At the port of Gallegos, I had a long conversation with Edelmiro Mayer, Governor of the Patagonian territory of Santa Cruz. The greater part of this talk was devoted to the sheep business, the one productive industry of the region that now pays a profit to all having capital in it. Of the stories that he told a few will serve as samples illustrating the growth of the sheep business in this new country.
John Hamilton and James Saunders, British subjects, went to Patagonia in 1885, arriving there with, £500 each and a thorough knowledge of the sheep business. They bought some land and rented some more from the Government, and expended the rest of their money in a flock of sheep, uniting their funds as partners. As time went on, and they were able to sell wool, they invested their gains in more sheep and more land. In the season of 1893 they sheared 42,000 sheep and were the owners of fifty-eight square leagues of land, of which twenty leagues were paid for in full, and the mortgage on the rest was in such shape as to give them no uneasiness. By the estimate of Gov. Mayer the sale of the wool from the 42,000 sheep in 1894 paid the owners just $42,000 gold clean profit above all the expenses.
Another Englishman—I have lost his name—went to Patagonia in 1886 with no capital save his knowledge of the sheep business and a good reputation. Having abundant testimonials as to his character and qualifications, he got sheep and the use of land on credit: a capitalist was found to grub stake him, as the miners say. In 1893 this man sold out his accumulations for £26,000, and with his wife and children went back to England to live like a lord.
I saw a man at Gallegos who had gone there to work as a carpenter. He did not have $10 when he arrived—in fact, he went there in the steerage of one of the Government transports. He had been in Gallegos less than three years, and he had a family to support out of his earnings meantime. Nevertheless, he was the owner of 1000 sheep, of which two thirds were ewes. In the ordinary course, as matters run, he will be a man of independent income in five years.
There are three sailors in the country, who, within five years, were wrecked on the coast and landed with nothing but the clothes on their backs. They went to work on sheep ranches, and now have several thousand sheep each.
"And how many men have gone into the sheep business and failed?" said I, when Gov. Mayer had told of these things.
"Not one."
"Have any big companies tried it?"
"Yes, down on the Chili territory."
"Have any of them failed?"