fruit, wines, beer, mineral waters, butter and cheese, lard, candles,

soap, boots and shoes, wheat flour, Quaker oats, woven woollen and

cotton cloths, pottery, chemicals, brown paper, bottles and other glass

utensils, sugar and tobacco. Factories manipulating the two last-named

commodities do not draw supplies of raw materials from Chilean soil but

depend upon importations, chiefly from Peru. There are two sugar works,

both Chilean-owned and operated; one is situated at Valparaiso and

another at Penco (near Concepción City), where soft brown crystallised

sugar is brought in sacks, and, after undergoing a series of new

processes, including bleaching, is distributed to local firms in the

form of soft white or cube sugar. The Chilean market rejects all sugars

presenting any hue but that of pure white, I was informed when enquiring

at Penco why at least a proportion of the excellent brown sugar imported

could not be distributed in that condition, and at considerably lower

cost to the consumer. When the refinery was erected it was hoped that it

could be exclusively supplied with raw material from local sugar-beet

farms, and the failure as yet to produce these crops in quantity is

emphasised by the retail price of sugar in Chile—fifteen pence per pound

in 1920.

[Illustration: At Constitución, South of Santiago.]

[Illustration: San Cristobal Hill and Parque Forestal, Santiago.]

[Illustration: Malleco Bridge, near Collipulli.]

Also near Concepción, a few miles eastward following the curving banks

of the silver Bio-Bio River, is a British-owned and operated

cotton-cloth factory turning out an average of 1,000,000 yards yearly,

and working 276 looms. The machinery is British and yarns are imported

from Manchester. All through the agricultural south are flour mills, of

which half a score are owned by British firms; some of these

installations are small and antiquated, but sixteen or more are equipped

with the best modern machinery. As a result of this milling activity,

Chile imports but little wheat flour, and this chiefly from Argentina to

serve as a blend, her home mills practically supplying the whole of the

country and leaving a surplus for export amounting to nearly 24,000

metric tons annually. The best customers for Chilean wheat flour are

Bolivia (17,000 tons), Peru and Ecuador.

Concepción with its coal mines is fortunately placed for industrial

development, and this with other similarly endowed regions and

well-wooded and watered parts of the populated south are fast building

up a list of manufacturing enterprises, most of them based upon local

products. They are rapidly meeting home demands. The foreign visitor in

Santiago has frequently received a surprise when permitted to see the

extremely efficient Government munitions and instrument works, realising

that here is a South American state which is able to manufacture almost

all the equipment needed for its army, from cartridges and rifles to

saddles and field-glasses, the lenses of the latter being the only part

imported.

When such a visitor has also seen tobacco and shoe factories, and the

soap, candle and soda works of the Lever firm at Valparaiso (supplying,

with the sister factory at Concepción, one-third of Chile’s needs for

these goods), he will receive another lesson at the model match factory

at Talca, where the well-being of workers is exceptionally well studied

and a crêche for the children of women workers is maintained. He should

make a point of visiting, at the rich agricultural centre of Traiguen, a

factory where beautiful furniture is made, and, following a sight of the

sugar, flour, candle works of Concepción, and fruit-canning

establishments at Chillan, he will see at Valdivia the most ambitious

shipbuilding yards in Chile, turning out vessels of over 3000 tons. Here

is also an interesting factory making tannin from the bark of lingue, a

large boot and shoe factory, a cider works and several breweries and

fruit-preserving factories. Sawmills line the railway between Temuco and

Valdivia, and thence to Puerto Montt, where the new frigorifico has been

established, and an old lumbering commerce connects with the town of

Castro, on Chiloé, where boats are built. Below Chiloé there is no

industry until the extreme south is reached, and here in the vicinity of

the Strait of Magellan are four packing-houses serving the West

Patagonian sheep farms; at Punta Arenas are sawmills, and the

headquarters of a number of gold-mining companies operating the alluvial

deposits of the southerly islands, a brewery, candle factory, foundry

and shipyard. Dawson Island possesses another shipbuilding industry,

constructing wooden vessels up to 500 tons’ burden. A series of

scientific chicken farms also flourishes at Punta Arenas; 30,000 hens at

Leña Dura yield an average of 200 eggs each, annually: the farm collects

5000 eggs per day, exporting them as far as Montevideo.

An immense impulse will be given to Chile’s manufacturing industry when

the hydro-electric developments planned during the last few years, and

organised in 1921 by the Compañia Chilena de Electricidad, are

completed. The creation of this new company is the work of S. Pearson &

Son, Ltd., famous for brilliant water-harnessing and engineering in many

other regions of Latin America. The Pearson firm initiated its interest

in Chile by the purchase of the Santiago tramways which had been in

German hands prior to the war, and were later operated by J. G. White &

Co., on behalf of the British Government.

Pearson’s decided to increase the power at the disposition of the local

service, obtained solely from falls at La Florida, a few miles from

Santiago, and effected a combination with Chileans of enterprise and

engineering ability already holding concessions for big new

hydro-electric development, including the Cia. General de Electricidad

and the Cia. Nacional de Fuerza Electrica. Work upon the latter’s plans

was under way at Maitenes, inaugurated by the enthusiasm and skill of

Don Juan Tonkin. The Pearson company decided to form a new organisation

with capital sufficient to enlarge the scope of the work and to take

over, in addition, other hydro-electric plans upon the Maipo and

Colorado rivers. Proof of faith in Chile’s future was given when

Pearson’s decided to domicile the new company in Santiago and to add to

its assets the properties of the Chilean Electric Tramway and Light

Company, as well as prestige and financial backing. The new company is

the Cia. Chilena de Electricidad, capitalised at £8,250,000, with a

debenture issue authorised up to £5,000,000; Chilean capital is

interested to the extent of nearly three-quarters of a million pounds

sterling.

Under the enlarged project, the Maitenes plant will be increased to

develop 34,000 h.p.; the increase of an existing steam-plant in Santiago

will bring another 27,000 h.p. into the market; and the development of

plans for the harnessing of the Maipo and its tributary the Volcán at

Puente del Cristo means the creation of a large hydro-electric station,

capable of producing 65,000 h.p. When these installations are in working

order, Central Chile will possess a force of 140,000 h.p. at the

disposition of public services, domestic utilities and industry; the

horizon thus opened is equal to that of the biggest manufacturing region

of South America, S. Paulo in Brazil, where in the city alone about

30,000 h.p. is used to turn the wheels of industry.

The electrification of many Chilean railroads follows as a matter of

course: no sooner was the new company formed than the Chilean Government

signed a contract for the supply of electric power for the State line

connecting Santiago and Valparaiso, and obtained a loan in New York for

electric locomotive and other equipment; similar improvement is planned

to Los Andes and for the reorganised Transandine line. Transmission

lines, bringing power to Santiago from the generating plants, will carry

force to Valparaiso by way of Llai-llai and Quillota, with substations

at important points such as Tiltil, whence the big cement works of El

Melon at Calera will obtain electric power, while Valparaiso’s

industries will share in the new impetus.

_Chilean Market Needs_

Chile’s market needs are on a par with those of other South American

countries so far as manufactured metals, especially machinery, mining

and railroad equipment are concerned: in common with her sister states,

she is also a buyer of such luxuries as fine textiles of wool, silk, and

linen, perfumery and other toilet specialties, fine wines and spirits;

also many utilities which she cannot produce, as print and writing

papers, high-grade glass and ceramic ware, inks, paints and varnishes,

cement, and sheet glass.

The best grades of cotton cloth are also imported, for the existing

Chilean factories are limited in class of output; there is a

considerable import of ready-made clothes, and of fine footwear,

although it is but fair to add that Chile produces the best shoes made

in South America and that her daintiest satin and kid footwear for women

compare well with the output of the great makers overseas; Chilean red

and white wines also outclass the vintages of sister states, but while

the wealthy resident has plenty of money in his pocket there will always

be a certain import of European champagnes and liqueurs, spirits and

high-class wines.

Chile’s purchasing power varies a good deal, fluctuating with the

fortunes of nitrate. The value of imports during the last few years has

swung from 153,000,000 pesos in 1915 to the high-water mark of

436,000,000 in 1918, after which a decline was experienced to

401,000,000 in 1919 and 350,000,000 in 1920. Certain commodities, with

coal as the striking example, were almost blotted from the import lists

during the European war, and with the encouraging development of the

national mines in response to necessity, plus a greatly extended use of

petroleum as fuel for industrial purposes, its pre-war place is unlikely

to be recovered.

Looking down the lists of Chilean imports, the tendency towards

importing materials in the crude state or simply prepared, for

working-up in national factories, shows an immense increase since 1914;

dependence upon national supplies also increases markedly. Metals in

bars or pig, worth less than 400,000 pesos in 1914, were imported to the

value of nearly 5,000,000 pesos in 1919; at the same time the value of

imported lumber dropped from nearly 3,000,000 pesos to 1,250,000. The

value of live animals imported—chiefly pedigree horses and cattle from

the United Kingdom and North America, to improve the already excellent

livestock of the Chilean farms—went up with a bound at the end of the

war, totalling 12,000,000 pesos in 1918; the importation both of leaf

and prepared tobacco shows systematic growth; but purchases of foreign

meats, butter and cheese, show consistent falls.

Chile today and tomorrow · 第 21 / 23 章