The second zone is that which begins immediately south of the rainless one and which extends another third of the length of the country down the coast. It consists of a coast range of mountains timbered with conifers and small hardwood trees, the mountain peaks rarely rising above three thousand feet in altitude. Beyond them is the great longitudinal valley from thirty to fifty miles in width. Here are situated most of the towns and two thirds of the country's population. This is the granary of the republic, and it is here that are located the great vineyards, the fruit farms, and the small manufacturing industries. This zone has a sufficiency of annual precipitation but climatically is divided into two seasons, the dry and the rainy one. During the winter months from May to October there are frequent rains while the rest of the year it seldom rains, although showers are likely to occur at any time, these being of more frequent prevalence the farther south one goes.
The remaining zone which reaches the remaining distance of the coast line as far as Cape Horn is an archipelago and a narrow strip of land extending inland about fifty miles to the Argentine frontier. This district is a mountainous mass, indented by many bays and fiords, well timbered, but so steep are the mountains that come down to the water's edge that there are no towns and but few places where habitations can be built. A great part of this region is unexplored. It undoubtedly is rich in mineral deposits but its inaccessibility has kept it from being developed. The annual rainfall is great but this diminishes towards the southern apex. In winter there are heavy snowfalls, while the tops of the mountains possess innumerable glaciers.
Chile is rich in minerals. Some of its mines have been worked ever since the Spanish conquest and new fields are constantly being opened. In the arid north copper is found behind Gatico and at Chuquicamata, the Guggenheim interests being at the latter place. There are copper mines in the provinces of Atacama, and Coquimbo, and at the headwaters of the Cauquenes River in the Province of Colchagua is the large productive mine of the Braden Copper Company. There are iron mines at La Higuera in the Province of Coquimbo and coal mines at Lota, in the Province of Concepcion. Silver and gold is found throughout the whole republic in paying quantities. Next to nitrate and minerals, vineyards play the most important part. From the Province of Aconcagua southward 250 miles, grapes play a great rôle, yet but little wine is exported. The southern provinces and the Central Valley produce an abundance of wheat, rye, and barley, but owing to an inadequate market, it is a gamble whether the farmer will lose or make a profit on his crops.
What Chile needs more than capital is immigration. Her increase in population has been small, likewise her immigration. The European immigrant lands at Buenos Aires and seeks employment in Argentina, while if he crossed the Andes into Chile, he would find a land where he could make a better living for himself and buy some of the most fertile land in this universe for a cheap price. Southern Chile has a large population of German descent who have done remarkably well, but the great number of Spaniards and Italians who yearly immigrate to the republics of South America's eastern littoral are here conspicuous by their absence.
In manufactures, the breweries are Chile's largest industry. There is a brewery trust in Chile, like in Argentina, but it is nowhere near so strong nor so well capitalized. It consists of La Calera Brewery at La Calera, the Valdivia Breweries Company at Valdivia, the Andres Ebner Brewery at Santiago, the Floto Brewery at La Serena and the Limache-Cousiño Brewery at Limache, which is the largest in Chile. A fact which shows that the trust is not strong is that all the independent breweries have done well. Aubel's Brewery at Osorno, and Keller's Breweries at Concepcion and Talca are large ones. There are many small breweries such as Petersen's at Punta Arenas, Julius Jenson's at Chillán, and Horstmann's at Santiago. Much beer is drunk in Chile, and there is plenty of grain, so after the war there will be an excellent opportunity of starting a brewery. The only drawback has been the supply of malt and hops which comes from foreign countries and which the brewers have been unable to procure in sufficient quantities in recent years owing to the freight shortage.
Santiago is a city of over four hundred thousand inhabitants yet only has two breweries, that of Ebner which belongs to the trust and that of Horstmann which does not. Horstmann before the war got a supply of hops large enough to last him six years if his brewery ran at its full capacity. He is an old man who has amassed all the money he wants, and his heirs have no inclination to continue the business. In 1917 he could have been bought out at a very reasonable price and I believe the same holds true to-day. His business has been a family trade and his beer is said to be the best in Chile. Since there is small likelihood of Chile ever going prohibition, here is a chance for somebody. Valparaiso has no brewery on account of its water being too hard. I have no doubt but that a brewery at either Chillán, which has only one small brewery, or at Curicó which has no brewery, would pay. Temuco, Los Angeles, San Fernando, and Linares could support breweries. In northern Chile there are no breweries excepting one at La Serena, yet either Antofagasta or Iquique would be ideal spots for one. The water in these cities has to be piped in from a distance of 150 miles, yet since there is sufficient to supply other establishments there would be enough to supply breweries. Copiapó is likewise well situated for a brewery. It could be made the central distributing point for other towns such as Antofagasta, Taltal, Chañaral, Vallenar, and Huasco. The output could be shipped to its seaport Caldera, and thence along the coast to the other towns in case of a shortage of freight cars. In Chile as in the United States the breweries buy saloon licenses to put into business men who handle only their goods, but unlike in the United States, saloons play no part in politics, and with the exception of the sailors' dives in the seaports they are run in strict accordance with the law. The violations that I have mentioned in this book occurred in Antofagasta which has the reputation of being a notoriously tough town.
A business with a future and which could be made profitable is an enamel works and tin-ware factory. In all South America, business signs, doctors' signs, street names, and house numbers are of enamelled tin. Most of the kitchen ware, bathtubs, and chamber sets are of the same article. There is an enamel ware works at Valparaiso and another one at Santiago. The latter is the Esmaltadera Chilena, managed by Don Federigo Reddoehl. This would be a paying proposition but so far lacks capital. The heaviest interest is owned by a senator named Charme, but the other stockholders could be bought out at par. Chile is dependent upon the United States for its sheet-iron and tin supply; the war has put a damper on this, but as soon as shipments can be renewed, there is no reason why an enterprise of this kind would not be a good investment.
Unfortunately Chile's timber is hardwood, so lumber mills would not pay. It is dependent on its lumber for building purposes from the United States. Although there is much hardwood, the floors are tile or cement, which is much cheaper there than oak or maple, and since the ordinary pocket-book cannot afford to pay the price of the latter, a hardwood flooring plant would be negative.
In the south there are plenty of small flour mills but there are but few in the Central Valley. Since much grain goes to waste and since flour is in demand, more of these small mills could be started, but none of the cities near to the grain supply are large enough to warrant large mills.
Chile is not a stock country. Cattle are dear, likewise the hides. Therefore a shoe factory would not pay.