URUGUAY: TRANSPORTATION, RESOURCES AND INDUSTRIES
RAILWAYS
Even more than in Argentina the railways have been developed by British
capital. The first concession in 1865 was for a road from Montevideo to
the Rio Negro. Construction has been more expensive than on the plains
of the neighboring Republic, on account of rolling country and the many
bridges required, over 300. There is a single tunnel, in the Department
Rocha. Happily all of the railways are of the same gauge, the standard,
4 feet 8¹⁄₂ inches. The length of those in operation is 1680 miles, the
greatest in proportion to area of any country in South America.
=The Central Uruguay=, with its extensions, is the main line from which
most of the others branch. The original ran from Montevideo to the
Rio Negro in the centre of the Republic, from which it was prolonged
to the northern border at Rivera. In May, 1917, closer connection
was established with Sant’ Anna, across the Brazilian border, and
sleeping car service to São Paulo in 4¹⁄₂ days, which should shortly be
3¹⁄₂. The prolongation is called the Northern Extension. The Eastern
Extension starts at Toledo, 16 miles from Montevideo, diverging to San
Ramón, Nico Peréz, and Melo, with a branch from Nico Peréz, to Treinta
y Tres, 311 miles in all. The Western Extension runs from San José on a
branch of the Central, to Mal Abrigo and Mercedes. From Abrigo a line
goes to Rosario and Puerto del Sauce, and from Rosario on to Colonia,
altogether 211 miles.
Other roads are the Midland and the Northwestern, the former connecting
with the Central near the Rio Negro, passing west to Paysandú, then
north to Salto, while the Northwestern runs 113 miles from Salto
to Cabellos, then northwest to the corner of the Republic, there
connecting by an international bridge across the Cuareim River with
Quarahim, Brazil, and its Great Southern Railway running northward.
At Salto there is considerable interchange of traffic with Argentina
through Concordia opposite, an important railway junction and city. At
Cabellos connection is made with the Uruguay Northern, another road
running to the Brazilian Boundary, the terminus San Eugenio.
=The Uruguay East Coast Railway= with 78 miles of road, starting from
Olmas on the Central Uruguay runs to Maldonado. Much of the traffic
is to the seaside resorts, Puente del Este and Piriápolis; there is
also considerable freight for the Montevideo market, of agricultural
and pastoral products and fish. An extension northward from San
Carlos to Rocha is authorized. The road has been purchased by the
Government. A line from Durazno on the Central to Trinidad, begun by
the Farquhar-Pearson Syndicate as part of a line designed to cross the
country diagonally from Colonia to the Brazilian border, was taken over
by the Government, which has in view the securing of a system of State
railways. Besides building the 31-mile line from San Carlos on the East
Coast Railway it intends purchasing the 23-mile line from Rocha to the
port Paloma. Further needed construction is planned by the Government
as soon as may be practicable.
=Aeroplane service= is to be installed by a British company from
Montevideo to Rio de Janeiro and Pernambuco, and aerial postal service
is planned for the interior.
RESOURCES AND INDUSTRIES
=Stock raising= is by far the leading industry, as is evident from
the fact that in 1917 nearly 98 per cent of the exports were of stock
products. Of the 44 million acres devoted to livestock and agriculture
the latter occupies hardly 5 per cent. In 1603, 100 cattle and two
herds of horses were brought into the country; the cattle increased
so rapidly that at one time they were killed for their hides, as more
recently in Paraguay. Since 1860 when Durham bulls were imported and
stock breeding began, much advance has been made in quality. Herefords,
Devon, a few Polled Angus and others have also been imported; some
for dairy purposes, as Swiss and Flemish. In 1917 the cattle numbered
about 8,000,000. The best _estancias_ have sheds to house pedigreed
stock, they plant trees and have cattle dips. Societies encourage
scientific breeding and the Government subsidizes agricultural shows.
One _estancia_ of 60,000 acres has 15,000 cattle, 20,000 sheep, some
horses, and pays dividends of 16-25 per cent on a capital of £120,000.
Another company with 40,000 acres and a capital of £40,000 pays
dividends of 14-20 per cent. At least 20,000 acres are devoted to dairy
farming; 50,000 pounds of butter are made monthly, and both butter and
cheese are exported. The best of apparatus is employed.
=Sheep=, imported from Argentina in 1608, flourish to the number of
11,700,000; the varieties of Merino, Lincoln, Romney Marsh are found
among others, the English breeds being preferred.
=Horses= of good quality are raised, 570,000, both light and heavy, but
few in comparison to the cattle. There are 300,000 pigs, a few mules,
16,000, and 12,000 goats.
=Meat Packing.= In 1754 the first meat salting plant was established
but the true pioneer dates from 1786. Others followed. There are now 13
besides seven factories for preserving meat and two _frigorificos_. The
slaughter season is from November to January. The meat for _saladeros_
is separated from the bones, dried 4-6 days in the sun, and then
salted. It is arranged in four grades according to fat or lean; the fat
meat is sent to Brazil, the lean to Cuba and elsewhere.
Of _frigorificos_ the Swifts own one, and exported to Europe in 1915
and 1916, each, over 700,000 frozen quarters of beef and 100,000
chilled; also mutton and lamb. The _Frigorifica Uruguaya_ shipped
nearly 44,000,000 pounds of beef to Europe in 1916 and over 2,000,000
pounds of mutton. The total export of animal products shipped in 1916
was worth $73,000,000. A model slaughter house and cold storage plant
is in prospect. A new one for wool washing has a capacity of 132,000
pounds daily. Saving in freight cost and immunity from deterioration
are thereby attained.
The Liebig Extract of Beef Company, with extensive holdings in and
near Fray Bentos and with a total capitalization of £2,000,000 usually
pays 20 per cent dividends on the ordinary shares; 5 per cent in 1916.
They use the best of meat, and their Oxo capsules and Lemco have a
world-wide reputation. They own and rent in Uruguay, Argentina, and
Paraguay 1,120,000 acres.
In spite of strikes and labor troubles the livestock industry has
brought prosperity to the country, with record prices for beef, mutton,
hides, and wool, thus greatly increasing land values. The cattle are
pastured on the natural long thick grass, very little alfalfa being
cultivated. Hogs, hens, bees, and silkworms are raised. The seal
industry and fisheries are important.
AGRICULTURE
The agricultural products are insufficient for the use of the country
although 2,000,000 acres are in cultivation. About 900,000 acres are in
wheat, 700,000 in corn, 128,000 in flax, 100,000 oats, some barley and
canary seed. In 1916 agricultural exports were valued at $1,500,000.
Among other crops are tobacco, which is especially promising, linseed,
alfalfa, sugar cane, some cotton, potatoes, etc. Viticulture is quite
extensive, American grapes growing better in the south, and French and
Italian in the north. Other fruits, oranges, olives, apples, pears,
cherries, peaches, and melons flourish.
FORESTRY
Forestry is encouraged so far as planting is concerned; about 1,000,000
acres are in natural forest land. Millions of trees have been planted
on land not otherwise useful. The supply of wood in future will be
greatly increased and there may even be export.
MINERALS
Minerals are of some importance and may become of more. The country is
believed to contain considerable wealth in gold, silver, coal, marble,
jasper; and in other minerals and semi-precious stones, including
amethyst and topaz. There is little export save sand, stone for paving,
and similar articles.
=Gold.= The chief gold fields are in the Department Rivera near
Cuñapiru not far from the Brazilian border. A district 35-40 miles long
and 7 wide contains auriferous reef with gold 5 ounces to the ton; if
deep the prospect is limitless. A modern English plant is now getting
out gold. Bars worth $4000 were exported in 1915. Four hundred mines
have been denounced in the Department. Enormous quantities of manganese
are in the neighborhood. Gold is found also in Minas, Salto, and
Tacuarembó.
Copper exists in quantity in Cerro Largo, Maldonado, Minas, Paysandú,
and Salto. Iron, silver, slate, gypsum, asbestos, lead, etc. may be
exploited later. Even greatly needed coal of fair quality has been
found in Montevideo, Santa Lucía, and especially in Cerro Largo where
it seems promising, though no working of minerals is sufficiently
developed to present decisive results. Indications of petroleum have
been noted at the north, the strata coming in from Brazil.
MANUFACTURES
Naturally manufacturing save for home consumption is of slight
importance, except of products of the pastoral industry, as of dairies
and of meat extract. For home use there are 115 flour mills, 45 others,
as of hardware, soap, macaroni; 1 sugar factory, 3 starch, 1 cement,
4 breweries. Many of these are in Montevideo. The Government proposes
the construction of chemical factories for the production of sulphuric,
nitric, carbolic, and acetic acid, glycerine, benzol, alcohol,
sulphuric ether, etc., and a powder and explosive factory; these to
cost over $2,000,000, material and machinery to enter free of duty.
An important project of the Government is the development of water
power from the cataracts of the Uruguay River, which will be equivalent
to 3,000,000 tons of coal per annum. Two dams are planned, one movable
and one fixed, with canals by which 419 miles of river will be open
to navigation from the lower section. Irrigation is included in the
project, and 37,000 acres near Montevideo are to be irrigated as an
illustration. Fifteen cities have authorized work in connection with
this project.
INVESTMENTS
Aside from the development of hydro-electric power and the construction
of public works of various kinds including railways, it is probable
that agriculture and fisheries present the most favorable openings,
with good possibilities also in manufacturing industries, stone
cutting, and mining. Stock raising is already pretty well developed.