Salvador of the Twentieth Century

by Percy F. Martin

These figures refer to all the auriferous silver, copper ore, gold bars, gold and silver ore, lead ore, gold slimes, gold and copper slimes, gold and silver slimes, and lead, which had been mined in the country during the period mentioned.

I should say that modest fortunes await the enterprising capitalist—foreign for choice, since as a rule he is less easily discouraged by a run of temporary ill-luck—who exploits some of the antiguas—i.e., the ancient copper workings of the Salvadoreans which have been abandoned owing to lack of capital or labour. I know of many such opportunities which exist in the Department of Morazán, where already a considerable group of foreign companies and private individuals are working with occasionally remarkable success. With the modern machinery and reduction plant now available, certainly the greater part of these ancient workings might be made to pay something as a return upon the amount of capital expended upon them. To-day, also, there exists a first-class cart-road leading from these mines to the principal town, and thus transportation, which was formerly both costly and difficult, is now a matter of comparative facility.

In some of the iron ore mines one can find the old and wasteful Catalan system of reduction still in use, and yet with proper treatment, as was sufficiently proved when a trial shipment of ores was sent to England some years ago, as much as 87 per cent. of magnetic iron can be obtained from these ores. And the quantity of ore which they contain is apparently inexhaustible. I know of but two or three small smelters at present existing in Salvador, and, naturally, the industry of copper-smelting carried on in this primitive and limited manner proves anything but profitable. I am of opinion that the Government would encourage any serious attempt upon the part of foreign capitalists to exploit the unquestionably rich copper deposits of the Departments of Chalatenango and Cabañas, and such an enterprise might well be worth the attention of some British or United States mining capitalists. The latter are usually the more enterprising and plucky.

About twelve years ago there was registered in London a mining property covering 546 acres in Salvador, comprising a number of gold-bearing properties, with the title of Butters' Salvador Mines, Ltd., the principal owner being Mr. Charles Butters, a well-known American engineer, and who is the chairman of the company. From the very commencement of its operations, the company seems to have been eminently successful, and was able to distribute its first dividend in 1903, when 5 per cent, was paid. Since that date the dividends have varied from 40 to 80 per cent., that for 1910 being at the rate of 45 per cent., which compared with a similar rate for the previous year, but with an additional bonus of 23³⁄₄ per cent. On account of the present year, 15 per cent. has already been paid as an interim dividend, and, according to the recently-issued report, the ore reserves are now estimated to amount to 108,000 tons, and to carry a profit value of £400,000, or more than twice the value of the entire share capital.

At the end of last May, dividend "No. 87" of 3³⁄₄ per cent. (= 9d. per share) was declared by the Board of Directors, who at the same time informed the shareholders that dividends will in the future be distributed quarterly instead of monthly, as has been customary in the past.

1. View of Butters' Divisadero Mines, Department of Morazán, Salvador.

2. Butters' Salvador Mines, Santa Rosa, Department of la Unión, Salvador.

The inherent wealth of these mines is clearly demonstrated when one recollects that, in spite of the able and experienced management that has been the rule, many difficulties have had to be encountered and overcome, not the least of which has been the lack of labour, and, during the early part of last year, some serious trouble with the boilers at the mines. The consistently cautious policy which the directorate have adopted, notwithstanding the large dividends which they have been able to recommend, has resulted in their establishing the mines upon a thoroughly solid and business-like basis. It is worth remarking here that the whole of the existing plant and equipment, which are as complete and efficient as any to be found upon the American Continent, have been paid for out of revenue, and they stand in the books of the company at the present time at the ridiculously low price of £2,000.