CHAPTER II
THE GREAT ARGENTINE INDUSTRIES
The principal industries of the country are related to agriculture and cattle-breeding.
Sugar-planting, Boiling, etc.—Capital engaged—Tucuman the chief centre—Production and exportation—The sugar crisis—The Rosario Refinery.
Flour Export Trade—Capital invested—Equipment, steam flour-mills, grain-elevators—Production and exportation.
Refrigeration—At present the chief industry of the country—Number of establishments—Table of exports of frozen and chilled meats—Capital invested—Development of the industry.
Dairy Industries—The large establishments devoting themselves to these industries—Butter; cheese—Exports of butter; the development of which the dairy industries are capable.
Breweries—Chief establishments—Production and consumption of beer during the years 1902-1907—Suppression of imports of foreign beer.
Spirits—Decreased production of spirits.
Looms, Tanneries—Weaving and tanning are industries which at present exist in the Argentine only in a rudimentary condition, despite the conditions which are favourable to their development.
Quebracho Wood—The centre of production—Applications—Companies engaged in the industry—Their results—Value of the products and the large profits to be expected.
Timber Trade—Varieties of timber and hard woods.
Fisheries—First results of this industry.
The industry of the Argentine Republic is more or less independent upon its agriculture and stock-raising, which contribute the raw materials for the manufacture of various alimentary products. Among those industries which are thus dependent on the produce of the soil we must mention, as the more important, sugar-boiling, flour-milling, the chilled-meat industry, the making of butter, cheese, and oil, brewing, and distilling.
Besides these industries, the majority of which are flourishing and suffice for the needs of the country, we must mention others which are still in a rudimentary state, but which seem to have an assured future, on account of the abundance of raw material; namely, the weaving of woollen and cotton fabrics, and the preparation of leathers. We
shall therefore have occasion to remark upon the conditions of their development.
Sugar Factories.—The sugar industry has fairly remote antecedents in the Argentine. Dr Latzina traces it back to the Jesuits; the inventory of their goods, drawn up at the time of their expulsion in 1767, proving the existence of a field of cane and a sugar-mill.
Despite its respectable antiquity, the sugar industry only began to be of significance towards the middle of the nineteenth century, at which time it was established in Tucuman, whose soil appeared to be favourable to the cultivation of the cane. Since then it has developed gradually, but it is only during the last ten years that it has spread to any considerable extent.
We have given the details of this development, together with figures, in the chapter dealing with the industrial branches of agriculture, in which we spoke of the laws affecting this industry.
To-day the number of sugar-mills or factories is thirty-one; they belong to limited companies or to private persons, and represent a total capital of £4,224,000, to which sum we must add another of £2,640,000 as the value of some 160,200 acres planted with cane, at the rate of £16 to £17 per acre, and £369,600 as the value of the Rosario Refinery; which gives us a total of £7,233,600 invested in this industry. The largest undertakings used to be in the hands of Señor Tornquist and M. Hilairet, now both deceased, to whom the country is indebted for the great progress effected in this industry.
To sum up the position of this industry, we must recall the fact that the area of Argentine soil planted with sugar-cane at the end of 1907 was 172,900 acres, which yielded an average crop of 12·4 tons of cane per acre, and produced about 130,000 tons of sugar.
The sugar industry has been developed in this country, as in so many others, by the system of export bounties or premiums, which has since been suppressed. Twenty years ago the Argentine had to import nearly all her sugar from Europe—more than 100,000 tons per annum—while to-day she produces far more than she can consume, and has to export the surplus of her production.
Although the progress accomplished was so rapid, it was not effected without certain misunderstandings, caused by excessive production. At the end of the sugar crisis of 1896-7, which occasioned the closing of a number of factories, attempts were made to regulate the industry, at the instance of the leading makers. To-day there is a syndicate which regulates production within the limits of exportation and production, and serves as a sales agency for all the factories.
The sugar industry of Tucuman has the advantage as part of its equipment the Rosario refinery, which receives the raw sugar of Tucuman and subjects it to the various processes of crystallisation and bleaching. Its output during the agricultural year 1906-7 was 107,621,800 lb. of refined sugar; during the year 1907-1908 it was 120,552,220 lb.
Flour-milling.—Flour-milling has had much the same history as the sugar industry. Although the industry was established in the Argentine as early as the sixteenth century, it has only been properly developed during the last twenty years. Before this period the Argentine was supplied partly from Chili, as its power of production had not kept pace with its population. To-day the situation has been completely transformed, since the enormous development of agriculture; not only does the flour produced suffice for the country, but since 1878 an export trade has sprung up, amounting to 39,000 tons in 1902, 72,000 in 1903, 107,000 in 1904, 144,700 in 1905, 129,000 in 1906, and 127,000 in 1907. Brazil is the Argentine’s best customer for flour, having imported 84,000 tons in 1904, 103,000 in 1905, 114,000 in 1906, and 118,300 in 1907.
Great Britain was the second-best customer for flour, having imported 14,800 tons in 1904, 24,400 in 1905, 5400 in 1906, and 1200 in 1907; to-day the exportation is negligible.
It is estimated that there are 600 or 700 flour-mills in the Argentine, representing a capital of from £2,200,000 to £2,640,000. Buenos Ayres has two, which have been lately installed on American models. They are situated on land belonging to Madero Harbour, and comprise a fine and powerful equipment, with grain-elevators, silos, and granaries. One is the property of the Belgian Steam Flour-mills Company, and has a capacity of from 12,000 to 14,000 tons. The other,
with a capacity of 80,000 tons, was built by the efforts of two great railway companies, the Buenos-Ayres Rosario and the Central Argentine. We have seen that no less important installations are shortly to be built at Rosario, by the French company which holds the harbour concession.
The Refrigerating Industry.—Among all the Argentine industries the most important is that of chilling or freezing meat and other foodstuffs. It is gradually replacing, in the export markets, the salt meat or saladeros industry, which formerly was the only industry in the country dependent upon stock-raising. The latter industry is carried on principally in Buenos Ayres, Santa Fé, Entre Rios, and Corrientès.
The principal refrigerating establishments are the following:—
The Sansinena Frozen Meat Co., with a capital of £600,000, and the warehouses known as La Negra, at Buenos Ayres and Bahia Blanca, in the quarter known as Cuatreros.
The River Plate Fresh Meat Co., with a capital of £453,600, whose warehouses are in the Province of Buenos Ayres.
The Palmas Produce Co., which is a component part of James Nelson & Co., and has a capital of £500,000, exploits the district of Campana.
La Blanca, with a capital of £300,000, established at Buenos Ayres.
The Plata Cold Storage Co., with a capital of £403,805, situated at La Plata.
Recently another refrigerating establishment has been inaugurated at Zarate, the property of the Smithfield and Argentine Meat Co., with a mechanical equipment allowing 150 bullocks and 600 sheep to be killed per diem. Its capital is £200,000.
To this list we may add the Kemmerich Products Co., which manufactures extracts of beef. Its capital is £480,000, and it is established at Santa Elena, in the Province of Entre Rios. This company owns 2700 square miles of land, 340,000 cattle, 20,000 horses, and 50,000 sheep.
The exports of the refrigerating establishments for the last seven years are given in the following table, which shows the enormous increase in the export of quarters of beef during the last few years.
Exports of Frozen Meat (1901-1908).
+----------------------+----------------------+----------------------+-----------------------+---------------------------------+
| 1901 | 1902 | 1903 | 1904 | 1905 |
+-----------+----------+-----------+----------+-----------+----------+-----------+-----------+-----------+---------------------+
| Whole | Quarters | Whole | Quarters | Whole | Quarters | Whole | Quarters | Whole | Quarters of Beef |
| Sheep | of Beef | Sheep | of Beef | Sheep | of Beef | Sheep | of Beef | Sheep |-----------+---------+
| | | | | | | | | | Frozen | Chilled |
+-----------+----------+-----------+----------+-----------+----------+-----------+-----------+-----------+-----------+---------+
Sansinena Frozen Meats Co. | 985,294 | 157,740 | 1,289,628 | 304,108 | 1,072,248 | 291,621 | 1,207,801 | 242,940 | 1,002,146 | 332,302 | 59,535 |
River Plate Fresh Meat Co. | 927,648 | 170,123 | 1,120,263 | 301,881 | 1,000,562 | 370,663 | 855,039 | 335,136 | 680,836 | 204,436 | 174,242 |
Las Palmas Produce Co. | 809,785 | 170,512 | 1,019,331 | 224,224 | 1,095,678 | 291,266 | 1,056,996 | 312,870 | 867,832 | 337,640 | 29,099 |
La Blanca | | | | | 213,112 | 42,513 | 424,486 | 178,709 | 244,299 | 177,470 | 38,408 |
The La Plata Cold Storage Co. | | | | | | | 129,456 | 140,343 | 369,299 | 350,096 | 100,423 |
The Smithfield and Argentine Meat Co. | | | | | | | | | 33,830 | 30,300 | 24,304 |
Rio Seco | | | | | | | | | 67,248 | | |
The Frigorifique Uruguayenne | | | | | | | | | 96,846 | 14,876 | |
The Frigorifique Argentine | | | | | | | | | 126,882 | 64,601 | |
+-----------+----------+-----------+----------+-----------+----------+-----------+-----------+-----------+-----------+---------+
| 2,722,727 | 493,375 | 3,429,222 | 830,213 | 3,381,600 | 996,023 | 3,673,778 | 1,209,998 | 3,489,218 | 1,511,631 | 436,002 |
+-----------+----------+-----------+----------+-----------+----------+-----------+-----------+-----------+-----------+---------+
+----------------------------------+----------------------------------+----------------------------------+
| 1906 | 1907 | 1908 |
+-----------+-----------+----------+-----------+-----------+----------+-----------+-----------+----------+
| Whole | Quarters | Quarters | Whole | Quarters | Quarters | Whole | Quarters | Quarters |
| Sheep | of Beef | of Beef | Sheep | of Beef | of Beef | Sheep | of Beef | of Beef |
| | Frozen | Chilled | | Frozen | Chilled | | Frozen | Chilled |
+-----------+-----------+----------+-----------+-----------+----------+-----------+-----------+----------+
Sansinena Frozen Meats Co. | 773,243 | 300,605 | 67,996 | 812,624 | 237,821 | 35,882 | 1,058,862 | 263,832 | 65,497 |
River Plate Fresh Meat Co. | 553,589 | 249,071 | 163,624 | 419,186 | 221,009 | 128,359 | 476,569 | 263,673 | 185,294 |
Las Palmas Produce Co. | 664,860 | 320,064 | 32,570 | 669,325 | 255,797 | 28,627 | 648,974 | 256,918 | 58,468 |
La Blanca | 119,370 | 191,294 | 68,113 | 51,139 | 185,352 | 106,941 | 126,482 | 200,254 | 158,936 |
The La Plata Cold Storage Co. | 454,879 | 245,045 | 84,476 | 537,451 | 207,548 | 99,129 | 317,252 | 259,073 | 218,083 |
The Smithfield and Argentine Meat Co. | 14,172 | 110,579 | 38,705 | 34,679 | 118,041 | 40,675 | 32,385 | 136,009 | 81,302 |
Rio Seco | 104,047 | | | 261,335 | 101,792 | | 134,595 | | |
The Frigorifique Uruguayenne | 63,311 | 17,521 | | 142,070 | 76,475 | | 137,853 | 76,062 | |
The Frigorifique Argentine | 252,918 | 146,410 | | 124,890 | | | 405,353 | 123,142 | 21,768 |
San Gregorio | | | | | | | 133,835 | | |
+-----------+-----------+----------+-----------+-----------+----------+-----------+-----------+----------+
| 3,000,389 | 1,580,589 | 455,459 | 3,052,699 | 4,403,835 | 439,613 | 3,672,182 | 1,579,163 | 789,348 |
+-----------+-----------+----------+-----------+-----------+----------+-----------+-----------+----------+
The capital invested in the refrigerating industry, including both share capital and loans, is estimated at £4,449,825. The profits obtainable may be judged by the dividends paid by the most important of the refrigerating companies: the Sansinena Frozen Meats Co., in 1902, paid 50 per cent. out of the exceptional profits realised by the sale of cattle in South Africa during the Boer war. Since then the dividends of this company have fallen to 10 per cent.
Another cause of the development of this industry is the closing of English ports against cargoes of live cattle, for fear of anthrax. It is by the help of this prohibition that the refrigerating companies have conquered the English market, which to-day takes up the greater part of our frozen meat, as before it took our cattle. Steps have of late been taken with a view to re-opening the ports under a pledge of sanitary measures; but nothing decisive has been done, on account of the protests of English cattle-breeders, and also of the refrigerating companies, most of which have been created by English capital.
The Dairy Industry.—Among the industries connected with cattle-breeding there is one which, without having the same importance as the industry dealt with above, has yet a certain margin of development. This is the dairy industry, with its derivatives, butter and cheese-making.
The Argentine breeders having imported excellent Durham or Dutch milch-cows, the dairy produce is of the finest quality.
Large establishments, of which one, La Martona, belongs to a private company, have been installed for the purpose of supplying the city of Buenos Ayres with milk. It is estimated that the daily sale at the counters of La Martona amounts to 10,000 glasses; the sales of La Marina amount to 6000, and of La Granja Blanca to 10,000 glasses. All these approximate figures refer to the summer only, and the sales across the counter by the litre, for family consumption, and the house to house distribution, are not included in these figures. Besides the above establishments there are many cow-keepers in the city, as well as dairymen who receive their milk by rail.
As for butter and cheese, it was estimated at the time of
the census of 1895 that there were 357 establishments devoted to this industry. In the matter of butter the Argentine does more than suffice to itself—though ten years ago this was not the case—but to-day it exports considerable quantities to England, Brazil, and South Africa.
To give the reader some idea of the dimensions which the butter-making industry may attain in the future, we need only cite the following data:—
According to the national census of 1895 there were 22,000,000 cattle in the Argentine Republic, of which only 1,200,000 figured as milch cows; the value of the latter being not less than £14,000,000. Butter-making and cheese-making were very restricted industries, especially the former, and the statistics of 1895 mention an export of only 500 tons. But the impulse was already given; and the combined efforts of agriculturalists and cattle-breeders, directed towards the improvement of the bovine species, were about to give an extraordinary impetus to the butter-making industry. Let us see how the situation has improved between 1895, the time of the last national census, and 1908, the year in which the agricultural and pastoral census was taken.
This latter inventory has shown that in 1908 the Argentine Republic contained 29,119,625 head of cattle, of which 2,163,900 were milch cows and 12,825,904 were cows employed for breeding purposes. That is, considering the milch cows only, we do not find a very extraordinary increase since 1895, although all agricultural and pastoral industries have undergone such a remarkable development. It is extremely probable, however, that a certain number of milch cows are counted among the cows employed for breeding purposes, as the latter do produce milk, whether for consumption on the farm or for commercial purposes. Here are the figures of the exportation of butter from 1895 to 1908:—
| Year. | Number of Tons Exported. | Value. |
| 1895 | 494 | £24,720 |
| 1896 | 903 | 45,160 |
| 1897 | 600 | 29,980 |
| 1898 | 927 | 46,320 |
| 1899 | 1,179 | 58,980 |
| 1900 | 1,056 | 52,740 |
| 1901 | 1,510 | 75,500 |
| Year. | Number of Tons Exported. | Value. |
| 1902 | 4,125 | £253,580 |
| 1903 | 5,350 | 426,580 |
| 1904 | 7,459 | 423,560 |
| 1905 | 5,393 | 431,460 |
| 1906 | 4,405 | 352,400 |
| 1907 | 3,035 | 242,800 |
| 1908 | 3,550 | 284,000 |
These figures are sufficiently satisfactory, but they are far from representing the possibilities of the future, when the improvement of breeds and the establishments of new creameries will permit of the manufacture of butter on a far larger scale.
Among the present stock of 30,000,000 cattle there ought to be a proportion of at least 45 per cent. of milch cows, or 12 millions; at the very least 8 millions. Counting upon a daily yield of 17·6 pints of milk per cow, valued, in its original state or in the form of butter or cheese, at 2d. per litre, or 1·136d. per pint, we obtain a sum of £64,000 per diem, or £23,000,000 per annum.
But these calculations are purely theoretical. One thing, however, we can say to the credit of the country, and that is that its dairy industry is admirably adapted to the requirements of a great city such as Buenos Ayres, which must perforce obtain that essential aliment, milk, under the most favourable conditions of price and quality. An extremely perfect equipment enables the industry to utilise its by-products. The problem is not whether the Argentine can produce such a quantity of butter, but to whom it can sell it, for in America Brazil is its only customer, while in Europe it has to struggle against the competition of such countries as France or Switzerland, which countries it would be difficult to displace.
As for cheese, we quote only from memory; its production is practically limited by local requirements. The most important establishment in this line is that belonging to Señores A. & R. Luro, on their estate, San Pascual del Moro. Here the “moro” cheese is made, an imitation of the Roman cheese, which is consumed in large quantities by the Italian colony.
Breweries.—Although not directly dependent upon the produce of the soil, since the country produces no hops, and,
very little barley, we will nevertheless mention the industry of brewing, as one which is at present in a prosperous condition. It is undertaken by a number of limited liability companies, of which the most important, due to the initiative of M. Bemburg, is the Brasserie Argentine de Quilmes, a French company with a capital of £360,000, which brews about 3,960,000 gallons of the 8,360,000 gallons consumed by the nation.
Next, with a much smaller output, comes the Bieckert Company, with a capital of £362,880, and an output (in 1904) of 1,349,390 gallons; the Cerveceria Palermo, with a capital of £132,000, and an output of 1,264,690 gallons; the Rio Segundo, in the Province of Córdoba, with a capital of £80,000, and an output of 423,810 gallons; and the Fabrica Nacional de Cerveza, with a capital of £120,000, and an output of 540,540 gallons.
Here are the statistics of production and consumption for the last six years of the thirty-two Argentine breweries:—
| Year. | Production | Consumption |
| (pints). | (pints). | |
| 1902 | 49,096,235 | 46,933,520 |
| 1903 | 57,043,272 | 56,360,350 |
| 1904 | 65,663,824 | 65,077,538 |
| 1905 | 94,264,637 | 86,833,214 |
| 1906 | 113,967,478 | 113,898,794 |
| 1907 | 123,404,693 | 115,746,857 |
| —————— | —————— | |
| 503,440,139 | 484,850,273 | |
| —————— | —————— |
The national product has won a complete victory over the foreign article, the importation of which is now negligible; and it has also popularised the liquid dear to Cambrinus, which ten years ago was still a luxury. One can only regret that agriculture, whose development has of late been so enormous, has not as yet liberated the brewery from the necessity of going to the foreigner for his malt, a product of barley which is the principal raw material of beer. Hitherto, according to Girola, the native barleys have been very little used, as they are not appreciated as they deserve to be; and the growers, on the other hand, have not taken sufficient pains to produce a good brewer’s barley. We must hope that this situation will soon be changed, and that more pains will be taken in the numberless fertile valleys of the Argentine in the growing of barley and its improvement.
Spirits.—The production of alcohol, unlike that of other industrial products, is rapidly decreasing. In 1907 only 3,823,336 gallons were produced, while in 1897 the production was nearly 6,600,000 gallons. But we must not forget that the duty, which was originally 7 centavos per litre (6·72d. per gallon), was in 1898 increased to 1 piastre per litre, or 8s. per gallon; nearly five times the prime cost of the spirits.
Weaving.—In concluding this sketch of the chief industries of the country which are connected either with agriculture or stock-raising, it is not out of place to speak of those which, although so far scarcely developed, may do better in time under favouring circumstances.
With the development of cotton-planting and a plentiful supply of wool, it seems that a large number of looms might be profitably established and operated in the Argentine. But hitherto this industry, of prime importance though it be, has been held in check by the expense of the necessary machinery and of coal, which has to be imported from abroad, and the scarcity of labour.
Tanning.—This industry too, ought in time to occupy a place of far greater importance than it does now; for the raw materials—hides and quebracho, the best of tanning media, are present in abundance. To understand the stationary condition of this industry we must remember that it would require a considerable spare capital, as the hides have to remain in the vats for several months, during which time the tanner has need of capital at low terms of interest, which up to the present time has not been available in the Argentine.
Quebracho Wood.—Considering its future prospects, we must give a special place to the industry which exploits quebracho timber; converting the balks into railway sleepers, or extracting their tannin.
Red quebracho is found scattered profusely through the hundreds of square leagues of the country known as the Chaco, which is situated between 24° and 28° of south latitude, and 59° and 64° of west longitude, and also in the Provinces of Santa Fé, Santiago de l’Estero and Corrientès. The Chaco quebracho is superior to that of Santiago, which has the misfortune to grow in nitrous
alkaline soil, where the trees do not reach any considerable dimensions. The Tucuman product is good, as it grows in a damp soil, when it grows well and is full of sap. Best of all is the red quebracho of Chaco; it is the richest in tannic products; according to an analysis made in the United States, it contains 30 per cent. of tannin, while the Santa Fé product contains less than 26 per cent.
Although quebracho wood is absolutely impervious to rot, and may thus be used in building, for piles, quays, sleepers, etc., it is exploited more especially for the production of tannin, as more profit is made by so treating it. A sleeper requires a good-sized log, considerable time, and much labour, to say nothing of the loss of wood; while the quebracho extract may be obtained from logs of any size. To-day the value of a sleeper, loaded on the track, is worth 6s. 2d., while three times as much may be made by extracting the tannin. For this reason the principal companies engaged in the quebracho trade have abandoned the manufacture of sleepers, so that certain railway companies—the Buenos Ayres Western, for example—have had to content themselves with iron sleepers.
Until quite lately quebracho wood was sawn into large round or squared balks, which were then sent abroad, chiefly to Germany, where the tannin was extracted. During the five years, 1899-1903, 1,044,000 tons of logs were exported; in 1903, 200,201 tons; in 1904, 252,723 tons; in 1905, 285,897 tons; in 1906, 230,000 tons; in 1907, 246,514 tons; and during the first six months of 1908, 127,609 tons. Various foreign and native companies were formed, with large capitals, to convert the wood into extract of tannin, and to export it in this form.
These companies are: the Compañia Industrial del Chaco, with a capital of £348,000 and two factories; one at Las Toscas, in Santa Fé, with a monthly output of 1000 tons of extract, and one at Calchagin, in the same Province, which produces 600 tons per month. These factories are equipped with German plant.
This company enjoyed a season of great prosperity in 1904; although its factories produced only 12,000 tons of extract instead of 36,000, as they could have done, a dividend
of 42 per cent. was declared. Since then the lack of outlet and the low prices have paralysed the development of this industry.
Another tannin factory, able to produce 250 tons of extract, has been established by Herwig Brothers at Pehuajó, Province of Corrientès.
The Compañia Industrial del Chaco is also about to erect, at Resistencia, a factory with a capacity of 300 tons of extract per month.
El Quebracho is the last of the companies established for the extraction of quebracho tannin, and this also began to work under the most auspicious financial conditions. Its factories are installed at Fives-Lille, Province of Santa Fé, on land belonging to the “Kemmerich Products Co.”; these have been equipped with the most perfect machines of German make. The capital of this enterprise amounts to £32,000, which it is hoped will be repaid by the profits of the first few years. The monthly output is 450 tons.
The Mocovi Tannin Co., floated with a capital of £60,000, has a factory some 60 miles east of Los Amores (Santa Fé), and has a capacity of 300 tons per month.
The firm of Hardy & Co., of Las Palmas, near Resistencia, own a factory which cost £50,000, and produces 200 tons of extract monthly.
The Formosa company, which deals in timber and quebracho tannin, has a capital of £200,000. This company owns 96 square leagues of forest—some 880 square miles—which are estimated to contain 2 million tons of quebracho. This company intends to establish a factory capable of producing 15,000 tons of tannin yearly.
The Compañia Azucarera de Resistencia, with a capital of £22,700, produces 80 tons of extract monthly, and the factory of M. Benito Pinasco, at Guaycurú, on the Santa Fé railway line, produces 30 tons.
Besides these factories, Señors Charles and Joseph Casado, the Argentine owners of 2800 square leagues of land (over 25,000 square miles), in the Paraguayan Chaco, have established two factories, one at Puerto Casado and the other at Puerto Sastre, which produce, respectively, 500 and 1000 tons of extract per month.
The average yield of quebracho wood is 25 per cent. of extract; but as the extract contains a number of resinous and colouring matters, which must be eliminated during the process of manufacture, the net yield is 22 to 23 per cent. of solid extract containing 20 per cent. of water, which contains 70 to 73·5 per cent. of tannic oxide—that is, pure tannin.
The system employed in extracting the tannin is based upon diffusion. Firstly, the wood is reduced to powder by means of machines which cut or saw the wood, into which the logs are fed entire. Then, when the wood is converted into sawdust or fine chips or shavings, it is passed through extractors or diffusers, which separate the cellulose from the tannin, which is finally concentrated to the degree demanded by the market by means of vacuum pans.
During five years, from 1904 to 1908, the exports were: 20,111 tons in 1904; 29,408 tons in 1905; 30,839 tons in 1906; 28,190 tons in 1907; 48,160 tons in 1908.
Germany and the United States are the chief buyers of this valuable product, which forms the principal wealth of the northern part of the Argentine.
In the first edition of this book we prophesied a rapid and prosperous development for this industry, which had already received a considerable impetus; unhappily this prediction has not been realised in practice, and the quebracho industry has suffered, not precisely a crisis, but a diminution of its outlets which has seriously prejudiced its interests.
This trouble is due to various causes. Firstly, the ruinous competition between the various firms producing quebracho tannin; a competition which has now happily disappeared, thanks to an arrangement concluded between the principal companies, on the initiative of M. Hermann Schlieper; secondly, to the almost prohibitive duties which the German Government has imposed upon the importation of the product; thirdly, the indifference shown by the railway companies in using on their permanent way sleepers of steel rather than of quebracho, although the latter is more durable. It is to be hoped, however, that in course of time these
causes will disappear, and that this industry will in future recover all the elements of progress.
The Timber Industry.—Another industry which is equally dependent upon the forestal wealth of the Argentine is that whose object is the exploitation of the various and valuable kinds of wood to be found in various parts of the country, especially in the forests of the Chaco and of Formosa.
The variety of costly woods to be found in these forests is astonishing. Recently more than thirty-three species have been classified, all of industrial value; the best known, besides the quebracho, being the acacia, algarrobo, button-tree, lapacho, bay, the smaller cedar, and many other varieties, black, white and red.
To exploit this forestal wealth a limited company has lately been formed with a capital of £352,000, which proposes to erect two important saw-mills in the Chaco. This company already owns about 2300 square miles of forest, and is thinking of increasing its domain by further purchases.
Fisheries.—Finally, quitting the forests for the seas, we must mention one other industry, at present unimportant, but apparently capable of considerable development: namely, the sea fisheries.
Owner of an immense coast-line bathed by the southern seas, the Argentine has an appreciable store of wealth at her disposal; which so far has been drawn upon only in a modest and almost secret manner, but which is now beginning to attract attention, to the great benefit of the country and of those who have entered upon this industry.
Since Prof. Nordenskjold wintered in Antarctic waters, Captain Larsen has been able to report a source of great wealth, which can be easily and profitably exploited, in the fishing of these waters; and upon his arrival in Buenos Ayres he put himself in communication with a group of Argentine capitalists, who decided to form a limited company by the name of La Pesca, with a capital of £32,000.
The results of the first season’s fishing was so productive, and the number of whales harpooned and “cut in” so large, that, according to a report which has been sent us, this company was able, at the end of the first year, to return the capital sunk in the firm of dividends.
Naturally such results cannot fail to draw new adventurers into this industry, which in turn will increase and develop the wealth of the country, at the same time procuring for the country a class of men formed by the strenuous labour of Antarctic life; a class of which the young Argentine navy has the greatest need.