Industrial and commercial South America

by Annie S. Peck

Climate

The climate of the country naturally is extremely varied. In the northern section the immediate coast like that of Peru is preserved from intense heat by the Antarctic current. A little way back on the arid plateau the temperature is excessive by day but cool at night. Going south from the arid section the rainfall gradually increases until in the far south there is too much. The central regions have a fair supply with an excellent climate, mean annual temperatures of 50°-60°. Farther south with rain 150-170 days in the year, in some places 80-100 inches, the climate is less agreeable. The winds are generally west, either a little north or south. While the mean temperatures are fairly low, the extremes are much less than at the same latitudes in most parts of North America or on the East Coast of Argentina. Even at the farthest south, at Punta Arenas, the most southern city of the globe, the weather is never so cold as often in the usual winters of New York or Boston. Until recently suitable sanitation has been lacking in many cities and the death rate has been high. Now the authorities are alive to these matters and with the installation of proper sewerage, already accomplished in Santiago and in progress in other cities, the death rate is lower. In no cities from Guayaquil south need any tourist be apprehensive of danger.

CHAPTER XXX
CHILE: CAPITAL, INDIVIDUAL PROVINCES, CITIES

Capital

Santiago, the capital, with 450,000 inhabitants, is the fourth in population of the cities of South America, the first three being Buenos Aires, Rio de Janeiro, and São Paulo. The city is finely located in the fertile Central Valley, on the Mapocho River. Important as the Government and social centre, it has much commercial activity. A little off the direct Trans-Andine line between Valparaiso and Buenos Aires, it is equally a terminus, as special cars run to each city from Los Andes where they connect with the narrower mountain railway. Santiago is the centre of the north and south railway systems which traverse the country almost from end to end.

A lack of first class hotels has been partially remedied by the construction of a large one on modern lines, but it may be said that in all of the capital cities and chief ports of the West Coast additional accommodations of a higher class are desirable. In Santiago important improvements recently accomplished include the installment of a sewerage system and the repavement of the principal streets. Electric lights have long been enjoyed and an excellent system of electric cars, one feature of which New York might imitate to advantage, the numbering of the cars to indicate the various routes. Santiago in addition to its delightful location may well boast of its fine buildings, especially its Capitol, the handsome opera house, and many fine residences; still more of its parks, the far famed Santa Lucía, Parque Cousiño, and the Quinta Normal; also of the Palace of Fine Arts, and the Cemetery, especially beautiful in rose time. Most of the streets are narrow, but there is one splendid broad avenue, the Alameda or Avenida de Delicias with a central parkway ornamented with statuary.

CHILE, ARGENTINA, PARAGUAY, URUGUAY

Provinces

A brief review of the Provinces follows, beginning at the north. Unless otherwise stated, the Provinces extend from the coast back to the mountains, bordering at the east on Bolivia or Argentina.

Tacna, formerly a part of Peru, is still claimed by that country, though in the possession of Chile. It is separated by the Sama River from the Peruvian Province, Moquegua. Largely mountainous, Tacna has many peaks above 18,000 feet; the two passes to Bolivia are about 14,000 feet. Of 500,000 acres of possible agricultural land about one tenth is irrigated, the rest is desert. Alfalfa is the chief production; beans and maize are important with other vegetables and fruit. The leading export is sulphur.

The capital, Tacna, is a pleasant town, connected by rail with the port of Arica, though it is not on the road to La Paz. Arica, with a better harbor than most of the others, is an important primary port where all steamers call, as it is the terminus of the Arica-La Paz Railway; one of the three Pacific outlets for Bolivia. New docks are to be constructed.

Tarapacá follows on the south, this Province containing with other minerals, extensive, hot, arid plains with nitrate fields. The sloping coastal section has two important ports, Pisagua and Iquique, besides smaller ones exclusively for the export of nitrates, in which the two named are chiefly engaged.

Iquique, the capital and principal port, is of great commercial importance for such export, and has very large imports from the fact that these include all eatables as formerly all drinkables, even water. Now the water comes in pipes 150 miles from the mountains. The soil too was imported for the few plazas and gardens existing, as nothing will grow in the native soil. It is an enterprising community with a good proportion of pleasant British homes, clubs, theatres, etc.

Antofagasta comes next, separated from Tarapacá by the River Loa. On the east it has both Bolivia and a piece of northern Argentina. The surface descends from the Andes in a series of plateaus. Vegetation is scanty. This Province, with Atacama on the south, shares in the activities of the nitrate industry.

The capital city, Antofagasta, is 200 miles south of Iquique, both ports having very poor harbors, though with enormous commerce for places of their size. Antofagasta, the terminus of a third railway from La Paz, the second in Chile, has much Bolivian trade besides export of nitrates, and lately from Chuquicamata of copper. The Province contains other ports and cities of consequence, Taltal, Tocopilla, Mejillones, etc.

Atacama on the south borders exclusively at the east on Argentina, which from here down forms the eastern boundary of Chile. The surface of the Province is uneven, with mountains, plateaus, and ravines; in the valleys of Huasco and Copiapó there is some agriculture. Minerals, as gold, silver, and copper receive attention.

Copiapó, the capital, is an important railway junction.

Coquimbo, following, is a narrower Province, the mountains and the Argentine boundary coming nearer the shore. There are many lofty peaks at the east; and between spurs running down to the coast are fertile, well watered valleys, as we now come to the central section where with a mild climate there is moderate rainfall. Cereals, fruit, wine, and livestock are exported.

La Serena, the capital, is a pretty town, which has tramway connection with Coquimbo, a first class port, and a busy city.

Aconcagua is next, with the great peak of that name in the range at the east. Some 15 miles south of the peak is the Uspallata Pass, for many years the main commercial highway between Chile and Argentina. By this Pass came Almagro, and later a division of the army of San Martín; another division by the pass of Los Patos, a little lower and farther north, by which cattle are often driven into Chile. The Province is chiefly agricultural and pastoral, with crops of cereals, fruits, hemp, and tobacco. The finest wine is produced; there are large herds of cattle; and copper has some exploitation.

Valparaiso, one of the two Provinces bordering on Aconcagua at the south, is next to the smallest in the Republic, and the first coming from the north which does not extend across the country. With Aconcagua on the north it has Santiago on the east and south. The surface is mountainous with extensive valleys, the Coast Range here reaching a height of 7000 feet. Several rivers and a number of bays are among its favorable features. With a mild climate and sufficient rain agriculture is the principal industry aside from the commercial interests of the chief port of the West Coast, Valparaiso.

Santiago, south of Aconcagua and east of Valparaiso, extends from Argentina on the east, south of Valparaiso to the sea, and has the two Provinces of O’Higgins and Colchagua on the south. The Central Valley, which occupies a great part of its area, is here a broad plain, part of which is well watered and fertile but with some sections arid; the foothills and valleys are well wooded. The Central Valley slopes towards the west, having an altitude of nearly 3000 feet at the foot of the Andes, and about 1000 feet near the hills of the Coast Range. The highest point of the Andes, here south of Mt. Aconcagua, is less than 20,000 feet while the Coast Range approaches 8000. Cereals, vegetables, fruit, and wine are the chief products. Among other towns in the Province is the port of San Antonio.

O’Higgins, a very small Province, occupies what may be called a jog at the southeast corner of Santiago, which is therefore on the west and north, while Argentina is east and Colchagua south. Although a rugged district, irrigation is developed and large crops of cereals and fruit are grown. Rich in mineral deposits, copper alone is exploited.

Colchagua, south of Santiago and O’Higgins, extends across the country from the sea to the mountains, which have three easy passes into Argentina. The plains of the Central Valley have a rich soil and good rainfall, but as the summers are dry, as in Santiago, irrigation is needful. Crops of wheat, beans, alfalfa, etc., are important, and also the cattle industry.

Curicó follows across the south with similar features and productions.

Talca is next, also extending from the coast to Argentina. With a temperate climate, there are greater extremes of heat and cold on the plain. Besides the agricultural and cattle industries, the dense forests here afford opportunity for exploitation. Two Provinces are on the south.

Linares, the more eastern, has Argentina on the east, Nuble south, and Maule west. With considerable agricultural land, along the lower slopes of the Andes it has dense woods.

Maule, the coast Province south of Talca, has both Linares and Nuble on the east, and Concepción south. The valleys of the Coast Cordillera, which are fertile, afford opportunity for increased agriculture, but unwise deforestation has been injurious.

Nuble, again an Andean Province, between Argentina and Maule, is south of Linares and north of Concepción. Easy passes lead into Argentina, forests are extensive, and vines and cereals are grown on a large scale.

Concepción, south of Maule and Nuble, extends from the Pacific to Argentina. Mountainous at the east, it is rather arid in the centre, but extremely fertile near the coast. The fine crops include grapes and excellent wine. Large forests and extensive coal deposits are a source of wealth.

Arauco and Bio-Bio are on the south; Arauco along the coast, with important agriculture and large herds of cattle, has also extensive forests and mineral deposits, coal mines actively worked, and gold, both alluvial and quartz.

Bio-Bio at the east is mountainous and well watered, as is this region in general. Cereals are largely grown and viticulture is practised. The cattle industry is important and the forests are exploited.

Malleco, south of Bio-Bio, is peculiar in the fact that it alone of the Provinces touches neither the Pacific nor Argentina, having a strip of Bio-Bio and Cautín on the east and Arauco on the west. The mountainous eastern section is heavily wooded and the fertile central plain with a mild damp climate is celebrated for its crops of wheat.

Cautín, extending all the way across the country, touches three Provinces on the north, Arauco, Malleco, and Bio-Bio. Here are plains, mountains, and valleys, with much rainfall and luxuriant vegetation of forest, grass, and agriculture. Excellent timber and tannin extracts, fruit and cattle, produce wealth, and coal and gold await exploitation.

Valdivia, south of Cautín, also extends across the country. Here are lower mountains, many passes into Argentina, extensive forests, several lakes, much rain; but a healthful climate, luxuriant vegetation, with profitable agriculture, forest products, and cattle breeding.

Llanquihue follows, extending south to the Gulf of Ancud and beyond. The present southern terminus of the Longitudinal Railway is the capital, Puerto Montt, at the head of the Gulf. This is largely a forest region, though in the valley of the lakes are fertile lands suited to grazing and agriculture, both of which industries are increasingly followed. The climate is rather cool but equable.

Chiloé, the last of the Provinces, consists of the large island of that name covering about 560 square miles, other islands much smaller, and a long archipelago called Chonos extending to the peninsula of Taitao. The island, Chiloé, is largely covered with forests which, strange to say, have a somewhat tropical character, with fine timber, dense undergrowth, and trailing vines; for the climate, with excessive rainfall, is extremely mild for the latitude, which corresponds to that of Massachusetts. Cereals, potatoes, and fruit are grown, and many pigs are raised; though forestry, and fishing are of greater importance.

The Territory of Magallanes extends from the 47th parallel south including the mainland and islands, with mountains, rivers, forest, and plains. On the coast the climate is not severe; in the interior it is more rigorous. Cattle and sheep raising are the most profitable industries; whaling and forestry are important.

CHAPTER XXXI
CHILE: PORTS AND TRANSPORTATION

Ports

Although Chile cannot boast of many excellent harbors, with her extended coast line her ports are naturally numerous; 59 is the official number, of which 15 are primary ports with custom houses, while the rest are dependent, save Punta Arenas, which is proudly apart as a free port, the only one in this part of the world. The primary ports are not necessarily those with the best harbors, but were made such on account of the demands of commerce.

The service along the coast is similar to that of Peru except that the boats of the Peruvian Steamship Line do not go beyond their own shores, while there is additional service by Chilian steamers. Before the War 40 per cent of the engaged shipping was British. Service to and from Europe, formerly by way of the Straits, long ended at Valparaiso, later extending to Callao, and for one or two sailings to Panamá. The exigencies of war interfered with the execution of plans which are now being carried out or modified. European express service below Panamá is likely to be confined to the ports of Callao, Mollendo, Arica, Iquique, Antofagasta, Valparaiso, and Punta Arenas, with a possible call for coal at Coronel. Other express service may include Coquimbo and Talcahuano. Aside from the leading coastal lines a few companies operate smaller ships locally; on the sea, and 843 miles on the several navigable rivers at the south. There is also service among the southern islands and to Juan Fernandez, 400 miles to the west.

Valparaiso, as the most important Pacific port south of Panama, deserves especial attention. This rapidly growing city, population about 200,000, to one coming from the north seems quite European, with an atmosphere more crisp and businesslike than that of courtly Lima or picturesque La Paz. The semicircular bay is called a good harbor except when the north winds blow, as they are liable to do in winter. Some years ago a British steamer lying at anchor, in an unusually strong blow was sunk with all on board. A breakwater expected to avert such danger, has for some time been in construction; but the depth of water off shore has made the work difficult. Freight was formerly discharged into lighters and people into rowboats, the steamers anchoring at some distance from shore. Now, however, a fiscal mole 100 feet long, one half with a depth of water of 43 feet, the rest of 36 feet, provides all facilities. Valparaiso has fair hotels, providing insufficient accommodation for the rapidly increasing travel and business. In many respects the city is quite up to date, but unhappily here and in Santiago Americans in winter suffer more with the cold when sitting indoors than in La Paz and Lima, though for walking outside it is comfortable enough with the temperature near freezing. As a rule dwelling houses have no heating apparatus, no stoves, but in some hotel dining rooms electric heaters are employed, and oil stoves may be provided for Americans in their rooms. While Chile has coal mines, their production is insufficient for the use of shipping and of their varied industries, and the people are not accustomed to use either the native or the imported article for heating purposes.

The business section of Valparaiso is on a narrow strip of shore between the bay and the amphitheatre of hills, the level sector varying in width from two blocks to half a mile. Climbing up the slopes and crowning the hill tops is most of the residential district. The business section, largely destroyed by an earthquake in 1906, has been rebuilt in a more substantial manner, and it well compares with other cities of its size. Ascensors run by cable on inclined planes are in general use for the ascent of the bluffs, though paths and a few carriage roads wind steeply upward in the cañons here and there separating the hills, some of which rise to a height of 1000 feet. The suburb of Viña del Mar, population 34,000, a fashionable summer resort with a fine beach and club house, distant a half hour by rail, is much frequented by the foreign devotees of golf, tennis, and other athletic sports.

Other Ports. Of the other principal ports we have observed that Arica is the terminus of the Arica-La Paz Railway, that Iquique is important for nitrates, Antofagasta for nitrates, copper, and as the medium of commerce with Bolivia by the old railway to Oruro and now to La Paz; Coquimbo as the port of a province with both mineral and agricultural wealth. Below Valparaiso are better harbors. Concepción, the largest city south of Santiago, 350 miles distant, is spoken of as the outlet of the rich Province of that name, but being 12 miles from the mouth of the Bio-Bio River it is not a real seaport and is served by Talcahuano, 9 miles away, which has one of the best harbors on the coast. For this reason, though a much smaller city, population 24,000, it was selected as a military port and for the Government dry docks. A little farther south on Arauco Bay are Coronel and Lota, both important coaling stations, at one of which all steamers call; Lota, the larger city, has all conveniences for shipping. At the tip of the mainland in the Straits is Punta Arenas, not visited by the regular coasting steamers, but a port where every passing ship is likely to make a brief call.

Railways

While the Chilians have always cultivated a taste for the sea, for strategical more than commercial reasons railway construction has of late been strongly favored. In this medium of traffic Chile in proportion to her area is far ahead of the other West Coast countries. It is true that the difficulties of topography are less. The oldest existing line in Latin America was here constructed in 1849 by a Bostonian, William Wheelright, who later founded the Pacific Steam Navigation Company, the earliest giving regular steamship service to Europe from the West Coast. This first railway line was from the port Caldera to the mining town Copiapó. The line from Valparaiso to Santiago, also constructed by Americans, was finished in 1863. Government ownership is popular in Chile, and of the 8000 miles of road in operation the State owns over 5000, with considerable extensions planned. Unfortunately six different gauges have been used, varying from 2 feet 6 inches on the Antofagasta Bolivia Line to 5 feet 6 inches on the Central Railway.

The Central Railway. This is a Government Line connecting Valparaiso with the capital Santiago, express trains with American parlor cars making the run of 117 miles in four hours. The road is now to be electrified. South along the rich Central Valley, the same Railway runs through sleeping cars to Valdivia and to Puerto Montt, the latter city 750 miles from Santiago. This section is well worth a visit, whether from a scenic or a business point of view. A bridge 1400 feet long and 300 above the bed of the Malleco River cost over $1,000,000.

There are many branches from the main line, some of these privately owned; most of them to coast ports, a few towards the Cordillera. Valdivia is the most southern ocean port to which a branch extends. Farther north, the third city of Chile, Concepción, is favored, and Talcahuano near by. From Concepción a coast road leads south to Lota, Coronel, and beyond. From Talca a line goes to Constitución, of some importance for agriculture, shipyards, and gold mining. Another branch goes to the port Pichilemu; from Santiago one extends 72 miles to the port San Antonio, nearer the capital than is Valparaiso but a secondary port to be improved by the building of docks. The Central Railway obviously forms a very important part of the real longitudinal railway, but the section which has the name Longitudinal begins farther north.

The South Longitudinal. From Calera on the Valparaiso-Santiago Railway a branch leads 45 miles to Cabildo, where begins the Longitudinal proper. This because of construction difficulties is of narrow gauge, one metre. On account of poor equipment and service, and the competition of steamship lines along the coast, its traffic is at present small; but with better facilities and increase of population it will be of much value. At last accounts there was weekly service to Antofagasta with two changes of cars, not counting the one from Valparaiso or Santiago in order to reach Cabildo. Here, three hours from Santiago, the South Longitudinal is taken to the city of Copiapó; for the Longitudinal has two sections. The ride is through a fairly pleasant country with varied scenery, the region being partly agricultural and partly mineral. In this section are heavy grades, rising to 6 per cent, requiring 28 miles of the rack system. Branches or other connecting lines here and there reach the sea. The road passes through the important port Coquimbo, and the adjoining Serena, at which point, 200 miles from Valparaiso, the desert land begins; though in river valleys there is still some verdure. From Vallenar on the main line a branch runs 31 miles to the port Huasco. A private line from the port Carrizal, 92 miles north of Huasco and 73 south of Caldera, crosses the Longitudinal. At Copiapó we come to the old line from Caldera, a fairly good port, shipping copper and doing considerable other business, though not a port of the first class. A branch in the other direction extends to San Antonio.

The North Longitudinal. At Copiapó we change to the North Longitudinal from which there is a branch to Chañaral, about 50 miles north of Caldera, on a large but exposed bay in one of the richest mineral districts of Atacama, with large smelting works, and exporting gold, silver, and copper. A private (British) railway system of 184 miles, crossing the Longitudinal, serves a nitrate district and the port of Taltal, 100 miles south of Antofagasta; a primary port on a well protected bay, with piers fitted with steam cranes, a centre of the nitrate and copper industries. Taltal is a modern town with important business houses. Besides gold, silver, and copper, the Province has some undeveloped nitrate land.

Farther on at Aguas Blancas, a railway belonging to the Bolivia-Antofagasta Company runs to Caleta Coloso, a port six miles south of Antofagasta and connected by rail with that city as well as with various nitrate properties. Farther still the Longitudinal crosses the Antofagasta-Bolivia Railway at Baquedano, where some traffic is exchanged. It is the intention of the Government to construct its own line to Antofagasta and to the port of Mejillones some miles north. Beyond this crossing, from Toco on the Longitudinal, the Anglo-Chilian Nitrate and Railway Company’s Line branches to the port of Tocopilla. At last Pintados, the one time terminus is reached, where connection is made with the Nitrate Railways, which go on to Iquique and Pisagua. But in spite of this the Government Line is now being prolonged to the former city. It is intended ultimately to extend the main line to Arica, 175 miles farther, a section likely to be unprofitable commercially but desired for other reasons. From Arica there is a railway to Tacna, near the Peruvian border, hence on completion of this section there would be through rail service from near the northern border to Puerto Montt in the far south, a primary port on the Gulf of Reloncavi. The length of the road from Puerto Montt to Jazpampa the present terminus, east of Pisagua, is 1902 miles; to Taratá, the most northern town in the mountains, the distance is 207 miles more.

The Antofagasta-Bolivia Railway. The Bolivian section of the important Antofagasta Railway has already been referred to. That in Chile deserves further consideration. British owned, like most of the Chilian railways not belonging to the State, it is the longest and most important of these. Although uncommonly narrow with a 2 foot 6 inch gauge, the sleeping cars are more comfortable than some with double the width. The road operates 835 miles of main track to La Paz, 518 of these in Chile. There is semi-weekly service to La Paz in practically two days, besides local trains. One thousand, two hundred and fifty miles of track are controlled by the Company. The climb begins at once, the road in 18 miles getting 1800 feet above the sea. At km. 36 a branch 70 miles long goes to the Boquete Nitrate Fields, altitude 5622 feet. At Prat, km. 59, a branch goes down to Mejillones, a new port, opened by the Company in 1906, called the finest harbor on the coast, capable of holding the fleets of the world (it was said when these were smaller) and so protected that shipping suffers no inconvenience from bad weather. Tocopilla, 37 miles north of Antofagasta, has direct rail connection with that city by a line 43 miles long. The main Antofagasta line, crossing the Longitudinal at km. 96, at km. 116 enters the principal nitrate district of this region and leaves it 35 miles beyond. In this section are 24 oficinas, as the nitrate plants are called, some of them models of their kind.

Going in either direction this part is traversed at night; otherwise one might be refreshed by the sight of a little green at Calama, 149 miles from Antofagasta, at six A.M. This was a copper mining centre in Inca days and a smelter is here now. At this altitude some persons stop a day, a good plan if one is not sure of his heart; though oxygen is now carried for use in emergency. At km. 254 is a short branch, 6 miles, to Chuquicamata, to be referred to later. Just beyond the Conchi station is a graceful viaduct with six lattice girder spans of 80 feet each, supported on steel trestle towers. This, called the highest viaduct in the world, is 336 feet above the water of the Rio Loa, at an altitude of nearly 10,000 feet. Here a branch line runs to the copper mines of Conchi Viejo. At San Pedro station, 195 miles, at 10,600 feet altitude, are reservoirs blasted from the solid rock, on which the Company spent $6,000,000 to supply Antofagasta, the nitrate fields, and the railway with water. The water comes from three different places, one of them 37 miles northeast and 14,500 feet above the sea: this source capable of supplying 6000 tons of water daily through 11-inch pipes.

The road now passes two snow capped volcanoes, from one of which smoke may be rising, and crosses a stream of lava one-third of a mile wide and several miles long, to the summit of the main line, 13,000 feet. Soon after, a borax lake belonging to a British company may be seen; 24 miles long, it is the largest single deposit in the world and the chief source of the world’s supply. At Ollague, where snow storms occasionally impede traffic, is a branch to the rich copper mines at Collahuasi. The Bolivian frontier is soon afterward crossed, and at Uyuni a change is made to the broader gauge line to La Paz.

The Trans-Andine Railway. Of all the railroads of Chile, the Trans-Andine is naturally the most famous, as a part of the only trans-continental railway south of Panama; but financially, as yet it is hardly a success. With post-war increase of traffic, there will doubtless be an improvement. The Trans-Andine section of metre gauge begins at Los Andes, altitude 2723 feet, 88 miles from Valparaiso. A change is here made from the State Line, 5.5-foot gauge. It is a distance of 43 miles to the tunnel, a steep climb up the Aconcagua River Valley, with a maximum grade of 8 per cent; 20 miles of rack railway are employed. There are 25 tunnels, and on the Aconcagua River or its branches, 118 bridges. The scenery is wild and the journey delightful. Sheds have been erected against snow and land slides. Up to 1916 the road was closed for several months each winter; but with an increase of sheds and with a force of men continually digging, the road was kept open through the years 1916, ’17 and ’18; it was seriously blocked in July, 1919. While previously passenger traffic was the more remunerative, in 1916 unusual efforts were made for the benefit of important freight which it was impossible to ship by sea.

The tunnel is at a height of 10,486 feet, its length is 10,385 feet, each practically two miles. The boundary line is near the middle, each country building to that point; but the whole is operated as one line from Los Andes to Mendoza. The line was opened in the Centennial year, April 16, 1910, in time for the Exposition at Buenos Aires. The cost of the Chilian section was about $15,000,000. Operation is at a loss, interest being paid by the Government. The capitalization is $317,000 a mile. Fifteen Trans-Andine projects have been put forward, most of them for the south, one from near Puerto Montt. One in construction is from Talcahuano to Bahia Blanca by way of Temuco. A road from Punta Arenas to the Loreto coal fields is the most southern railway in the world, as that is the most southern city. The early construction is expected of an important road at the north from Salta in Argentina by Huaytiquina on the border to Antofagasta. Of wagon roads there are said to be 20,000 miles.

The Arica-La Paz Railway is described on page 222.

CHAPTER XXXII
CHILE: RESOURCES AND INDUSTRIES

Although Chile is often compared to California, to which State it has some but not a close resemblance in length, partial dryness, earthquakes, and fruit, the specialty of Chile is not shared by California. Chile and nitrates are almost synonymous terms. A thought of one suggests the other. The greater part of the nitrate country earlier belonged to Peru, some also to Bolivia; and both countries still bewail their loss.

Mining

The Nitrate Fields we know are in the north, chiefly in the Provinces of Tarapacá, Antofagasta, and Atacama. If this desert land does not blossom as the rose, it produces the wherewithal to make other fields blossom, and the wealth to purchase the roses. The richest deposits are mainly along a stretch of 300 miles from Pisagua in Tarapacá, to Coquimbo. With an average width of 2¹⁄₂ miles, the fields are at a distance of from 10 to 80 miles back from the coast, and at a height of 2000-5000 feet. The deposits, which are not in continuous fields, are sometimes on the surface, but oftener overlaid with strata of earth several feet thick. The raw material called caliche contains from 20 to 65 per cent nitrate of soda. After pickling in tanks 8-12 hours, the liquid, caldo, is run off, the sand and refuse dropping to the bottom. When ready for export the article carries 15-16 per cent nitrogen and 36 per cent sodium. Commercial nitrate is a white cheese-like substance, which is used in manufacturing the highest grade of gunpowder, also to produce nitric and sulphuric acid; but the bulk of it in ordinary times is employed as a fertilizer, doubling and tripling the harvest. Within recent years the demand and in consequence the production has greatly varied, the partial recovery in 1920 being soon followed by a depression.

A by-product is a yellow liquid, which being chemically treated leaves a blue crystal, iodine, which costs as much an ounce as saltpetre per 100 pounds. Being worth $700-$800 a cask it is shipped in treasure vaults with bullion. The nitrate establishments called oficinas provide good salaries, and the best possible quarters for their officials, and they are interesting to visit. As a mineral, the nitrate is distinguished from guano although believed by some to have the same origin. British companies have long been engaged in this industry. American interests have more recently acquired holdings. The Du Ponts have three properties covering 14,000 acres.

The chief ports of this region are Iquique and Antofagasta, Pisagua being a smaller port visited only by the caletero or the strictly freight boats. Iquique is a more agreeable city than in former days, when water was sometimes $2 a gallon, and people drank champagne, they said, because water was too expensive. Now the dust of the streets is laid by sprinklers, some people have bath rooms, a few even fountains in patios. Antofagasta is also a desert place, unattractive to look at, but with good shops, business houses, and fair hotels. The water comes a distance of nearly 200 miles, the source more than two miles above the sea.

Potash. In addition to nitrates Chile possesses extensive beds of useful potash one of which is estimated to contain nearly 7,000,000 tons easy of exploitation.

Copper. The property of the Chile Copper Company (one of the Guggenheim interests) at Chuquicamata is said to be the largest copper deposit known in the world. About 2000 of the 9600 acres of the claim are mineralized. The outcrop of copper is one and a half miles in length. It has been proved below to a width of 1800 feet and a length of 7500 feet. Ten of the 2080 shafts are over 1000 feet in depth, and at 1500 feet the ore is of commercial value. Over 700,000,000 tons of positive and probable ore have been developed, carrying an average value of 2.12 per cent copper. The reduction plant has a capacity of 15,000 tons a day, the refinery of 180,000,000 pounds a year. With a 90 per cent extraction the yield is 96 pounds of copper per ton. At the port of Tocopilla, north of Antofagasta, the Company has a power station where oil from California is used to generate a power of 24,000-27,000 kilowatts needed at Chuquicamata. This is transported by wire across country a distance of 100 miles. At normal prices the cost of copper production with delivery in New York or Europe is $121 a ton, or about 6 cents a pound; higher with war time conditions which still obtain (1921). From the 15,000 ton plant in full service 175,000,000 pounds of copper would be produced annually. In 1920, 55,617,000 pounds were produced, the largest amount from any mine in Chile. In 1916 important mines belonging to the Calama Mining Company were added to the Chile Company’s holdings.

The Braden Copper Company, another Guggenheim interest, owns about 2300 acres in the Province of O’Higgins. They have a concentrator, a smelting and converting plant, a hydro-electric power plant with 800 kilowatt capacity and an electric and a steam railway; the latter, 43 miles long, connecting the property with Rancagua, which is on the Central Railway 43 miles southeast of Santiago. The ore is of concentrating copper, a sulphide in brecciated andesite, around an extinct volcano. It runs about 2.5 per cent, with an earlier production cost in New York of 6.5 cents a pound, but now higher. In 1916, 1500-1800 men were employed. The plant, recently enlarged, is not working to capacity. In 1917, 64,000,000 pounds were produced, over 77,000,000 in 1918, with diminishing demand, 40,000,000 in 1920.

Another American syndicate has acquired the Tamaya Copper Mines in the Province of Coquimbo between Ovalle and Tongoy, the latter, a minor port 27 miles south of Coquimbo, sheltered from north winds, with smelting works in the place. With an efficient pumping plant and other improvements installed, the mines are expected to yield large production. Other companies, native, British, and French are engaged in copper mining at Carrizal and elsewhere.

Iron. Coquimbo, a Province with local importance for agriculture, is notable for its deposits of iron ore, said to amount to a billion tons. Only one of these has been worked, a deposit located at Tofo, about four miles east of Cruz Grande, and 30 north of the city of Coquimbo. This property was leased in 1913 by the Bethlehem Steel Company from a French Company which had developed the mine to some extent and produced ore. The ore appearing as the top of a large hill will be mined by electric shovels and transported by an electric railway to docks at Cruz Grande. The amount of ore is very large though with exact tonnage undetermined. The Company is still exploring the deposit at depth.

The mines and railway are completely equipped. At Cruz Grande a basin dock has been constructed with large storage pockets into which the ore will be discharged from the railway cars, and from which it will go directly into the vessels. The Steel Company is constructing steamers of 20,000 tons to carry the ore to the United States for use in their furnaces. The ore is very pure averaging about 67.50 per cent iron. It is a dense ore reddish black in color, a mixture of magnetite and hematite.

The French Company formerly controlling Tofo had erected a steel plant at Corral intending to transport the ore thither. There is no iron ore near there and the plant is not operating.

Of the other deposits in Coquimbo and farther north some are of considerable size, but none is located so near the coast as Tofo and none has been developed.

Other metals existing in Chile are at present of less importance and slight operation. A moderate gold output accompanies the production of copper, and there is some placer mining, especially in the south. Deposits are known to exist in many Provinces from Tacna to Tierra del Fuego. Silver too exists, but its production is chiefly as a by-product. Lead, zinc, molybdenum, and tungsten are exported in limited quantities.

Coal, following nitrates, is of the first importance among ordinary minerals, a source of large wealth though the production, about 1,700,000 tons yearly, is insufficient for the needs of the country. Little is therefore exported and a good deal is normally imported from Great Britain and Australia; until recently a little only from the United States. Most of the mines in operation, owned by ten companies, are near the ports of Talcahuano, Coronel, and Lota. The coal is not equal in quality to the British, but it has been used by steamships, railways, and mines with fair results. Coronel or Lota, five miles apart on Arauco Bay, one or the other, is a regular port of call for steamships. The Cousiño property at Lota was purchased in 1852 and later was conducted by the son’s widow, under her administration the greatest financial enterprise carried on by a Chilian. At her death she was called the richest woman in the world, leaving a property of $70,000,000. The capital of the company is $20,000,000. The mines are one-fourth of a mile deep and extend under the sea, where there is good rock and no drip. Here are streets, restaurants, offices, stalls for horses, blacksmith shops, etc.

A British Company, the Arauco, in addition to coal properties operates its own railway with 62 miles of main line and branches, besides mining spurs. It has four daily trains from Concepción to Lota, Coronel, and beyond, passing over the Bio-Bio River by a bridge of 1¹⁄₄ miles, the longest in South America. Of coal about 1¹⁄₂ million tons are produced and as much more is imported.

Petroleum is believed by Chilians to exist in large quantities, but the present development is infantile. It has been found in southern Chile, on the Island of Chiloé and in the Patagonas district, as well as in the north near the Bolivian frontier. Large quantities are imported principally from Peru, normally about 400,000 tons a year. Oil recently found in the Magallanes Territory is stated by experts to be equal in quality to that found in Argentina. The extent of the deposits seems to rival that of the famous fields of Comodoro Rivadavia. Legislation to regulate the well drilling is proposed to prevent inundation of deposits by subterranean streams, to restrict the ownership to native Chilians or foreigners with Chilian families, and to secure to the Government a 10 per cent royalty. A strong flow of petroleum of great purity from a well about 300 feet deep has recently been reported from Chiloé.

Sulphur comes from a largely producing mine at the foot of Mt. Ollague, and from one of growing importance at Tacora on the Arica-La Paz Railway. The deposits of Tacora are believed to contain 10 to 45 million tons of sulphur. In 1915 about 10,000 tons were produced in Chile.

Salt. From various salt deposits, the salinas of Punta de Lobos and several mountain lagoons, about $300,000 worth of salt was produced, supplying the domestic market.

Borax is important, Chile furnishing about half of the world supply.

Agriculture

Of large importance and value are the agricultural interests including fruit, although the imports of such products are nearly double the exports in value. About one eighth of the area of Chile consists of arable land. The production should be greatly increased. Twenty million acres are still available, and with better methods excellent results might be secured. In 1914-15 about 25,000,000 bushels of wheat were raised, half as many potatoes, and more than half as much hay; besides barley, oats, beans, corn, etc. Considerable wheat is exported with some barley, oats, rye, and legumes. Of 15,000,000 acres suitable for wheat, only one fifth is in cultivation. It grows well from Aconcagua to Cautín inclusive, but farther south the crops are uncertain. They average 15-20 bushels an acre. Six hundred thousand acres are devoted to alfalfa, which in favorable places gives three crops a year and has roots ten feet long, a distinctive variety being formed here. In irrigated valleys from Coquimbo north, corn gives two fine crops annually. Potatoes flourish from Concepción south, in Chiloé yielding 250-350 bushels to the acre. Flax and sugar beets might be raised. Some agricultural machines are now employed, in the neighborhood of 30,000.

Fruit. Delicious fruits of all temperate zone varieties and some of the subtropical are raised, chiefly for home consumption, but with export possibilities. Drying and canning of these is practised to some extent, but might be done on a much larger and more profitable scale. Excellent table grapes are raised; many vineyards devote their product to wine making, the industry being especially developed in the Provinces of Santiago, O’Higgins, and Colchagua. In the north, wine is made of the port and sherry classes; in the central section light wines of excellent quality, some of which are exported to the neighboring countries. More wine however is imported of expensive varieties. The vineyards are in general owned by natives, and according to location are worth $200-$1000 an acre. Raisins are produced in quantity.

Forestry

This might become a more important industry, though now practised to a considerable extent. It has been customary to burn a section of forest at the close of summer, February, to get rid of the underbrush, and later to cut down the trees, which must have suffered some injury. The forest area is below the Bio-Bio River. On a tract of 100 square miles extending from near Valdivia north to Temuco, the timber averages about 9000 feet to the acre. Farther south the woods are denser, as on the Island of Chiloé. The greatest extent of forest is in Valdivia, the next in Llanquihue and in Chiloé. On this Island a 60 mile railway was constructed by the Government from Ancud at the northwest to Castro south, on the east side, making a part of the forest accessible. Oak, Chilian mahogany, laurel, ash, pine, and other hard and soft woods are available. There are in Chile 3000 saw-mills and some pulp and shingle mills. The first and second grades of wood, used for floors and finished boards, bring $12-$18 per 1000 feet, ash $25; the third grade is worth $8. Shingles are $3 per thousand. From the forests comes the quillay bark with a soapy substance for cleaning silk and fine linen, of which $200,000 worth is annually exported to France, after being prepared by two Chilian factories. Tannin, of which 15,000 tons are annually used, is derived from bark of several kinds. With additional railways planned and Government data furnished, there is opportunity for good investments with moderate capital.

Stock Raising

Stock raising of various kinds is carried on quite extensively by some large companies under British, German, or Chilian control, often paying 20 per cent dividends. Sheep are in the lead, numbering probably 6,000,000, cattle 3,000,000, horses 725,000, half as many goats, a third as many pigs, fewer donkeys, mules, alpacas, and llamas. The horses are good, larger than those in Peru, and noted for their excellent trotting, some making this as easy as a good pace or canter. In 1916, 20,000,000 pounds of wool were produced, half of this in Magallanes Territory not far from Punta Arenas, where there are more than 3,000,000 sheep. The meat is of the finest quality; the farther south the better the wool in thickness and length of staple.

The cattle are improving with the introduction of Shorthorns and Herefords; there is some export, especially to Bolivia. The 3,000,000 at present might be increased ten fold. A British company is constructing a frigorifico at Puerto Montt. The dairy industry is important, with good cheese, bottled milk, and some condensed. Goats are numerous in the mountains. Apiculture is practised and fine honey is made. Fisheries are of great importance and value, at Juan Fernandez, as also along the coast.

Manufacturing

Such industries are more developed in Chile than in any of the countries previously considered. The 6200 manufactories with 80,000 operatives and an investment of $250,000,000 show great diversity. There are saw mills, flour mills, breweries, sugar refineries, some coarse sugar being imported from Peru, tanneries, furniture, and shoe factories, with others commonly found. A cement factory pays a quarterly dividend of 5 per cent, a brewery gave a semi-annual dividend of 15 per cent. A new one is planned for Arica. More than $12,000,000 are invested in the leather industries, with an output worth $20,000,000. Twenty-two or more shoe factories are scattered in various cities. Clothing and textiles are next in value of production, followed by $10,000,000 worth of furniture and woodwork. Ship building is important.

Investments

Activities in Chile in the immediate future for which about $15,000,000 have been appropriated by the Government include work or equipment on railways, roads, bridges, barracks, waterworks, sewer systems, building construction, and port works. These furnish opportunities to which many others may be added. The possibilities in agriculture, fruit raising and canning are obvious; those in fisheries, saw mills and lumber, development of water power, in factories of various kinds may be noted, as well as for large capitalists in mining. A $10,000,000 contract for the electrification and equipment of four zones of the Government railways has been concluded with a combination of several American interests.