UNIVERSITY OF CALIFORNIA AT LOS ANGELES SOUTHERN BRANCH, UNIVERSITY OF CALIFORNIA, , IU>S ANGELES, CALIF. DEPARTMENT OF COMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE SPECIAL AGENTS SERIES No. 206 COLOMBIA A COMMERCIAL AND INDUSTRIAL HANDBOOK BY P. L. BELL Trade Commissioner PRICE, 70 CENTS Sold by the Superintendent of Documents, Government Printing Office, Washington, D. C. WASHINGTON GOVERNMENT PRINTING OFFICE 1921 3222" CONTENTS. Page. Letter of submittal , 13 Introduction 15 General economic position, past and present 15 European versus American trade with Colombia 16 Language 17 Currency 17 Weights and measures 18 Postage 19 Telegraph, cable, and wireless service 21 Geography, topography, and climate 25 Geographic position 23 Area and boundaries 23 Summary of topographical conditions and their effect 24 Topographical features, divisions, and characteristics 25 Western Cordillera 26 Central Cordillera 26 Eastern Cordillera ." 26 River systems 27 Goajira Peninsula 29 Climate and rainfall 30 Climatic zones 30 Climate of the Caribbean coast 31 Climate of the interior . . 32 Effect on trade of climatic variations 33 Climate of the ' ' llanos " 33 . Population and living conditions 34 Statistics of population 34 Racial characteristics of the people 35 Inhabitants of Caribbean coast regions 35 Inhabitants of Pacific coast 38 Inhabitants of the interior 38 Importance of racial considerations from a commercial standpoint 40 Living conditions 40 Sanitation and health 42 Sanitary measures at Santa Marta and Sincerin 43 Menace of xnalaria and efforts to combat it 43 Yellow-fever epidemics Conditions at Buenaventura and Cartagena. . 44 Sanitary and hygienic measures by individuals 45 Health conditions in the interior 45 Improvements under way or contemplated 46 Travel outfit, clothing, etc , 46 Tuberculosis 47 Education in connection with hygiene 47 Government, education, and national finance. 48 Government 48 Legislative branch 48 3 4 CONTENTS. Government, education, and national finance Continue?.. Government Continued. I 1 ,.* . Executive branch ' s Judicial branch ) Military force 49 Consular and diplomatic corps Foreign representatives 01 Col - . ^.. 50 Constitution 50 Taxation and revenues 51 Codes of law 51 Education 52 Public school system 52 Influence of young men with American training 53 Educational statistics 53 Higher education 54 Character of periodicals General cultural position of Colombia 55 National finances 55 History of Colombian finances and banking 56 Present condition of currency and Government finance 58 Financial difficulties of the Government Internal loans 60 Bank loans 61 Financial conference 61 Failure of foreign loans during the war 62 Outline of fiscal condition 63 External debt 65 Internal debt 69 General conditions affecting national industries 73 Forest products 76 General survey of resources 76 Medicinal plants 77 Quinine 77 Ipecac 78 Sarsaparilla 78 "Balsam of copaiba" and "balsam of Tolu" 79 Other medicinal plants and products 80 Resins, vegetable waxes, and varnishes 80 Oilseeds and palm kernels 81 Coconuts 82 Tanning barks and extracts ." 83 Chicle 85 Rubber 87 Tagua (vegetable ivory) 89 Indigo 92 Hardwoods and cedar 92 Government revenue from forest Export statistics r 94 Mining 96 Introduction 96 General description of mining in Columbia 97 Copper mines 101 Goldmines 102 Principal companies 102 Area of gold production 103 Platinum mining 105 Area of platinum production .* 106 Formations 107 Methods employed in the industry 107 CONTENTS. 5 Mining Continued . Platinum mining Continued.- Page. Foreign dredging companies 108 Trading methods and prices 108 Shipments of platinum to United States 109 Coal deposits 109 Mineral exports from Colombia as a whole 113 Metal exports from Barranquilla 115 Metal exports from Cartagena 115 Metal exports from Buenaventura and Tumaco 116 Mining laws Possession of claims and titles 116 General provisions 116 Mines in Government lands 117 Mines outside of Government lands 117 Manner of acquiring mining property in Colombia 118 Taxes on mining property 119 Legal extent of claims 119 Petroleum 120 Introduction 120 Regions in which oil is found 121 Surface indications 121 Difficulties of prospecting 122 Topography and geology of the oil districts 123 Caribbean coast region 123 Cauca-Sinu region 124 Santander formations 125 Oil-land concessions and developments in the past t 126 Martinez interests Standard Oil Co 126 Armella-De Mares concession east of Cartagena 127 De Mares concession in Sant&nder Work of Tropical Oil Co 128 Stimulation of interest Miscellaneous activities 130 De Barco concession in Norte de Santander 130 Oil-land titles and legislation 131 Conditions in Spanish colonial times 131 From establishment of independence to 1919 132 Recent legislation and present status 134 Summary of petroleum prospects 135 Operating costs and labor conditions 136 Cattle raising 138 Resum6 of general conditions 138 Varied character of the industry 139 Opportunity for foreign capital in cattle raising 141 Market for serums, condition powders, etc 143 Colombian exports of live stock and animal products 143 Method of trading in hides and skins 147 Live-stock breeding 147 Hog raising 148 Dairying Imports of cheese and butter 149 Agriculture 151 Introduction 151 Topographic and climatic agricultural divisions 152 Products of various zones ,. 153 Resume' of conditions 154 Opportunities for development Future prospects 155 Land titles and land laws. . 156 6 CONTENTS. Agriculture Continued. Page. Necessity for large investment 1 > Increase in prices of agricultural products I .\s Colombia's exports of vegetable products '. *158 Cacao 160 Rice Hiii Tobacco 1 04 Coffee 166 Importance of coffee situation as indicating sales possibilities 166 Effect on trade conditions 167 Export statistics 168 Quality of Colombian coffee 168 Regions of production Grades, prices, shipments, etc 168 Increased benefit to small producers 1 72 * American purchases of Colombian coffee 172 Conditions determining prosperity of industry 173 Market for agricultural implements and machinery 175 General methods of conducting agricultural operations 175 Tools and implements employed 176 Prospective market for gasoline motors and equipment 1 77 Colombian imports of agricultural implements and machinery 1 78 Necessity of proper packing and explicit instructions 178 Domestic manufacturing 180 Statistics of industrial enterprises 180 Opportunity for expansion 180 Panama-hat making and exportation 181 Bags and sacks Colombian fiber resources 182 "Fique" and "pita" fibers and their uses 182 Imports of jnte and bags 184 Economic value of native fibers 184 Economic characteristics of nine commercial districts 185 Introduction: Necessity for treating each district separately 185 Santa Marta and commercial district 187 Location of city Climate Population 1 S7 Commercial region tributary to Santa Marta, 187 Living conditions Public utilities 188 Import trade Stocks carried 189 Manufacturing 1 '.() Agriculture 190 Fishing 191 Mineral deposits 191 Forest resources 1 92 New industries and water-power development 193 Supply, quality, and wages of labor 193 Banking 193 Possibilities of trade development 1 !U Harbor and docks 195 Railway service and proposed extensions 1 96 Barranquilla district, Department of Atlantico, and Magdalcna River 197 Location of territory 197 Climate and rainfall 198 Population and living conditions 1.98 Schools Labor conditions 199 Agriculture and live stock 199 Coal and petroleum resources 200 CONTENTS. 7 Economic characteristics of nine commercial districts Continued. Barranquilla district Continued. Page. Manufacturing Banking 200 Public utilities. 201 New suburb for Barranquilla Hotel accommodations 201 Harbor facilities at Puerto Colombia 202 Barranquilla-Puerto Colombia Railway 202 Magdalena River route to the interior 203 Volume of import business at Barranquilla 208 Cartagena and commercial district 209 Location and topography 209 Climate and rainfall 210 Population and living conditions 210 Education 211 Characteristics and trade relations of business men 211 Increasing demand for new goods 212 Business methods Handling of imports and exports by Syrians 212 Commercial territory of Cartagena 213 Highway transportation and road construction 214 Importance of the "Dique" 214 Present railway equipment and proposed construction 215 Harbor and port facilities 216 Water transportation by way of Sinu and Atrato Rivers 217 Ocean and Magdalena River freight service 218 Agriculture 218 j. Immigration needed Labor laws ' 222 Forest products of region west of Cartagena 222 Petroleum 224 Platinum and gold mining 224 Manufacturing 225 Exports 226 Currency and banking 226 Medellin and commercial district 226 Location, topography, and climate 226 Population and racial characteristics 227 Living conditions i 228 Education 228 Finance and banking 229 Principal cities and commercial territory 231 Manufacturing 232 Railways 236 River navigation 237 Agriculture 237 Cattle raising 238 Mining 239 Merchandise most in demand in Medellin 239 Methods of distribution 240 Bogota and commercial district 240 Location, area, and population 240 Topography, climate, and rainfall 241 Racial characteristics of inhabitants 242 Education '. 242 Living conditions in Bogota 242 Public-utility service in Bogota 243 Banks and insurance companies 243 8 CONTENTS. Economic characteristics of nine commercial districts Continued. Bogota and commercial district Continued. Page. Transportation between Bogota and the coast 244 Freight traffic on Magdalena River 244 Dorada Extension Railway 245 Girardot Railway .' 215 Sabana Railway 246 Distribution of goods from Bogota 246 Northern and Southern Railways 247 Tolima Railway 247 Proposed new railway between Ibague and Ambalema v 248 Agriculture 248 Live-stock industry 250 Mining 250 Manufacturing 252 Volume of trade 253 Trade methods 254 Importance of care in packing 254 Position of American as compared with European goods 255 Manizales and commercial district 255 Geographic position and area 255 Topography ' '. 256 Climate and rainfall 256 Population, racial characteristics, and living conditions 257 General economic factors 257 City of Manizales '. 258 Education 258 Publications 258 Banking 258 Principal cities and commercial territory 260 Volume of business 260 Manufacturing 261 Transportation 262 Departmental finances 265 Agriculture 265 Mining 267 Trade conditions and development methods 268 Cali and commercial district 268 Location and topography 268 Climate and rainfall 269 Area, population, and schools 270 Economic resources and development 270 Departmental finances 271 Cali and its commercial radius 271 Pacific Railway 272 Navigation on Cauca River 273 Road and trails 274 Cattle raising '. 274 Agriculture 275 Manufacturing 275 Coal deposits 276 Port of Buenaventura 277 Buenaventura as distributing center for northern mining regions 278 Gold and platinum produced in southern Choco territory 278 Volume of business at Buenaventura. . 279 CONTENTS. 9 Economic characteristics of nine commercial districts Continued. Cali and commercial district Continued. Page. Customs revenue 279 Parcel-post imports 280 Banking facilities in Cali Chamber of commerce 280 Advertising mediums and methods 281 Future of American trade with Cali district 281 Commercial district of Tumaco 282 Bucaramanga and commercial district 285 Location, topography, and climate 285 Area, population, and schools 286 Volume of trade 286 Trade distribution and methods 287 Trade routes 287 Puerto Wilches-Bucaramanga Railway 288 Banking 288 Agriculture and live stock 289 Chicle industry 289 Attempt to introduce silk culture 289 Cucuta and commercial district 290 Location and general characteristics 290 Area, population, and climate : 290 ' Appearance and public utilities of Cucuta 290 Commerce and trade 291 Means of communication 293 Transportation 295 Railways ' 295 Previous experiences and present opportunities in railway building. . 295 Contemplated line from Pacific coast to Bogota 296 Railway laws 298 Statistics of operation of all Colombian railways 300 River navigation 301 Public highways 301 Principal roads Technical conditions governing construction 301 Recent road legislation 302 Highway projects of National Government 303 . Work by departmental governments 305 * National revenue for roads 307 Market for road-building machinery 307 Market for motor vehicles 308 Foreign trade 311 Introductory review 311 Conditions affecting establishment of closer relations with United States. . 312 Growth of foreign trade 313 Statistics of commerce in a normal year 313 Prewar trade conditions 315 Conditions after the war 316 Statistics of commerce in 1918 318 Position of United States in Colombian trade 320 Customs tariff and import duties 321 Introduction : General considerations 321 Development of present tariff system 323 Customs duties and charges 323 Surtax 324 . Customs charges 324 10 CONTENTS. Customs tariff and import duties Continued. Page. Customs procedure 325 Consular requirements 325 Necessity of care in filling out invoices. 325 "To order " shipments 325 Manifests 326 Appraisement and fines ? 326 Liquidation and payment of duties 327 Appeals 327 Exemption from duty 327 Temporary admission 328 Parcel-post imports 328 Internal revenue and river tax 329 Trade-marks and patents 331 Banks and banking . 333 List of native and foreign banks ; . . . 333 Commercial effect of American branch banks in Colombia 334 Former banking conditions and recent progress 334 Banking laws of Colombia 334 Opportunity for new bank at Ttimaco 336 Practice of handling bills of exchange with Colombia 337 Insurance. . . ., 339 Commercial practices and requirements 341 Agencies 341 Importance of export commission houses in Colombian trade 342 Direct factory representation 343 General conditions affecting trade methods 343 Advantages of trade with United States Outlook for future 344 Advantage of proximity 344 Necessity for adequate shipping facilities and careful handling of goods 345 Study of special needs and conditions Attention to detail 345 Credit information 346 Education in packing for export Cooperation between manufacturers and exporters 346 Marking of samples 347 Buying seasons Importance of information on conditions 347 Protection of wholesaling importers 348 Essentials for retention of American trade 349 Parcel-post trade with Colombia 350 Credit terms 352 Loans as trade factors 354 Letters to consuls, trade commissioners, and Colombian firms 355 Catalogues 357 Samples 357 Effective methods of advertising 358 Aliens Naturalization Immigration 360 Markets for specific classes of merchandise 362 Textiles .- 362 Domestic textile industry 362 Relative position of foreign textiles in Colombian market 362 Exclusive brands Protection of large importers 364 Class and quality of textiles 365 Statistics of imports 365 Packing of textiles for Colombia 368 Commercial practices in textile trade 368 CONTENTS. 11 Markets for specific classes of merchandise Continued. Page Drugs, medicines, and other chemicals 368 Use and packing of chemicals 369 Statistics of imports 370 Paper and paper products 371 \ Construction materials and machinery Furniture 373 Appendixes: A. Requirements to be observed in shipping goods to Colombia 375 Steamship lines 375 Bills of lading 375 Colombian consular requirements 375 Mistakes to be avoided 377 B. Proper packing for shipments to Colombia 378 Relation of packing to customs duties 378 Effect of incorrect packing methods , . 378 Necessity of implicitly following instructions ' 379 Export houses and factories 380 Advantages of proper packing 380 Packing specifications for Colombia 381 Use of fiber cases 386 Specific examples of unsatisfactory American packing 386 Importance of marking 387 Cargo handling by steamship companies and others 388 Handling of goods in Colombia 388 Mule transport 388 C. Regulations and practices affecting commercial travelers 390 Passports Powers of attorney 390 Licenses 390 Customs treatment of samples 390 Miscellaneous 391 D. Travel notes 393 Santa Marta to Barranquilla 393 Caribbean coast to Puerto Berrio 394 Condition of river 394 Steamers and service 394 Equipment for river travel 395 Department of Antioquia 395 Hotel Magdalena 395 Town of Puerto Berrio 396 Antioquia Railway: Nus Division 396 La Quiebra Pass 396 Baggage 397 Antioquia Railway : Force Division 398 Amaga Railway 398 Kinds of clothing needed 399 Interior travel 399 Trails 400 Health conditions 401 Medellin to Bogota 401 Distances to be traversed 401 Time necessary for journey 401 Services of baggage agencies 402 Interdepartmental customs inspection 403 Precautions against pilferage 403 12 CONTENTS. Appendixes Continued. I). Travel notes Continued. Medellin to Bogota Continued. Pago. Details of the trip: Medellin to Puerto Berrio 10:1 Magdalena River, Puerto Berrio to La Dorada 403 Rail journey from La Dorada to Beltran 404 Magdalena River, Beltran to Girardot l< >"> Rail journey from Girardot to Bogota 406 Bogota 406 Travel outfits 407 Magdalena River to Manizales 407 Start from Mariquita 407 Equipment 408 The trail 408 Cost of trip 409 Manizales to Cali 409 Distances covered and time consumed 409 Manizales to Pereira 409 Pereira to Cartago 410 Cartago to Buga la Grande 410 Ride by automobile to Palmira 411 Pacific Railway, Palmira to Cali 411 Equipment for trip 411 Steamer service on Cauca River 412 Conditions at Cali 412 E. Monographs and trade lists relating to Colombia 413 Department of Commerce monographs 413 Trade lists available 413 Index 415 ILLUSTRATIONS. Page. Fig. 1. National Capitol of Colombia at Bogota facing 1 2. Government building, Santa Marta facing 36 3. Santa Marta Railway Co. 'a shops and wharves at Santa Marta . . facing 37 4. Plaza San Nicolas, Barranquilla (Banco Mercantil at right) .... facing 90 5. Street scene, Barranquilla facing 91 6. River boats and dugouts at water front, Barranquilla facing 91 7. General view of Cartagena facing 162 8. Steamers on Magdalena River facing 163 9. Map of Santa Marta, Barranquilla, and Cartagena regions 197 10. Map of Medellin region 227 11. Medellin station of Antioquia Railway facing 236 12. Medellin station of Amaga Railway facing 236 13. Plaza Berrio, Medellin facing 237 14. Hotel Magdalena, Puerto Berrio facing 237 15. Map of Bogota and Manizales regions 241 16. Calle Real, Bogota facing 242 17. School of Mathematics and Engineering, Bogota facing 243 18. Map of Cali region 269 19. Map of Bucaramanga region 285 20. Map of Cucuta region 291 21. Parque de Bolivar, Manizales facing 296 22. Train on Pacific Railway, Buenaventura to Cali facing 297 23. Steamer on Cauca River facing 297 Map of Colombia inside back cover LETTER OF SUBMITTAL. DEPARTMENT OF COMMERCE, BUBEAU OF FOREIGN AND DOMESTIC COMMERCE, Washington, April 15, 1921. SIR: There is submitted herewith a handbook of the Republic of Colombia, by P. L. Bell, a trade commissioner of this Bureau. The information presented in it was obtained by Mr. Bell during the course of a thorough and comprehensive personal investigation in the coun- try. It is believed that American business men who are interested in selling merchandise to Colombia, purchasing its products, or in- vesting in its enterprises will derive substantial benefit from a study of the data appearing in the pages of this book. This is one of a series of handbooks on South American countries to be issued by the Bureau. One entitled " Paraguay: A Commercial Handbook," by Trade Commissioner W. L. Schurz, has recently been published, and another, on Bolivia, will soon come from the press. Trade Commissioner Bell, the author of the present monograph on Colombia, is preparing a handbook of similar character on the neigh- boring Republic of Venezuela. Respectfully, C. E. HERRING, Acting Director of Bureau. To Hon. HERBERT HOOVER, Secretary of Commerce, 13 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. INTRODUCTION. GENERAL ECONOMIC POSITION, PAST AND PRESENT. Possessing the unique distinction among the countries of South America of having a coast line on both the Atlantic and the Pacific Oceans, Colombia is also the nearest of the South American Republics to the United States. Occupying a large territory (sixth in area in South America) in the northwestern part of the continent, Colombia lies at the very gates of the Panama Canal, the country's geographical position being the most favorable for commerce of any in South America. It has a coast line of about 465 miles on the Pacific Ocean and of about 640 miles on the Caribbean Sea. The distance from Cartagena to New York is only 1,900 nautical miles (as compared with 4,500 miles to Liverpool) and to Colon at the Panama Canal only 266 miles by sea. Possessing also a great variety of natural resources, and occupying third place in population, Colombia was, at one tune, the best known country in South America and the foremost in development. It was the richest colony of Spain in South America, Cartagena being the principal seaport of the continent during the early colonial period. When the sovereignty of Spain was cast off more than -a century ago, great predictions were made concerning the achievements for which the country was destined, and Colombia became very well known to Europe, receiving the attention of scientists and business men who understood its potentialities. For various reasons, these hopes of development and progress have not been realized to the fullest extent.' Tne country has been neglected by foreign capital and immigration and has been outdis- tanced by other nations of the continent. But, even under unfavor- able conditions, progress in commerce and industry has been con- stant, showing a steady modern development; and during the last 15 years the country has entered upon a new epoch of economic activity in which the exploitation of rich natural resources in cattle and sugar-cane lands, coal deposits, and petroleum bodies, and the increase in production of such products as coffee, bid fair to make the development of Colombia rival that of Argentina and Mexico in the near future. Notwithstanding its proximity to the United States, Colombia's commercial and intellectual intercourse in the past was mainly with Europe. With few exceptions, such development of transportation and resources as was carried out in the country was effected with European capital, and European influence predominated in the busi- ness life of the country up to the beginning of the World War. The United States has been for many years the principal market for 15 16 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Colombian exports of coffee, hides, etc., but this trade connection did not create a full reciprocity in exchange of products between the hvo countries. Conditions brought about by the war have changed these factors very much so much that, from buying goods in the United States of necessity during the war, Colombian merchants are taking on permanent lines of American goods and the business element of the country is looking to the United States as a source of capital with which to develop natural resources, transportation, and baouy needed public utilities, as well as domestic manufacturing industries. During and immediately following the war there were increasing visits of Colombian merchants to the United States, where they became better acquainted with American manufactures and products and with American business methods. Colombia was very little known in the United States prior to the war, but this better acquaintance, com- bined with the prosperous condition of Colombia, is rapidly bringing about a widespread knowledge which will surely result in still greater intercourse and the cementing of mutual interest. A very important factor in this development of better relations will be the interest now being taken by American capital in the country's natural resources of petroleum and coal, which will certainly be followed by aid in the construction of badly needed means of communication, leading, in turn, to' still further development of the resources of the country in the interior. Comparatively, Colombia's commerce is not large at the present time, out its growth has been steady in the past and great strides have been made during the last few years. The new spirit of the country, stimulated by prosperity and increased wealth, will inevi- tably result in industrial, educational, and civic growth, and the last- ing commercial and business friendships now being formed with the United States will certainly bring a large and increasing trade, which should be fostered in every way. EUROPEAN VERSUS AMERICAN TRADE WITH COLOMBIA. Europe knew and valued this trade with Colombia for many years, and, though the United States took the* bulk of Colombia's exports, less than 50 per cent of Colombia's total imports of foreign merchan- dise came from the United States prior to the war. In 1915 Colombia purchased 52 per cent of its imports in the United States; in 1916, 55 per cent; in 1917, 56 per cent; while in 1918 it is estimated that the United States furnished more than 80 per cent of the total imports, this percentage amounting to more than $11,000,000. Of Colom- bian exports the United States took 78 per cent in 1915, 88 per cent in 1916, 90 per cent in 1917, and 93 per cent in 1918. It may be predicted that, when statistics for 1919 are available, the percentage of imports purchased in the United States during that year will surpass previous percentages. During 1919 buying in the United States was very brisk on account of the favorable coffee situation in Colombia and the continued disruption of industry in Europe. In considering the future aspects of Colombian trade with the United States, one must remember the long years of commercial association with Europe, during which connections became estab- lished on a basis of mutual understanding and acquaintanceship, INTRODUCTION. 17 and the fact that there is no background of the past upon which to base, to any such extent, Colombia's trade with the United States. Colombian merchants appreciate the treatment long received from Europe, and, since the war has given them the opportunity of know- ing both markets, the future volume of trade with the United States will depend upon the ability of the American manufacturer and ex- porter to meet European competition when conditions return to normal and to foster the trade by means of a closer study of Colom- bian commercial conditions and necessities and an endeavor to cement personal relations in every way possible. The United States possesses the great advantage of closer prox- imity to Colombia (the market centers of Europe being nearly two and one-half times farther than the American) , and also the important advantage of being the best market for Colombia's exports an im- portant factor on which to base future trade relations. The principal factors in determining the volume of the future trade of Colombia with the United States may be summarized as follows: 1. The ability of the United States to continue to provide rapid and cheap means of ocean transportation to and from Colombian ports. This also implies ability to increase this ocean transport service to meet the growing needs of Colombian commerce. 2. The ability to furnish credits and provide a system to take care of the financing of Colombia's trade, both export and import this being necessary on account of the limited capital available in Colombia in proportion to the country's resources. An important determining factor will also be the ability and willingness to furnish the capital and credit for the development of transportation and public improve- ments. 3. Last, but not least, the willingness on the part of American manufacturers to study the needs and conditions of the country (separating it into the different commercial districts formed by the topography of the interior), to pay more attention to detail, and to foster friendly relations to the maximum extent. LANGUAGE. The language of Colombia is Spanish. Many business men under- stand English, however, and there is an increasing desire on the part of the younger element to learn English. All business correspondence should be in Spanish unless otherwise indicated. A knowledge of Spanish is necessary for the transaction of general business in the country and is indispensable for the salesman traveling hi Colombia. CURRENCY. Colombia is on a gold-standard basis, and its monetary system is modeled upon those of England and the United States, the unit being the gold coin (of 5 dollars) naving the same weight and fineness as the English sovereign. One hundred cents make a dollar, equal in value to one-fiftn of the pound sterling, or $0.9733 United States currency. 1 i The actual exchange rate of the Colombian gold dollar, in terms of United States currency, since the beginning of 1919 has been given as follows by the Director of the Mint, United States Treasury Depart- ment: Jan. 1, 1919, $1.15; Apr. 1, 1919, $1.08; July 1, 1919, $0.91; Oct. 1, 1919. $1.01; Jan. 1, 1920, $1.015 Apr. 1, 1920, $0.9615; July 1, 1920, $0.9733; Oct. 1, 1920, $0.8333; Jan. 1, 1921, $0.87; Apr. 1, 1921, $0.84. 37558 21 2 18 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The coins are the 5-dollar gold piece called the "Condor," the 10-dollar gold piece called the "Condor Doble," the 50-eent silver coin or half dollar, the 20-cent silver coin, the 10-cent silver coin, and the 5-cent nickel piece. There is also the 1-cent copper coin called the " centavo." Of paper money there are 5 and 10 dollar bills of the National Govern- ment in general circulation, and in some parts of the country, notably around Bogota, another form of paper is in circulation, known as "c6dulas hipotecarias," these being mortgage notes issued by certain banks in denominations of 1, 2, 5, 10, 20, and 50 dollars. A new de- cree in 1919 made English paper money legal tender and acceptable by the customhouses, but this act was not well received by the gen- eral public and the English paper money could not be put into circu- lation except at a heavy discount of 30 per cent. In June, 1919, another decree made American gold coin at that time coming into the country acceptable at par with Colombian and English gold coin at the customhouses, the effect being to put Ameri- can gold coin into general circulation throughout the country at par with Colombian and English gold coin, although the American gold coin is worth intrinsically about 14 cents more on every 5 dollars. At the present time there is no tangible reserve behind the Govern- ment issues of paper currency, and there is a shortage of paper circu- lating medium which has been met with several expedients. No banks, at present, have the right to issue paper currency other than the "mortgage notes" mentioned. WEIGHTS AND MEASURES. The metric system is in general use and is the legal standard for Colombia. However, many of the old Spanish Colonial units are still commonly used throughout the country. The old Spanish "arroba" (25 pounds) is common. Freight in the interior is reckoned by "cargas," or the usual load for a pack mule variously estimated at 250 to 300 pounds, the most usual "carga" being 280 pounds, in two packages. A certain fixed sum per " oulto," or package, is charged, all packages for animal transport being of necessity more or less uniform in size and weight. Textiles are sold by the meter measurement and also by the " yard a" or yard of 36 inches, this latter being the basis upon which these goods are purchased in foreign markets and the price calculated for domestic sale. Other commodities of small volume, such as lard, rice, etc., are sold on the "pound" basis, the pound being made up of 500 grams or half a kilo. Coffee, the largest export of the country, is purchased from the producer on the basis of " cargas" of two sacks each weighing 65 kilos or 143 pounds net weight. Prices for export coffee are quoted in pounds, American standard. The following are some of the weights and measures used in Colombia, with their equivalents: COLOMBIAN LAND MEASUREMENT. 1 fanegada=6,400 square meters= 10,000 square varas=L9768 acres. 1 hectare= 10,000 square meters=15,625 square varas=2.471 acres. 1 vara=80+ centimeters=31+ inches. 100 varas=80+ meters. INTRODUCTION. 19 LINEAR, DRY, AND LIQUID MEASURES. 1 vara=0. 83591 linear meter. 1 square vara=0. 69875 square meter. 1 cubic vara=0. 58409 cubic meter. 1 botella=0.70 liter (liquid). 1 almude=0.791 liter (dry). GOLD AND PLATINUM WEIGHTS. 1 Colombian pound ("libra") of 16 ounces=2 marcos. 1 marco=50 castellanos. 1 castellano=8 tonines. 1 tonine=12 "granos" (grains). 16 Colombian ounces=460.093 grams (metric). 1 pound (English)=453.598 grams (metric). 1 pound (troy)=373.240 grams (metric)=81 castellanos -f- 12 grains ("granos"). In Colombia it has become customary to give 500 "gramos," or grams, for a pound instead of figuring 460 grams, to be exact. All scales and balances are in the metric system, and merchants estimate prices over the counter on the 500-gram basis when selling lard, sugar, coffee, chocolate, and the like. As regards the weights used for buying platinum and gold, it can readily be seen that the employment of the above system, handed down by the Spaniards, is very much to the advantage of the traders who seU at United States standards, the gain being something like 20 per cent, on a rough average. POSTAGE. The postal administration of Colombia haying agreed to put in effect, commencing February 1, 1921, pending ratification, the pro- visions of the special postal convention concluded at Madrid in November, 1920, between the Americas and Spam, the announce- ment has been made that on and after the date named the United States domestic rates will apply to letters and post cards, as well as to newspapers and periodical publications of the second class (1 cent for each 4 ounces or fraction thereof), addressed for delivery hi Colombia, while the domestic rates of that country will apply to articles addressed for delivery in the United States in all cases where such domestic rates are less than the international rates. Effective on the date above named, the maximum weight limit for newspapers, other printed matter, and commercial papers will be 8 pounds 12 ounces (4 kilos), while the maximum weight limit for single volumes of printed books will be 1 1 pounds (5 kilos) ; and the maximum dimensions for this class of mail matter in the form of a roll will be 40 inches in length and 6 niches in diameter. Another provision of this convention requires the full prepayment of all mail matter except letters, which, however, are required to be prepaid at least one rate (2 cents). 20 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The Colombian domestic postal rates were increased in April, 1918, as follows : Colombian dollars. Letters: For each 15 grams (approximately ^ ounce) or fraction . . 0. 03 Post cards: Single 02 Double 03 Printed matter: For each 50 grams (1 J ounces) or fraction 01 Documents: For first 100 grams (3 ounces) 03 For each 100 grams excess 02 Samples: For first 100 grams (3$ ounces) 03 For each 50 grams excess 02 Registry fee 15 Post-office boxes: Yearly rental 7. 50 City rates: Letters 01$ Post cards Ol| Special delivery 09 Foreign mail: Letters: For each 15 grams or fraction 05 Registry fee 15 The distribution of mail throughout the country is often slow and attended with difficulties on account of the frequently interrupted navigation of the rivers, which are the principal highways into the interior, and the necessity of long routes in the mountainous interior where mail is carried on pack animals and is exposed to bad weather conditions. There is a parcel-post service with the United States and also in the interior of the country. This means is being used to a rapidly increasing extent for sending small lots of high-class merchandise between the United States and Colombia, and the increase in the maximum weight limit of parcel-post packages from 5 kilos (11 pounds) to the present maximum of 10 kilos (22 pounds), effective early in 1919, caused an extraordinary increase in imports by parcel post into Colombia from the United States, it being estimated that up to September, 1919, the business was eight times as large as in previous years. Parcel-post rates are fixed between the United States and Colombia by the Parcel Post Convention of January 19, 1889, which allows extra charges on matter from the United States that do not obtain in the case of European countries. The parcel-post rates from the principal countries are as follows (based on the old maximum weight of 5 kilos, or 1 1 pounds) : Colombian dollars. United States 1. 32 United Kingdom 1. 45 France 1. 28 Germany .- 1. 28 Italy 1. 54 Spam 70 The rate of 70 cents from Spain was fixed by special agreement in 1916 and applies to the Caribbean coast only. Packages from Spain to the Pacific coast of Colombia pay 1 dollar. Besides postage, parcel-post shipments are subjected to the follow- ing extra charges: Import duty; 2 per cent for "conversion fund;" INTRODUCTION. 21 5 per cent for road tax; 5 per cent for consular invoice; "corretaje" or " brokerage"; a charge for appraisal; and a municipal tax. The municipal tax amounts to 10 cents on each package and the "broker- age" to a flat rate of 5 cents for each package from European coun- tries but to 5 cents for each 460 grams of weight and 1 cent for each 115 grams or 4 ounces of excess if the package is from the United States. There are more than 700 post offices in Colombia. TELEGRAPH, CABLE, AND WIRELESS SERVICE. The country is fairly well served by telegraph lines which are owned and operated by the Government. There are more than 500 tele- graph offices, with 20,000 kilometers (12,000 miles) of lines in opera- tion. These lines, in many places, traverse long stretches of rough and sparsely inhabited country, and communication is often inter- rupted by floods and storms, which damage the wires. The equip- ment is antiquated and is being improved by the installation of duplex instruments at the principal cities. Rates per word for domestic service are divided into various classi- fications, as follows: " Ordinary messages," 2 cents; " urgent mes- sages," 4 cents; " extraordinary messages," 8 cents; foreign-language messages (not Spanish) or codes, double rates; press messages of general interest, 1 cent. The name of the addressee, the address, and the signature are charged for, the words all counting. Each figure used is counted as one word; for example, the number 69 would be charged for as two words. No charge is made for place of sending or for the date all other matter counting in the charges. There is no reduced rate for night service. "Extraordinary" messages take precedence over all other messages except Government communications. Next come those of the "urgent" class, and last of all the "ordinary" telegrams, which, if the distance should be great and the press of business at that par- ticular office heavy at the tune, might not be sent for a week or more. During 1919, when business in the country became active, the tele- graph system of the country between commercial centers became inadequate and business was hampered and delayed. One wireless station that was used for commercial work at Carta- gena was dismantled during the war, as it belonged to a German company. The Marconi Co. has a contract to install at Barranquilla, within two years' tune, a large wireless station with a range as far as Habana. Another large wireless station will be installed by the same company at Bogota to afford rapid communication with the interior. The United Fruit Co. maintains a wireless station at Santa Marta, with communication as far as Colon and Bocas del Toro in Panama. On October 24, 1920, service was inaugurated on the direct cable connecting Cartagena with Colon. Cartagena had previously been connected with the outside world by means of land telegraph to the cable station at Buenaventura on the west coast of Colombia, thence by cable through Panama to the United States. The average length of time required for the transmission of messages under these condi- tions was about five days. The opening of the new cable gives 22 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Cartagena direct connection, and messages ordinarily require but one day for transmission to the United States. The Central & South American Cable Co. has an office at Buena- ventura, the cable rates from that port being as follows: Groups (in United States). Cost per word. Countries. Costper word. Connecticut Cents. 50 British Columbia Centt. 52 Mississippi 52 Montreal 65 New York- Washington 53 Mexico 43 Alabama 56 Germany 65 Kansas 59 Austria 72 California 62 Spain 80 England 65 France 65 GEOGRAPHY, TOPOGRAPHY, AND CLIMATE. GEOGRAPHIC POSITION. The Republic of Colombia lies between latitudes 12 24' N. and 4 IT S. and between longitudes 66 7' and 79 W. Certain of the salient features of its geographic position have already been men- tioned, at the beginning of the " Introduction." The opening of the Panama Canal makes it possible to steam from Buenaventura, the principal seaport of Colombia on the Pacific coast, through the canal to Cartagena and Puerto Colombia, on the Caribbean, in less than four days, thus enabling transportation to be effected between the Pacific coast and the Caribbean coast of the country in much less tune than it would take to proceed through the ulterior, which is very broken. The extension of the Pacific Railway (Buenaventura-Cali) to Bogota will give the country the full advan- tage of its geographical position and cause the importance of the Pacific coast territory to become equal to that of the Caribbean coast. In normal times and with f airly equal steamer service, goods ordered from the United States can be received within 30 days from date of order as compared with three months (ordinarily) from Europe. With delivery service and terms of credit important factors in inter- national commerce, trade between Colombia and the United States has a great advantage on account of the proximity of the two coun- tries. The distance from Puerto Colombia and Cartagena (the former the seaport at the mouth of the Magdalena River, which is the highway into the interior of Colombia) to New Orleans is only about 1,300 miles, and easy and quick access is thus afforded to the gateway of the rich and productive centers of the American Middle West. AREA AND BOUNDARIES. The total area of Colombia can only be given approximately, as certain boundaries are in dispute. The various estimates give the total areas as 431,000, 440,846, 466,000, and as high as 476,000 square miles. The official figures of the Colombian Government in 1912 gave the total area of the country as 463,155 square miles, not including the territory of the Choco Intendency, a long, narrow strip of land along the Atrato River in the west-coast section of the country. These figures were obtained from the totals of the areas of the various political divisions of the country, of which there are 14 Departments or States, three Intendencies, and one Territory. The total of 463,155 square miles included, however, the area of the present Republic of Panama, estimated at 31,917 square miles. The Choco Intendency is much smaller than Panama, probably covering less than 20,000 square miles. In order that the reader may form an idea of the relative size of Colombia, it may be added here that the country is equal hi area to the States of the Atlantic coast of the United States from Maine to 23 24 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. Florida with the addition of Ohio and West Virginia. It is larger than Germany and France together. Colombia is bounded on the north by the Caribbean Sea; on the east by Venezuela, whose territory extends as far south as the headwaters of the Rio Negro, one of the northern tributaries of the Amazon; on the southeast by Brazil, on the south by Peru and Ecuador; and on the west by the Pacific Ocean and the Republic of Panama. The Caribbean coast of Colombia extends from the boundary line with Panama (west of the Bay of Uraba) as far to the east as the Gulf of Maracaibo. The Pacific coast line extends from the boundary with Panama (at Kelley Inlet) as far to the south as Panguapi Bay on the Ecuadorian border. SUMMARY OF TOPOGRAPHICAL CONDITIONS AND THEIR EFFECT. The prominent topographical features of Colombia are (1) the Andean Mountain System, divided into three main ranges running from north to south and united at the boundary with Ecuador, these ranges being known as the Western Cordillera, the Central Cordillera, and the Eastern Cordillera; (2) the high group of mountains in the northeastern part of the country, lying between the Goajira Peninsula and the Magaalena River Valley and known as the Sierra Nevada Range; (3) the high table-land of Bogota, in the eastern-central part of the country along the western side of the Eastern Cordillera; and (4) the great "llanos" or plains of the southeastern part of the country, which extend from the line of the Eastern Cordillera to the east, southeast, and south and comprise the watersheds of the Orinoco and Amazon Rivers, being in area much larger than the mountainous and inhabited part of the country. The great plains of the Orinoco and Amazon watersheds are not inhabited except by small tribes of savage Indians, the Colombian people living on the level coast lands, in the river valleys of the interior, or in the more favored regions of the high mountains. The mountains are the dominating factor, affecting all conditions of life and commerce. Transportation is made extremely difficult and costly, and this has hindered the amalgamation of the nation. This condition has divided the country into several regions, each one different from the others in respect to climate, products, racial tend- encies, and. commercial needs. A separate study of each region is therefore necessary when one is making a commercial survey of Colombia. (Seep. 185.) Commercially, the inhabited part of Colombia is divided by geo- graphical barriers into five mam regions, which may be roughly designated as follows : Caribbean coast country. A tropical, low-lying coast region, dry and semiarid from the Peninsula of Goajira as far as Santa Marta. with the rainfall and vegetation increasing from Barranquilla and Cartagena until the region of the Atrato Kiver is reached, where extreme tropical conditions prevail and the rainfall is as heavy as anywhere in the Tropics, being equal to that of Panama. Department of Antioguia. Occupying the central-northern part of the country, entirely mountainous in character and including tropical climate to the north, where the low coastal plain is reached, and GEOGRAPHY, TOPOGRAPHY, AND CLIMATE. 25 temperate climate in the interior at elevations over 5,000 feet above sea level. Central plateau, Bogota. A region having a large extent of level land on a nigh plateau, situated in the eastern-central part of the country just to the west of the Eastern Cordillera of the Andes. Pacific coast section. Mountainous in the south from the boundary with Ecuador to the Cauca Valley and also along the Pacific coast near the ocean. This territory, or division, may be said to include the western slopes of the Central Cordillera of the Andes in the central-western part of the country (considering the area as a whole) and also the level and rich agricultural valley of the Cauca River from Cali to Cartago, in the Department of El Valle. Another sub- division of the Pacific coast territory is that of the valley of the Atrato River to the north, extending as far as the Caribbean Sea at the Bay of Uraba or Gulf of Darien. Eastern section. Embracing the territory between the Magdalena River Valley and the Venezuelan border and north of the high table- land of Bogota. This region is tropical and very mountainous and includes the district of the town of Cucuta, which lies near the Venezuelan border and exports via Lake Maracaibo in Venezuela, having no important commercial connection with the rest of Colombia. TOPOGRAPHICAL FEATURES, DIVISIONS, AND CHARACTERISTICS. It is apparent that Colombia presents three mam divisions for study namely, the coast regions; the great mountainous interior, with its river valleys, plateaus, and mountains; and, last, the low- lying, level eastern and southeastern territory, which may be again subdivided into the " llanos" or "pampas" of the northern part, consisting of open, grassy plains, cut by numerous shallow rivers, and the southern part covered by impenetrable tropical forests called the "selvas," populated only by savage tribes of Indians and very inadequately explored. In addition to the three main ranges of the Andes mentioned, one finds in the northern part of Colombia, near the Caribbean Sea, the great mountain group called the Sierra Nevada, geographically inde- pendent of the Andean System and running, in general, east and west. First there are the low hills of the Goajira Peninsula and then to the west, back of Santa Marta, the great Sierra Nevadas, which ascend from the sea to snow-capped peaks as high as 23,000 feet. There is a small, independent range of low hills lying between the Orinoco and Amazon watersheds, of which it forms the dividing line. These hills are called the Sierras of Padavida, Tunahi, and Cocuy. They are little known or explored Still another small, independent formation is that of the Serrania de Baudo, a line of low hills extending along the Pacific coast from north of the mouth of the San Juan River to the boundary with Panama. These are regarded as belonging to the same range as the littoral mountains of the Caribbean and Central America. The true Western Range of the Andes in Colombia lies just to the east and is separated from the Baudo line of hills by the valleys of the San Juan River in the south and the Atrato River in the north. 26 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. WESTERN CORDILLERA. The western slope of the Western Cordillera receives an excessive rainfall, making vegetation tropical, while many places on the eastern slope receive mucn less rain and are semiarid. The range begins (in Colombia) at the great peak of Chiles (15,680 feet) and also mat of Cumbal (15,710 feet), on the boundary with Ecuador, Chiles forming also the connecting link with the Central Cordillera. To the north, along the western littoral of Colombia, this Western Range is not very high, averaging between 6,000 and 12,000 feet above sea level and being broken oy two passes, notably that of the River Patia, which breaks its way through the Western Range and reaches the Pacific just north of the port of Tumaco. CENTRAL CORDILLERA. The Central Cordillera is the highest and largest range of mountains in Colombia. It forms the most inhabited part of the country. In the southern region of this Central Range there are several high peaks, the centers of mountain groups, and there are two large plateaus, those of Pasto and Popayan, which, however, are not as large as the great table-land of Bogota. Near Pasto there are two active volcanoes, Purace and Sotara, and north of Popayan one of the highest peaks in Colombia, Huila (17,700 feet), which can be seen from the Cauca Valley. From Huila to the peak of Tolima (18,400 feet) the range averages 12,000 feet, with heavy vegetation on both sides. North of Tolima are two high mountain groups, those of Santa Maria and Ruiz, the latter being a great mountain covered with snow for an extent of 40 miles and situated in the Department of Caldas. North of Ruiz, in Caldas and Antioquia, the Central Cordillera spreads out into broken ranges, with a general northerly direction, gradually diminishing in size and height until they disappear in the region where the Cauca River makes its turn to the east toward the Magdalena River, in the northern part of the Department of Antioquia, at about 8 north latitude. EASTERN CORDILLERA. The Eastern Cordillera also separates itself from the large mountain group near Pasto and the Ecuadorian border and strikes to the north- east at an average height of about 8,000 feet. However, in the south it has several high peaks, including those of Chita and Cocui, the latter haying an elevation of 16,800 feet. The Eastern Cordillera is the dividing line between the mountainous part of the country (made up of the three main ranges of the Andes) and the great plains of the Amazon and Orinoco watersheds. The rivers that flow into the Amazon rise in the Eastern Cordillera and flow in a. general south- easterly direction to the Amazon south of the ranges of low hills called the Serrania of Padavida, while the rivers that feed the head- waters of the Orinoco rise in the central and northern sections of the Eastern Range and flow east or northeast to the Orinoco. At about 3 north latitude the Eastern Cordillera broadens out into the most remarkable topographical feature of the entire coun- try the high table-land of Bogota, called the "Sabanas de Bogota'' or the "Alta Planicie," the most densely populated section of the GEOGRAPHY, TOPOGRAPHY, AND CLIMATE. 27 country and distant about 700 miles from the Caribbean coast to the north. This high plateau is 150 miles broad by 300 miles long, interspersed with hills and mountains, and extends from just soutn of the city of Bogota far north into the heart of the Department of Boyaca, the average elevation being about 8,500 feet above sea level. The Eastern Cordillera may be subdivided into three zones, the table-land of Bogota forming the central zone, and the northern zone comprising the main range which lies to the east along the Venezuelan border and the irregular mass of ranges which cover the Departments of Santander and Norte de Santander and die out in the Goajira Peninsula after sending an important range into Venezuela. RIVER SYSTEMS. The three divisions of the Andes in Colombia give the key to the river systems of the country. The largest is that of the Magdalena River, which has its source far south in the Department of Huila, near the point where the Central and Eastern Cordilleras separate, and flows between the Central and Eastern Cordilleras for a distance of 1,060 miles to the Caribbean Sea, being joined by the Cauca River, the second largest river of Colombia, which rises near Popayan, between the Central and Western Cordilleras, and flows to the north until the end of the Central Range is reached, when it turns to the east toward the Magdalena, which it joins about 200 miles from the sea. With the exception of the Cauca and the San Jorge, which also flows into the Magdalena just below its junction with the Cauca, the Magdalena has no important tributaries on its western side. However, on the eastern side there are a number of important rivers several of them navigable for small steamers during seasons of high water which come from the western slopes of the Eastern Cordillera; there are the Rio Carare and the Rio Sogamoso and also the Rio Lebrija in Santander and the Rio Cesar in the Department of Magdalena, this latter stream flowing from the north to the south from the region between the Eastern Cordillera and the Sierra Nevada. Two great valleys are formed by the two principal rivers men- tioned. That of the Magdalena begins north of the rapids at Honda but is not very wide until the river passes Banco, below the junction of the Rio Cesar from the east, whence it opens out into the great alluvial plains of Atlantico and Bolivar and the swampy region to the east. The valley of the Cauca River is between the Western and Central Cordilleras. This valley is very different from that of the Magdalena and may be called an interior valley, where the climate is not the extreme tropical one of the lower Magdalena Valley but a semi tropical climate of 3,500 feet mean elevation above sea level. This statement refers to the Cauca Valley between a point just north of the city of Cali and a point as far north as the end of the territory of the Department of El Valle at Cartago, where broken ranges of the Central and Western Cordilleras come together and cut off farther navigation of the river to the north dividing the river into two navigaole sections, the lower communicating with the Magdalena and the upper extending between Cartago and Cali. The Cauca Valley is a long and more or less narrow stretch of territory lying between the limits given above; and it forms one 28 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. of the three regions of the country (the others being the table-land of Bogota and the plains of the Magdalena near the Caribbean coast) where there is any great extent of level land suitable for agricultural development on a large scale. In each of these regions conditions of climate, soil, and rainfall are very different and may be summarized as follows: The table-land of Bogota, at 8,500 feet elevation, is cool and temperate with little variation in seasons or temperature; living conditions in general approach those in certain portions of Europe and the Unitea States; wheat is grown in abundance and the rainfall is more or less constant all the year around, with no defined dry and wet seasons. The Cauca Valley is not temperate but still is not nearly so tropical as the lands of the Caribbean coast; the mean elevation is between 3,000 and 3,500 feet, and the soil is shallower than that of the deep alluvial fill of the Magdalena Valley, in its northern part, nearer to the sea. The northern plains in Atlantico and Bolivar are very tropical and covered with a dense jungle where they are not cleared for cattle raising or planting; there are well-defined dry and wet seasons and rains are heavy (more so than in the Cauca Valley) . The Sinu River is an independent river situated to the west of the Magdalena and rising in trie foothills of the Western and Central Cordilleras where they come together in the north. It flows directly north to the Caribbean Sea through a level country in the Depart- ment of Bolivar and is separated from the Atrato River Valley by a low range of hills running north and south. The Atrato River flows Detween the low coastal range called the Serrania de Baudo and the Western Cordillera and empties into the Bay of Uraba on the Gulf of Darien near the boundary with Panama. Its source is at a point where the Western Cordillera and the low coast range are united by a group of low hills. From this place the San Juan River also takes its source but flows to the south toward Buenaventura, emptying into the Pacific near Point Chiram- bira, which forms the northern part of the Bay of Choco, on which the harbor of Buenaventura is situated. Tne Atrato receives a great deal of water from the torrential rams of the region and is navigable for quite large steamers when once the sand bars of its mouth are passed. Regular steamer traffic is maintained through- out most of the year with Cartagena. The region of the San Juan and Atrato Rivers is perhaps the most tropical in Colombia, and there are many miles of great swamps along these rivers, throughout which the canoe is the only means of transportation, though the rivers themselves are, as has been said, navigable during a part of the year for small steamers for certain distances from their outlets at the sea. The Patia is the largest river of the west-coast regions that flows into the Pacific. It has its source in the mountain group near Pasto, where the three main ranges separate, and has cut its way through a wonderful series of gorges to the Pacific Ocean just north of Tumaco. By means of this river and one of its affluents, the town of Barbacoas, situated in the interior back of Tumaco, has com- munication with the Pacific by means of small steamers. In the region of Barbacoas the Patia Kiver forms an extensive valley well GEOGRAPHY, TOPOGRAPHY, AND CLIMATE. 29 suited for tropical agriculture and mostly devoted to cattle raising. The valley is most tropical, though rains are not nearly so heavy as farther north in the San Juan or the Atrato River country. For a period of 250 years, during the colonial period, the rivers of Colombia afforded the only means of transportation from the interior to the coast or from one district to another, with the excep- tion of the pack mule and pack ox, which carried exports down to the rivers from the mountains of the interior or took back into these mountains imported goods of all kinds. Railways that have been built since then have all been connecting links with the rivers for points in the interior. From this fact it is readily understood how important a part the rivers of the country have played in its com- merce and development. However, even the great Magdalena and the Cauca are not deep, well-channeled streams, and their naviga- tion even by small, shallow-draft craft has always been attended with danger, expense, and great delays on account of insufficient water during the protracted, dry seasons. The tune has arrived when the rivers are no longer adequate to carry the commerce of the country, and the great problem is that of railway building, in order to afford a more rapid, sure means of export and import trade and to facilitate the business of the country in general. (For details concerning the Magdalena River, see the discussion beginning on p. 203.) GOAJIRA PENINSULA. The Goajira Peninsula juts out into the Caribbean on the north- eastern corner of Colombia between Santa Marta and the Gulf of Maracaibo in Venezuela. The area of the Territory of Goajira is 5,019 square miles. It is inhabited by 75,795 people, principally Goajira Indians, a sturdy and warlike tribe, or rather group of tribes, which have consistently repulsed the advances of civiliza- tionthis being probably due to the semiarid character of the land of the peninsula, containing little attraction for development enterprises. The land is f airly level in character, and is mostly sandy and arid along the coast, where grow the divi-divi trees ( Caesalpinia coriarid) , producing the principal article of commerce of these regions. This type of country alternates with heavy clay lands where little but cactus grows with here and there swampy "pantanos." In the center of the peninsula are rather large areas of savana lands which are covered with an excellent short grass (Arestida) in October but are dry and arid during most of the year, not affording sufficient pas- ture for cattle all the year round and also being more or less subject to overflows during the short rainy season. In the southwestern part of the peninsula vegetation alters and becomes more luxuriant toward the mountains of the Sierra Nevada, where there is more rainfall. Here are found extensive pastures of "guinea" grass, which was originally imported by the Spaniards in colonial times. As many as 10 leagues of good pasture are seen in one place, and it is this region of the peninsula that is capable of development in the way of cattle raising, the problem being to get the cattle out to market in good condition. The prinicpal town is Rio Hacha, on the Caribbean, where there is a small, very shallow harbor. The trade is not important. 30 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. In the region of Rio Hacha there are very extensive areas of natural "fique" a species of henequen said to be capable of producing large quantities of fiber. Cattle and goat skins, brazil wood, and divi-divi are the principal exports. A very complete description of the lands of the Goajira Peninsula and the eastern slopes of the Sierra Nevadas is contained in "An Account of a Journey Down the Magdalena River and Through the Magdalena Province and Peninsula of Goajira, Colombia," by Prof. M. T. Dawe, F. L. S., agricultural expert for the Colombian Govern- ment. "Colombia," by Phanor J. Eder, also contains a good de- scription. Large beds of lignite are reported in the peninsula near the moun- tains at Serrajon, and there are deposits of a very good quality of kaolin near the Gulf of Maracaibo, but these are little worked. The route from Bahia Honda, a deep-water natural harbor near the extreme eastern end of the peninsula, through the peninsula and via the Valle Dupar to the east of the Sierra Nevadas has often been considered as an excellent rail route to Bogota the reason being the long stretch of practically level land, through which con- struction would not be as costly as in the mountains of the interior. As a result of recent explorations in the Valle Dupar country, deposits of copper have been reported in the region of Soldado and Fonseca. CLIMATE AND RAINFALL. In a mountainous country like Colombia, climate is a matter of elevation, and, where elevations vary from sea level to the snow line at 16,000 feet, all varieties of climatic conditions are encountered. It is this difference in climate that has had such a great influence on the development of the country. The early Spanish colonists sought the cool elevations of the interior rather tnan the hot tropical lands of the more level coast on the north, and to-day the greatest develop- ment and most dense population are still found on me high and cool table-land of Bogota. Colombia is situated in the Tropics, so far as latitude is con- cerned, but it is not wholly a tropical country by any means, the elevations of the mountains of tne interior bringing about many changes in climate. CLIMATIC ZONES. Climatically, the country is divided into zones just as it is topo- graphically. There are four principal climatic zones: First, that of the coasts, both Atlantic and Pacific, very hot and damp all the year round. Second, the region farther in the interior, composed of foothills up to an elevation of 3,000 or 4,000 feet. Here tne climate is still very hot and the vegetation dense, but the atmosphere grows cooler as the higher elevations are reached. For example, at 3,500 feet the climate would be considered semitropical, varying according to location and rainfall. Third, the first low ranges of the mountains, up to 6,000 feet above sea level, in which the climate is mild and equable, with moderate rainfall. GEOGRAPHY, TOPOGRAPHY, AND CLIMATE. 31 Fourth, the higher ranges of the mountains and the high plateaus of the interior, such as those of Bogota, Popayan, and Pas to, all above 6,000 feet, where the climate is cool, with the temperature ranging from 40 to 64 F. and occasional frosts above 9,000 feet. In this zone there is little variation in the seasons, there being no well-defined wet or dry season. Rains are frequent but light in character, the tropical downpours of the lower river valleys and the coast being entirely absent. CLIMATE OF THE CARIBBEAN COAST. As has been said, the territory of the Goajira Peninsula is very dry and arid along the coast. Light rains usually occur in the summer months, beginning in May, but they are not dependable. The central part of the peninsula receives more moisture, being nearer to the slopes of the Sierra Nevadas, which lie to the west and south and send down numerous small streams. These are shallow on the level plain of the interior of the peninsula, and the land is often flooded by water from the mountains during the rainy season, which begins in May and lasts until October. The Santa Marta region receives slightly more moisture than Rio Hacha (to the east in the Goajira country), but not enough to mature crops, irrigation having to be resortea to in the banana district south of Santa Marta harbor. The annual average precipitation hi this latter region does not exceed 14 inches. JThe 30,000 acres of bananas in this region are irrigated from the numerous streams coming down from the Sierra Nevadas on the western slope. Farther to the south, in the region of the Rio Cesar, there is more abundant rainfall, often exceeding 60 inches per year, and the country is swampy as far as the Magdalena River, being covered with heavy tropical vegetation. The Santa Marta region suffers frequently from high wind storms, or hurricanes, which come from the southeast and do great damage hi the banana plantations by blowing down the tender and heavy banana plants, involving a loss of five to six months in cutting fruit on the areas damaged by winds. The Caribbean coast in the region of Barranquilla and Cartagena receives more rainfall than Santa Marta, but still not sufficient to mature field crops very well, there being frequent years of extreme drought lasting from October until May. The annual average pre- cipitation is about 26 inches. Seasons in which excessive rains and violent storms cause damage occur about every eighth year. The coast between Barranquilla and Cartagena is dry and rather arid for a distance of 30 miles inland, though certain low areas are subject to flooding from the waters of the Magdalena during seasons of high water in the river, which is fed by its many tributaries and heavy rains in the higher regions of the interior. More rain occurs farther south of Cartagena, where the land is better, in the great alluvial fill stretching from the Dique south to the San Jorge River and west to the west side of the Sinu River. In the Sinu region the rainfall is still heavier, and, except in ab- normal years of extreme drought, there is sufficient rainfall to mature field crops, the average annual precipitation being about 42 inches. As one proceeds south in this district the soil is found to be more moist and to hold moisture better. 32 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Still farther west the rainfall increases rapidly, becoming excessive in the region of the Atrato River, where rams are almost continuous and the precipitation is as heavy as that of Panama, being about 160 inches per annum or even greater farther in the interior, in the region of the town of Quibdo. (See p. 218.) It has been said that the coast regions are very hot and damp, being extremely tropical. However, the extreme heat of the coast at Santa Marta, Barranquilla, and Cartagena, and also farther to the west, is tempered during the fall and winter months by the northeast trade winds, which blow steadily during the day from October until April that is, during the dry season. During the spring equinox a short period of light rains is usually expected and relied upon to mature field crops planted in the fall. These spring rains sometimes fail, however. CLIMATE OF THE INTERIOR. Farther inland from the Caribbean the heat is even greater than along the coast, since the cooling effect of the trade winds is not felt. Vegetation becomes very dense and tropical, and the temperature goes every day to as high as 95 F. This region includes the Magda- lena Valley as far up as Girardot and the country around the San Jorge and Lower Cauca Rivers in Antioquia and Bolivar. There are two well-defined seasons the rainy season, from May or June to December, and the dry season, from December to May. u Farther south along the ranges of the Central Andes, in the region of the city of Medellin, the climate changes. There are two wet and two dry seasons, the former occurring during April, May, and June and during November and December. The temperature varies with the elevation. That of Medellin, at 5,000 feet above sea level, is like warm spring weather in the United States, the temperature varying between 64 and 84 F. every day, with an average of 76 F. Still farther south along this range as, for example, at Ma'nizales, at 7/000 feet elevation the seasons and the amount of rainfall (averaging about 60 inches per annum) are the same, but the tempera- ture is cooler and may be called ideal not too cool like the table-land of Bogota nor just a trifle too warm, as in Medellin, but just right all the year round. Manizales has the best climate of any large town in Colombia. In the Cauca Valley conditions are about the same as for the second zone, with two wet seasons and two dry seasons, the climate being called semitropical and the temperature averaging 76 F. Along the Pacific coast and the western slope of the Western Cor- dillera and the small northern coast range of hills, rains are incessant and very heavy, equaling the fall in the Atrato region and that of Panama. At the Pacific port of Buenaventura it rains every day, and the annual precipitation is more than 160 inches. This heavy rainf all of the coast diminishes farther south and in the neighborhood of the port of Tumaco is reduced to the normal amount of 60 inches per annum on the average. The third zone, that of elevations up to 6,000 feet, also has two wet and two dry seasons, the rains coming about one month earlier than on the lower levels but in approximately the same amount. The temperature varies between 58 and 72 F. GEOGRAPHY, TOPOGRAPHY, AND CLIMATE. 33 EFFECT ON TRADE OF CLIMATIC VARIATIONS. From the foregoing it is seen that Colombia possesses a great variety of climates, necessarily affecting the habits and mode of life of the people, their characteristics, racial tendencies, and, in fact, every phase of existence. For example, on the coast only the very lightest clothing is worn cotton drilling, linen, Palm Beach, white canvas shoes, straw hats, etc. Medellin uses both light, white clothing of the Tropics and also lightweight woolens, serges, etc.; and the people of Antioquia are more energetic, their houses are better fur- nished and more modern, and a greater variety of merchandise is needed than throughout the coast regions, where life is generally more primitive among the lower classes. The Manizales district takes medium-weight cloths and light woolens, while Bogota uses heavy woolens and affords a market for the usual goods sold in the United States. At the same time, lighter weight materials are also in demand in Bogota because this center furnishes goods at wholesale to a wide and varied district, selling light cotton goods to the Mag- dalena Valley and Santander, as well as Tolima and Huila, and carrying stocks to meet the conditions of climate of the different zones from the extreme Tropics of the river valleys to the cold lands of Bogota. In Bogota there is a market for waterproof garments, rubbers, umbrellas, etc., and in Medellin and Manizales for light- weight raincoats, etc., while these garments are not worn on the coast, because the extreme heat makes their use insupportable and soon damages them. On the coast and in the interior hot valleys, celluloid fastenings for suspenders, garters, belts, etc., are in demand because this material does not corrode and rust with the moisture and thus stain and damage the cloth of the clothing worn. In the cooler regions metal fastenings can be used. This small example shows how a study of these climatic conditions will help to promote trade and add to the usefulness of American goods sent into these different regions of such a country as Colombia. CLIMATE OF THE "LLANOS." Taking the great plains of the " llanos" as a whole, it may be said that the climate is extremely tropical throughout their extent. As has been said, this immense region is not inhabited and at the present time has little commercial importance. In the northern part, through- out the watershed of the Orinoco, the land is more open and covered with grasses, with copses of trees only along the water courses. The southern regions, called the "selvas," throughout the watershed of the Amazon, are covered with a dense tropical forest. Rains are very heavy in the southern region and last from May until December. During the rainy season the rivers, which are shallow, overflow their banks and inundate enormous stretches of country, making it impass- able for men on foot or horseback, the canoe being the only means of transportation. All sorts of tropical fevers are prevalent in this region, and there are also diseases peculiar to this territory. 37558 21 3 POPULATION AND LIVING CONDITIONS. STATISTICS OF POPULATION. The following table shows the population of Colombia by political divisions in 1896 and 1912 (the censrfs of 1918 being incomplete): Population. Num- Num- ber of Departments. Area. Census of 1896. Census of 1912. Census of 1918. Prov- inces. niiiiuci pal- itics. Antioquia (capital, Medellin) Sg. miles. 24,401 648 190 741 816 817 530 10 85 Atlant'ico (capital/Barranquilla) 1.082 112, 261 114,887 2 19 Bolivar (capital, Cartagena) 23 938 202 945 425 975 463 165 10 58 Boyaca (capital, Tunja) 17 654 608,989 586 499 13 128 Caldas (capital, Manizales) 7 915 2 Id ;!(is 341 198 428, 137 5 29 Cauca (capital, Popayan) 21 882 211 891 211 756 5 ..,, Oundinamarca (capital, Bogota) 8 629 632 847 721 615 12 109 Huila (capital, Neiva) 8,687 154 641 158, 191 3 29 Magdalcna (capital, Santa Marta) 20,463 127,806 149, 557 5 32 Narino (capital, Pasto) 10 039 244 330 311, 791 8 44 Nortode Santander (capital, Cucuta).. 6,708 164,290 204,481 3 28 Santander (capital, Bucaramanga) 19, 161 377, 393 400,084 9 71 Tolima (capital, Ibague) . 10, 811 218,840 283,333 5 3 El Valle (capita'l, Catt) .'. 4,179 217,096 217, 147 6 29 Intendency of the Meta 85 328 7,497 1 14,220 1 3 Intendency of the Caqueta 187,258 45,856 Intendencv of the Choco 13, 761 2 66, 950 2 6 Territory of La Goajira 5,019 75, 795 75,795 1 15 Islands of San Andres and Providencia 5,311 6,953 2 Total.. .. . 476, 915 4, 539, OSS ' 5, 038, 803 4 6, 000, 000 1 The figures for the Intendencia del Meta include those of the Comisaria de Arauca. * The figures for the Intendencia del Choco include the population of the leper colony and the Comisarias de Jurado and Uraba, latterly assigned to the Department of Antioquia. 8 The total of the census for 1912 includes a population in the leper colonies of 6.555, and an additional 200,000 may be added for savage tribes on which no official figures are available at this time. These I rilx-s would include those of the "Motillones" in Santander, the various tribes of the "llanos" and "selvas," and the Indians of the Choco Intendency. 4 The total given for 1918 is estimated, being calculated on the increase between 1896 and 1912, and the figures available for some Departments in the census of 1918. which, late in 1919, had not yet been approved on account of discrepancies not accepted by the National Government. The large increase in the population of the Department of Bolivar between 1896 and 1912 is due to the fact that additional territory was added from the Departments of Atlantico and Antioquia. The Departments of the coast received considerable influx of popu- lation from the interior, principally from Antioquia. The natural increase is not very large in relation to population, the infant death rate being very high in all tropical regions of the country more so than in the more healthful areas of the interior. The largest increase in population is shown in the Department of Antioquia, where the percentage of increase between 1896 and 1912 was 11.3 per cent and between 1912 and 1918 10.2 per cent. The Antioquia increase is from natural causes and is even higher than is indicated by these figures, since people from Antioquia emigrate to the Cauca Valley, Caldas, Tolima, Cundinamarca, and Boyaca. The most populous Department is Antioquia, with Oundinamarca a close second and Boyaca third. Antioquia is also the largest in area, 34 POPULATION AND LIVING CONDITIONS. 35 with Bolivar a close rival and Cauca third. The Intendencies of the Caqueta and Meta are much larger, but these are the great unin- habited lands of the Orinoco and Amazon watersheds, which are not considered commercially in this report. The islands of San Andres and Providencia lie off the coast of Costa Rica in the Caribbean Sea and are administered from Cartagena by a territorial military government. They have no commercial connec- tion with Colombia, and even the language is English and not Span- ish, these two small islands being inhabited by West Indian Negroes. The principal industry is the growing and exportation of coconuts. RACIAL CHARACTERISTICS OF THE PEOPLE. As in all other Latin American countries, wide differences in race and social strata exist in Colombia, and there has been a large infusion of Negro blood throughout the coast and river regions. In describing the racial characteristics of Colombia, one of the best- known modern writers on the country (Phanor J. Eder, "Colombia," pp. 199-201) says: It was to the interior mountains and plateau regions^ at altitudes where the climate was more like that of home, that the Spaniards were invariably attracted, no matter what the distance from the coast. High up in cool regions throughout Spanish America important capitals were founded Mexico City, Cartago, Quito, Caracas, La Paz all situated out of the debilitating lowland heat and incidentally safe from the attacks of enemies besetting the coasts. In Colombia, too, the same rule was observed; the Spaniards sought out the Andine regions to found their homes. In the old cities like Bogota and Popayan, Benalcazar's capital, the aristocratic families held sway and preserved the purity of their race, except occasionally in the earlier days when it was considered no dishonor for a "conquistador" to marry the daughter of an Indian chief. Elsewhere there is a strong admixture with the Indians and with the Negroes. As a consequence of the intermixture, of the varying characteristics of the Indian stocks thus absorbed, and of the lack of homogeneity among the conquering Spaniards, themselves of various races (Celt, Teuton, Basque, Moor, Jew) and of widely differing types (Castillian, Andalusian the latter the most numerous settlers in Colombia Galician, Catalan, etc.), plus the different environments in which these complex blood mixtures found themselves, several distinct characters of type have in the course^ of centuries developed in Colombia. For, though we speak of the mass of the Andine population, yet local conditions of altitude, climate, and soil have differed greatly. Here life came easy, there hard work was necessary for subsistence ; here an exuberance of nature, there dry air and an arid soil; here blazing sunlight, there cold mists and fogs. By the time of the Independence, the types now generally recognized among the "white" Colombians the term "white" often including Indian mixtures had become fairly fixed. The further evolution has been complicated by the gradual dis- persion and intermarriage of folk from the various regions, and the somewhat slower infusion into the best circles of drops of color from parvenus. Each locality has its own peculiar characteristics well worthy of study. INHABITANTS OF CARIBBEAN COAST REGIONS. INDIANS OP THE GOAJIRA PENINSULA. Mention has been made of the Indians of the Goajira Peninsula, who are probably descendants of the Caribs who made such an heroic defense against the invasions of the Spaniards. In modern tunes the Goaj iras maintain their independence and are a hardy and warlike race but are divided into tribes which carry on tribal warfare. Commerce is carried on with the whites, and these Indians are nominally submissive to the authority of the Government, but they are resisting all attempts at subjection or civilization. They trade 30 COLOMBIA: A COMMKIJCJAL AND INDUSTRIAL HANDBOOK. cattle, horses, hides, pearls, brazil wood, and divi-divi for bright- colored cotton cloth, hardware, arms, corn, and rum. The Indians along the coast live principally on fish and those of the interior on meat. Several Catholic missionary organizations, aided by the Government, have established missions in the peninsula, where the children are educated by the priests in "onelinatos" (literally, orphanages). The Goajiras of the east coast, along the Gulf of Mara- caibo, trade with Venezuela by that route. INHABITANTS OF SANTA MAUTA, BAHRANQUILLA, AND CARTAGENA REGIONS. Back of Santa Marta, in the higher elevations of the Sierra Neva das, live the Ahruaco Indians, a docile tribe very unlike the Goajira-. The latter wear little clothing, while the Ahruacos wear heavy cotton cloths and long mantles. These Indians live in permanent villages of tiny huts and are agricultural, raising diversified crops, from plantains to wheat, but only enough for their subsistence. They also raise cattle, which is their means of barter with the towns of thelower regions like Santa Marta. The region of the mountains inhabited by these Indians is well suited for coffee growing up to an elevation of over 10,000 feet, but these Indians do not form a supply of labor, which is the factor that has determined the slow development of the coffee industry in the Sierra Nevadas. To the east and south of the Sierra Nevadas lies a varied and rich region very sparsely inhabited except for a few small towns. The country has no roads and is inaccessible, and the white settlers have been driven away very often by the depredations of the Motilones Indians from the Eastern Cordillera. Along the Caribbean coast, in the Santa Marta, Barranquilla, and Cartagena districts, the predominating population, among the lower classes, is mulatto or Negro. In the banana plantations of Santa Marta a good many of the laborers are West Indian Negroes. Colored men from the West Indies also work on the docks at Santa Marta, Barranciuilla, and Cartagena. Negroes and mulattoes have also re- placed the Indians up the great valley of the Magdalena, but are not found in the high lands of the interior in any numbers a Negro being a rare sight in Bogota, for example, where the climate is cold and damp and the Indian population predominates in numbers. During colonial times there was a considerable group of tribes of Carib Indians living on the Sinu River, but, like the Indians of the Magdalena Valley, these Indians have disappeared almost completely, being replaced by the Negroes imported by the Spaniards to work the placer mines and the plantations of the rivers and to build the great fortifications of Cartagena. An important element on the coast is the number of foreigners en- gaged in business and trade. There was a large and flourishing Ger- man group, especially at Barranquilla, where the Germans for more than naif a century led in trade and enterprise, being the first to brino; out steamers for the river traffic. Their numbers have dimin- ished pen market, these bonds sold at a discount of 30 per cent. BANK LOANS. Opposition to the Government was aroused late in 1918 by legis- lation unfavorable to the flour-milling and salt industries of the Caribbean coast, and this resulted in the formation of the "Liga Costena," an organization of the coast interests for the protection of their local industries. The outcome was a trip to the coast by the President in January, 1919, during which all of the principal cities were visited, including Medellin en route, arid a total of 1,600,000 Colombian dollars was borrowed from the various native banks and wealthy merchants to meet the pressing needs of the Government, which was beginning to feel the lack of the usual revenue received from customs duties paid on imports into the country, which fell off during the war. In the meantime the Government was doing all hi its power to economize, the President's message of November 5, 1917, cutting the annual appropriations by 1,000,000 dollars, as foUows (Colombian dollar = $0.9733 United States currency): Colombian dollars. Reduction of charities 65, 000 Jails expense to be paid by the Departments 600, 000 Reduction of the army by 1,000 men 200, 000 Reduction in the schools department 55, 000 Reduction in number of Federal employees 80, 000 Total 1,000,000 FINANCIAL CONFERENCE. On June 17, 1918, a national financial conference, composed of the members of the chambers of commerce of Bogota, Manizales, Barranquilla, Cucuta, Tunja, Pas to, Medellin, Cartagena, and Buca- ramanga, was held in Bogota with the object of studying the finan- cial needs of the country and discovering some method whereby the circulating medium could be increased in sufficient amount to meet the commercial necessities of the country at large, and also to aid the Government in meeting the fiscal crisis. Out of this meeting grew the plan to make American bills legal tender, a measure wanted 62 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. i by the coast communities but bitterly opposed in Government circles in Bogota and by the business people of Medellin. The Minister of the Treasury was a strong supporter of this plan and finally resigned in January, 1919, on account of the failure of Congress to pass the proposed law that would have made this plan effective. It will be recalled that the Government could not issue more paper money because of the fact that the reserve funds of the Junta ae Conversion had been used to meet current expenses, and there remained no reserve on which to base such an increased issue, which, it was feared, would cause the Government paper currency to become depreciated, as was the case with the fiat money of past times a condition which it was sought to avoid at all costs. FAILURE OF FOREIGN LOANS DURING THE WAR. Out of the mass of new laws and legislation having to do with foreign loans during the period of the war, there are two principal laws that authorized the Executive to contract for large foreign loans with which to meet the more pressing needs of the Govern-^ ment and to carry out harbor works, sanitation, and railway build- ing. The first of these laws was No. 55 of 1916, which had to do with the Pacific Railway (see p. 272) and authorized the Government (the Executive) to make < a new contract with the Pacific Railway Co. (superseding all old contracts and that of 1905), whereby the com- pany agreed to receive a reduction of 8,000 Colombian gold dollars per kilometer for new line constructed and to cede to the Government the right to certain lands acquired under the old contracts, some of which* contained valuable and extensive deposits of coal ; and the Government was to cooperate with the company to secure a loan of 10,000,000 dollars for wnich the company would be responsible, the Government paying the regular funds allotted to the Pacific Rail- way work. One million dollars of this sum was to be used by the company for the improvement and sanitation of the port of Buena- ventura and 700,000 dollars for the reconstruction of the line be- tween that port and Cisneros (the old part of the railway, some of which is 30 years old and in very bad condition, having to be relo- cated on account of the danger to the line down the Dagua River). The company finally refused to accept the conditions of this new law, though an effort was made to secure the loan in both the United States and England during the first half of 1919, and the ultimate result was the taking over of the Pacific Railway by the Government in September, 1919. In law No. 77 of 1917 Congress authorized the Executive to con- tract for a foreign loan of 15,000,000 Colombian dollars to be used for the sanitation of seaports and other public works. The product of the national salt mines and other revenue guaranteed the pay- ment of principal and interest. The privilege of liquidation at any time was reserved by the Government. Nothing came of this on account of the general condition brought about by the war. GOVERNMENT, EDUCATION, AND NATIONAL FINANCE. 63 OUTLINE OF FISCAL CONDITION. In order to show the high increases in governmental expenses, out of which have grown the various fiscal crises of the last few years, a comparison is given below between the year 1911 and recent budg- ets. The calculated income of the national Government for 1911 from all sources was 9,779,500 Colombian dollars, with the author- ized expenditures amounting to 11,768,450 dollars. As provided by law, the Executive scaled down these authorized expenditures to avoid a deficit, and, in fact, cut them down, in accordance with the new. policy of strict economy, to 8,937,688 dollars a relatively small sum for a nation of 5,000,000 inhabitants. The total revenue in 1911 exceeded the estimated amount, being 12,685,200 dollars, with items as follows: Colombian dollars. Customs duties, port fees, etc 9, 072, 099 Consular fees 451, 273 Posts and telegraphs 455, 831 Succession duties 85, 285 Sabana Railway J 263, 203 National properties 10, 323 Patent and trade-mark fees 486 Marine salt mines 598, 716 Terrestrial salt mines and springs 797, 958 Mining taxes and leases 49, 158 Stamp taxes and law paper 476, 680 Stamp' taxes, cigarettes and matches 56, 060 Territorial revenues, Choco and Meta 59, 022 River navigation tax 116, 918 Miscellaneous revenue 192, 188 Total 12, 685, 200 The total revenues during the Restrepo administration, 1910-1914, were as follows : Colombian dollars. August to December, 1910 4, 940, 276 During 1911 12, 480, 581 During 1912 13, 995, 492 During 1913 17, 347, 101 January to July, 1914 8, 831, 966 Total 57, 595, 416 The total revenues during the Concha administration, 1914-1918, were as follows: Colombian dollars. August to December, 1914 4, 814, 626 During 1915 12, 638, 449 During 1916 2 21, 045, 224 During 1917 13, 366, 623 Mar. 1 to July 31, 1918 4, 197, 846 Total 56, 062, 768 The first-named administration secured a foreign loan of 300,000 and the second took the 1,500,000 dollars metallic reserve fund of the Conversion Board for Government uses, by authority of Congress. > Spent 234,630 dollars for improvements. 'January, 1916, to Feb. 28, 1917. 64 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Both administrations faced a deficit on entering office and left a deficit upon leaving, notwithstanding measures for greater economy. A comparison may be made from the following figures for 1910 and 1918, showing the increased expenses of the minor depart incuts of the Government: Departments. 1910 1918 Departments. 1910 1918 Council of State Colombian dollars. Colombian dollars. 42,839 Circuit Courts Colombian dollars. 310 266 Colomliian dollars. 495 735 Tribunals of Contention 65,990 Posts 303, 185 xC' ?:? Medicine (legal) 58,147 Telegraphs t 543 178 1 186 374 Hygiene 10, 157 133, 191 Police Service 484 196 1 III? 17"i Fiscal Department 31,845 57,931 Prisons 109 500 824 120 136 950 216 620 Superior Courts 40*282 64^653 Total 1 969 559 5 005 812 | The above table shows how expenses have mounted faster than revenues. In his message to Congress on November 7, 1918, President Suarez called attention to the fact that, upon his taking office on the 7th of August, there was a deficit of 3,824,497 dollars, that the national deficit by February 28, 1919, was estimated at 5,548,285 dollars, and that, if the budget as adopted by the Congress for 1919 were main- tained, another deficit of 4,747,786 dollars would have to be faced on February 28, 1920 or a total deficit of more than 10,000,000 dol/ars gold. Law No. 23 of that year was also criticized on the ground that the 8,000,000 dollars' worth of internal-loan bonds, authorized to draw only 8 per cent interest annually, would not be acceptable to the country at large and that the rate of interest should be materially increased. The following table shows the proposed and the " reformed" budget of expenses for 1920: Departments. Proposed. "Re- formed." Departments. Proposed. "Re- formed." Interior (Oobierno) Colombian dollars. 6,392,301 Colombian dollars. 5,937,842 Agriculture and commerce. . . Colombian dollars. 207,248 Colombian dollars. 116,744 Foreign relations ... 351 321 372,609 Public works 1,133,719 1,296,367 Finance 995,298 796,116 Treasury 3,606,897 3,965,088 War 1 785 549 2 045 406 Public instruction '835' 01 7 1 056 061 Total 15,307,350 15,586,233 The " reformed " estimate, finally adopted, was supposed to be more economical but really resulted in an addition of 278,883 dollars. Salaries of all cabinet officers were reduced by 20 per cent, but the consular service received 85,000 dollars, instead of the former 70,000 dollars, and the diplomatic service was given 120,000 dollars. The estimate for 1920 of the Department of Agriculture and Commerce was cut by 43.7 per cent, leaving this important department of the Government with its hands tied and with no hope of being able to do any constructive work for the country. This was the cause of the discontinuance of the new Government Agricultural Experiment Station on the Dorada Railway in Tolima, from which great things GOVERNMENT, EDUCATION, AND NATIONAL, FINANCE. 65 were expected in the future for the betterment of Colombian agri- culture. In 1918 and 1919 the several departments received the following percentages of the national funds : Departments. 1918 1919 Departments. 1918 1919 Interior Per cent. 35.9 Per cent. 38.0 Agriculture and commerce.. . Percent. 1.2 Per cent. 0.8 Foreign relations 1.8 2.4 Public works . . 10.3 -8.2 Finance 8.1 5. 1 Treasury 22.0 25.3 War 13 7 13 2 Public instruction. 7.0 7.0 Total 100.0 100.0 EXTERNAL DEBT.i In 1889 the Republic of Colombia, which had changed its name from the United States of Colombia, arranged a plan to provide for the consolidation of the debt assumed by the Republic. The new bonds for which this plan provided were to be known as the " Con- solidated External Bonds of 1890," to be issued to the amount of 2,420,000, and to bear interest at the rate of 3 per cent until Decem- ber 31, 1899, and at 4 per cent per annum thereafter. The principal of the old bonds was to have been converted into the new bonds at par and interest in arrears at 50 per cent of the nominal value. Twenty per cent of the gross customs receipts of the country were to have been assigned for the payment of the interest on the new bonds, and the sum of 12,000 per annum was assigned as a sinking fund, the Government having the right to redeem the bonds by drawing at 70 per cent of par until December 31, 1894, and at 80 per cent thereafter. This plan, which had been agreed upon by the representatives of the Government and the Committee of Foreign Bondholders, of Lon- don, representing the bondholders, did not meet with the approval of the Colombian Congress, and in 1896 the above agreement was modified, the interest rate being placed at 1^ per cent for the first three years, 2 per cent for the second three years, 2 per cent for the third three years, and 3 per cent per annum thereafter. The sinking fund 'was placed at one-half per cent, cumulative, for the first three years, 1 per cent for the second three years, and 1J per cent there- after, cumulative. In 1900 the interest on the loan was not met; payments were resumed July 1, 1905, and the sinking fund, which had likewise been suspended, was resumed January, 1910. The unpaid coupons were exchanged for noninterest-bearing certificates, 70 per cent of which were paid off in 1907 and 1908, the remaining 30 per cent being sub- ject to settlement of certain alleged claims of Colombia against another Government. In 1906 the Government issued 300,000 5 per cent bonds, secured on the property of the Bogota-Sabana Railway, the proceeds of the loan to be used to convert the old paper currency of the country. The sinking fund of this issue was nxed at 1 per cent per annum, 1 As far as the paragraph on p. 66, beginning " The report of the legislative committee on national credits," this section is reproduced from " Investments in Latin America and the British West Indies," by Frederic M. Halsey, published by the Bureau of Foreign and Domestic Commerce as Special Agents Series No. 169. 37558 21 5 6G COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. cumulative. Approximately 275,000 of these bonds remained out- standing in 1916. In 1911, 7,560,000 francs (300,000) 6 per cent bonds were issued in France, being offered for public subscription at about 98 per cent. These bonds were declared redeemable in 30 years through the opera- tion of a cumulative sinking fund, and the entire service on the loan is guaranteed by the assignment of 3 per cent of the entire customs revenue. This issue is known as the 6 per cent gold loan of 1911. During the year 1913 1,500,000 bonds were authorized, practically all of which were issued in exchange for the 6 per cent bonds of the Colombian' National (Girardot) Railway, on the following terms: Class of former bonds (Colombian National Ry.). Former amount of railway bonds out- standing. Percentage of new bonds offered for old bonds. New bonds. 6 per cent first-mortgage debentures 200,000 107 214,000 6 per cent second-mortgage debentures, including 84,000 overdue interest 400,000 85 340,000 6 per cent customs-guaranteed bonds 430,000 95 408,500 6 per cent customs-guaranteed debentures 450,000 95 427,500 Total 1 480 000 1 390,000 Approximately 1,224,360 of the Government bonds were issued in exchange for the railway bonds, and of those issued approximately 987,000 remained outstanding at the close of 1917. The bonds were quoted at 70 in January, 1918, this comparing with the high price since 1911 of 88i, and the low price of 55. These Government bonds are to be redeemed by purchase in the market, or by drawing at par, on or before March 1, 1947. The yearly service is secured by the hypothe- cation of 7 per cent of the annual customhouse receipts of the Rte- public, any deficiency to be made up out of general revenues. Referring again to the consolidated external debt, the present interest rate on which is 3 per cent per annum, it may be stated that interest has been regularly maintained since 1906, even during the extremely difficult war period. The sinking-fund payments were suspended during a portion of 1915 and of 1916. The amount of bonds outstanding just prior to the close of 1917 was 2,078,400, which total has since been reduced slightly. The 590,000 bonds purchased for redemption by the Government cost 291,195, an aver- age of 49.35 per bond. The price of bonds under the issue in January, 1918, was 49^, as compared with 50i at the closing of the London Stock Exchange, July 27, 1914. The Government of Colombia has guaranteed interest on a small amount of bonds of railway companies operating in the Republic. The report of the legislative committee on national credits, made to the Colombian Congress October 3, 1919, shows that the consoli- dated debt at 3 per cent per annum had been reduced to 1,868,200, from 2,700,000 in 1905, marking a reduction of one-third. The report also shows that the bonds of this debt were Quoted as low as 14 per cent when service was suspended, but that tne present rates are 69 and 70 per cent, which signifies a valorization of approxi- mately 50 per cent. The rise in the market value of the consolidated bonds in London is attributed to the good effect of the Government's GOVERNMENT, EDUCATION, AND NATIONAL FINANCE. 67 manifest ability and willingness to meet all foreign obligations, even during the financial stress of the war years. The committee recom- mends that every effort be made to increase and maintain service on the foreign debt, seeing in the return of confidence the key to future loans and prosperity for the country at large. The same committee reports that the total internal debt of Colom- bia is 4,079,870, or 20,399,350 Colombian gold dollars (1 Colombian dollar equals $0.9733 United States currency). In this amount is included the guaranty by the Government of the Girardot Railway bonds and debentures, secured by this public utility of great value and hopeful future. It is pointed out that the entire public debt only reaches the small total of $3.30 per capita, being the lowest for any nation, and that the external debt amounts to only the product of the national revenues for one year or about 1 per cent of the national wealth. This report states that, of the 4,000,000 dollars issued in the new " Cedulas de Tesoreria" (internal-loan bonds, see p. 69) 140,907 dollars had been amortized, in strict accordance with the promise of the Government. The product of the stamp act has been assigned to the amortization of these internal-loan bonds. Lazard Bros. & Co. are the fiscal agents of the Colombian Govern- ment in London, under contract extended for five additional years from the end of 1916. The monthly and quarterly balances of the Colombian Government with this firm are published in the Diario Oficial regularly; Nos. 16,057, 16,227, 16,390, and 16,507 contain the list of payments made on the foreign debt for the last months of 1916, the two semesters of 1917, and the first semester of 1918. During the last half of 1918 the Colombian Government paid in London the following sums on account: Colombian dollars. Consolidated foreign debt, 3 per cent 359, 691 Loan of 1913 335, 949 Sabana Railway loan 35, 294 Northern Central Railway loan 13, 065 Loan of 1911 52, 085 Total 796, 084 During the previous war years Colombia also paid in London the following amounts through Lazard & Co. to apply on loans : Colombian Consolidated foreign debt, 3 per cent: dollars- 1915 445, 331 1916 359, 692 Total 805, 023 Sabana Railway loan : 1915 .' 55, 297 1916 35, 297 Total 90, 594 Loan of 1913, Girardot Railway: 1915 423, 709 1916 429, 161 Total 852, 870 68 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Columbian Puerto Wilches Railway: dollars. 1915 26, 634 1916 26, 513 Total 53, 147 Loan of 1911: 1915 109, 787 1916 103, 761 Total 213, 548 Perier loan (emeralds deposited in Paris), 1916 34, 375 Grand total 2, 049, 557 From the above it will be seen that the Government has been paving back indebtedness at the rate of over 1,00.0,000 Colombian dollars per year, and the amount paid during the last half of 1918 was increased to about 800,000 dollars, notwithstanding the very difficult internal fiscal situation and the mounting expenses. If strict economy could be maintained in all Government expenditures, Colombia's financial future would be more than satisfactory, and the placing of a new loan, large enough to take up all the outstanding and diversi- fied items, would greatly assist the country financially and would help to solve the fiscal problems. The industries of the country are steadily progressing. Exports have consistently increased in tonnage and value year by year, and the year 1919 saw the country in a more prosperous condition than ever before and with the Government's revenue greatly increased by the influx of imports which followed the coffee crop of 1919, sold at extraordinarily nigh prices in New York. Exports of merchandise from New York to Colombia increased 900 per cent during the last half of 1919 as compared with the similar period in normal prewar years. . The per capita' debt is the lowest lor any Latin American nation. There is every evidence of increasing confidence and of a new era of progress and prosperity, in which the development of the country's natural resources of coal and petroleum will play a leading part if legislation can be made compatible with the just interests of foreign capital. And last, but not least, the increased wealth of the middle and lower classes, with the added opportunities for education and advancement, are fast bringing about a new condition in the country and a new thought imbued with modern conceptions. Certain conditions militate against foreign loans in Cplombia. The Government has suffered in the past from mistakes and ill- advised contracts for railways and loans, which have saddled it with a heavy burden not at all commensurate with the benefits received, and the country is still paying for those mistakes at a time when the money is most needed for new improvements, especially in transpor- tation (railways). Also, there may be quoted an extract from Phanor J. Eder's "Colombia": Diplomacy of a high order is * * * required to carry through negotiations to a successful termination; the Colombian Government and people ^ * are not willing to jump at the first offer of a loan, on any terms whatever; some clauses in GOVERNMENT, EDUCATION, AND NATIONAL FINANCE. 69 contracts which the foreign banker, in view of his home markets, insists upon, the Colombian is loath to grant. For instance, the very reasonable requirement that upon default in the payment of interest the principal shall become due and payable meets with * * * opposition. It is a fact that certain recent (1919) negotiations for large loans in Colombia (one of them a departmental loan for 6,000,000 dollars) have fallen through because of the failure of the parties to agree upon terms. The security offered was adequate, the financial condition of the political division was excellent in every respect, with ample in- come to meet its obligations, and the investment of the money was to be in paying utilities. The only difficulty was the inability to agree upon terms. A brighter aspect is shown, however, by two loans one for 1,000,000 dollars and another for 2,500,000 dollars made by Ameri- can interests to Departments in Colombia during the year 1919, and it is expected that the way will be opened for a better understanding in the near future regarding such questions. The value of the influence of such loans on tracle relations can not be overestimated. Failing to secure foreign loans during the war, as provided for in the new laws of 1916 and 1917, the Government turned to the policy of internal loans along the line of the bonds called "Cedulas de Teso- reria, " referred to herein, but this method has been strongly opposed by the business men of the country on the ground that the Govern- ment thereby takes what little surplus capital there is in the countrv and uses it for public improvemenjts, principally railways, which should be built by foreign capital, thus leaving only a small amount for the development of domestic industries and national resources which will provide a tonnage for the new railways. INTERNAL DEBT. As has been seen, the principal revenue of the Government is de- rived from the import duties on merchandise shipped into the country, these duties amounting to about 75 or 80 per cent of the total national revenue. Next in importance comes the revenue derived from the national salt mines, and, third, the product of the stamp tax. Ready funds are secured by drawing on the customhouses in the form of "vales," or vouchers, which are really treasury warrants payable by the customhouses of the country. These treasury bonds are accepted as part payment of duties on imports and are bought up by the mer- chants ana banks, who use them to pay import duties, national taxes, etc. As their local market value is determined by the law of supply and demand, they are often sold at as low as a 30 per cent discount. The internal debt of Colombia is divided into two classes, the " Consolidated Public Debt" and the "Floating Public Debt." The first is constituted of the so-called "nominal taxation," and also of the annual sum to be paid to the church according to stipulations now in force of the "Concordato" between the church and the Government. By virtue of Law No. 23, of 1918, all of the old principals of the Consolidated Public Debt were considered as imposed in silver money values and to be reduced to the new gold standard at the rate of 250 for 100. This disposition, though considered inequitable, has not been opposed by the interested parties, and is therefore enforced. 70 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The following items were allowed in January, 1919: Colombian dollars. Public instruction 660,662 Charitable institutions 149, 500 Hospital of San Juan de Dios: At 6 per cent 179, 728 At 12 per cent 89, 864 Various ecclesiastical foundations 854, 048 Nonreligious foundations 436, 680 The principal of the amount owing to the Department of Public Instruction earns 10 per cent per annum; that of the charitable insti- tutions earns 6 per cent per annum, and in this is included that of the religious foundations and the San Juan de Dios foundations (the former at 4^ per cent per annum) and the nonreligious foundations at 3 per cent per annum. These total interest charges cause an annual charge (outlay) of about 137,340 Colombian dollars, and to this must be added the annual sum of 82,000 dollars, in cash, received by the church as indemnity according to the Concordato (the treaty between the Colombian Government and the Holy See). Service of this debt is made every six months, but was suspended during 1918 and 1919 on account of the financial difficulties of the Government. The Floating Internal Public Debt consists of the following items : Vouchers of the war of 1898. Vouchers of the war of 1899. Military compensation vouchers.' Colombian bonds. Treasury notes. Camboa Road bonds. Amaga Railway drafts. Antioquia Railway drafts. Caldas Railway drafts. Tolima Railway drafts. Cauca (Pacific) Railway drafts. Foreign vouchers. Internal-debt bonds. Treasury promises to pay. The grand total of all these obligations reached the sum of 18,- 989,861 Colombian dollars, but 14,802,406 dollars had been retired up to the beginning of 1919, leaving only an effective total of 4,187,453 dollars. Many writers on economics in Colombia have urged the unification of the internal debt and the cession of the perpetual character of the "nominal tax" and the annual indemnity paid to the church, but this has not been done. New obligations of a like character are constantly being created on account of the fiscal situa- tion of the Government during the war, when many similar expe- dients were adopted to meet pressing obligations. A full list of these internal obligations follows, with a statement of their actual status at the end of 1918: GOVERNMENT, EDUCATION, AND NATIONAL FINANCE. 71 Class of obligation. Total. Paid. Balance due. Treasury bills Colombian dollars. 40,860 385,700 15,861,158 166, 722 127,500 120,000 281,460 710,000 1. 138, 134 190,000 215,000 2,536,129 2,972,520 300,000 303, 187 887.300 542,328 150,000 82,034 827,000 57,334 3,. 554, 841 2,860,400 821,229 1,426,000 2, 382, 339 8,182 458,222 244,768 Colombian dollars. 23,257 382,700 15,582,343 165,765 115,000 63,330 228,800 683,500 1,022,351 183,000 78,000 2, 294, 971 1,228,122 263,000 301,987 877,300 481, 750 Colombian dollars. 17,603 3,000 278, 815 957 12,500 56, 670 52,660 26,500 115,783 7,000 137,000 241, 158 1, 744, 398 37,000 1,200 4 per cent bonds (special issue) 3 per cent floating bonds Colombian Government bonds.... .... Cam boa Road bonds Internal-debt bonds . . . Dorada Railway drafts Cartagena Railway drafts AntiO'^uia Railway drafts . . Pacific Railway drafts Pacific Railway special drafts Do. Pacific Railway construction drafts ... . . . Girardot Railway drafts Tolima Railway drafts. . Occidental Railway drafts Vmaga Railway drafts. 60,578 150,000 81,884 575 1,729 374,052 6,840 15,808 1,056,886 11,686 7,682 558 '2 Caldas Railway drafts . . . . Treasury promises to pay: Old 150 826,425 55,605 3, 180, 789 2,853,560 805, 421 369, 114 2,370,653 500 457,664 244,766 New Vouchers of war of 1895 Vouchers of war of 1899 Foreign drafts Vouchers, military damage Treasury vouchers (new)T Treasury vouchers . . . . . Tax vouchers, treasury Vouchers, export "primas" Vouchers, military "Ceses" Total . 39, 640, 347 35,139,823 4,500,524 i The "railway drafts " are treasury warrants given in lieu of cash payment of subsidies allowed by rail- way (legislation, usually at the rate of 10,000 or 15,000 Colombian dollars per kilometer of line constructed, though the allowance for some railways is higher, according to contract. From the foregoing figures it will be seen that at the end of 1918 the internal public debt of Colombia amounted to 4,500,524 Colom- bian dollars, carrying an annual interest charge of approximately 220,000 dollars. The figure given above nearly agrees with the previous total of 4,187,455 dollars, the difference being accounted for in the time of taking off the balances and in the inclusion in the one amount of various small items not taken into consideration in the first figures quoted. The balance of the actual fiscal condition, published by the Minister of the Treasury on June 30, 1919, showed the following figures: Colombian dollars. Total of the present budget, including former items 21, 800, 000 Expenses not ordered in budget 2, 500, 000 Balance of ordered expenses 19, 300, 000 Colombian dollars. Product of actual revenue 10, 300, 000 Treasury vouchers issued 1, 100, 000 Bonds issued 2, 500, 000 Bank loans 1, 600, 000 15, 500, 000 Difference 3, 800, 000 19,300,000 19,300,000 72 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. To the above deficit should be added the bank loans of 1 ,000,000 dollars and also the treasury vouchers retired, which reduce the product of the revenues by 500,000 dollars, leaving a total deficit for February, 1919, of 5,900,000 dollars, in round numbers. There is also a difference of about 1,000,000 dollars in the amount of expenses ordered for April and March of 1919 and the estimated amount of the total income for these two months, making the probable deficit 6,900,000 dollars. If the amount of "Cedulas de Tcsoreria" (in- ternal-loan bonds) issued up to February 28, 1919, or 1,900,000 dollars, is deducted from the above, the net deficit is then 5,000,000 dollars, roughly. According to the presidential message of June 30, 1919, there was the following money in circulation in Colombia at the close of the fiscal year (all values in Colombian gold dollars, 1 dollar equalling $0.9733) : Colombian dollars. Colombian gold coin 7, 700, 000 Colombian paper currency r 10, 180, 000 Colombian silver coin 6, 460, 000 Colombian nickel coin 1, 194, 000 Treasury notes and vouchers 3, 200, 000 Bank mortgage notes 1, 200, 000 Total 29, 934, 000 To the above amount there should be added a small amount of English gold coin in the country and approximately $9,000,000 in the United States gold coin imported into Columbia during 1919. The final calculation of the 1919-20 budget shows: Revenues, 19,740,750 Colombian dollars; authorized expenditures, 19,324,000 dollars; balance in favor of revenue, 416,750 dollars. A very large increase in imports was noted between May and September, 1919, due to heavy buying in the United States of all sorts of merchandise, and the total revenue was undoubtedly much greater than the sum estimated. GENERAL CONDITIONS AFFECTING NATIONAL INDUSTRIES. The industries of Colombia may be divided roughly into four great classes, agriculture, mining, forest products, and manufactur- ing the last-named being of relatively small importance. The most important of the national industries, agriculture, may be again divided into planting and cattle raising. Mining, of next importance, includes gold and platinum placer mining, vein mining, coal, salt, and petroleum, the last-mentioned promising to be of primary importance in the near future and attracting more attention at present than any other branch of development in the country. Forest products embrace medicinal plants, gums and balsams, and lumber. Just as the people, living conditions, transportation, etc., of Colombia are affected by the broken topography of the country, so are the industries affected and divided into zones or districts, each very different from the other and therefore necessitating a separate study. This is especially true of agriculture. With two or three notable exceptions, agriculture is carried on in Colombia in the most primitive manner. Modern machinery and implements are almost unknown, and there are entire regions without a steel plow of modern make, the only implement being the universal machete. However, local capital is being attracted by agriculture in the coast districts, which have been the most backward in develop- ment of agricultural resources, and it may be predicted that ma- chinery will be imported in greater quantities during the next few years, principally for sugar cane, rice, and cotton. In mining, great contrasts are seen in the country. The native placer miners do not even make rockers or sluice boxes, but depend largely upon the wooden "pan" or "batea" for washing; while near by one may find some of the most modern dredgers, dams, and placer-mining equipment, costing millions of dollars and owned by foreign companies, principally English and American. The same contrast may be observed in the case of quartz and vein mines. In manufacturing, greater improvement and modernity are seen than in any other Tine. Textile plants are very well equipped, and the newer mills contain the very latest textile machinery and equip- ment. It is in this line that the greatest development mav be expected during the next few years. Orders for new textile plants and equipment and extensions for old plants are limited only by the manufacturers' ability to deliver the machinery, and recent new mills have capitalizations as high as 600,000 Colombian dollars. In the interior there is an abundance of easily developed hydro- electric power, and new plants are designed to use this class of power. Many small towns, heretofore lacking electric lighting plants, are now ordering equipments. The location of a petroleum refinery at Barranca Bermeja on the Magdalena River by the Tropical Oil Co. will increase the purchase and use of many different kinds of machinery, principally those of 73 74 COLOMBIA: A COMMERCIAL AND INDUSTRIAL ' HANDBOOK. small units. The production of residual fuel oil by this refinery will also greatly assist river-steamer navigation by reducing the weight of the fuel (wood is now carried) . It will allow more tonnage or less draft when the river is low and will obviate the loss of time in loading wood fuel, thereby facilitating the movement of freight on the main transportation highway of the country, the Magdalen a River. Large quantities of wheat, cotton, lard, and rice were formerly imported oy Colombia principally from the United States, prior to the war. During the war these commodities could not be secured in sufficient quantities, very high prices prevailed, and there was difficulty on account of the shortage of ocean tonnage; so efforts were made to stimulate domestic production of these staples. As a result, the importation of lard has been entirely suspended, the country now producing enough for its own use and even exporting to Cuba and Panama. More wheat has been produced in the in- terior, principally on the high table-land of Bogota, and shipped to the coast regions or milled in Bogota and Medellin. More corn has been raised in the country, and during the war a small surplus was even shipped to the United States, because of the high prices ob- taining Here at that time. The production of cotton for the local textile mills has been increased in the Barranquilla district, cotton being sent into the interior as far as Medellin, where there are several large textile mills. Attention has been given to rice cultivation in the Cartagena-Sinu region, where conditions of soil, climate, and moisture are good. Up to 1920, however, the yield has not been sufficient to supply the demand even of the coast region, where rice is an important staple formerly imported in large amounts from the United States, but it can be predicted that the production will be greatly increased in the near future through the adoption of modern methods of rice cultivation on a scale never before (attempted in Colombia. Manufacturing also received an impetus from the trade restric- tions of the war period. Prices of domestic manufactures are fixed by the cost of the imported articles of the same quality, and the heavy advance in price of all merchandise spelled increased profits and prosperity for the Colombian manufacturer, allowing large surpluses to be created for ultimate investment in increased produc- tion facilities at such time as deliveries can be secured on machinery and equipment for factories of many kinds. Colombian industry (consisting principally of textile mills) is protected by a high import tariff, which, combined with the low labor wage, more than offsets the disadvantage to #the Colombian manufacturer of having to import most of his raw materials and all of his machinery, equipment, and factory supplies. It may be Sredicted that domestic manufacturing will be greatly increased uring the next few years. As a direct result of the scarcity and high prices of imported articles and the increasing cost of living, wages in all lines have been increased, and these increases have been continued to keep pace with the steadily advancing prices of necessities. The effect has been felt, to a greater extent than elsewhere, in Santa Marta, Barran- quilla, and Cartagena and up the Magdalena River Valley in trans- portation lines of labor. The ulterior districts of Bogota and Boyaca GENERAL, CONDITIONS AFFECTING NATIONAL INDUSTRIES. 75 have not been so much affected in agricultural lines, though office employees and others have received substantial increases. There was a shortage of labor in 1919 for the heavy and very valuable coffee crop, which commanded such high prices in New York, and wages never before known were paid to coffee pickers and cleaners, averaging, in some districts (notably Caldas), as high as $1.20 gold per day. Mining in all branches was greatly affected in Colombia during the war, this being true not only of the native placer miners using very primitive methods but also of the large foreign companies operating large placer and vein mine holdings equipped with modern machinery, dredges, etc. The extraordinarily high prices obtained for platinum, a war necessity the price being fixed by the United States Government at $105 per ounce during the war and reaching still higher levels after the armistice attracted an increased number of workers from the coast river regions to the west of Cartagena, from western and northern Antioquia, and from the Buenaventura coast region to the placer ground of the upper Atrato and San Juan Rivers, and production was increased despite the unfavorable weather condi- tions of 1918, when abundant rains were lacking and in many districts there was not enough water for platinum washing. The principal production of gold is by large dredging companies located in northern Antioquia and in the west-coast gold-platinum districts. These companies were directly affected by the restric- tions imposed on production through war taxation the very high income (or production-profits)' tax making it better policy for the companies to hold over the richest ground until after the high taxes had been removed and in the meantime only work low-grade ground to meet expenses and keep their organizations together, thereby curtailing the production ol gold, even though operating expenses had enormously increased on account of the extraordinary cost of new machinery, equipment, and supplies. The demand for platinum during the war and the shutting off of the Russian supply stimulated interest in platinum production in Colombia, where combinations of old dredging companies were formed, new plants were introduced, and new ground was opened up for dredging. However, the delays in the delivery of machinery and its installation on the ground prevented this increased produc- tion from being felt very greatly until after the armistice, the main increase in platinum production coming from the native miners. The war also affected the development of new vein mining and hydraulic properties in the interior. Deliveries could not be ob- tained on new equipment, and the high cost of new machinery and equipment, and the very high operating costs, curtailed new de- velopment except in a few cases of very rich and proven properties. Since the armistice, however, there has been an increased interest in Colombia in mining properties, and it may be predicted that this industry will receive more attention. FOREST PRODUCTS. GENERAL SURVEY OF RESOURCES. Unlike the agricultural products of the country which are of all kinds, both tropical and of the temperate zone the forest products of Colombia are all tropical in their nature. They may be divided hi to several large classes, namely, medicinal plants, gums and bal- sams, tanning-extract materials, and lumber the last-named being of relatively small importance so far as exportation is concernecf. Oil nuts, coconuts, and fibers are also potentially important products, but are little developed. There exist in many places large natural supplies of oil nuts, such as those of the corozo palm, and also large areas of native fibers, such as the "fique," a specie of henequen, and the "pita," related to the pineapple family and producing a very long, fine, and strong fiber that is little used except by the natives. Varnish gums are little known or exploited but exist in large quanti- ties. Another important forest product is the " tagua" or vegetable ivory, which is of interest to the United States now that this country is becoming the largest button-manufacturing nation in the worm. The relatively low value and large bulk of most forest products, combined with the lack of transportation facilities in the country, restrict the exploitation to areas tnat t are more or less accessible from either the Caribbean or the Pacific coast or the many navigable rivers of the interior which afford an outlet to the coast. Vast areas of the more isolated ulterior contain great quantities of "tagua," "cinchona" bark, rubber, chicle, divi-divi, fibers, and the like, but are untouched because of the lack of labor and population and the absence of transportation even by pack mule or canoe. Among the forest products of Colombia are the following: MEDICINAL BARKS, ROOTS, AND EXTRACTS. Cinchona bark (quinine). Ipecac. Sarsaparilla. Cascara amarga ^''Honduras bark " : tonic). Winter's bark (Drimys Winteri; tonic and scurvy remedy). Simaruba (tonic; bark of root). Rrameria (phatany bark). Spigellia (worm remedy). Aloes extract. BALSAMS AND GUMS. Balsam of copaiba. Balsam of Tolu. Copal gum ("algarrobillo"). RESINS, WAXES, AND VARNISHES. Carnauba wax (Carnahubeira}. Quika rfisin ( Cerddium spinosum, Tuhane). Ceroxylon (Ceroxylon andicold). 76 FOBEST PRODUCTS. 77 VEGETABLE OILS. Corozo palm nuts (also "cuescp"; like "cohune" nut of West Indies). Noli palm nuts (species, Elaeis, related to West Africa commercial oil palm). Coconuts. Tagua (vegetable ivory). TANNING BARKS AND EXTRACTS. Mangle bark. Divi-divi. Algarroba bean. Ginger (found wild near Rio Hacha). RUBBER AND CHICLE GUMS. Balata (plant, Sapotaceae). Lirio gum. Chicle. Rubber (''caucho negro"). Rubber (Para rubber, Hevea orSirigna). DYEWOODS AND DYES. Brazil wood (exported from Rio Hacha district). Indigo. MEDICINAL PLANTS. QUININE. 'Fifty years ago Colombia led in the production of "cinchona" bark or quinine. In 1875 about $9,733,000 worth of this article alone was exported, but the cultivation of quinine hi Java and the British East indies, where the alkaloid content was greatly increased by scientific methods of cultivation, destroyed the industry in Colombia through the resulting drop in price. It was no longer profitable to gather the bark in Colombia, where production was also gradually reduced by wasteful and careless methods of collection, the trees producing the valuable bark being in many cases destroyed. Also, the Colombian product was discredited by reason of the adul- teration with other barks similar in appearance but not containing a high alkaloid content. In Colombia there is a great variety of cinchona trees, with the alkaloid content varying greatly. In 1879 the sulphate of quinine reached the high price of 16s. 6d. ($4.01) an ounce, but in 1883 it dropped to 3s. 6d. ($0.85) and hi 1885 quinine was worth only 2s. 6d. ($0.61) an ounce and the industry in Colombia received its death blow. The great areas of production at that time were the tropical forests and plains of the Amazon watershed to the south, along the head waters of the Apaporis and Caqueta Rivers, the tree being found also on the slopes of the Andes east and south of Pasto. In 1917 Colombia was visited by Dr. H. H. Rusby, dean of the College of Pharmacy of the city of New Yoek, accompanied by a corps of assistants, the principal object of the expedition being to search for medicinal drugs, particularly different varieties of cin- chona, with the idea of discovering a species that would yield a higher percentage of the valuable alkaloid than the kinds ordinarily known. It has been thought that the quinine industry of Colombia can be revived by the discovery of some simple method of refining the crude bark in the forests the alkaloid thus procured to be refined at the 78 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. laboratories later. There have been no recent exports of cinchona bark from Colombia. The country is exceedingly rich in all sorts of medicinal plants, wax palms, oil seeds and nuts, dyes, etc., but, as has been remarked, exploitation has been carried out only in the accessible regions adjacent to navigable rivers or to the coast. IPECAC. The principal supply of ipecac comes from the port of Cartagena and is gathered in the valley of the Sinu River, southwest of Carta- gena, where the plant grows wild. In recent years a considerable portion of the supply has also been gathered along the valley of the Atrato River. The ipecac of commerce is shipped from Cartagena in the form of the dried roots, the quantities exported to the United States being as follows: Years. Pounds. Value. 1915... 118, 078 U.S. currency. $248, 524 1916 64,781 155,323 1917 26,458 42,506 1918. 47 181 98 564 1919 28,071 59,167 SARSAPARILLA. Sarsaparilla grows in the drier forests of the cprdilleras on both sides of the Magdalena River Valley and is sold principally in Carta- gena. The root is obtained from a species of smilax (probably Smilax Ornato, Hook. F.), a wide climbing plant ascending lofty trees. The plant has a stout rhizome which throws off slender cylindrical roots that creep for several feet a few inches below the surface of the ground. These roots are gathered by the natives, dried, and packed in bundles for shipment to the coast for export. No statistics are available to show the exact amounts of sarsapa- rilla exported from Colombian ports, but the total quantity is small as compared with the ipecac exports mentioned above. The work of gathering these plants is desultory and, seasonal, the natives usually choosing the ary season for penetrating into the forests to gather them. There is no organized system for the work, though numerous concessions have been granted to foreigners and natives alike for the exploitation of forest products on a large scale. These efforts have all come to naught on account of the topographical and climatic conditions and the small and unreliable labor supply available the Negroes and mulattoes of the river regions being per- suaded to go into the interior of the valleys only when impelled to do so by a bad crop season or lack of other employment along the river. A few of the general-merchandise traders of Cartagena and Bar- ranquilla have a knowledge of medicinal plants and for years have carried on a business in them, receiving them from agents in the inte- rior who trade goods (principally cheap cotton textiles) for these products, with tne native gatnerers. FOREST PRODUCTS. 79 "BALSAM OF COPAIBA" AND "BALSAM OF TOLU." "Balsam of copaiba" and " balsam of Tolu" are exported from both Cartagena and Barranquilla and are gathered over a wide range of country, including the Magdalena River Valley and the region south and west of Cartagena. The balsam of Tom takes its name from the town of Tolu, on the Bay of Morrosquillo, southwest of Car- tagena and near the mouth of the Sinu River, since from this port the principal supply is shipped to Cartagena. Cartagena and Barranquilla have exported balsams to the United States in the following values : Years. Cartagena. Barran- quilla, all balsams. Balsam of copaiba. Balsam of Tolu. 1913 U.S. currency. $1,887 14,189 U.S. currency. $10, 165 U.S. currency. $29,638 15,584 27,944 22,150 13,180 42,066 119, 198 97,264 1914 1915 12, 517 1916 3,726 1,463 1917 1,750 3,804 1,767 () 1918 1919 . . 1920 () a Figures not available. The "canime" or "copaiba" tree (Copaifera officinalis, JL), which yields the balsam of copaiba, an important oleo-resin contained in the secretion | ducts throughout the entire length of the tree, is found in all tropical and semitropical Colombia, including the area to the east of the Magdalena River Valley, the southern interior, and the west coast. It is collected by cutting a deep V-shaped incision into the trunk of the tree near the base and penetrating to the center of the tree. Into the plate-like cavity thus made is discharged the oleo- resin, which is transferred to old kerosene tins. From three to four of these tins holding, when full, 5 gallons each are frequently col- lected from a single tree; the yield, however, is very variable, and some trees yield but little balsam. A tree yields this valuable prod- uct only once, since the incision reaches the heart of the tree and pre- vents it from secreting the balsam the second time. As is the case with the medicinal roots and barks, and also with chicle and rubber, there is little organization connected with the gath- ering of balsam products, the work being carried on in a casual and seasonal manner by the natives. In some cases the mulattoes and Negroes of the river valleys have preempted large areas of the forests around their villages and exercise some sort of a recognized claim on mutually understood areas so long as trails are kept open with the machete and the trees tapped regularly hi season. The number of copaiba trees on a given area varies very greatly, and at best they are scattered through the forests, with only a few trees to the acre. No attempt has been made to cultivate plantations of this tree, as has been done with rubber trees, but there is no doubt that the production of the balsam of copaiba could be greatly in- creased in Colombia if the labor situation were better. 80 COLOMBIA: A CO.M.MKIICIAI. AND IXDI-STUIAL HANDBOOK. OTHER MEDICINAL PLANTS AND PRODUCTS. Notwithstanding the great variety of other medicinal plants that are abundant in the country, the only medicinal export from Colom- bia other than ipecac, sarsaparilla, and the balsams of copaiba and Tolu, is the extract of aloes, produced near Rio Hacha on trie Goajira Peninsula, on the plantation of a progressive Colombian, Sefior Loises C. Henriquez. The quantity exported in 1915 was 253 kilos (557.7 pounds), and during the first six months of 1916, 460 kilos (1,014 pounds). No recent statistics are available. The industry is in its infancy, being new to the locality and also to Colombia, though the plants grow wild in the vicinity. The aloe .plant requires a dry soil, and the leaves are ripe for the extraction of aloes in the dry sea- son when they assume a colored hue. Aloes is a well-known domestic drug in Colombia, plants being grown in almost every garden in the tropical and subtropical parts of the country, and the dry leaves are to be found for sale in most public markets of the larger towns. It is presumed that small quantities of the dried leaves have been exported from Colombia, but there are no statistical records to show the amounts. RESINS, VEGETABLE WAXES, AND VARNISHES. There is in Colombia a great variety of resins, vegetable waxes, and varnishes, but they are little exploited and almost unknown among the people of the country. There are undoubtedly many of commercial value, but the difficulties are lack of labor and inaccessi- bility. The ceroxylon palm is very abundant in Colombia, there being two known and recognized species. The ceroxylon palm of the eastern Andes is apparently distinct from the Ceroxylon andicola of the Quindio region of the Central Cordillera, having a slender bole only 20 to 30 centimeters in diameter but growing to a height of 30 meters and presenting a very beautiful appearance. This palm occurs at all altitudes from 1,300 to 9,000 feeUaboye sea level and is found in all the Andine regions of Colombia, sometimes in small groves and some- times scattered. The species of this palm found in the eastern Andes produces less wax than the Quindio variety, which is very similar in its product to the "carnauba" wax of Brazil and the "candelilla" wax of Mexico, except that the melting point (93 C.) is higher, that of carnauba wax being 84 C. and of candelilla 70 to 72 C. This wax is produced by the leaves of the, palm and also scraped from the trunk in the form of a hard, brittle, yellowish-brown or grayish substance. It is refined by throwing it into boiling water. It has been used for centuries by the natives of the Andean region for making candles, but has never been exported in commercial quantities from Colombia, nor has any organized attempt been made to exploit it. Like the carnauba palm of Brazil, the ceroxylon palm of Colombia serves a number of domestic purposes. The long boles are used for fencing and for hut construction; the heart, called "palmito," is a palatable food; the roots possess medicinal qualities; and the fibers are employed for the manufacture of crude homemade brooms, ropes, mats, etc. The palm has the ability to withstand extreme drought, which makes it especially valuable. The wax yield varies, but on FOREST PRODUCTS. 81 an average about 10,000 leaves are required to produce 100 pounds of wax. The wax is employed in many ways in modern industry. Its high melting point and ability to take a high gloss when polished make it a valuable ingredient in floor and furniture polish, phono- graph records, cable coverings, electrical insulation compositions, tailors' chalk, carbon copy paper, etc. The industry in Brazil has increased greatly since the outbreak of the war. Hamburg was for- merly the principal market, but large quantities went to Liverpool. There are different grades of carnauba wax "yellow floor," "yellow prime," and "yellow." The last two grades are derived from the older plants and bring lower prices. Carnauba wax is refined in industry by remelting and straining, and it is bleached by treatment with potassium dichromate or with Fuller's earth. Paraffin is often added to lower its melting point. "Quika" resin is a new product found throughout the Goajira Peninsula of Colombia. It is produced by a small tree (Cercidium spinosum, Tvlsane), the branches and trunk being covered by this resin, and also the roots when exposed to the action of the air. A single tree is said to yield several pounds of the resin, and, as the tree is very abundant in certain parts of the Peninsula, it is thought that, if the product is commercially useful, it might be exported. Samples have been sent by the agricultural department of the Colombian Government to Europe and the United States for analysis and introduction to commerce. The Indians of the Pasto region have an ancient industry in making the celebrated "Pasto" varnish, which they color and use for cover- ing gourds and wooden utensils of various kinds. This varnish is also the product of a palm, possibly related to the cyroxylon palm of the regions farther to the north. OILSEEDS AND PALM KERNELS. A variety of palm-oil nuts is found in Colombia, but the industry is not exploited to any extent as yet, though a recent effort to estab- lish an oil mill at Barranquilla has been made by an American vege- table-oil expert associated with a Colombian. This new plant is to crush the "corozo " palm nuts and refine the oil for export, principally to France, where there is a better market than in the United States. The corozo palm is abundant throughout tropical Colombia and is found in great numbers in the Carribbean coast regions, where it grows in the dense forests. Where lands have been cleared for cattle pastures, these palms are left to afford shade, and it is planned at some future date to utilize them for vegetable oil, which these nuts contain in a very high percentage and of rich quality. This oil has long been extracted ana used by the Indians and Negroes of the trop- ical regions as a sort of vegetable butter and food product. The corozo nut is similar to or the same as the "cohune palm nut of Central America. It grows in all localities of the Magdalena River Valley and also in the lower Cauca Valley, in the west-coast region. The yield of nuts from the palms is very heavy, 100 pounds or more being produced by each plant every season, and the percentage of extraction of oil is also rather high. This product should be impor- tant for the coast regions and the Magdalena Valley, since these nuts 37558 21- 82 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. are easily gathered in great abundance over a wide area; but the "trouble is the lack of labor and the high cost of freight, amounting to about 5 cents per pound from the interior of the Magdalena Valley via the river to tne coast towns. In 1915 Senor C. T. Matias, of Bogota, was given a concession by the Colombian Government for 20 years to export corozo and other palm nuts from the region of the Chiriguana River in the Departments of Santander and Magdalena. It is to be hoped that the small oil mill established at Barran<|uilla will prove to be the beginning of a new and profitable industry for the country. Other oil-producing palm nuts are the "tucan, " commercially known as "Panama kernels," which are harder and tougher than the ordinary palm kernels or copra and yield from 37 to 48 per cent by weight of a cream-colored, fatty oil similar to that of the ordinary palm kernels, but with a slightly higher melting point. The tucan kernels bring $5 to $10 less per ton than the fine palm" kernels of Panama and Central America. Other varieties of palm kernels are produced and shipped from Brazil, Paraguay, Ecuador, and Venezuela. COCONUTS. The principal coconut-producing region of Colombia is the coast southwest of Cartagena, where there are a number of small groves owned and farmed by the Negroes and mulattoes of the region. This is the only section of the Colombian coast where coconuts are grown in anything like commercial quantities, though the palms are found from Rio Hacha to the Panama boundary and all along the Pacific coast, where they produce better farther south in the region of Tumaco, out of the heavy-rain belt. The coconut is a staple article of diet among the people of all classes on the coasts, in the river valleys, and even as far inland as Medellin. Local market prices range at times as high as 20 cents per nut, higher than the export price paid for coconuts at Colon, and this factor, combined with the low production, prevents the nuts from attaining any great importance as an article of export, although there is every indication that conditions are very good for extensive plantations of the palm along the coast from Cartagena toward the Bay of Uraba. At the present time the largest and more frequent groves are along the shore of the Gulf of Morrosquillo, near the mouth of the Sinu River, west of Cartagena, and the nuts are brought into the Cartagena market in small launches and sailing canoes of the natives. There is also a considerable trade in coconuts with Colon, carried on by small schooners which trade with the natives along the coast, exchanging "trade goods" (principally cheap cotton textiles) for nuts, platinum, goloT dust, dried beef, and the like lard and live poultry also being items in this traffic, which is mainly contraband in its nature. The value (in United States currency) of the coconuts exported from Cartagena to the United States during six recent years has been as follows: 1914, $31,798; 1915, $1,870; 1916, $35,176; 1917, $18,626; 1918, 82,656; 1919, $5,369. The falling off of exports of coconuts in 1918 and 1919 has been caused by the increase in schooner trading with Panama, as noted, FOREST PRODUCTS. 83 and the lower prices being obtained for copra in the United States, making it more profitable to market the raw nuts locally in Carta- gena for domestic consumption. The increase of candy making in the interior, principally at Medellin and Bogota, where modern candy factories have been started, is also one of the reasons for the better domestic demand for coconuts. Another factor is the movement of the population, which is coming in from the outlying districts to the coast cities, being attracted by the factory employment, the better living conditions, and also the better wages procured in dock and freight work, etc. This movement tends to decrease the out- put of foodstuffs in the interior and make the demand greater in the cities of the coast. For these reasons the values placed on groves is high as compared with those in the islands of the West Indies, Central America, Mexico, and the South Sea islands, a grove being valued at the rate of $5 for each producing palm over six years of age. Each palm is esti- mated to produce a net return of $1 each year and to produce 20 per cent annually of its valuation. It can not be predicted that the production of coconuts will in- crease in Colombia; labor is too scarce, even though conditions are good. Recently quite large shipments have been made from Tumaco and Buenaventura. In the first-named region conditions are ideal on the low, sandy islands or coast reaches removed from the line of the open seas and the danger of heavy winds. The production seems to be slightly increasing around Tumaco, but labor is lacking for any great improvement. TANNING BARKS AND EXTRACTS. Of tanning materials Colombia exports three kinds, mangrove bark, divi-divi pods, and quebracho wood the last-named in small amounts, however. The prepared extract of mangrove bark has also been exported to the United States from Cartagena, where a large factory was erected several years ago which finally proved to be a failure and has since suspended operations. Mangrove bark is gathered in the regions of Barranquilla and Car- tagena, the latter district containing the largest fields of mangrove swamps, which are also found in large areas along the delta of the Sinu River to the southwest of Cartagena. The divi-divi (Caesalpinia coriaria) is found in abundance in the region of the Goajira Peninsula to the east and south of Rio Hacha, the tree growing in a sandy soil mixed with clay, in a semiarid region. The pods that contain the tanning extract are gathered by the natives and exported from the port of Rio Hacha. It is one of the principal exports of this part of the country. For particulars of divi-divi and all other tanning materials of Colombia, the reader mav be referred to Special Agents Series No. 165, "Tanning Materials of Latin America," pages 16-29. During the war divi-divi reached a price of $75 per ton. A firm in Barranquilla contracted with New York importers to deliver divi-divi for $30 per ton but failed to make such delivery. Ocean freights on divi-divi, which is usually handled by small sailing ves- sels, were $8 per ton before the war and are now $24 per ton from Colombia to New York. Rio Hacha produces 6,000 tons annually, ,84 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. and most of this has gone to the trading companies at Curacao in small schooners, although an American firm specializing in the im- portation of tanning materials did have three schooners of 800 tons each which they sent to Rio Hacha and Maracaibo in Venezuela for divi-divi and mangrove-bark shipments, taking down trade goods in exchange. The stowage of divi-divi packed in sacks is 110 cubic feet to the ton. The process of baling it for shipment was a failure, and the pods must be packed in fine bags to prevent the loss of the fine powder which coarse material would permit to sift out and become lost in transit. This powder lies against the pods but not in them and, when dry, is dusted off easily. Before the war the Germans practically controlled the tanning- material market of South America, and American tanners and importers were forced to buy from Hamburg and reship to the United States. The largest depot of supply of divi-divi is at Curacao, or at Rio Hacha in Colombia, where, in December, 1918, there was 500 tons available for immediate exportation, with no ships to carry it. Imports of tanning materials from Colombia to the United States are shown in the following table: Tanning materials. Fiscal year 1916. Fiscal year 1917. Calendar year 1918. Calendar year 1919. Quantity. Value. Quantity. Value. Quan- tity. Value. Quan- tity. Value. Crude: Mangrove bark tons.. Quebracho wood do. . 790 $18,220 442 170 2,295,932 $9,169 2,887 37,445 142,064 3 $75 230 $5,764 All other Extracts, other than que- bracho pounds. . Total 3,221,955 4,182 281,949 260,687 117 16,154 410 304,351 191, 565 16,346 6,174 The value of exports of tanning materials from Cartagena to the United States during six recent years is shown below (in United States currency) : Tanning materials. 1914 1915 " 1916 1917 1918 1919 Divi-divi $2 600 $4,132 $16,414 $1 336 Taniiic extract ... 50,866 125,146 229,174 $44,223 $24,764 19 NOTE. The quantity of tannic extract shipped from Cartagena to the United States in 1917 was 733,751 pounds, and in 1918, 375,881 pounds. A summary of Colombian Government statistics for eight years gives the following totals of divi-divi exports: FOREST PRODUCTS. [Kilo- 2.2046 pounds; Colombian dollar=S0.9733.] 85 Years. Quantity. Value. Years. Quantity. Value. 1906... Kilos. 3,531,113 Colombian dollars. 124, 389 1910... Kilos. 3,998,446 Colombian dollars. 91, 369 1907. . . 5,831,827 186,118 1915.. 1. 375, 958 48,047 1908 4,688,046 125, 766 1916 4,688,685 134, 826 1909. . . 3, 873, 272 100,588 1917.. 1,615,385 52, 474 NOTE. These figures show the total export returns from all shipping ports of Colombia and include the amounts exported from Rio Hacha, the principal shipping point for this product, whence exports go to Curasao, Dutch West Indies. CHICLE. Although several species of the "zapote" tree are found in all tropical regions of Colombia, in only two regions of the country has the industry of the collection and exportation of chicle gum become of any great importance namely, the Magdalena River Valley and the Pacific coast. In the river valley the region exploited is that of the Department of Santander, lying to the east of the Magdalena, along the Sogamoso River. On the Pacific coast the principal terri- tory is the Atrato River region above and below the town of Quibdo, though exports of "lirio" gum are beginning to be made from the Pacific port of Buenaventura, which receives chicle and lirio gum from the valley of the San Juan River, south of the Quibdo district the latter region exporting via the Gulf of Uraba down the Atrato River and via Cartagena. Prior to 1917 the existence of the zappte tree in Colombia was little known, exports of chicle gum to the United States in 1916 amounting to only 5,218 pounds, valued at $1,784, and even less in 1917, when 2,010 pounds, valued at $515> were exported to the United States, the only purchaser of chicle from Colombia. The disturbed condition of Mexico attracted attention to Colombia, and an inspection of the Colombian forests was made by a Mexican chicle expert, who discovered large areas containing this valuable tree but who was obliged to show the natives how to select the trees for tapping and how to tap the trees, collect the gum, refine it, and pack it for export. Dealers at the principal seaports, Cartagena and Bar- ranquilla, were encouraged to trade lor chicle with the natives of the interior, and owners of large tracts of virgin forest lands were urged to organize exploitation of their lands. During the war prices were high, averaging 70 cents per pound and stimulating interest in this product for export, but early in 1919 prices paid in New York by importers dropped to as low as 42 cents; traders were not pushing the business under these conditions and were holding quantities on hand for better market conditions. It is reported that the zapote tree is very abundant in the tropical forests of Santander and also throughout the entire Atrato and San Juan River regions of the Pacific coast, with additional reports of extensive areas in Narinp in the region of the Patia River Valley, from which small quantities have recently been exported through Tumaco. The trees, however, do not occur in dense groves but are scattered throughout the forests, and trails have to be cut through the jungle, camps established, and natives induced to engage in the work. As a rule, labor will work at gathering this gum only during 86 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. certain seasons of the year that is, during the dry season and when not engaged in planting corn, etc., on a small scale along the larger rivers. The Negroes of the Atrato region go into the forests for chicle, lirio, and balata gums when not engaged in placer mining for gold and platinum, and the industry is carried on in a very irregular manner, trading being through stores in Quibdo, Istmina, or Negria. These stores are branches of importers and exporters of Cartagena or Buenaventura, the trade being carried on by exchange, principally of cheap cotton textiles. It has been found very difficult to get the natives to deliver the unadulterated chicle gum or to adopt better methods of cleaning. Very often the gum is mixed with otner more easily procured gums, and the natives seem to be experts at this sort of adulteration for their own gain. Methods of cleaning consist merely of boiling the sap and washing it in water while still warm, when the mass is pressed into wooden molds to form "bricks" for export. As a rule the gum is of a dark brown color, but this depends upon the length of tune of boiling and the amount of washing it has received, very often shipments to the coast from the interior have to be reboiled and cleaned before being exported. Underboiling causes the gum to be quite white but brittle, while overboiling gives it a very dark color and bad appearance. The chicle of Colombia is inferior to that of Mexico ana commands a lower price. The purest and best chicle of Colombia comes from the Sogamoso region in Santander, moving down the Magdalena River from Puerto Wilches by river steamer and being exported to the United States via Barranquilla. On the Pacific coast there are a great number of "lirio" trees (a species of the "zapote"), these being much more plentiful in this region than the true chicle-gum tree. Lirio gum is gathered in the same manner and sold under two local names lirio" gum when exported through Cartagena and "cauchillo" gum when exported through Buenaventura from the San Juan region south of the divide between the Atrato and the San Juan Rivers. Lirio gum looks very much like real chicle and is used as a substitute for chicle and rubber. On the Pacific coast, balata gum (rubber) is often mixed with lirio gum, the balata being much more plentiful. Shipments ready for export show no uniformity in character. "Cauchillo" gum should not be confused with some kinds of rubber which are also called "cauchillo" in the southeastern part of Colom- bia. "Cauchillo" is also the name given to lirio gum handled at Buenaventura. During 1918, 86,585 pounds of chicle and lirio gum, valued at $41,450, were shipped from the port of Cartagena to the United States. .Exports to this country from Cartagena during 1919 amounted to 84,022 pounds, valued at $37,445. From Barranquilla the shipments of cauchillo (chicle) to the United States were: 1918, 226,872 pounds, valued at $65,233; 1919, 465,043 pounds, valued at $136,554. The total imports of chicle and lirio gum from Colombia by the United States in 1918 were 690,496 pounds, valued at $278,654, while in 1919 the quantity was 1,777,747 pounds and the value $570,864. It is doubtful whether production of chicle by Colombia will be much increased in the future. The trees exist in great numbers but FOREST PRODUCTS. 87 are scattered through the jungles in the most inaccessible regions, and the labor situation, as explained, is also difficult unless very high prices can be obtained for this forest product. RUBBER. Various kinds of rubber trees are found in Colombia over a wide range of territory and there have been numerous efforts, on a more or less limited scale, to cultivate the better grades of rubber trees, tnese plantations being located near the mouth of the Atrato River, in the Department of Santander in the interior, and on the west coast . inland from the southern port of Tumaco. At this last-mentioned point, an English rubber planter has been interested in developing what are regarded as ideal tracts of land. The chief difficulty in the development of rubber plantations has been the lack of dependable labor in the tropical districts suited to rubber- tree cultivation; and the low prices obtaining during recent years, based on the supply from Brazil, have been discouraging to native planters, who have always had many other more attractive means of investing surplus capital. A rubber plantation on the Atrato River, owned by a wealthy and progressive Syrian merchant of Cartagena, contains 160,000 trees, but has been allowed to remain idle because of low prices. This is the largest rubber plantation in Colonibia. In the region of the Magdalena Valley in Santander there are some 10,000 rubber trees under cultivation by private interests which are endeavoring, slowly, to develop the industry in that region. Undoubtedly, the largest areas of rubber trees exist to the south in the region of the Amazon watershed, alon<* the headwaters of the Putumayo and Caqueta Rivers. Colombians have established rubber trading posts at various points on these rivers, but this territory has been invaded by the rubber traders from Iquitos. in Peru. Rub- ber gathered in this district moves out through Iquitos in Peru, as that is the shortest and easiest route. The nearest Colombian town of any importance is Pasto, itself inaccessible from the sea. The rubber going through Iquitos is not counted in Colombian export returns as originating in Colombia. A census taken in 1909 in the Choco Territory showed a total of 1,197,728 rubber trees planted or claimed in ownership in the Rio Atrato district, possibly the largest source of rubber in the country outside of the "selvas of the Amazon watershed. Some rubber is brought into Neiva, the capital of Huila, near the headwaters of the Magdalena River, but this rubber is gathered to the southeast over the Eastern Cordillera on the Amazon watershed. This rubber finds its way down the Magdalena to Barranquilla or Cartagena for export. To the east, on the Apaporis and Vaupes Rivers, Colombians have established themselves more firmly in the rubber trade and have brought under their control several tribes of robust Indians. Large areas of the forests have been opened for rubber gathering, of both the balata and the Para species, but the trade is all down the Rio Negro to Manaos on the Amazon. The annual production of rubber from this region is said to be in the neighborhood of 125,000 pounds. For a complete description of the llanos and selvas of Colombia and of the rubber country to the south along the Caqueta, Negro, and 88 A COMMKIJCIAL AND ixnrsTRiAL, HANDBOOK. Putumnyo Rivers, the reader may be referred to "Colombia," by Phanor J. Eder. The rubber industry in Colombia suffers from lack of labor and transportation, and it is doubtful whether the present rate of export .of this product will be greatly increased unless extraordinarily high prices for rubber in the United States or Europe attract renewed interest in planting rubber trees and increased activity in the wild forests of the Amazon watershed. Imports of rubber from Colombia into the United States have bean as follows: Kinds. Fiscal year 1916. Fiscal year 1917. Calendar year 1918. Calendar \i-\r 1919. Pounds. Value. Pounds. Value. Pounds. Value. Pounds. Value. Balata 100, 727 f>96 750, 126 $39,206 190 327,023 540,616 f 243, 322 316, 520 $136,058 197, 113 $89, 125 Gutta-percha India rubber. 1, 317, 509 492, 432 1,521 884,792 3o6, 226 699,790 '273, 975 India-rubber substitutes. . Rubber ranks eighth as a Colombian export, being just ahead of tobacco. The rubber exported from Colombia in 1917, not counting that which moved out of the country via the Amazon River and Iquitos in Peru, was valued at 723,043 Colombian dollars (1 dollar = $0.9733 United States currency), this including all kinds, from all ports. The largest rubber-producing area in Colombia (except the "selvas" region) is the territory of the Choco Intendency, in the Atrato River region, where more attention has been given to rubber cultivation and trading. This product is handled through Carta- gena, on the Caribbean coast. As has been said, the rubber-gathering industry is the principal one in the great, wild, little-known southern territory, the rubber hunters and traders from Iquitos and Manaos being the most active agents in this territory. On the banks of the Apaporis and Negro Rivers, Colombians have also organized rubber garnering and trading settlements. Throughout the rest of the country, except in the cases of the few plantations, rubber trading is carried on by merchants of the coast who have branches or agents established in places like Quibdo, in the Choco Intendency; Barbacoas, inland from Tumaco; and Negria, on the San Juan River, in the district north of Buena- ventura. These branch stores exchange trade goods (principally cheap cotton textiles and the like) for rubber brought in by tne natives, Indians as well as Negroes, who go into the forests during the dry season and tap the trees, the various families or groups having their mutually defined forest areas which they keep open and accessible by cutting trails with machetes. This trade is especially well organ- ized and cared for in the Atrato River region, where the Syrian firms of Cartagena have several important branches, with ramifications throughout the small Negro villages of the river country. These store branches also deal in platinum, gold, lirio gum, chicle, aigrette feathers, cedar and mahogony, and otner products such as sarsapa- rilla, ipecac, etc. FOREST PRODUCTS. 89 The main stores in Cartagena are always in touch with the New York market through their agents, usually export commission houses, and they keep their branches well informed of price fluctuations, trading then being based upon these prices, with a very careful esti- mate of freight costs, etc. The main difficulty has been in guarding against adulteration of the gum by the native gatherers, who are well acquainted with the plant life of the forests and are adept in mixing in other gums that are more easily gathered than the valuable rubber and that can not be detected except by expert test and exam- ination. The tales of loss suffered by inexperienced rubber traders at Cartagena alone would fill many chapters, and this is shown to be a business in which only the initiated can engage without the prospect of loss. The rubber production of the Choco territory was curtailed during the. war years by the high prices that were being paid for platinum, which attracted many more workers to the placer rivers and streams of the district. Conditions of soil and climate appear to be ideal for rubber plant- ing inland from the Pacific port of Tumaco, where there is river- steamer transportation to the seaport and wide areas of suitable land that can be secured for a very low price. Here the climate is not quite so bad as in the Choco region. The difficulties are the usual ones principally lack of sufficient and reliable labor. The average Negro or mulatto in this region much prefers to work for himself; he erects a tiny thatched hut along some river, puts in a few plan- tains and a few stalks of sugar cane, and then, with his dugout canoe and with fish and the fruits of the forest for the taking, he is very independent of outside employment of any kind. When money or trade products are needed with which to secure cloth, a machete, or other necessities of domestic or foreign manufacture, he goes into the forest and gathers his own rubber or tagua nuts in a few days, trades them for what he wants, and is again at leisure for a long period. TAGUA (VEGETABLE IVORY). The tagua, or so-called ivory, nut is the seed of a species of alm (PJiyteliphas macrocarpa, Retp.) which grows wild in Peru, Ecua- or, the western part of Colombia, and the interior of Brazil. The ivory nut when dried and cut has the appearance of ivory and can be sawn, carved, polished, and dyed with ease, being used exten- sively in the manufacture of buttons, drawer knobs, toys, and fancy goods, taking the place of bone and ivory. The tagua palm is of "social habit" and is found in groves over considerable areas, generally in wet and heavy clay lands. The palm is from 10 to 20 feet in height and begins to bear at the age of 6 years. Only the female plants bear fruit, about 50 per cent of the plants being female. The nuts are borne in pods, or heads, which weigh about 20 pounds, are the size of a man s head, and have from six to nine nuts each. The nuts are the size of a small potato, oval in shape, fine grained, of hard, white composition, and approach real ivory in all their characteristics. The Colombian Government grants free exploitation of the tagua groves to the people of the country but has placed on the nuts a 3 per cent ad valorem export duty, which is collected at the port of export. 90 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. Tngua nuts are gathered in many regions of Colombia, but the heavy and bulky nature of the product and its low price in relation to weight and volume confine the industry of gathering the nuts to the regions adjacent to the coasts or navigable rivers through which there is easy and cheap access to the market points. Tagua is gath- ered all along the Magdalena River in Colombia as far up as Puerto Berrio, the principal river shipping point being Carare, at the junc- tion of the Carare River with the Magdalena, just below Puerto Berrio and about 460 miles from Barranquilla. In this district of the Department of Santander there seem to be large natural groves of the tagua palm -greater than in other accessible places along the river as yet available. Gathering tagua nuts is the principal occu- pation 01 the natives of this district. Not much tagua is handled by the river steamers, however, the freight rates being too high, llie chief means of transporting the nuts down to the coast is by crude native rafts of lumber and bamboo, which are sold with the cargo of nuts at Barranquilla after floating down the ri,ver. There are great quantities of these palms along the coast to the north of Buenaventura, and many small traders are engaged in gath- ering the nuts and transporting them to Buenaventura and Panama for marketing, using small sloops and schooners for this trade. The nuts are brought down to the coast in canoes by the negroes inhab- iting this region, who receive trade goods in exchange. The same condition applies along the coast to the south, as the tagua palm is very abundant as far down as Ecuador and Peru, Ecuador exporting the largest amount of any country in South America. Considerable amounts of tagua nuts are also shipped from Cartagena, coming in from the Atrato River and coast regions southwest of that port. Barranquilla exports the nuts that come down the river from the Magdalena Valley country. The gathering of the nuts presents no great difficulties beyond that of transportation. All that is required is to pick the nuts up from the ground after they have been dropped from, the ripe pods. Trading is carried on by the merchants of the coast cities, who buy the cargoes of tagua nuts sent in by traders of the interior, thus controlling the market. At the present tune these merchants are in turn dependent upon the market in the United States for their sales of the ivory nuts, although before the war Great Britain and Germany took large amounts, Germany being the largest consumer. The cutting off of the German market during the war so affected prices that great quantities were stored at shipping points, princi- pally in Ecuador, to await more favorable conditions. Merchants dealing in tagua nuts were offering such low prices that the natives would not gather the nuts at all. Button making is, of course, the principal use to which the vege- table ivory is put, though it has many other uses, such as for chess men, umbrella handles, poker chips, etc., and is worked up into a great variety of ornaments and fancy goods of many kinas. The process of ivory button manufacture is varied, complicated, and requires many different kinds of machinery. The West Indies, Central and South America use annually about $2,300,000 worth of buttons and manufacture no buttons of any kind themselves, accord- ing to a report compiled by the Pan American Union (October, 1917). The Button. Manufacturers Corporation, of Newark, N. J., has estab- Special Agents Series No. 206. (I FIG. 5. STREET SCENE, BARRANQUI LLA. FIG. 6. RIVER BOATS AND DUGOUTS AT WATER FRONT, BARRANQUILLA. 91 lished a button factory at Panama City (1917) to make buttons from vegetable ivory; this plant is capable of working up 100 tons of raw material per month. It is planned to increase this capacity to 6,000 tons per year. The nuts used come from Ecuador, Colombia, and Panama ana must be dried for three weeks before being cut into button slabs. Only native labor is employed. Nuts shipped from Cartagena are gathered in the Sinu and Atrato River districts and brought into Cartagena in barkatoons. Usually the lots are mixed and it is necessary to dry and sort the nuts, and sometimes shell them, before they are exported. Naturally, the well-dried, sorted, shelled nuts command the best prices in foreign markets. Little care is used in gathering the nuts and, on account of the mixed lots containing a high percentage of defectives, "Carta- gena tagua," as it is known, does not equal the Ecuadorian nut. No attempt has been made to cultivate the tagua palm, probably because it grows in profusion in the districts where wild rubber is found. In normal times Germany was the best market for Cartagena ivory nuts, and Italy took a smaller share, but required high-grade nuts. Cleaned nuts (shelled) bring as high as $75 to $90 per ton at times. As has been said, Ecuador is the largest producer of the vegetable ivory nut, having, in 1913, shipped nuts to the value of $2,000,000. Colombia exported in the same year $900,000 worth, or 11,600 metric tons, giving an average value of $77.57 per metric ton. Prices for Colombian tagua reached the high level of $128 per ton in Germany in 1914. The export tax of 3 per cent charged on nuts gathered from Government lands is calculated on the ruling price obtained in the market. Imports to the United States of tagua from Colombia are shown below: Years. Pounds. Value. Fiscal year 1916 11, 119, 019 U. 8. currency. $335, 545 Fiscal year 1917 14, 423, 369 494,806 Calendar year 1918 10, 782, 517 386,720 Calendar year 1919 5, 534, 369 254,828 Colombian Government statistics give the exports of tagua from 1906 to 1917, inclusive, as follows: [Kilo=2.2046 pounds; Colombian dollar= $0.9733.1 Years. Kilos. Value. Years. Kilos. Value. 1906.. 5. 354, 276 Colom- bian dollars. 192,661 1912 11, 598, 512 Colom- bian dollars. 754,708 1907 7, 521, 239 262, 657 1913 11 650 762 819 422 1908 .- 4, 419, 740 178, 334 1914 7, 120, 835 327,086 1909 8, 457, 530 468,796 1915 7, 056, 048 343,264 1910 10, 096, 825 788,096 1916 8, 555, 057 451, 292 1911 10, 989, 605 739, 420 1917 5, 135, 241 300,898 92 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. INDIGO. During the colonial days in Colombia the country produced quantities of indigo, the Spanish colonists having large plantations of this product on the coast near Cartagena, where slaves were used for labor. With the attainment of independence and the freeing of all slaves the industry fell into a decline from which it has never recov- ered, and in modern times the invention of the aniline dyes has affected the market for all vegetable dyes, as is well known. How- ever, small amounts of indigo are still shipped from Colombia. In 1915, $3,093 worth was shipped to the United States, and in 1916 $3,298 worth, principally from Cartagena. HARDWOODS AND CEDAR. For detailed information concerning the timber and lumber situa- tion the reader may be referred to " Lumber Markets of the West and North Coasts of South America," Special Agents Series No. 117, pages 104-117. This contains the names, prices, uses, etc., of all native hardwoods of merchantable value, figures covering imports of foreign lumber, prices, and all other data. The natural wealth of the forests of Colombia is very great, but for the most part they are inaccessible, and the many difficulties of trans- portation, the lack of labor supply, and the tropical climate are serious drawbacks. In the past the Government has given many concessions, often covering enormous tracts of land and with the exclusive privilege of exploiting the forests therein, but these con- cessions have proved failures, the hoped-for development of roads and new industries not resulting therefrom. There are several kinds of valuable hardwoods, used in the country for domestic purposes, and the forests contain much good hardwood, but the trees are very scattered. They do not occur in groves, and only one or two of the same species may be found on an acre, or possibly on a square mile often in places where the cost of transporting to market is much too great. Very little timber cutting has been done. There are a few saw- mills in the country located on the coast or on navigable rivers, the principal one being that of Abuchar Hermanos at Sautata, situated 30 miles up the Atrato River from its mouth and 6 miles from the sea in an air line. This mill has a capacity of 15,000 board feet of cedar daily, and plans call for the planting of 10,000 young cedar trees annually to supplement the supply of logs brought down the river by the natives for sale at the null. Several American firms have been interested in the development of the lumber industry in Colombia, principally mahogany and cedar, but their experience has not been encouraging. One concern spent $11,000 in reconnaissance work in the Magdalena Valley, but reported the undertaking as hazardous under any scale of operation. The main difficulty is the small number of trees of merchantable type on a given accessible area. To sum up the situation, the lumber industry of Colombia shows retrogression instead of growth; the demands of the accessible local markets are too small and the delivery costs too high to permit operations on any large scale. FOEEST PRODUCTS. 93 Colombian "mahogany" is in demand in Europe and in the United States, but it is not the true mahogany, though considered the best imitation on the market to-day. True mahogany is said to grow in Colombia, but not in commercial quantities. The ordinary Colombian species is Cariniana pyriformis, true mahogany being technically known as Swietenia mahogoni. Botanically the two trees are unlike, though the woods are very similar in grain and color. 1 An American company erected a sawmill at the Pacific port of Guapi (in the Department of Cauca), south of Buenaventura, in 1916, being interested principally in the cedar thought to be abundant in this region, but the plant was closed soon after lumbering operations were started, and it is not in operation at the present time. There are reports of considerable cedar and " mahogany" to be found at points along the coast north of Buenaventura and north of the San Juan River toward the boundary with Panama, but, so far as is known, no attempt has been made to log in this region. The following are the estimated annual amounts of lumber im- ported from the United States into Colombia, based on normal demand : Kinds. Barran- quilla. Cartagena. Santa Marta. Medellin. Bogota. Total. Southern yellow pine Fret. 1,000,000 Feet. 600,000 Fett. 60,000 Feet. ' Feet. Fctt. 1,660,000 American white Dine 120.000 40,000 20,000 180 000 Native hardwoods 2,500^000 1,800,000 300,000 3,400,000 2,960,000 10,960 000 Other American woods 100,000 35,000 20,000 155, 000 Total 3,720,000 2, 475, 000 400,000 3,400,000 2,960,000 12, 955, 000 Exports of cedar and "mahogany" lumber from the port of Carta- gena to the United States during 1917 amounted to 1,277,249 feet, valued at $63,863; during 1918 to 1,200,639 feet, valued at $71,887; and during 1919 to 603,900 feet, valued at $49,339. The amounts mentioned were composed principally of cedar which came from the Sinu River district and from the Atrato River, the lumber from the latter region being brought in to Cartagena by barges and tugs from the sawmill at Sautata, 30 miles above the mouth of this river, during the season of high water and going chiefly to Porto Rico for cigar boxes. Colombian Government statistics show exports of all woods from 1906 to 1917, as follows: [Kilo=2.2046 pounds; Colombian dollar=t0.9733.] Years. Kilos. Value. Years. Kilos. Value. 1906... 4,276,038 Colombian dollars. 92,331 1912 . 686 768 Colombian dollars. 15 268 1907 6,342,538 117, 381 1913 347 839 41 601 1908 2, 738, 458 49,565 1914 2 654 702 49 398 1909 5,558,957 101,290 1915 2,360 114 46 892 1910 6, 197, 184 124,109 1916 2 204 464 46 740 1911 5,394,742 123,685 1917 3,597 607 74 723 1 See Forest Service Circular 185 (Washington, 1911). 94 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. There are no detailed statistics that would show the measurement of this wood or the kinds into which the above quantities are divided. The principal kinds were cedar and Colombian "mahogany." United States customhouse returns show the following imports of woods from Colombia: Kinds. Fiscal year 1916. Fiscal year 1917. Calendar year 1918. Calendar year 1919. Quantity. Value. Quantity. Value. Quantity. Value. Quantity. Value. Cabinet woods, unmanu- factured: Cedar l,000feet. 25 1,444 $1,250 90,000 l,000feet. 847 413 $49,158 30,686 70 1,520 l,000fcet. 993 318 $84,064 31,664 51 l,000feet. 450 368 $32,322 29,624 Mahogany All other Lumber, sawed 38 There is a small movement of hardwood and cedar logs from Tumaco and Buenaventura for transshipment at Colon to the United States, consisting principally of " mahogany" and "guayacan" (lignum- vitae) .. These shipments are handled economically as deck loads on the two small steamers running between the Canal and the two ports mentioned. GOVERNMENT REVENUE FROM FORESTS EXPORT STATISTICS. The Colombian Government receives a small annual revenue from forest products, such as the export tax on tagua at 3 per cent ad valorem. From March 1, 1918, to February 28, 1919, this revenue amounted to 16,721 Colombian dollars. The fiscal year ended Febru- ary 28, 1918, produced 24,526 dollars. Colombian Government statistics for 1916, under the general heading of "Vegetable products," give the following exports of forest products: [Kilo=2.2046 pounds; Colombian dollar=$0.9733.] Kinds. Kilos. Value. Kinds. Kilos. Value. 3.070 Colombian dollars. 7,326 Mate tea 996 Colombian dnllars. 102 Aloes 460 80 Mangle bark... 780,397 9,743 5,322 2,823 Woods 1,873,047 41,639 Balsam of Tolu 49,228 22, 076 Brazil dvewood 142,000 2,440 Rubber... 459,883 356, 527 Dvewood, quebracho 70,000 1,100 Rubber, balata 124,011 95,210 M'oods: 10 528 8 947 Mora 111,811 1,498 698 2K5 36,185 Lignum-vitae 7,500 60 Canime oil 237 680 Quinine bark Mill 140 Divi-divi 4,688,685 134,826 Ipecac 29,717 90,611 Tannic extracts 1,261,531 108,039 Sarsaparilla 5,379 13, 767 Copal gum.... . . 1.890 691 Tagua nuts 8,555,057 452,292 FOREST PRODUCTS. 95 The Government returns for exports of forest products during 1918 are as follows: Kinds. Kilos. Value. Kinds. Kilos. Value. Indigo 650 Colombian dollars. 1 600 Mangle bark 81, 120 Colombian dollars. 2,843 Balsam of Tolu 48. 070 34,034 Mahogany and cedar wood.. 2.402,000 73,995 1 906 1 412 Other woods 115,620 3 019 Rubber 228,586 155, 521 Quinine bark 2,925 960 455 449 315 823 Sarsaparilla 22 301 64 856 Canime oil 12 914 7,188 Ipecac 201 321 Coconuts. . . . 333,3.56 10, 517 Algarroba resin 454 100 Divi-divi 3.237 621 123 636 Sande 39.854 35,980 12 377 2 743 Cagua 6.352 311 387 202 Dyewoods 15, 608 339 Coconut oil 16,546 2,320 Manufactured lumber 8,000 260 Corozo oil 36,200 10.503 66 100 3 652 Castor oil. 1,695 1,780 MINING. INTRODUCTION. During colonial times gold mining was the principal source of wealth and the main industry of the country, Colombia at that time being the chief gold-producing country of all the Spanish colonies in the New World, and second only to Peru and Mexico in all mineral production. It is estimated that, from the time of the conquest (1537) to 1882, a total of 876,774 kilos of gold (kilo = 2.2046 pounds) were produced by Colombia, valued at $582,704,000, with an addi- tional $47,000,000 worth of silver. Other estimates made in 1875 place the grand total of the production of gold alone as high as $818,454,000, with an additional 6 to 10 per cent for silver. Mining is still the principal industry of two great sections of the country, and it is thought by many that the great potential mineral resources of the country will ultimately prove of greater value than the agricultural, commercial, or industrial possibilities and will at- tract the greater share of foreign capital. The past history of mining in Colombia and the observations of modern investigators in the mineral field more than justify this interest. In three products alone Colombia possesses enormous resources platinum, petroleum, and coal. Colombia is the chief source of platinum now that the fields in Russia are not being worked to capacity. Petroleum is a recent development, which promises a production of very high-grade crude oil hi the near future. Coal is important on account of the proximity of the deposits, in several cases, to the Panama Canal, where coal is needed as fuel for the shipping that uses the Canal. Iron deposits are found in trie region of several of the coal deposits, but far removed from easy transportation to the sea. There are also many indications of copper, both to the east and to the west. Tin, quicksilver, lead, nickel, and other minerals are also found. There are great banks of diatamaceous earth, cement materials, asbestos, etc. In the Upper Magdalena Valley there are large asphalt deposits. Two iron deposits have been worked, but on a very small scale. The less valuaole metals have not been exploited on account of the difficulties presented by the topography and climate of the country and the general lack of easy and cheap means of transportation. The cost of importation and erection of modern mining machinery and equipment is very high because of the generally broken nature of the country, and only hign-grade deposits can be worked with a profit under present conditions. Before the discovery of gold in California and Australia, Colombia furnished the chief supply of gold to Europe. The official figures of the Government give the production of gold from 1876 to 1892 as 79;437 kilos, valued at $52,792,973, and of silver, from 1880 to 1891, as about 234,000 kilos, valued at $11,676,000. The following sta- tistics of exports are not strictly accurate, on account of the large amount of gold dust and bars privately shipped out of the country MINING. 97 to avoid the payment of export taxes; the figures may be considered very conservative, to say the least. Gold. Silver. Years. Kilos. Ounces, fine. Value. Kilos. Ounces, fine. Value. 1893... 4,353 Colombian dollars. 2, 892, 800 52, 511 1, 688, 230 Colombian dollars. 1, 320, 126 1894. 4,339 139, 516 2, 892, 800 52,511 1, 688, 230 1, 063, 610 1895 4,890 154,000 3, 183, 000 53,500 1, 720, 025 1, 122, 965 1896. . 5,416 174, 165 3,600,000 51,200 1, 646, 080 1, 104, 384 1897 5,868 188, 679 3,900,000 51,200 1, 646, 080 985, 191 1898 . . 5,567 179, 003 3, 700, 000 51,200 1, 646, 080 971, 187 1899 3,462 111, 272 2, 300, 000 109, 531 3, 521, 563 2, 098, 147 1900 3,462 111,272 2, 300, 000 87, 089 2,800,000 1, 719, 480 1901 3,114 100, 145 2, 070, 000 78,380 2, 520, 000 1, 485, 540 1902 3, 561 120,831 2, 500,000 1903 4,098 131, 785 2, 724, 000 1904 2,970 95, 520 1, 974, 000 1905 2,970 95,520 1, 974, 000 31, 103 1, 000, 000 603,500 1906 3,2% 105,966 2, 190 522 30, 482 980,000 654,552 1907 4,898 157, 471 3, 255, 31 1 1908 4,530 145, 649 3, 010, 565 1909. .. 4,660 1.50, 000 3, 100, 500 176, 127 1910 279, 342 3,369,941 407, 690 1911. 10, 574 3, 751, 632 210, 233 GENERAL DESCRIPTION OF MINING IN COLOMBIA. The following account is from "Colombia," by Phanor J. Eder, pages 168-1 78 :* In general it may be said that the principal mining districts of Colombia are still those that were discovered and worked by the Spaniards, in the historical political divisions of Antioquia, Cauca, Santander, and Tolima. A mention of the countless placers and places where mines are worked or known would read almost like a gazetteer of those sections of Colombia; we can only mention a few of the more important regions, especially those- that have most interested foreign capital. ANTIOQUIA, THE PRINCIPAL MINING REGION. Antioquia has always been the chief mining section, and still maintains its lead both for quartz deposits and placers. Many of its mines have been worked continu- ously from the Spanish, and even the Indian, days, without diminution. A French engineer says: 2 "The massif of Antioquia alone is perhaps the richest auriferous deposit in the world, and only awaits the hand of capital to show its immense value. One can say of this region, extremely mountainous and full of ravines, cut in all directions by fractures or lodes, which are nearly all gold-bearing, that it con- stitutes an immense massif of gold. Barely the thousandth part of the deposits has been worked. There is gold everywhere in variable proportions, it is true, but nearly always in workable and paying quantity." Of the alluvial mines, the most actively worked to-day are those of the Cauca, Force, and Nechi Rivers and the numerous mountain streams, "quebradas," that flow into them. The Force flows into the Nechi near Zaragoza, the chief town of the region, whence there is steam navigation via the Nechi, the Cauca, and the Mag- dalena to Barranquilla. The vast amount that has been washed from the auri- ferous sands of this region has not in the least impaired the present yield; the pro- duction by the natives, who prefer to work on their, own account, even if only on a small scale, is very large and a number of foreigners, especially Americans and French, are successfully working with hydraulic monitors on a large scale, and undertaking extensive ditching and tunneling. 37558 21 98 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The most interesting developments now going on are for the dredging operations of the Pato Minos (Colombia) (Ltd.), a subsidiary of the Oroville Dredging Co., which has had such remarkable success in California. The company has already expended (1911) exclusive of the purchase price of its properties, which were paia for in shares considerably over half a million dollars, and will require for its permanent dam (to be a concrete structure 65 feet high, and requiring 15.000 cubic yards of masonry it will be the finest in Colombia) an additional $174,000, besides other large expenditures. The company's bench gravel deposits in the Pato basin have been thoroughly proved by boring, special attention is being paid to sanitation, and. with the company's experience elsewhere and its resources, this enterprise will undoubtedly prove a success and redeem the rather unfortunate past history of dredging in Colombia. Development on a large scale, preparatory to dredging opera- tions, is also being undertaken in the vicinity of Caceres by another American cor- poration, the Breitung Mines Corporation. Vein mines were opened in Antioquia as early as 1581, and worked all during the Spanish dominion, but with comparatively meager results, due to the crude methods employed. In 1825 some rich veins near Anori were worked, and soon after an Englishman, Mr. James, erected the first mills in the country to crush the Anori ore and his example was soon followed, especially at Amalfi, Remedios, the Bolivia, Zancudo, and Frontino mines. In 1851 Mr. Tyrrell Moore, another Englishman,, established a smelting plant at Titiribi for the auriferous ores of that rich region, including the Zancudo mines, whose owners, however, erected their own smelter under a German miner, Reinhold Paschke, and Moore's works, after an expenditure of 120.000, failed. Several other disastrous failures, especially of English companies (the British have gone in more for quartz mines, the Americans showing a preference lor placers) have marred Colombian mining history, but, where not due to the intro- duction of machinery at a greater expense than the circumstances warranted, they have been of a character to impeach the quality not of the ore, but of the management, and are more than redeemed by the long and successful history, not only of native enterprises but of other foreign mining companies. One of the most notable of the latter is that of the Frontino & Bolivia Mining Co. (Ltd.), which in 1852 bought the Frontino mineand several others in the neighborhood of Remedios (the most importantof the mining sections of Colombia) . After weathering early managerial misfortunes it has had a successful career, and has been almost con- stantly one of the best managed and most profitable mines in Colombia. Of late years working costs have been very high, expenditures and revenue almost balancing, but it is now making extensive additions in equipment, power plant, and new develop- ment, which will insure, according to its engineers, a net working profit of 3,000 per month. They report thatits two principal mines, the "Salada" and the "Silencio, " are still only in their infancy, and another property, the ' ' Marmajito-Cogete, " of great promise. Another important mine in the same district, thought by some to be of the same lode, is the ' ' San Nicolas, " worked by a French company ; this mine was the first to introduce the cyanide process in Colombia. Scarcely inferior to the production of the Remedios district is that of Titiribi. Here is the great gold and silver mine of "Zancudo, " which we have already mentioned, and its annexes, owned and very ably managed by native Colombians 3 ; originally worked for gold, later the silver output became by far the more important, having reached in some years three-quarters of a million dollars. It has the singular advan- tage, too, of being situated at the foot of an extensive coal deposit, and is also within convenient access of Medellin, the commercial center and political capital of the Department of Antioquia, the second in the Republic. An assay office was erected in Medellin in 1858 and two others in the early eighties. The mint for the coinage of gold and silver, closed for a number of years, has been recently reopened. There is also a very creditable school of mines where competent engineers are trained ; the Antioquia people are born miners. The lower classes furnish an excellent quality of labor, 4 which gives this generally healthful region [healthful only in the mountains above 5,000 feet elevation] a still further advantage over other parts of Colombia; among the middle and upper classes able engineers and mine managers are to be found. Some of the best-managed and most profitable mines in the country, besides the "Zancudo" e. g., "La Constancia" and the "Solferino" at Anori, "La Cascada" at Manizales are operated and engineered entirely by Colombians, and many Antio- quefios have become wealthy in the mining industry. 1 A majority of the shares or rights is held by the Compagnie Unifu-e du Zaiicudo (capital, 4,000,000 francs), the shares of which, in turn, are principally held by Colombians. Labor, however, is scarce, as the men prefer to mine for their own account, and even high wages often fail to tempt them into the employ of the large companies. MINING. 99 REGION OF MARMATO AND SUPIA. Another rich region is that of Marmato and Supia. The mines of that name belong to the Government, being leased out. In 1825 the London firm of Goldschmidt & Co. leased the mines and did much to improve the methods of mining. They are now under lease to the Colombian Mining & Exploration Co., of London, which pays the Government an annual rental of 3,200. Electric power is being installed, and a recent report says: "The energetic development at greater depths of one of the numer- ous group of mines leased to this company has given such excellent results and so fully confirmed anticipation that a 6, 000- ton plant has been decided on and shipment already commenced." Near here are the "Echandia" mines, which made a celebrated for- tune a few years ago for a Colombian named Chaves, and the ' ' Pantano " mine, which has been successfully operated by the Western Andes Mining Co. All these mines are situated in the Western Cordillera not far from the Cauca River; throughout the whole extent of the mountains surrounding the Upper Cauca Valley some placer and quartz mines are worked, though hitherto on an insignificant scale. Recent purchases by P>ench and Belgian syndicates, however, which in addition nave purchased vari- ous options, promise a more active development. Farther south, around Pasto and toward the Ecuadorian frontier, a new rich region has been opened up in the last few years; several hundred mines have been denounced [located], especially in the dis- tricts of Samaniego and Mallama, and a number of English and Americans have intro- duced modern machinery and are working good quartz properties. EASTERN SLOPES OF CENTRAL ANDES EASTERN CORDILLERA. On the eastern slopes of the Central Andes there are several localities of interest. The Mariquita region, which had fame in the Spanish days, is again active; in this range, too, are "Santa Ana" and "La Manta, " Government-owned mines acquired by inheritance from the Spanish Crown, more interesting historically than of present- day importance. It was here that in 1785 a mining engineer of great note in his day, d'Elhuyar, was imported by the Viceroy to introduce the Freiberg process. During the 11 years he was in charge the expenses were $232,641, against a gross product of $27,247. Forty years later the English firm of Herring, Graham & Powles met with a similar experience, erecting smelting works at great expense, and in 13 years spend- ing over 200,000 and taking out silver valued at 28,000. Subsequent working by them, however, was more profitable. The mines are now under lease to the Anglo- Colombian Investment Co., of London. The gold veins in the Tolima district, with few exceptions, are rich superficially but pinch out at a depth of 10 to 20 fathoms, alluvial gold washings being more abundant and giving better results. In this region the most important mines are those of the North Tolima Mining Co., of London, at Frias. Since their rediscovery in 1870 they have been continuously worked; in 1895 the annual output of silver was little less than $800,000. The company was organized in 1910 with a capital of 100,000 and has been shipping some 1,600 sacks (65 kilos each) of silver a year by mule back to the Dorada Extension Railway. The Eastern Cordillera is of far less importance than the other two, though gold has been discovered at a number of points. Here, too, was the greatest "bonanza" ever found in Colombia; the mine called "Pie de Gallo" yielded in a few hours 64 kilos of gold, but that was in Spanish days. At present the only important foreign com- panies are near Bucaramanga, the Francia Gold Mining Co., a French concern, espe- cially having been particularly active in 1911 in acquiring title to additional mining claims. RIVERS OF THE PACIFIC LITTORAL. The rivers of the Pacific littoral are nearly all auriferous, several of them being strikingly rich. In the earlier days, the Barbacoas region was especially productive, but the abolition of slavery in 1851 crippled the placers. Again, in the sixties, there was quite a boom and an influx of California miners, but the climate proved a deterrent. Lately there has been a considerable revival of interest all along the coast; a French company has been established on the Timbiqui for a number of years, obtaining a steady, though not very large yield. An Australian company has also been at work, but its first attempts at dredging were unsuccessful. Nothing on a large scale has yet been done; such production as there is from this region is obtained chiefly by native laborers, who still continue the primitive methods of washing the sands in "bateas," the Colombian wooden substitute for the pan. 100 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. THE CHOCO REGION. We have already had occasion in speaking of platinum to refer to the rich placers ot the Choco region, the Atrato and San Juan Rivers and their tributaries. This also was a gold field little inferior to Antioquia in the days when slaves could be employed (the annual output at the beginning of the nineteenth century was about a million dollars) ; but until recently the difficulties of access, the bad climate and reputation for fevers, not wholly undeserved, and the decided inferiority of the labor (almost entirely Negro) to that of Antioquia have been deterrents. With an increased knowledge and modern practice of sanitation and scientific methods of overcoming obstacles, the Choco will again become one of the great gold regions of the world. Robert Blake White, the English engineer, who has contributed much to our knowledge of Colombia, said, speaking of the Choco: "I do not know of any rivers outside of Colombia where such favorable conditions for the extraction of gold exist," and his opinion has been con- firmed by subsequent explorers. A well-known American mining engineer, Mr. Henry Granger, who has discovered and located more claims than any other man in this section and perhaps in the whole of Colombia, attempted dredging a few years ago, but failed; nothing daunted, he is at it again, with new financial backing from well- known mining capitalists of New York. And a great stimulus will be given this region by the Anglo-Colombian Development Co., of which mention has already been made. This company, in addition to its exploration work, is rendering a much-needed public service in establishing steamer communication on the San Juan River from Buena- ventura. COLOMBIA "NOT A POOR MAN'S MINING COUNTRY." A useful note of warning is sounded by Consul Isaac A. Manning in Daily Consular Reports, October 31, 1912: "This is not a poor man's mining country. A prospector without capital stands little show in Colombia, largely because of the lack or transpor- tation facilities, the rugged character of the country, the rigors of the climate, and the difficulties of securing supplies and food except at high prices. Principally, however, this is true because no quantity of 'panning' or 'rocker' ground is to be found from which the prospector can recoup his expenses. Scientific prospecting only will pay in Colombia. Very few paying ledges have been discovered, and they are frequently much disturbed and contain 'horses' of barren rock. That there are numerous de- posits yet waiting discovery can not be doubted; but, as a general thing, these will be found, if placers, to carry such an 'overload' of surface materials as to require machinery for satisfactory prospecting or development;' if quartz, to be of low grade and, in the main, to carry refractory ores. * * * Most of the gold veins in Colombia are of very refractory nature and can be worked to advantage only with the most modern and improved machinery and systems." PROVISIONS OF MINING LAWS. The mining laws are very liberal and every facility is given to the prospector to explore and denounce [locate] mines, not only in public lands, but in privately owned lands. There is liberality, too, in the grant of easements necessary for the proper working of mines, which are treated on the same basis as public utilities and the right of expropriation or condemnation given for their benefit. There is, however, consider- able red tape, and sometimes there is apt to be much delay before -final title is adjudi- cated by the Government, but the danger of "jumping" claims is reduced to a min- imum. The expenses for locating claims, obtaining possession, and acquiring title are comparatively small, and the annual taxes are very low, and if the equivalent of 40 years taxes is paid in at once, an indefeasible title in fee is acquired, exempt in perpetuity from future taxes. Another feature of the law, while attractive from some standpoints, especially that of the large company investing heavily for plant and machinery and naturally desiring reserve ores in the neighborhood, has done much to hinder the mining development of the country j and that is, that so long as the taxes are paid no annual work whatsoever need be done in order to preserve the locator's rights. The consequence is there are a great number of mines which have been denounced and acquired (fully half of them) whose owners, for the lack of capital or of initiative, do nothing but wait for some one to come along and buy them out. And because of exaggerated ideas of the values of the properties, which they themselves have never scientifically explored, they often ask inflated and prohibitive prices. Consequently a large area of known good mines and mining land lies idle and unproductive because the owners will neither exploit them themselves or allow others to do so on reasonable terms. The policy of the law MINING. 101 fluctuated greatly on this point for many years, but the present system was finally adopted in 1896. 5 There are, of course, two sides to the question: A reconciliation might perhaps be effected by amending the law as to future denouncements [locations], so as to require working except in cases where adjoining or near-by claims are held under the same ownership as mines in active operation. The law in regard to the use of waters might also be advantageously amended, so as to do away with the preference now given to the first discoverer of mines in the neighborhood, whether he works his mine or not, and likewise the procedure for assessing damages is susceptible of improvement, the present system giving plentiful opportunity for petty but annoying extortion. A valuable privilege appurtenant to mining claims is the preferential right to an adjudication of a large tract of public lands in the vicinity of the ' ' pertenencia, ' ' as the mining unit of soil granted is called. As, with rare exceptions, the public lands in the mining regions are forest covered , this insures a supply of the necessary timber required for mining operations. The nation can well afford to be generous with its public lands and forests. Even apart from the great "llanos" and "selvas" of the Amazon and Orinoco watersheds, about one- third of the area of the country is still in the public domain. Almost every known mineral of commercial importance exists in Colombia, but the future importance of the mining industry, other than gold and platinum mining, is dependent upon the development of better transportation by means of railways and roads. Numbers of mines and several rich mining regions are practically inaccessible, and mining costs would be excessive unless very rich deposits were dis- covered. Foreign companies wishing to prospect for placer mining in Colom- bia should be prepared to furnish a large expedition, well equipped and having men experienced in the Tropics. Medical service should also be provided as a necessary requisite to the success of the work. Such properties can only be developed successfully by large capi- tal, and the cost of operation and equipment is very great. The general opinion among practical and experienced mining engineers who know the country and conditions is that only the most valuable ground can be worked at a profit under present circumstances. At the end of the year 1915 the number of known mines in five of the most important Departments of Colombia was 18,386 12,181 in the Department of Antioquia, 2,452 in the Department of Narino, 2,610 in the Department of Caldas, 641 in the Department of El Valle, and 502 in the Department of Tolima. In addition to this list, min- erals, mostly gold, are to be found in the Departments of Santander and Bolivar, in the Choco Intendency, and elsewhere. COPPER MINES. Copper was mined by the Indians, and the industry was followed in a very primitive way by the Spaniards in Colombia during colonial times, but for local consumption only, the principal sources of the metal being obtained from rich oxidized ores found very near to, or on, the surface. Old copper mines exist in the Departments of Antioquia, Boyaca, and Tolima, those of Boyaca being worked in a small way and by very crude methods, to secure copper for kettles for sugar and soap making. The mineral is also known in the Departments of Bolivar, Cauca, Cundinamarca, Santander, and in Norte de San- tander, where only recently, in the neighborhood of the town of Fonseca and also at Villanueva in the Valle Dupar district, an Ameri- can engineer reported having examined large deposits of rich copper * NOTE BY TTMDE COMMISSIONER. See decision of Supreme Court re Petroleum Decree No. 1255 of June 20, 1919, dated Nov. 21, 1919. This recites the history of mining laws and legislation in Colombia. 102 COLOMBIA: A OOMMEKCI.M, AND i MISTRIAL HANDBOOK. ore, occurring in series of pockets near the surface and being very near to extensive pods of a fair grade of bituminous coal, about 150 miles from the Caribbean Sea at Kio Hacha, by way of the Goajira Penin- sula country to the east of the Sierra Nevada Mountains. In the Department of Cauca the principal deposits of copper occur at San Lorenzo, Coli, Pichinche, and Anaragueda, but, like others in the country, these are not being worked ana await better transporta- tion facilities, which will be provided by the southern branch to Popayan of the Pacific Railway. As there is little interest in copper properties in Colombia at the present time, there appear to be no re- ports or studios of deposits of this ore from which data as to their nature and geology could be obtained. GOLD MINES. PRINCIPAL COMPANIES. Gold is the most important mineral produced in Colombia, the exports of gold bars in 1915 amounting to $3,580,108, of gold dust to $1,126,904, and of gold coins to $415,212, The Breitung Mines Co., a Delaware corporation capitalized at $1,527,590, acquired some time ago the property of the Marquette Magdalena Co., situated near the town of Caceres on the Cauca River in Antioquia. These claims were not worked, however, in 1916 and no dividends are being paid. The Compania Minera de Zancudo, with headquarters in Medollin, continued to operate the mines of "Zancudo," "Chorres," "Cat- eador," and "Muriel," carrying gold and silver values, and the small smelter located at Sitio-Viejo. The ores are silver and gold, with a higher percentage of the latter and with some copper as a by-product. Great Britain has successfully entered the gold-mining field in Co- lombia, the most important of these British properties being the Pato mines, the Nechi mines, the Frontino-Bolivia mines, etc. The Pato mines cover an area of about 40,000 acres near the town of Zaragoza in Antioquia on the Nechi River, consisting of bench gravel gold-boar- ing ground. The company has a capitalization of 212,000, 8 per cent income notes and 100,000 shares, being affiliated with the Oro- ville Dredging Co., of California, which controls the property through ownership of 70,000 of the total 100,000 of the stock. The same company also owns the Nechi Mines (Ltd.), under the same manage- ment as the Pato Mines (Ltd.), through ownership of 70,000 ordinary stock. During the 10 months ended June 30, 1916, the yield of gold was valued at $525,130. The Pato mines and the other large vein and placer properties of the country were affected to a very great extent by war conditions. Not only was there a great increase in operating expenses and the cost of new machinery, equipment, and supplies, but taxation by the respective countries had the effect of suspending active production of fold, for the reason that the income tax took no account of the con- ition of the industry and had the effect of inducing the companies to leave the richest ground alone until such time as conditions are more favorable. The gold produced, instead of being exported (as was formerly the case, on account of the premium on London and New York exchange in Colombia) , was sent to the Medellin mint for coinage when foreign exchange was at a discount, especially in 1919, the com- panies thereby reaping an additional profit on the purchase of New MINING. 103 York and London exchange at a heavy discount with Colombian gold coin secured from the Government mint at Medellin. However, the profits on exchange did not reimburse the companies for their extra heavy operating expenses during the war nor for the requirements of the income tax or corporation tax, making it unprofitable for them to work their best ground. The Frontino & Bolivia Mines was registered in Great Britain in 1911, as the successor to a company of similar name incorporated in 1886, to acquire the original Frontino & Bolivia Co., which began operations in 1864. Mines covering about 5,000 acres are held near Medellin in Antioquia. The exports of gold amounted to 86,972 in 1912-13, 88,311 in 1914-15, and $115,460 in the period 1915-16. The Tolima Mining Co., another British corporation, owns the Frias silver mines and water-power rights at Tolima. The Timbiqui Gold Mines- (Ltd.) owns placer claims on the Tim- biqui River, the properties covering rights to about 865 square kilo- meters of territory. Gold produced in 1913 was valued at 33,390 and in 1914 at 38,750. The Colombian Mines Corporation (Ltd.) owns extensive mines in the Remedies district of Antioquia. Operations were started in 1883, and substantial dividends have been paid in the past. Leases on the " Sucre" and " Providencia " properties expired in 1913, and during the war operations have been suspended, properties being leased to other interests. The Colombian Mining & Exploration Co., registered in London in 1908, owns leases and mining properties hi the districts of Supia and Marmato and in the municipalities of Apia, San Clemente, Anser- maviejo, Sucio, Rio Sucio, Nazaret, and Marmato. The principal property is the Marmato Hill mine. The ralenque Gold Mining Syndicate, formed in 1898, owns the hydraulic properties located at Palenque, near Honda, Department of Tolima; it leased the mines in 1909 to another company for 25 per cent of the profits. Another foreign property is that of the Platinum & Gold Conces- sions of Colombia (Ltd.), a Belgian company, leasing alluvial platinum and gold properties located on the lower Opogado River in the Choco Territory, near the town of Novita, and having an extent of about 15 kilometers (9.32 miles) in length by 2 kilometers (1.24 miles) in width. A French company known as the San Antonio Gold Mines Co. (Ltd.), acquired gold-mining properties near Cali, Department of El Valle, in 1912, and will install modern equipment as soon as con- ditions after the war make this possible. AREA OF GOLD PRODUCTION. The Department of Antioquia is the chief gold-producing region of Colombia, the interior mountains containing the gold-bearing veins, which occur in great profusion, while in the region to the north, along the Force, Nechi, Cauca, and many other smaller rivers, one finds the principal alluvial gold mining. Everywhere in the interior where even small streams are encountered, there is seen the debris of old placer operations. In Antioquia the entire length of the Force River from Medellin down to the Nechi has been worked by the natives, 104 COLOMBIA: A COMMERCIAL AND INDUSTRIAL n. \xnnooK. and there still remain rich benches where machinery and modern methods are necessary to handle the great bowlders and to bring in water for washing. One American company has installed hydraulic equipment with great success near Force Station in Antioquia. Antioquia consists of an agglomeration, or cluster, of mountains, forming the end of the CentralCordillera of the Andes where it begins to spread out into the foothills and plains near the boundary of Antioquia and Bolivar. There are many good formations for gold veins. The mountains east and southeast of Remedies, the rivers of Tamar, Ite, and the region called " Alcante" are still unexplored to any extent, as are also the left banks of the tributaries of the Mng- delena, such as the San Bartolome, Nare, and La Miel Rivers, when- placer and quartz mines have not been seriously prospected as yet. Also, the northeastern region of the Sucio, Dabeiba, Ituango, and Simitaba Rivers, etc., are almost deserted at the present time. Gold is found not only in quartz formations but also in mica schist, which requires more work and expense than is generally the rule with placers. All old gold mines possess their history, more or less exag- gerated by the natives, who are expert surface prospectors for rich, free ores. The placer gold region of Antioquia begins at Medellin near the headwaters of the Force River ana extends north as far as the San Jorge River in the Department of Bolivar. The Force flows into the Necni and the Nechi into theCauca, and there are innumerable small streams forming a network of rivers and swamps, with gold-bearing gravel found in the benches of the hills of the rivers' courses and also in the beds of the streams. The entire region is alluvial in formation and can be said to have been practically untouched, so far as large mining operations are concerned. There is unlimited opportunity for dredging and hydraulic mining on a large scale. The famous Pato mines are located on the Nechi River near Zaragoza in this region. The entire placer district is very tropical, consisting of low hills covered with a dense tropical growth, interspersed with small streams. The climate is very unhealthful, and native miners from the interior of Antioquia can hardly be persuaded to come down from their hills into this region on account of the fevers prevalent there. The bulk of the population, which is small, consists of Negroes and mulattoes, who furnish most of the labor for the dredging companies, and who also engage in washing for gold on their own account. Dredging with small dredges is the only form of gold mining now carried on in the Tigui region. Prospecting and drilling operations show that bedrock is struck at a depth of 12 to 15 feet, and that con- sequently yardage runs very low, not over 10,000 to 15,000 yards per acre. Wages of the native washers and placer miners average from $0.25 to $1 per day. The earnings of the native miners depend on whether the ground is worked before or after a flood, which causes natural riffles to form in bars along the stream. The labor supply is plentiful. An American mining and leasing company owns and operates a quartz mine located in this district. The plant consists of a 15-20- ton tube mill, and produces $15,000 worth of gold monthly. On the headwaters of the Tigui River is located a mine belonging to another American concern. The property is a large free-milling vein carrying an average value of $40 per ton. Work was started seven MINING. 105 years ago, and the property has produced more than $2,000,000 worth of gold up to date. Tne equipment is a 10-inch California-type stamp mill, operated by electrical machinery. To reach the mine, a river steamer is taken at Barranquilla up the Nechi River to La Raya, thence two days by canoe up the La Raya River, and thence, by mule trail, two days' ride to the mine. Adjacent to the Tigui district is the Cano Urales district, located in the Department of Antioquia and very promising as a mining center. There are several native stamp mills in this section, which turn out $25,000 to $30,000 worth of metal per month. The district has been traveled by American mining men and is a good section for pros- pectors. Hydroelectric power can be found everywhere and is cneap and easy to develop. The district is isolated, but there are many ranches or "fincas in the region, and food is cheap and plentiful. The formation is granite and slate, and there are innumerable quartz veins. Little blasting is done, as mining is carried on with bar and pick. The best mines are at the foot of the Cordilleras and along the contact of the slate with the granite lying east and along the Tigui River. This contact runs practically north and south. Farther away are many large veins of "bull" quartz which carry no value. There is an opportunity in this district to introduce American electric machinery and to take over old native properties of which a number were abandoned when the water level was reached, but which still carry excellent values. Going up the Cauca River above the entrance of the Nechi, one finds the alluvial placer mines of the Caceres district, where several American companies are operating. In this territory there are still to be exploited good gravel extensions with excellent hydraulic mining and dredging conditions abundance of water, proper cur- rents, and dumping facilities, three cardinal requisites for placer and alluvial mining operations. Caceres can, at times of high water, be reached by river steamer from the Magdalena (say during two irionths of the year), but generally traffic is by launch and canoe down to Nechi and to Zaragbza, the largest town in the district of the placer mines of Antioquia. In the large territory between the Cauca and the Force Rivers in Antioquia there is an unexplored area which contains many gold veins and also alluvial deposits at the foot of the hills west of Furifi- cacion, Natagaima, and Nieve. This is a region of low hills, the average elevation being about 3,000 feet above sea level and the climate not so bad as that lower down, to the north and east toward Zaragoza. PLATINUM MINING. Colombia has long ranked second in the world's production of platinum, ranking next to Russia, prior to the war, and furnishing about one-tenth of the entire supply. It was in the placers of 'the Choco that the metal was first discovered by the Spanish scientist, Antonio de Ulloa, in 1737, but for years it was collected with the gold and then thrown away as worthless. The depletion of the Russian yield as far back as 1910 and the increasingly high prices 'obtained for platinum because of its uses in manufacturing, in the arts, and for jewelry, capped by the climax of the war, when Colombia became the principal source of supply and the industry was greatly 106 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. stimulated, 6 have seriously drawn the attention of miners to Colombia as the chief source of supply of platinum for the future. In the early days of the gold placers of the Choco Territory, as has been said, platinum was collected with the gold and then separated and thrown away as worthless. In the town of Quibdo, the center of the placer mining of the Upper Atrato River region in the Choco, the very streets and yards of the houses have been mined and washed to recover the old metal thus discarded as worthless when the wash- ing was for gold only. One man extracted a total of 17 pounds of platinum, worth about $28,500, from around the foundations of his old house. AREA OF PLATINUM PRODUCTION. Platinum is found in Colombia throughout the entire western part of the country, from the Atrato River in the north to the Ecuadorian border, but there are two districts where the metal is found in paying quantities (1) the Barbacoas region along the Patia River and its tributaries in the Department of Narino, reached by river steamer from the Pacific port of Tumaco, and (2) the far more important platinum-mining region of the headwaters of the Atrato and San. Juan Rivers. The Atrato flows north through the Choco Intend- encv between the low Pacific Coast Range and the Western Cordillera of the Colombian Andes and empties into the Gulf of Uraba near the boundary. with Panama, while the San Juan River rises just over a low block of hills to the south of the headwaters of the Atrato and flows south as far as the line between the Choco Intendency and the Department of El Valle, where it turns to the west and empties into the Pacific Ocean just below Cape Chirambira, north of the Pacific port of Buenaventura. The platinum rivers of the San Juan watershed are known as the Condoto, Platina, Iro, Tamana, Berbara, Negua, Andagueda, Cer- tegui, Agua Clara, Negria, etc. The town of Quibdo is the headquarters for the placer mining industry of the Atrato and is located* at the head of navigation on that river, having steamer communication with Cartagena (see p. 21 7) . The town of Tado, located at the head of the Raspadura River, a tributary of the Atrato, is in communication with Quibdo by canoe, and the placer mining district of Quibdo extends from Taao down the streams as far as a point north of Quibdo on the Atrato River. An- other river in this section is the Baudo, which flows west into the Pacific directly west of Tadp. The town of Baudo is headquarters for mining on the Baudo River. On the San Juan River, which is reached by small steamer from Buenaventura, the head of navigation is at the town of Negria. From this place Quibdo can be reached by a canoe journey of two days to the mining town of Istmina and then a two-day mule journey, followed by a short canoe trip to Quibdo. In this trip one crosses the divide of low hills between the two watersheds. The Condoto River joins the San Juan 6 miles below Istmina, and at the mouth of this river is located the main camp of the Ajiglo-Colombian De- velopment Co. (Pacific Metals Co., Adolph Lewissohn & Sons, New York). The war price, as fixed by the United States Government during the war, was $105 per ounce. This figure increased, on the removal of Government control after the armistice in November, 1918, to as high as $168 per ounce, sales being made in New York at even higher prices. MINING. 107 Platinum is never found in the placers alone, but always with gold. In some rivers gold predominates, and in others platinum. It is a curious fact that much more platinum in relation to gold is found south of the divide between the Atrato and the San Juan Rivers. The greatest producing center for platinum is the Condoto River district, which has been worked more extensively during 1917, 1918, and 1919 than ever before, and many native miners were attracted from the Quibdo side of the divide to this district when the high price of platinum stimulated the industry. The largest producing section on the Quibdo side during the last two years has been along the Quito River, a small tributary of the Atrato, the mining opera- tions being along the headwaters of the river. FORMATIONS. The entire Atrato and San Juan River country is of alluvial forma- tion, and on account of the broken nature of the country and the heavy vegetation no accurate estimate can be made of future pro- duction possibilities. However, it has been stated on very good authority that the fields are much more limited than has been sup- posed, and that, after the- richest of the bars and banks have been exhausted by the crude operations of the native miners, it will be a question of large modern dredgers well equipped to handle a large yardage daily of low-grade gravel and sands, somewhat along the lines of placer dredging operations in California during modern times. METHODS EMPLOYED IN THE INDUSTRY. The total population (principally Negroes, with a few Indians) of the Pacific coast gold and platinum mining section of Colombia has been estimated at about 100,000 for the entire Choco Intendency, of which 60 per cent are Negroes, 20 per cent mulattoes, 15 per cent Indians, and 5 per cent whites. This population lives in the mining towns along the various rivers the largest being Quibdo, with about 6,000 people and in shifting camps along the rivers, the population being mostly of a floating character and following the mining work according to the season of the year and rumors of rich ground, etc. Possibly not more than 6,000 people, men and women, are engaged in placer mining at any one time, the women working as well as the men and handling the wooden "bateas" for washing the bedrock sands recovered and collected by the men. The Negroes engaged in this work seem to care little for wealth, being mostly content to work a few weeks on a rich spot, and then drift down below Quibdo or to the coast, where plantains and fish are more plentiful. The Negro miners use the canoe universally for transportation up and down the many small streams. Their tools consist or the wooden "batea," the Colombian substitute for the "pan" of the American placer miner, and a species of iron or steel hoe called the " almocafre," about 4 inches wide and tapering in a curve to a sharp point inward toward the operator and carrying a wooden handle about 18 inches long. This tool, usually made by local blacksmiths, costs from $0.80 to $2, depending upon whether it is made of iron or steel. The "barra" is also used, this being a drill steel bar, usually 1J inches in diameter, 32 to 40 inches long, sharpened to a point at one end, with a wide wedge at the other, and used in place 01 the pick. When 108 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. the bar is of iron with a steel point it costs $1.20 to $2, hut if of pure steel (drill steel) the cost is as high as $3 in the mining regions. The wooden "bateas" are made locally, and cost $1 to $2 each, the trading medium of the entire mining section being silver coin, and not the currency of the country. The Negroes are very expert in following the rivers and locating gravel banks, etc., and alluvial deposits. It rains a great deal through- out the Atrato and San Juan regions, rains being almost incessant. As heavy rainfall is registered in this region as anywhere in the Tropics. As a usual thing, pits are dug in the banks for the collection of water for washing banks, and even diving is resorted to for the purpose of bringing up rich sands from the pockets in the rock of the stream beds. After a few weeks' work on rich ground the men retire down the river or to the coast until another season. FOREIGN DREDGING COMPANIES. French, English, and American mining companies have invaded this region, and several successful dredgers are being operated. The principal companies are the South American Gold & Platinum Co., on the Condoto River; the Paris-Transvaal Gold Mines (Ltd.) (con- solidated with the Consolidated Colombian Platinum & Gold Mines, Ltd.), on the Guapi River and the Opogodo River; and the Anglo- Colombian Development Co., on the Condoto River. The combination of the Paris-Transvaal Gold Mines (Ltd.) and the Consolidated Colombian Platinum & Gold Mines (Ltd.) is known as the British Platinum & Gold Mines Corporation. This company has a new capital of 250,000, of which 150,000 shares were sold to the public. It is reported that prospecting done in the neighborhood of the Opogodo River places an estimate of 2,000,000 on the platinum and gold contained in the new ground acquired. The united dredg- ing properties of the two companies named cover 19 square miles of mineral-bearing placer grouna. The Anglo-Colombian Development Co., of New York, is a com- bination of English and American interests, and has installed the latest electrically operated dredge at "Antioquia." The large mining companies acquire large holdings of mineral ground, and this is thoroughly prospected by means of drilling, so that the production of platinum and gold per cubic yard can be accurately estimated in advance. These companies are also establishing modern and sanitary camps where their dredgers are in operation and are doing much toward making the climate safe for the white man. The greatest benefit has been derived from cutting away the jungle and undergrowth over large areas around the camps, and thereby decreasing the numbers of fever mosquitoes. In the past there have been several ill-advised attempts to take large dredgers up the Atrato River, and entire crews nave died of the fevers in a few months' time. One dredger crew lost all but one man (a foreigner). TRADING METHODS AND PRICES. The bulk of the gold and platinum produced b.y the native miners is traded for by the branch houses of the merchant firms of Cartagena and Buenaventura, the former port exporting the largest amounts of MINING. 109 both metals. The Syrian merchants of Cartagena have large branch stores in Quibdo, Istmina, Baudo, Tado, and other places, and general merchandise to the value of approximately $1,000,000 per year, con- sisting principally (in the ratio of about 60 per cent) of cheap cotton goods, is imported through Cartagena and Buenaventura into the mining region and used for trading for gold and platinum; (See p. 225.) These traders pay about 30 per cent of the New York quotation on platinum, deducting also about 10 per cent for impurities contained in the metal. With the platinum there is often contained certain amounts of other rare metals, such as iridium, palladium, osmiridium, etc., for which percentages of excess value are paid by the purchasers in the United States (sometimes as high as 25 per cent over the value of the platinum), and this extra value is an additional profit for the traders. Mining activities in Colombia have been greatly stimulated by the rapidly advancing prices paid for platinum. Before the war prices averaged around $45 an ounce (troy) in New York, as compared with the normal price of $20 for gold. From the latter part of 1915 to the present time platinum prices have fluctuated between $55 and $105 an ounce. The following are the average prices since 1906: 1906, $28.04; 1907, $28.18; 1908, $22.85; 1909, $24.83; 1910, $32.70; 1911, $43.12; 1912, $45.55; 1913, $44.88; 1914, $45.06; 1915, $49.63; 1916, $83.40; 1917, $105; 1918, $105; 1919, $164; 1920 (to March), $156. SHIPMENTS OF PLATINUM TO UNITED STATES. During the three years preceding the war, imports to the United States of platinum, in nuggets, bars, etc., all crude metal, amounted to 100,000 to 120,000 ounces per year, of which Colombia furnished only about 10 per cent. In, recent years the figures have been as follows : Years. Total imports of platinum. Imports from Colombia. Troy ounces. Value. Troy ounces. Value. Fiscal year 1915... 40,538 89.656 30,107 54, 962 5J,550 $1, 597, 124 4,205,342 2,100,921 4,949,755 5,229,309 13,601 25,588 21,278 30,543 26,046 $470,938 1,473,553 1,536,422 2,630,614 2,303,211 Fiscal vear 1916 Fiscal year 1917 Calendar year 1918 Calendar vear 1919 The present imports of platinum to the United States from Colom- bia represent almost the total production of the latter country. Platinum possesses extraordinary ductility, and will not tarnish (oxidize). It is used in the manufacture of concentrated sulphuric acid, chemical and physical apparatus, electrical equipment (ignition points), and for nitrogen fixation, jewelry, dental work, etc. COAL DEPOSITS. Coal is found in almost every region of Colombia. There are coal deposits in the Goajira Peninsula east of the Sierra Nevada Mountains, in the extreme northeastern part of the country; there are coal 110 COLOMBIA: A COMMERCIAL AND INDTSTIMAL HANDBOOK. deposits near the Gulf of Uraba, in the extreme western region ; there are large beds of coal along the San Jorge River in the southern part of the Department of Bolivar; there are coal deposits all along the Eastern Cordillera in the Bogota region; coal exists in large quantities near Medellin (Amaga fields) in Antioquia; the coal fields of Cali in the Cauca Valley are very extensive and well known ; coal is also found much farther south, west of Popayan; and there are rumors of large veins of coal to the west of Antioquia in the Western Cordillera, near the town of Urrao, on the proposed route of a railway to run from Medellin to a new seaport on the Pacific. The coal beds of the interior are not well placed for export, but there are four known fields from which coal could be advantageously exported to the coaling ports of the West Indies and to the Panama Canal : (a) The deposits of the Goajira Peninsula, near the towns of Cerre- jpn, Jagiva, and Conejo, lying a little southeast of the main body of the Sierra Nevada, within easy rail distance of undeveloped deep-water harbors on the Caribbean Sea, such as Bahia Honda and El Portito, and capable of being reached by the construction of a light railway not more than 120 miles in length, over fairly level ground. (See description of the Goajira Peninsula, p. 29.) (6) The deposits near the Gulf of Uraba, which are located in a wild, very tropical territory, and are undeveloped and little known at the present time, except for the fact that they probably belong to the formation expending along the Western Range of the Andes, which includes the veins found near Cali in the Cauca Valley, much farther south. (c) The deposits of the San Jorge River, in southern Bolivar, reached now by shallow-draft river steamer from the Magdalena via Barranquilla. These had attracted "the attention of American engineers interested in supplying coal for railways and shipping on the Caribbean coast. They are easily accessible by means of a light railway from Cartagena, over a fairly level, though tropical country and not more than 120 miles long. (d) The fields of the Cauca Valley, near the city of Cali, distant by rail (over the Pacific Railway) 200 kilometers or more, according to location, from the port of Buenaventura, which is within 400 miles of the Panama Canal by water. So far as is known at present, the Cali coal beds are the largest, of the best quality, and the most accessible for immediate export in large quantities. (For complete description, see p. 276.) The approximate distance by water from the loading port for the Goajira coal to the Panama Canal is 500 miles across the Caribbean Sea, and from the Uraba fields less than 200 miles by sea to Colon. It is impossible to give any accurate description of the many coal fields of Colombia or any estimate of the probable extent of the various deposits, but the country has in its coal a valuable asset, almost untouched and very little explored or even known. The few coal mines that have been opened are all worked superficially and by very crude methods, to supply the small local demand and for the short lines of railways in their respective regions. Only one attempt has been made to export coal from the country. In 1919, about 3,000 tons of coal were shipped from the Cali fields to Chile and Panama as an experiment. This failed to meet with the desired MINING. Ill results on account of the fact that the coal had to be mined by hand in a very crude manner, packed down to the railway in two-wheeled carts and on pack mules, loaded by hand in sacks, and handled in the same manner at Buenaventura into lighters, from which it was finally transferred to ship's deck, there being, at the time, no dock at Buenaventura of any kind. No geological survey of the Colombian coal fields has ever been made. One has recently been ordered by the Government but held in abeyance on account of fiscal difficulties. The known coal meas- ures of Colombia are as follows : 1. Bogota coal fields. 2. Tequendama, south of Bogota. 3. Zipacon, west of Bogota. 4. Subachoque, near Pradera iron mines, north of Bogota. 5. Cajica, near Government-owned salt mines at Yapaquira (Zipaquira) . 6. Nemocon mines, near Nemocon. 7. Sequilla and Guatativa (Bogota region). 8. Suebca and Pacho iron mines and coal deposits, northwest of Bogota. 9. Outcroppings at Ubate, Fuquene, and Velez, in Santander, northwest of Bogota. 10. Tunja, Sogamoso, Santa Rosa, and Gambita, in Boyaca, north of Bogota. 1 1 . Department of Santander, farther north (little known) . 12. Magdalena River Valley. 13. San Jorge River in Bolivar. 14. Cerreion, Conejos, etc., in Valle Dupar region, northeast. 15. Medellin and Amaga in Antioquia. 16. Urrao district, west of Medellin, in western Cordillera. 17. Gulf of Uraba. 18. Cauca Valley (known as the Cali fields). 19. West of Popayan. 20. Santa Marta district. The deposits named under Nos. 1 to 11 are undoubtedly included in the formation of the Eastern Cordillera, coal being known to exist for a distance of 300 miles north and south of Bogota, which lies near the Eastern Range of the Colombian Andine mountain system. In this same formation it is possible that the deposits of Cerrejon, etc. (No. 14), in the territory east of the Sierra Nevadas, in the extreme north- eastern part of the country, may be included. Nos. 12 and 13, lying west of the Magdalena River, are included in the formation of the Central Cordillera of the Andes and are un- doubtedly (judging from more recent knowledge of the coal forma- tions of the country) continuations of the fields found at Amaga, near Medellin. Nos. 16, 17, 18, and 19 belong to the Western Cordillera formation, while those of the Santa Marta district can not be placed easily, since li ttle is known about them ; perhaps they are connected in some way with the fields known to exist farther to the southeast at Cerrejon and Conejos. All the coal beds in Colombia belong to the post Cretaceous age and are thought to underlie extensive areas. The formation is all coarse sandstone and clay shale interbedded with partings of slate. 112 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The coal is 3, light bituminous, usually with a very high percentage of volatile matter. Three seams occur, varying in tnickness from 0.6 to 2.2 meters (meter = 3. 28 feet) each. The three seams are very well defined in the Bogota region but are not so plain in the Cali region, where only two main veins or strata are proven. The average width in the aggregate is 2 meters, though in the Cali district there are places where one vein measures 22 feet in thickness. The estimated reserve supply of Colombia is said to be 27,000,000 tons. Investigations by foreign engineers, which were supported by an American coal expert who visited the region of Cali in 1914, led to the belief that the Cali fields occupy a great area beneath the floor of the valley, the statement being maae that drillings in the floor of the valley would show underlying beds of very good coal. (See p. 276.) This theory of the formation in that section was subsequently proven erroneous when extensive drilling was done in the Cali region by American engineers during 1919. No coal was found even at a deptn of 300 feet below the lowest point in the Cauca Valley near Cali, and an exhaustive examination of the entire district furnished an entirely new theory regarding the coal formations, which would also seem to apply (by reason of their great similarity) to all the coal deposits of the country, including those of the Bogota region as well as those of Amaga and the San Jorge River in the line of the Central Cordillera. This new theory of the coal formation of Colombia is that the coal veins were originally formed horizontally at a considerable elevation above the present floors of the valleys, which have been cut away by erosion, breaking down the coal veins, which are now seen in out- cropping to be lying in almost vertical positions, but that the main veins lie in curves, or folds, dipping into the Cordilleras on either side of the valleys, all surface indications being much broken by volcanic action and affected by heat and other factors. In 1916 the Minister of Public Works handed down a decision regard- ing titles and rights of coal lands to the effect that coal mines do not come under the provisions of the Mining Code laws regarding such minerals as gold, silver, copper, and platinum and are not denounce- able under the Mining Code. Owners of lands adjudicated prior to the land laws of October 26, 1873, own the subsoil and the minerals found therein such as coal, asphalt, petroleum, lead, zinc, etc. The ownership of lands which have been since adjudicated by the Govern- ment does not carry ownership of the subsoil, and coal found therein can be worked only with the consent of the Government. The Government also owns and controls the coal found on all public lands (baldios) . For a more detailed description of the various coal fields of the country, including analysis of the coal, extent of mines, tonnage con- sumption, and local uses, the reader may be referred to the sections on coal in the various commercial-district reports beginning on page 185. See also Special Agents Series No. 160, Construction Materials and Machinery in Colombia," page 21. MINING. 113 MINERAL EXPORTS FROM COLOMBIA AS A WHOLE. The tables below are presented in order to enable the reader to compare the metal exports of Colombia during the prewar period and during the war. The first table shows the metals exported, by countries, in 1911 (includes gold and platinum) : [Kilo=2.2046 pounds; Colombian dollar=$0.9733.] Countries of destination. Kilos. Value. Countries of destination. Kilos. Value. France 14.469 Colombian dollars. 574, 329 United States . . 158,236 Colombian dollars. 2, 008, 545 Germany 77, 481 45,728 Other countries 4,175 6,140 1 480 415 Spain 1,800 270 Total 1,737,222 4, 507, 761 United Kingdom 1, 479, 581 1, 872, 334 During 1916 the mineral exports from Colombia were as follows (values in Colombian gold dollars and at average schedules of prices) : By customhouses. Kilos. Value. By countries of destination. Kilos. Value. Barranquilla 809 498 Colombian dollars. 4 703 176 Dutch East Indies 1 . . 539 Colombian dollars. 102 Buenaventura 727 724, 158 Ecuador 2 . 1, 520 52 Cartagena 28, 198 1, 617, 182 France . 3,040 1,700 Cucuta (via Maracaibo) Italy 8 3,860 Ipiales 1,520 52 Panama 3 . : 92 54,500 Meta United Kingdom . 717, 568 365 170 Rio Hacha .... 539 102 United States. 118, 459 6, 863, 682 Santa Marta Other countries 29 4 773 244 400 Total 841 255 7 2S9 070 Total 841, 255 7, 289, 070 1 Salt and kaolin from the Goajira Peninsula. 2 Via Ipiales. 3 Platinum from Cartagena, mined in the Atrato region. The above exports in 1916 were made up of the following articles listed under "Mineral products": Kinds. Kilos. Value. Kinds. Kilos. Value. Mineral waters 520 Colombian dollars. 50 ' Gold amalgam 30 Colombian dollars. 13,830 Sulphur 1,370 28 i Gold and silver mixed (bars) 5 1,000 Coal 70 Silver in bars. 3,681 180, 180 Copper 27 456 7 260 Platinum 827 1 635 565 Concentrates (gold, etc.) 7,174 5,972 Stone and clay . . 400 4 Iron ore 92 43 Petroleum 150 24 Samples of ores 57 3 Mineral earth . 753,098 125, 987 Gold in bars 11,726 4, 381, 889 Zinc 24,630 5,000 Gold dust 1 784 835 921 Gold precipitates 8,067 77,644 Total 841,255 7, 289, 070 Gold, broken . . . 36 18,600 During 1918 the production of gold was curtailed on account of war conditions, but the amount of platinum exported increased as compared with the Colombian Government returns for 1916. The table below is given to show this comparison and how, while the 37558 21 8 114 COLOMBIA: A COMMEBCIAL AND INDUSTRIAL HANDBOOK. quantity remained practically the same, the total value of mineral exports was reduced to 5,740,752 Colombian dollars. Following is the list of mineral products exported during 1918: Kinds. Kilos. Value. Kinds. Kilos. Value. Mineral waters 98 Colombian dollars. 13 Platinum dust 487 Colombian dollars. 1 329 255 Asbestos 344 50 Silver in bars. 3 534 409 ' 7 Sulphur 925 28 Silver with gold 136 23 96G Asphaltum. .. 125 11 Lead 50 1 800 Coal 1 545,3(50 8,087 Iron ore 105 50 Copper 4,798 7,526 Petroleum. 680 70 Iron . 40,275 12,000 Gold and silver ore . 540 5 923 Gold in bars 4,724 1,894,445 Mining samples 20,004 15 603 Gold dust . . 1,133 615, 124 Mineral earth. 218 821 40 798 15 8 300 Gold nuggets 15 4,300 Total 842, 789 5,740,752 Platinum.. 620 1,303,436 1 Coal from the Call fields, exported from Buenaventura to Chile as an experiment; also to Panama! The mineral products listed above were distributed as follows : Countries of destination. Kilos. Value. Countries of destination. Kilos. Value. France 64 Colombian dollars. 57,750 Other countries 537,759 Colombian dollars. 55, 472 208 460 2 607 Spain I'ooo ' 30 Total 842,789 5,740,752 United States 95,506 5,624,893 Figures for the production of gold and platinum in Colombia during pre-war years may be quoted as follows from the Memoria del Mmistro de Hacienda: Years. Gold. Platinum. Kilos. Value. Kilos. Value. 1912... 19,642 10,819 Colombian dollar x. 6,634,913 4,100,114 875 470 Colombian dollars. 594,188 583,994 1913 Declared exports of precious metals from Colombia to the United States during recent years, as recorded by American consular officers, have been as follows: Kinds. 1915 1916 1917 1918 ' 1919 Gold: Bullion . $903.441 $2.009.079 $1,926,332 $1.616,159 $127,451 Dust 17.909 57,862 44,302 30,020 Platinum 504,302 1,456,684 2,146,088 2, 759, 396 2,682,950 Silver: Bullion 1,322 25,135 12,298 51,961 Ore 7,242 1,514 MINING. 115 METAL EXPORTS FROM BARRANQUILLA. Figures compiled by the Colombian Government customhouse at Barranquilla on December 10, 1919, showed that the total value of precious metals exported through Barranquilla in 1917 was 4,022,947 Colombian dollars, made up as follows: Colombian dollars. Gold and platinum precipitates (concentrates) 3, 555, 557 Gold, in dust and nuggets 202, 552 Gold coin 232, 512 Silver, in bars 29, 937 Silver coin 2, 389 Total 4, 022, 947 The gold coin was exported as follows: To Spain, 149,064 dollars; to the United States, 83,448 dollars. The area of production of the above amounts is mainly that of the vein and placer mines of Antioquia in the Nechi-Zaragoza district. Farther to the w T est, a small amount of platinum is found mixed with the gold in the placers, this being true more of the Caceres region than farther east around the Nechi River. The silver came from the Frias mines and the surrounding region, being shipped down the Magdalena River for export. According to the returns of the American consulate at Barranquilla, the United States has received from that port in recent years the following amounts of precious metals: Kinds. 1916 1917 1918 1919 1920 Gold: Bullion ... . $1, 598, 639 $1,794,534 $1, 085, 174 $21,899 1543 322 Dust 44,302 30,020 Precipitates 48,255 38,900 Coin 17,261 Silver bars 1,322 25,135 12, 298 41, 787 118,163 Platinum 299 3,889 2,573 3,183 The port of Barranquilla exports the gold and silver from the mines of the interior in Antioquia, etc. Cartagena ships the product of the Atrato River and its tributaries, and Buenaventura that of the San Juan River and its tributaries. Tumaco exports the product of the Barbacoas region on the Patia River and its tributaries. The mining products from farther south, around Pasto, find their w r ay out of the country via Ecuador (Quito). METAL EXPORTS FROM CARTAGENA. The exports of precious metals from Cartagena in the year 1914, as given by the American consulate, were as follows: Kinds. France. Germany. Great. Britain. United States. Gold: Bars $6,003 $257,204 $248 111 Dust .. . S5,660 3 000 91 038 330 457 Coin 8 300 6 545 Gold and platinum 64 009 Gold and silver coin 64 501 Gold and silver ore 39 391 Platinum 3,224 19 061 310 194 Silver: Bars 865 15 825 7 605 Coin 4,400 116 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. In recent years the declared exports of precious metals from Cartagena to the United States have been: Kinds. 1915 1916 Kinds. 1917 1918 1919 Gold: Cyanide precipitates $17,909 $9,606 Gold, concentrates, etc . . Platinum $256,366 1,439,506 $346,341 1,325,481 Bg,oa 1,352,894 Dust and bars 352,342 320,292 Silver and gold bars 389,059 Plat.innm . ....... 11,046 1,215,830 Silver currency '. .Vis 3:5 3.">5 Silver, mineral of. 22,933 26,568 29,882 METAL EXPORTS FROM BUENAVENTURA AND TUMACO. In 1920 Buenaventura exported 3,629 ounces of gold to the United States, valued at $258,095, and 12,089 ounces of platinum, valued at $1,088,516, according to the figures of the American consular agency. The exports of gold from Tumaco in 1911, a prewar year, were valued at 381,892 Colombian dollars. In 1916 this port's mineral exports amounted to 244,398 dollars and in 1918 to 202,776 dollars. There has been a steady decrease in the amount of placer gold exported from Tumaco, while the exports of platinum and gold from Buena- ventura have increased on account of the dredging activities of the large companies using modern methods and the stimulation of the platinum industry as a result of the high prices obtained during and after the war. MINING LAWS POSSESSION OF CLAIMS AND TITLES. GENERAL PROVISIONS. On pages 100 and 101 there is given a synopsis of the development of the mining laws of Colombia. An executive decree in 1916 restricted the granting of conces- sions of mining lands in the national lands; concessions were limited to an area of 3.86 square miles, being granted for. 25-year periods for placer mines and alluvial formations. Within 18 months from the date of the approval of his contract with the Government, the concessionaire must file with the Ministry of Public Works the precise location of the claim or claims, plans of the workings, and samples of the minerals found therein. A period, in addition to the 18 months, is allowed in which to begin active mining operations. The Government claims the right to 15 per cent of the gross receipts of the workings and authorizes the concessionaire to erect all the buildings necessary and to construct roads, light railways, cableways, telegraph and telephone lines, etc., that may be found necessary for the exploitation 01 the property. It is under such a contract that the American company, the Anglo-Colombian Development Co., previously mentioned, is operating placer ground in the Condoto Kiyer region. Inspection and collection are performed by an ap- pointed Government agent, who visits all mining properties operating under these new contracts. According to the prescriptions that regulate the exploitation and ownership of mines (Mining and Fiscal Codes), all gold, platinum, silver, and copper mines and mines of precious stones belong to the State in eminent domain, irrespective of the ownership of the land where such mines are located, but they may be acquired as to posses- MINING. 117 sion and ownership, by both Colombian and foreign citizens, by legal "denouncement" (location) and process in each case. (N the ote: A decree of Aug. 17, 1916, prohibited the location of mines in Colom- bia by foreigners unless they could show reciprocal privileges for Colombians in their country.) Americans wishing to acquire mining land by denouncement in Colombia are obliged to have the location made for them by trusted Colombians and transfer made to them later, since the law does not prohibit native citizens from transferring mining property to foreigners if the permission of the Government is secureu previously. During the period from 1910 to 1914 there were 3,821 mining claims, chiefly gold mines, located in Colombia, and the Government granted 1,018 titles to mines in all parts of the country. There are records of 18,386 mines in the country, but their exploitation is on a scale very inferior to their merits as mineral deposits. In his annual report for 1918, the Minister of Public Works stated that, although the total export of precious metals from the country reached nearly $6,000,000 annually, the net product for the National Treasury was only $18,000, and it was recommended that mining con- tributions and taxes be increased and new legislation carried through to correct this condition. A presidential decree of July 9, 1918, pro- hibits the adjudication of placer or alluvial mines in the beds of navigable streams. A special permit from the Minister of Public Works is necessary in order to obtain permission to work placer ground in the bed of a navigable stream. An examination by Govern- ment engineers has to be made in each case. In all legislation per- taining to mining there seems a decided tendency toward Government control. MINES IN GOVERNMENT LANDS. All mines located on Government lands are also denounceable, whether they are metal-bearing or of any other substance with the exception of coal, asphaltum, crude oil, sulphur, guano deposits, and rock salt and salt springs above 6 per cent of saturation, whose ownership is reserved by the State. But the exploitation of the latter class of mines may be effected by specific contracts with the Govern- ment, which need not be submitted to Congress for approval pro- vided they contain the following stipulations : (a) That the contract shall not be for more than 30 years' duration. (b) That, once the contract expires, all the machinery, appurte- nances, and other elements used in the exploitation or the mines revert to the Government free of charge. (c) That the compensation to the Government from the exploita- tion of the mines be not less than 15 per cent of the gross product. (Prior to 1916 the minimum was placed at 10 per cent; it was in- creased by the decree of 1916, which also restricted the area formerly allowed.) MINES OUTSIDE OF GOVERNMENT LANDS. All mines that are not of gold, silver, platinum, copper, or precious stones and that are found on private lands belong to the owner of the soil and their ownership and acquisition is, therefore, a matter of agreement with the owners of the land. This applies to owners of lands adjudicated by the Government or held under old titles prior to the land laws of October 26, 1873, under which landowners were 118 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. given one year in which, to enjoy preference for the exploration and location of mining claims on their lands, after which any mineral rights passed to the Government and became liable to public de- nouncement for gold, silver, platinum, copper, precious stones, coal, asphalt, petroleum (hydrocarbons), sulphur, etc. being the property of the Government and as such subject to special contracts witn the Government for their location and exploitation. Lands held under the old Spanish grant system of titles, or adjudicated by the Government prior to October 26, 1873, also carried the ownership of the subsoil for all minerals, with the above-cited exceptions of gold, silver, platinum, copper, and precious stones emerald mines, how- ever, being a Government monopoly, like salt mines and springs of more than 6 per cent saturation. A detailed explanation of the mining laws of Colombia and refer- ences to old and present laws will be found in the decision of the Supreme Court of Justice in regard to petroleum land rights, dated November 21, 1919 (see p. 134). MANNER OF ACQUIRING MINING PROPERTY IN COLOMBIA. As previously stated, the mines of gold, silver, platinum, copper, and precious stones belong to the State whoever may be the owner of the land where they are located, but the State cedes their possession to any person, national or foreign (if the latter can show reciprocal privileges in his own country for Colombians), who may have due legal status and right to acquire property. The proceedings neces- sary for the acquisition of a mining property that is to say, for obtaining its transfer from the Government to the individual or company are given in detail in the Mining Code. 1 The steps are, in short, (1) the "denouncement" (i. e., location) of the property, (2) the possession, and (3) the title. By "denouncement" is meant the notice given to the political authorities of the location of the property so located, the boundaries, and the nature of the deposit. "Possession" is the actual location and delivery of the mine field or area by survey, made in the presence of an official representative. "Title" is the legal document issued by the authorities in favor of the locater (denouncer) of the mine, whereby he may attest and prove that the State has duly ceded the possession and ownership of the mining property in question. The ownership of a mining property is acquired definitely by title, and it is maintained by the payment of the taxes on the property, no annual assessment work being necessary; therefore any person who acquires a mine is protected in its ownership by the authorities until he abandons it. A mine is considered " abandoned " if the owner should fail to pay the annual taxes on it, in which case the property automatically reverts to the Nation and the mine may then be "de- nounced" by another person. Twice annually lists o? new locations and abandonments are published by the gazettes of the departmental governments, and these records are open for public inspection at all times. Attention is called to the point that in the acquisition of mining property located on Government (public) lands or "baldios," the i Translation by Phanor J. Eder, "The Mining Laws of Colombia," Washington, D. C. t 1912. MINING. 119 locator of the mine has a preferential right to the adjudication of as many as 500 hectares (1,235 acres) of land contiguous and adjacent to the mine denounced. Mining property and rights are declared public utilities so far as concerns the condemnation of necessary lands, timber tracts, water rights, etc., necessary for the proper working of the property. TAXES ON MINING PROPERTY. Mine taxes are of two kinds (1) the taxes required to obtain the adjudication, and (2) the annual tax required to keep the possession. The first taxes are: Colombian dollars. Denouncement of each claim of gold, silver, copper, platinum, etc. . 10 Cost of issuing title 50 The second, or annual, taxes are: Colombian dollars. Tax on each "pertenencia" Tax on each "pertenencia" Tax on each "pertenencia" Claim 20 Placer claim area 30 Precious stones; 1 square kilometer (0.36 square mile) 50 One " pertenencia" is a rectangle of 600 by 240 meters (1,968 feet by 787 feet) according to the Mining Code. LEGAL EXTENT OF CLAIMS. The largest extent allowed for a mining claim is as follows : For a lode (vein) mine, three pertenencias, each consisting of a rectangle 600 by 240 meters giving a total of 1,800 meters (5,904 feet) in length by 240 meters (787 feet) in breadth. (Art. 2, Law 292 and 23 of Mining Code.) For an alluvial mine (placer), the extent allowed is that of a square of 3 kilometers (9,840 feet) per side, or else of a rectangle whose base is 2 kilometers (6,560 feet) and depth 5 kilometers (16,400 feet). (Art. 313, Law 38 of 1887.) For a sedimentary mine or blanket deposit, the claim allowed is a square of 2 kilometers on each side. (Art. 313, Law 38 of 1887.) For precious stones, 1 square kilometer on each side is allowed. (Art. 2, Law 38 of 1887.) The claimant may, in each case, accept a smaller area; and he may also denounce a larger area, but as a separate claim and denounce- ment, which may form a continuation of the original claim. To one familiar with the mining laws of Mexico and of other Latin American countries, it will be at once apparent that the mining laws of Colombia are very similar to the others in character and construction. For further details, see page 131, under "Petroleum." PETROLEUM. INTRODUCTION. The existence of petroleum in Colombia has been known for many years. As in the case of coal, there are surface indications of oil in many parts of the country, and these have been the subject of ex- ploration from time to time, the leading pioneers being two Colombian engineers and explorers of French descent, Sr. Virgflio do Barco, of Cucuta, and Sr. Roberto de Mares, of Bogota. After many years of effort they are destined to see success result from their early efforts, as is proved by recent drillings of producing wells on lands which they originally explored for petroleum many years ago. Other pioneers in the petroleum industry of Colombia have been Diego Martinez & Co., of Cartagena wealthy land and cattle owners of the Sinu River district, the largest merchants of Cartagena in both hardware and general merchandise, and the promoters of the Cartagena Oil Refining Co., established at Cartagena in 1908 with an initial investment of $150,000 (since increased). They were instrumental in securing the cooperation of the Standard Oil Co. in 1914 for the purpose of drilling for oil in the Sinu River district southwest of Cartagena, in which unsuccessful attempt approximately $750,000 was spent up to 1916, when the properties were abandoned. The Martinez firm also drilled near Turbaco, 20 miles from Cartagena. A Canadian company also drilled for oil in the region of Turbo, between Barranquilla and Cartagena, during 1908 and 1909 on lands held under the concession known at the time as the "Armella- De Mares concession," which included the lands of the Ropelon concession in the Department of Bolivar. An American, Mr. J. W. Kelley, organized a company to take over the lands comprising about 150,000 acres between Cartagena and Barranquilla, and several wells have been drilled near Puerto Colom- bia. The work has progressed very slowly, but was still being con- tinued in 1919, when new equipment was imported. Subsequent to the failure of the Diego Martinez interests and the Standard Oil Co., and also of the Canadian company, to produce oil in paying quantities in the western Caribbean coast region, however favorable the surface indications were (and these are many and varied in character), the Tropical Oil Co., of Pittsburgh, Pa., took over in 1916 the De Mares concession lying along the Magdalena River and up the Rio Sogamoso in Santanaer (del Sur) and actively engaged in prospecting this territory for oil. As a result, three flowing wells of very high-grade petroleum were brought in 30 miles from the Magdalena River on the Rio Colorado, a small tributary of the Magdalena in Santander, joining the Magdalena at the town of Barranca Bermeja, approximately 365 miles up the Magdalona from Barranquilla. The estimated production of these wells, three in number, is 6,000 to 8,000 barrels of 35.5 to 40 Baume" cruao oil per day. Two kinds of oil are found, of paraffin base and of asphalt 120 PETROLEUM. 121 base, the latter not exceeding 3 per cent content held in suspension and burning clean in the open air. It is this success by the Tropical Oil Co. that has so greatly stimu- lated interest on the part of American oil companies in Colombian petroleum. The entire country has been actively prospected and explored for the past two years, and actual drilling operations are soon to begin on the lands of the De Barco concession in the extreme northern part of the Department of Norte de Santander near the boundary with Venezuela. Some of the largest oil companies in the United States have sent their men to Colombia during 1918 and 1919, others following in 1920, and some companies have maintained their engineers on the ground for a period extending over two entire years. Judging from the showing of the Tropical Oil Co.'s properties, 1 the many surface indications in other parts of the country, and the in- terest being taken in oil in Colombia by the large oil companies, it may be predicted that petroleum presents a very promising future in Colombia. REGIONS IN WHICH OIL IS FOUND. The prospective oil fields of Colombia may be roughly divided into six districts: (a) That of the Caribbean coast from Rio Hacha to the Gulf of Uraba. (6) The area of the northern part of the Department of Norte de Santander, near the headwaters of the Catatumbo River, which flows east from Colombian mountains into Lake Maracaibo in Venezuela. (c) The region covered by the original De Mares concession, lying in the Department of Santander (del Sur) east of the Magdalena River. (d) The region lying along the foothills of the Central Cordillera between the headwaters of the Sinu River and the San Jorge River, partly in Antioquia and partly in Bolivar. (e) The region to the west of the Magdalena River, along the eastern sides of the Department of Antioquia and Tolima, in the Magdalena Valley. (f) The region west of the city of Popayan, in the Department of Cauca, near the Pacific coast, as well as the area between Quibdo and Cali. There are also rumors of surface indications of petroleum said to exist west of Medellin, in the region of the town of IJrrao, situated west of the Cauca River Valley in the uplands of the Western Cordillera. SURFACE INDICATIONS. Surface indications are said to be more numerous (because better known, perhaps) along the Caribbean coast, where the country is more level and open and also more accessible for observation and exploration. Tliese surface indications consist of gas emanations. The gas escapes through cracks in the tough blue clay or clay shales; it may oe readily ignited, and in some places, notably near the village of Rotane, about 25 miles east of Cartagena, in the Repelon district, it escapes at the rate of about 5 cubic feet per minute or about 10,000 1 Recently purchased by the International Petroleum Co. ; see p. 130. 122 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. cubic feet per day. Near the town of Turbaco, on the railway between Cartagena and Calamar, there are a hundred or more mud volcanoes within a space of about 3 acres, all emitting gas; and a similar surface indication is seen near Monteria and near other places along the Sinu River farther to the southwest of Cartagena. Seepages of crude oil are found along the line of low hills that form the southern boundary of the level alluvial plains of Bolivar, about 60 miles south of Cartagena in an air line. The natives have found places in the tropical jungle where they can collect bottles of oil which they sometimes use for lighting purposes in crude earthenware lamps. In Antioquia, near the Magdalena River, just south of Puerto Bewio, there is a spot where, at times, crude petroleum is forcibly ejected from cracks and seams in the mud, spouting in a thin stream to a height of 20 and more feet and wetting the foliage of the trees near by. The same surface indications are found inSantander on theDe Mares concession, including seepages of crude oil from between crevices in shale and clay formations (surface) , and also farther north in Norte de Santander on the lands of the De Barco concession, already mentioned. In the valley of the Sinu there exist petroleum springs from which the natives also take small quantities of a very high-grade oil for lub- ricating purposes and for illumination. One spring produces oil of sufficiently high grade to burn in a common kerosene lamp. Samples of very good oil have been brought in to Medellin from the country around the town of Urrao, which lies across the Cauca Valley west of Medellin. DIFFICULTIES OF PROSPECTING. A review of the general topography of the country will convey a very good idea of the difficulties to be encountered in exploring for oil in Colombia. The Caribbean coast is more open than most other regions, not being always covered with a dense tropical growth, but it is broken by low hills; and the region farther to the south, while fairly level until the hills along the west bank of the Cauca are reached, is covered with a very heavy jungle. This is true also of the entire Departments of Santander del Norte and del Sur. An extremely tropical climate also prevails, and the topography, climate, and lack of roads and other means of transportation make exploration of the land almost impossible more especially during the rainy season of the year. An engineer, or group of engineers, engaged in oil-survey work must be prepaied to meet all sorts of conditions of life and travel using mules, canoes, and native packers on foot through the jungles at times, and always exposed to the rigors of the tropical climate, pestered by poisonous insects, and in danger of venomous snakes, which are found everywhere in the jungles. A party engaged in this work in Colombia must be able to endure fevers, heat, and bad food ; and the men who have shown the way in the past deserve the greatest credit for their eiforts, since they nave risked their health and even their lives. Thus far, in recent years, this exploration work has cost the lives of four young engineers, who succumbed to the ravages of pernicious malaria two of them Americans in 1919. PETROLEUM. 123 TOPOGRAPHY AND GEOLOGY OF THE OIL DISTRICTS. CARIBBEAN COAST REGION. ' Briefly, there is this main distinction between the topography of the eastern and western parts of the Caribbean coast district, which may be roughly described as lying between Barranquilla and the Sinu River and extending as far south as the bend in the Cauca River near the boundary with Antioquia: The eastern part consists of moun- tainous ground, the western part of flat ground and low hills. In the eastern part, the northern half consists of rough and broken country, rising at the highest point to an elevation of about 1,600 feet above sea level and with many other points 1,200 feet above sea level. To the south, this eastern part becomes more level and less broken (owing to the greater prevalence of shale) but still has points as high as 1,000 feet above sea level. A main watershed runs, roughly, north and south through this eastern tract, the western drainage going directly to the ocean and the eastern drainage flowing down to the Repelon Lake system and thence to the sea at Cartagena. The western part consists mainly of alluvium lying about 30 to 40 feet above sea level, with similar flats to the south, in which soft shale occurs. East of Cartagena and rising from the flats are bluffs of sandstone hills, up to 330 feet above sea level for example, the hills of Rosa Vieja and Arenal, Punta Polonia and Repelon, in which latter there are found shales lying below the sandstones. To the east are the lakes of Guajaro and Repelon, connected by a series of canals and lakes. From the Repelon Lake there runs a deep canal which connects with the Cartagena Dique. The lake system and the lowlands around it are subject to overflow from the Magdalena River during the rainy season. Southwest of Cartagena, toward the Sinu River, the country is level and there is a chain of swamps along the eastern bank of the river, becoming larger as the ocean is approached. Low hills border the Sinu at some distance on the western side, the geological formation being the same as that of the hills east and northeast of Cartagena toward Barranquilla. The formation occurring in the Caribbean region may be classified thus, the order of sequence being from the uppermost and youngest beds downward: 1. Alluvium. 2. Sandstone and pebbly sandstones, forming the bluff-like hills. 3. An alternation of coarse and fine grained sandstones with blue shales, and' gray shales, flags, fine-grained grits, and massive con- glomerates. Groups 2 and 3 are probably conformable to each other as part of the same succession. Group 1. It is sufficient to say of the alluvium that the older formations undoubtedly exist below it. Group 2. The sandstones and conglomerates are usually loose and pebbly, the latter containing quartz pebbles up to 1 inches in diameter. All sandstones are usually iron stained along the breaks. This group is about 400 feet thick and does not carry any shale. The dip of this group is usually low, not over 15 and at times 7 and even 2; in places it is bent over to dip in the opposite direction. 124 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Group 8. The older series of mingled sandstones, shales, etc., occupy all the mountainous section of the region, and toward the sea in the northern part they are steeply inclined, as a rule, striking approximately north and south, with dips of approximately 40 to the east (in extreme cases as much as 80). Some of the grades of sandstones throughout this district are coarse grained and some fine grained, found always interbedded with shale and fine-grained flags, interspersed with beds of heavy conglomerates. Limestone capping is found still farther to the east toward the Magdalena River and the ocean in the direction of Puerto Colombia. Limestone is not in surface evidence in the hills west of the Sinu River. Farther to the south the proportion of shale increases in these rocks and the conglomerates appear to die out; the strike remains the same, but the average dip becomes less, being about 30 to the east. In the southwestern part of the eastern section of this region, the formation is very much disturbed and may dip to the west, and this is also true of the formation of the hills along the western side of the Sinu. From the above it may be gathered that the whole of the forma- tions, speaking generally, dip eastward and strike north and south. This strike, farther south and southeast, swings around to bear north 30 east a direction which is plainly seen in the second group, sand- stones, etc., and which is considered to be followed by the underlying mixed shale and sandstone group, though there are no outcrops to prove this point. Anticlinal structures are noticed in the hills east of Cartagena and in a few instances near the Sinu to the southwest. To the south the anticlinal formation disappears under the surface alluvium. The crest of the anticline has been eroded, exposing red weathered shale. The anticline noted in this district has a strike of north 30 east (magnetic) . For a detailed account of the geology of the Repelon district east of Cartagena, the reader is referred to the " Report by Dr. Andrews on Property of Repelon-Colombia," namely, the Armella-De Mares concession. CAUCA-SINU REGION. There are no detailed data available covering the formations that exist in the Cauca-Sinu region, which has been superficially inspected by engineers recently and also penetrated by geologists of the Tropical Oil Co. entering from the south (Medellm) . Trie strong dip of the strata outcropping along the coast region above described and the failure of the various drilling operations near Cartagena and on the lower Sinu River to bring in a flow of oil, coupled with such reports of the Cauca hill country as are known at present, have given rise to the belief among petroleum engineers in Colombia that further drilling in the coast region, even to great depths, will not tap bodies of oil and that drilling will have to be done farther south along the line of hills on the west bank of the Cauca River. It is interesting to note that an American, Mr. Plotts, of California, associated with Sr. Armella, of Cartagena (who was also an associate of Sr. de Mares in the Repelon concession near Cartagena), owns or PETROLEUM. 125 controls 'two enormous properties in this more southern region, extending between the headwaters of the Sinu River on the west and the San Jorge River on the east. Of these properties, 500,000 acres are held under the terms of an original concession from the Colombian Government secured in 1913 and still having 18 years to run, while an additional 700,000 acres in the same region, con- taining deposits of coal and indications of petroleum, are held in fee and situated adjoining to and south of the lands held under the terms of the Government concession, extending as far south as the boundary with the Department of Antioquia. The principal outcrops of coal are located on the San Jorge River near the town of Playa Rica. This region is thought to be the source of the seepages of oil found on the coast, and the near future will see pros- pecting work done to prove the existence of oil. West of Medellin, on the western side of the divide between the headwaters of the Force River and the watershed of the Cauca, the formation changes very notably, a form of blue diorite being observed. Indications of petroleum and samples of oil brought in to Medellin come from the Urrao region across the Cauca River and farther to the west in the Western Cordillera. Recent explorations by an American engineer prove the existence of oil indications, similar to those of the coast region, in the district west and southwest of the city of Popayan in the Department of Cauca, south of Cali. It is thought that these indications are com- parable with those of Ecuador and belong to the same general formation of the Western Andes, being connected with the formation farther north in western Antioquia and along the same line as the coal formations of the Western Range. SANTANDER FORMATIONS- The indications of oil in the De Barco concession, which covers the entire width of the Department of Norte de Santander in its extreme northern end, consist of oil springs, mud volcanoes, and gas emanations, with here and there small asphalt pools mixed with subterranean mud, found in the region of the headwaters of the Catatumbo River northwest of the border town of Cucuta in Colombia and along the line of the western branch of the Eastern Cordillera north of the point where this range sends off an important range into Venezuela. Oil indications have been found on both sides of this range, both toward the lowlands of the Maracaibo watershed and to the west and northwest toward the Sierra Nevada Mountain group. The De Barco concession covers about 1,500,000 acres, the tract measuring 320 by 80 kilometers. The surface oil found is of both paraffin and asphalt base and of as high as 40 Baume gravity. This region was explored by the engineers of the Carib Syndicate, owners of the De Barco concession, in the spring of 1919, and drilling machinery is being imported via Venezuela for the development of the property. While there are no geological reports available for publication which would convey a more intimate idea of the formation occurring hi this region, it is significant that there appears to be a very definite connection between the oil deposits of the Maracaibo region in Venezuela, those of the De Barco concession, those of the Tropical 126 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Oil Co. in Santander near the Magdalena River, surface indications in southern Antioquia and in Tolima, and the recent -reports of oil in t he Department of Cauca west of Popayan. Oil has been developed in the Maracaibo region of Venezuela; the Caribbean Petroleum Co. and a Canadian-English company are drilling for oil in Venezuela near the De Barco concession, which lies in Colombian territory, and a study of the relief map of Colombia will show that these indica- tions of oil and wells actually developed are all along a well-defined line running from the producing wells near San Lorenzo in Venezuela to the south by southwest through the De Barco concession, down through Santander through the properties of the Tropical Oil Co. 1 , (De Mares concession), through the region of the indications in Antioquia and Tolima, and on down to the Pacific west of Popayan forming a line" slightly curved to the east. This line represents the line of the great anticlinal formation which has been traced throughout its entire extent, and, from the reports of a number of independent geologists (each having covered a separate region), the theory has been evolved that the oil formation extends along this line, cutting through almost the entire moun- tainous part of Colombia. It is this theory which presents the most interesting factor involved in the study of the development of petro- leum in Colombia. OIL-LAND CONCESSIONS AND DEVELOPMENTS IN THE PAST. MARTINEZ INTERESTS STANDARD OIL CO. Taking the history of the oil-land concessions and development work by foreign companies in chronological order, one finds that the oil springs of the Sinu River region first attracted attention, together with the indications to the east of Cartagena near the towns of Turbaco, Repelon, and Rotane, and led to the obtaining of a concession from the Colombian Government by Diego Martinez y Cia., of Cartagena, in 1905. This concession was to run for 20 years, and gave what was considered practically a monopoly of the oil-refining industry for the Caribbean coast of Colombia. These concessionaires brought in a boring apparatus and sunk two shallow wells of 300 feet near the town of Turbaco, 20 miles from Cartagena, on the Cartagena-Calamar Railway. Gas and other signs of oil were found, and it was thought at the time that deeper borings would have discovered petroleum. In 1908 the Cartagena Oil Refining Co. was formed, being an Ameri- can corporation, the stockholders of which, however, were Colombian citizens, headed by the Diego Martinez interests. This company, in 1915, had an investment of about $150,000, including the work at Turbaco, and the oil refinery at Cartagena was paying an annual dividend of 60 to 90 per cent, using imported crude oils from the United States and supplying the coast ana interior with refined petro- leum products. In 1914 the Pearson interests, of London, engaged in making sur- veys and plans for the improvement of the harbor of Cartagena, became interested in the oil development of Colombia and were offered the refinery and oil lands of the Cartagena Oil Refining Co. Now owned by International Petroleum Co.; see p. 130. PETROLEUM. 127 for $800,000, which offer they refused. Later this same offer was made to the Standard Oil Co. but was again rejected. In the mean- time the Pearson interests were endeavoring to obtain an oil con- cession from the Colombian Government which involved a heavy loan to the Government and constituted what was practically an exclusive right to explore for and exploit oil in the country. The advent of the European war apparently brought to an end these negotiations on the part of British interests. Subsequently the Standard Oil Co. entered into an agreement with the Martinez interests to take over the control of the oil refinery at Cartagena and to explore for oil in the district covered by their concession reaching from Turbaco on the east through to the Sinu River to the west and as far as a part of the Atrato River Valley. During 1914 and 1915 a well-organized attempt was made by the Standard Oil Co. to prospect the district for oil; camps were estab- lished, equipment imported, and several wells drilled to considerable depth, encountering shales and a thin ooze of oil but no large quan- tities. This company definitely withdrew in 1916 from this field, not because the prospects for oil were not good, but on account of certain other unpropitious conditions. ARMELLA-DE MARES CONCESSION EAST OF CARTAGENA. Another oil-land concession in the Caribbean district was that known as the Armella-De Mares concession, secured by the old Armella-De Mares Co., of Barranquilla, from the Colombian Govern- ment prior to 1900. This concession covered a tract of land having a total area of about 210 square miles and extending east from Turbaco, taking in the surface indications around the towns of Repelon, Rotane, and Rosa Vieja, east of Cartagena and about 40 miles southwest of Barranquilla. Most of this property was covered by local concessions granted to the promoters by the munici- palities of Arena! and Repelon. The rights and titles were somewhat clouded by reason of disputed boundaries and ancient claims of the two municipalities and were further jeopardized by the policy of the National Government. This concession was taken over by a Canadian company in 1907 and several wells were put down, the work being in charge of American oil-well men of experience. Oil was discovered at a depth of 600 feet, but the drilling had to be suspended when a formation was encoun- tered that prevented further drilling with the tools and machinery employed. This work was suspended in September, 1908. In the summer of 1909 a second well was sunk, with the same tools but with a new crew of workmen; and, after many vexatious delays due to heavy 'rains, floods, unskilled labor, and transportation difficulties, oil was found at the depths of 500 and 1,000 feet, of excellent quality (testing as high as 47 Baume gravity) but in small quantity. This well was capped, and engineers sent out from England recommended the further prospecting of the property, but this was prevented by the advent of the Great War. A new company is now being promoted in the United States by a prominent Colombian of Cartagena to take over the old Martinez concession and other lands farther to the south with the purpose of prospecting them for oil. 128 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. DE MARES CONCESSION IN SANTANDER WORK OF TROPICAL OIL CO. One of the pioneers in oil exploration in Colombia, Sr. Roberto do Mares, secured a concession from the Government prior to 1900 covering a very large tract in the Department of Santander (del Sur) Sr. De Mares having also been associated with Sr. A. Armella, of Barranquilla and Cartagena, in the concession covering the Repelon tract on the Caribbean coast. The first efforts to interest foreign capital in this property met with failure on account of the revolution of 1898-1904, the party of engineers brought down in 1904 not being able to land at Barranquilla on account of the disturbed condition of the country at the time. The concession was renewed in 1905 and again in 1916, and the Tropical Oil Co., of Pittsburgh, Pa., was interested in the project; this resulted in active prospecting of the property during 1917, 1918, and 1919, and the bringing in of three flowing wells. The subscribed stock of the Tropical Oil Co. amounted to 1,500,000 shares, with approximately $4,000,000 available for development work. A total of about $800,000 had been spent up to the summer of 1919. The lands of the De Mares concession front on the Magdalena River in the Department of Santander, extending to the north as far as the Sogamoso River (a tributary of the Magdalena on the eastern side), to the east as far as the high mountain range, and south as far as the Carare River (also a tributary of the Magdalena). The frontage on the Magdalena is approximately 30 miles, and the depth from the river to the mountains averages 75 miles the area containing in all about 1,300,000 acres (another estimate gives 3,000,000 acres). The concession is subject to third-party rights and does not include the right to the subsoil of lands adjudicated prior to the land laws of October 28, 1873. (See p. 133.) The headquarters of the company are located at the river port of Barranca Bermeja, at the outlet of the Colorado River, where this company has built houses for quarters and offices, a machine shop and workshop, storehouses, etc. Launches are operated on the Colorado River during the wet season to the oil wells, which are located at the junction of the Oponcito River with the Colorado 30 miles southeast of Barranca Bermeja. The known oil fields lie between the Colorado River and the Sogamoso River, in the Department of Santander. The land is level for 4 or 5 miles back from the river and then becomes very broken and covered with a dense tropical jungle and hardwood timber. The country becomes more difficult farther to the east and south toward the high mountains of the Eastern Cordillera. The Colorado River can not be navigated, even by canoes, during about seven months of the year, so the company is now engaged in constructing a good wagon road from Barranca Bermeja to the oil wells, over which a pipe line (diameter 6 inches) is also to be run to bring the crude oil down from the wells to the small refinery being erected at the river at Barranca Bermeja. The total length of this wagon road and pipe line will be 35 miles, and the road will be so constructed as to take tractor traffic. The camp at the wells will be the headquarters of the new prospecting work being done farther to PETROLEUM. 129 the northeast in lands of the concession, in which there is every prospect of obtaining still greater supplies of high-grade crude oil. The small refinery being installed at Barranca Bermeja will have a sufficient capacity to supply the entire country with petroleum products such as gasoline, kerosene, lubricants, etc., which, according to the conditions dT the Minister of Public Works, published in July, 1919, will be sold in Colombia " at not greater than New York prices." Barranca Bermeja is approximately 400 miles from the Caribbean coast at Cartagena, and Bogota is distant about 300 miles by river and rail. A large center of consumption the second largest, if not the largest, in the country is Medellin, the capital of Antioquia. From the site of the refinery it is about 125 kilometers (77 miles) by river to Puerto Berrio, from which point Medellin is reached by rail over two divisions of the Antioquia Railway, 181 kilometers (109 miles) long. The largest consumption in Colombia will be that of residual fuel oil for the river steamers, of which there are about 140 plying on the Magdalena and its tributaries, a number of which are more or less navigable for shallow-draft boats. It may be expected that fuel oil will take the place of the wood now used for fuel and will greatly facilitate the operation of river transportation. The wells have respective depths of 1,700, 1,900, and 2,300 feet, and are located very near each other (within a few hundred yards). They are flowing wells, pumping not being necessary to secure a production estimated at 6,000 to 8,000 barrels per day of 24 hours. Two of these wells produce both grades of oil paraffin base and asphalt base the latter coming from the lower level and not exceeding 3 per cent in suspension. The gravity is 35.5 Baume scale. These wells remained capped during 1919, pend- ing the erection of the refinery and the completion of the pipe line to the river from the wells. It is considered that this property can produce a much greater flow of oil through other drillings on what is considered proven ground, but the problem is one of transportation to tidewater and thence to the world's refineries. It is necessary to construct a pipe line 400 miles long from the wells to the Caribbean coast, the cost of this line being estimated at $20,000,000 to $30,000,000, including pumping stations, tank storage, and loading facilities at Cartagena. 1 It is esti- mated that a daily capacity of 50,000 barrels would be necessary in order to justify fully the cost of this line; but it has also been pointed "out that while the Colombian oil fields will have to compete with Mexico, Texas, and California production, the Colombian oil found in the wells mentioned is of a much higher gravity than the Mexican or American petroleum and as such will command a much higher price at refineries. Another advantage is the shorter distance by sea from Cartagena to the refineries on the Atlantic seaboard of the United State's than from Tampico in Mexico. This Colombian oil is of too light a gravity to use as fuel oil for steamers without refining. In March, 1919, there arrived at Barranca Bermeja an increased force of engineers, pipe-line men, refinery experts, etc., and the work on the new wagon road to the wells was being pushed. In the early months of 1920 the holdings of the Tropical Oil Co. in Colombia were taken over by one of the subsidiary companies of the 1 See footnote on next page. 37558 21 9 130 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Standard Oil Co. It is rumored that the new owners will construct the pipe line to Cartagena and provide for the exportation of oil from the I)e Mares concession lands, and, also, that new prospecting and drilling for increased production will be actively pushed during the next two years. 1 STIMULATION OF INTEREST MISCELLANEOUS ACTIVITIES. This development of high-grade oil in paying quantities on the De Mares concession by the Tropical Oil Co. has done more than any- thing else to stimulate the interest in oil prospects in Colombia, and many American and several British oil companies have had experts on the ground during the past two years. At one time during 1919 there were as many as nine representatives of large oil companies in the country and not a few individual promoters interested in securing options, leases, concessions, etc., on oil lands. Among these companies may be mentioned the Colombian Petroleum Co., owners of the De Barco concession in Norte de Santander; the Tropical Oil Co., which had engineers out in the San Jorge River region already mentioned; the St. Clair Oil Co.; the Island Oil & Transport Co.; the Gulf Oil & Transport Co.; the Ohio Cities Gas Co.; the Aaronson interests, of Tulsa, Okla.; the Union Oil Co., of California, which sent a party of engineers down in February, 1920, to report on properties adjoining those of the Tropical Oil Co. in Santander; and two engineers of the Balf our- Williams Syndicate (British), which owns extensive oil properties in Peru and nas also explored for oil in Ecuador recently. DE BARCO CONCESSION IN NORTE DE SANTANDER. The De Barco concession was originally granted by the Colombian Government to Sr. Virgilio de Barco, of Cucuta, in 1905. Fifty years was the period of time allotted, and the concession called for the payment to the Government of 5 per cent of the gross proceeds of the production of the field, which occupies the entire northern part of the Department of Norte de Santandier, northwest of the border town of Cucuta and lying directly opposite known and proved oil fields in the Maracaibo region of Venezuela. This concession carried also the privilege of exploitation of asphalt and coal and was taken over by the Carib Syndicate, an American promotion company, in 1917. The Colombian Government formally allowed the transfer of this conces- sion to the Carib Syndicate in April, 1918, but with certain modifica- tions of the terms of the original concession, the amount of the gross product to be received by the Government being increased to 10 per cent and other measures of control added. The Carib Syndicate explored the region of the concession in 1919 and that same year transferred its rights in this concession to another American oil com- pany formed by the Doherty interests of Pittsburgh, Pa., and known in the United States as the Colombian Petroleum Co. and in i EDITOR'S NOTE. In the Petroleum Age for May, 1921, the following item appeared: "The International Petroleum Co., a Standard subsidiary, has purchased an island at the mouth of the Ma?dalena Hivor, on which the company plans to erect the greatest oil refinery in the world, having a daily capacity of 25,000 barrels at the start. The Standard interests are spending millions of dollars in developing the tract recently purchased from the Tropical Oil Co. The property is estimated to be between two and three million acres, for which the Standard interests paid about $25,000,000. More than $25,000,000 is now being spent in developing the property. Three wells have been brought in * * *. The company is laying a pipe line from the field to tidewater over 300 miles at a cost of some $3,000,000." This item is reproduced here merely as the statement of an American periodical that is supposedly well informed on petroleum matters. If may be noted that there is a marked discrepancy as to the cost of the pipe line between this statement and that of Trade Commissioner Bell. PETROLEUM. 131 Colombia as the Compania Colombiana de Petroleo, the latter com- pany constituting practically the holding company in Colombia. The Colombian Petroleum Co. is to do the actual work of drilling and prospecting for oil on this concession under an arrangement on a royalty basis with the Carib Syndicate, which retains a 25 per cent interest in the concession and its future possible production. The Colombian Petroleum Co. has recently been able to secure permission to bring in its equipment and machinery through Venezuela via Mara- caibo and the Catatumbo River, which rises in Colombian territory and, during part of the year, is navigable for small steamers from Lake Maracaibo for a considerable custance. This route is much easier of travel and access than that from the Magdalena River over- land to the concession in Norte de Santander, on account of the topography of the intervening country. It is impossible to trans- port heavy machinery from the Magdalena overland to the conces- sion without the construction of a very costly road. The country is much more level and easy on the eastern watershed toward Lake Maracaibo. The De Barco concession measures approximately 320 kilometers (198 miles) in length by 80 kilometers (50 miles) in depth and con- tains about 1,500,000 acres. Surface indications contain crude petro- leum of as high as 40 Baume gravity and of both asphalt and paraffin base. During 1918 difficulty was encountered in securing permission to import the machinery and equipment for drilling by way of Maracaibo on account of the opposition of interests owning oil-land concessions directly opposite in Venezuela, who claimed that drilling in the lands of the De Barco concession would drain their properties, since the De Barco lands are of much lower level. As has been said, permission was finally secured, and in June, 1919, part of the drilling equipment of the Col- ombian Petroleum Co. had already arrived at Maracaibo and prepa- rations for its transportation into the interior and for drilling opera- tions were going forward rapidly, in charge of American oil-well crews with experience in similar work in Mexico. The Carib Syndicate has opened offices in Cartagena, from which point expeditions of engineers have covered other parts of the coun- try, the company being interested in the acquisition of other oil lands for exploration and development purposes. Colombian citizens have been very much interested in oil lands and are taking an active part in the development of the industry in the way of the acquisition of prospective oil-bearing lands and the promotion of new oil companies, as well as the presentation of appar- ent opportunities in prospective oil properties to large American petroleum interests. OIL-LAND TITLES AND LEGISLATION. CONDITIONS IN SPANISH COLONIAL TIMES. Legislation dealing with oil-bearing lands in Colombia has, in the past, been incomplete and very indefinite, but based principally on the old mining laws of the country handed down since Spanish colo- nial times. As a rule, the Spanish Crown reserved the rights to de- posits and mines of the precious metals such as gold, silver, plati- num, copper, and precious stones, and such mines were obtainable 132 COLOMBIA: A COMMERCIAL AND INDUSTRIAL MANHHOOK. under the right of discovery and location, it being the policy of the Spanisli Crown to promote in all possible ways the production of precious metals in the American colonies, where mining was the prin- cipal industry and source of wealth for several centuries. The Span- ish Crown also granted tracts of lands to colonists always to tnose who were judged capable of opening and developing these lands, the a teas so granted being limited in size only by the abifity of the favored party to stock with cattle or plant thereon. The object was to secure the development, and consequent wealth for revenue, of the various colonies. The "conquistadores," such as Quesada in Colombia, Pizarro in Peru, Cortez in Mexico, and their captains who had rendered valuable services in the discovery and conquest of new Indian kingdoms, were also given enormous grants of land always, or nearly always, car- rying the exclusive right to the mineral wealth found thereon, which was not the case when lands for agricultural or stock-raising pur- poses were granted to other colonists, when the mineral rights were reserved for the Crown. On account of the little known and explored condition of Colombia during colonial times, its broken and tropical nature, and the rather crude means of survey obtaining at the time, boundaries were vague, being described as from one river to another or from one mountain range to another (peaks being designated as corners, etc.) ; and from this condition there come down to modern times many conflicting titles of lands, which have caused endless litigation. As regards mines and mining properties, the Spanish Crown often reserved certain rich properties for itself and for operation by the Viceroy, and other rich properties were ceded to organizations of the church which had previously acquired them by right of discovery through influence among the Indians the Indians, who knew the country well and were expert surface prospectors, being encouraged to seek for rich surface indications of precious metals. FROM ESTABLISHMENT OF INDEPENDENCE TO 1919. After the establishment of Colombian independence, the new Re- public declared itself the inheritor of the Crown properties and also made new laws which were amplifications of the old Spanish laws dealing with mining rights. A famous pronouncement in this con- nection was that of the Liberator, Simon Bolivar, promulgated in Quito, Ecuador, in 1829, to the effect that the subsoil (all mines) belonged to the nation (then including Venezuela, Colombia, and Ecuador under the title of "La Gran Republica de Colombia") ; and this declaration has more recently been the inspiration of similar legislation in modern Colombia, being cited in the now famous presi- dential decree of June 20, 1919, on petroleum, in which the subsoil was declared the property of the nation under whatsoever title. Mining titles have already been explained and described in the chapter on mining. Briefly, the mining laws of the State of Antioquia, where mining had reached a higher development and production than in any other part of the country, were generally adopted in 1887 after the system or confederated sovereign States had been abandoned by Colombia in favor of the Unitarian Republic system that is now in force, thus doing away with the many conflicting laws of the former PETROLEUM. 133 sovereign States and centralizing mining legislation at the capital, Bogota. According to this arrangement, all emerald mines and salt mines belonged to the nation, to be operated for the national fiscal benefit, all gold, silver, platinum, and copper mines belonged to the States (Departments) , and all other mines to the owner of the land this bringing petroleum, asphaltum, sulphur, lead, zinc, clays, coal, and other similar substances of low value under the ownership of the owner of the land. However, previous land laws notably that of October 28, 1873, which provided for the readjudication of all land titles in the country emanating from the old Spanish Crown grants reserved for the nation the rights to mines and to the subsoil on public lands adjudi- cated after that date to private individuals and companies; hence, lands secured from the Government subsequent to that date do not carry ownership of the subsoil either for precious metals or for coal, asphaltum, or petroleum. The situation was that mines of minerals such as gold, platinum, 'copper, and precious stones were the property of the nation, held in eminent domain and subject to location by right of discovery, according to the provisions of the mining code, whether located on private or Government lands of whatever title, while deposits of coal, petroleum, clays, and the like belonged to the owner of the lands whose title predated the land law of 1873 above referred to the Government reserving to itself the right to coal, petroleum, clays, and the like on public lands still open for adjudication under the land laws or on those that had been adjudicated subsequent to 1873. Such was the condition when, in 1913, a new law proposed modifica- tions of the existing laws dealing with oil lands, and requests for the adjudication of lands supposed to contain oil reservoirs or for oil-land concessions were suspended by the Government. In the meantime four concessions had oeen granted that of the Martinez interests in the Cartagena region, that of the Armella-De Mares Co. near Repelon on the Caribbean coast, that of Virgilio de Barco in Norte de San- tander, and that of Roberto de Mares in Santander (del Sur) . Each of these concessions was granted by the Government under special contract, providing for noninterference with private land titles held prior to 1873, as noted, and covering only public land that was open for adjudication or that had been adjudicated subsequent to 1873, with the condition that the national Government was to receive a certain percentage (usually 5 per cent) of the gross product of the ex- ploitation. Up to 1919 the situation was one of uncertainty as to the ultimate attitude of the Government regarding the free exploitation of oil lands, arguments being divided between the policy of free location and exploitation of public lands for oil, coal, etc., and the policy of Government ownership which has been making such headway in Colombia during the past 20 years. Matters' were brought to a climax by the development of oil in paying quantities on the property of the Tropical Oil Co. (De Mares concession) in Santander, and by the consequent increase of interest in petroleum in the country, augmented by the activities of so many foreign engineers and repre- sentatives of foreign oil companies. It would appear that the policy of the administration in Bogota was one of Government ownership and control, the same as for rail- 134 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. ways and all transportation and public utilities; and matters pertain- ing to petroleum legislation were further brought to a climax by the executive decree of June 20, 1919 (No. 1255). RECENT LEGISLATION AND PRESENT STATUS. The executive decree of June 20, 1919, above referred to, declared for the policy of Government ownership of the subsoil under whatever title and established a Bureau of Statistics for Petroleum Mines. It made, in fact, all land and mining laws retroactive to the decree of Bolivar in Quito on October 24, 1829, mentioned on page 132; it made the permission of the Government necessary for exploration of oil lands; and it established Government control and supervision in all lines of the business. Suit was brought in the Supreme Court of Colombia (by Colombian citizens) in the form of a petition which declared that this decree was unconstitutional according to article 41 of the legislative act No. 3 of 1910, in which lands adjudicated prior to the land law passed October 28, 1873, and effective October 28, 1874, were declared not to be Gov- ernment or State property in the sense of public lands. The decision handed down by the Supreme Court of Justice on November 21, 1919, sustained the petition in that part referring to articles 3,4, and 5 of the decree (those articles proclaiming petroleum " mines" situated on private lands of any kind to be the property of the nation) and declared that such can only be the case when lands adjudicated from the public domain since October 28, 1874, are in question. The court decided that those articles of the decree violated article 120 of the constitution and also article 41 of legislative act No. 3 of 1910, and it recommended legislation by the Congress that would resolve these difficulties and settle all doubts regarding oil-land rights, titles, etc. A translation of this decision of the Supreme Court of Colombia and also one of the executive decree of June 20, 1919, have been sub- mitted in connection with this report and may be examined by in- terested persons upon application to the Latin American Division, Bureau of Foreign and Domestic Commerce, Washington. This decision by the Supreme Court of Justice of Colombia was followed by the legislative act No. 120 of December 30, 1919, 1 which, while making the provisions for exploration and exploitation somewhat more liberal and protecting the subsoil rights of the owners of lands adjudicated prior to the land laws effective October 28, 1874, still makes effective Government control of oil activity throughput the country and fixes a high rate of taxation on the gross production of oil wells and properties found in the country. Several features of this new and latest law governing petroleum exploitation in Colombia have given rise to criticism, chief among these being the fact that, on forfeiture of an exploitation contract, all property within the concession (ipso facto) becomes the property of the Kepublic ; the high rate of taxation on the gross product (a ground tax also is provided for) ; the onerous technical requirements providing for delivery to the Ministry of Public Works of copies of all geological, technical, and topographical reports and maps; the short time limit of the leases, fixed at only 20 years, whereas it will take from two to four years to develop any oil property in the > Translated copy submitted; available in Latin American Division. PETROLEUM. 135 country (not to mention the time required for the construction of pipe lines and other export facilities) ; the right of the Government to cancel contracts almost at will; and the export tax of 6, 4, and 2 per cent of the gross product in addition to the exploitation tax of 10, 8, and 6 per cent of the gross, according to the zones in which the oil is found. It would appear as if the doctrine of Government control had been sustained by the Congress, the new law of December 30, 1919, being really an amplification of the decree of June 20, 1919, above described with, however, provisions for the protec- tion of the subsoil rights of property owners whose titles antedate the land laws effective October 28, 1874, who are left at liberty to* negotiate their lands for the exploitation of oil, subject to the super- vision of the National Government according to the provisions of this later law. In the meantime, in July, 1919, the Ministry of Public Works published the conditions under which the Government would consent to the transfer of the De Mares concession to the Tropical Oil Co., which had developed the property, as has been explained. The important points of these conditions were as follows: First, the area of the concession, originally containing some 1,300,000 acres (also estimated at as high as 3,000,000 acres), was reduced to 100,000 hectares, or approximately 247,000 acres. Second, the company does not acquire any real right to petroleum deposits or to Government lands, operating virtually under a lease. Third, the Government fixes the minimum tax on the gross product at 10 ; per cent but does not fix what the maximum rate shall be (this action being similar to that in the new and later law of Dec. 30, 1919). Fourth, the company is obligated to erect a refinery of sufficient capacity to supply the country with petroleum products, within two years' time, and to sell such products at New York prices. Fifth, the company renounces all right to Government lands covered by the original concession of 1905. Sixth, tne company renounces all right to diplomatic reclamation and binds itself to aoide by all decisions of the Colombian courts. SUMMARY OF PETROLEUM PROSPECTS. In conclusion, in summing up the prospects for the development of large production of high-grade petroleum in Colombia, it may be said that these prospects are very good indeed and that the country undoubtedly possesses the source of much national wealth hi its oil resources. However, there exists an exaggerated idea among the Colombian people regarding the actual value of the natural resources in general and that of petroleum in particular, and there is little knowledge of the magnitude of such undertakings or of the very great expense and risk involved. It would seem that the people themselves expect too much in the way of national wealth from their oil bodies. Good producing wells will doubtless be brought in; but, as in Mexico, Peru, and other oil-producing countries, oil will not be found every- where and there will be several good producing districts while a great deal of time and money will oe spent in other places that will not fulfill the hopes of the nation or of the persons directly concerned. 136 COLOMBIA: A COMMERCIAL AND ixnrsn;i.\i. IFAXDBOOK. On account of the adverse conditions of climate, topography, and lack of transportation facilities, oil work in Colombia takes from twice to four times as long and costs from twice to four times as much as in more favored regions such as Texas or theTampico fields of Mexico. The exploitation of the petroleum in the fiems of the interior is fraught with many difficulties, principally that of trans- portation. The Magdalena Kiver offers a slow and expensive route, at best, and is extremely difficult throughout five or six months of the year during the season of low water (November to April) ; and the most serious transport troubles really begin after the river is left behind. OPERATING COSTS AND LABOR CONDITIONS. All skilled labor, with the possible exception of donkey-boiler men (in some cases available from the men already trained in the river steamer service) , must, at first, be imported from the United States. This means the regular drillers, tool men, and others, who will receive the United States scale, plus medical attendance free, plus transporta- tion to and from the country under at least a one-year contract. This imported labor will not and can not be nearly as efficient in the Tropics as in colder climates. Natives can be used for packers, canoe men, machete and ax men in cutting trails and building roads, etc. ; and a few fairly good car- penters, blacksmiths, and similar workmen could be contracted for in the country. Such men do not know rough wood construction work, however, and the blacksmiths could not be expected to sharpen tools, etc., until trained. This native skilled labor is slo^ ? and requires a great deal of supervision. Medellin would be the best source of supply of this class of labor, but high wages would need to be offered to get these men away from their homes and into the hot country (whicn they fear, with reason) . The only way in which the common labor can be handled at all is by the "tarea" system, or piecework basis, and this should be em- ployed whenever possible. The Colombians are not as good mule packers as the Mexicans, and their equipment is not nearly so good as the famous Mexican leather "aparrejo," since adopted by the United States Army for use in mountain mule transport. Common laborers in the Caribbean district get, in the country dis- tricts, an average of $0.00 per day for rough machete and ax work, etc. In the towns of Barranquilla and Cartagena where work is to be had handling cargoes, the average wage is now as high as $1.20 per day for this class of labor. Usually sufficient seasonal labor can be recruited from near-by towns for this class of work around oil wells. Packers receive about the same, and head packers and good men are paid as high as $1 to $1.20 per day, in addition to their food allowance, when on the trail, away from their homes. Native carpenters, blacksmiths, masons, and similar workmen can be contracted for at about $75 per month and expenses of transpor- tation, lodging, etc., when away from their home towns. It should be borne in mind, however, that the high cost of living has reached Colombia and that wages everywhere in the country and in all lines of work have been increased by at least 60 per cent during 1918 and 1919, except in the Departments of Cundinamarca and Boyaca, where there is lound a very large number of people who earn, in the fields, only $0.30 per day, but who can not be persuaded PETROLEUM. 137 to go down into the hot country for any wages, however large they may appear to them. It will take any new drilling outfit some time to collect a fairly efficient crew of natives for all classes of work necessary, and it is to be expected that unusually high wages (for Colombia) will have to be paid to get the men to go into the jungles of the interior and stay on the job for any length of time. One thing is favoraole. These men are not exacting as to their accommodations, shelter being all they require; feeding arrange- ments have to be provided only for the foreign drill crews, since the Colombians usually have their women along with them. In fact, the peons, or common laborers, expect to put up their own shelters, made of the ever-present bamboo poles and palm thatched, etc. This they do in a few hours, using only the machete for the purpose. This is the only tool they know how to use and all they need in the way of equipment. Supplies of beef (on the hoof), corn, yucca, etc., can nearly always be obtained if the camp is near one of the many rivers or small villages. If it is in the interior jungles, these supplies and everything else would have to be packed in from such supply points. Each camp should be supplied with a good medical outfit and spe- cial equipment to combat malarial fevers, dysentery, etc. A good doc- tor (perhaps one experienced at Panama, where special work has long been done to combat malaria) is the best asset a camp can have, and his services will go a long way toward the efficiency of the work and the success of the enterprise. In view of the past experiences of dredging, mining, lumber, and oil camps in Colombia, there can be no doubt about the necessity and value of a good doctor with the camp. CATTLE RAISING. OF GENERAL CONDITIONS. 9 Colombia is not a cattle country in the sense the term is applied to the western part of the United States, parts of Argentina, Uru- guay, and the southern part of Brazil. Though there are a number of important cattle-raising districts, there is, with possibly two excep- tions, no "open range" such as existed in the American West two decades ago. The principal exceptions are (1) the great "llanos" of the Orinoco watershed lying to the east of the inhabited portion of the country and (2) the plains of the Sogamoso in the Department of Boyaca, north of Bogota, which form the northern half of the great table-land of the Eastern Andes. Another region, across the low ranges of the Eastern Cordillera southeast of the city of Neiva (capital of the Department of Huila) , lying near the headwaters of the Manza- nares and Guaviare Rivers but composed only of the high benches or series of plateaus on the eastern side of the range, is beginning to attract attention as a new cattle-raising section and is receiving the benefit of capital and immigration from Bogota and Medellin. These interests are being attracted by the steadily increasing prices and demand for beef cattle in Colombia. Prices have doubled during the last two years. In the beginning of 1918 beef steers four and five years old were worth only $40 each on the hoof from the Sinu district (where the feed is artificially planted Para grass) , while at the present writing, early in 1920, they were reported as selling for an average price of $80 per head, delivered on tne property. This increase in the value of cattle has greatly stimulated the industry of cattle raising. More capital is being attracted to invest in the business; new lands are being cleared and fenced in the more favored regions of the country; and it is safe to predict that within 10 years the total number of head of beef stock will be doubled. Cattle raising has always been one of the principal industries of Colombia and, from colonial times, one of the chief and most stable sources of national wealth. But the cattle have been principally for domestic consumption, though a certain number have been exported first to Cuba and more recently to the Canal Zone at Panama. For several years past the commissary department of the Panama Canal has been taking an average of 40,000 head per year from the Sinu River district in Bolivar, and during 1919 contracts for this district alone amounted to 100,000 head, to be delivered during that year and up to March, 1920. During the colonial period there was a great surplus of land and a lack of labor in many districts of the country, and the natural development was in cattle, since this required less capital and skilled labor, was more easily transported to market (on the hoof), and found a steadier local demancf than other products. The same con- ditions apply to a great extent to-day. On the Caribbean coast there are great areas of excellent level lands of alluvial formation 138 CATTLE RAISING. 139 which are said to rival those of Cuba for sugar-cane, tobacco, rice, etc., but which are planted in Para grass and devoted to cattle rais- ing on account of the scarcity and poor quality of available labor and the lack of large capital in the country with which to engage in the more costly agricultural developments. Taken as a whole, cattle raising may be said, in view of its wide distribution, the num- ber of head actually in the country, and their value as compared with other products, to form the chief wealth of Colombia^outrank- ing coffee as a national resource, though coffee is the chief export on which the country relies for its basis of exchange in trade for imports of foreign manufactured merchandise. In order to convey some idea of the value of the cattle industry, it may be stated that in the Department of Boyaca alone, as lon ago as 1908, there were 862,550 head of beef cattle. They were valued, at that time, at only a trifle more than $8,000,000, or about $10 per head, but would now be worth in the open market, on the hoof -at least an average price of $30 per head. In addition, one must consider the large cattle-raising districts of the Sinu River in Bolivar on the Caribbean coast, the Cauca River Valley in western Colombia, the great Magdalena River Valley, the "llanos" east of the Eastern Cordillera, and the region of the Patia River in Narino, south of the Cauca district all of which produce a surplus of cattle, which are sent into other more populous regions of tne country at constantly increasing prices.. It is worth noting also that statistical returns for cattle in Colombia are much below the actual number of head, on account of the fear of taxation, apprehension concerning possible disturbances, and the difficulties encountered in obtaining accurate returns in this broken and undeveloped country. On account of the varying conditions in the different regions of Colombia, the details and figures with regard to cattle-raising actjv- ities are given mainly in the separate district reports beginning on page 185. VARIED CHARACTER OF THE INDUSTRY. Because of the topography of Colombia, the lands devoted to cattle raising are of varied character, but they may be roughly divided into two main groups the level valley or plateau lands and the foot- hill lands. The first division may be roughly subdivided into (1) the lands of the coast (or rather river valleys accessible' to the coast, such as that of the Sinu and the interior of the great Magdalena Valley) , (2) the high interior plateaus, such as that of Bogota, which takes in the plains of Boyaca, and (3) the great undeveloped and very sparsely inhabited "llanos" or "pampas of the Orinoco water- shed east of the Eastern Cordillera, which have practically no means of access to markets and from which it would be impossible to export cattle in any form under present conditions. Conditions in the first-named subdivision are, in general, those of the Tropics. The lands consist of the level valley lands lying along the Rivers Sinu, Magdalena, Cauca, and Patia, and similar less devel- oped districts of the mterior, such as the region to the south of the Sierra Nevada near the Cesar River. The Cauca Valley is not so tropical as the other valleys mentioned, being situated in the interior between the low range of the Western Cordillera and the great Central Cordillera and having an average elevation above sea level of 3,000 140 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. feet. However, conditions of cattle raising along the Caiiea are very similar to those in the more tropical regions named. In these districts, the lands were originally covered with a heavy tropical growth and hardwood timber and had to be cleared and burned off. It was necessary to plant artificial grass, such as the Para, guinea, etc., and to fence the pastures. Ticks and diseases are rife, and cattle have to be treated with serums for the prevention of disease. In the second subdivision that of the high interior plateaus, such as the table-land of Bogota, the smaller table-lands of Popayan and Pasto, and the new region spoken of as lying east of Neiva the climate is much cooler, the elevation being between 7,000 and 9,000 feet, with a more open country covered with a good short grass of excellent feed qualities. In these highlands imported breed stock thrive, and it is around Bogota that the most attention has been paid to breeding and improving live stock of all kinds found there. However, these more suitable cattle-raising sections do not export the products of the in- dustry the distance and transportation costs to the coast being too great. They are dependent upon the local markets. In the third subdivision, the "llanos," conditions are again differ- ent. The great plains slope gently down from the Eastern Cor- dillera toward the low and very hot regions traversed by the many shallow rivers tributary to the Orinoco. Here are hundreds of thou- sands of acres of level land, the best of which, from the standpoint of cattle raising, is said to be the area around the headwaters of the Casanare River, a tributary of the Meta, which in turn flows into the Orinoco. The Casanare is the part of this great region most devel- oped in cattle at the present time, and there are said to be about 300,000 head there. Some ranches possess as many as 20,000 head. There are, in all, about 200 ranches running cattle in the region, but some of them have only a few hundred head and a few horses. The difficulty with these great plains seems to be their isolation and the general inaccessibility of markets. Cattle can not be driven even into the Bogota market, because the distance is too great and the trip over the range is too hard for them to make. Only hides find their way over the range and down via Tunja into the Bogota market for eventual export via the Magdalena. It should oe noted that there is a distinction between the words "llanos" ancf "selvas," the former being used to designate the open treeless plains of the northern portion, belonging to the Orinoco watershed, and the latter to designate the great wooded plains farther south, which drain into the Amazon. Many wonderful descriptions of these "llanos" may be heard and read ; some describe them as an undeveloped region of limitless wealth, while others state that their fertility and value have been greatly overrated. Certainly, to-day, they can not be recognized as an economic factor in the general wealth of Colombia, since they are too distant and inaccessible, and their possible productivity is lost to the country and to the world. There is natural grass long grass in abundance, but the opinion has been given that this grass is not very good cattle feed. However, great herds could undoubtedly be raised on these vast plains, and in the course of many generations this may come to pass through eco- nomic necessity as cattle lands are put under cultivation in the united CATTLE RAISING. 141 States, Argentina, and elsewhere. But there are many present-day difficulties and disadvantages, chief among these being (1) the dis- tance from the ocean and the fact that the 00 1916 1 153 000 1907 541,300 1912 888,800 1917 (estimated) 1 IN:; ixm 1908 577, 900 1913. 972 IX Ml Iflls. i ! 1909 .. f>73 :i">(i 1914 '.K-t.lXMI 1910 543 000 1915 1 074 600 NOTE. The coffee exported during 1919 was estimated to be at least 1,300,000 sacks. The crop was reported to be at least 25 per cent heavier than that of any previous year, and new plantations set out in 1914 and 1915 came into full bearing in the 1919 season. QUALITY OF COLOMBIAN COFFEE. Colombian coffee is characterized by its heavy body and delicious aroma and flavor. On account of the heavy body it is usually blended with other lighter grades from either Venezuela or Central America. It is also much used as a blend for the still heavier Bra- zilian grades, and this fact is well known to coffee buyers and specu- lators, who take advantage of its better quality. A movement has been initiated among the larger of the Colombian coffee exporters, who are acquainted with the New York market, to put Colombian coffee on the market in the United States as a dis- tinctive brand, the idea being to create a demand and thereby better the wholesale prices of the Colombian product. The Hispano-Pan American Association investigated coffee mar- keting conditions in the United States in 1918, with the result that a scheme was presented to establish cooperative warehouses for Colom- bian coffee in the United States, where roasters would be provided and provision made for advertising in an endeavor to educate the people to a preference for Colombian coffee. Among the Latin American nations Colombia occupies second place after Brazil as a coffee-producing country. REGIONS OF PRODUCTION GRADES. PRICES. SHIPMENTS, ETC. Prior to the European war about 70 per cent of Colombia's coffee exports came to the united States, while during the war and in 1919 more than 90 per cent came to this country. Roughly, the value of AGRICULTURE. 169 the coffee exported in 1913 was 18,300,000 Colombian dollars and in 1914 16,098,000 dollars. New York alone received in 1914 as many as 700,000 sacks of Colombian coffee, not counting ''Cucutas" pro- duced in the region of Cucuta in Norte de Santander and exported via Lake Maracaibo in Venezuela. To show the principal regions of coffee production and their relative standing, the following is given : Production, season rf 1913-14- Sacks of T )epartraente : 138 pounds. Antioquia 185, 000 Cundinamarca 200, 000 Caldas 199,000 Norte de Santander 200, 000 Santander (Sur) , 105, 000 Cauca 30, 000 El Valle 50,000 Tolima 60, 000 Magdalena 40, 000 Total 1 , 060, OCO Shipments of coffee from the various regions of the coffee-producing Departments are routed approximately as follows: From the sections of Antioquia south and southwest of Medellin, coffee is routed via the railway to Puerto Berrio and thence by the Magdalena River to Barranquilla and Cartagena for export. Some of the coffee grown in the extreme southern part of Antioquia finds its way out to seaboard via Manizales and the cableway down to Mari- quita on the Dorada Extension Railway. Also, coffee produced farther to the west in this extreme southern region moves by pack train down to the Cauca River at Cartago, thence by steamer up the Cauca River to Cali, and is thence exported via the railway to Buena- ventura. All coffee produced in Cundinamarca, on the slopes of the table- land toward the Magdalena River, moves down to the river at Girardot for export via the Magdalena River route. Upon the com- pletion of the Pacific Railway across the Quindio Pass via Ibague, Armenia, and the Cauca Valley to Palmira, this coffee, and other export products of this entire region, will move out through Buena- ventura. These statements apply also to the production of the Department of Tolima. Caldas exports principally over the range by pack animal to the present end of the cableway (see p. 263), thence down to the Dorada Extension Railway at Manquita,and thence down the Lower Mag- dalena for export through either Barranquilla or Cartagena. Coffee produced on the western side of the range of the Central Andes has two trading centers in Caldas, one being Manizales for the most northern section of the Department and the other Armenia in the southern section; the latter is the center of greatest production in this Department and is situated in the heart of the famous Quindio coffee district. Of late an increasing amount of this coffee is being diverted from the old route over the range (to the river at Girardot) to the easier and shorter Pacific route via Cali and Buenaventura, 1 Exported chiefly through Lake Maracaibo in Venezuela and graded as "Cucutas." 170 COLOMBIA: A COMMERCIAL AND TNOUSTTMAL HANDBOOK. pack trains coming down off the range at or near Zarzal on the Cauca River and even moving in as far as Palmira overland. Santander ships its coffee out via the Lehrija River to the Mavda- lena and thence to Barranquilla or Cartagena for export. Cauca, of which Cali is the trading center, and also El Valle ship via Buenaventura. Magdalena exports via the seaport of Santa Marta, this coffee being grown on the northern slopes of the Sierra Nevada, where production is only restricted by the lack of sufficient labor supply. The table of production by Departments given on page 1 69 is for the season 1913-14 and will serve as an aid in forming some idea of the proportion from each district. It should be remembered that the crop of 1918-19 was increased by 25 per cent and that Antioquia and Caldas (especially the latter) led in this increase, though more attention has been given to proper care and cultivation in Cundina- marca than anywhere else in the country. The grades are named according to the regions of production. "Medellin" is the Antioquia grade, this designation also covering a great deal of the Caldas coffee. "Quindio" takes in El Valle, Tolima, and the southern part of Caldas, while the brand "Cundina- inarca" covers the production from the Department of that name. "Medellin" ordinarily commands the highest prices and is generally regarded as of slightly superior grade, but this is rather the result, of the better business methods of the Antioquians in pushing their products than of any exceptional excellence of quality. Three con- ditions are necessary for good coffee first, elevation, the plant being at its best at about 6,500 feet above sea level; second, moisture; and third, a certain amount of volcanic-ash impregnation in the soil. A great deal of the "Quindio" coffee is bought up by exporters of Medellin and shipped under the "Medellin brand. Also, many Colombian firms with offices in New York buy up large amounts of the crops and market them under their own brands, the total repre- senting a collection from several main districts but about the same in quality and grade. Prior to the war, prices in New York for Colombian coffee lluctua t ed between 12 and 14 cents per pound, with the latter price as a high average, although as high as 16 cents had been paid and was con- sidered a very high price. Immediately following the signing of the armistice in November, 1918, and in view of the expectation of immediate renewal of ocean freight service to Europe, the coffee market reacted in New York and became extremely speculative in character, most of the buying being for reexport to Europe, where there was known to be a great shortage of coffee and a strong demand at very favorable prices. Advances of as much as 4 cents per pound were registered in one single day, and, from then on until the close of the 1919 season in August, coffee prices steadily advanced to the extraordinarily high level of 31$ cents in New York for the Colombian grades "Medellin and "Qumdio," with 28$ cents for "Cundina- marca" and "Santander." As the harvest was late, because of the shortage of labor for picking in most districts (especially Caldas and the Quindio), and the bad condition of the river for export cargoes, Colombia reaped almost full benefit from the high prices being paid in New York, and disposed of its crop at an average of about 26 cents per pound, considering both early and late consignments. If one AGRICULTURE. 171 takes the estimated yield of 1,300,000 sacks (which is probably a little low, if anything) at the average estimated price in New York of 26 cents per pound, the total value of the 1919 crop may be esti- mated at about $45,630,000, whereas the previous high figure, that of 1913, was approximately $18,300,000. Deducting freight charges, insurance, commissions, etc., it is estimated that the 1919 coffee crop produced a gross valuation for Colombia of at least $40,000,000, and it was precisely this influx of new wealth that caused the com- mercial reaction of the entire country in May, June, July, and August, 1919, and sent the importers (who had been patiently waiting for lower prices after the war) hurrying to the United States to purchase badly needed stocks of goods. Price was no longer an object, and the interior demanded merchandise at any prices. This same condition also resulted in the importation of more than $9,000,000 of American gold coin into Colombia, to be minted into Colombian coin or, subsequently, to circulate freely in the country as legal tender. The general condition of prosperity brought about such heavy and active buying of goods in the United States that New York exchange which was as low as .83 in January, February, and March of 1919 instead of being still further discounted on account qf the large balance of the coffee shipments ., reacted and went up almost to par, or .98^, .98f, and even .99^ This plainly indicated that the heavy buying of American products had wiped out the trade balance of $13,000,000 piled up by Colombia against the United States during the war and had further taken care of the heavy increase in this balance that the coffee situation would have involved if it had not been equalized by purchases of return merchandise in the United States. It had been feared at one tune that this coffee situation would mean a trade balance of some $50,000,000, bringing American dollar exchange to .50 in Colombia, but arguments in this connection did not foresee (1) the stimulation of buying in the United States brought about by the very prosperity of the country resulting from the coffee prices and heavy crop; (2) the fact that Europe, in general, was not yet in a position to renew exporting on a large scale ; and (3) the fact that prices in the United States for export goods were as high as, or even higher than, they were during the war. These con- ditions went a long way toward taking care of the large balance in t e f-\ \ t & & lavor of Colombia. Another factor making for high prices for coffee in 1919 was the fact that, while during the war the United States, the largest coffee- consuming country of the world, held large surplus stocks of coffee, these were immediately drawn upon for reexport after the armistice and the country was left with about one-hall of its normal stock of coffee of all grades. In June, 1919, there were estimated to be only 1,172,000 sacks of Brazilian coffee in the United States and only 385,000 sacks of Colombian and other "soft" (mild) grades, as compared with 2,437,000 sacks of Brazil and 780,000 of "milds" at the same time the preceding year or less than half the normal stocks and a very small quantity in relation to the consumption demands of the United States alone. 172 COLOMBIA; A COMMERCIAL AND INDUSTRIAL HANDBOOK. INCREASED BENEFIT TO SMALL PKODUCERS. Before the war the coffee trade was in the hands of the larger ex- porters of the country, who were also the larger importing merchants. They made loans to their clients on the security of future crops. Sued loan-; were usually represented by small stocks of merchandise and supplies, together with some cash. These accounts were taken up at trie end of the picking season with coffee delivered to I In- merchant, who had the beans cleaned in the local coffer-cleaning plants, sacked, and shipped for export for his own account, the small planter really receiving a, small margin of the profit. During the speculative period in 1919, which was induced by the high prices in New York for Colombian coffee, there was very active competition in coffee buying, intensified by the activity of a large American export and import concern, with the result that the producer re- ceived a much larger margin of profit for his coffee, and more actual cash than ever before. As an example, it may be mentioned that on July 1, 1918, "per- gamino" coffee C'pergamino" is the bean with the inner shell or parchment-like skin still remaining) was quoted in Girardot at 17 Colombian dollars (1 dollar = $0.9733 United States currency) per "carga" of 125 kilos, or 275.6 pounds, while the "cleaned" (that is, the snelled bean ready for export) was quoted at 22.50 dollars per carga. In July, 1919, "pergamino" was quoted in Girardot, deliv- ered at cleaning plant, at 50 dollars per carga and shelled coffee at 62 dollars per carga, with still higher prices offering in Medellin on account of the better grading and lower freight charges down the river to port of export. This situation has meant a revolution in the coffee trade and industry of Colombia. Instead of coming into "town" (the nearest large commercial center) about twice a year namely, at the end of the November-December picking season and of the April-May-June picking season to solicit goods and a small loan from his dealer, the small producer has been sought out for his product with cash offers. He has escaped from the prevailing high interest rates charged him and has been able to buy where and how it has best suited his inter- ests. He is no longer controlled by the local merchants and has money in hand with which to enlarge his plantations, purchase better equipment, and improve his living conditions. To understand fully the tar-reaching effect of this situation, it should be borne in mind that, with the exception of the plantations of Cundinamarca, nearly all the coffee in the country is produced on small plantations owned and worked by individual planters of the poorer class of the people. Importing merchants of the coast cities of Barranquilla and Car- tagena are Targe buyers of coffee in the interior, which they export for their own account, investing their surplus every year in coffee and hides for export, though the Syrians seem to prefer the business of precious metals (such as gold and platinum) to coffee or other lower-priced products. AMERICAN PURCHASES OF COLOMBIAN COFFEE. Imports of Colombian coffee into the United States have been as follows during four recent years, according to official American figures : AGRICULTURE. 173 Years. Pounds. Value. Years. Pounds. Value. Fiscal year 1916 109 363 456 $13, 519, 545 Calendar year 1918. 118,909,462 $14,767,367 Fiscal year 1917 . . 150,591,659 17, 971, 874 Calendar year 1919 150,483,853 30,425,162 By a comparison of the above table with the total exports of Colombian coffee, shown on page 168, one may easily estimate the proportion taken by the United States. Prior to the war the United States took about 70 per cent of Colombia's coffee crop, the remain- der being about equally divided between England, France, and Germany. CONDITIONS DETERMINING PROSPERITY OF INDUSTRY. industry of Colom- ee" in the accounts For detailed descriptions of the coffee-plantim bia the reader is referred to the sections on "Cor of the Medellin, Manizales, Bogota, and Cali districts (see p. 1 85). In these sections there are discussions of the relative importance of coffee in each district, methods of planting, life of the trees, produc- tion, labor conditions, methods of trade in coffee, future possibilities, etc. The coffee production of Colombia has doubled since 1906, even under generally adverse conditions of the markets and lack of trans- portation facilities in the interior of the country. The great stimulus given the industry during 1919 has had the effect of increasing coffee-tree planting on a very large scale, and it may be predicted that, given fairly good market conditions for the next three or four years to sustain the existing attitude of optimism, Colombia's coffee production will be increased by at least 50 per cent by the end of the next five years, when the new plantings begin to bear in full crop. This increased production will be greatly assisted by the completion of the various transportation lines now under construction, such as the cableway into Manizales from the Magdalena Valley, the Tolima Railway to Ibague, the connecting line between Beltran and Ibague to avoid the Upper River, and, last but not least, the completion of the Pacific Railway over the Central Range on the Quindio Pass, where it will pass through the largest and best coffee-producing section of the entire country. Two other railways are also of im- portance to the coffee industry the Caldas Railway from Puerto Caldas (on the Cauca River, just above Cartago) to Manizales, and the southern branch of the Pacific Railway from Cali to Popayan. The tendency is for coffee to move out by the shorter and cheaper Pacific route when these new lines are completed, and Buenaventura will then become the principal coffee-shipping point of Colombia instead of the Atlantic seaports. The routings of coffee shipments from the various producing sec- tions of the country have been indicated on page 169. In 1917 the seaport of Santa Marta exported 526,799 kilos (kilo =-2. 2046 pounds), valued at 139,050 Colombian dollars. In 1916 Barranquilla exported 12,558,884 dollars' worth, and in 1917 the value was 8,828,867 dollars. In 1916 Cartagena shipped 23,140,792 pounds, valued at 2,479,890 dollars, while in 1917 the amount was 27,680,369 pounds and the value 3,418,398 dollars. Buenaventura in 1917 exported 11,087,606 kilos, valued at 2,634,274 dollars. Tumaco shipped a much smaller amount 174 COLOMBIA: A COMMERCIAL AND INMU'STIJIAI. IIAM>I;OOK. Prior to the war Great Britain took about one-fourth of the coM'ee exported through Barranquilla and Cartagena, Germany receiving a much smaller quantity. The coffee industry needs little labor (except unskilled, in picking time) and small capital, since coffee grows on the mountain slopes that are fit for nothing else. It requires little care or cultivation other than the chopping out of the larger weeds and the provision of shade tre-2s. The larger trees of natural growth are left for this latter purpose, and some of the coffee shrubs arc shaded with plan- tains while they are young. The greatest difliculty encountered is that of the lack of good means of cheap and rapid transportation to market -that is, to the seaports for export. It is true that the Magdalena River steamer companies make every possible provision for taking care of the coffee harvest and allow the lowest possible rates to the large shippers (because coffee forms their largest tonnage and principal source of freight revenue) and that the Colombian Railway & Navigation Co. gives the same down-river export rate on coffee from up-river points to either Puerto Colombia or Cartagena, notwithstanding the longer and more costly rail haul from Calamar to Cartagena. out the condition of the river precludes any improve- ment, the stream being at its driest stage just as the coffee harvest starts to move down to the river for exportation through the Atlantic ports.. The Lower River is bad from December until April and not really good for lar^e boats until late in June, as a general rule. Dur- ing the unfavorable periods much valuable import freight has col- lected at ports of importation and is carried up the river as soon as conditions permit. In the meantime, coffee is collecting all along the river at points of river shipment, where there are not enough storehouses and no other protection, the coffee very often receiving weather damage as a result of being left out in the open. The result is a general condition of confusion at all river ports. The large shippers have the best of it because they have preferential contracts on a tonnage basis for their exports of coffee, and very often the smaller shippers are left behind in the race to markets and the higher prices. In 1919 some coffee had been on the river, or on its way down the river, or at port of export, for six months, and the advantage of the high prices obtaining during the season was partly lost to the owners. To prevent these losses and this congestion at river points, several of the largest coffee buyers in Colombia (Pedro A. Lopez y Cia. and Alejandro Angel y Cia.) have purchased their own steamers with which to handle their own exports of coffee to better advantage. The best solution so far has been the idea of the extension of the Dorada Railway from Beltran to Girardot (Ibague). I'y this plan the Upper River will be avoided, shipments can continue all the year round, and a much larger tonnage can be carried in a given length of time than by the Upper River steamers. This line is now (1920) under contract with Pedro A. Lopez y Cia. and is to be com- pleted within four years' tune. The completion of the Pacific Kail- way over the Quindio Pass will do more than anything else to relieve the situation. AGRICULTURE. 175 MARKET FOR AGRICULTURAL IMPLEMENTS AND MACHINERY. GENERAL METHODS OF CONDUCTING AGRICULTURAL OPERATIONS. With the exception of the wheat lands of the table-land of Bogota, the two large sugar estates mentioned, and a few individual efforts in modern agriculture, there is, in general, little cultivation of the soil in Colombia. The only lands on which work is done to any extent by hand (other than the universal process of chopping out the larger weeds with the machete) are those of the small sugar-cane patches and the tobacco patches. In these a large square hoe is used for weeding and cultivation, but even this work is generally performed in a very lax manner, and Colombian farms do not pre- sent the orderly, clean-cut appearance seen in parts of Europe and in the United States. In the Department of Antioquia, throughout the small valleys of the interior along the river bottoms, are many small cane patches which are well cared for and cultivated with the hoe, but these cane patches have been worked for many years. Throughout the coast regions and in the Magdalena Valley and other valleys of the interior, there is little attempt at cultivation or the use of modern agricultural implements or machinery. The principal field crops of corn and cotton are handled in the following manner: The land, if new, is first cleared of the underbrush with the machete and then the larger trees are cut down at waist height with the ax. This work is done during the dry season, and the dry brush and other growths are burned off just before the rains begin leaving the land encumbered with an assortment of stumps, partly charred trunks of hardwood trees, etc., and incapable of being plowed in any case. The burning over kills the seeds of all weeds, as a general thing, and the corn or cotton seed is planted in holes dug with a sharp stick or iron bar at the beginning of the rains. During the growth of the plants nothing further is done, with the exception of periodically chopping out the larger weeds with the machete. Corn is harvested in the ear, with the husk usually left on as a pro- tection against the weevil, and in this form is transported to market in canoes or on burros or mules. On account of the weevil, corn, which is an important staple of the people, can not be stored in bins and there are no elevators equipped with modern chemical apparatus in which the insects could be destroyed and the grain held in quantity. This statement also applies to the other staple, beans. Throughout the high and cold table-land of Bogota, and also that of Pas to, there are few insect pests and grain can be stored as is usual in similar climates. The destruction caused by the black weevil throughout the hot country retards more than anything else the development of agri- culture on a larger scale, nearly all planting now being done by small individual holders, who in many cases manage to eke out a bare existence. On the west coast of Mexico the problem has been solved by the use of small "elevators" or cheaply constructed grain bins, built as air-tight as possible and equipped with a Kipp's gener- ator making carbon bisulphide gas, with which the shelled grain is periodically treated to destroy the weevil. An equipment of this kind, if not too expensive, would meet with a rather large demand throughout the hot country of Colombia, if properly introduced, and would serve a very good purpose in that region. 176 COLOMBIA: A COMMKHCIAL AND INDUSTRIAL HANDBOOK. Lands thus cleared are planted for three or four consecutive seasons, then allowed to lie fallow and grow up in weeds iind under- growth again for a few years, and then again cleared for phmting. Fertilization and irrigation are generally unknown, though plans jire being made to introduce fertilisation into the older sugar fields of Bolivar and the wheat lands of Bogota. The difficulty in the latter region would be the high cost of transporting fertilizers from the port of entry to the interior. TOOLS AND IMPLEMENTS EMPLOYED. The universal tool in Colombia is the machete, which is always carried by the people of the country districts. With the machete they clear their land, build their huts, and cultivate their crops. In many parts of the tropical and semitropical regions of the country it is impossible to travel the forest trails without the machete for clearing away the brush, vines, etc., which, in a few days, again partly obstruct these paths. The machete is used in two forms. The larger, heavy, round- pointed blade with a horn or bone handle, and with the greatest width of blade at about two-thirds of the length from the handle, is the one used for brush work, etc. Then there 4 is the smaller machete of the same general shape but of one-half (or less) the size of the former, which is used for lighter work and is called a "banana knife" on account of its universal use in the banana plantations for cutting bananas. One well-known American brand is the best known and liked throughout Colombia, though there were formerly several popular German makes on the market. The machete out- ranks all other agricultural implements in volume of sales. In Antioquia no man of the middle or lower classes is without his "peinilla" (in its leather sheath), as the "banana knife" is called tnere. Brush-hooks are also coming into general use for heavy brush work. These are not wanted with the imported wooden handles, as the Colombians make their own out of native hardwoods in the field. The axes used and best liked are those of the long-bladed, wide- eyed variety, with heavy beveled edge suitable for hardwoods; these also take a straight wood handle made by the user in the field. The natives do not know the use of the slender curved ax handles and manage to break them as fast as they can be put in. Workmen engaged in clearing are given the ax head and are expected to make their handles to their own liking. The ordinary fine- bladed, light ax used in northern countries for pine, fir, etc., is useless for hardwoods and soon breaks up. For tobacco and sugar-cane work there is used a heavy, broad, and square-bladed hoe taking a straight hardwood handle, also made by the natives. There are very few grindstones in the country outside of the few blacksmith shops. Machetes are sharpened by rubbing on a stone selected from the country rock for the purpose. Articles much in demand are small, narrow strips of fine steel used for shoeing axes, hoes, etc., and these are carried in stock by all hardware dealers. These dealers are also the importers of nearly AGRICULTURE. 177 all agricultural implements used in the country, though it is true that most of the large importers of general merchandise purchase large stocks of machetes for wholesaling in the interior to their clientele, as a standard article of commerce. These general im- porters carry barbed wire, staples, and machetes, for all of which there is a large and increasing demand especially for barbed wire for fencing. The average yearly imports of machinery of all kinds into Colombia total about $2,000,000, of which railway equipment forms about 50 per cent. Twenty-five per cent is industrial equipment, of which about half is textile machinery and 10 per cent mining ma- chinery. Ten per cent is agricultural machinery and 5 per cent electrical equipment and machinery. There is a good and increasing market for small and cheap coffee, rice, and sugar machinery, one of the largest items of importation being small "trapiches" for sugar grinding, operated by oxen or mule power. " La Estrella " foundry, of Medellin (see p. 235) , is turning out a very good line of coffee-cleaning machinery, cacao roasters, and sugar presses, which compete favorably with the imported articles and for which there is a very large demand. On account of the fact that the import duties are assessed on the gross weight of the package, the demand is for the lightest possible equipment and the most simple in construction and operation, on account of the general want of knowledge in the country of machinery care or adjustment and the lack of repair facilities. Plows are used only in the Bogota district, for wheat growing. The disk plow has become a general favorite in this region, the 14- inch size with ox draw being the type most used. The native mules are too light for heavy plow work, and oxen are always used. PROSPECTIVE MARKET FOR GASOLINE MOTORS AND EQUIPMENT. Now that high-grade petroleum has been developed in Colombia and a small refinery is being erected at Barranca Bermeja, on the Magdalena River, from which oil products will be distributed to the limit of the present transportation system of the country (see p. 129), it may be j^edicted that Colombia will soon offer a larger field for the sale of small gas engines for heavy work, marine work, small lighting plants, etc., throughout the country. Even during 1918 and 1919 several hundred lighting sets were sold in Colombia, as a result of just one visit by an agent from Panama. As regards tractors, etc., for farm work, a field is opening up in the region of Cartagena, where there are developments in sugar, rice, tobacco, and other crops. On account of the broken nature of the country and the consequent general lack of roads and means of communication, and also because of the cheaper and more depend- able labor in the interior (as around Bogota), tractors will be too expensive outside of the more accessible coast regions of the Carib- bean littoral. 2 2 See circular of Latin American Division published in Commerce Reports for June 10, 1919, covering the automobile, truck, and tractor markets of the West Indies. Central America, and the north coast of South America. 37558 21 12 178 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. COLOMBIAN IMPORTS OF AGRICULTURAL IMPLEMENTS AND MACHINERY. The following table, showing Colombian imports of agricultural implements and machinery, has been taken from the Colombian Government import returns for 1916: [Kilo-2.2046 pounds; Colombian dollar-$0.9733.] Kinds. Kilos. Value. Kinds. Kilos. Value. Plows 11,162 Colombian dollars. 2, 167 Cane cutters 987 Colombian dollart. 154 Tools (miscellaneous) 291,914 83,991 Fodder cutters 322 92 30 951 5 150 Tobacco cutters 563 458 Cart and wagon parts Wheel tires 1,639 191 233 42 Flour -mill machinery Trapiches and parts of 64,652 23,044 15, 105 4 887 10 041 1 698 Agricultural machinei y 448 433 88 509 Tools not specified 10,359 1 564 Cream separators . . . 91 ' 20 Insect destroyers 730 168 General machinery ... 438, 104 133 044 Brush hooks 76 65 Artesian-wel 1 eq ufpment . . 1,957 1,002 151,367 35.948 Gasoline motors. . . 12,462 5 236 Rice machinei y 239 135 Rakes. . 1,190 409 Cacao machinei y 1,076 525 Scythes 633 107 58, 650 18, 302 Drills 1,813 515 2,449 450 NOTE. The total of Group 5 in the Colombian returns, covering machinery and implement imports of all kinds, amounted to 3.007,869 kilos, valued at 830,622 dollars, in 1916. Only those items pertinent to agriculture are given in the above list. It should be remembered that 1916 was a war year when exports of hardware and iron and steel manufactures were restricted by the Allied nations. In 1917 the port of Barranquilla handled imports of agricultural im- plements to the amount of 484,959 Colombian dollars, of which 344,063 dollars came from the United States, 102,640 dollars from Great Britain, 4,556 dollars from France, 7,841 dollars from Spain, and 5,859 dollars from other countries. Machinery amounted to 204,210 dollars, of which 189,008 dollars' worth was purchased in the United States. Agricultural and mining tools and machinery imported through the racific port of Buenaventura during 1917 amounted to 190,862 kilos, valued at 69,990 Colombian dollars. Agricultural machinery and tools imported through Cartagena amounted to 324,724 Colombian dollars in 1915 and to 193,862 dollars in 1916. NECESSITY OF PROPER PACKING AND EXPLICIT INSTRUCTIONS. Packing should be as light as possible, consistent with the proper protection of contents. Machinery and metal articles intended for the interior should be waterproofed. When machinery such as tractors, gang plows, thrashing machinery, etc., is shipped "knocked down," detailed instructions should ac- company the shipment, in Spanish, for the assembling of these machines, and a full set of spare and replacement parts should ac- company the shipment in every case, since the loss of a bolt or the breakage of any small part may make it impossible to use the machine for that planting or harvesting season, or until the needed part can be obtained from New York, the nearest supply point. AGRICULTURE. 179 Detailed and explicit instructions for operation should be attached, in Spanish. Blue prints of complicated machinery should be furnished, with all lettering in Spanish. In 1919 there arrived at Cartagena a large shipment of American agricultural machinery, which included a steam tractor, gang plows, reapers, and a rice thrasher, all " knocked down." Not a single blue print of any of the machines accompanied the shipment, even in English; there were also no instructions or anything to show how the machines should be assembled, in either English or Spanish. Spanish would have been best, but with English the buyers could have brought in some English-speaking friend to translate the instructions for them. But, without instructions even in English, these people, who had never seen such machinery before (much less handled it) , had to go to work to get the parts together as best they could, puzzling each adjustment out by guesswork, com- bined with plenty of native ingenuity, and the job took months of time. What was said about the American factories that allowed machinery to be sent to Colombia in this condition, without instruc- tions for assembling it, was, to say the least, extremely uncompli- mentary to American export methods, and many comparisons were made with former machinery shipments received at Cartagena from Germany and the United Kingdom. The Colombians have long suffered in this respect at the hands of careless, thoughtless American exporters, who seem to think that there are as many trained and experienced mechanics in Colombia as there are in the United States. Exporters of all kinds of machinery to Colombia should take the trouble to inform themselves of the con- ditions obtaining in the district where the shipment is going and to help the purchasers in every way toward the successful operation of the equipment furnished them. If a machine does not work at all or operates badly because it is not properly assembled, the people of the district, who are watching the results of the pioneers with the new machines, are very likely to sav that the machine itself is no good and a failure, and thus future sales in that district are lost to the manufacturer or exporter on account of popular prejudice. DOMESTIC MANUFACTURING. STATISTICS OF INDUSTRIAL ENTERPRISES. At the close of 1915 there were, according to Colombian statistics, 121 manufacturing plants in Colombia, representing an investment of $12,406,000 United States currency: Establishments. N'uin- ber. Capital invested. Kshiblislmiriits. Num- ber. Capital Inverted. Textiles ai ii 1 thread 21 $3 530 000 Soap and candles. 18 J330 000 Sugar 2 2 000,000 Shoes 6 255*000 i >il '('lining. . . 1 i 200. noo Tanning extract 2 200,00:) Klectric light and power 5 1 086 000 Olass and classwarc 3 150 000 Flour mills . . . 780 000 Iron foundries 3 53 000 Matches . . ... 5 750 000 Carbonated beverages :; "IK) Chocolat P and candies s 515, 700 Distilled liquors 1 22,000 Cigars and cigarettes 8 428 000 Perfumery 1 10 000 Cement and artificial stone, til- 3 420 000 All others 16 205, 100 Beer and ice 5 433 000 Total 4 121 12 406 000 The above figures do not include several important plants now operating in Colombia. Among other factories not listed, there is an important tannery at Bogota and the rice mill of Cartagena. Textile mills have all increased their capitalization since 1915, and the above amount of $3,530,000 is too low by half; the total amount invested in textile factories by the end of 1920 will probably reach $10,000,000. Of the factories included in the above table, the city of Bogota contains 40, Medellin 30, Barranquilla 18, and Cartagena 12. Recent developments in the increase of textile mills in Meoellin and its dis- trict, however, tend to put that city in first place as the manufactur- ing center of the country. There are also a corset factory, a shirt and collar factory, and a large candy and cracker factory in Medellin that are not listed above. Despite the fact that there were 21 textile plants in the country, goods of this character to the value of 3,343,383 Colombian dollars were imported in 1915. The domestic factories of Colombia owe their existence to high protective tariffs imposed by the Government on the competing imported articles, ana the prices obtained for domestic manufactures are fixed by the c. i. f. and duty-paid cost of imported goods of similar quality. Manufacturers of Colombia have the advantage also of very cheap factory labor, but in turn are handicapped by the neces- sity of importing nearly all of their raw materials and all of their machinery and equipment. A number of articles of foreign manufacture are of prohibitive cost on account of the high import duties imposed chief among these being canned and bottled foodstuffs, tobacco products, wines and liquors, and leathers. OPPORTUNITY FOR EXPANSION. The greatest development of manufacturing will be in textile lines. More than $4,000,000 was invested in this branch of industry during 1919, several large new plants were projected and planned, and two 180 DOMESTIC MANUFACTURING. 181 complete mill equipments were ordered from the United States. The industry is handicapped by the lack of sufficient domestic cotton, and most of the yarns are imported formerly from England, prin- cipally, but now in considerable amount from the United States. Next in importance has been the increase in investments in cigarette factories, notably in Medellin. Tobacco is brought in from Santan- der and Tolima. An important industry is saddlery, and there is in- creased interest in tanneries, the domestic leathers enjoying an ex- cellent demand, far in excess of the production. There is a wide opportunity for investment in textile and knitting mills, tanneries, sugar mills, etc. The small shirt factory at Medellin, recently established, is paying a net profit of 5 per cent per month on the capital invested. Details concerning Colombia's industrial establishments will be found in the sections covering the several commercial districts (be- ginning on p. 185). PANAMA-HAT MAKING AND EXPORTATION. Hat making is the largest community industry in Colombia, and "Panama" hats (so called) form one of the chief items of export. In 1912 the exports were 60,000 dozen, valued at 1,174,641 Colom- bian dollars (1 dollar = $0.9733 United States currency), while in 1913 the value was 966,361 dollars. In 1918 exports of hats amounted to 689,328 dollars. These so-called Panama hats are about the only manufactures of Colombia to be exported on any large scale at the present time. Prior to 1900 Cuba was the only available market for Colombian hats, only a few dozen being imported into the United States, while to-day the United States takes almost all these exports. In addition to the exports, there is a large home consumption. The principal centers of the hat-making industry are in Antioquia, Huila, Narino, and Santander. From Antioquia come the "Aguadas " (town of Aguada) and "Antioquias" hats; the "Suazas" come from Huila (town of Suaza) ; the "Zapatocas" and "Girones" are made in Santander; and the "Pastes" and "Tumacos" come from Narino, from the regions around the towns that give the hats their names. The hat trade of Tumaco is increasing. All Panama hats are made of the "toquilla" palm (Carludovica palmata). The young leaf is used for hat making, being cut off the palm, split into thin strips with a wooden knife, and bleached in the sun, to DO woven into hats. These palm strips are kept damp to pre- vent breaking and splitting in weaving. At Sucre in Antioquia the hat weavers go into a series of damp caves near the town to do the weaving, the moist air keeping the splits at the right consistency. At La Union, near Pas to, hats as fine as those of the famous Monte Cristo district of Ecuador are being made to-day. It takes a person from one day to a week, or more, to weave a hat, according to the fineness. Hats are usually sold to the local mer- chants, who export them. The work is done mostly by the women and the children, and, while exports have decreased since 1912, the industry seems to have increased in Colombia on account of the growing domestic demand for the hats, which are universally worn by the working people. 182 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Competition from Japan in the foreign markets is expected. Japan is buying the "toquilla" (stripped and ready for weaving) in Peru, Ecuador, and Colombia in increasing quantities, and, also, the toquilla palm is being cultivated in Formosa and Japan. Labor is even cheaper in Japan and Formosa than in Colombia and Ecuador, and in the South American countries organization in the industry is lacking to a great extent. Concerning stiff straw hats the following report was submitted in 1918 by Consul Claude E. Guyant, of Barranquilla : Straw hats are quite generally used in Colombia the year round, but the stiff straw hat has always been imported until recently. The Panama hat is manufactured of native grasses in the interior part of the country and is largely worn, although its cost in the better grades has been always higher than" that of the imported straw hat. Within the last few years the latter has been increasing in popularity. Two small factories have been started in the coast country, at Barranquilla and at Cartagena, for the manufacture of straw hats. It is understood that the Cartagena factory has not been very successful, owing to faulty management, but the Barranquilla plant has been placed in charge of a competent manager from New York, and its product is meeting with an increasing demand from all parts of the country. This factory is equipped with 15 sewing machines operated by electric power and 4 presses and has a present capacity of 25 dozen hats per day. The ordinary stiff straw hat is made in several different styles of braid, also men's hats in soft straw and children's and women's hats in soft straw, white and colored. 1 Prices range from $9 to $24 per dozen, according to style and quality. Retail prices are from $1 up, the most popular grade selling for $1.50. Materials for this factory are all imported from the United States, although the braid used comes originally from Italy, China, and Japan, principally from the latter country. Straw braid is imported at the rate of 16,000 pieces of 60 yards each for a year's supply. The hats manufactured here compare favorably with the imported product, and their reception in the local markets nas been very gratifying to the promoters of the enterprise. BAGS AND SACKS COLOMBIAN FIBER RESOURCES. Unable to obtain sufficient jute sacks from abroad for the 1918 or 1919 coffee crop, Colombia has turned to its resources of native fibers, and in 1919 succeeded fairly well in furnishing domestic manufactured sacks for the coffee crop of that year. Small bag factories have sprung up all over the country, in which sacks are made of the native "fique" or species of henequen which grows well in nearly every part of the country and is also cultivated to some extent, though natural plantations are mostly utilized. The fiber, which is extracted from the leaves of the plant by hand, usually brings a higher price in Colombia than could be obtained for it by exporting to the United States prices averaging around 12 cents per pound of 500 grams, delivered at the town. Prices obtaineo: for the fique-fiber coffee sacks averaged, during 1919, 1 Colombian dollar each, or 2 dollars for a "carga" of two sacks. In Medellin a company was being organized to start a bag factory on a large scale, using modern sack-making machinery, etc. In Medellin, also, "La Estrella" foundry is making a very good " defiberating " machine like those used in Mexico for henequen, and these machines are being used to an increasing extent in the interior. "PIQUE" AND "PITA" FIBERS AND THEIK USES. Near Rio Hacha there are large areas of natural plantations of "fique" (as the plant is known locally), which grows very well on the semiarid, well-drained, lime-impregnated lands of this region. DOMESTIC MANUFACTURING. 183 There are enough of the natural plants to justify exploitation on a fairly large scale, and large plantations could be developed in time from the natural ones now existing. The species of agave produces a better fiber than the sisal of the Bahamas or the henequen of Mexico, being finer, whiter, and of greater tensile strength (samples have been submitted to the United States Department of Agriculture by Prof. Dawe, agriculture expert for the Colombian Government). However, it is not thought that the United States will need to develop new fiber sources for some time, and there is therefore little interest in these fields. The "fique" fiber of Colombia is used throughout the country for a great many purposes. Sandals are woven of the fiber and are the universal footwear of the natives of town and country ropes of many kinds are made. Hammocks and mats are made, and local factories are also turning out a very good long house mat or "runner," done in colors, which makes a very good and serviceable covering for the rough brick and tile floors 01 the country. Small hand bags, called "mochillas," are also woven of this fiber, serving the same purpose as the "moral" in Mexico, though the "mochilla" of Colom- bia is round in shape and not flat and square like the "moral." The most useful purpose for which the "fique" serves in Colombia, aside from that of making coffee sacks, is in the manufactore of "sobre- enjalmes," the packsaddles used on the mules and oxen for transport in the mountainous interior. The total annual production of "fique" fiber in Colombia must be enormous, but there has been little organized effort to develop the industry. The work is carried on by small operators in an individual manner all over the country, generally supplying local needs only, though there is beginning to develop a considerable domestic trade in coffee sacks made in the country, the exchange being between commercial districts and local markets. The species of agave Furcraea macrophylla grows wild in the Department of Antioquia, and little has oeen done to exploit the fiber commercially for export, though small lots have been ex- ported in former times. Very few deliberating machines are used, though "La Estrella" shop near Medellin manufactures a good machine of this kind. The usual manner of extraction is by hand, this work being done by the Indians. TJie largest cultivated planta- tion is located on the Magdalena River, near Mompos, and contains about 50,000 plants. This plantation has easy access to the river traffic, and the fiber could be easily exported if prices could be obtained to warrant operations on a large scale. Perhaps the most valuable fiber of Colombia is the "pita." This plant does not belong to the well-known agave family but to the pineapple family (Bromeliaceae) and is found in all tropical parts of the countryexisting in large natural plantations in the region of the Atrato River, near the Gulf of Uraba, and in the Chiriguani district of Santander and Magdalena (Cesar River country), where it is found matted in the almost impenetrable tropical jungles. The leaves of the "pita" plant are much longer and more slender than^those of the henequen ("fique"), sometimes attaining a length of 18 to 20 feet. The fiber is finer than that of the henequen, more uniform in construction, and very much stronger that is, of greater tensile strength. It is used by the natives for making hammocks, nets, 184 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. strong cord, and for sewing in leather. It is the finest fiber known for marine work, making a light, hard line (whale line), practically impervious to salt water for a very long period and of great strength, exceeding that of all other lines of the same weight and diameter. The fiber of the "pita" has not, as yet, been commercially ex- ploited, chiefly because of the difficulties of extracting the fiber from the leaf, whicn is less "juicy" than that of the henequen, being dry and hard to clean from the fiber itself. Experiments have been made in "rotting" the leaves to make " defiberation " more easy. IMPORTS OF JUTE AND BAGS. In 1917 imports of jute into Colombia from the United Kingdom amounted to 225,000 Colombian dollars in value, and prior.to the w:u- Colombia purchased more than 1,000,000 yards of jute piece goods in Great Britain. Jute imports in 1916 amounted to 516,420 kilos, valued at 159,426 dollars. In 1918, 80,324 kilos of fiber sacks, valued at 33,826 dollars, were exported by Colombia. Exports to Colombia from the United States of bags, twine, etc., have been as follows: Kinds. Fiscal year 1916. Fiscal year 1917. Calendar year 1918. Calendar year 1919." Pounds. Value. Pounds. Value. Pounds. Value. Pounds. Value. Bags, vegetable-fiber. $55,258 $39,473 33,437 120,400 $39,062 IK, 026 7,143 10,842 $143,566 49,727 28,180 28,697 Cordage 270,599 31,923 69, 147 212, 805 65, 531 222,426 Twine, binder, etc All other manufactures of vegetable fibers 16,215 15,021 , ECONOMIC VALUE OF NATIVE FIBERS. It would appear that Colombia possesses great natural resources in fibers, almost untouched as yet, and that there are great areas of land suitable for fiber cultivation adjacent to seaports, etc. where, however, labor is scarce and difficult to secure and retain. Statistics show that imports of jute and bags decreased considerably during the war, because of the lack of tonnage, the consequent inability of the importers to obtain needed supplies, and the fact that the domestic resources in fibers were utilized and were capable of supplying the demand, at least during the period of high prices for sacks in 1919. When shipments of jute are renewed from India, it will be a question whether trie domestic product can stand the competition of the cheap imported article. In 1918 an attempt was made near Barranquilla to cultivate the "malva" plant as a substitute for jute in anticipation of the shortage of bags for the coffee crop of 1919. A considerable acreage was seeded- in malva nearCalamar (Banco) on the Magdalena River, and a sack- making factory with modern machinery was installed at Barranqtiilln, the work being in charge of an English jute expert from India who promoted the project. The malva plant itself did very well, but labor was lacking at cutting time, most of the crop was lost, and no sacks were made in the factory. Several tons of the cleaned fiber wen ;ont to the United States as a trial shipment but, from all accounts, did not moet with success on the American market. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. "1 INTRODUCTION: NECESSITY FOR TREATING EACH DISTRICT SEPARATELY. On account of the topographical barriers, Colombia must be con- sidered as a group of commercial districts, each different from the other and each possessing its distinct features with respect to climate, transportation, living conditions, character of the people, and other economic and social factors. All these conditions affect trade in many ways, such as the packing of goods, the kind of merchandise wanted, the buying seasons, and similar considerations. For com- mercial purposes each of these districts must be regarded as a sep- arate unit, and for this reason a separate section in this chapter has been devoted to each, as follows: Santa Marta and commercial district. Barranquilla district, Department of Atlantico, and Magdalena River. Cartagena and commercial district. Medellin and commercial district. Bogota and commercial district. Manizales and commercial district. Cali and commercial district. Bucaramanga and commercial district. Cucuta and commercial district. In each of the above-mentioned sections there is a discussion of the economic characteristics of the district its means of transporta- tion, cities, population, living conditions, education, local manufac- turing, imports, agriculture, live stock, mining, banking, and com- mercial peculiarities. The country is so broken in character and the distances between the several districts are so great (with the difficulties augmented by the lack of means of transportation) that no single commercial enter- prise can cover the entire country in an adequate manner, and branches are necessary in each of the important centers, such as Barranquilla, Cartagena, Medellin, Bogota, Manizales, Bucaramanga, and Cali. Cartagena and Barranquilla are only 70 miles apart, but there is little intercommunication or commercial exchange between the two seaports, though there exists a rivalry for the trade of the interior to the east of the Magdalena River. Cartagena's territory consists primarily of the Rio Sinu country and the Choco Intendency, with which it has communication by steamer along the coast and then up the Rio Atrato; while Barranquilla receives and ships three-fourths of the products of the interior, having better access to the Magdalena. Medellin takes care of the territory of Antioquia, importing direct. Manizales, too, imports direct, though manufacturers' agents in Me- dellin also cover Manizales by a four-day trip through the mountains of Antioquia by mule, making about two trips yearly. The import and wholesale trade of Manizales is well organized, and on account of the capital and foreign connections of its merchants, Manizales is able to sell at wholesale to Armenia and Cali to a great extent. 185 186 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Bogota is the center of trade and commercial activity for the great region of the table-land and even reaches part of Santander, all of Tolima, and Huila. The trade of Bogota is greatly handicapped by the condition of transportation on the Magdalcna River; goods are delayed for months over this route, and freight is very costly. The building of the connecting link of railway between Beltran (on the Upper River) and Girardot, which is now under contract will elimi- nate the delays and disadvantages of the Upper River navigation and will greatly assist Bogota commercially. The completion of the Pacific Railway between Cali and Ibague, over the Quindio Pass of the Central Andes, is the most important problem of Bogota, since it will put that city in direct rail communi- cation with the Pacific port of Buenaventura and will contribute more than anything else to the commercial expansion of the Bogota district. The trade of Cali takes in all of the Cauca Valley, including Popayan to the south, and the completion of the Pacific Railway, mentioned above, will eventually make Cali the second city of the country in commercial importance. The Departments of Huila and Narino are handicapped by the broken nature of their territory and the lack of population. The completion of the wagon road now being built from Pasto to Barba- coas will greatly assist commerce through the port of Tumaco and via Barbacoas An agent or branch house located in Barranquilla could not sell to Bogota or Medellin (a letter takes longer to go from the coast to Bogota than from the coast to New York), and the same applies to sales in Manizales, Cali, etc. The best method for covering the country commercially has been adopted by the Colombian commission houses established in New York. These houses are principally interested in one particular dis- trict, such as Medellin, for example, where their main offices for the country are located, including sample rooms, etc. Members of the firm, or others employed as agents, also have opened offices in the other commercial centers of the country these offices importing directly through the firm in New York and ordering shipments sent in via Barranquilla or Buenaventura, as the case may be. A house located in Cali sends salesmen to Popayan, Tumaco, Barbacoas, and Pasto twice a year. As these houses are also large purchasers and handlers of conee, hides, and other Colombian products, this 'arrange- ment is the most advantageous one. Mistakes have been made in the past by American exporters in intrusting the entire country to one agent, expecting him to travel and cover the commercial centers other than the one where he resides. This can not be done in an efficient and economical manner. Travel takes too much time, and is too expensive, and moreover, since all lines are fairly well represented in each center by resident agents, the volume of business to be obtained by traveling from one center to another is too small to compensate for the effort involved, unless the representation is of some special article or line in which the mar- gin of profit is very high and the sales sufficiently important to war- rant this extra expense. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 187 SANTA MARTA AND COMMERCIAL DISTRICT. LOCATION OF CITY CLIMATE POPULATION. Santa Marta, the capital of the Department of Magdalena, is a seaport on the northwest coast of Colombia, 60 miles east of Puerto Colombia (at the mouth of the Magdalena River) , and has a popula- tion of 6,000. The city streets are not paved and there is no drain- age or sewerage system of any kind. The soil is sandy and dry and absorbs moisture, to which fact may be attributed the absence of ex- cessive disease, considering the tropical climate. The average an- nual rainfall is 18 inches. The precipitation is very erratic, some years being exceedingly dry with not more than 6 to 9 inches of rainfall. Irrigation is necessary in the banana region south of the city. The average maximum temperature is 103 F. and the aver- age minimum 70 F. There are two seasons, winter and summer, winter being the rainy season, beginning in May and lasting until September. The rainfall in the Santa Marta district, however, is affected by the proximity of the semiarid Goajira Peninsula region and of the Sierra Nevada. The climate and rainfall of Santa Marta must not be confused with that of Barranquilla and the coast region farther west where the humidity is much greater. Fifteen per cent of the people are of Spanish descent, the remainder being mestizos, or mixtures of Negro and Indian. There is a very wide social difference, as in all other South American countries. About 80 per cent of the people are illiterate, and the local schools consist of a Jesuit college and six private schools which are assisted by the Government. These private schools are installed in the homes of the masters and have an average attendance of 20 pupils in the primary grades of education. With the exception of the Catholic college where young men attend (studying for the priesthood, prin- cipally), there is no higher education. COMMERCIAL REGION TRIBUTARY TO SANTA MARTA. The Santa Marta district consists of the rich valley extending south from the town as far as Fundacion, the present terminus of the Santa Marta Railway. The main business of this valley is that of the banana plantations, only sufficient corn, beans, vegetables, etc., being grown for local needs. The country is arid and rough south from Santa Marta and is not inhabited until the important town of Cienaga, 22 miles distant, is reached. Cienaga is the river port for Santa Marta, as from here the steamers leave for Barranquilla, the route being through the enormous swamps and channels of the delta until the main stream of the Magdalena is reached at Barranquilla, a distance of 50 miles. Cienaga has a population of 6,000 people, but is not as good a town as Santa Marta, the buildings not being as modern and the entire Elace having the appearance of an overgrown village. It is the eadquarters for the oanana workers, many of whom live here, and also for the railway workers. Here the rich banana region begins, the good land opening out into a large valley with the foothills of the bierra Nevada to the east and the swamps of the Magdalena River delta to the west. 188 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The other towns and villages of the district (beginning at S.mt.i Marta), all of which are on or near the railway, are: Taganga, pop- ulation 600; Mamatoca, 800; Gaira, 1,500 (on the Gaira River); Bonda, 600; Masinga, 300; Sevilla, 400. LIVING CONDITIONS PUBLIC UTILITIES. The cost of living in this district is much higher than anywhere In the interior, with the exception of Bogota. The principal articles of diet of the working classes are plantains, "yucca" (cassava), corn, and beef. Much beef is eaten. Fresh and dried fish should also be mentioned. An American family could live in Santa Marta or Cienaga at a minimum cost of $40 and a maximum cost of $60 per month. The only hotel in Santa Marta charges $2.50 per day for room, with meals included. This rate is rather high, considering the accommodations offered. The water supply of Santa Marta, owned and operated by the municipality, has a gravity aqueduct with a distance of 2 miles to the intake on the Rio Manzanares. There are about 2,000 feet of ditch work, not sided with stone or cement, and thence the rest of the distance is in iron pipe of 6-inch diameter. The service con- sists of one faucet in each house, the poorer classes using the water from the several irrigation ditches near the town. There is an ice plant having a total capacity of 12 tons daily. The local manager of the West India & Colombian Electric Co., operates the electric-light plant at Santa Marta and a telephone system at Barranquilla. The generating plant consists of a 100-horsepower Lefell turbine driving a 90-kilowatt alternating 110-volt generator, and is located at Bonda on the Manzanares River, 10 miles from Santa Marta. The company has 600 subscribers using the equivalent of a thousand 25-watt lamps. In Santa Marta there is also an auxiliary generating plant consisting of a 120 B. H. P. Diesel oil engine, belt connected to a 90-kilowatt generator of the same rating as that at the hydroelectric plant on the river. The total investment is $100,000. During the dry months there is barely sufficient water in the river to generate 45 kilowatts, which is the average load required in daily service. During the rainy season ten times as much water is avail- able as is needed. The Diesel engine is used only when the water- power plant is out of commission or the water is not sufficient for the requirements. This engine is in very poor condition and has been badly handled by the unskilled mechanics in charge. There is also room for improvement in the way of developing more power by tak- ing the water lower down where an additional 55-foot fall could be secured, greatly increasing the capacity of the plant. The equip- ment is adequate to take care of the power and light needs of Santa Marta and neighborhood for many years to come at the present rate of development, the only thing necessary being to have water suf- ficient to run the plant at its capacity. This company has ordered a number of small motors with the idea of introducing them as a means of power to be used in grinding corn meal, shelling coffee, etc., in the neighborhood. It is also bring- ing down a small irrigation outfit for purposes of demonstration with the idea of promoting the use of power for irrigation in the sur- rounding country. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 189 Sufficient corn, beans, vegetables, etc., are produced in the district to supply normal needs, but with the exception of dried fish, which is shipped to the interior from points on the "Cienaga" between the towns of Cienaga and Barranquilla there is no export of food- stuffs of any kind. All lard consumed in the district was formerly imported from the United States, but is now produced locally in sufficient quantities to supply the demand. There is one small sugar plantation near Cienaga which produces sufficient panela a brown- sugar cake to supply local needs at a price averaging 9 cents per pound. A poor grade of table sugar which is used by the better classes, and which is of a slight brown color, is produced near Barran- quilla. Flour is now being shipped into the district from the interior, near Bogota, but not enough is being received from domestic sources either here or at Barranquilla. Santa Marta handles few Hides, compared with the total produc- tion of the region. Most of these are brought in from farther south and go to dealers in Barranquilla via Cienaga. The trade hi hides at Santa Marta is only local, with the exception of some brought down from Rio Hacha, which are all handled by one dealer. The yearly quantity of sun-dried hides in good condition in Santa Marta will not exceed 1,500, this number representing local con- sumption of beef only. There is only one dealer in hides in Santa Marta; he is also a cattle buyer. He imports 80 tons of barbed wire and 1,000 barrels of cement from the United States annually. IMPORT TRADE STOCKS CARRIED. The chief articles imported by Santa Marta merchants are hard- ware, directly from the United States since the war, and cotton goods from the United States and England, in about equal proportions. Formerly the merchants of Santa Marta imported considerable merchandise directly through the port of Santa Marta, buying prin- cipally from German houses, being attracted by the 180 days' time given. These terms suited them, and they say they would be glad to return to this system of credit. They are ready to do business with American firms, but want longer terms than the 120 d/d now asked by all New York importers. The United States will have to meet European prices and study tariff laws, packing, and local re- quirements very closely if it is to increase its trade with this district. Prices and terms being equal, the Santa Marta merchants prefer the American market, on account of the proximity and quick delivery. During the war Santa Marta became tributary to Barranquilla, buying from there at wholesale, with the exception of small im- portations of shirts (fancy) and notions. All of the merchants have connections with some export house in New York with which they do most of their business in the United States, but they do not really understand trade conditions in the United States. Before the war they dealt with Germany, because Germany gave them the cheap goods that they wanted for their trade and also had evolved a good system that made it easy for the merchants and that they thoroughly understood. For example, merchants do not understand the United States monetary system and do not know the difference between a Federal reserve bank note, a gold certificate, and bank-of-issue cur- rency. And they do not realize what guaranty is back of our cur- 190 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. rency. A great deal of good can be done by education in Colombia along these lines. The merchants of Santa Marta are progressive and will take chances in overstocking with goods. They like to show a large stock. They do not understand trade-getting methods, and have no idea of how to go about securing the trade of Kio Hacha and the Valla Dupar district, which logically belongs to them. With the exception of the local trade in native foodstuffs and ample supplies of cotton dry goods, the large $80,000 stock carried by the merchandise department of the United Fruit Co. and one small stock of hardware of about $4,000 are the only stocks of goods in Santa Marta. There is a demand for hardware and piping. Local merchants are carrying good stocks of cotton print goods and dry goods. About one-half of these stocks come from the United States, being imported through Barranquilla by the large Syrian houses. Some are of Barranquilla manufacture. MANUFACTURING. There are no local industries of consequence. Brick and tiling are made for local construction, but the yards are small and are worked at long intervals. The native workmen are good cabinetmakers, using the native hardwoods to make nearly all of the household fur- niture used locally. They work very slowly, however. Special pieces of furniture are imported by a few of the wealthy families, dressing tables with la/ge mirrors being one of the most used. There would appear to be a good opening for a small furniture factory at Santa Marta or Barranquilla. The duty on imported furniture is 30 and 40 cents per kilo plus 2 per cent surtax. Good native hardwoods can be obtained in the foothills of the Sierra Ne- vada near the Santa Marta Railway, and the interior offers an excel- lent market. AGRICULTURE. The United Fruit Co. owns a total of 80,000 acres of banana land in the Santa Marta district, of which it has 16,000 acres under cul- tivation in bananas. There are 300 private growers with a total acreage of about 14,000 in bananas. Banana growing is the prin- cipal industry, and little planting of other products is done, with the exception of corn, "yucca," beans, etc., for local consumption. Plantains also constitute one of the principal articles of diet of the people in this district. Potatoes are well known and used daily by all classes. These are grown by the Indians in the foothill district of the Sierra Nevada, and some are brought down from the Medellin district for sale on the coast. All vegetables grow extremely well with irrigation, fine lettuce, onions, carrots, etc., being seen where foreigners have planted gardens and cared for them. These latter vegetables are not grown or used by the natives. There has been an increase in the acreage of corn planted during the past two years, but no estimate can be formed of the amount, as the patches are small and scattered. The method of planting is simply to clear away the. brush and drop the seed in a hole made in the soil, covering it by means of the foot. The crop is not cultivated in any way whatever and is not thinned. After planting, the only ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 191 work done is to go over the field with a machete, chopping down the larger weeds. This is done once or twice until the corn is high. The ears appear to be very good, the grain being large and soft. No beans or corn can be stored in this region for any length of time on account of a species of weevil which destroys them in the bins. With properly constructed storage and treatment with carbon bisulphide gas (CS 2 ), grain can be kept indefinitely anywhere in the Tropics, but nothing is known in Colombia about such methods. Not a single plow is used by the natives in the district. The only implements employed are shovels for digging the irrigation ditches of the banana plantations, the ever-present machetes, and axes for clearing purposes. These machetes (in South and Central America every district has its favorite design, size, and shape) are of the heavy, long, round- blade type with horn handles, and the best-known brand is made by a firm in the United States. A shorter machete of the same form and shape is used for cutting bananas. The axes are specially made for the native hardwoods and have a large eye to take the home-made handles, which are straight. The blade is long, with a curved edge, which has a heavy bevel. The favorite brand is also an American make. FISHING. A species of buffalo fish is very plentiful in the channels of the Magdalena River and forms a staple market article, both fresh and dry salted. A small quantity of these dried fish have been exported to Cuba recently from Barranquilla, but no statistics on this trade are available in Santa Marta. The town of Cienaga is the center of the fishing industry in the Santa Marta district. From here the fish are shipped to Barranquilla and thence into the interior. No data on production can be obtained. The fish are caught from dugout canoes with small circular casting nets. This local fishing industry competes with imported codfish, which it has practically supplanted during the past Jour years. MINERAL DEPOSITS. There are many reports and rumors of rich copper deposits, coal, and also alluvial gold in the Valle de Upar district near tne towns of Fonseca and Villanueva, but no definite information can be obtained. In this connection it should be said that the natives do not under- stand mining and are therefore unable to give an accurate description of any mineral deposit of any kind. Few American or other foreign engineers have visited the Valle de Upar region, and very little is really known of its mineral wealth or formation. This region is accessible only from Rio Hacha by mule train,, a journey of five days, or from Fundacion, the end of the Santa Marta Railway, in about the same time. It was recently visited by an American, W. E. Dame", who spent October, November, and December there. Mr. Dame said on his return to Santa Marta that the copper was in pocket deposits, very rich ore, and, in the aggregate, an enormous amount, which it would well pay to work. He also reported many heavy veins of coal, which he regarded as constituting a splendid opportunity. In this connection it may be said that there is now a proposition on foot in Bogota to secure a concession to build a railway from Bahia Honda, 192 COLOMBIA: A COMMERCIAL AND INIU T STI:IAI, HANDBOOK. on the Goajira Peninsula, east of Rio Hacha and south through the Valle de Upar region, crossing good cattle lands and tapping ihis milling country, the idea being eventually to extend this road to Bogota, since this route is said to be much better than any other, liahia Honda is reported to be a very fine deep-water harbor. The distance from Bahia Honda to Villanueva, where the principal copper and coal deposits are, is approximately 250 miles, over level ground. From such information as could be obtained at Santa Marta concerning the mineral wealth of the Valle de Upar region it would appear that this district would justify an extensive scientific exam- ination by experts, who should come prepared to stay at least six months and carry full prospecting and assaying equipment with them. Great difficulty would probably be encountered in dealing with native land or mineral claim owners for the purchase or contracting of properties. These people do not know the real value or the practical side of mining in any form and are therefore inclined to ask excessive prices for their holdings. There is a large deposit of cement material 35 miles from Santa Marta at a distance of 2 miles from the railway. The analysis shows : Silica, 70 per cent; iron oxide, 3.95 per cent; aluminum oxide, 20.5 per cent; sulphur trioxide, 0.345 per cent; alkali earth, 0.098 per cent; loss on ignition, 3.44 per cent; and a trace of magnesium oxide. The topography from the deposit to the railway is that of small ravines, and the elevation is 50 feet above the railway. The hill of deposit is 500 feet high on the perpendicular. It can easily be worked with a steam shovel, and the tonnage of material is almost unlimited. A concession for the exclusive cement-manufacturing right for the country could be secured from the Government. The deposit is owned by an American. Colombia consumes an average of $260,000 worth of cement yearly, and the use of this material in all kinds of construction work is increasing. The present average price is $5 per barrel. FOREST RESOURCES. Sufficient good timber is still obtained on the line of the railway for ties and for bridge and culvert construction. When used for ties the native hardwoods last eight years, whereas imported creosoted ties last only an average of three years. Hewn and squared posts are used for telegraph and telephone wires. Crossties cost, delivered at line, an average of 80 cents apiece. The western slopes of the lower ranges of the Sierra Nevada which are accessible from the Santa Marta Railway are well wooded, but the large trees of commercial value, such as mahogany, etc.. are scattered and would only suffice for local manufactures, such as furniture. They are not found in sufficient numbers to be of any export value. Aloes are found in the Rio Hacha district, and there is one small plantation of aloes owned by Senor Moises C. Enriques. The industry is in its infancy. In this region are found the largest numbers of divi-divi trees, the pods of which are exported for tanning material. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 193 NEW INDUSTRIES AND WATER-POWER DEVELOPMENT. A resident of Santa Marta has ordered from the United States a small fish-canning plant which will have a capacity of 250 1-pound, 500 2-pound, and 250 3-pound cans, and it is planned to can in oil a small local species of sardine for local consumption. A sawmill for the use of the Vista Nieve coffee plantation has been ordered from an American firm. The equipment consists of a 54-inch circular saw, water-power drive 40 by 18 inches, 24-inch bed planer, a small corn-meal grinder, belting, and accessories. The Vista Nieve plantation adjoins the coffee property of the Cincinnati Coffee Co., four hours distant from Santa Marta, and the above-mentioned equip- ment is to be used to furnish lumber for plantation structures, etc. A hydroelectric plant is to be installed by a person who has re- cently been awarded the concession to use the 'water power on the Rio Gaira, 4 miles above the station and town of that name on the Santa Marta Railway and 7 miles distant from Santa Marta. A 335-foot head of 800 cubic feet per minute is developed here at the lowest period of the year during the dry season. Approximately 450 horsepower will be produced, to be used for the operation of the Santa Marta ice factory and for electric lighting in the village of La Gaira, and the plans are to have 300 horsepower available for factory purposes. SUPPLY, QUALITY, AND WAGES OF LABOR. The lack of tonnage during the war for the movement of bananas caused many .banana workers to emigrate to Cuba to work in the cane fields and sugar mills. During two recent years 3,000 men have left the district. It would at this time be impossible to secure as many as 500 men to labor on any new project. Nearly all labor is performed by a system of piecework; as, for example, so many bunches of bananas handled or a certain area of land cleared consti- tutes a day's work. The men are good at machete work and cutting and handling bananas, but do not like heavy labor, such as track work or ditch digging for irrigation. Although there are many Negroes and a few Indians in the district and most of the people show a heavy infusion of Negro blood, they all appear to be affected by the tropical climate in the banana zone and subject to malaria and anemia to a great extent. This condition unfits them for heavy work, and they are, as a rule, incapable of long- sustained effort. The United Fruit Co. maintains a large and well-appointed modern hospital at Santa Marta, where climatic conditions are much better than in the banana zone. To this hospital are brought all workmen having diseases of any kind, for medical attention and cure. The hospital is also available to all persons of the region, and many skillful operations are performed here. This institution is rendering a much- needed service for the north coast of Colombia, and its value is incal- culable. BANKING. No regular banks are established in Santa Marta, but there are two branch agencies of Barranquilla banks the Banco Dugand (Santa Marta agent, Miguel A. Zuniga) and the Banco Comercial (repre- 37558 21 13 194 COLOMBIA : A COMMERCIAL AND INDUSTRIAL HANDBOOK. sen ted in Santa Marta by E. C. Fuentes). Sefior Miguel A. Zufiiga also has the temporary agency in Santa Marta for the Banco Mercantil Americano de Colombia, Barranquilla branch, and maintains one extra clerk who attends to the banking work in his store. POSSIBILITIES OF TRAUK DEVELOPMENT. It would seem that, by an effort, the merchants of Santa Marta could secure and develop the trade of the rich Valle de Upar region and Rio Hacha. The latter has no harbor; there is only a very shallow open roadstead, where small schooners have to lie out at a great distance from shore, and cargo is handled in dugout canoes. At the present time Rio Hacha receives most of its supplies from Curacao, the trade being carried on by small schooners owned in Cura- cao, which return home with divi-divi and hides from Rio Hacha. The distance from Santa Marta is 90 miles by sea, and the trip is slow and difficult in the small schooners (by reason of the strong northeast trade winds), the voyage taking from five to six days. There is a customhouse at Rio Hacha, and merchandise from Curacao is distributed into the interior of the Goajira Peninsula and the Valle de Upar region. The distance from Rio Hacha to Valle de Upar is approximately 300 kilometers, or 186 miles, and all goods are trans- ported by pack mule. The route from Santa Marta via the railway, as far as Fundacion, and thence by pack mule to Valle de Upar, is more practical than that from Rio Hacha. The distance is less great and the road passes through a more inhabited region, where there are coffee and cacao plantations and cattle ranches. For this reason it would seem that the merchants of Santa Marta should endeavor to develop trade by this route and, also, should run small auxiliary-powered schooners to Rio Hacha. ' The towns at present being supplied through Rip Hacha with goods from Curacao are: Moreno and Valencia, population 1,500 each; Soldado, population 1,000; Fonseca, 3,500; San Juan, 5,500 (includ- ing 20 ranches); Villa Nueva, 3,500; Valle de Upar, 7,000. The Province of Padilla has a total population, including all ranches and small villages, of 28,000. However, the Santa Marta merchants do not seem to have any idea of how to go about developing this trade and would have to be given assistance. The large coffee plantations in the Sierra Nevada region carry stocks of goods worth $5,000 to $8,000, and would also buy in Santa Marta if it were possible to do so. The trade with the Goajira region and the Valle de Upar district can *be conservatively estimated as amounting to $400,000 yearly. The United Fruit Co. is in a very good position to establish a large wholesale house at Santa Marta and supply the Valle de Upar region, and this would be one of the best and most logical ways or increasing American trade in this district. Goods for transshipment into this region must be packed for mule transport weight limit 135 pounds per package. Duty is assessed on gross weight so that packing should be as light as possible consistent with safety. The nine principal business houses of Santa Marta have a capital running from $5,000 to $95,000 each, and representing a total of $205,000. Their annual sales in 1917-18 were $227,000, and stocks on hand are valued at $111,000. Analyzing these figures, it will be seen that very little business is being done, compared with the amount ECONOMIC CHAEACTEKISTICS OF NINE COMMERCIAL DISTRICTS. 195 of capital represented, and that the annual turnover is very slow; in fact, complete stocks are cleared but once a year, even in normal tunes. This latter feature is one of the arguments for longer credits. The major portion of the stocks now on hand (at least 80 per cent of the total) consists of dry goods, principally cotton-print goods, which are moving very slowly. There is a small local demand about two gross annually for a fair grade of ready-made negligee shirts, which sell readily. Santa Marta, during 1917, imported $395,000 worth of general merchandise, almost all from the United States. HARBOR AND DOCKS. The Santa Marta Harbor lies on the west shore and is open toward the west-southwest, well protected by the hills surrounding the town and bay. Anchorage is good. The depth of water in the Day varies between 50 and 200 feet. There is a minimum of 16 feet at low water at the face of the wharves, which lie at the extreme north end of the bay. The bottom shelves rapidly seaward to over 27 feet at the keel line of vessels lying alongside. The wharves are owned and operated by the Santa Marta Railway Co. (Ltd.). General cargo is dis- charged at the rate of about 15 tons per hatch per hour and loaded at the rate of 12 to 20 tons per hatch per hour, depending on the nature of the goods and the facility of stowage. Conee is loaded at the rate of 250 bags per hatch per hour. The freight is handled on men's shoulders and by hand truck. Heavy packages are moved on rollers by means of tackle and locomotive power when necessary. The piers are strong enough to hold the maximum weight that can be moved, which is ordinarily not over 10 tons. There are no ordi- nary facilities for handling pieces of freight over 9 by 8 by 28 feet in dimension. There is ample trackage for switching, with a capacity of 235 18-ton cars. A 4,000 fire-insurance policy for account of the Santa Marta Railway Co. protects cargo while on docks or piers. The charges on inward and outward cargo are $0.20 per ton wharfage and $0.60 per ton from ship s side to customhouse or, in the case of export cargo, from station yard to ship's side. There are no lighterage charges, as lighters are not used. The ships use their own springs, mooring lines, slings, etc. The wharf charge for cattle is $0.30 per head. The charges for berthing are: Wharfage, $30; boat service, $7 ; and use of buoy, $3, for steamers of any tonnage. Import cargo is transferred from wharves to customhouse in sealed cars and there unloaded for examination. All of these operations are per- formed by employees of the railway company. In case of loss or damage from the time the cargo is received on dock until it is de- livered at the customhouse, the railway company is liable. No stevedoring is undertaken by contract. Work on board ship is done by the ship's crew or by shore labor, at the request of the ship's officer, in which case the labor is furnished by the railway company. If labor is requested from shore, the average number of men employed is 13 10 in the hold, 2 winch men, and 1 deck tender. Normally there is sufficient labor to work as many hatches as can be brought alongside the wharves. Chiefly West Indian labor is em- ployed, and the regular wages are 15 cents per hour for foremen and 10 cents for laborers. The foreman receives 25 cents and the laborers 196 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. 15 cents per hour for overtime. Night work is all counted us overtime; as are also Sundays and holidays. The only steamship line touching at Santa Marta is that of tho United Fruit Co., whose vessels load bananas from the company's plantations in tho district. The service is not regular, but passage and freight may be booked from Boston, New York, and Philadel- phia, and also Baltimore, according to the run of the particular steamer bringing up fruit from Santa Marta. In December, 1918, 14 steamers sailing from the United States called at Santa Marta, 12 of which came direct and 2 by way of Cartagena and Puerto Colombia. RAILWAY SERVICE AND PROPOSED EXTENSIONS. The total trackage of the Santa Marta Railway is 97.57 inilo' of which 59.65 is main line. There are 30 small branch lines, all in banana plantations. The rolling stock consists of 20 English- made locomotives of 12 to 33 tons each, 17 passenger, 3 baggage, and 213 freight cars. The roadbed is of 3-foot gauge, rock ballasted, heavily ditcned, and well kept. There is one heavy earth cut of 600 feet and 17 all-steel bridges in excellent condition. Fully 85 per cent of the earnings of the railway are derived from the banana traffic. There is not enough local freight and passenger business otherwise to pay operating expenses. Banana handling is costly on account of the perishable quality of the fruit and the neces- sity of careful and rapid transport to steamers. The trains are made up to run out to the plantations empty when the fruit is cut, making the freight a one-way haul. The line can handle 57,000 bunches of bananas in 24 hours' working time, using 4 large and 8 small locomo- tives. This time is the elapsed time from the issue of the order for cutting until the fruit is cut, brought to the sidings, loaded on board cars, and delivered to the steamer. The capacity could be increased to 160,000 bunches in 24 hours. In 1905 the Santa Marta Railway Co. secured a promise that the Government would not levy a tax on the production of bananas for 20 years. This has allowed, the United Fruit Co. to enlarge its hold- ings in banana land and develop the plantations in this district. The railway company has agreed to build a branch loading line into any of the banana plantations, not to exceed 10 kilometers in depth from the main line, if the amount of fruit justifies this extension. The terminus of the line is at Fundacion, 96 kilometers (60 miles) from Santa Marta, and the road was originally planned to reach the Magdalena River. The present policy of the company is to discour- age the building to the Magdalena River until the development of the country would warrant such an extension in this direction. The officials think it better to extend the road 48 kilometers (30 miles) toward Iriguani, throughout which district there is water for the irrigation of bananas, timber is found in abundance, and there is ex- cellent cattle land the district offering better opportunities of de- velopment than that toward the Rio Magdalena. In this connection, the plan is to extend the line eventually to Valle de Upar, tapping the rich copper and coal deposits found there. The coast route from Santa Marta to Rio Hacha is very rough and broken, and there is not enough traffic to warrant construction in this direction. Such a line would be very costly. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 197 BARRANQUILLA DISTRICT, DEPARTMENT OF ATLANTICO, AND MAGDALENA RIVER. LOCATION OF TERRITORY. The commercial district of Barranquilla is not a well-defined region and is not in any sense limited to Atlantico, the Department in which the city itself is located. Barranquilla is Colombia's chief port of entry and the distributing point for a large section of the Magdalena River. Its commercial territory interior served by the includes the Departments of Santander and Norte de Santander FIG. 9. Map of Santa Marta, Barranquilla, and Cartagena regions. and the entire Santa Marta district on the eastern side of the Magda- lena; it is the wholesale center for portions of the Departments of Bolivar and Antioquia on the western side of the Magdalena and at times it even receives orders from the distant Cauca Valley in the Department of El Valle. Barranquilla is located on the Magdalena River about 10 miles from its mouth and about 17 \ miles from the seaport of Puerto Colombia, with which it is connected by the Barranquilla-Puerto Co- lombia Railway. It has 65,000 people, less than 10 per cent of whom are of pure white blood. 198 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The Department of Atlantico has an area of a little more than 1,000 square miles and a population of about 1 15,000. It is bounded on the east by the Magdaiena, on the south and west by the Department of Bolivar, and for some 50 miles on the west and north by the Carib- bean Sea. The Magdaiena Valley contains considerable areas of level, alluvial land suitable for agriculture, but the remainder of the Department is composed of low, broken hills interspersed with small depressions. This region is arid and unproductive during the dry season, and the valleys are more or less swampy during the rainy season. CLIMATE AND RAINFALL. Atlantico has two seasons, a dry season from October until May and a rainy season the other five months. These seasons are ex- ceedingly Variable; occasionally rains are so heavy that crops and cattle suffer, but more often there is an insufficient supply of water. The annual rainfall averages about 21 inches, though it is often lower, and in exceptional years it is as much as 42 inches. The Department is only a few degrees north of the Equator and therefore nas a tropical climate. During the rainy season the north- east trade winds moderate the temperature along the coast and as far inland as Barranquilla. During these months the average mean temperature at Barranquilla does not exceed 86 F., with a high average of 96 and a low average slightly less than the mean. During the rainy season it is even hotter than in the dry season. POPULATION AND LIVING CONDITIONS. The business element of Barranquilla is composed of Colombians, Syrians, Italians, Germans, and a few Englishmen and Americans. Most of the traders are Syrians, but recently the proportion of Co- lombians has been increased by an influx from the interior, prin- cipally from Antioquia. There are less than half a dozen Americans among the city's permanent residents. In Barranquilla the lower classes, mainly Negroes, live in low adobe or brick buildings, scantily furnished and with few con- veniences; outside the city they live in tiny, palm-thatched huts. As bananas, plantains, and the universal yucca, which are the prin- cipal food staples, are cheap and plentiful, it requires little effort to exist. The people are more or less affected by tropical anemia, and work is slow and inefficient. Potatoes are the only fresh vegetables obtainable in Barranquilla. Fruits are abundant but not good except bananas. Butter is not made in this region, and only tinned butter can be purchased. Milk is scarce and poor. Malaria and other tropical diseases are prevalent. The greatest precautions should be observed against the pests of mosquitoes and flies, and drinking water should Joe boiled. The unhealtnful condi- tion which would normally result from the lack of sewage and drain- age systems in Barranquilla is partially counteracted by the oxida- tion which the air receives from the clouds of lime dust that are whipped up by the trade winds from the lime formation on which the city is built. This lime dust, however, is said to be one cause of the prevalence of tuberculosis. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 199 SCHOOLS LABOR CONDITIONS. The Department of Atlantico has 61 public primary schools. Bar- ranquilla has 12 primary schools, a Government normal school, 3 parochial schools, and 3 so-called "colegios." One of these "co- legios" is a Presbyterian missionary school, where elementary courses in domestic science and English are taught. This school is endeavor- ing to raise the standards of living of the lower classes. Labor is plentiful in Barranquilla but not in the cotton district in the interior of Atlantico. The transfer of freight from the railway sheds, the customhouse, and the river steamers is the principal occu- pation of the lower classes in Barranquilla. The catching and drying of fish for the markets of the interior is a thriving industry of the district. Barranquilla has about 3,000 factory employees, mostly women and girls, who work in the cotton mills. These factory employees are paid on a piecework basis and earn an average wage of 30 to 80 cents per day. Barranquilla was affected by the general strike which took place along the Atlantic coast in January, 1918. This strike was caused partfy by political disturbances, partly by the increase in the cost of living, and partly by the lack of employment resulting from the shutting off of ocean traffic. Wages at that time averaged $0.80 per day for cargo handling, cartage, and similar occupations, and were increased to an average of $1.20 per day. In July, 1919, a second period of agitation was initiated by the cartmen. They received an advance in wages of $0.10 per day. The dock and cargo workers of Barranquilla seem to be well organized, and take concerted action for (5he adjustment of labor differences. AGRICULTURE AND LIVE STOCK. Cotton is the most important agricultural product of the Magda- lena Valley region near Barranquma. The production in 1917 was estimated at 2,200,000 pounds, and it is thought that production has increased since then. Prices offered by the Barranquilla and Medellin mills are higher than corresponding prices in the United States, but even so, the mills find it impossible to obtain a sufficient supply of raw cotton and to obtain cotton that is clean enough for ginning. Various attempts have been made to introduce modern methods of cultivation and to establish large plantations but with little success. Most of the cotton is grown on small farms by individual owners or renters. Seed is imported from Mississippi. The fiber of this cotton resembles that of sea-island, often measures from 1 to If inches in length, and is almost too fine for use in the local mills. Sufficient corn, beans, yucca, and other native foodstuffs are grown in the Barranquilla district to supply the local demand, with the exception of plantains, which are imported from the banana district south of Santa Marta and Cienaga. In 1918, "malva" fiber, (a substitute for Indian jute) was planted near Barranquilla, and a bag-making plant was purchased in the city itself. A satisfactory yield of the fiber was obtained, but the impos- sibility of securing sufficient labor to pick the crop and the difficulty of marketing a trial shipment to the United States discouraged the promoters and the whole project was abandoned. Enough cattle are raised along the river to suppiy the population of the Department and a few head are sent up the river to Antioquia. 200 COLOMBIA I A COMMERCIAL AND INDUSTRIAL HANDBOOK. COAL AND PETROLEUM RESOURCES. In 1919, preliminary plans were made to work the beds of bitu- minous coal which lie along the bank of the San Jorge a short dis- tance above the head of navigation. The seams in these deposits vary in width from a few incnes to 12 feet; the vein which it is planned to work has a width of 10 feet and a dip of 14 from the Horizontal. Surface soil only has to be removed to uncover the coal which lies at a depth of 1 to 2 yards under the topsoil. A preliminary analysis of the coal was made and some work done to clear the river for navigation. An initial shipment of 3,000 tons to Barranquilla lu- been contracted, and it is planned to float the coal down to Barran- quilla in 100-ton barges. The local consumption of coal at Barran- quilla, including the needs of the Barranquilla-Puerto Colombia and Santa Marta Railways, is estimated at approximately 1,000 tons pel- month. An American company has been drilling for petroleum near Puerto Colombia, ana although it has not yet found oil in paying quantities, indications are encouraging. There are also indications of oil to the southwest in the direction of Cartagena, but drilling operations farther to the west near the Rio Sinu several years ago by an American company failed to tap any large body of petroleum. MANUFACTURING BANKING. The making of cotton yarn and of cotton cloth are the chief manu- facturing industries of Barranquilla and promise to become increas- ingly important in the near future. The textile mills have a ,/ned large profits during the war, and this prosperity has resulted in an increase in the capitalization of some of the companies, in new equip- ment, and in the establishment of one large, new yarn mill. The industry is protected \>y a high tariff on imported goods, and prices are determined by the nigh cost of the imported articles. The older mills are equipped with English machinery, and the newer mills w.th American. The light weight of the American machinery and the automatic features which make less skilled labor necessary for its operation have made it popular, and several large machines were ordered during 1919. Among the other industrial plants of Barranquilla are small estab- lishments making soap, shoes, hats, carbonated water, cigarettes, and trunks. There are also breweries, a flour mill, a glass factory, a match factory, a nail factory, sawmills, tanneries, a tile factory, and a chocolate factory. In 1918 machinery was imported and preparations were made for the establishment 01 an oil-crushing plant at Barranquilla. Corozo nuts from the Magdalena Valley were to be used and the oil shipped to France. Barranquilla has five banks, two Colombian, one French with Co- lombian affiliations, and two American. The establishment of a Canadian bank is under consideration. One of the native banks does a straight banking business, while the other adds to this an export and import business. The general business prosperity of the country which resulted from the increased volume and value of the coffee exports for 1919 was reflected by an increased volume of business and increased earnings ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 201 for the Barranquilla banks. The native banks have been accus- tomed to charge 12 per cent per annum for prime commercial paper, but the establishment of the American banks nas already had the effect of lowering these rates Joy 2 and in exceptional cases even 3 per cent. PUBLIC UTILITIES. The city of Barranquilla is anxious to own its public-utility service, but lacks sufficient funds for its purchase and improvement. In the meantime', little encouragement is given to private companies to un- dertake much-needed improvements in the water-supply system, the telephone system, the street-railway and light systems, and similar enterprises. The water supply is insufficient and the system antiquated. Water is taken from the river by a small pumping plant, filtered to some ex- tent, and distributed through small mains. The plant is owned by a local company, part of whose stock is controlled by the municipal government. Paving is bad. Here and there the streets in the center of the town are paved with cobblestones, but those on the outskirts of the main business sections are filled with dirt. The problem of street paving in Barranquilla is an important one, and according to esti- mates will involve an expense of about $3,000,000. Plans for the financing of this project were recently discussed at a municipal meeting attended by the principal Barranquilla merchants, and it is possible that active steps will be taken in the near future to get this work under way. The telephone system is operated by an American company which also owns a light plant at Santa Marta. Its concession expired about three years ago and has never been renewed, in spite of the fact that it has promised to install new and modern equipment and to extend its service upon renewal of the concession. In 1918 the municipal council attempted to organize a new telephone company in which it was to retain a controlling interest, but this attempt failed because of the opposition of local business men. The electric light plant is op- erated by a private company, maintains good service, and is capable of considerable extension. There are several good moving electric signs, the only ones in Colombia outside of Bogota. The present street-railway service is limited to a small system of mule cars operated by a local company under a concession that expires in 1920. After an unsuccessful attempt to gain control of the reorganized company the municipal government was forced to accede to the demands of the company and grant it a new 40-year franchise based upon the extension and electrification of the present system. This concession had not been approved by the governor at trie end of 1919, but an ultimate approval is anticipated. The new system will include 10 kilometers of track and 16 electric cars, with additional equipment to be provided as the needs of the city make extensions necessary. A new steam generating plant is to be pro- vided also. NEW SUBURB FOR BARRANQUILLA HOTEL ACCOMMODATIONS. In 1919 an American company purchased a tract of about 660 acres near the northwestern edge of Barranquilla for the establish- ment of a new residential suburb. The sum of 65,000 Colombian 202 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. dollars (1 dollar = $0.9733 United States currency) was paid for the tract, a landscape engineer was brought down from the United States to lay out the addition, and it was planned to spend from 25,000 to 50,000 dollars the first year in improvements. Lots were to be sold and houses built and sold on the easy-payment plan when necessary. Such a plan is a distinct innovation in Colombia. A number of splendid Wildings are now nearing completion in Barranquilla. Among these are the new Barranquilla customhouse, the new building of the Banco Dugand, the Barranquilla Club, the A. B. C. Club, and a number of residences. Hotel service in Barranquilla is not of the best because of the im- possibility of training the native servants of the coastal region to keep things clean or to prepare food in an appetizing manner. There are a number of hotels, but only two first-class ones, and even those lack sufficient modern improvements. HARBOR FACILITIES AT PUERTO COLOMBIA. The harbor at Puerto Colombia is a large shallow bay with a wide entrance, easily approached by steamers from the open sea. It is protected on the sea side by low-lying sandy islands, but these islands do not break the force of the winds from the sea, and there is little protection for shipping during stormy weather. The Magda- lena flows into the ocean through a swamp about 15 miles to the east of the bay. The shallowness of the bay has made it necessary to build the pier a mile in length in order that vessels may have sufficient water to come alongside to load and discharge cargo, and the enormous quantities of silt being constantly deposited in the bay by the Magdalena will eventually make a further extension nec- essary. At present the water is 5^ fathoms deep at the end of the pier, and the anchorage depth off the pier varies from 5 to 8 fathoms. The maximum fall of the tide is 18 inches. The pier is owned by the Barranquilla Railway & Pier Co., an English company, which also owns the railway from Puerto Colom- bia to Barranquilla. It has four tracks at the sea end of the pier for placing cars to receive and discharge freight to and from steamers, and a single-track line to the shore. Merchandise is not stored on the pier or in warehouses or freight sheds at Puerto Colombia, but moves directly to the customhouse at Barranquilla. The town of Puerto Colombia has a population of about 2,500, most of whom are Negroes engaged in dock and cargo work, Its buildings are for the most part wood, roofed with corrugated iron. Drinking water has to be brought from the river at Barranquilla. The United Fruit Co. maintains a weekly freight and passenger service between this port and United States ports, W. R. Grace & Co. a monthly freight and passenger service, and the Caribbean Shipping Co. a 10-day freight service. The Compaftia Transatlantica de Barcelona maintains a monthly freight and passenger service to Barcelona via Venezuela and the West Indies. BARRANQUILLA-PUERTO COLOMBIA RAILWAY. The Barranquilla-Puerto Colombia Railway is the connecting link between Barranquilla and its ocean port, Puerto Colombia. It can handle approximately 50,000 packages or 3,250 metric tons of im- ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 203 port and export freight in two days of 24 hours each. Coffee, the principal article of export freight, is used as a basis for comparison when figuring all other goods handled; a package is 65 kilos or 143 pounds gross weight. The company can ship 15,000 pieces of freight for export from a Barranqmlla warehouse to the pier at Puerto Colombia and load it on steamer in one day of 24 hours. The average loading rate is 800 sacks of coffee per hour from cars on pier to hold of vessel lying alongside. The railway's equipment includes 15 locomotives of 20 and 45 tons capacity, 220 box cars whose capacities range from 8 to 20 tons, and 19 passenger cars. Both freight and passenger cars are of wood and in need of repair. Locomotives are worn, and the roadbed is not in the best of condition. The track has a 42-inch gauge. Im- ported coal was oised for fuel before the war. Since that time wood has been substituted, and in 1919 an effort was made to procure native coal. The Barranquilla Railway & Pier Co. has a capital of 200,000 and a bonded indebtedness of 100,000. The restrictions on exports and imports during the war caused a decrease in revenue during 1918, but in May, 1919, business began to increase rapidly, and the returns for 1919 will undoubtedly show an increased tonnage. During 1917-18 the freight carried amounted to 86,500 tons. ' Net profits were 100,326 Colombian dollars, and working expenses were 65 per cent of the gross earnings. A 5 per cent dividend was declared. MAGDALENA RIVER ROUTE TO THE INTERIOR. THREE SECTIONS OF MAGDALENA RIVER. The transportation facilities available for the shipping of goods from Barranquilla into the interior are practically limited to the Magdalena, its tributaries, and the railways built from various Mag- dalena ports into the interior. The Magdalena rises in the Andes, in the Department of Huila, and flows north down the great valley which lies between the eastern and central ranges of the Andes, passing through more than three-fourths of the central part of Colombia. Its navigable length, about 930 miles, consists of three distinct sections: The Huila section, which extends from Neiva to Girardot, the Upper River from Girardot to Beltran, and the Lower River from La Dorada to Barranquilla. The Huila section passes through a mountainous country and has a well-defined channel. In the dry season it has scarcely enough water to float a canoe in many places. In the Upper River, a stretch of some 95 miles, the volume of water is greater, but there are many obstructions to navigation and the section is often not navigable during the dry season even for the 80-ton steamers of shallow draft operated between Girardot and Beltran. These boats never draw more than 3 feet of water when loaded to capacity. The Upper and Lower River sections are separated by a series of impassable rapids, which are bridged by the short Dorada Extension Railway. The current in the Lower River, a stretch of approximately 615 miles, is less swift than in the upper sections, the valley is wider, and the channel constantly shifts. From La Dorada to Puerto Berrio, a distance of 109 miles, the river is still dangerous. Below Puerto 204 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Berrio it becomes steadily better, but not good until the mouths of the Cauca and the San Jorge are passed the first 214 miles above Barranquilla, tho second 174 miles. It is onlv below Calamar, 67 miles from Barranquilla, that the river is practically free from sand bars, mud banks, snags, and similar obstructions to navigation and can be navigated at all seasons of the year with comparative safety, steamers even running at night during the dry season. The deep channel has about 35 or 40 feet of water at Barranquilla. TRIBUTARIES OF MAGDALKNA RIVKK. The Cauca, the largest tributary of the Magdalena, has its source in the central Andes near Popayan and flows north between the central and western ranges. It is divided into two navigable sec- tions, the first from Cali to Cartago and the second from the mining town of Caceres to the Magdalena, a distance of 170 miles. From the mouth of its tributary, the River Nechi, to the Magdalena, a distance of 74 miles, the Cauca is navigable for steamers of 120 tons burden and 3 feet draft during the entire year. This service is important because it affords means of transportation to the rich placer-mining region of the Nechi and San Jorge Rivers. The San Jorge flows almost parallel to the Cauca between the Cauca and the western Cordillera. It is not nearly so long a river but it is as wide and as deep in its lower part, and during the rainy season is navigable for small steamers up to Ayapel, 112 miles from its mouth. Its course is impeded, however, by many obstructions. The Magdalena has three tributaries on the east which are navi- gable during the season of high water. The Rio Cesar flows south through the Department of Magdalena and joins the Magdalena River at the Lake of Zapatosa approaching the town of Banco. It is navigable for small steamers as far as the town of El Paso, 96 miles from Banco. The Rio Lebrija joins the Magdalena at Bodega Cen- tral just above the town of Gamarra, and during the rainy season is navigable for small steamers up as far as La Ceiba, 70 miles from Bodega Central. It serves the Bucaramanga commercial district in the Department of Santander. The Rio Sogamoso flows into the Magdalena a short distance south of Puerto Wilches and is navigable for 22 miles during the rainy season. This river also serves the Bucaramanga district. Mention should also be made of the Opon and the Carare Rivers, which are navigable for canoes, and of the Rio Colorado, which flows into the Magdalena just above the Sogamoso. An American oil com- pany has wells located 35 miles up this river and ships all the neces- sary supplies and equipment up the river in small gasoline launches and dugout canoes equipped with motors. The company has spent considerable money in clearing out the river and is now building a wagon road from the river at Barranca Bermeja to the field. Small 45-ton steamers run through the narrow channels in the swamps of the Magdalena from Barranquilla to Cienaga, a distance of 56 miles. Cienaga is about 14 miles from Santa Marta and is connected with it by the Santa Marta Railway. There is usually so little water in the channels that boats of more than 2 feet draft can not be used. The trip takes from 8 to 10 hours. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 205 DREDGING AND CANALIZATION PROJECTS. From time to time the National Government has made determined efforts to improve the conditions of navigation on the Magdalena and it now owns a considerable amount of fairly new equipment for this work, including 3 dredgers, 2 pile drivers, 3 steamers of 130, 106, and 136 tons, respectively, 2 mud scows, and 2 cargo lighters. Plans have been discussed repeatedly for the canalization 01 the Dique, a natural waterway connecting the Magdalena with the sea near Carta- gena, and for the dredging of the mouth of the Magdalena so that ocean steamers could proceed directly to Barranquilla. An attempt was made recently to clean out the channel connecting the San Jorge and Cauca Rivers, but the project was abandoned as being too costly. The Dique extends from Calamar on the Magdalena to Barbacoas on the sea, a distance of 96 miles. A series of swamps extend from the mouth of the Dique at Barbacoas along the coast to Cartagena, 18.6 miles. This entrance to the Magdalena was formerly used by large boats, but it has been allowed to fall into disuse and is now choked with a heavy growth of water plants. In 1919 a concession for cleaning it was granted by the National Government, some pre- liminary surveys of the canalization work necessary to make it navi- gable were made, and further work was planned. If these plans should be carried out and the Dique made navigable for river steam- ers, it is predicted that a large part of the river tonnage would be diverted from Barranquilla to Cartagena. The Magdalena is 40 to 60 feet deep at Barranquilla, but only about 6 feet deep over the bar at its mouth, about 8 miles below the city. Three separate preliminary surveys of the mouth have been made, and in 1919 a company of local merchants and bankers was organized at Barranquilla to promote the project to dredge the mouth and construct jetties and wharves at Barranquilla. No actual work has been done, however, and the whole project is considered impracticable by many engineers and well-informed people because of the cost and the engineering difficulties. According to a statement in El Tiempo, a Bogota newspaper, in December, 1920, a contract has been entered into between the Colombian Government and the representative of the German firm of Julius Berger, of Berlin, for the study of plans for dredging the Magdalena River. The study proposed is to be carried out as far as Neiva, the necessary plans made, and an estimate furnished. The company has a period of eight months, counted from the date of the definite approval of the contract, to begin the work connected with the study and 30 months more to turn in the plans, estimates, and reports to the satisfaction of experts appointed by the Government. When the present contract is complied with, the company is to have an option, circumstances being equal, for the execution of the works planned. FUNDS FOR RIVER WORK. All river work is directed by a Government Canalization Board aided by an advisory committee composed of members of the various steamship companies. For the present, work is being confined to the removal of rocks and sunken tree trunks from the channel of the river and to local dock-repair work, and the accumulating funds are 206 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. being hold until conditions become more favorable and there is suffi- cient money to effect some permanent improvements. Funds for river work are supplied by various fluvial taxes. In 1916 the proceeds of these taxes amounted to 349,000 Colombian dol- lars and in 1917 to 318,000 dollars. Each year 20 per cent of the proceeds are alloted to work on the Upper Kiver ana 10 per cent to the Cartagena Dique. A tax of 4 Colombian dollars per metric ton is charged on all im- port freight, 4 dollars per metric ton on all domestic freight not in- tended for export, and 1.60 dollars per metric ton on all freight in- tended for export with the exception of certain articles exempted by special laws and certain domestic products which have been pro- tected by special contract with the Government. These exempted products include tagua or vegetable ivory, lumber for construction purposes, dyes, fibers for weaving and cordage, vegetable oils, domes- tic foodstuns, supplies for public service, and cotton for domestic use. Each steamer of 100 tons or more pays a registration fee of 20 Colombian dollars for each 100 tons of register; each steamer of less 'than 100 tons, 4 dollars for every 25 tons or fraction thereof; each steam or gasoline launch, a fee of 5 dollars; and each lighter or scow of over 1 ton, a fee of 1 Colombian dollar. In addition to the registration fee, an annual license fee of 50 cents for 5 tons or over and 25 cents for less than 5 tons is collected. MAODALENA STEAMER SERVICE. The following table lists the companies which operate steamers on the Magdalena, the number of boats owned by each company, and their total tonnage : Steamship companies. Upper River. Lower River. Total boats. Total tonnage. Colombian Railway & Navigation Co. (Ltd.) . 6 20 23 5 589 Cia. Antioqueiia de Transportes. 2 5 7 1 675 F. Perez Rosa 4 4 977 Manuel Betancourt 2 2 370 Martin Vasquez .. . 2 2 204 Empresa "Palmar" (Pineda Lopez y Cia., managers) 1 1 300 In addition to the boats listed in the above table, the Santa Marta Wharf Co. operates one 80-ton steamer between Barranquilla and Cienaga, and there are nine steamers of less than 100 tons capacity that handle local freight on the Lower River. The Magdalena steamers are stern-wheelers, built with rounded "spoon" bows to prevent their plowing too deeply into mud and sand banks. Their hulls are of steel, built in cellular sections, to prevent flooding of the entire hold if one compartment is ripped open on the bottom or sides. Cargo, boilers, and engines are all carried on the main deck. Large steamers customarily tow steel lighters, some of which carry a cargo of 200 tons. Wood is the usual fuel, but it is expensive and occupies valuable cargo space, and the companies have therefore become interested in the possibility of using oil from the wells on the Rio Colorado. Boat building has been retarded during the war. In 1913, 55 craft of all classes, with a total tonnage of more than 2,300, were built; in 1916, only 10 boats, with a total tonnage of a little over 400. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 207 PASSENGER AND FREIGHT TRAFFIC. Some idea of the amount of traffic on the Magdalena may be ob- tained from the official figures for 1916, the only year for which such statistics are available. During that year, 18,300 river passengers ar- rived at Barranquilla and 19,100 departed from Barrancjuilla. The quantity of freight handled during the year at various river ports is shown by the following table : Ports. Freight received. Freight dis- patched. Metric tons. 80.600 Metric tons. 53,400 Calamar (entrance to Dique) . ,,...,,,,,,,,....,,,. 15,400 15,900 3,300 32 3,300 3,000 Puerto Berrio (loading point for Medcllin) 14,100 16,000 La Dorada (rail point at head of Lower River) 29,000 37,100 Girardot (rail point for Bogota, Ibague, and entrance to Upper River) 24,300 32,400 1 500 1,400 Coffee constitutes about 85 per cent of the export freight, and cacao and hides rank next in importance. Import freight consists largely of general merchandise. The movement of cattle forms an important part of the river traffic, it being estimated that no less than 100,000 head of cattle are handled annually. During 1919 exports of coffee were estimated to be at least 25 per cent hi excess of those for any previous year, and it therefore seems safe to calcu- late that export freight was at least 25 per cent greater in 1919 than in 1916. Judging from the heavy buying in the United States, the volume of import freight was nearly twice as great. FREIGHT RATES. A flat rate of 21.65 Colombian dollars per metric ton is charged for shipping coffee from Girardot to either Puerto Colombia or Cartagena and delivering it alongside steamer at pier. This rate does not include the fluvial tax of 1.60 dollars. Rate schedules allow a discount to be made to shippers of 1,000 or more sacks of coffee, and in the past large shippers have secured big discounts by means of prearranged contracts with the steamship agents. In 1918 preferen- tial freight contracts were prohibited by law. Freight rates on coffee for export are lower than the rates on any other commodity. Other rates vary greatly and are different in the Upper and Lower Rivers for any given article. Rates for down- river freight are 25 per cent lower than those for up-river freight. The minimum rate between any points is 1 Colombian dollar, and no shipment for less than 3 dollars is accepted. A loading and un- loading charge of 80 cents per ton is made irrespective of the class of cargo, with the exception of heavy lifts, for which an extra charge is made. Storage is at the rate of 2 dollars per ton per month. Jewels and other especially valuable commodities pay at the rate of f per cent of their value either way above Puerto Berrio, and per cent below that point. A 200 per cent excess is charged on dyna- mite and explosives, 100 per cent excess on inflammables (except 208 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. matches and petroleum), and 50 per cent excess on alcohol, caustic soda, etc. Excess weight charges are figured on a basis of 5 Colombian dol- lars on all packages weighing more than 500 kilos and measuring over 1 cubic meter. Weights in excess of 2,000 kilos or of more than 4 cubic meters in size are charged 10 dollars for each unit of excess measurement or fraction thereof. Excess weights of 5,000 kilos or over take an excess charge of 15 dollars. A discount of 10 per cent is allowed on shipments of native raw cotton, wool, fibers, coal, lumber or wood, starch, butter, wheat, horn, mats, coffee, cacao, imported bottles, cement, sacks, print paper, ana machinery and tools for agriculture, mining, and industries. Ma- terials and equipment for schools and religious organizations are allowed a discount of 30 per cent. A discount of 50 per cent is allowed on domestic rice, onions, potatoes, "panela" (brown sugar), fish, bananas and plantains, corn, vegetables, coconuts and other fruits, tagua, coal, asphalt, mineral products in bulk, seeds, and nat- ural or chemical fertilizers for export. VOLUME OF IMPORT BUSINESS AT BARRANQU1LLA. It is difficult to estimate the total amount of imports actually handled by the merchants of Barranquilla, because statistics show only the grand total of imports through the customhouse and from this total must be deducted the merchandise intended for such in- terior trade centers as Bogota, Medellin, and Manizales. Having made these deductions and calculated the population of the com- mercial district of Barranquilla, it may be estimated that approxi- mately a fourth of the merchandise imported through Barranquilla is for either Barranquilla merchants or their clients in the ulterior. Merchandise imported through Barranquilla in 1917 amounted to 39,683 metric tons, valued at 13,621,206 Colombian dollars, and in 1918 to 22,302 tons, valued at 13,133,840 dollars. About 70 per cent of the imports consists of cheap cotton goods, the remainder being largely machinery, hardware, builders' hardware, iron sheets, rods and wire, paper, cement, resin, paints and oils, caustic soda, medicines, automobiles, office fixtures and appliances, and wines and liquors. Most of the Barranquilla merchants do a general importing busi- ness and handle a wide variety of merchandise, with cotton textiles as their principal line. There are at least half a dozen of these houses that have a capital of more than $300,000 and as many more with a capital of over $200,000. The only specialty houses are a few that handle hardware and allied lines. Each importer has his own group of clients in the interior whom he supplies with stocks of general merchandise and from whom he buys coffee, hides, cacao, tobacco, and other products for export. His clients' accounts generally run from one crop season to the next the coffee harvest season, May and June, being the buying and settlement period. Before the war, the Barranquilla wholesalers imported most of their merchandise from Europe. Hardware, paper, and chemicals came from Germany; textile machinery from England, and other machinery from Germany; textiles from England; fancy dry goods from France; jewelry from France and Switzerland; liquors and ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 209 oils from Spain. Most of the native produce coffee, for example was sold in New York. During the war Barranquilla importers were forced to buy from the United States, and, when once introduced, American merchandise became popular in the Barranquilla territory. CARTAGENA AND COMMERCIAL DISTRICT. LOCATION AND TOPOGRAPHY. Cartagena, the capital of the Department of Bolivar, is a seaport on the northwest coast of Colombia, 63 miles southwest of Puerto Colombia, and has a population of 51,382 according to the census of 1918. At one time it was the principal seaport of Spanish Amer- ica, but it has suffered a decline commercially. Barranquilla sur- passes Cartagena in commercial importance, handling four times the amount of business in imports and exports. The Bay of Cartagena is 9 miles long by 4 miles wide. For- merly there were two entrances, the larger and more practical en- trance, called ''Boca Grande," immediately south of the town, being closed by the Spaniards in early colonial times as a defense measure against pirates and hostile fleets. "Boca Chica," as the southern entrance to the harbor is called, is about 8 miles distant from the town of Cartagena. This channel is so narrow and tor- tuous that the services of an experienced pilot are necessary. En- trance and departure from the harbor take place only during the hours of daylight. To the southeast the bay extends into shallow water or swamps more or less congested with marine growth, through which there are many narrow channels; these are used by the canoes of the Negroes who traffic with the many small villages bordering the mainland. Navigation is carried on by means of small sailing canoes and large dugouts, some of which carry two masts, schooner rigged, and even possess cabins aft. These craft bring in the products of the country to the public market of Cartagena. Hundreds of these canoes are seen on market days. The coast to the north and north- east is composed of irregular hills, which extend as far north as Puerto Colombia and as far inland as the Lago de Guajaro. These hills are covered with a sparse second growth of woody tropical vegetation, and during the dry season of the year present a sterile and uninviting prospect to the traveler. The Lago de Guajaro is surrounded by a large level plain, subject to overflow during the rainy season. The soil is poor and unsuited for agriculture. To the south and southwest are low hills rising from the swamps, the for- mation being decomposed shale with outcroppings of limestone and sandstone. The good agricultural region begins some 25 miles south of Car- tagena. Here the country is a level plain, which extends for a dis- tance of 60 miles until the hills north and west of the Cauca River are encountered. The "Dique," or natural canal, from Cartagena to Calamar on the Magdalena River, may be termed the northern boundary of the good agricultural lands. Just south of this " Dique" are found the sugar plantations of Sincerin, where cane is grown with- out irrigation all the year round, and many fertile areas devoted to 37558 21 14 210 COLOMBIA: A COMMERCIAL AND INDUSTRIAL IIAXI>P,O<>K. cattle raising and planted in Para grass. Much of this fertile land is subject to overflow in the rainy season. There are no roads through- out this agricultural region, all transportation being carried on by means of pack mules. CLIMATE AND RAINFALL. The climate of the entire district of Bolivar is very tropical, the temperature ranging from 80 to 94 F., with high humidity, but tem- pered by the trade winds on the coast during the winter months. Throughout the coast region there are two seasons, the wet, or rainy season, from April to October, and the dry, or winter season, from November to March. The average total rainfall is approxi- mately 44 inches on the coast in the Cartagena district. This rain- fall is not always to be depended upon, varying greatly, with long periods of drought, during which crops suffer. Usually the spring equinox brings about two weeks of light rams, which are depended upon to mature the so-called winter crops. The Caribbean coast of Colombia is extremely unhealthful; tropi- cal diseases of all sorts are prevalent and there is much malaria, tropi- cal anemia, dysentery, etc. Yellow fever is a constant menace. POPULATION AND LIVING CONDITIONS. The characteristics of the people inhabiting the coast region of Colombia differ greatly and have a decided effect upon living con- ditions and the demand for goods. Probably less than 10 per cent of the inhabitants are of pure white blood. These are descendants of the Spanish colonists who settled in Colombia during the three centuries following the conquest of the country. They form the gov- erning class and, on the whole, are well educated; many of them have traveled extensively. The major portion of the population of the coast region, however, is composed of Negro descendants of the slaves imported during colonial days for work on the defenses of Cartagena, in the mines, and on the plantations. In the Rio Atrato and Rio Condoto regions, on the west coast, the Negroes present almost a pure type and are estimated at 150,000 in number. The Negroes have become mixed, to some slight extent, with the native Indians. The "mestizos," representing a mixture of Spaniard and Indian, constitute the numerically small middle class of the coast region. These latter are the artisans of the country. In the interior of the country, however, the mestizos represent the greatest percentage of the population. This is a significant fact and implies a persistence of type that may largely determine the character of the Colombian people, unless the slowly increasing white element is reinforced by immigration. This group, as a whole, offers an extensive market for the cheaper grades of merchandise now being imported into the country. Living conditions vary greatly. Most of the people live in a very primitive manner, even in the towns. Little attention is paid to sanitary measures. The wealthier people are building homes in which are found every modern convenience and sanitary appliance. On the outskirts of Cartagena are two residence districts, " La Manga" on the south and "El Cabrero" along the ocean beach to the north, both constructed within the past 15 years outside of the ancient walls of ECONOMIC CHARACTEEISTICS OF NINE COMMERCIAL DISTRICTS. 211 the city. Many fine residences are seen, combining modern artistic architecture with comfort in the tropical climate. In the smaller towns the poor people live generally in palm-thatched huts with dirt walls, the hut consisting of one room and a lean-to for cooking. The example set by the Canal Zone authorities has had its effect in stimu- lating the desire on the part of the more educated class for better sani- tary arrangements and health measures, and it may be predicted that, in the near future, some real work in this connection may be carried out by the Colombian Government. EDUCATION. It is estimated that 70 per cent of the people in the coast region are illiterate. Attendance in public schools is free but not obligatory. In 1912 the Department of Bolivar had 208 public schools and 34 private schools, with a total enrollment of 12,800 pupils, or 2.77 per cent of the population. Out of total appropriations for all purposes in 1912 of 548,728 Colombian dollars (1 dollar=40.9733 United States currency), the Department of Bolivar had a school budget of 191,218 dollars, or 34.84 per cent of the total expenditure for the year. The institution of higher learning in the Department of Bolivar is the departmental university at Cartagena, the largest in the country, with about 250 students enrolled in the courses of law, medicine, and philosophy. CHARACTERISTICS AND TRADE RELATIONS OF BUSINESS MEN. The business man in Cartagena (as elsewhere in Colombia) repre- sents a very high type. He is well informed on all subjects and very much interested in international affairs, showing keen judgment and knowledge. Modern offices, containing cabinet files, adding machines, typewriters, etc., present an atmosphere of activity and business very pleasing to the visitor. Great changes are taking place in all lines of business. Show windows are being installed where goods may be attractively displayed, sample rooms are fitted out with an eye to the values of display of goods, and there is, conse- quently, an increasing demand (formerly supplied by France) for show-window fittings, show cases, display counters, etc. Prior to the, war, the influence was mainly European, because of the Colombian's travel in European countries and his business interests there; this tendency is manifested in his liking for the French styles of architecture, furniture, clothing, etc. Of course, the compatibility of the Latin races was also a factor in this preference. Although at that time the merchant of Cartagena looked upon New York as the first market for his exports of coffee, chicle, ipecac, hides, gold, and platinum, he purchased the bulk of his merchandise in Europe chemicals, hardware, dyes, from Germany; textiles from England. During the war New York became the center of Colombia's export and import business, as well as the financial center, furnishing about 90 per cent of the imports of Colombia and taking 93 per cent of its exports. Thus there resulted a balance of trade of about $13,000,000 in favor of Colombian exporters. When the Cartagena merchant was forced to buy in the United States, he found, notwithstanding many difficulties and misunder- standings, that such an arrangement was a very good one, chiefly 212 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. because he had his money in New York, but also because of the proximity and the resulting rapid delivery of goods. What the importer especially desires to-day is that more attention be paid to his needs by the American manufacturer and exporter. Colombian firms established in New York, which act as export commission merchants and also purchase and export goods for their own account, constitute a real benefit to American trade. Through them accurate credit information is obtained; American manufac- turers and jobbers receive needed information about Colombian con- ditions; and (these firms being on the ground in the United States) better selections are made of new lines for introduction and sale in the Colombian market. INCREASING DEMAND FOR NEW GOODS. A very modern tendency is noted in the increasing demand for ar- ticles of manufacture not previously used in the country. Better cloths, better quality and variety are now being purchased. The people like American styles, and are interested in new things. Wages and purchasing power are increasing. The demand for new goods is being felt in the following lines: Textiles, household utensils, furni- ture, show cases, office equipment, window display equipment, under- wear and hosiery, lighting fixtures, baggage articles, leather goods, toilet articles, medicines, and heavy chemicals for manufacturing purposes. BUSINESS METHODS HANDLING OF IMPORTS AND EXPORTS BY SYRIANS. Practically all commercial business is handled in Cartagena by six large houses which are importing wholesalers and exporters of the products of the region, buying export materials for their own account in the interior through well-established agencies and branches. Sev- eral of these large firms are also private bankers, and interested in local manufacturing and agricultural enterprises to a very consid- erable extent. Forming a powerful factor in merchandising in Cartagena are the Syrian merchants, who have competed directly with the old-estab- lished Colombian houses. By means of intense industry, economy, and their own peculiar system of agencies, branches, and traders in the interior, more especially in the Rio Atrato platinum region, they have been able to win a good half of the entire business of this com- mercial territory. There is not a town in the interior of 250 people where a Syrian merchant can not be found. These men are seen on all trails with their packs of goods for trade and barter. They are found in the almost inaccessible jungles of the Rio Atrato, where they trade for platinum, gold, tagua, balata, chicle, etc., with the Indians and Negroes, traveling by canoe when they can and at times packing their goods with men over short ranges of hills from one small stream to another. The Syrian merchants always specialize in cotton-print goods, in which line they are experts. The larger houses are also importers of general merchandise in demand in the country. In spite of the com- petition with Barranquilla importers, the Syrian merchants of Car- tagena have been able, through branches established in the interior, to maintain a fair wholesale trade with towns up the Magdalena ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 213 River, and as far east as Ocana and Bucajamanga in Santander. These people have evolved a system of long credits especially adapted to trade with the interior, and the percentage of loss through bad accounts does not exceed 6 per cent. Other industries are also being invaded by the Syrians. They are interested in agriculture, contracting, and mining. A large saw- mill and cedar plantation near the mouth of the Atrato River has been established by them. Cedar and mahogany lumber is brought to Cartagena and Barranquilla by means of a seagoing tug and lighters from the Atrato River to lumber yards for retail sale. Rub- ber is also being planted. Prior to the war the Syrians purchased their goods principally in Europe, making annual trips to buy the year's stock. During the war business was with the united States, but there is a decided desire on the part of these people to return to European methods and mar- kets as soon as possible, on account of the credit terms formerly secured. Long credit terms are the fundamental principle of their business methods. They are shrewd buyers and traders, and very prone to speculate and overstock if opportunity offers. On the whole, these people may be considered a good element for the country. They adapt themselves absolutely to the customs and living conditions 01 the country, and are investing their surplus capi- tal in cattle, mines, and agricultural lands and other enterprises offering safety and large returns. COMMERCIAL TERRITORY OF CARTAGENA. The town of Magangue, with a population of 14,076, Zambrano, with only 2,702 inhabitants, and Mompps, whose population is 15,435, are situated in the Department of Bolivar, on the Magdalena River, but are tributary commercially to Barranquilla on account of direct communication by river steamer. Mompos is the most important, commercially. It is the center of a rich agricultural and cattle-rais- ing district and also a depot for such river products as tagua, corozo nuts, etc. Mpnteria, Cereta, and Lorica are river ports on the Sinu, and all traffic is with Cartagena. Tolu is a small seaport on the Bay of Morrosquillo and is the outlet for all traffic with the center of the Department, communication with Cartagena being by means of gas- oline launches of about 60 tons burden. Communication with the important towns of Turbaco, Arjona, Soplaviento, and Arenal is direct by the railway from Cartagena. Soplaviento and Arenal are situated on the Dique at the point where it is crossed by the railway from Cartagena to Calamar, and have the distinction of being in com- munication by rail and by water with Cartagena, and by water with Barranquilla, the Dique entering the Magdalena River at Calamar. Arjona is also the rail point for the sugar lands of Sincerin, commu- nication being by means of automobiles for passengers and by pack mule for freight, etc. There is no wagon road from Arjona to Sin- cerin, but during the dry season the level country can be traversed by automobiles without difficulty. In the rainy season, travel to Sincerin and the country south is by saddle and pack animals only. 214 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. HIGHWAY TRANSPORTATION AND ROAD CONSTRUCTION. There is only one wagon road in the Department of Bolivar. This road parallels the railway from Cartagena as far as La Viuda, a small town on the railway, east of Arjona. This road is of dirt, sur- faced with "caliche," a decomposed limestone formation which is the predominating surface formation in this entire region north of the Dique. This road is little used by wheel traffic, there being few wagons or even carts in the country, although it is coming to be used more and more by automobiles from Cartagena. An automobile stage line has been recently established between Cartagena and the town of Turbaco, a distance of 24 kilometers (15 miles) , and is popu- lar on account of its affording such a rapid and easy mode of transpor- tation to and from Cartagena. The charge is SI per person each way. Engineers are working out the plans for a continuation of this road to connect with Savanalarga, the present terminus of the Barran- quilla highway. The Department of Bolivar is also surveying a new wagon road to connect with river navigation on the Rio Sinu by way of Sincerin, San Juan, Carmen, Corozal, Sincelejo, San Andres, Sahagun, Chinu, Cienaga de Oro, and Monteria. This road is con- sidered a very important transportation measure and will connect all the important towns in the interior of the Department with Cartagena and also furnish land transportation to the rich region of the Rio Sinu. The entire distance is over level country and no great difficulty should be encountered in the construction of this new road so far as topography and grades are concerned. Heavy work will be involved in clearing away the jungle, and the mam difficulty will be the type of construction necessary to avoid damage and inter- ruption to traffic caused by overflow water during the rainy season and following heavy rains in the hills and mountains of the interior. IMPORTANCE OF THE "DIQUE." The "Dique" is a natural canal or river channel, connecting the Mag- dalena River with the ocean, approximately 15 miles south of Carta- gena. It is an irregular channel about 60 miles in length, which, during and immediately after the high-water stages of the Magda- lena River, carries excess water to the swamps which extend over a great area to the south of Cartagena. The main channel is more or less defined, as there is never sufficient current to cut new channels, but the growth of water plants, caving banks, etc., have gradually filled certain places so that, during low water, this important high- way can not be used except by small canoes and freight boats. Dur- ing the rainy season there is sufficient water in the Dique to float river steamers from the Magdalena River to Cartagena, although even then difficulty is encountered in traversing the 15 miles from the outlet of the Dique, at the ocean, through the swamps up to Carta- gena, because of the shallow water in these series of swamps and the constantly changing channels. Another factor making for the neglect of this channel of com- munication has been the Cartagena-Calamar Railway, which is used for traffic from Cartagena to the Magdalena River at Calamar. This line, for certain reasons connected with the original concession, climbs a series of high hills at Turbaco, that town being situated at a considerable elevation, and the operation of the line is difficult and ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 215 costly; only light loads can be handled with the present type of roadbed and locomotive equipment. There is no doubt that the Dique could easily have been made practicable for river-steamer navigation from Calamar to Cartagena. Also, the upkeep expense would not have been high to maintain a permanent channel. In Spanish colonial times the Dique was used lor all traffic and was navigable for quite large boats. At present the Ingenio Central (Sugar Co. of Sincerin) in combination with the departmental and national governments has a small dipper dredge at work on the Dique at Sincerin, where a small port has been con- structed to handle the machinery, supplies, and products of the sugar mill. A rail line from the plantation has been extended to the Dique (a distance of about 2 miles from the main buildings of Sin- cerin), loading sheds have been constructed, etc. It is planned to improve the entire channel from Sincerin to the swamps and thence up as far as Cartagena and make this channel navigable for boats of several hundred tons burden. PRESENT RAILWAY EQUIPMENT AND PROPOSED CONSTRUCTION. The Department of Bolivar has only one railway, the line from Cartagena to Calamar, 105 kilometers in length. About four hours is consumed in traversing this distance. The railway was first pro- jected and built by American capital, but was taken over by the Co- lombian Railway & Navigation Co. (Ltd.), an English concern also interested in Magdalena River navigation. The rolling stock at present is very poor and needs repair and replacement. It consists of 10 coaches, 3 baggage cars, and 130 freight cars of box and flat types. The roadbed is of 36-inch gauge, rock ballasted., There are 39 grades, the maximum being 2^ per cent. The heavy grade and sharp curves (70-meter radius) at the approaches to the town of Turbaco make it impossible to pull heavy trains with the type of locomotive equipment and fuel used at present. During the war, wood mixed with coal was used by the line. There are water tanks and coal bins along the route, at 15, 26, 69, and 105 kilometers. Cattle chutes are located at intervals, also, along the line. The shops belonging to the company are at El Espinal, kilometer 2. The equipment includes a small foundry, machine shop, turntable, large water tanks of both cement and wood material, all sufficient for the repair service of the road. Stations on the line are located at Turbaco, Arjona, San Estanislao, Soplaviento, and Calamar. A warehouse is located at Calamar, its loading equipment consisting of 15 tons at20-foot boom radius. However, there are no loading stages at this point for the river steamers, all cargo being handled by stevedores and carriers. On account of the state of national finances and the better fiscal condition of the various Departments, the present tendency is for the departmental governments to built railways, the National Government allowinga fixed subsidy or allotment for each kilometer constructed by each Department. These allotments are financed by the new internal-loan oonds. The Department of Bolivar is now conducting a survey of the proposed route for a new line from Cartagena to Monteria, which 216 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. will also connect with the new route of the railway under construc- tion by the Department of Antioquia. The latter has as its objective the seaport afforded by the Gulf of Uraba. The National Govern- ment will allow a subvention of 15,000 Colombian dollars per kilometer for this new line, and the finances of the Depart- ment of Bolivar are in a condition to warrant the contracting of a large foreign loan for this purpose. The chamber of commerce of Cartagena has also voted the sum of 20,000 Colombian dollars to defray the expenses of the new survey and to stimulate this railway construction. According to the preliminary plans, a light narrow-gauge railway is to be built, the construction and equipment to conform to tne present actual needs of the region and traffic requirements, the preference being for an electric line using Diesel-electric locomotives of light weight. HARBOR AND PORT FACILITIES. The harbor of Cartagena is landlocked, and the channel up the bay to the dock, while narrow, is deep enough for large oceangoing steamers, the average depth being from 30 to 40 feet. The port's growing trade demands better facilities than are now afforded. The present pier and port improvements were completed by an English concern, the Colombian Kailways & Navigation Co., 24 years ago. The wharf located in the bay has three berths. It is 500 feet 16ng by 120 feet wide. A warehouse for the customs is located on the pier; a second warehouse, 305 feet by 40 feet, is used for storing export cargo. Other storage facilities are also afforded. The local bunker capacity of the port is estimated at 3,625 tons. General cargo is discharged at the rate of about 25 tons per hatch an hour, and loaded at the rate of 30 tons per hatch. The nature of the goods to be discharged and the winch equipment of the vessel determine the amount of time required. Inward-bound cargo is un- loaded from the ship to the dock and trucked to the customs ware- house. Railway cars run into this warehouse to take out the released cargo, which is handled by trucks from warehouse to cars and then loaded by hand. Heavy and bulky packages are moved by means of a 15-ton, hand-power crane. Storage capacity at the dock for inward-bound cargo is 3,000 tons; for outward bound, 3,500 tons. Switching facilities are afforded for 12 cars. Cargo is not protected by insurance while on the dock or in sheds. All merchandise is de- livered by the ship to the customhouse, its receipt being entirely controlled by the Government. A charge of $10 per ship is made for sanitary service rendered. The charges for berthing are: Wharfage, $0.18 per gros*s weight of cargo landed; pilotage, $0.01 per net-ton register of vessel; lighthouse dues, $0.05 per net- ton register for each ton up to 100 tons, $0.025 for each ton over 100; tonnage dues, $2 per gross ton of cargo landed. There are no buoy charges. Work on the ship is done by a shore crew furnished by the rail- way company. Usually from 35 to 40 men are employed, although 150 can be supplied on short notice. The regular wage is $1.20 per day of eight hours with $0.30 per hour overtime rate during the day; $2.40 is the wage for night work. The majority of workmen are Negroes and Creoles. A few experienced checking clerks who are em- ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 217 ployed regularly by the railway receive $3 per day and $0.60 per hour for overtime; $6 is paid for night work. The shipowners are responsible for breakage on the wharf if the merchandise is still in ship's tackle, otherwise the customhouse is responsible, and after the release of the merchandise the railway company assumes the liability in case of loss or damage. Unclaimed cargo is disposed of after six months if not cleared by consignees, being sold at public auction. Responsibility of the carrier ceases when cargo is received by the customhouse on the wharf. WATER TRANSPORTATION BY WAY OF SINU AND ATRATO RIVERS. The regions of the Sinu and Atrato Rivers are tributary, commer- cially, to Cartagena. Means of communication are small steamers and motor vessels from Cartagena to the seaport of Tolu on the Gulf of Morrosquillo, at the mouth of the Sinu River, and thence to the port of Cispata and up the Sinu River as far as Monteria, when the stage of the river will permit; also from Cartagena to Quibdo, on the headwaters of the Atrato River, via the Gulf of Uraba. Vessels en- gaged in this traffic call at Tolu both ways, but the same boats do not make the Sinu and Atrato runs. The course is out to sea through the "Boca Chica" and across the Gulf 'of Morrosquillo. During the dry season of the year these small steamers, drawing not over 6 feet of water loaded, can not go up the Sinu River farther than Lorica, and at times of exceptionally low water, not even to Lorica. When these boats can not reach Monteria, which is the chief town of the region, traffic is continued by means of small launches and large canoes. The mouth of the Sinu does not, however, present the same condition of sand bars, etc., as do the mouths of the Atrato and Magdalena Rivers. The Atrato is a much larger stream than the Sinu and receives abundant water, being in the region of heavy rainfall, but while the river itself is very deep and navigable for even much larger vessels than those used at the present tune, its mouth is obstructed by sand bars dangerous to navigation. During exceptionally dry seasons even these small boats can not at tunes enter the river. Sometimes boats are held up for 10 days at a time, and occasionally they are forced to stay in the river for months. The coast is also dangerous, with no aids to navigation. Accidents are frequent, and several boats have been wrecked on the coast and in the river. About two trips a month is the best that can be done by one boat under the most favorable conditions of weather and high water. Passenger accommodations are rather limited in regard to facili- ties afforded. First-class cabins are provided, .but contain nothing in the way of furniture beyond a canvas cot. Travelers must furnish their own bedding, towels, and other necessities. The food served on board is very coarse and poorly prepared. The traveler will do well to provide a stock of tinned provisions, bottled water, etc. A good mosquito net is essential. In Lorica, Monteria, and other Sinu River points hotel accommodations ashore are rather primitive. The food is poorly prepared and insanitary conditions are the rule rather than the exception. The climate is tropical and insects abound in large numbers. Mosquitoes are a constant source of dis- comfort and danger. The Atrato River is still more primitive. There are no large towns until Quibdo is reached, although there are 218 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. numerous Negro and Indian villages along the river. Here the Negroes and Indians live in an aboriginal state, the Indians being wholly uncivilized. As a rule, they are peaceful and inoffensive ii not disturbed. Quibdo, located on the east bank of the Atrato River, has a popu- lation of about 6,000. The town has always been very rich in plati- num. Rains in this region are incessant, causing frequent floods, so that agriculture can not be carried on successfully. Various lands of rubber are found, as well as the ipecac root and tagua. OCEAN AND MAGDALENA RIVER FREIGHT SERVICE. The vessels of nine steamship companies touch at Cartagena. The increasing coffee trade and the amount of freight offered make this an attractive run for steamship companies. However, large freighters coming to Puerto Colombia or Cartagena are sometimes forced to leave without the expected cargoes of exports, such as coffee, etc. This was the case during three months in 1919, when the condition of the Magdalena River rendered it impossible to deliver export freight at the coast, the river points being literally congested with coffee and other exports during this time. Warehousing be- came a problem and goods were- damaged by being left out in the weather. AGRICULTURE. Sugar cane grows without irrigation in the Cartagena region, an average of 60 tons being produced per hectare (2.471 acres) per annum. Some cane fields in the district are 15 years old and are still producing without fertilization or replanting. Good sugar land may be purchased for an average price of $1.50 per hectare, the cost of clearing and fencing being not over $20 per hectare, though this estimate does not include stumping and plowing for immediate planting. There is only one large sugar plantation using modern machinery in the entire coast region. This is the Colombian Sugar Co., with plantations and mill at Sincerin, known locally as the Ingenio Central. The company has a capital of $2,000,000 and employs from 3,000 to 5,000 men, according to the season of the year. The total extent of the property, including raw lands and cattle pastures, is approx- imately 18,000 hectares (44,478 acres). Up to the present time a total of $1,400,000 has been invested, and plans are under way to increase the grinding machinery with three new and powerful units. An average of 2,000 hectares (4,942 acres) of cane are grown yearly without irrigation. The average production is 40 tons per hectare (16.19 tons per acre), though a production of 60 tons per hectare (24.28 tons per acre) is often obtained. The value of the plant is estimated at $1,500,000. Its capacity is 1,000 tons of cane, and an average of 100,000 hundred weignt is turned out in refined sugar per annum. The percentage of extraction on the basis of weight of cane is over 9 per cent. The management of the Colombian Sugar Co. is very modern and efficient in every respect. The plantation has a complete rail- way system for handling cane and for shipping by way of the Dique. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 219 Gasoline tractors of both the wheel and caterpillar types are used for plowing. Planting of cane is done by "colonos" or renters, accord- ing to the well-known Cuban system. A "colono" is allotted so much cleared land and, in many cases, is practically financed by the sugar company, since all of his supplies are bought from the com- pany's commissary store established for the purpose. Money is also advanced to planters for the purpose of meeting their pay rolls, though at least 75 per cent is taken in merchandise by the workmen. The cane is paid for at the rate of $2.50 per ton delivered at the mill, all expenses of plowing by machinery, transportation to the mill, etc., being charged to the account of the "colono." A good yield is 60 tons per hectare, though the yield is some tunes as low as 18 tons and often amounts to 30 or 40 tons. New sugar lands are to be opened up about 6 miles farther south, near the town of Maria la Baja, where better lands are found for the cane, the soil retaining more moisture during the dry season than farther north near the Dique. This condition increases still farther to the south and southwest of Sincerin, and it was noted in March, 1919, after five months' lack of rain, that the Para grass near Maria la Baja was green and the cattle fat and sleek, while around Sincerin the pastures were dry and yellow, the cattle being forced to move to the river and the Dique for green feed and water. These new lands of the Colombian Sugar Co. will necessitate about 6 miles of new railway construction, trie material for which is now on the ground. Already large quantities of sugar have been sold to the Panama Canal Commissary Department, one order aggre- gating 1,000,000 pounds. Sincerin has the advantage of water trans- portation to tidewater as well as railway connection with the Mag- dalena River, the highway of the interior. Rice has become one of the great staple articles of food in the coun- try and is used more and more throughout South America. At the present time a very poor grade of native rice sells on the open market, in small lots, for $12.50 per 100 pounds at wholesale. The price varies from $11 to $14 per 100 pounds according to the season of the year, market conditions, etc. Rice from the United States is still being imported in large quantities, in spite of the fact that this grain does very well in this region, with very little preparation of the soil. A modern concrete rice mill is being constructed near Cartagena at an outlay of about $10,000. The building is now complete, with the exception of the roof. Because of the war, the arrival of the material for the latter, as well as the machinery for the mill, has been delayed. The mill is situated on the bay, where a wharf will be constructed to receive the raw product and to ship the cleaned rice into the interior of the country, where better prices can be obtained than in a foreign market. The decorticating capacity of the mill will be 2,000 barrels of 160 pounds each, in 24 hours. Rice runs 50 per cent chaff by bulk. This company plans to sow about 2,000 hectares (4,942 acres) of rice in 1919, and gradually increase this acreage to 8,000 hectares (19,768 acres). An attempt was made during 1918 to plant rice on a large scale south of Sincerin. A 25-horsepower steam 220 COLOMBIA: A (COMMERCIAL AND INDUSTRIAL HANDBOOK. tractor, disk plows, harrows, etc., were imported for the purpose. There were 1,482 acres planted in rice, but the winter rains failed and the grain got no water during five months. The crop was a failure, only about 20 per cent being harvested, but notwithstanding these conditions, the small amount produced paid for the machinery and left a small surplus. It is believed that, for certain varieties of rice, some sort of irrigation must be provided, such as diking for the control of flood waters in reservoirs. COTTON. Cotton is selling in Medellin, for local mill consumption, at 60 cents per kilo (2.2 pounds). This contains the seed and has to be cleaned at the factory. Local mills on the coast and in the interior can not get enough of the native cotton, though they have offered all sorts of inducements to planters to grow it. ' Colombian cotton is very fine and of long staple, and for this reason is not well liked by native spinners, since they manufacture only rough and cheap grades of cloth. Although a considerable area has been planted from tune to time, little progress has been made in real cultivation of this important crop. At present the cotton is planted without any previous preparation of the soil, with the ex- ception of the cutting down and the burning of the brush. Weeds are chopped out with machetes. During the first three years corn is planted between the rows of cotton plants. Replanting is not necessary for five years. One thousand pounds per hectare are produced the first year, 2,000 the second, and an equal amount the third. American seed is largely used, and it is the opinion of ex- perts that planters would do much better to plant the native varie- ties, which are of long staple, of high tensile strength, and much less subject to damage by insects. The staple is If to 1 inches long, when grown from Mississippi seed. It resembles sea-island cotton, but the fiber, which is long and silky, is said to be too fine for local mills. In 1914 Colombian cotton sold in Liverpool for 24 cents per pound. The production in that year was 789,390 pounds of raw cotton. During 1917, $23,777 worth of Colombian cotton was shipped to the United States. At the present time there are not sufficient staples grown in Colombia to supply the local demand without resort to importation. However, production of any staple on a large scale would necessitate the establishment of market con- nections with either the United States or the countries of the west coast of South America. In the vicinity of the town of Carmen, tobacco is grown for export as well as for domestic consumption. This region produces a very excellent grade of tobacco, which finds a ready market in France and in the United States, although scientific methods of se- lection of seed, curing, etc., are not known or used in any manner whatever, the tobacco being planted with a sharp stick and given very little attention in the way of cultivation. Occasionally the weeds are chopped out. In 1919, 341,217 pounds of tobacco, valued at $35,683, were exported to the United States from Cartagena. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 221 BANANAS AND COCONUTS. Bananas and coconuts are the principal articles of diet of the common people in the country and smaller towns. Every small hut or house has its banana plants for home consumption. Two varieties are grown the ordinary banana, which is eaten raw, and the plan- tain, which is cooked in many different ways. The latter is probably the article of greatest production in the region. In Bolivar there are no plantations growing bananas for export. Coconuts do well along the coast west of Cartagena, and there are a number of small groves owned by well-to-do Negroes. This in- dustry could be greatly increased throughout the coast region from Cartagena to the Gulf of Uraba. During 1916 coconuts to the value of $35,777 were exported from Cartagena, going principally to Panama. During 1917 only $18,626 worth of nuts were exported, according to official reports, though a considerable trade in nuts is carried on by small coasting schooners that run up into the Gulf of Uraba and traffic with Cuba and Panama. In 1918 the value of the coconuts exported to the United States and the Canal Zone did not reach $4,000. At Medellin and elsewhere in the interior, coconuts sell for 12 cents each at retail, whereas the local market price at Cartagena is 6 to 9 cents each. The meat is used to mix with rice for cooking, and is a staple article of diet for all classes. Certainly there is opportunity here for the development, on a large scale, of both coconut and banana culture for export. Each coco- nut palm produces $1 net per year after reaching the age of six years, and it is calculated in selling groves that each palm in production is worth $5, producing 20 per cent net on that valuation. AGRICULTURAL AND MILLING MACHINERY. Of the total of $2,000,000 worth of machinery imported into Co- lombia yearly, only about 10 per cent is agricultural machinery. Plows, except at Sincerin, are practically unknown. American plows were first tried out near Monteria, on the Sinu River, but proved a failure because of lack of knowledge in their use. Local planters argue that plows are not necessary in this region, the land being so ricn as to need no cultivation. The introduction of modern agri- cultural implements and machinery into this district will be diffi- cult, and considerable demonstrating will have to be done in order to convince the people of the advantage of modern methods. More capital and a wider knowledge of the opportunities for exportation of products are needed in order to further agricultural development. At the present time there is a limited market for milling machin- ery for cereals, rice, oil seeds, and small sugar mills. Since wood is very cheap and plentiful, small boilers are preferred, although, on account of the difficulty of transporting heavy pieces of machinery into the interior of the district, fuel-oil engines are occasionally selected. The oil is secured from the refinery at Cartagena. Later, when cotton is grown more extensively in the Caribbean district, cotton gins will also be in demand. At the present time the chief tools and implements used are machetes, axes, and a few broad, heavy hoes called "coas." 222 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. IMMIGRATION NEEDED LABOR LAWS. Immigration is needed, not because there is any real scarcity of labor but because foreigners will teach the people to be workers. Improved sanitary conditions will come with development. When young, the average Colombian readily learns to handle machinery and can be taught weaving, etc. The women are quick and patient workers in the textile mills, and are more constant than the men. On heavy work, such as railway construction, mining, and oil-well work, the men average two days of actual work a WCCK. The aver- age is better in the interior. The cities possess a small class of fairly good cabinetmakers and native carpenters, blacksmiths, and other artificers. Excellent finishing work for interior decorations is done with native hardwoods. The average wage paid to agricultural la- borers in the Department of Bolivar is $0.60 per day. The wage is based on the piece-work system. Stevedores, dock workers, and other similar laoorers make from $0.80 to $1.20 per day. In 1915 the Government passed a workmen's compensation law. This new law benefits men employed in electric-light plants, street railways, waterworks, railways, breweries, distilleries, match fac- tories, building and construction trades, mines, quarries, manufac- turing plants using power, and Government work of all kinds. Em- ployers of labor may also protect their men by taking out " blanket" policies with insurance companies. During recent years Colombia has experienced labor strikes which have been attended with more or less violence. In January, 1918, there were general strikes throughout the coast region along the Carribean coast. Martial law was declared by the taovernment in Santa Marta, Barranquilla, and Cartagena. The movement was pri- marily due to political reasons, and also grew out of war conditions, since the shutting off of ocean traffic caused widespread lack of em- ployment. During the spring of 1919 there were many local dis- turbances along the Magdalena River among railway workers, stevedores, cargo handlers, and woodchoppers. These strikes have always been settled by the granting of a slightly increased wage to the workers. FOREST PRODUCTS OF REGION WEST OF CARTAGENA. The natural wealth of the forest region west of Cartagena is, no doubt, enormous, but this potential wealth is scattered over a wide area and is practically inaccessible for exploitation. The Atrato River region, on the Pacific side, is said to contain much valuable cedar, but the natural difficulties and lack of transportation facilities make exploitation on a large scale impossible. The present supply satisfies the local demand. During 1918 Cartagena exported to the United States the following quantities of forest products, all of which were gathered by the Negroes and natives of the interior, the work extending as far as the headwaters of the Atrato River: ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 223 Articles. Pounds. Value. Articles. Pounds. Value. B 1 m o aiba 7,365 $3,804 Ivory nuts (tagua) 4,063,011 $156, 819 11, 401 6,148 Palm-kernel oil 65,076 9,530 i i 200 639 71,887 Rubber (balata) 395,318 174, 761 ' 86.585 41, 450 Sisal fiber 20,882 2,671 47, 181 98,564 Tannic extract 733, 751 44,223 P i Feet. NUTS AND MEDICINAL PLANTS. Another product that deserves mention is the nut of the corozo palm. This palm is the same as the "cohune" of Central America and is found in great abundance throughout the Bolivar plains and as far west as the Atrato River. There is an unlimited supply of raw material. When pastures are cleared for cattle the corozo palms are left for the gathering of the seeds. There is an opportunity for a small factory for this industry at Cartagena, or at Monteria on the Sinu River. The gathering of the nuts presents no particular diffi- culty. Two harvests are obtained yearly after the palm has reached maturity, which is attained at the age of four or five years. The nuts are very rich in food value, the oil having been used by the aborigines for centuries. The extraction runs about 25 per cent of pure oil per weight of raw nuts after drying. About 25 pounds of the nuts, which grow in large bunches near the ground, can be expected from each palm, annually. The tagua nut is one of the principal articles of export of Cartagena. The chief supply comes from the region of the Atrato River to Cartagena for export, although the Pacific coast of Colombia exports large quantities also. The forests of Bolivar and the regions of the Sinu and Atrato Rivers, particularly the latter, are rich in medicinal plants, such as the ipecacuana, or the ipecac of commerce, sarsaparilla, cinchona bark, or quinine, cascara sagrada, and many others. About $50,000 worth of these products are shipped each year from Cartagena to the United States. There are also several palms that produce gums and varnish material, such as the famous ceroxylon palm, but, so far, little or nothing has been done in this region toward the collection of these gums in marketable quantities. DEVELOPMENT OF CEDAR INDUSTRY. A firm of Syrians has established a large sawmill 30 miles up the Atrato River and 6 miles from the coast. It owns 5,000 hectares (12,355 acres) of land along the river. Since the most accessible cedar has been cut, the company has planted 20,000 young trees along the river, and plans to increase this number by 10,000 trees each year, in order to insure a future source of supply of cedar logs for the mill. The Negroes along the river have also been induced to plant from 5,000 to 6,000 trees annually. The present supply is irregular, and not enough logs are delivered to keep the mill work- ing continuously. Owing to the fact that the river branches usually become dry in December, logs can not be handled until the flood sea- son. Considerable work has been done at the mill to afford access to the river, a heavy fill having been built for this purpose. Approxi- mately $250,000 has already been spent on this property iby the 224 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. owners since the erection of tho mill in 1906. It takes 10 years' time for the seed of the cedar to grow to proper size for lumber in this region, where the tree is native. A mil-grown cedar 10 years old is valued at $10. The cost of cedar delivered at the mill is $0.01 per board foot. The retail price at Cartagena is $0.06 to $0.07 per board foot. The estimated monthly consumption of lumber at Caribbean coast points is, in board feet, as follows: Cartagena, 35,000; Barranquilla, 80,000; and Puerto Rico, 100,000. There is also a market at Colon, Panama, and Curacao. The owners of this property claim that there is room for expansion. Three waterfalls, from which an aggregate of 5,000 horsepower can be developed, are situated 4 miles distant from the present mill. PETROLEUM. In spite of the many surface indications of the presence of petro- leum throughout the coast region from Puerto Colombia to the Atrato River, drilling operations have been unsuccessful up to the present time. In the Sinu district, $750,000 was spent by an Ameri- can oil company without definite results. Other drilling work near the town of Turbaco also resulted in failure to bring in oil in paying quantities. Judging from the consensus of opinion of several engineers who have studied the territory, it is believed that no good wells will be found on the flat coast country, and that future drilling operations will have to be carried on in the district farther south 01 Cartagena, back of the line of foothills just north of the big bend in the Cauca River. There are many rumors of petroleum indications in the Atrato and Choco river regions, samples of high-grade crude oil being brought in by natives frequently. Exploration work in these regions would be extremely difficult on account of the very bad climate and the dense jungles encountered everywhere. PLATINUM AND GOLD MINING. The Atrato and Choco Rivers are tributary to Cartagena com- mercially. Therefore merchants in Cartagena are the heaviest buyers of platinum and gold from the placers of these rivers, and also supply the merchandise needs of the region through their agencies estab- lished in Quibdo, Istmina, and Baudo. The development of water transportation of the San Juan River has taken some of this trade away from Cartagena, and the district has also been invaded by traders from Medellin, in Antioquia. PRODUCTION OF 1'LATINUM STIMULATED BY HIGH WAR TRICES. Colombia produces an average of 30,000 troy ounces of platinum per year, practically all coming from the Quibdo district. The high prices prevailing during the war greatly stimulated the production of this important metal, and entire districts along the coast and rivers west of Cartagena were depopulated, the people emigrating to the platinum district to wash for platinum gold. During the fiscal year of 1917-18 production in weight of metal fell off on account of the protractea dry season, the usual heavy rains of the Quibdo region not materializing. A great many more ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 225 people were engaged in the work, but the production per capita was not normal with relation to former years, when prices were much lower. Water for washing the metal had to be collected during the night in small pits dug in the banks. The work was thus made much harder and considerable time was lost. Plantains and dried fish are the staple articles of food of the Negro and Indian platinum workers, and these cost 10 times more in the Quibdo district than farther down the Atrato River, the main source of the supply. The fixing of the high price of $105 per ounce for platinum by the United States Government during 1918 greatly stimulated the work, although, because of the weather conditions noted above, the total production was not proportionate to the greatly increased number of men engaged in the work. CARTAGENA THE SUPPLY CENTER OF THE QUIBDO DISTRICT. The Condoto River district is also a great producer of platinum, but it is of an alluvial formation, and, on account of the broken nature of the ground and the heavy jungle, no accurate estimate can be made of the possibilities of future production or of the extent of the platinum-bearing ground. Doubtless the fields are much more limited in extent than is generally supposed. In this region platinum predominates, there being approximately 4 per cent of gold found with the platinum, while on the Quibdo side gold predominates, the platinum content of sands being only about 10 per cent. Another producing section of the Quibdo district is the area near the head- waters of the Quito River, which is being worked now to a greater extent then ever before. Cartagena is the supply center of the Quibdo region. Approxi- mately $1,000,000 worth of imported merchandise, principally cot- ton goods, are shipped into this region every year from Cartagena. Probably 60 per cent of this amount consists of cheap cotton prints. The large importers of Cartagena maintain branch houses in Quibdo and Istmina, Syrians predominating. Traders travel up the small rivers in canoes with trade goods and buy gold and platinum. The Choco district is said to contain many other minerals, such as copper, lead, silver, palladium, etc., but very little is known of the real extent or value of the veins or deposits. Many rich samples of all of these ores have been brought in by the native prospectors searching for gold and platinum. LABOR AND CLIMATE. The labor engaging in this work is unsatisfactory. After working in the river a few weeks and making good pay, they will return down the river for the remainder of the season. Although as many as 300,000 men come into the platinum country during a single year, not more than 3,000 men are working there at one time. The climate is very unhealthful. Several large companies have failed in attempts to use large modern dredgers in this platinum and gold placer district. MANUFACTURING. Throughout the coast region there is an increasing interest in local manufacturing. Extensive plans are being made for future development as soon as the importation of new machinery and equip- 37558 21 15 226 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. ment becomes possible. Textile goods, glass and earthenware, matches, hats, flour, and sugar are some of the principal products in this commercial district. Probably the most important industrial establishment is the Colombian Sugar Co. with a capital of $2,000,000 and employing from 3,000 to 5,000 men, according to the season. The Faorica de Extractos Tanicos has not been in operation for two years, because of the lack of success in its experiments connected with the chemical process of extraction of tannic acid from the bark of the mangle. About $200,000 is the estimated capital invested in the plant. EXPORTS. Statistics showing the quantities and values of declared exports from Cartagena to the United States give a total of $9,823,635 for the calendar year 1919, a gain of $2,947,295 as compared with 1918, when the value of merchandise exported reached $6,876,340. Coffee forms the most important item, 40,490,072 pounds, valued at $6,540,- 558, being exported in 1919. Other important exports were cattle hides valued at $1,038,516, hats at $318,569, and rubber at $125,052. CURRENCY AND BANKING. The actual currency is inconvertible paper, gold coin based on the English gold coin in weight and fineness, and fractional silver coin. Exchange rates vary, but the average rate during 1919 was 0.85. Rates of interest are about 2 per cent per month. However, the es- tablishment of branches of American banks has reduced this rate to as low as 1 1 per cent per year in some cases. The Mercantile Bank of the Americas has a branch in Cartagena known as the Banco Mercantil Americano de Colombia. The Banco de Bolivar, with a capital of 500,000 Colombian dollars, and the Banco Industrial with a capital of 300,000 dollars, are located here. MEDELLIN AND COMMERCIAL DISTRICT. LOCATION. TOPOGRAPHY, AND CLIMATE. The Department of Antioquia, situated in the north-central part of Colombia, is the largest of the inhabited Departments of the Republic, possessing an area of 24,401 square miles. Its boundaries include the Gulf of Uraba at the moutn of the Atrato River; the Atrato R,iver itself for a distance of approximately 150 miles; the Cauca River throughout its central part, as well as its tributaries, the Nechi and San Jorge; and the Magdalena River on the east. The entire Department is a mass of mountains and hills with small valleys in between. Climate in such a region, located from 6 to 7 degrees north of the equator, is a matter of elevation above sea level. The entire district along the Magdalena River on the east is tropical, as is the region to the north along the boundary with the Department of Bolivar, where there is a much more abundant rain- fall than farther south. That portion of the Department known as the Uraba region, which extends to the ocean at the Gulf of Uraba, is also extremely tropical. The valley of the Cauca River to the south, where the elevation above sea level is approximately 3,000 feet, has a semitropical climate, the average mean temperature ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 227 being 76 F. The capital, Medellin, situated in the south at the junction of four mountain ranges, possesses a climate of perpetual spring, and health conditions are found to be much better in this city than on the coast at Santa Marta, Barranquilla, or Cartagena. Almost any temperature desired may be found by climbing into the mountains surrounding the city. There are no well-defined seasons, but the year is divided into two wet and two dry periods of three months' duration, the principal rainy season beginning with March. MEDELLIN ANZA)HELI lietiilut. 9.ITAGUI ^=>_^r --tfT , Salgar^^^MAhA ?"$' KSm&S&3^< Gu ?!^ f !&Jg?*N*l\ J^P^ FIG. 10 Map of Medellin region. POPULATION AND RACIAL CHARACTERISTICS. The Department of Antioquia, with a. population of 817,530, is divided into 10 Provinces. Medellin, the capital of the Centre Province, as well as the capital of the Department, possessed a popu- lation of 79,146 in 1918. It is said that the people of Antioquia are the descendants of Spanish Jews who emigrated to Colombia during colonial tunes. There are numerous evidences of the preservation of the purity of the Spanish race even among the lower classes. Few Negroes from the coast regions are seen, although to some extent Indian blood and a small percentage of Negro blood have been absorbed. 228 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. The Antioqueftos are good workers and possess a great deal of perseverance and ingenuity, since they have had to struggle hard for a living. Moreover, they are good business men and very shrewd traders. One very remarkable feature found here is the great in- dustry of the lower classes and their universal desire to own their own property. These people are economical, saving, and intelligent. In the city of Medellin real estate has been sold with great success on the installment plan to laborers, servants, and others of the less well-to-do classes. LIVING CONDITIONS. Like all South American cities, Medellin presents many of the old colonial features, but at the same time displays modern tendencies. Many old adobe buildings are being replaced with modern concrete office and store buildings of attractive oesign, and there is an active movement for improvements of all sorts. This condition is apparent from the increasing demand for more and better lighting fixtures, plumbing fixtures, electric light and telephone service, and steel products of all kinds. The wealthy Antioqueno lives in a beautiful house, often of two stories, and provided with interior gardens where open-air baths are built into the ground in the old Roman style. The interior decora- tion is more European than American, more French, than English, in appearance and effect. In contrast to the comfort, and even luxury, of the wealthy merchants and professional people, is the life of the peon who usually lives in a tiny one-room house built of mud blocks situated on the outskirts of the town or in the valley farming district, with no comforts, little or no furniture in the house, and no sanitary provisions whatever. Relations between employer and laborer are still rather feudal and founded upon the old Spanish system of peonage. EDUCATION. Medellin, as well as the Department of Antioquia, is second only to Bogota in educational advancement; 82 per cent of the factory and industrial workers of Medellin can read and write. Out of a total population of the district of Medellin, i. e., the municipality, there were in 1910 only 9,091 pupils in all schools. In 1918 this number had increased to 12,530 out of a total population for the district of approximately 80,000 people, according to the census of 1918 (Oct. 12), or 15.6 per cent of the total number of inhabitants. This figure speaks very favorably for the district of Medellin. The University of Antioquia was founded in 1871 and is the sec- ond largest in the country. At present it has 411 enrollments in all lines of study; 236 men are taking philosophy and letters, 59 are enrolled in law and jurisprudence, 116 in medicine; and there are 460 pupils in the preparatory Liceo Antioqueno, an annex of the university. Government primary schools are in charge of the de- partments, but the various districts and municipalities provide school buildings and equipment. The district of Medellin nas re- cently completed a model school in which all modern and hygienic methods are embodied. This building will be the model for all future school buildings in the distinct. The National Government maintains the National School of Mines at Medellin. The latter school was founded in 1887, com- ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 229 plete courses being taught in mining and civil engineering. In June, 1919, 80 pupils were in attendance. Normal schools, also, are supported by the National Government. The Medellin Normal School had 97 men and 238 women enrolled in June. FINANCE AND BANKING. INFLUENCE OF LOCAL GOLD PRODUCTION. The financial situation in the Department of Antioquia is different from that in any other part of Colombia. Antioquia is the largest gold-producing State, an average of $4,000,000 in gold being pro- duced annually. In Medellin gold circulates freely and all trans- actions are on a gold basis. This was especially true during the year 1919. With New York exchange fluctuating between .86 and .90, and the pound sterling at a discount of 20 per cent and more, gold was not exported but was turned in at the local Government mint for coinage into Colombian gold coin. This gold was then used to purchase New York drafts at the prevailing rate of exchange. Also, during the latter part of 1918 and the first half of 1919, more than $6,- 000,000 in United States gold coin was imported into Colombia, and the greater portion of this amount was sent to Medellin for coinage into Colombian gold coin, the difference in intrinsic value as compared with the United States gold coin being approximately 2.75 per cent. As a result, Antioquia is doing business with gold coin while throughout the rest of the country very little gold is seen and paper money of various kinds forms the medium of ex- change. Another factor tending to hold this gold in Antioquia is the high transportation rates on specie shipments in Colombia. Because of the fact that Antioquia has always produced large amounts of gold, with gold as the basis of exchange, all new issues of Gov- ernment and bank paper currency have been looked upon with sus- picion by the people of this Department, and it is only with the greatest difficulty that paper currency can be put into general cir- culation in this district. COINAGE CAPACITY OF MINT CERTIFICATES OF GOLD DEPOSITS. The National Mint at Medellin posesses a complete, though small, electrolytic plant, and improvements made in 1919 increased the coinage capacity from $500,000 in gold coin to $2,000,000, with new extensions planned that will make it possible to mint $6,000,000 worth of gold coin per annum. On account of the great amount of gold presented at the mint for coinage into Colombian gold coin, and because of the limited capacity of the mint, the expedient has been adopted of issuing certificates of gold deposits in small denomi- nations in order to make the commercial use of this gold immediately available for holders of gold awaiting coinage. The certificates of deposit circulate freely and are everywhere accepted in the district, as they call for the delivery of an equal amount of Colombian gold coin on a certain date; gold delivered to the mint for coinage has to await its turn. 230 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. BANKS AND LOANS EFFECT OK FOREIGN BANKS ON TRADE. Ten banks, six of which are incorporated and four private, take care of the financial business of Medellin and its commercial district. The average net profit of the private bankers in Medellin is approxi- mately 16 per cent per annum, and previous to the establishment of foreign banking institutions in Medellin, these profits were very much greater, rates of interest ranging between 18 and 36 per cent per annum, the usual quotations oeing by the month. Private money lenders still receive 2 per cent per month for private loans, and at times even a higher rate of interest in the country districts. At present the average commercial rate of interest is 18 per cent. Recent loans have oeen made to the Department at a rate as low as 11 per cent per annum, whereas formerly the Department paid as high as 18 and 20 per cent for money with which to finance needed public works. The larger merchants can also now secure commercial loans from local banks for six months and one year at rates ranging from 11 to 15 per cent. The effect on trade in general through the establishment of foreign banks in Medellin has been very beneficial. Interest rates have gradually been lowered and all commercial transactions facilitated. AMERICAN BANKS INVESTING IN INDUSTRIAL PROJECTS. Progress during the past five years in the Medellin district has been continuous and based on a better mutual understanding. The American branch banks know the intimate conditions and resources of the country, and are in a position to act as intermediaries in investment and industrial propositions, and furnish a sure basis of international confidence and mutual respect. In fact, they have already begun to assist in certain projected improvements. As an example it may be stated that the branch of a large American bank- ing and commercial institution loaned the Department of Antioquia the sum of $40,000 gold recently with which to cover the cost of the preliminary engineering study of various new projects. This money was loaned at 12 per cent interest per annum at 10 months' time. Previously the Department of Antioquia borrowed large sums locally at 18 per cent interest per annum. Subsequently this same banking concern offered the Department a loan of $6,000,000 with which to carry out the new work projected. An American contracting company has had a representative on the ground for the purpose of investigation, and tne result will be large orders for material, machinery, and supplies. DEPARTMENTAL REVENUES. The Department of Antioquia is one of the few Departments of Colombia able to show sufficient revenue over and above current expenses on which to base a large foreign loan. Never has it been in a more favorable condition. In 1917 revenue for the Depart- ment amounted to 1,939,359 Colombian dollars (1 dollar = $0.9733 United States currency); hi 1918 it had increased to 2,069,318 dol- lars. During the first four months of 1919 returns were 663,056 dollars. The month of June alone yielded 221,860 dollars. Rev- enues for the city of Medellin have increased correspondingly. In ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 231 1917 there was a revenue of 245,997 dollars, in 1918 the figures given were 261,596 dollars, while the first four months of 1919 showed a revenue of 84,029 dollars. The sum of 380,000 dollars was voted by the city of Medellin for improvements during 1919 and to carry out the project of the new Municipal Electric Street Railway. TENDENCY TOWARD SHORTER CREDITS. In Colombia there exists no system of discounts and trade accept- ances, and, prior to the war, foreign trade was based on long credit terms with the foreign export commission house acting as banker. Since the bulk of trade is at present with the United States, both for exports and imports, the tendency is toward closer commercial and financial relations and the establishment of some system of exchange with shorter credits and more rapid movement of merchandise, in which the American branch banks will take a leading part. The great difficulty seems to be the scarcity of experienceo: and trained men to place in charge of these important branch banks. The educa- tion and training of men for foreign service may be deemed the most important feature necessary for foreign trade expansion in Latin America. PRINCIPAL CITIES AND COMMERCIAL TERRITORY. Medellin is the center of all commercial activity for the Depart- ment of Antioquia and the commercial territory comprising the mining country of the northern part of the Department and the terri- tory of the Cauca River Valley as far south as Cartago. To a certain extent, also, >the Department of Caldas, with Manizales as its center, is commercially tributary to Medellin, though the bulk of the import business in Manizales is handled directly with foreign markets through export and import commission houses which have their headquarters in Medellin, maintaining branch offices in Manizales. However, merchandise imported for the market in the Department of Caldas does not pass through Medellin, but continues on up the Magdalena River to La Dorada, the head of navigation on the lower Magdalena, thence by rail over the Dorada Extension Railway to Mariquita, where goods are transferred to the cableway built over the high mountains and now completed almost as far as the city of Manizales. The Department of Antioquia contains 35 towns of 10,000 people or more, and the whole commercial territory of Medellin reaches over 2,000,000 people of Colombia. The merchants of Antioquia are actively engaged in expanding their trade with the interior, and traders from Medellin are found in the least accessible regions, even as far west as the platinum-mining country of the Rio Atrato. However, it is thought that Medellin can not compete with Carta- gena in the Rio Atrato trade because of transportation difficulties, Cartagena having direct communications by water, while goods for Medellin have to be brought up the Magdalena River to Puerto Berrio, thence to Medellin DV rail, from which place they are sent into the interior on pack mules and pack oxen. The town of Puerto Berrio is the river port for the Department of Antioquia. All goods shipped into Medellin from the coast pass through it. The town itself is unattractive and presents the usual aspect of Magdalena River towns low, one-story "adobe" houses 232 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. with thatched roofs; narrow, unpaved streets; and the usual river population, consisting principally of Negroes and "mestizo" Indians. There is little agriculture in the vicinity, with the exception of small banana and yucca patches for the local market; the principal em- ployment is stevedoring work for the river steamers and railway. The inhabitants number about 2,500. Low hills surround the town and the vegetation is tropical, with rather heavy undergrowth. There is little good level land in sight. While the town has a small electric light plant and a small ice factory, there are no public improvements except the railway freight sheds and track work and the Hotel Magdalena. On account of the greatly varying stages of the river, the swift current, and other adverse factors nothing has been done at Puerto Berrio to provide docks or landing stages for river-traffic service. All freight is handled up and down the steep bank of the river on men's backs, the distance in extreme low-water stage being nearly 250 yards from the nearest railway storage shed. As a part of the railway's equipment there is a good hand-power crane on the end of a spur track near the river for handling heavy cargo packages. This crane is the only modern facility in Puerto Berrio for freight-handling purposes and is seldom used. MANUFACTURING. The greatest industrial development in Colombia is found in the Department of Antioquia. In spite of the broken nature of the country, with the resulting difficulties in transportation, this Depart- ment will undoubtedly continue to lead other districts in manufac- turing, even though raw materials, with the exception of cotton, must be imported. The development of local industry is due to two factors : First, the energetic and active character of the Antioquian people; and second, the tariff measures of the Government which protect national indus- tries. At present the volume of production of local manufactures supplies but a fraction of the demand; consequently, on account of the protective tariifs, the prices of foreign-made goods naturally fix the prices for articles of domestic manufacture, the result being that prices remain very high for all goods needed in the country, whether foreign or domestic, and manufacturers make good profits. COTTON MILLS. Cotton prints constitute the principal article of import into Co- lombia, averaging about 60 per cent of the total value of all goods imported into the country. It is therefore in this line that there has been the greatest development in local and national manufac- turing. Local cotton mills are competing successfully with foreign mills, although the former have not improved the quality or appearance of the cloth manufactured. However, the material is strong and wears well and is well liked in the country. Under present condi- tions of the market there is no necessity for local mills to improve their product. Prices are high and the total production is sold without trouble. All local mills are very prosperous notwithstanding the high cost of imported raw material, high freight rates, and great cost of new ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 233 machinery, repair and replacement parts, etc. Dividends of 14 per cent net are being paid on stock in these mills held locally, and all mills were planning extensive improvements during 1919. The time seems opportune to do some selling work among the Colombian mill people. The mills that are now importing cotton yarn for then* looms are ordering spinning machinery with which to make yarn of the native cotton from the coast section; dyeing plants, too, are being installed in many places. During the war dealers could not secure enough textiles to supply the demand ; prices were very high, and as a result the public refused to purchase freely, waiting for better conditions. During this tune the domestic mills supplied the bulk of the local demand at war prices. All merchants feared an imminent drop in prices of im- ported goods, and almost without exception tried to dispose of large stocks of textiles on a stagnant market, but with little success. The market for textiles reacted in June, 191*9, and merchants finally became convinced that the local and interior demand was active again and that a business boom was in progress. They realized also that they were without adequate stocks of goods with which to take care of the trade. The result was precipitate buying in all lines, and the bulk of the business (estimated at over 90 per cent of the total) went to New York. Strange to say, this buying activity was initiated, not from large centers, such as Medellin and Bogota, where the larger importing houses would naturally be expected to take the lead in any great commercial movement, but from interior towns, such as Call, Bucaramanga, Ocana, etc., and this activity stimulated the larger importers to action. In Medellin, old resident English houses, which handled Man- chester textiles for many years and enjoyed the bulk of the Antioquia trade, were obliged to seek new business relations in the United States in order to take advantage of market conditions. Besides textiles, there is a strong demand for hardware and cutlery, formerly imported from Europe, and also chinaware, cooking uten- sils, and glassware, the last two lines being almost entirely imported from Europe prior to the war. Because of the prosperous condition of the country on account of the coffee market and the high prices being obtained for exports of all kinds, there is also a strong demand for women's fancy- wear goods, dress goods, haberdashery, etc. Better quality and more varied lines are wanted than heretofore has been the case in Colombia. OTHER INDUSTRIAL ESTABLISHMENTS. Besides the 8 or 10 textile factories located in or near Medellin, other important industrial establishments are situated there. The Fabrica Nacional de Galletas y Confites (cracker and candy factory), established in Medellin in 1915 with a capital of 600,000 dollars, is very modern in every way. Products are sold all over the country and are competing with imported bonbons and crackers, which they are steadily replacing in the Colombian market because of the high import duty and freight rates. This factory represents, doubtless, the most definite case in which a local industry has replaced the im- ported article in Colombia. Another example of the replacing of foreign merchandise in the Colombian market is porcelain. The 234 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. factory is located in the town of Caldas, on the Amaga Railway. The company was originally promoted by a German, who utilized the deposits of white and gray clay, quartz sands, feldspar, etc., found near the town of Caldas. In recent years results have been very satisfactory. At present 60 men are constantly employed, and only coloring materials and certain small amounts of flux materials are imported. The products enter all parts of the country and com- pete with the imported article. Present sales are approximately $150,000 per year, and plans are being perfected for large extensions in the near future. The company is in the market for new baking ovens, new grinding mills, automatic sizers, screens, etc. Another porcelain factory has been recently formed in Medellin, with a capital of 30,000 Colombian dollars, to develop rich deposits of clay, feld- spar, etc., near the town of Pueblito. Other factories that are producing articles in local demand are Fabrica Nacional de Camisas y Cuellos de Medellin (shirts and col- lars); Compania Nacional de Manufactures de Medellin (corsets); besides several cigarette factories, match factories, soda and mineral- water factories, etc. Most of the raw material used is imported from the United States. Tobacco for the cigarette factories is imported from the United States, Cuba, and the Department of Santander del Sur in Colombia. FORMATION OP NEW COMPANY TO MANUFACTURE FIBER BAGS. In June, 1919, a company was being formed in Medellin to make fiber coffee bags. Jute bags were formerly imported from England for handling the coffee harvests for export. During the war this material could not be obtained and sacks were manufactured locally from "fique" fiber, as the native henequen is called. The bags are being made by hand, the raw material or cleaned fiber costing about 12 cents gold per pound of 500 grams delivered in Medellin. How- ever, fiber-cleaning machines are now being made near Medellin by local foundries and machine shops. The company plans to use mod- ern machinery, but up to June suitable machinery for making the bags of this kind of fiber had not been found in the United States. The present cost of fique bags is $1.12 per "carga" of two sacks, which contain 140 pounds of coffee each. Before the war Colombia imported annually approximately 1,000,000 yards of jute piece goods from the United Kingdom and $225,000 worth of jute bags. IRON INDUSTRY OF ANTIOQUIA. In view of the increasing demand for certain machinery used in domestic industry, the development of foundries and machine shops in Antioquia would seem to be of primary importance as a local and national industry. There are four of these in the Department at present. The Ferreria de Amaga is one of the oldest. Its present volume of business amounts to about $200,000 per year. No scientific report has ever been made on the extent and formation of the avail- able iron-ore deposits, although surface indications show a large formation, well defined and entirely accessible, with easy mining conditions. The ore most used is that called "mineral de huevo," or egg ore. This ore is the most common and is picked up by hand from the sur- ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 235 face. No mining operations have ever been undertaken either by the old company or by the present owners. It would seem as if these deposits were of value and capable of greater development and exploitation under scientifically trained direction. Prices will always remain very high on account of the high freight rates on all machinery and steel products from the coast. Local dealers figure over 90 per cent for expense of freight and duty on all iron products from the United States on first cost, f. o. b. New York, and then add a handsome profit over and above these figures. Labor is plentiful, as well as cheap and good; water power is immediately available on the ground at little expense. The Empresa de Refundicion de Metales, located near Medellin on the Amaga Railway, imports pig iron. It makes agricultural im- plements, such as hoes, machetes, plowshares, etc. A third foundry, the Ferreria de Joaquin Restrepo Izaza, at Sonson, also imports pig iron besides using that of the country. Coffee and mining ma- chinery are its chief products. The foundry and machine shop called "La Estrella," located at Robledo, was established in 1900 with an initial capital of 120,000 Colombian dollars. Pig iron is imported from the United States, the price f . o. b. New York in May being $28.55 per ton of 2, 240 pounds. This pig iron costs 12 cents per kilo, or 5 cents per pound, laid down in Medellin, plus cartage to the factory at Robledo, 4 kilometers distant from the Medellin Railway station. Machinery of all kinds for the coffee industry as well as the tobacco, rubber, cacao, and fiber industries, sugar-cane mills, Pelton water wheels, church clocks, etc., are products of this foundry and machine shop. An average price of 60 cents per kilo is received for all castings turned out. These are clean and free from defects; edges are sharp, and crystallization is very uniform. TOTAL INVESTMENT IN PLANTS LABOR SUPPLY AND CONDITIONS. In 1918 the Department of Antioquia possessed a total capital of 3,190,000 Colombian dollars, invested in 32 plants. It is esti- mated that there will be an increase of 1,100,000 dollars for 1919 and 1920. The textile plants and existing factories will be chiefly affected. There can be no question of the indus- trial development of Antioquia or that this region is rapidly becoming the principal manufacturing center of Colombia, how- ever handicapped it may be by the mountainous nature of the country and the lack of good transportation facilities. Many plans and projects are being worked out for the near future, and the pros- perous condition of the country will evidently stimulate and advance this development during the next few years. Approximately 6,000 people are employed in manufacturing plants of all kinds in Medellin and its suburbs, and there is a surplus of labor. Women especially are seeking work in factories where piece- work is the system for operating. All local cotton factories employ this system. Most of the larger mills run 10 hours per day, com- paratively few factories working onlv 9 hours. Little time is lost from work, the average attendance being over 91 per cent. Factory managers state that the people are very quick in learning to handle new machinery and can be trusted with delicate mechanisms. The women earn from 30 to 60 cents per day, the average wage being 236 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. about 33 cents. Men earn from 30 cents to $1.30 per day, the latter wage being that of the most skilled mechanic. RAILWAYS. There are two railways in the Department of Antioquia. The more important of these is the Ferrocairil de Antioquia (Antioquia Railway), connecting Puerto Berrio, on the Magdalena River, with Medellin, the capital of the Department, a distance of 120 miles. It is operated in two unconnected divisions, the Nus division, from Puerto Berrio to Cisneros, and the Porce division, from Santiago to Medellin. The La Quiebra Mountain separates Cisneros and Santiago, which are 9 miles apart; present means of travel between them is by wagon road over this mountain, at 5,080 feet above sea level. All imports and exports into Medellin and the interior of the Department of Antioquia pass over this road. The Depart- ment has planned a tunnel under the mountain which will be ap- proximately 12,250 feet in length, and an electric line over it is also talked of. One is impressed by the excellent construction work, the heavy cuts, the fine rock-ballasted roadbed laid with hardwood ties of over- size for narrow-gauge track, and the general appearance of the Antio- quia Railway. The gauge is 36 inches, and 60-pound rails are used throughout, being necessary because of the short curves and heavy grades encountered. In spite of the fact that this line passes through a very mountainous region, returns show that each new 5 kilometers of line have paid for the construction of 5 more. The road has doubled its traffic every five years, and is at the present time in a very prosperous condition. Freight rates have been lowered con- sistently. The Nus division operates 93 freight cars of various types and ca- pacities, and the Force division has 58. The locomotives are of the small 25 and 30 ton Mogul type, and on the Nus division they burn wood for fuel. The Porce division uses coal, which is brought into Medellin from the Amaga fields by the Ferrocarril de Amaga (Amaga Railway) . The Amaga Railway runs south from Medellin toward the town of Amaga. The Cauca River is the objective. The road has shown an annual increase of business according as new sections of line have been put into operation by the company. Gross returns in 1918 were 183,643 Colombian dollars. From tne returns of the first four months of 1919, which were 72,207 dollars, it is estimated that figures for the year will reach 214,000 or possibly 240,000 dollars. Owners of the line claim that it is the Key to transpor- tation in Antioquia. Once this road is completed by connecting Medellin with the end of navigation on the upper Cauca River north of Cali, the Department of Antioquia will have an outlet also on the Pacific coast through Cali to Buenaventura. The Amaga Railway passes through extensive coal beds, which are found on the western watershed after passing "La Quiebra." In several places the railway cuts pass through three horizontal strata of coal. Locomotives can thus be fired at the tracks. In the valley one coal property alone is said to contain 5,000,000 tons of coal. It is bituminous in character, very light, and highly volatile, from 45 to Special Agents Series No. 206. FIG. 11. MEDELLIN STATION OF ANTIOQUIA RAILWAY. FIG. 12. MEDELLIN STATION OF AMAGA RAILWAY. Special Agent Series No. 206. F"IG. 13. PLAZO BERRIO, MEDELLIN. FIG. 14. HOTEL MAGDALENA, PUERTO BERRIO. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 237 60 per cent gas. The cost, delivered in Medellin, cartage from rail- way station paid, is $4 per ton. The cost to the railway at the coal beds does not exceed $0.65 per ton mined and sacked on flat cars. Although this coal will not coke, a coking grade can be found just north of Medellin on the Antioquia Railway. Mining operations are car- ried on in the most primitive manner, the mines being mere one-man incline shafts and the coal being carried out on men's backs. No scientific examination has ever been made of these fcoal beds, and no data as to their extent or value are available. It is believed, however, that the supply is large enough to furnish all the needs of transporta- tion and industry in Antioquia for hundreds of years. Three routes are being studied for the new projected railway to the Gulf of Uraba. The Departmental Assembly authorized the govern- ment to contract for a loan of $6,000,000 with which to start this new railway, as well as to finance other construction work, and the money has already been offered by an American banking concern. Still another road on which preliminary work is being done is from Puerto Berrio across the Magdalena River toward the southeast in the general direction of Chiqumquira. The line will pass through the town of Velez in Santander, continuing on to the plains of Sogamoso in Boyaca, with the object of developing this region of cattle raising and wheat production. This new line is the result of an agreement between the Departments of Antioquia, Boyaca, and Santander del Sur, and the surveys are under the direction of the Department of Antioquia, whose engineers are now carrying out the preliminary survey work. The business element of Antioquia is very much inter- ested in this new railway, since it will open a new field for the prod- ucts of Antioquia and also provide access to the wheat and cattle lands of Boyaca, wheat and cattle being two products most needed hi Antioquia. RIVER NAVIGATION. Three navigable rivers serve the Department of Antioquia. In the rainy seasons river steamers drawing 4 feet of water (loaded) navigate the Magdalena as far as Puerto Berrio, but for several months at a time river navigation is very uncertain, even for the smaller boats. The Cauca River is a tributary of the Magdalena and is navigable for 200-ton river steamers in the northern part of the Department as far as Caceres; and irregular service is maintained there during the rainy season. This river service benefits the mining and cattle inter- ests in the northern part of Antioquia, although the traffic is not very heavy and is more or less local hi character. A regular steamer service is maintained between Magangue, on the Magdalena River, and the town of Zaragoza, on the Nechi River, a tributary of the Cauca. AGRICULTURE. COFFEE. The Department of Antioquia produces an average of 18,000 tons of coffee annually, the extent of- the plantations being esti- mated at approximately 63,250 acres, containing possibly 36,000,000 coffee trees, valued at 30 cents each. Production in this Depart- ment has practically tripled since 1910, when Antioquia exported 100,341 sacks of 145 pounds each. Production in 1915 increased 238 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. to 192,807 sacks, in 1916 to 273,175, while it was estimated that the Department would export a total of 300,000 sacks in 1919. The average cost of freight and other charges on Antioquia coffee is $0.08 per pound by the time the coffee reaches New York and is delivered to warehouses there. All coffee quotations are made f. o. b. New York in United States currency per pound. Colombian producers or buyers receive or pay Colombian currency for all coffee, and in Antioquia payment was made in gold coin to a great degree during the early part of 1919. Exchange averaged around $0.85 during the spring months and then slowly advanced to $0.94 and to $0.95 in June. "Panela" or brown sugar is not exported from the country, but large quantities are shipped into the interior. In 1918 the Depart- ment of Antioquia produced 3,366,656 "arrqbas" (of 25 pounds each), or a total of 84,166,400 pounds, according to statistics com- piled by the Chamber of Commerce of Medellin. The principal centers of "panela" production are: Medellin, Cocorna, Barbosa, Sonson, and Yolombo, though sugar cane is grown throughout the entire Department in many small patches. Water is everywhere available for irrigation, the mountains having numerous springs and small streams. There are no large sugar estates or modern sugar mills in the Department. In 1916,, 4,887 small sugar mills were in existence there, the greater proportion of which were made by hand, of wood. The following statement shows the motive power: Small hand power, 2,486 mills; oxen or mule power, 1,650 mills; water power, 744 mills; other power, 7 mills. A considerable number of small foreign-made iron mills called "trapiches" have been imported, which are carried in stock by all hardware dealers. Local foundries and machine shops are now pro- ducing these small sugar-cane mills as standard articles. RICE TOBACCO WHEAT BEANS. Rice and tobacco are grown in the northern part of the Depart- ment, where there is more level land and a tropical climate. These regions are sparsely inhabited, since the Antioquian prefers the cooler climate of the hills and mountains. In 1915 the Department pro- duced 15,331 cargas (carga = 280 pounds) or 4,292,680 pounds of rice, but even this amount was not sufficient to supply the demand, and the coast and the United States furnished the remainder. Tobacco also was imported, the 864,257 pounds produced by the Department not being enough for the factories. Wheat was imported from Bogota to supply the Department, since only 2,205 cargas were pro- duced in 1915. Beans are grown in sufficient quantities to supply domestic needs. / CATTLE RAISING. Official statistics compiled in May, 1919, give the total number of cattle in the Department as 415,418 four years old or over. It is estimated that there are 46,666 hectares, or 115,311 acres, under fence and planted with Para, guinea, "India," and "Yaragua" grass (all similar to the Para grass) in the Department. The small native ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 239 cattle are also pastured on the short grass of the hills and mountains of the interior regions. These cattle are a very poor breed, not over 600 pounds on the hoof. Approximately 70,000 head of cattle are imported every year from the coast, principally from Bolivar, and are fattened for market in the Cauca Valley. It is said that there is hardly a merchant of Medellin who does not own a cattle ranch in this rich region. A cattle pasture planted in para grass of four years' growth is valued in Medellin at $70 per hectare (1 hectare = 2.471 acres). All cattle throughout the Department are subject to the diseases peculiar to the country and have to be inoculated with cattle and stock serum; consequently there is an excellent market for stock serums, hypodermic-injection syringes, and other appliances needed. MINING. Mining is the oldest industry of the Department, and countless small streams show evidences of old placer operations throughout the Department. The most accessible and easily worked ground has been exploited by the Spaniards and natives, who are good placer miners and expert surface prospectors. Some of the rich gold mines pay handsome dividends in spite of the crude methods employed. There is evidently an opportunity for development by large min- ing companies in taking up old low-grade properties or dredging ground and installing modern machinery to conduct extraction where the old crude methods have failed. However, operations would be very expensive because of transportation difficulties. The war cur- tailed the shipping of machinery and equipment, but new projects are in prospect as soon as conditions become normal again. MERCHANDISE MOST IN DEMAND IN MEDELLIN. Because of the heavy exports of coffee already mentioned, great expansion of business is expected during the next few years, and all lines are extremely active. Transactions are almost invariably in cash, i. e., New York exchange in hand, and New York prices rule in the market. The following table shows the relative volume of imports from the United States by articles most in demand, there being no old Euro- pean merchandise in stock in Medellin at the time the present report was written: Articles. Percentage from United States. Articles. Percentage from United States. Textiles 60 Typewriters, specialties 100 Hardware . 100 Musical instruments 100 Steel products 100 Hats (felt) 40 Chemicals 100 Men's wear 90 Medicines 90 75 Paper products 100 Toilet articles 80 100 Shoes 100 100 40 Tools, etc 100 China, dishes 100 Dyes 100 NOTE. Percentages given are approximate and are for Medellin market only. Great Britain is the chief competitor in textiles and men's wear, Italy in hats, and France in women's wear, toilet articles, and jewelry. 240 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. METHODS OF DISTRIBUTION. The importing business of the Medellin commercial district has always been carried on through commission houses which take care of orders for all kinds of merchandise. Heretofore the amount of business has been too limited, except in textiles, to enable the Colom- bian importer to deal directly witn manufacturers. Moreover, the American market .has not been sufficiently well known. Therefore, the Colombian importer relies upon his commission house in New York to fill his orders, make shipments, and take' care of all details of the business. Several of these houses established in New York have ample capital; 'agencies are maintained in Manizales, Cali, Bucaramanga, and even in Bogota, and they are doing the most business with Colombian merchants. These native export houses have the advantage of knowing the country, the credit rating of their clients, and all market and credit requirements. They also act as agents for the handling of all articles of export from Colombia, and do a private banking business in connection with merchandising. The maintaining of resident agents is an important factor in the future of American export trade. European houses have maintained such commercial organizations, which have been very successful in securing and holding trade for these countries. Agencies of groups of manufacturers operating under the Webb-Pomerene law might well be established m Colombia. Under no circumstances, however, should retailing be attempted by these agencies, but the importing native merchants should be protected and assisted in every possible way. The work of these resident agencies then would be to sell goods to importers, or even to carry standard stocks of goods. Highly trained and experienced men should be required as managers of such agencies. BOGOTA AND COMMERCIAL DISTRICT. LOCATION, AREA, AND POPULATION. The commercial district of Bogota, the most extensive and populous commercial section in Colombia, is located in the central part of the country near the eastern fringe of the inhabited portion. It is com- posed of the Department of Cundinamarca, in which the city of Bogota, the trade center of the district and the national capital, is located; Boyaca to the north and northwest of Cundinamarca; Tolima to the west and southwest; Huila to the south; and a portion of the Department of Santander, although, strictly speaking, San- tander is not a part of the commercial district of Bogota. Cundinamarca has an area of 13,000 square miles, about one-third that of Antioquia, the largest and most populous Department in the inhabited portion of Colombia. The estimated population of 795,000, however, is nearly equal to that of Antioquia. Boyaca has an area of 17,654 square miles and an estimated population of 645,000, the largest population of any Department with the exception of Antio- quia and (Jundinamarca. Tolima has an area of 10,811 square miles and an estimated population of 310,000. Huila has an area of 8,687 square miles and an estimated population of 170,000. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 241 TOPOGRAPHY. CLIMATE. AND RAINFALL. Topographically the outstanding features of this commercial dis- trict are the Magdalena Valley, in the Departments of Santander, Tolima, and Huila; the high table-land of Bogota in Cundinamarca; the plains of Sogamoso in Boyaca; and the uninhabited plains of the Orinoco watershed east of the eastern Cordillera. The valley of |y-&8- : l=^| JljHjyv ^^i||tliiii^^p the Magdalena is a tropical region containing little level or useful land. The section near the headwaters of the river in the Depart- ment of Huila is subject to heavy rains. The lower Magdalena region has two dry and two rainy seasons, the longer dry season ex- tending from November through March and the shorter from June through July, the longer rainy season extending from August through 37558 21- -16 242 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. October and the shorter from April through May. The region is also subject to terrific windstorms. The table-land of Bogota, in reality part of the central section of the eastern Cordillera, is perhaps the most remarkable topographical feature of all Colombia. It is a fertile plain about 300 miles long, 50 miles wide, and approximately 9,000 feet above sea level. Rains are frequent throughout the year, and the temperature averages about 45 or 50. Frost is unknown. The plains of Sogamoso, also part of the central zone of the eastern Cordillera, are similar to the table- land of Bogota, but have an altitude of only about 5,000 feet, and therefore are somewhat warmer. RACIAL CHARACTERISTICS OF INHABITANTS. Although the infusion of Spanish blood is evident in the larger towns, the bulk of the population in the region around Bogota and Tunja is Indian in all characteristics. The Negro strain is pro- nounced in the hot country of the Magdalena Valley. In the main, business and politics are in the hands of the descendants of the Spaniards, although there is a small middle class, sometimes called "mestizo," derived from a mixture of Spanish and Indian blood, and comprising the small shopkeeper, artisan, etc. The more or less pure- blooded Indians work on the plantations, in the coffee groves and wheat fields, and are the common laborers in the towns of the high- lands. As the Indians of this district are apparently apathetic to modern influences, little progress has been made toward their education. The influence of immigration from Antioquia is seen throughout the Bogota district. The Antioquians travel to Boyaca to engage in cattle raising and wheat farming, and carry on trading in every locality. Many Medellin firms have established branches in Bogota. EDUCATION. Public schools are free, but attendance is not obligatory in Colom- bia. In 1912 Cundinamarca had 563 primary schools, with 27,027 pupils; Boyaca, 346 schools, with 17,577 pupils; Huila, 124 schools, with 7,589 pupils; and Tolima, 206 schools, with 9,062 pupils. In addition to its primary schools, Colombia has some 230 high schools, with a total attendance of approximately 20,000. The largest of these high schools are the two in Bogota, each with about 600 pupils. The literate population does not exceed 500,000. The National University of Bogota, the largest university in the country, had 536 students in 1912. Not more than 30 per cent of the pupils, however, ordinarily complete their courses. There are also an art school and a conservatory of music in Bogota. The lack of agricultural training, the neglect of scientific studies, and the absence of manual and industrial training are generally conceded to be the most serious defects in the educational system of Colombia. LIVING CONDITIONS IN BOGOTA. Small villages are numerous in Cundinamarca and Boyaca, but Bogota is the only large city in the whole commercial district. It is situated on the table-land of Bogota near the higher Cordillera on the east and has an altitude of nearly 9,000 feet. Although the cli- Special Agents Series No. 206. FIG. 16. CALLE REAL, BOGOTA. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 243 mate is agreeable on the whole, the early mornings and evenings are quite cool. Penetrating rains and heavy mists are frequent through- out the year, but the houses lack heating arrangements of any sort. As a rule, food in Bogota is cheaper than in the United States. Good butter, ham, bacon, and cheese are produced locally, and vege- tables produced in the Temperate Zone are plentiful and cheap. Well-trained servants may be had for 5 to 10 Colombian dollars (1 Colombian dollar = $0.9733 at normal exchange) per month, and rents seem to be lower than in the United States. Clothing, too, is cheaper if made from domestic cloth by the local tailors, who turn out presentable suits. There is considerable social life among the upper classes, and the people of Bogota welcome foreigners. A new residential suburb, Chapinaro, which is being rapidly built up, has some fine houses, although it lacks paving and proper drainage facili- ties. PUBLIC-UTILITY SERVICE IN BOGOTA. The present tendency is toward municipal ownership of all public utilities. Those now operated by the city are paying good returns, and there seems to be little question of the profit to be derived from the extension of this service. Better water-supply and drainage sys- tems and more paving are needed. The present water-supply and drainage systems are so inadequate that typhus fevers are common. With the exception of the main street and a few blocks in the busi- ness section which are paved with asphalt, the streets are either paved with cobblestones and are constantly out of repair or are not paved at all. The street-railway system is owned by the municipal government and is paying good returns. An extension is badly needed. The electric light and power plant is owned by a Colombian com- pany capitalized at 1,153,200 .Colombian dollars. The plant is lo- cated 25 kilometers (1 kilometer = 0.62 mile) from Bogota below the Falls of Tequendama on the Bogota River. The transmission lines cover 73 kilometers, and current is suppled to 50,000 lamps for pri- vate use and more than 2,000 for public use and street lighting. Telephone service is supplied by an English company with a capi- talization of 37,000 (1 = $4.87 at normal exchange). Annual dividends have averaged 16 per cent, and all indebtedness, with the exception of a small margin, has been retired. There are 2,000 instruments in use now, but as this number is no longer ade- quate, a movement has been started to have the system taken over by the city and extended with additional long-distance service for the entire district. BANKS AND INSURANCE COMPANIES. Bogota has four native banks, one American bank, and two native insurance companies. One of the native banks the Banco de Co- lombia was started as a Government agency, but it is now operated solely as a private enterprise, without any unusual privileges. The other Colombian banks have never had any Government connection. All the local banks are conservative. Colombia has no system of commercial discounts, and the laws preclude the use of mortgage loans to any extent. There has never been sufficient capital to finance the industries of the country, and 244 COLOMBIA: A COMMERCIAL AND IMH STKIAI. HANDBOOK. interest, rates have been high. The 'establishment by the Mercantile Batik of the Americas of 11 branches in Colombia has tended to lower interest rates and to increase the scope of banking activity and tin- assistance rendered to commerce and business. The following figures, taken from the published statements of the Mercantile Bank of the Americas, in Bogota, illustrate the rapid growth of the business of this bank, which is said to have a volume of business greater than that of all the other Bogota banks put together: On December 31, 1918 cash and gold in mint, 334,220 Colombian dollars; loans and discounts, 2,734,395 Colombian dollars; and deposits, 341,531 Colom- bian dollars; on March 31, 1919 cash and gold in mint, 2,455,628 Colombian dollars; loans and discounts, 4,335,406 Colombian dollars; and deposits, 1,225,172 Colombian dollars. TRANSPORTATION BETWEEN BOGOTA AND THE COAST. At present it requires from eight days to a month for a person to travel frdm the coast to Bogota. Often coffee and hides shipped from the interior do not reach the coast for four or even five months, and imports of merchandise from the coast to the interior fare little better. Merchandise intended for Bogota is shipped from the coast up the Magdalena to La Dorada, the head of navigation of the Lower River, a distance of 987 kilometers from Barranquilla; from La Dorada via the Dorada Extension Railway around a series of rapids to Beltran, on the Upper River, a distance of 111 kilometers; from Beltran by smaller steamers to Girardot, a distance of 152 kilo- meters; from Girardot via the Girardot Railway to Facatativa, on the western edge of the table-land of Bogota, a distance of 125 kilo- meters; and from Facatativa via the Sabana Railway across the table-land to Bogota, a distance of 40 kilometers; making a total of 1,415 kilometers. The Magdalena, always a slow and expensive means of communi- cation, is becoming worse year by year. During the dry season boats can not carry half their normal cargo and suffer numerous delays on the Lower River. Navigation often has to be suspended entirely on the Upper River. Unfortunately, the dry season coincides with the coffee harvest, and consequently coffee, the most important article of export from the Bogota district, is held up all along the river wait- ing for high water. In short, the business and progress of the inte- rior of Colombia is being retarded by the necessity of using the Magdalena, and the construction of a railway from Bogota to the coast is constantly becoming more imperative. Several possible routes have been considered, out the so-called Pacific Route is con- sidered the most feasible by the Government. As now planned, this route will extend from Bogota to Facatativa and Girardot over the railways now in operation, from Girardot to Ibague over the Tolima Railway (almost completed), from Ibague via a line to be built over the Quindio Pass to Palmira, and from Palmira to Buenaventura over the Pacific Railway, now in ' operation. FREIGHT TRAFFIC ON MAGDALENA RIVER. Freight charges between Bogota and the coast are excessively high. The delivery of a ton of wheat produced in the Bogota region to the flour mills at Cartagena or Barranquilla costs about 72 Colombian ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 245 dollars, and it costs 60 Colombian dollars to send a ton of coffee from Cundinamarca to the coast for export. The shipment to Bogota of heavy merchandise, such as hardware and small machinery, costs approximately 90 per cent of the New York invoice value. Despite these high freight rates, however, the Magdalena service is entirely inadequate to handle the freight traffic during the coffee- harvest season, which is also the buying season for the merchants of the Bogota district. The Pool Fluvial maintains 10 steamers on the Lower Kiver which, during seasons of high water, can handle every 20 days about 6,000 tons of through up-river freight and 8,000 tons of down-river freight. During this same time the 8 steamers of the Upper River service can each make six round trips, in good season, bringing down to Beltran 5,796 tons of freight and carrying from Beltran to Girardot 4,500 tons. Also, during this same period as much as 2,000 tons of freight often arrive at Honda from southwest- ern Cundinamarca and 4,000 tons from the Department of Caldas and the mountains of Tolima. In other words, during the coffee- harvest season, if there is sufficient water in the Upper River, 11,796 tons of export freight may arrive at La Dorada every 20 days, but only 8,000 tons can be shipped farther down. This condition causes great delay in the transfer of freight at this point. DORAOA EXTENSION RAILWAY. The Dorada Extension Railway is owned by an English company with a capital of 350,000 Colombian dollars and an outstanding bonded indebtedness of 350,000 Colombian dollars. The cost of op- eration is the lowest of any railway in Colombia with one exception. During 1917 the railway carried 125,145 passengers and 84,045 tons of freight. The gross returns for the year were 534,745 Colombian dollars and the net returns 326,286 Colombian dollars. The railway traverses a comparatively level country, has no tunnels, and only one long bridge. The roadbed is dirt filled for the most part and not well graded. The company owns 78 freight cars with a total capacity of 1,030 tons. Its locomotives are of sufficient size, but in bad con- dition, and can only pull trains of 8 to 10 cars with a total load of approximately 120 tons. Wood is used for fuel. At La Dorada and Beltran there are no docks or other freight- handling facilities except a large crane for lifting heavy machinery, and freight is transferred up and down the steep banks of the river between the railway and the river on the backs of native workmen. The sheds at Beltran are more than sufficient for the storage of freight under normal conditions, and during the coffee-harvest sea- son of 1919 held some 2,000 tons of export freight and about 8,000 tons of import cargo. A concession for an extension of this railway from Beltran to connect with Girardot has been secured by a Bogota firm. The country through which this extension will pass is prac- tically level, and the advantages to be derived from the elimination of the trip on the upper Magdalena are obvious. GIRARDOT RAILWAY. The Girardot Railway climbs from Girardot, elevation 325 meters (1 meter = 3. 28 feet), to the edge of the table-land of Bogota, eleva- tion 2,729 meters, with a maximum gradient of 4 per cent for a short distance. Landslides are frequent along the road, which is often 246 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. out of commission for several days at a time during the rainy season. The railway is owned nominally by an English company capitalized at 900,000. It has been operated at a loss and is mortgaged be- yond its actual value. One-third of the capital stock is held l>v the Colombian Government, which also guaranteed several bond issues and is said to have spent 14,800,000 Colombian dollars on the road. Additional payments, however, must be made before it can assume control. The gross receipts for 1918 were 752,352 Colombian dollars and the net returns 316,869 Colombian dollars, out of which 225,520 Colombian dollars were spent in repairs and new equipment. The gross returns for 1918 showed a gain of 32,827 Colombian dollars over those of 1917. The company owns 17 locomotives, 12 of which are in good or fairly good condition, 26 passenger coaches, and 82 freight cars, with a total capacity of 1,625 tons. About half of the freight cars are in need of repair. SABANA RAILWAY. The Sabana Railway, traversing a level and populous district, has considerable local traffic. The roadbed is dirt filled for the most part, but well graded and ditched. The track is of meter gauge. There are no tunnels and only one small bridge. The road is operated by the Compania del Ferrocarril de la Sabana, practically all of whose stock is controlled by the Colombian Government. During 1917 the road carried 653,881 passengers and 116,499 tons of freight. The gross returns for the year were 329,051 Colombian dollars and the net returns 161,453 Colombian dollars. The difficulty of navigating the upper Magdalena and the high cost of operating the Girardot Railway have induced the Colombian Government to consider the extension of the Sabana Railway to Puerto Nino, 50 kilometers below La Dorada, on the Lower River. A survey was made in 1917, and since that time grading^ has been completed and the rails ordered for the section between Facatativa and Dintel, a distance of 13 kilometers. The total distance from Facatativa to Puerto Nino is 228 kilometers, and the total average cost per kilometer is estimated at 25,000 Colombian dollars. The population of this district is approximately 95,000; agriculture and cattle raising are the principal industries. The region contains de- posits of coal and iron and numerous waterfalls for the development of hydroelectric power. Pacho is the largest town along the pro- posed route. DISTRIBUTION OF GOODS FROM BOGOTA. From Bogota goods are distributed throughout Cundinamarca and Boyaca, often by pack mule or ox, despite the excellent wagon road leading out from tne city and the two snort railways, both of which render good local service. One of these railways, the Northern, ex- tends north to Nemocon, a distance of 32 kilometers; the second, the Southern, extends southwest to Sibate, a distance of 30 kilometers. The wagon road, the Great Northern Central Highway, connects Bogota with Quiquinquira and Tunja, the two most important towns of the region north of Bogota. This wagon road, though not i;:uch used for wagons or mule carts, is perhaps the most important means of communication which Bogota or that part of the country possesses, with the exception of the railways connecting Bogota with the upper ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 247 Magdalena. It is about 200 miles long and passes through the most developed and populous region of the entire district. Passengers travel in automobile stages from Bogota to Santa Rosa, where mules must be taken for the journey into Santander. Zipaquira is the con- necting point between the Northern Railway and the Great Northern Central Highway. NORTHERN AND SOUTHERN RAILWAYS. The Northern Railway was built, primarily, to tap the salt mines at Zipaquira and the coal mines at Nemocon, but was to be extended ultimately to Quiquinquira, where it was to connect with the pro- posed southern extension of the Puerto Wilches-Bucaramanga Rail- way. The portion of the railway between Bogota and Zipaquira belongs to tne Colombian Northern Railway Co. (Ltd.), ana the 15 kilometers between Zipaquira and Nemocon belong to the Colombian Government, which is interested in the extension to Quiquinquira. The road has a meter gauge and a heavily graded and well-filled roadbed. There are no tunnels and only three small bridges. The equipment consists of 13 locomotives, 6 new and all of American manufacture; 36 passenger cars, all of American manufacture; and 83 freight cars. During 1917, 612,594 passengers were carried and 90,459 tons of freight. The gross receipts were 402,332 Colombian dollars and the net receipts 262,791 Colombian dollars. This railway has a lower operating expense than any other in Colombia. The Southern Railway was built to tap the coal beds near Tequen- dama and the timberland of the region. It traverses a populous and productive section. The track has a meter gauge, and the roadbed is rock ballasted and heavily graded. The Colombian Government purchased the railway in 1905 for about 60,000, and is now con- sidering three possible extensions, one of which is to tap the coffee region southwest of the table-land of Bogota. During 1918, 173,730 passengers were carried and 59,855 tons of freight. The gross re- ceipts were 133,381 Colombian dollars, and the net returns were 58,697 Colombian dollars. TOLIMA RAILWAY. Merchandise intended for Tolima comes up the Magdalena to Honda, and is distributed from there, or continues up the river to Girardot, and is sent inland via the Tolima Railway, now building toward Ibague, the capital of the Department. From Ibague it is sent across the Quindio Pass by pack train. Merchandise intended for Huila is sent up the river from Girardot by launch, raft, or even canoe, or sometimes during the dry season by pack train to the town of Neiva, capital of Huila. The Tolima Railway starts at Flandes, across the Magdalena from Girardot, and extends toward Ibague, which is situated at an eleva- tion of 1,299 meters near the approach to the famous Quindio Pass across the central Cordillera. It has been completed to Asiestadero. Coffee is the principal article of export freight from this district. Up to 1916 the road cost the Colombian Government 750,000 Colom- bian dollars, and during that year Congress authorized a loan of 400,000 Colombian dollars, which it was thought would finish the work to Ibague. It has been found, however, that an additional 600,000 Colombian dollars will be required for this work, and 100,000 248 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Colombian dollars for equipment and rolling stock. Also a steel bridge will have to be built over the Magdalena River to connect with the Girardot Railway, and this will probably cost 600,000 Colombian dollars. During 1917, 169,407 passengers were carried and 9,857 tons of freight. The gross returns were 49,090 Colombian dollars and the net returns 3,635 Colombian dollars. Considering the high cost of construction, the limited production of the region served, and other adverse conditions, it seems doubtful whether the local traffic will pay an adequate return on the investment. As a connecting link in the Pacific Route, however, the railway is important. An increase in traffic may be expected when the road is completed to Ibague. PROPOSED NEW RAILWAY BETWEEN IBAGUE AND AMBALEMA. According to a report by Consul C. E. Guyant, the important firm of Pedro A. Lopez & Co., of Bogota, signed in May, 1919, -a contract with the Department of Tolima for the construction of a railway be- tween Ibague, the capital of the Department, and Ambalema (Beltran) , on the Magdalena River, to connect at its river terminus with the Dorada Railway and at the other end with the new Girardot-Ibague line, which is alink in the projected Pacific Railway. The importance 1 of the projected line is that it will do a way with the necessity for us i ML: the upper Magdalena River as a link in the route to Bogota and will provide an all-rail route from La Dorada (head of navigation on the lower Magdalena) to the capital. It will also give the Department of Tolima direct connection with the main river traffic. By the terms of the contract (dated May 22, 1919), work was to begin within three months and to be completed within four years. AGRICULTURE. There is practically no waste land on the high table-land of Bogota. The soil is a rich black loam, which retains moisture, and the region is well drained by the Bogota River. Wealthy residents of Bogota own most of the farm land, the value of which varies according to the nature of the soil and the location, the most valuable being that to the north, west, and southwest along the railways radiating from Bogota. This is the one section of Colombia where modern agri- cultural machinery, such as American disk plows, tooth harrows, cultivators, and harvesting and milling machinery, is used. Labor is plentiful and cheap. The Indian peon is provided with a hut on the hacienda and a small patch of ground on which he may grow his own foodstuffs. It is estimated that Cundinamarca has some 1,550,000 hectares (1 hectare = 2.47 acres) under cultivation, and that the crops pro- duced annually are worth approximately 33,000,000 Colombian dol- lars. The Bogota district is capable of great agricultural expansion, especially the northern portion toward Boyaca, but this expansion has been retarded by the lack of cheap transportation between this district and other parts of Colombia needing wheat, cattle, and the other products of trie district. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 249 WHEAT. Cundinamarca is estimated to have had some 30,000 acres planted to wheat each year since 1916. The acreage yield is high, and in 1919 the Department is said to have produced more than 1,166,000 bushels, valued at 4,250,000 Colombian dollars. The average selling price per bushel for the year was 3.65 Colombian dollars, the high price about 4.30 and the low 2.15. Coffee is the chief product of the mountainous region between the table-land of Bogota and the Magdalena Valley. Methods of culti- vation and harvesting are more modern here than elsewhere in Colom- bia, and labor is abundant and cheap, but the industry is hampered by the poor transportation facilities of the district. Cundinamarca is said to have 32,900,000 coffee trees, covering an area of approxi- mately 89,500 acres. The yield for the Department in 1918 was about 42,200,000 pounds, valued at 3,804,000 Colombian dollars, and the 1919 yield, the heaviest ever reported, was at least 25 per cent higher. The coffee from this district, known in the world's markets under the trade name of Bogota, has an excellent flavor and aroma, and commands a higher price than the Brazilian product. Coffee grows best at an altitude of 5,000 feet, but does well up to an altitude of 7,000 feet. Trees begin to bear when they are 3 or 4 years old, are at full bearing at the age of 6 years, and continue bearing until 16 or 20 years old. The average yield of 1 pound of cleaned coffee per tree has been increased in some instances to as much as 2\ pounds where the land has been cultivated, kept, well cleared of small undergrowth, and, when necessary, irrigated. Al- though some coffee picking goes on throughout the year, there are two regular harvest seasons, the principal one from March through May and the second from October through November. Women and children are employed to do the picking. Prior to 1919 the small producers usually "sold their coffee, un- cleaned, to the wealthy owners of large plantations or to local mer- chants, in either case receiving only a small margin of the export selling price. The arrival of foreign buyers to compete with these local traders in 1919 enabled the small producers to obtain a higher price for their product, and this in turn stimulated production. New plantations are being set out and old ones enlarged, so that Cundinamarca's coffee production should be doubled in the next 10 years unless some unforeseen obstacle develops. OTHER AGRICULTURAL PRODUCTS. The Bogota district produces a wide variety of agricultural prod- ucts for local consumption. Bananas, sugar cane, tobacco, yuccas, and other tropical products are raised in the Magdalena Valley and in the river valleys of the mountainous country surrounding the table-land of Bogota. In the higher altitudes, above 6,000 feet, nearly all the products of the Temperate Zone, including potatoes, apples, and many other vegetables and fruits known in the United States, are raised. With the exception of wheat, Huila and Tolima produce enough foodstuffs for their own use but none for export to 250 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. other Departments. Some cacao, rubber, and cotton are grown in the Bogota district, but these products are still more or less of an experiment. LIVE-STOCK INDUSTRY. The live stock of Cundinamarca is estimated to be worth more than 50,000,000 Colombian dollars. No recent estimates for Boyaca are available; it possesses level and fertile land suitable for cattle raising, but as its present population is largely Indian its future development depends upon immigration from Antioquia and upon improved transportation facilities. The plains across the eastern Cordillera to the southeast of Neiva are reported to be well suited to cattle raising. They are more healthful, easier of access, and more adequately watered than those directly east of Bogota. The Cordil- lera is easily crossed at this point, and a number of Bogota capitalists have become interested in the region. More attention has been paid to the breeding and care of cattle in the Bogota table-land than elsewhere in Colombia. Hereford and Durham stocks predominate, and in weight the beef cattle compare favorably with those raised in other countries. Considerable barley and some alfalfa are raised for fodder. Cattle are becoming more valuable each year, a full-grown steer now selling for as much as 80 Colombian dollars, about twice the price received a few years ago. Some sheep and goats are raised in this district, and there is a good local demand for wool at prices equal to the high figures commanded by the imported product. The sheep industry is capable of great ex- pansion in the open mountains surrounding the high plateau, where there is an abundance of short grass and good water, but little is known as yet about the proper care or breeding of sheep. Before the war, Colombia raised few hogs and imported great quantities of lard from the United States, but hog breeaing has now become general throughout the country, and enough hogs are raised to supply the local demand. Prices are high. Mules became scarce during the coffee harvest of 1919, and their value increased from an average price of 60 to 75 Colombian dollars to as much as 200 Colom- bian dollars for good pack animals. MINING. EMERALDS. Emerald mining is a Government monopoly in Colombia. The best-known mines the Muzo and Cosquez are located in Boyaca about 90 miles northwest of Bogota; a third, the Somondoco mine, is about 35 miles east of Bogota; and a fourth deposit, the Cuincha, across the Minero River from the Muzo mines. The two last-named deposits are said to be as rich as the more famous mines of Muzo and Cosquez, but are not easily accessible. The Muzo deposits lie in a valley on a spur of the eastern Cordil- lera, two or three days' journey on muleback from Bogota over bad trails through rough country. The emeralds occur in calcite veins traversing black carboniferous limestone. To follow the veins, steel bars and shovels are used to cut down banks, great care being exercised not to injure the emeralds as the veins are approached. No engineering skill can determine beforehand the approximate value of any vein or deposit, but wherever a vein shows it is followed, ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 251 even for years, and once a productive formation is found it is worked night and day until exhausted, sometimes over a period of years, as at Muzo. The mines are heavily guarded by military police, and the miners constantly watched and searched. The Muzo and Cosquez mines have produced as much as 800,000 carats of emeralds of 15 different grades in one year. Since the war has curtailed the market for emeralds, the Government has done little to develop new veins and is said to he holding a large number of stones in Paris awaiting a more favorable market. A Parisian firm of international reputation is also holding a large deposit of emeralds from the Colombian Government as guaranty of a loan. There is no evidence that the Colombian emerald deposits are likely to become exhausted for the next few hundred years. The region north of Bogota contains enough salt to supply Colom- bia for centuries. It occurs in nearly every district between Bogota and Pacho, to the northwest; 'around the towns of Sesquite, Chita, and Munque, to the northeast; and at Cuamral and Upin. The Cuamral and Upin mines are not extensively worked, however, because of the lack of transportation facilities. Salt mining is a Government monopoly and one of the chief sources of national revenue. There are eight important Government-owned mines, the total output from which is sold to private firms who refine it by a process of evaporation. These eight mines had a total production valued at 965,894 Colombian dollars for 1918; the total expense of operation amounted to 144,651 Colombian dollars, and the net returns to 821,243 Colombian dollars. The most primitive methods of mining are employed at all these mines with the exception of the Zipaquira mine, where improvements are being made. The Zipaquira mine, the most important of the mines, is recorded to have produced a total of 739,220 tons of com- mercial salt between 1778 and 1907. Engineers report that it con- tains 500,000,000 cubic meters (cubic meter = 3. 28 cubic feet) of salt, having a weight of more than a billion kilos (1 kilo = 2. 2 pounds). Coal is found through the Bogota region and as far north toward the Magdalena Valley as the town of Velez in Santander del Sur, and as far to the northeast in the eastern Cordillera as the towns of Villavicencio and Guaduas in the Guaduas Valley. The coal is bituminous and uniformly good in quality. An average analysis shows the following composition: Per cent. Volatile 23. 4 to 31. 2 Ash 7. 65 to 7. 6 Sulphur 0. 79 to 0. 99 Free carbon 63. 68 to 70. 1 B. t. u., 14,202 to 14,500. The ordinary mining laws of Colombia do not apply to coal lands. Deposits found on unoccupied lands belong to the Government and may be worked only with its consent; but coal deposits on lands owned by private individuals may be worked independently. The most important mines now being worked are those at Zipaquira, 252 COLOMBIA : A COMMERCIAL AND INDUSTRIAL HANDBOOK. which supply the salt-evaporation plant at that place with fuel, and those at Nemeeon which supply the railways of the Bogota table-land. The city of Bogota is supplied from exposed ledges of coal on (he mountain side directly above it, and the Girardot Railway from the Cipacon mine below Facatativa. The Cipacon mine is said to pro- duce the best coal, that with the highest content of free carbon and the least volatile matter. The beds are a coarse sandstone formation interbedded with a clay shale. Three seatas of coal usually occur, varying in thickness from 0.6 meter to 1.2 meters and aggregating 2 meters as an average width. IRON. Iron is found in the neighborhood of many of the coal deposits of the Bogota district, but the ore has been worked at only two places, at Pacho and La Pradera. The first of these mines has been aban- doned, and little progress has been made at the second despite the extensive investment made there a few years ago. Little is really known of the iron deposits, but the ore is said to be refractory and difficult to smelt, ana it seems unlikely that the deposits will be a factor in the industrial development of Colombia for many years to come. MANUFACTURING. With the exception of the salt-refining plants, a good-sized tobacco factory at Ambalema, and numerous small cigar and cigarette fac- tories, the manufacturing plants of the Bogota district are all located in or near Bogota. These factories are producing flour, chocolate, candy, soap, cotton and woolen cloth, shoes, leather, and crackers, all of which compete successfully with the imported articles. Bogota has for so many years imported all sorts of manufactured products that the better classes look with suspicion on the domestic articles, even though they may be just as good as the imported ones and a great deal cheaper. Nevertheless, the demand for domestic products of all kinds is gradually increasing. Domestic manufac- tures are highly protected by existing import duties, and there is un- doubtedly a good opportunity to develop manufacturing industries. Leather, iron and steel products, paper and paper products, bags and sacks, and woolen and cotton textiles are needed. Flour, which has been used only in the larger towns heretofore, is gradually replacing corn meal among the lower classes throughout Colombia. Bogota exports flour to the coast, and to Antioquia, Cal- das, and El Vane. In 1918, at the instance of the influential Society of Agriculture of Bogota, the import duty on wheat was increased to such an extent that it became impossible for the coast millers to im- port wheat at the current prices obtaining in the United States, pay this duty, and compete with the millers of Bogota. However, the flour sent down to the coast from Bogota was expensive, much of it was spoiled in transit, and the quantity was insufficient; as a conse- quence the import duty had to oe reduced again in 1919. A large, new flour mill is being erected in Bogota that will increase produc- tion and help relieve the shortage felt oy the entire country. The five chocolate factories of Bogota cater only to the local de- mand, since nearly every town has its own chocolate factory. Choco- late roasting ana cleaning machinery is made in Medellin. The larger factories make various candies and bonbons of good quality, ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 253 which are replacing the imported articles. Good domestic chocolate candy retails for 80 cents per pound of 500 grams (1 gram = 0.002 pound) , whereas the imported article has to be sold for at least twice that price. Chocolate is used extensively as a beverage throughout Colombia, and especially in Bogota. The retail price of the local product is only about 42 cents per pound of 500 grams. The local cracker and biscuit factories make a great variety of crackers, for which there is a large and increasing demand. Formerly crackers were imported in small quantities and sold at high prices. A local textile factory makes woolen cloths, which compare favor- ably with the best English weaves, and a medium-weight, black broadcloth, which is being constantly improved upon, though it can not compare with the imported article in finish. The suit- ings retail at 5 Colombian dollars per meter (1 meter =1.09 yards) of standard double-width cloth. Although at present domestic woolens do not supply one-tenth of the demand and large quantities are imported, it seems probable that the local production will be so increased in the near future that it will encroach seriously upon the market for the imported article. There are also hundreds of small factories making coarse, loosely woven woolen blankets and the square " poncho" blankets worn by the lower and middle classes. Domestic blankets retail for 4.50 to 6.50 Colombian dollars apiece and ponchos for 2 to 6 Colombian dollars, depending upon the size, weight, and color design. Bogota has one fair-sized shoe factory with modern equipment and a number of small shops that make good-looking and well- finished shoes. These shops ordinarily use imported upper leather and trimmings, but native sole leather, which is of inferior quality. The people of the middle and upper classes wear the locally manu- factured shoes, which retail at 6 to 8 Colombian dollars per pair, whereas imported shoes of good quality sell at 12 to 16 Colombian dollars per pair. Ladies' fancy slippers and dress shoes sell better than other kinds of imported shoes. The leather tanned in Colombia has always been of a poor quality, but a modern tannery, recently established in Bogota, is producing excellent leather of many differ- ent kinds and grades. The demand for this leather far exceeds the supply, and the tannery is soon to be enlarged. The general pros- perity has increased the demand for leather. Middle-class people are wearing more shoes, and more saddles are used, so that the industry has a promising future. A number of small soap factories manufacture common laundry soap, and a few are beginning to make certain cheap grades of scented toilet soap, which is gradually replacing the imported article. The chemicals and other materials required by these factories, except the animal and vegetable fats, must be imported. The factories have little modern equipment. VOLUME OF TRADE. The market for coffee, Colombia's principal export, was poor dur- ing the war, but after the signing of the armistice the demand in- creased rapidly and the price of coffee in New York rose propor- tionately. The phenomenal crop of 1919 was sold at unheard-of prices, and the people flocked to the local markets to purchase all 254 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. sorts of merchandise. This sudden demand precipitated a mad rush among the importers to obtain supplies. The average annual volume of imports into this district may be estimated to be worth about 9,000,000 Colombian dollars. The city of Bogota has some 240 firms, each capitalized at 10,000 Colombian dollars or more, who are direct importers of foreign mer- chandise and materials. Three of the oldest and largest textile im- porters are each capitalized at more than 1,000,000 Colombian dollars, three or four others each have a capital of at least 500,000 Colombian dollars, and 15 have capital ranging between 100,000 and 300,000 Colombian dollars. Eighteen of the 240 firms are factories that import raw materials of various kinds. Five are railways which import rails and various sorts of railway equipment, including paints and lubricants. TRADE METHODS. \ The bulk of the trade with Colombia has always been in the hands of export commission houses, who supply their customers, with a wide variety of miscellaneous merchandise. At the same time these houses aid in marketing their customers' shipments of Colombian produce to the United States. In addition to the European and American export commission merchants, and possibly of even greater importance, are the Colombian export commission firms with head- quarters in America or Europe and offices and sample rooms through- out Colombia. (See p. 342.) Resident sales agents have been more successful in Bogota than elsewhere in Colombia. These men sometimes represent a single large commission firm engaged in a general export business, sometimes one which specializes, probably in textiles, sometimes several firms, and often a group of manufacturers with whom the representative has exclusive agency contracts for his territory. Bogota also has a few old and private commission and banking firms. These firms usually specialize in some line, and are often interested in a number of indus- trial and trade enterprises, for which they do all the buying. They also buy native products for export. 'IMPORTANCE OF CARE IN PACKING. Special care in packing is necessary if merchandise is to reach Bogota in good condition. A damaged shipment is a real calamity to a Colombian merchant. It means not only the loss of the sale of the goods and consequently a loss of profit, but it means the loss of interest on his money (in all probability he has had to accept the exporter's draft before the arrival of the shipment), loss of the money paid out for import duties, and endless trouble if he is to suc- ceed in getting his claims adjusted. The difficulties of transportation and the fact that import duties are assessed on the gross weight of packages have resulted in some unusual methods of packing wnich might well be adopted more gen- erally. One Colombian tobacco factory packs its products in cheap light-weight trunks, protects the trunks with burlap or sacking cov- erings, and charges for the trunks as well as their contents. The French, prior to the war, packed certain kinds of merchandise in light but strong fiber cases, forwhich a charge was made. (See p. 386.) ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 255 POSITION OF AMERICAN AS COMPARED WITH EUROPEAN GOODS. Many of the older and larger firms in Bogota are exceedingly con- servative and are still doubtful as to the advisability of substituting American merchandise for the European goods whose merits they know. Some of them have asked for and failed to obtain exclusive agency privileges for certain lines of American merchandise, and resent the fact that their high credit rating does not gain for them special protection and privileges not accorded to the newer and smaller firms. Before the war the Bogota merchants were unfamiliar with Ameri- can goods, and were inclined to view American trade methods askance. They felt that, in general, European staple commodities were superior to American, and they resented the inattention and general ignorance of certain American exporters and manufacturers regarding things Colombian. Europe needed the Colombian trade, and usually took care of it in a complete and detailed fashion. Pack- ing was adapted to Colombian transportation and customs conditions; packing lists agreed with contents of packages; special brands were marked for the benefit of the large importers of textiles, who were protected in their territories for those particular grades or designs of goods; long-term credits were granted. As a rule textiles, both cotton and woolen, were purchased from England, fancy, dry goods from France, and hardware and machinery from Germany. The war finally forced the Bogota importers to seek trade connec- tions with the United States, but they found it difficult to readjust themselves to American methods and to understand the restrictions imposed on American business by the war. In spite of these diffi- culties, however, American goods have made a place for themselves in the Colombian markets. The merchants appreciate the advantages of the quicker deliveries, which the shorter distance from New York makes possible, and their customers like the novelty and variety of American merchandise. Nevertheless, if American exporters are to retain the predominant position they now occupy in Colombian trade, they must prepare to compete with the older and more expe- rienced European firms who are again entering the field. MANIZALES AND COMMERCIAL DISTRICT. GEOGRAPHIC POSITION AND AREA. The Department of Caldas, formerly a part of the Department of Antioquia, is in the central part of the inhabited regions of Colombia. Its territory lies on both sides of the Central Range of the Andes, extending from the Magdalena River (on its northeast boundary) as far west as the headwaters of the San Juan River, and south, in a narrow wedge of territory, as far as the latitude of Girardot, the Department of Tolima lying between this part of Caldas and the Magdalena River. The Cauca River traverses the Department from south to north on the western side of the mountain range. In area Caldas is one of the smallest of the Departments of Colombia, containing only 7,915 square miles of territory. 256 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. TOIHMJRAPHY. The entire Department is a mass of mountains and hills, except for several small valleys where areas of rolling land are found, sudi as that around the .town of Pereira, in a small interior valley on the western slope of the Andes. The principal topographic feature of this Department is the snmv mountain of Ruiz, which lies to the east and a little south of the town of Manizales and on the boundary between Caldas and Tolima. This has an elevation of 18,300 feet and is covered with snow, above 16,000 feet, all the year round. It is plainly seen on clear days from the river port of La Dorada. The main trail which follows the new aerial cableway from Mariquita passes to the north of this mountain at Soledad and Frutillo and crosses the range at an elevation of 16,000 feet, very near the snow line. This mountain is second only to the peak of Tolima (18,400 feet). The entire country from Mariquita (in the Magdalena Valley, where the hills begin) to Manizales and as far west as Pereira is a mass of steep mountains with very little good land and all more or less heavily timbered. There is little agriculture aside from the cultivation of coffee. On the eastern slopes there are a few good mountain streams, the largest of %yhich is the Rio Guali ; this passes toward the Magdalena River through a great canyon over which the cableway passes at ;m elevation of 3,000 feet above the river. This river joins the Mag- dalena at the town of Honda. In the rough, hot hills out from Mariquita there are few inhabitants, but higher up, at elevations of 6,000 to 12,000 feet, are several small towns such as Fresno and Soledad, where the hillsides are utilized for bananas, yucca, small patches of sugar cane, and cattle pastures. The main body of the population appears to be in the many small towns on the western slope around Manizales. CLIMATE AND RAINFALL. Climate in Caldas is a matter of elevation. The eastern and western sides of the Department that is, at Mariquita in the Mag- dalena Valley and near Cartago on the west are tropical and malarious. The city of Manizales (elevation 7,000 feet) possesses one of the best climates in Colombia. The temperature varies very little, and the nights are always cool. Woolen suits, with light under- clothing, are worn with comfort, and, at times, a light overcoat may be desirable in the evening. Seasons are variable, but may be said to be four in number two rainy seasons, called "invierno" (winter), and two dry seasons, called "verano" (summer). September, October, and November are wet months, while December, January, and February are dry months. Rains occur during March, April, and May, while June, July, and August are dry months. There were 141 inches of rainfall in the Manizales district during 1918. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 257 POPULATION, RACIAL CHARACTERISTICS, AND LIVING CONDITIONS. The Department of Caldas is divided into five Provinces, namely, Manizales, Salamina, Riosucio, Pereira, and Manzanares. The national census of 1896 gave the Department a total population of 246,386, while that of 1911 gave the figure as 341,198. The census of October, 1918, gave a total of 428,137, of which the municipality of Manizales had 43,203. The inhabitants of the Department of Caldas are, in general, much like the people of Antioquia (see p. 227). However, after one leaves Manizales and proceeds down the western side of the range, the character of the people varies greatly. In the lower and hotter lands to the west are found people of darker skin, and many Negroes are seen. These "hot-country" inhabitants are not so industrious as their neighbors of the mountains around Manizales, and a great contrast is noted in the construction of the houses, the appearance of the fields, and, in fact, in every phase of life. In Manizales all the houses are of wood, with frame construction, except the ground-floor stories of the larger buildings, which, in some cases, are of brick, stone, or adobe. Farther down the western slope and as one approaches Pereira, bamboo is the chief material used for construction of all kinds. Entire houses, including the roofs, are made of this material. Many large groves of gigantic bamboo are seen, and even fences and domestic utensils are made from this use- ful wood. It may be said that the towns of Pereira and Cartago are built of bamboo. GENERAL ECONOMIC FACTORS. Like the progressive Antioquian, the Manizales merchant and busi- ness man is branching out toward the Cauca Valley, where he can find level and accessible land for agriculture and cattle raising. However, he does not like to live in the valley (preferring to remain in his cool mountains at Manizales) and only makes periodical trips down the mountains to his properties, which are usually in charge of managers and foremen. In the Department of Caldas, the land seems to be more divided and the plantations smaller than in Antioquia proper. There are a greater number of individual owners who work their small coffee plantations themselves. For this reason, the middle class is much larger than in other districts, and its members became prosperous during 1919 on account of the high prices received for coffee. This condition will make for better education of the young men from this class and will also create, among them a larger demand for more and better articles of foreign manufacture, principally agricultural tools and implements, coffee-cleaning machinery, etc. The wealthy Manizales merchant and business man does not live as well, nor in so good a house, as his compatriot of Medellin, nor is his store or office as well fitted up. Manizales has long been isolated from the outside world (even from the rest of Colombia) by the mountains, and is, therefore, somewhat old-fashioned. Things are still on a scale fitted to mule-pack transportation. Traveling salesmen speak very well of Manizales as a business center, and all like to do business there on account of the character of the people and the sound capital of the business houses, which 37558 21 17 258 COLOMBIA : A COMMERCIAL AND INDUSTRIAL HANDBOOK. universally enjoy an excellent reputation for prompt meeting of all obligations. CITY OF MANIZALES. Manizales is built on a low ridge extending from the Andes a "mesa" or table-land of slightly rolling character. The formation is volcanic, with a cap of red clay mixed with decomposed volcanic ash and porphyry. On each side of the town are two small rivers from which the water supply is obtained. Most large houses are equipped with running water, piped into the building. The streets are narrow, paved with cobblestones, and slightly hilly. Although all houses and buildings are of wood, they are all covered and plastered with lime and mud stucco, so that, with few exceptions, they look just like the buildings com- mon throughout Latin America. There are a number of buildings of two and even three stories in Manizales. EDUCATION. There are 248 schools in the Department of Caldas, with a total annual attendance of about 25,000 pupils in the lower grades or 7.6 per cent of the whole population. In 1918 the school budget amounted to $267,963. There is no higher school or college in Mani- fcales of any note, as compared with tnose in Medellin and Bogota, and most of the young men of the better families go to one or the other of the last-named cities for their courses in the professions. PUBLICATIONS. The one daily newspaper of any importance in Manizales is the Renacimiento, with two pages, which reprints foreign cables and news from Bogota and carries considerable local advertising matter. Its circulation is about 4,000, including copies mailed to the smaller towns of the interior. Manizales had, a few years ago, a well-organized Chamber of Com- merce, which was assisted financially by the National Government and which published an excellent Boletin Estadistica, containing all new laws, as well as production statistics of coffee, "panela" (brown sugar), imports and exports of all merchandise, etc.; but, unfortu- nately, this publication has been suspended recently on account of lack of funds from the National Government. However, the depart- mental government has recently organized a statistical division. New and larger offices are being provided, and trained men are making trips throughout the department to gather first-hand infor- mation. The Caldas government has its own printing and book- binding establishment and is turning out some very attractive work. BANKING. Manizales has two local, native banks and one branch of a foreign bank. The last-mentioned is the Banco Mercantil Americano de Colombia (Mercantile Bank of the Americas), affiliated with the Mercantile Overseas Corporation, of New York. The two native banks are the Banco de Kuiz, with a capital of 140,000 Colombian dollars (established in 1916), and the Banco de Caldas (Banco de Manizales), with a capital of 400,000 Colombian dollars (established in 1915). (Colombian dollar = $0.9733.) ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 259 The Banco de Ruiz earned a net profit of 42,329 Colombian dollars during the first half of 1919 and paid its stockholders the sum of 25,200 Colombian dollars in dividends for this six months. This bank has recently established a mortgage section, and has also loaned the departmental government the sum of 200,000 Colombian dollars for the purpose of pushing the construction work on the Ferrocarril de Caldas (Caldas Railway) . The Banco de Caldas is also interested in the loan to the Department and is cooperating with the Banco de Ruiz in the work of its mortgage-loan department. To give some idea of the great and rapid progress being made by these oanking concerns, there are shown below the figures for the capital and reserve fund of the Banco de Caldas since 1915: Date. Capital. Reserve fund. Date. Capital. Reserve fund. Dec. 23, 1915 . . Colombian dollars. 200 000 Colombian dollars. 12 184 Dec. 31, 1917 Colombian dollars. 400 000 Colombian dollars. 250,000 July 25, 1916 200,000 36,000 June 30, 1918 400,000 310,000 Dec. 31, 1916.. 350,000 63,828 Dec.31,1918 400,000 370,000 July 1, 1917 400 000 200 000 June 30, 1919. . 400 000 430 000 The Banco de Caldas has loaned the Department of Caldas 400,000 Colombian dollars for the construction of the Ferrocarril de Caldas, of which sum the Department had, in September, 1919, 300,000 dollars still on hand. To give some idea of what the coffee situation in 1919 meant for the entire country, and especially for Caldas and Antioquia, the following figures may be cited from the ledger of the Banco de Caldas. During the entire year of 1918 this bank did a business of 13,800,000 Colombian dollars, in round numbers. During the single month of July, 1919, the same bank did a total business amounting to more than 14,000,000 dollars. July was undoubtedly the highest month in 1919, on account of its being the end of the coffee season, but this shows the phenomenal increase in all business and points to the extraordinary prosperity of this section of the country. The same is true of all conee-producing sections of Colombia, such as Antioquia, Santander, Cundinamarca, and Tolima, and is one of the best reasons why American exporters and manufacturers should culti- vate these markets locally and make every effort to obtain this trade and hold it for the future. There has been an increase in the circulating medium in the De- partment from about 1,000,000 Colombian dollars in paper money to the present estimate of &,000,000 to 8,000,000 dollars, all but about 1,000,000 dollars of which is in gold coin. Local banks earn an average profit on their capital and reserve funds of 20 per cent per annum. Rates of interest were much reduced during 1918 and 1919, and commercial money can now be obtained for as low as 12 per cent per annum. All banks and capitalists of the district are cooperating in industrial development and are also assisting the Department in its work on the new Ferrocarril de Caldas, which will give the Department an outlet to the Pacific via the Upper Cauca River to Cali and from there to the Pacific port of Buenaventura, over the Ferrocarril del Pacifico. 260 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. PRINCIPAL CITIES AND COMMERCIAL TERRITORY. Manizales, though situated in the high mountains, is the center of all commercial activity on the western side of the range and is, to a very great extent, the wholesaling center for the territory as far to the south and west as Cartago, Buga, Tulua, Palmira, and even Cali. Three or four small towns of the Department of Caldas that are situated on the eastern side of the mountains buy retail stocks of goods in Honda; these towns are Manzanares, San Augustin, Maru- landia, and Pensilvania. Traffic between Honda and these towns is by means of pack animals up the hills through the town of Victoria, which also is in Caldas. The aggregate of this eastern business is very small compared with that of Manizales. The reasons for the domination of trade by Manizales over so large a district lie in the greater energy and better foreign import relations of the Manizales merchants, as well as in their larger capital and better facilities for giving long-term credits, as compared with the merchants of the Cauca district, of which Cali is the headquarters. There are to-day about 50 importing business houses in Manizales and an annual amount of approximately 2,000,000 Colombian dollars in credits is carried on the oooks of the Manizales merchants with smaller dealers of the ulterior and of the Cauca yalley. Another important town in Caldas is Armenia, in the extreme southern part of the Department. The importance of Armenia arises from its location in the heart of the rich coffee-producing region of the "Quindio" and the fact that it lies between two important districts and on the route between them namely, the upper Cauca Valley (Cali) and Ibague, the capital of Tolima, now on the route to Bogota from west to east. Most of the "Quindio" coffee moves through Armenia and out to the Magdalena River through Ibague and Girardot. Transportation is by pack animal as far as the railhead of the Ferrocarril de Tolima now being built from a point opposite Girardot toward Ibague; and this is also the famous "Quindio" route from Bogota to the Pacific Coast, via Ibague, Salento, Armenia, and thence down the western side of the Andes to the town of Zarzal, where this route joins the land route from Cartago to Cali. An automobile stage line makes connections at the small town of Buga la Grande and runs into Palmira, where there is rail service into Cali. The ride from Ibague to Buga takes three to four days, depending on saddle animals, weight of packs, and other factors. VOLUME OF BUSINESS. The volume of business in the Manizales district can always be fairly well estimated every year by calculations based on the pro- duction of coffee and its average prices during the delivery seasons. After deducting expenses of picking, cleaning, and packing to local market centers such as Manizales and Armenia, it may be said that the coffee producers of Caldas received, during the first half of 1919, a total of about 6,000,000 Colombian dollars. This amount may also be estimated to represent the approximate total for imports of foreign merchandise into this Department during 1919, the coffee harvest and prices having a direct and immediate effect on the volume of purchases of foreign goods every year. In other words, ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 261 Caldas (that is, the merchants of Manizales) bought about four times as many foreign goods in 1919 as in former good years. MANUFACTURING. Because of the lack of easy and cheap transportation and the rough nature of the country, the Department of Caldas has few factories, and none of these are very large. The principal industrial develop- ment will be the establishment in the near future in Manizales of a large cotton mill in which local and Medellin capital is interested. The sum of 000,000 Colombian dollars has recently been subscribed in Manizales and Medellin for this new factory to be located in Manizales, and the work will be in charge of experienced cotton-mill people from Medellin. The plant will be operated by electric power furnished by the municipal lighting plant, which is planning an additional unit of 200 horsepower to taKe care of this new load. The new plant will include a complete and modern yarn-spinning department. A survey by experts from Medellin showed an abundance of labor in Manizales, as well as low construction cost of buildings, etc. It is hoped to introduce cotton in the Cauca Valley and to provide the raw material from this source. In the meantime cotton will be imported from the United States, coming up the Magdalena River from Barranquilla and into Manizales over the cableway (see p. 263). The smaller factories now established in the Department of Caldas are mentioned below: The Cia. Fosforera Colombiana, at Manizales, turns out 400 gross of boxes of matches per week. It has a capital of 100,000 Colombian dollars. It imports phosphorus, wicking, wax, cardboard, labels, etc. In Salamina the flour mill of R. Restrepo e Hijos has a capital of 50,000 Colombian dollars and 'produces 300 to 400 arrobas (of 25 pounds each) of flour daily. In Salento there is the flour mill of A. Herrera, with a capital of 20,000 Colombian dollars. The factory "La Estrella," in Salamina, has a capital of 40,000 Colombian dollars and turns out 20,000 candles of paraffin and stearine daily, as well as 80 arrobas of soap. It has 12 workmen. There is another very small candle factory in Montenegro. In Armenia is the soda-water factory of M. Calle, having a capital of 3,000 Colombian dollars and employing four workmen. Two small factories in Manizales making sacks and carpets from henequen fiber are those of Uribe y Cia., with a capital of 5,000 Colombian dollars, and of J. Soto, with a capital of 1,000 Colombian dollars. In manufacturing, possibly the hat-making industry is, at the present time, the largest in this Department. A kind of Panama hat is made, like those of Antioquia and Santander. This class of hat is universally worn by the country people and those of the poorer classes. During 1917 the single town of Aguadas produced 250,000 hats, for which the makers received an average price of 1 Colombian dollar each. Hats are made in the houses of the poorer people, the entire family working in the preparation of the fiber and in weaving the hats. The prevailing type, or style, of hat does not accord with European or American ideas; the crown is too low, too small, and slightly "peaked," while the brim is too narrow. Inquiries were made with 262 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. a view to ascertaining what could be accomplished in the way of organizing this industry for exportation of hats to foreign markets, but the difficulty was said to be the reluctance of the country and small-town people to change their designs, and it was agreed that it would take a great deal of effort to get them to make other types of hats. People from Medellin secured measurements and quality requirements for the popular style of Panama hat so generally worn in the United States during the summer months, and they are now engaged in stimulating the manufacture of these hats for export throughout the Departments of Caldas and Antioquia. It is a question whether the extra returns obtainable from a larger and finer grade of hat will repay the people for the extra time and labor involved. TRANSPORTATION. Lying between the Magdalena and Cauca Rivers, the Department of Caldas and its commercial center, Manizales, are served indirectly by these two water routes to the east and to the west, but, at the present time, a considerable part of the intervening distance must be covered by pack mules or pack oxen. The logical outlet for Manizales and the populous districts of the Department would seem to be to the west, to connect with Cali and the port of Buenaventura on the Pacific over the Ferrocarril del Pacifico. This railway has now built out from Cali as far as Palmira toward the north, and a fairly good wagon road is now in operation from Palmira as far as Ovedo, about 80 miles in the direction of Car- tago, the objective of the railway. The total distance (estimated) from Palmira to Cartago is only 130 miles, and the ground traversed is practically level all the way to Cartago, though there are com- paratively few inhabitants except for a number of small towns along the Cauca River. (Seep. 410.) The total distance, by trail, from Manizales to Cartago is estimated at 60 miles, but the elevation is from 3,000 feet at Cartago to 7,000 feet at Manizales, and the country is very rough and broken, except around Pereira, where there is some good, open, rolling land for a short distance. After one leaves Pereira, the country becomes very broken, and some engineering problems, such as bridges and tunnels as well as large fills, will be en- countered on the new railway now being constructed by the Depart- ment of Caldas from Puerto Caldas on the Cauca River to Manizales via Pereira. Construction work on the wagon road from Ovedo to Cartago is being pushed by the Department of El Valle, but it will take several years to complete this important highway. RIVER NAVIGATION. There are at the present time six small steel river steamers on the Cauca River, averaging 60 tons dead-weight carrying capacity. Service is maintained for about half of the year, there being tuo seasons when the boats have to be laid up, waiting for better water conditions. The total distance served on the river, by actual river distance, is estimated at 300 kilometers, or approximately 187 miles between the river port of Mallarino, 6 kilometers below Cali, and the port of La Virginia, about 10 kilometers below Cartago. Cartago is not on ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 263 the Cauca River, but on the Rio La Vieja, the river port for Cartago being La Fresneda, about 2 kilometers from Cartago proper. Freight going to Manizales from Buenaventura comes up to Cali over the Ferrocarril del Pacifico, thence down to the river at Mallarino, 6 kilometers below Cali, by means of a small steam tramway, thence down the Cauca River by steamer to the port of Caldas, the terminus of the Ferrocarril de Caldas, and thence 15 kilometers on this line, whence the merchandise is taken into Mani- zales on pack mules and pack oxen a journey of four to five days, depending upon the weather and the consequent state of the moun- tain trail. Some freight is now moving into Manizales over this route, which is being developed, and it is hoped that transportation by it will be cheaper and more rapid than by way of the Magdalena River route and the cableway from Mariquita, on account of the shorter distance and the better country traversed. Alejandro Angel & Co. (Inc.), of New York and Colombia, owners of the Caribbean Steamship Co. and the Colombian Maritime Co. (Balboa to Buenaventura), and also the largest stockholders of the Cia. Fluvial de Transportes de Mani- zales (owning three steamers on the Cauca River and now in the market for three more boats for this traffic) , are very much interested in the development of this route to Manizales, and their subsidiary company, the Uni6n Comercial del Pacifico, of Cali, is handling freignt for Manizales over this route. The connecting links will be provided by the completion of the automobile road to Cartago and of the Ferrocarril de Caldas into Manizales. The railway was expected to reach Pereira early in 1920, and Pereira will be for many years the trail shipping point to Mani- zales for goods coming in from Buenaventura. The wagon road from Palmira will be used when the river is dry. A comparison of freight costs was made between (1) the route via the Magdalena River, the cableway from Mariquita, and pack animals into Manizales from the east, and (2) the western route above outlined. It was found that at the present time the cost of freight over the Pacific (western) route is slightly higher, but that this route will ultimately have the great advantage of quicker delivery, on ac- count of the better grades. THE CABLEWAY. The cableway above mentioned is operated by the Dorada Exten- sion Railway (Ropeway Branch), having a capital of 220,000 ($1,070,630) of 5 shares, of an authorized issue of 250,000 shares. The original company is known as the Dorada Ropeway Extension (Ltd.) , and the majority of the stock is held by the Dorada Extension Railway (Ltd.), 01 London, England. The gross receipts for 1915 were 7,530 ($36,645) and the operating expenses 5,500 ($26,766). During 1916, after the line had reached approximately halfway to Manizales from Mariquita, the gross receipts increased to about 25,000 ($121,663), and there was a substantial net increase. This company was incorporated in 1912, and the construction of this aerial cableway has been carried on during the past six years. The cableway line begins at Mariquita Station on the Dorada Extension Railway 51 kilometers (1 kilometer = 0.62 mile) from La Dorada and 60 kilometers from the river port of Beltran on the 264 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. Upper Magdalena River. The Dorada Extension Railway shops are located at Mariquita. The distance by cableway to Frutillo, the present end of the cableway line, is 37 kilometers, almost in an air- line, but the distance by trail is much greater, the ride by mule- back taking more than a day. The elevation at Mariquita is approximately 3,300 feet above sea level, while the station at Fru- tillo has an approximate elevation of 12,000 feet. The cable is carried on a system of steel towers located at points of "contact" in crossing the high mountain ridges. These towers carry an arm on which the double pulleys carrying the cable are placed. The cable is carried around drums at each end of the line, the steam- power station being located at Frutillo. The cable is a moving cableway that is, the cable itself runs up and down on each side of the towers, the cargo slings being suspended from the cable by a patent arrangement which provides for their automatic release upon reaching the unloading station. At the point of suspension on the cable itself these carriages have a double set of sheaves which "ride" the pulleys of the tower arms upon passing over these latter when in motion. Power is provided at Frutillo, consisting of a 35-horsepower steam engine, actuating the drum over which the end of the cable passes. New tower construction is now completed as far as the highest point on the "paramo" to be crossed by this line to reach Manizales, this point being about 20 kilometers (12 miles) from Frutillo. The total length of the line when completed will be approximately 75 kilometers (46 miles), or the longest cableway in the world. The principal cargo handled by this cableway consists of coffee from the Manizales district and merchandise for Manizales moving in from the Magdalena River route. CALDAS KAILWAY. The construction of the new railway, the Ferrocarril de Caldas, was begun by the Department of Caldas in 1917, but only during 1918 and 1919 has the work progressed to any great extent. The object of this new line is to connect Manizales with river navigation 'on the Cauca River (at Puerto Caldas) and thereby with Cali and the Pacific coast over the Ferrocarril del Pacifico. Plans also call for the ex- tension of the line to the north to connect with the Ferrocarril de Amaga now being built south from Medellin to the Cauca River, but this latter work is an enterprise for the future. The work is being^ done by the Department of Caldas mainly with its own funds, aided by a subvention from the National Government of 15,000 Colombian dollars per kilometer. The number of kilometers constructed and in operation in the fall of 1919 was about 16. The number of kilometers graded was 21. The gauge is 36 inches. The rails weigh 55 pounds per yard. The maximum gradient allowed is 2 per cent, and the minimum curve radius 16 degrees. The rolling stock includes two locomotives of 20 tons capacity, one locomotive of 40 tons capacity, one second-class passenger car, nine similar cars now on order, five freight cars of 15 tons capacity now on order, five freight cars (box type) in use, six flat cars of 15 ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 265 tons now in use, two cattle cars of 12 head each, two push hand cars for road work, and four similar hand cars on order. The Department of Caldas has been supplying its needs for this new railway through two export commission houses in New York. The reason for this method of buying is that these commission houses grant the Department six months' credit for all materials and ma- chinery ordered through them, and at the same time they know how to pack and ship the goods ordered. tip to December 31, 1918, the total cost of this railway was 665,719 Colombian dollars. The total amount owed by the Department for the railway was 227,683 dollars. The assistance given to the railway by the Department amounted to 473,678 dollars, while the subvention from the National Government totaled 225,000 dollars. The Department of Caldas has a proposition, approved by the Assembly, for securing a 2,000,000-dollar foreign loan to be used ex- clusively for the active work on this railway. This loan would be guaranteed by the railway and by various departmental revenues. The entire product of the "renta del tabaco," or tobacco tax, a mo- nopoly of the Department, amounting to an average of 28,830 Colombian dollars monthly, is at present assigned to the railway work. It is hoped that when this railway line reaches Pereira the gross receipts will be very greatly increased, as the railway will then pass through a populous and prosperous district. This line should pay very well between the Cauca Kiver and Pereira. DEPARTMENTAL FINANCES. The total revenues of the Department of Caldas in 1911 amounted to 379,333 Colombian dollars, while in 1918 these had increased to 1,014,524 Colombian dollars. The total revenues for 1919 were cal- culated at 1,068,428 Colombian dollars. The expenses of the De- partment during 1918 amounted to the total of all revenues. The railway earnings hi 1918 amounted to a total of 7,763 Colom- bian dollars, while the total operating expenses were 4,340 dollars, leaving net earnings, for 15 kilometers, of 3,423 dollars. AGRICULTURE. The Department of Caldas produces a variety of agricultural prod- ucts, chief among these being coffee, wheat, potatoes, corn, beans, sugar cane, bananas, yucca ("casaba"), and cacao. Some tobacco is also grown, but in small quantities. COFFEE. As in the Department of Antioquia, this region's chief product is coffee. Coffee is the salvation of this land of volcanic mountains and varied climatic conditions. In Caldas the plantations are all small; a large plantation has only 40,000 trees, and there are few that have 25,000. Official statistics for 1911 gave the total number of trees in Caldas as 6,600,000, of which 5,000,000 were full grown. The pro- duction was given as about 150,000 sacks. In the 1918-19 harvest season the production was 220,000 sacks, which, at an average of 1 pounds per year per tree, would give a total number of trees in the Department of 20,000,000. 266 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Production of coffee is a matter of soil, combined with climate and care of the trees. The average production is said to be 1 pound per year increased in many places to as high as 1\ pounds per tree per year on account of better soil, climate, or cultivation. Mani/alcs coffee grades as high as Medellin, which is better than Tolima, San- tander, and Cundinamarca coffee. This grade, known as "Medellin" in the New York market, always commands a few cents per pound more in price. Departmental authorities state that the planting of coffee trees has been stimulated to a very great extent by the favorable condi- tions obtaining during 1919 and that an increase of at least 40 per cent can be expected in due time. The largest coffee-producing district of Caldas is the "Quindio," of which the town of Armenia is the center. LABOR SITUATION. From all reports it would appear as if at certain seasons of the year there were a labor shortage in the Department of Caldas. This is due to the fact (already mentioned) that property is divided into small plantations and there are many thousands of families owning and working very small pieces of ground, just sufficient for their own support. These people will not work by the day for others except at certain times of the year when their own plantations dp not require their attention. Hence, during the coffee season there is a shortage of labor, and men have to be brought in from Antioquia to the north and from even as far away as Cuncfinamarca and Boyaca, where there is an oversupply of common labor and wages are much lower. This imported and local labor earned during the coffee harvest of 1919 (March, April, and May) as high as $1.25 per day, an unprecedented wage for this region. This same condition also applied to the new railway work of the departmental government. Not .enough men could be secured in the Department for that work (2,000 men were wanted), and agents were sent to bring in contract labor from Cundinamarca and Boyaca. However, though better wages were paid than in their own districts, these men proved a failure so far as creating any large body of effi- cient labor in Caldas was concerned. Many of them aroppecl out on the way across the mountains and returned home as best they could, and the few who arrived at the work soon became sick in the lower altitude and hotter climate. The average "peon" (laborer) does not like to work in the coffee plantations on account of the malaria sure to be contracted there, and the better workers of the higher elevations do not go down to the plantations if they can avoid it. The average wage for a 10-hour day paid on the railway work is $0.691. This is the labor factor taken in figuring the cost of dirt work, etc. LIVE STOCK. The town of Pereira is the center of the cattle-raising industry for the Department of Caldas. The estimated number of head of beef cattle is about 350,000, valued at about $6,000,000. There are said to be about 170,000 steers in addition to the number mentioned. There are about 52,000 horses and 13,000 mules. ECONOMIC CHARACTERISTICS OP NINE COMMERCIAL DISTRICTS. 267 As in A.ntioquia and elsewhere in the Cauca Valley, artificial pas- turage is planted in cleared fields for cattle raising. It may be esti- mated that there are about 150,000 hectares (1 hectare = 2.471 acres) under fence and in pasture in the Department of Caldas. TOBACCO. Official statistics for 1918 give the number of tobacco plants in the Department as 3,320,450, in 2,155 plantations. During 1918 Caldas exported to other Departments 50,708 kilos (kilo = 2. 2046 pounds) of raw tobacco, principally to Antioquia, El Valle, Tolima, and the Choco, for which the Department collected a tax of 28,921 Colombian dollars. During the same period Caldas imported from other Depart- ments 91,154 kilos of tobacco of all classes, including manufactured, for which the Department collected a rental of 58,633 Colombian dollars. MINING. Next to coffee, mining may be said to be the most important indus- try of the Department of Caldas. During 1918, 31 new mines, or claims, were located in Caldas. All but one of these new claims were for vein mines. Eighteen claims were relocations of old mines, or claims, the others being for new discoveries. It is worthy of note that all claims were taken out in the name of native Colombians. This is due to the new mining laws of the Colombian Government, which prohibit foreigners, whose countries do not allow reciprocal privileges to Colombians for the location of claims, from locating mining property in Colombia. This restriction regarding foreigners is circumvented by having some trusted Colombian agent locate the mine, or mines, in his name. Mining property may be transferred to foreigners by Colombian citizens with the express consent of the National Government. During 1918 there were abandoned in Caldas, for non-payment of taxes, 62 mining claims, of which 9 were gold placer claims and the rest were all given as veins of gold and silver. During the same year 14 titles to mining claims were authenticated by the Govern- ment, of which 2 claims were new-vein mines, 10 old-vein mines, and 1 an old placer mine. At the present time there are two mines of note in the Department of Caldas that of "El Sancudo," a rich gold mine owned and operated by Medellin and Manizales capital, and the mines of the Colombian Mining & Exploration Co. at Marmato. These latter mines, consisting of a group of rich gold-bearing veins, have been exploited by this English company for the past 100 years. The properties are on the west bank of the Cauca River in the northern part of the Department near its boundary with Antioquia and west of the town of Salamina across the Cauca River at or near the point of the junction of the Rio Ppzo. This company is purchasing a large amount of new and modern machinery and expects to extend operations in the near future. The Marmato mines are among the richest gold mines in Colombia and are said to be capable of great production. The eastern slopes of the Central Andes in Caldas show many old placer workings, and there are three or four large properties owned by foreigners, principally English people. However, at the present 268 COLOMBIA: A COMMERCIAL Atfo INDUSTRIAL HANDBOOK. time these properties are not being worked to any extent, except by natives here and there by hand-washing methods. The natives of Caldas, like those of Antioquia, are very good surface miners and maybe supposed to have "surface-prospected" their district very thoroughly. It can not be said that any new and large discoveries will be made in the near future in this Department; rather, the opportunity in mining for the foreigner lies in taking over small, rich gold properties in which the natives have exhausted their ingenuity, upon reaching the water level, and modern machinery and methods are required to develop the properties further. TRADE CONDITIONS AND DEVELOPMENT METHODS. At the present time the Manizales trade is in the hands of certain New York export commission houses, principally of Colombian origin, such as the Antioquia Commercial Corporation, Alejandro Angel & Co., and others. These houses have been able to obtain and hold this trade by reason of their intimate knowledge of the requirements of this market, of the people with whom they are doing business, and of transportation and shipping conditions. These Colombian firms established in New York are also interested in the local industrial development to a very great extent and cooperate with local capital to this end, helping in every way they -can. Resident agents for European goods (such as English woolens and other textiles), having headquarters in Medellin and maintaining branch houses or agencies in Manizales, secure a large share of the trade in cotton goods and woolens and other European specialties which are in demand in the country and are "stock articles. One agent from Medellin took 140,000 worth of orders for English textiles in Manizales during one week in June, 1919. The solution for American trade would appear to be the same as recommended for Bogota and Medellin, namely, resident agencies carrying new lines of samples and becoming well acquainted with the local people and their trade requirements. Such agencies could be combined with those for Bogota, as is being done by several large English houses with headquarters in Bogota and with employees, both Colombian and English, in Medellin and Manizales. From Manizales the trade work could easily be developed to cover the Cauca Valley, Cali, etc., and from Cali the system could be extended in time to Popayan and Pas to. The significant fact to be recognized is the success of the European agents. These men are making money on their commissions and are doing excellent work for their manu- facturers and exporters. The main idea is to have a man on the ground who knows conditions intimately and who has a line of samples ready with definite quotations at all times. These agents also take tiare of trade complaints and disputes and watch the business gener- ally. It may be considered that this system is the most powerful factor in Colombian trade. CALI AND COMMERCIAL DISTRICT. LOCATION AND TOPOGRAPHY. The town of Cali is the trade center for the Department of El Valle, which extends from the Central Cordillera on the east to the Pacific Ocean on the west, and from the Choco Intendency and the Depart- ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 269 ment of Caldas on the north to the Department of Cauca on the south. Except for the Cauca River Valley, one of the few accessible stretches of level land in the inhabited portion of Colombia, El Valle is rough and mountainous. The Cauca Valley extends from the southern to the northern border of the department, and is bounded on the east by the lofty Central Cordillera and on the west by the lower Western Cordillera. It is from 3,000 to 3,500 feet above sea level, and averages from 15 to 25 miles in width. Cali is located in this valley near the foothills of the Western Cordillera and is acces- ' FIG. IS. Map of Cali region. sible by rail from Buenaventura, the ocean port of El Valle, through a depression in the Western Cordillera known as La Cresta del Gallo. This pass has an altitude of 5,250 feet. CLIMATE AND RAINFALL. In El Valle, as in all mountainous parts of Colombia, climate de- pends primarily upon altitude. The Cauca Valley is semitropical and not particularly healthful, but as the elevation increases to the 270 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. east and west the climate improves. The average temperature for the summer months at Cali is 90 F. Cartago, farther north and lower in the valley, is warmer. The Cauca Valley has four irregular seasons. In general, the spring and fall months are rainy and the summer and winter months dry. The fall months constitute the season of heavier rain and the summer months the hotter dry season. The annual rainfall in the valley does not exceed 60 inches, and in the Palmira district it is necessary to provide irrigation for sugar cane and similar crops to insure them against protracted dry seasons. At the port of Buenaventura it rains almost every day, the average annual rainfall reaching 200 inches or more. AREA. POPULATION, AND SCHOOLS. El Valle has a total area of 4,179 square miles and a total popula- tion of 271,630. Considering the percentage of the total area which is tillable and the comparatively good transportation facilities, the population is small as compared with that of the Departments of Caldas and Antioquia to the north. This is attributed partly to the inefficiency of the available labor in El Valle and partly to the fact that most of the fertile land in the valley is* con trolled by a few wealthy families; whereas in Antioquia and Caldas the property is divided among many small holders. A comparison of the 1918 and 1911 census figures shows an increase of 25 per cent in the total population of El Valle during the period. 'This increase is generally attributed to immigration from Ajitioquia. In 1917, El Valle had more than 250 primary schools, with about 23,000 pupils in attendance. Cali has four private colleges conducted by various religious orders. The departmental budget for 1919-20 allots 162,461 Colombian dollars, to schools, and the tobacco tax has been increased to provide funds for the erection of modern school buildings and for agricultural courses. (Colombian dollar=$0.9733.) ECONOMIC RESOURCES AND DEVELOPMENT. El Valle possesses land suitable for cattle raising and sugar grow- ing, excellent woods for local building and manufacturing purposes, coal, and a fairly good harbor on the Pacific, which affords an outlet to the markets of the United States and Europe, as well as to those of the west coast of South America. Moreover, the natural trade route for imports to and exports from the rich coffee-growing regions of Caldas, Antioquia, and the Quindio is through Cali and Buena- ventura. In view of these facts, it would seem that the Cauca Valley should be one of the most prosperous sections of Colombia; but its development has been retarded by the following conditions: Nearly tropical climate, which produces, a certain amount of physical inertia. The limited amount and inferior quality of labor, a condition which is aggravated by the ignorance and lack of ambition of the lower classes, who are largely Negro, and by the ease of life in this region, where shelter may be obtained by a few days' work with a machete, and food by planting a few bananas and stalks of cane. The fact that most of the land is held by a few large landowners whose activity is limited to cattle raising, a profitable business which can be carried on with little su- pervision and few laborers. Control of capital by these landowners whose interests keep them in Bogota most of the time. The fact that, although polished and intellectual, the upper-class Caucano lacks the perseverance and practicality possessed by his neighbor, the Antioqueno, who ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 271 is fast invading his territory and successfully competing with him in all lines of en- deavor. The former isolation of this rich region from the outside world and from the interior of Colombia, and the long period of political strife and civil wars in which the Cauca- nos took a regional part. DEPARTMENTAL FINANCES. El Valle is in excellent financial condition as compared with some of the other Departments, and the officials are bending every effort toward its rapid development. The income from the internal-revenue tax on liquor and tobacco and the slaughter tax, the chief sources of revenue, has increased during the last few years, and now provides a surplus beyond the current expenses. The actual income from these taxes during 1918-19 was over $1,046,000, and the income for 1919-20 is estimated at $1,120,000. Revenues from other sources amounted to approximately $36,000 for 1918-19, and are estimated at $34,000 for 1919-20. In addition to these revenues, the 1919-20 budget includes $3,300 bond interest and the $1,000,000 Amsinck loan, the proceeds of which are being used largely to build the new pier at Buenaventura. The sum of $350,000 is being allotted annually to payments on the public debt, including the sum of $25,000 per month, interest and principal paid on the Amsinck loan. An appropriation of $277,000 was spent for public works during 1918, and $108,000 during the first half of 1919. These expenditures for public works represent principally work done on roads and public buildings. The 1919-20 budget allotted $1,123,000 to public works, most of this sum to be spent for the new pier at Buenaventura and road work. A careful analysis shows that revenues have been steadily increasing, and it is hoped that the budget will show a surplus, which will be allotted to public works, to extend the work of road and bridge building already begun, and to begin the canalization of the Cauca. El Valle desires a foreign loan of approximately $2,000,000, the proceeds to be used for public improvements, especially road build- ing and river work. The fiscal condition would seem to warrant such a loan, but as yet no definite plan has been worked out. CALI AND ITS COMMERCIAL RADIUS. Cali has a population of about 26,000. On the whole, the town presents a rather Spanish-colonial appearance in spite of the fact that many of the old adobe buildings are being demolished in the business district and replaced by two and three story brick build- ings which are modern and attractive. The streets are paved with cobble stones. The town lacks adequate drainage and water sup- plies, but pipes have already been laid for the new sewerage and water-supply systems that are being installed, and it is planned to improve the paving as soon as this work is completed. The present accommodations for travelers are inadequate, and the town is badly in need of a new and modern hotel. Theoretically, the commercial radius of Cali should extend north into the lower Cauca Valley as far as Cartago, east as far as the town of Armenia in the Quindio coffee region, and south to Popayan in the Department of Cauca. In reality, however, the Cali mer- chants have been content, until very recently, with the limited field 272 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. presented by the immediate Cauca Valley. Business has been con- ducted on a smaller and more restricted scale than in Manizales or Medellin. The Cali merchants do not carry large stocks of standard goods, such as textiles for the interior trade, as the Manizales mid Medellin merchants do, and do not specialize in particular lines. In- stead, they carry small stocks of a variety of merchandise on which they can make a quick turnover, and competition for the local trade in fancy dry goods and women's and men s wear is keen. The C:ili merchant has habitually invested his profits in cattle in- stead of using them to increase his capital from year to year, and his connections with his foreign markets have been unsystematic or hap- hazard. Consequently, it is often better business for him to buy wholesale from the Manizales and Medellin merchants who have more capital and good foreign trade connections than to buy abroad. He may pay more for these goods, but the credit terms offered are correspondingly better. PACIFIC RAILWAY. The Pacific Railway extends from Cali to Buenaventura, a distance of 174 kilometers (1 kilometer = 0.62 mile), from Cali northeast to Palmira, a distance of 25 kilometers, and from Cali south to Gua- chinte, a distance of 34 kilometers. The line between Buenavtentura and Cali was begun in 1878; but it was not finished until 1914, con- struction being difficult on account of the engineering problems involved, inefficient labor, the incessant rains, and the unhealthful- ness of the tropical coastal region. The branches northeast and south from Cali are still under construction. The Palmira branch is to extend down the Cauca Valley to Cartago, a total distance of 172 kilometers from Cali, and the southern branch to Popayan, a total distance of 160 kilometers. This southern branch is already nearly completed for about 20 kilometers beyond Guachinte. A branch from Palmira to Santander, a distance of 70 kilometers, is planned but has not been begun. The present Colombian Government favors the so-called Pacific Route from Bogota to the ocean, the advantages of which have been repeatedly discussed. This plan, which involves the extension of the Pacific Railway from Palmira over the Quindio Pass of the Central Cordillera through Armenia to connect with the Tolima Railway, now under construction, would give Cali direct connection with Ibague and Girardot, and would greatly increase its commercial radius. From Buenaventura to the town of Caldas or Dagua, a distance of 82 kilometers, the Pacific Railway follows the Dagua River, a swift mountain stream, which it crosses many times. At Dagua, altitude 2,730 feet, it begins the ascent to La Cresta del Gallo, alti- tude 2,250 feet, a distance of 135 kilometers. This portion of the Pacific Railway on the western side of the Western Cordillera could not accommodate heavy traffic in its present condition. For many miles the track is in constant danger of being washed away by floods from the Dagua, and the reduced curve radius and the heavy grades make it impossible for a locomotive to haul more than '10 freight cars. That portion of the Buenaventura-Cali line on the eastern side of the mountains is of heavier construction, with greater curve radius and smaller grades. There are 12 tunnels between Cali ECONOMIC CHAKACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 273 and Buenaventura, with a total length of 2,116 feet. Two of these tunnels have been blasted out of solid rock, and the others are lined with concrete. All bridges are of steel, the longest spanning the Cauca between Cali and Palmira. At present the railway has no dock at Buenaventura, but one is under construction. The company's principal repair shops are at Dagua, while smaller repair shops and the principal supply stores are at Cali. It owns 23 locomotives ranging in weight from 20 to 55 tons, 40 passenger cars, and about 200 freight cars. The locomotives use bituminous coal from the Cali fields. A contract made between the National Government and the Pacific Railway Co. in July, 1919, gave the entire control of this road to the Government. Total receipts of the company for 1918 were $424,788, and expenses, including work on the Popayan branch, amounted to $444,461, which left a deficit of $19,673. During the first six months of 1919, the company netted a gain of about $19,000, which it was estimated would be increased to $40,000 by the end of the year. This is the first time in the history of the road that the annual returns have shown a profit. NAVIGATION ON CAUCA RIVER. The Cauca River flows near the western side of the valley and is fed primarily by small streams from the Central Cordillera. It is navigable for five or six months of the year, though it is never a very dependable means of communication because it has many snags, sand bars, mud banks, and rocks, and is subject to floods and long droughts. Two companies operate lines of steamers from Mallarmto, 7 kilo- meters from Cali, north to the port of La Virginia, a distance of approximately 300 kilometers by river. One of these companies. La Compania de Navegacion del Rio Cauca, has its head office in Call and operates three steel-hulled steamers of 59 tons capacity. Wood is used for fuel on these boats, and their stern-wheel engines can develop about 100 horsepower at 180 pounds of steam pressure. The other company, La Compania Fluvial de Transportes de Mani- zales, operates three steamers, one of 50 tons capacity, one of 35 tons, and one of 20. This company is particularly interested in business with Antioquia, Caldas, and the Quindio region. Both these com- panies benefited from the increased amount of coffee sent from the Quindio region to Buenaventura during 1919, and both are ap- parently prosperous. Passenger and freight service reaches the towns of Yumbo, Pal- mira, and succeeding stations to Zarzal (where the trail leaves for the Armenia and Quindio route to Bogota), and on to Cartago, Puerto Caldas (the river port for the new Department of Caldas Railway now building toward Pereira), and La Virginia, about 10 miles below Cartago. As a rule, these towns are built some distance from the river bank, and freight must be carried to and from the land- ing places on mule back. Freight rates are quoted on each " tercio" (half mule cargo of 300 pounds) or on separate packages. Both passenger and freight rates are higher for the upriver trip than for the downriver trip. 37558 21 18 274 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK ROAD AND TRAILS. An automobile road follows the eastern side of the Cauca River north from Palmira to Buga la Grande, from which point pack animals must be used to carry goods to such interior points as Armenia. At the present time there are only two autotrucks in use on this road, few carts, and no large wagons. Freight is also sent north from Palmira by pack train to Cartago and from Cartago north along the Manizales-Pereira-Cartago trail, especially during the dry season when the river is not navigable. CATTLE RAISING. The quantity of good pasture land available and the ease with which cattle raising can be carried on with limited capital and in spite of the scarcity of efficient labor have inevitably made this industry the most important one in El Valle. The most accessible and best cattle land is in the level valley and has been purchased by local people, who are making large profits on their investments and dp not care to sell their land except at a very high price. In the vicinity of Palmira, where the valley is nearly 40 miles wide and the soil very rich, the natural pasturage is used; but farther north where the timber is heavier, the land is cleared and planted with artificial grass. The natural pasture land will support about one head of cattle per hectare (2.47 acres), and well-watered ground along the river, planted to artificial grass, will feed two head per hectare. It costs about $20 per hectare to clear, plant, and fence new cattle land. In addition to these more desirable pastures in the valley, there are small pastures scattered along the hillsides; but these are considered less valuable, because it often becomes necessary to drive the cattle from them down into the valley during the protracted droughts to which this region is subject. About 700,000 hectares, approximately 28 per cent of the total area of El Valle, is now being utilized for pasturage, and it is esti- mated that the Department contains some 580,000 hectares of unused land suitable for pasturage in the hill districts and 180,000 hectares in the valley. Deducting from the total amount of unused land an amount to be utilized for agricultural purposes equal to that now under cultivation, 370,000 hectares, there remains about 390,000 hectares of unused land suitable for pasturage. In 1915, when the last census was taken, the Department contained 429,000 beef cattle, which number was estimated to have increased to 524,000 in 1918. The Government estimates that this number could be increased to a million if all available pasture land were utilized. It is estimated that approximately 37,600 beef cattle were con- sumed locally during 1917, and that the Department's consumption is increasing by 10 per cent annually. About 40,000 cattle are marketed outside the Department each year, the largest number in Antioquia and Caldas, and a small share in the Cnoco Territory. During 1919, fat beeves, 4 to 5 years old, sold for $80 per head in the local market and two-year olds for $35. The west coast of South America and the Canal Zone constitute a large potential market for the beef products of this district, and the feasibility of establishing a packing house is being discussed. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 275 AGRICULTURE. Sugar is perhaps the most important agricultural product of the valley. The latest statistics show a total of 8,000 hectares planted to sugar cane and a total annual production of 5,250,000 kilos (1 kilo = 2.2046 pounds) of refined sugar, 10,300,000 kilos of panela (unrefined sugar), and 4,000,000 kilos of molasses. Converting these produc- tion figures to American standards, the average yearly yield is found to be about 2,200 pounds per acre. When considering this figure, it must be borne in mind that there is only one large, scientifically cul- tivated sugar estate in El Valle and that the remainder of the crop is raised on small patches of ground which receive little care. The soil and climate are exceedingly favorable to this industry; and esti- mates agree that, if sufficient capital and labor could be obtained, the amount of refined sugar available for export each year could be in- creased by 20,000 tons over the present figure. The Cali Chamber of Commerce has long advocated the planting of cotton in the Cauca Valley. The Antioquia mills afford a ready market for all that could be produced, and the soil and climate are said to be suitable, but all attempts to introduce the industry have failed. Small patches of corn, yucca, and bananas are planted throughout the Department, and a sufficient quantity of these products are raised to supply the local demand. Their market price is steadily increasing. MANUFACTURING. There is almost no manufacturing in the Department of El Valle. The largest textile mill, capitalized at 12,000 Colombian dollars and employ- ing 14 operatives, makes a cheap cotton shirting for the trade of El Valle, Cauca, Caldas, and Narino. There is one small chocolate factory which supplies the local demand, one small soap and candle factory, a branch of a soda-water factory, and a cigarette factory using to- bacco from Antioquia and Santander and selling its output in El Valle and the Choco Territory. Popayan has a factory which makes henequen fiber bags and mats, is capitalized at 24,000 dollars, and has 14 employees. Cali has a similar factory, but it is too small to supply even local demand. There are a few other small factories in the dis- trict, including three coffee-cleaning mills. The practicality of establishing a tannery in Cali is under con- sideration at the present time by a firm that is now erecting one at Manizales, and the feasibility of starting a cotton factory has been discussed. It is urged that a cotton factory could not fail to be a profitable investment, but it has been impossible to attract local capi- tal to such an undertaking. The laboring classes prefer light factory work to the heavy work of the cattle ranches and are moving in a constantly increasing stream from the country into the towns, so there would be a sufficient supply of labor for a cotton factory. Fuel is plentiful and cheap. Sucn a factory could market its products throughout the Cali and Tumaco commercial districts and could make at least half the types of cheap cotton goods now imported at Buenaventura. These imports amount to approximately $1,115,000 a year. Perhaps the most interesting industry of the Cauca Valley is the manufacture of brick and tile. The plant belonging to Alejandro 276 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Vallejo y Cfa., the most important in the valley, has a capacity of 5,000 to 10,000 bricks and tiles every 10 hours, and makes 42 varieties of hollow tile and building brick. It is equipped with modern brick- making machinery and employs what is known as the stiff-mold process. The clay used comes from the near-by hills and is so fine in grade and texture that bricks made from it nave almost the ap- pearance of Italian terra cotta. It is particularly suited to the tropi- cal climate and excessive dampness 01 this region, and is being used in the construction of many of the new buildings in Cali. COAL DEPOSITS. The general dip of the outcroppings of coal found in the foothills of the Western Andes near Cali, and the shape and position of the valley, are generally conceded to indicate the presence of coal beds under the level floor of the valley. The veins so far discovered ex- tend from Guachinte, southeast of Cali, to Punta Yumbo, northwest of Cali, a distance of approximately 83 kilometers. This coal is bitu- minous, somewhat friable, steams easily, and will coke nicely. The following analysis indicates its quality: Volatile matter, about 23 per cent; ash, between 5.38 and 7.66 per cent; sulphur, about 0.77 per cent; and free carbon, between 68.05 and 70.58 per cent. The importance of this coal reserve so near the Panama Canal is well understood, and it is confidently predicted that coal mining will be one of the important industries of the future. Good coal is badly needed for both rail and water transportation on the west coast of South America; engineers who have examined the Cali deposits agree that their exploitation for commercial purposes is entirely practi- cable; and the Government officials are anxious to encourage the development of the Department. There is one serious drawback to the development of these reserves, namely, the limited carrying capacity of the Pacific Railway between Call and Buenaventura. Five or six mines are now in operation near Cali with a total monthly output of approximately 3,000 tons, but the work is not carried on steadily, and the mine equipment is antiquated. About 250 to 300 men are employed at the mines, but the tonnage produc- tion per man is low, and the mining costs are high. At present, little coal is used locally except by the Pacific Railway, which pur- chases most of the output of tne Cali mines. Some coal was shipped recently to Peru and Ecuador, but the high cost of handling made it an unprofitable business. The cost of coal at Cali, delivered at railway freight sheds, is $7 per ton. No real development work has been undertaken by foreign inter- ests. Some prospecting was recently started by two Americans ; and the Canal Commission at one time offered to take steps toward the exploitation of the Cali coal beds, but abandoned the idea because of the excessive prices demanded by the owners of local lands for the purchase of their property. Coal lands do not come under the exist- ing mining laws, and are, therefore, not open for location of claims. Coal reserves are generally held to be the property of the Govern- ment unless the title of the owner of the land antedates the land laws of 1876. Most titles in the Cali district do antedate 1876 and there- fore give the owners free right to sell or work their coal fields, but any foreign company entering the field in the future should have ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 277 some arrangement with the Government before making any pur- chases. PORT OF BUENAVENTURA. Buenaventura is only 360 miles from Panama and is the first port of call to the south of the Canal. The Colombian Navigation Co. and the Pacific Steam Navigation Co. maintain regular, monthly, round-trip services to Colon; and a boat belonging to the Rolph Navigation & Coal Co. makes monthly calls. The Bay of Buena- ventura is about 8 miles long and the navigable channel is very nar- row. There are no aids to navigation. The mouth of the bay is wide, but the water on both sides of the channel is very shallow; and the harbor, which is more or less filled with silt, would require dredg- ing for vessels of over 3,000 tons burden. The town of Buenaventura is situated on a small, low island, origi- nally a swamp, and is separated from the solid mainland by great mangle swamps through which the Dagua River flows into tne bay. Because of the danger from river floods and from the tides, which have an average rise and fall of about 15 feet, the town has been practically built on piles. The present population is approximately 4,000, of whom 90 per cent are Negroes. The town has no water supply other than the rain water caught in barrels on the roofs of the wooden houses, and there is constant danger of disease. Because of unhealthful conditions a strict quar- antine is maintained against Buenaventura by canal authorities, although there has been no epidemic of yellow fever since 1916. To improve these conditions it would be necessary to fill in the town with dredgings from the river and completely rebuild it with a proper sewerage system and an adequate water supply. Ships anchor about one-half mile from shore, and cargo is trans- ferred by means of large covered steel lighters. Eight of these lighters are available, and they are drifted to and from shore on the tidal current, which at tunes runs 4 miles an hour and is suffi- cient to drift loaded lighters of 500 tons capacity. Tugs are never used. The lighters are landed at the railway freight sheds and the cargo unloaded by hand. The cost of handling freight varies greatly because of the heavy rains which interfere with loading and unload- ing throughout the year, but labor, lighter hire, and miscellaneous charges may be estimated to average about $2.10 per ton for export cargo and $2.70 for import cargo. As many as 500 men can be recruited at short notice for steamer work. This labor is performed by native, unskilled negroes, who receive an average daily wage of about $1.20. A new pier is being built at Buenaventura 393 feet from shore, where the water is 18 to 20 feet deep at lowest tide. It will have two railway approaches and one wagon road, and will accommodate two steamers alongside. June, 1920, has been set as the date for the completion of the construction work, which is being performed by Jamaican laborers, and is in charge of American experts from Panama. Freight will be loaded directly into railway cars, and it is esti- mated that the freight-handling costs on export cargo will be low- ered by approximately $1.70 per ton, and on import freight by about $2.20 per ton. The Department of El Valle is to be permitted to charge $1.50 per ton for handling import cargo and $1 for export 278 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. cargo, 50 centavos per head for live stock exported and $1 per head for live stock imported. The Department plans to administer the pier until its cost has been repaid, plus interest on the investment at 6 per cent. BUENAVENTURA AS DISTRIBUTING CENTER FOR NORTHERN MINING REGIONS. With the exception of the coal mines near Cali, there are no pro- ducing mines in the Department of El Valle; but its port, Buena- ventura, is the principal shipping port for the rich platinum and gold mining district of the San Juan, Condoto, and Opondo Rivers m the Choco Territory. This trade does not move through Cali, but directly to Buenaventura from the Choco Territory via the San Juan River. All freight for this district is handled bv the Linea Costanera Fluvial de Vapores, which operates two small, steel-hulled steamers between Buenaventura and Negria. This journey takes from four days to two weeks and the trip to Istmina two days more. The whole trip is not an easy one and should not be undertaken without ample provision for camping in the tropical jungle and special arrangement for the river passage. There are no fixed passenger or freight rates. Freight charges are levied per package and are almost prohibitively high. All merchandise must be packed for canoe and mule shipment and waterproofed, and all machinery has to be shipped in knocked-down condition. Special arrangements should be made for the shipment of heavy machinery such as large dredgers. In addition to the boats operating on the San Juan River, several small sloops trade along the Pacific coast near Buenaventura buy- ing balata, chicle, rubber, hides, cedar, gold, and platinum from the natives and selling them small lots of merchandise, principally cheap cotton goods, purchased from wholesalers at Buenaventura. GOLD AND PLATINUM PRODUCED IN SOUTHERN CHOCO TERRITORY. The most important placer grounds of this district are located along the Condoto River. One large mining camp is located 6 miles below Istmina at the junction of the Condoto and San Juan Rivers, another some distance up the Condoto. The district contains numerous small streams, all of which are worked in a more or less desultory and very primitive manner by the native Negroes, who roam from place to place, living on dried fish and plantains. The country is very tropical and subject to heavy rains throughout the year. The exports of gold dust and platinum from Buenaventura indicate the amount produced in this district, though they do not include the considerable quantities shipped out of the country privately each year, and therefore do not represent the total production. During 1917, 247 kilos of platinum were declared for export at the Buena- ventura customhouse and 396 kilos of gold dust. During 1918, 352 kilos of platinum and 326 kilos of gold dust were declared. Foreign naming companies owning rich dredging ground in this territory have been seriously affected by income-tax legislation both in the United States and in England, and have allowed some of their richest claims to lie idle until the repeal of the tax laws. This policy has greatly decreased the production of both gold and platinum. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 279 VOLUME OF BUSINESS AT BUENAVENTURA. During the first half of 1919 imports at Buenaventura amounted to 1,092, 335 Colombian dollars, of which total the United States fur- nished merchandise valued at 777,117 dollars, or about 71 per cent, and Panama 110,790 dollars' worth, largely merchandise of American manufacture. Returns for the entire year of 1919 are not yet avail- able, but they were probably much in excess of the total indicated by the returns for the first six months. Exports valued at $9,164,577 (U. S. currency) were sent to the United States during the whole calendar year 1919, representing about 98 per cent of the total exports. In 1920 the value was $13,784,522. Buenaventura had an excess of exports over imports amounting to 2,567,049 Colombian dollars at the end of 1918. Total imports for 1918 at Buenaventura amounted to 2,211,612 dollars; imports from the United States to 1,438,711 dollars, or 65 per cent of the total ; and from Panama to 104,545 dollars. Total exports from Buenaventura for the same year amounted to 4,778,578 dollars, and exports to the United States to 4,370,112 dollars, or 91 per cent of the total. The principal articles of export and their values were (Colombian dollar = $0.9733): Colombian dollars. Colombian dollars. Coffee 2, 378, 783 Platinum 1, 299, 255 Gold dust. . 218, 393 Cattle hides 481,236 Sugar 133,674 Balata 168, 842 The fact that the actual volume of imports decreased more than 100 per cent during the period 1914-1918, while the value remained practically stationary, shows the increased prices paid for foreign goods. The exports for the period do not show the same percentage of price increase, both the actual volume and the value for 1918 being more than twice what they had been in 1914. The following table gives the quantity and value of the imports and exports by years for the period 1914-1918: [Metric ton =2,205 pounds.] Years. Imports. Exports. Metric tons. Colombian dollars. Metric tons. Colombian dollars. 1914... 16, 676 14. 161 12.932 11,806 7,545 2,824,953 2.847,214 2.932,393 2,636,755 2,211,529 6,845 6.815 9,749 H,446 13,128 2,220,177 2,375,612 3,370,013 4,741,794 4 778 579 1915 1916... 1917.. 1918 CUSTOMS REVENUE. The total revenue collected by the customs officials at Buenaven- tura during the year 1917-18 was 1,470,798 Colombian dollars, and the total expenses amounted to only 89,098 dollars, or about 7 per cent of the amount collected. 280 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The revenue received from imports and exports for the period 1914-1918 is illustrated by the following figures, given in Colombian gold dollars: Import duties. Export duties. Import duties. Export duties. 1914. 1.323,730 43 1917.. 970,296 12,620 1915 875. 622 62 1918. 510, 494 17 139 1916 1, 188, 797 369 The Government collects as customs duties a high percentage of the total value of imports. An analysis of the 1914 statistics shows that more than 45 per cent of the total .value of imports was received by the Government in duties during that year. PARCEL-POST IMPORTS. Competition for the local trade in fancy dry goods and articles of ready-made clothing is keen in Cali. The merchants carry only small stocks, but make quick turnovers, and are constantly ordering small quantities of a variety of goods. The parcel-post service affords the most convenient shipping medium for these small orders, and parcel- post imports have increased notably during 1919. This increase has been attributed to the insistent demand for goods for immediate delivery during the coffee-harvest season, and to the delstv in the de- livery of large orders occasioned by the congestion of traffic caused in part by the movement of the coffee crop. The increase in the maxi- mum weight limit for parcel-post packages has undoubtedly benefited this trade also. Customhouse returns have never shown the value of parcel-post imports separately prior to 1919, but will do so for that year. Duty on parcel-post shipments is assessed on the value per kilo of the highest-priced article contained, multiplied by the gross weight. BANKING FACILITIES IN CALI CHAMBER OF COMMERCE. Call has one local bank and branches of two American banks. The local institution is very old and has many of the wealthy families of the valley among its shareholders. It buys local products for export and acts as commission agents for clients, and it has several cor- respondents in the United States. Local merchants are retained as its agents in interior towns, but little interest is shown in local in- dustrial development and no loans are made to the departmental government for public works. Its business is understood to have increased greatly during 1919 and its earnings to have been three times those of any previous normal year. A straight foreign banking and exchange business, the negotiation of commercial loans, etc., is carried on by one of the American banks at Cali. The second bank is affiliated with an exporting and import- ing corporation. It has a branch in the Quindio coffee district and is said to be partly responsible for the diversion of much of the coffee traffic from the Magaalena River route to the west coast. The recent establishment of these foreign banks in Cali has lowered local in- terest rates from 24 per cent to 15 and even 11 per cent already, and ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 281 further reductions are contemplated. This reduction of interest rates and the better credit facilities afforded will undoubtedly do much to aid the merchant in his efforts to establish direct connec- tions with foreign exporting houses. The Cali Chamber of Commerce has been very active during the past few years and is one of the best in Colombia. It publishes a monthly bulletin, which discusses recent national and departmental legislation, freight rates, possible means of improving general com- mercial conditions, development of agriculture and cattle raising, and also contains valuable statistical data. ADVERTISING MEDIUMS AND METHODS. The Cali merchant desires a personal acquaintance with the people from whom he buys; therefore, the impersonal circular letter is of little value in this district. If catalogues are sent, they should be in Spanish, with weights and measures quoted in both the metric and American systems so that duties can be estimated and market com- parisons made. List prices should not be changed unless market conditions make it absolutely necessary. Advertising master containing a quantity of small-type reading matter without much display attracts little attention; but pictures, especially if they show me article used in surroundings similar to those of the locality, are a good advertising medium, and attractive containers which enable the merchant to enhance the display of a new article are a distinct asset. Local dealers announce the arrival of novelties and fancy articles with handbills and placards a most successful system of advertising, since novelty and style count for even more in Cali than in the United States. Another means of ad- vertising highly esteemed by the local merchant is the American show window, which is being rapidly introduced into the district. Newspapers are a good advertising medium. Rates for space are not high, the papers are read and reread, and, in the country dis- tricts, are passed about from hand to hand. Cali has six papers. The two leading ones circulate throughout the entire valley, print telegrams and foreign cable news as well as local news, and carry considerable local and foreign advertising. A general trade directory was published in Cali in 1916, but was incomplete because it was not generally supported by the business men of the district, who did not appreciate its advertising value. A new publication, the Anuario Comercial, is now being published and has gained much better support; 10,000 copies of the present edition are to be printed and distributed throughout the district, and it is proposed to issue a new edition each year. FUTURE OF AMERICAN TRADE WITH CALI DISTRICT. The building of more roads and of the new pier at Buenaventura, the increase in the amount of coffee sent from the interior to Buena- ventura for export, and the renewal of the steamship service inter- rupted by the war have all stimulated commercial activity in Cali. The merchants are moving into new and larger quarters. They are planning to extend their business by the establishment of agencies and small branches in Armenia, Fopayan, and other important interior towns. 282 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Before the war few American traveling men visited Cali, only two American firms were represented in the district, and resident agents in Colombia usually handled European goods. During the war and the early part of 1919, however, these agents were forced to substitute American goods for the European merchandise which they could not obtain, and the Cali merchant liked the novelty and variety of the American goods with which he became familiar. He is intelli- gent, knows how to figure costs, and is well versed in the art of market comparison; and he is quick to realize the advantage of the earlier deliveries which the shorter distance to New York makes pos- sible. The establishment of the two American banks in Cali oners him better credit facilities than were previously obtainable, and he is coming to the United States desirous of establishing new and permanent trade connections. Under these conditions the American exporter has a good chance to obtain a permanent place in the increasingly important trade of the Cali district; but ii he wants this place he must work for it. Lack of sufficient shipping space from Colon to Buenaventura and the absence of personal representation in Cali are at present handi- caps to this trade. Englisn and French firms reentered the market in the latter part of 1919, and the volume of trade that they have already regained is conclusive proof of the strength of their former position. If the American exporter wishes to succeed in this field he must familiarize himself with the conditions peculiar to this market; he must pay more attention to the details of exporting to Colombia, especially to the care and dispatch with which merchandise is transshipped at Colon; and last, but not least, he must lose no opportunity to form a personal acquaintance with his customers. COMMERCIAL DISTRICT OF TUMACO. LOCATION STEAMSHIP SERVICE HARBOR. Tumaco, Colombia, some 200 miles south of Buenaventura, is the port of entry for the trade of the district south of Popayan in the Department of Cauca and for the Department of Narino, except for a negligible amount of commerce carried on through Ipiales on the Ecuadorian border. It is the only Pacific port of call in Colombia besides Buenaventura, and it is served by two steamers, one be- longing to the Pacific Steam Navigation Co. (Ltd.) and the other to the Colombian Navigation Co. (Ltd.), which maintain monthly round-trip services between Buenaventura and Colon. The Tumaco harbor is semicircular in shape, about 1 miles in width at the town and about 4 miles in length. The tidal currents are not so strong as at Buenaventura, but the harbor is not so good. It has dangerous shoals and sand bars, and it would have to be thoroughly dredged before it could be made a port of call for steamers of more than 3,000 tons. The land around the harbor is not suffi- cient to break high winds or storms, and though steamers enter and leave without pilot service, they do not attempt the entrance at night. The town is situated on a small, low, sandy island which has been encroached upon by the sea to such an extent that it is in danger of being submergea unless the proposed harbor defense measures are carried out soon. It is south of the heavy-rain belt and is a ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 283 more pleasant and healthful place than Buenaventura. Its present population is about 6,000. Stimulated by the building of the new pier at Buenaventura, the Department of Narino has had plans drawn for harbor improvements and a new pier at Tumaco, and is now having estimates of the cost prepared. At present, how- ever, Tumaco has only one small wharf, the property of a steam- ship company which operates a line of boats up the near-by coast and up the Patia River. Steamers of only a few hundred tons bur- den and not over 8 feet draft, such as are employed in the local trade, land directly at this wharf, but larger steamers must anchor in the bay about three-quarters of a mile from the town and be unloaded by means of lighters. Steel-hull lighters of 300 to 500 tons capacity are used. COMMERCIAL TERRITORY SERVED BY TUMACO. Pasto, situated on the high table-land southeast of Tumaco, Bar- bacoas on a tributary of the Patia River, and Tumaco are the chief commercial centers of this district. Pasto serves the largest part of the territory, but Barbacoas and Tumaco are equally important be- cause of their proximity to the Patia Valley. Considerable parts of the district served by Tumaco are entirely undeveloped, and the population is made up largely of Indians and Negroes with very limi ted purchasing power. The lower valley of the Patia River, north of Tumaco, is a good cattle-raising section, but farther inland, in spite of its fertility, it is still undeveloped, and, like other tropical sections of Colombia, has the reputation of being unhealthful. The coast south of Tumaco is sparsely populated and is very tropical and inaccessible. Rubber, chicle, and other forest products are found both in the Patia River region and in the section south and east of Tumaco, but lack of transportation and scarcity of labor make their exploitation difficult. Fish abound at the mouth of the Patia River and the Bay of Tumaco, and black whales are found in the vicinity, but so far no extensive fishing industry has been developed. Pearl fishing is carried on by the Negro boatmen, and a. small quantity of sheS is exported annually. Some quartz gold mines are oeing worked near Pasto by foreigners, and the product is exported through Ecuador. Placer mining is carried on by the natives around Barbacoas and farther south toward the Ecuadorian border. Some prospecting has been done also by foreigners, but the region is very broken, the cli- mate hot, transportation difficult, and labor scarce and inefficient. No large mining companies are interested in the region at present, and no modern machinery is used. TRANSPORTATION FACILITIES. Rivers and trails are the only means of communication between Tumaco and the interior. Three new, steel-hull steamers with pro- peller drive are operated from Tumaco up the coast to the Patia and up this river and its tributary, the Telembi, to Barbacoas. These boats can carry about 120 tons of freight and are amply able to accom- modate the trade between the two towns. The river presents some difficulty to navigation, however, during the dry season from July to October. The traveler bound for Pasto must make a two days' jour- 284 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. ney inland from Barbacoas over a mule trail to the wagon road now being built out of Pasto toward Barbacoas. Here an automobile can be secured for the rest of the journey, a distance of 58 miles. Freight destined for Pasto follows the same route, and must be packed and waterproofed for mule shipment. The Department of Narino is making every effort to complete this road, which is to extend through Barbacoas to Tumaco, and has planned to build a second road from Pasto to Tumaco through the potentially rich district to the south and east of the port. The com- pletion of these roads will greatly facilitate the distribution of goods through Tumaco, thus increasing the commercial importance of the district. TRADE STATISTICS. Exports from Tumaco for the year 1918 amounted to 1,236,902 Colombian gold dollars (1 dollar = $0.9 73 3 United States currency), of which amount about 94 per cent was sent to the United States. Exports for the first half of 1919 totaled 575,364 Colombian dollars, an amount slightly larger than that of the corresponding period of 1918, and the United States took about 82 per cent of this total. Tagua nuts, Panama hats, rubber, and gold dust are the most im- portant articles of export. During 1918 tagua nuts valued at 245,869 dollars, Panama hats at 244,194 dollars, rubber at 225,953 dollars, and gold dust valued at 160,240 dollars were exported to the United States. The exportation of hides to the United States is handicapped by the lack of a consular agent at Tumaco, and hides must be sent to- Buenaventura to receive certificates of disinfection. The high prices ob tamed for exports and the improved economic conditions prevailing in the interior will undoubtedly be reflected in the imports for the last half of 1919, but formerly imports varied little from year to year. In 1911, a normal pre-war year, imports were valued at 1,052,494 Colombian dollars. Imports at Tumaco Eay only 50 per cent of the basic tariff charged at Colombia's Carib- ean ports. BUSINESS METHODS. Merchants in the Tumaco district carry general stocks, and a large part of their buying and selling is done through New York com- mission houses. The more important lines handled are the cheaper grades of cotton goods, drills, denims, light-weight dress goods, and men's clothing suitable for the Tropics. The principal buying season extends from March to the end of May. Business is hampered by the fact that there is no bank at Tumaco. Pasto has a native bank, but the length of time required for com- munication between these towns renders it almost valueless to Tumaco merchants, who do most of their banking through Cali. There is no American resident sales agency in Tumaco or in either of the interior towns of the district. If such an agency were established, it should represent some large, general export house, and be prepared to find a market in the United States for the products of the district as well as to sell American merchandise. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 285 BUCARAMANGA AND COMMERCIAL DISTRICT. LOCATION, TOPOGRAPHY, AND CLIMATE. Bucaramanga is the trade center of the Department of Santander. Santander belongs to the group of Departments comprising the East- ern Cordillera region of Colombia and is mountainous throughout its entire area except for the stretches of low, level land along the BARICHARA Vurifi OGOT sSATA; FIG. 19. Map of Bucaramanga region. Magdalena River, which forms its western boundary for about 190 miles. It is west of the main range of the Eastern Cordillera and con- tains no very high mountain peaks, but is crossed bv several of the les- ser ridges, which extend through it in a long curve from the southwest to the northeast. The valleys of the Magdalena and the small rivers near it are tropical and unhealthful, but the climate improves with increase in 286 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. altitude in the interior. At 5,000 feet the climate is good, and at 7,000 feet it is never extremely hot or cold. Bucaramanga, at an altitude of 2,850 feet, has an average mean temperature of about 89 F., and a maximum of over 100 F. The annual rainfall aver- ages about 63 inches throughout the Department. The dry seasons prevail from November to April and June to September, and the season of heaviest rain is from September to November. The dense jungles in the south are subject to sudden windstorms which cut great paths of destruction through the forest, making travel very AREA. POPULATION, AND SCHOOLS. The Department of Santander has an area of 19,161 square miles and an estimated population of about 425,000. Bucaramanga has a population of approximately 26,000. Most of the people live in the small, alluvial valleys of the interior. The northern part of the Magdalena Valley has a few small towns, but the southern part is uninhabited except by primitive peoples, and much of it is prac- tically unexplored. The highest section of the Department toward the northern boundary is very sparsely populated. Except along the Magdalena, where the original Spanish settlers were comparatively few and where there has been a heavy infusion of negro blood, the people of Santander, like those of Antioquia and Caldas, prefer to own the land which they cultivate. Their holdings are usually tiny patches in the river valleys or small coffee or cacao plantations on the hillsides above the villages. They have always been handicapped by their isolation, however, and are less progres- sive and active than the Antioquians. The Department has about 380 public schools, with approximately 14,600 pupils. Bucaramanga has one national normal school and two high schools, one of which is parochial. VOLUME OF TRADE. The volume of the Bucaramanga trade is indicated by the follow- ing statistics obtained from the reports of the river freight movement at the river ports of Puerto Santos, Santa Maria, and Puerto Wilches. The exports consist chiefly of coffee and cacao, and there are small shipments of hides. Amounts of exports and imports are given below in packages or bales, of approximately 65 kilos (1 kilo = 2. 2 pounds) , or one-naif a mule cargo : Years. Imports. Exports. Years. Imports. Exports. 1912 Packages. 52.415 Packages. 119.326 1916... Packages. 3t,362 Packages. 97,098 1913 53 001 108,167 1917 32,350 95.417 1914 44.230 103,907 1918 17,215 114,846 1915. 28,178 103,906 It will be noted that the trade declined during the war years and that exports increased during 1918, probably because of the heavy coffee crop of that year. Imports for 1918 were small, but the com- mercial activity of the district was greatly stimulated by the high prices obtained for the large coffee crop of 1919, and this increased ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL, DISTRICTS. 287 activity will undoubtedly be reflected by an increase in the volume of imports for the year. TRADE DISTRIBUTION AND METHODS. There are 8 or 10 leading merchants in Bucaramanga whose aggre- gate capital is probably about $500,000 Colombian. (The Colombian dollar is equal to $0.9733 United States currency.) The merchants of Bucaramanga are handicapped by their lack of capital, their isolation, and tneir unfamiliarity with conditions in foreign markets. Many of them have established connections in the small towns of the district, through which they purchase coffee, cacao, and hides for sale, to the large trading and exporting houses of Barranquilla. They generally make one trip each year to the coast to settle old accounts and to buy new stock. The towns of Ocana and Pamplona do not import through Buca- ramanga, though in a sense they are part of the same commercial district. Ocana, with a population of about 20,000, is situated 3,600 feet above sea level in the heart of a coffee and cacao growing region in the north of the Department of Santander. It sends to the ports of the Magdalena an average of 104,200 packages, or 6,760 metric tons, of freight for export each year, and its imports average about 2,500 tons. Pamplona and Cucuta, though also in this section of San- tander, generally export and import through Venezuela. The Bogota importers formerly sold to the Bucaramanga mer- chants, and even to those of Pamplona and Ocana, but most of this business is now in the hands of Barranquilla importers, some of whom maintain branches or hold shares in local stores in Bucara- manga, Ocana, and Pamplona. Many Syrian traders of Barran- quilla and Cartagena have strong commercial connections in Bucara- manga, Ocana, and Pamplona. TRADE ROUTES. During the dry season, merchandise destined for Bucaramanga is sent up the Magdalena from Barranquilla to Puerto Wilches, a dis- tance of 404 miles, and then 90 miles overland by mule train to Bucaramanga. During the rainy season, merchandise is sometimes unloaded at Gamarra, 317 miles up the Magdalena from Barran- quilla, and sent up the River Lebrija to El Choco, a distance of 63 miles, or to La Ceiba, a distance of 69 miles. From either of these points shipments must be packed overland by mule trains to Bucara- manga, a four or five days' journey. It is also possible to unload goods at Bodega Sogamoso and send them up the Sogamoso River about 22 miles during part of the rainy season. This is a much shorter route than the Lebrija, but the shallowness of the river makes it impracticable most of the year, and it is little used. Travelers wishing to reach Bucaramanga from the coast generally choose the Puerto Wilches route. It requires from two and one-half to three days to make the journey from the end of the short Puerto Wilches-Bucaramanga Railway to Bucaramanga. There are no good stopping places along the route, and the trip is a very uncomfortable one through a rough country covered with tropical jungle. Work has been started on a road which is to extend from Tamalameque to Ocana, a distance of 160 miles, and eventually from 288 COLOMBIA: A COMMERCIAL AND INDUSTRIAL, HANDBOOK. Ocana to Pamplona and Cucuta. The plans call for an automobile road capable of sustaining tractor and truck traffic at all seasons of the year. A short section of macadam has been completed from Ocana toward Tamalameque, and a beginning has been made on the section between Cucuta and Pamplona, but the cost of building a road in this country is said to be even greater than the cost of building a narrow-gauge railway, and the work is progressing very slowly be- cause of lack of funds. PUERTO WILCHES-BUCARAMANGA RAILWAY. About 12 miles of the proposed meter-gauge railway from Puerto Wilches to Bucaramanga have been completed out of Puerto Wilches, and on this section hand-car service is maintained. In 1917 this line carried 2,014 passengers and 808 tons of freight, the expenses for the year being about $18,000, or more than twice the amount of the gross receipts. The railway was originally owned by an English company, but is now controlled by the Department of Santander, which holds it in trust for the National Government. In 1919, a portion of a new internal-loan bond issue was assigned to the Department of Santander to be used for construction work on this railway, and the Department itself assigned the total proceeds of the internal-revenue tax on tobacco to the railway work. Work was started in August, 1919, but progress is necessarily slow, and it is not definitely known how much money will be available. It is estimated that the line will cost more than $50,000 per kilometer (0.62 mile). The total length will be about 90 miles. In addition to the construction of the railway itself, a landing place will need to be built at Puerto Wilches for the river steamers, which, in seasons of low water, can not approach within several miles of the town under present conditions. It was originally planned to connect the Puerto Wilches-Bucara- manga Railway with the projected extension of the Northern Rail- way to Chiquinquira, thus forming a link in the proposed trunk line from Bogota to the Caribbean. The project for such a trunk line seems to have been abandoned in favor of the so-called Pacific route, however. As the country between Bucaramanga and Chiquinquira is very rough and sparsely populated it seems doubtful whether this extension will ever oe built. BANKING. Although several of the larger business houses of Bucaramanga do more or less of a private banking business, the city has only one company engaged in general banking. This firm, the Companisi Colombiana de Mutuahdad, also carries on a mutual savings and cooperative life insurance business. The company's balance sheet showed a net profit of $29,228 for the first six months of 1919. Out of this amount, $16,066 was distributed as dividends, $6,343 added to the guaranty fund, $1,461 allotted to the directors, and the remainder distributed among a number of small funds. This bank- ing institution takes an active part in the development of the Depart- ment, aiding in the installation of lighting plants, telephone systems, and other public utilities. ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 289 AGRICULTURE AND LIVE STOCK. Tobacco cultivation and manufacture are the most important industries of Santander, raw tobacco, cigars, and cigarettes being shipped to the Atlantic coast, to Boyaca, to Cundinamarca, to Antioquia, and into the State of Tachira in Venezuela. Antioquia is the most important of these markets, the raw leaf being manufactured at Medellin for shipment to other parts of Colombia. From the data available it may be estimated that about 920,000 kilos of cigars, 60,000 kilos of cigarettes, and 100,000 kilos of leaf tobacco for export were produced in the Department of Santander during 1918; and using these production figures as a basis it may be conclude'd that approximately 2,100 acres were planted in tobacco. Santander has the usual local consumption tax on manufactured tobacco. Chief among the other agricultural products of Santander are coffee and cacao. It may be said that the Department produces annually an average of 60,000 sacks of coffee and 20,000 sacks of cacao. The output of cacao is declining, but it is predicted that the high prices of 1919 will stimulate the production of coffee to such an extent that it will show an increase of 60 per cent within the next four years. Good grazing land in Santander is limited, but sufficient cattle are raised to supply the local demand. The breeding of mules for pack service is a profitable business, the demand for these animals being especially good during 1919. CHICLE INDUSTRY. In 1917 a chicle expert went from Mexico to Colombia to promote the work of collecting the gum in that country. His first well-organ- ized expedition was made through a large tract of private property extending along the Sogamoso River south of Bucaramanga. He found that the chicle of this region differed somewhat from the Mexi- can variety, and that it must be mixed with the Mexican product in the manufacture of chewing gum. During the calendar year 1918 chicle to the amount of 690,496 pounds, valued at $278,654, was imported into the United States from Colombia; probably about half of this amount came from the So- gamoso River region. In 1919 American imports of this gum from olombia amounted to 1,777,747 pounds, valued at $570,864. Laborers as a rule will work at chicle gathering only during the dry season when placer mining is impossible and when they are not engaged in planting corn or tobacco or picking coffee. They will not go into the jungles to gather the gum at all except for high wages, so exports of chicle from Colombia will probably be negligible except when market prices are high. One of the gravest difficulties has been the securing of the pure chicle gum, for the laborers soon learn to mix it with other gums more easily procured in order to obtain pay- ment for additional weight. ATTEMPT TO INTRODUCE SILK CULTURE. An attempt is being made to introduce silk culture into the Buca- ramanga district. Mulberry trees have been grown successfully and a very good quality of raw silk has been produced. In 1915 the Colom- 37558 21 19 290 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. bian Government authorized an annual appropriation to be devoted to the promotion of the silk industry; part of the first sum was to be used for the purchase of three spinning machines for Bucaramanga. In 1918 and 1919 special courses in silk production were offered in Bucaramanga and were taken by about 30 people. However, silk culture requires considerable time and manual dexterity. The raising of coffee and cacao is easier, and the people of the lower classes are not anxious to attempt anything new. It therefore seems doubtful whether the efforts to introduce silk culture will be very successful. CUCUTA AND COMMERCIAL DISTRICT. LOCATION AND GENERAL CHARACTERISTICS. The city of San Jose de Cucuta is situated on a level plain sur- rounded by low hills, at an elevation of about 1,000 feet above sea level, near the boundary with the Venezuelan State of Tachira. Cucuta is the capital of the Colombian Department of Norte de San- tander, and it is in the extreme eastern part of the Department. To the south lies the important interior city of Pamplona, connected with Cucuta by a new wagon road (not yet completed; see p. 293). In tune it is hoped to build this road as far as Bucaramanga, but the intervening country is mountainous and very rough. Pamplona has a population of about 16,500 and is situated at an altitude of about 7,100 feet above sea level. It is surrounded by coffee planta- tions, together with some cacao plantations. Hats are also exported. Its trade goes to Cucuta, where its merchants buy at wholesale. Ocana is the town next in importance in the Department of Norte de Santander. It has a population of about 20,000 and is located farther to the north and nearer the Magdalena River, on the side of the range west from Cucuta. The elevation is 3,600 feet. The region produces some coffee and cacao, and Panama hats are also exported, but this trade moves out by pack mule to the Rio Lebrija and thence down the Magdalena River. This district is commercially tributary to Barranouilla, and some goods are purchased at whole- sale in Cartagena. The eastern and northern parts of the Departr ment of Norte de Santander are sparsely inhabited, and the country is broken and mountainous, making transportation slow and costly AREA. POPULATION, AND CLIMATE. The area of the entire Department is 6,708 square miles, divided into three districts, and the total population is aoout 250,000. The capitals of the Provinces are Ocana, Pamplona, and Cucuta. The city of Cucuta has a population of about 24,000. Most of the inhabitants are mulattoes, while possibly 10 per cent are pure white. There is a small colony of foreigners, the largest merchants being Germans, who have been long established there. The climate of Cucuta is hot and unhealthful; there is much mala- rial disease and occasional epidemics of yellow fever. APPEARANCE AND PUBLIC UTILITIES OF CUCUTA. The town has suffered from frequent earthquakes in the past and was almost totally destroyed in 1875 by a series of severe shocks. The city was rebuilt, however, and has prospered in modern times. At the time of the rebuilding, the town was laid out in wide, open ECONOMIC CHARACTERISTICS OF NINE COMMERCIAL DISTRICTS. 291 streets, fringed with trees in great contrast to the narrow streets of other small Spanish American towns, where the old Spanish colo- nial design still remains. The city has a steam tramway, electric lights, telephone service, a theater, a covered public market, and a slaughterhouse. COMMERCE AND TRADE. Shut off from the rest of the Republic by the barrier of the Eastern Cordillera and the distance to the Magdalena River, Cucuta is polit- ically part of Colombia but is actually dependent upon Venezuela 292 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. for means of access to foreign markets. Coffee and other exports find their way out over the Cucuta Railway to the River Zulia (which rises in Colombia south of Cucuta but is not navigable until it has flowed some distance into Venezuela) and thence by river steamer to Lake' Maracaibo and the port of Maracaibo, where transfer is made to small coastwise steamers that finally convey exports to ports of embarkation for ocean vessels, such as Puerto Cabello or La Guaira. For a number of years there have been projects of road building to connect Cucuta with the Magdalena River and thereby liberate its commerce from the restrictions and impositions of the Venezuelan Government. Some work has been done recently on the wagon road each way from Ocana, but the high cost of this work and the difficult ground to be covered, combined with the lack of population and pro- duction, make this rather a matter of political necessity to be solved by the National Government. Nearly half the trade of Cucuta is in the hands of four large German firms, closely affiliated with the German firms of Maracaibo; there are also a few firms of native Colombians. Exports for 1918 were as follows: [Kilo=2.2046 pounds; Colombian dollar=40.9733.1 Articles. Kilos. Value. Coffee (92,768 sacks) . . 5,375,500 91.564 17,036 16,656 Colombian dollars. 788,338 42,020 5,519 6,188 Hides (7,734) Flour (302 sacks) Bags ( flque") Total 5,500,756 842,065 Imports for 1918 were as follows: Articles. Kilos. Value. Oil and greases 21,323 812,820 61,414 11,310 9,133 6,589 15,567 20,685 44 176 210 37,296 3,104 169 3,202 50,346 27.552 569 37,901 1,922 Colombian dollars. 2,873 47,568 11,819 5,114 2,950 2,057 3,747 2,876 211 302 1,277 15,145 3,719 85 3,364 11,279 8,029 565 87,098 741 Foodstuffs l Combustibles " Agricultural implements, etc Arts and trades ... ... Paints, varnishes, colors . . . T Crystal , glass, chinaware Rubber, celluloid, etc . . Shell, bone, etc Leather manufactures Electrical supplies .. Locomotives and rail way equipment Soaps and perfumes . ^ Textiles Miscellaneous Totals ' 1,121,332 * 210, 819 1 Including 739,247 kilos of salt, valued at 21,113 Colombian dollars. * Duties of 72,599 dollars were collected. The larger merchants of Cucuta purchase through export commis- sion houses of New York and Europe, about one-half of the trade in textiles going to England. Shipments are consigned in care of for- warding agents at Maracaibo for transshipment to Cucuta via the River Zulia and the railway to Cucuta. MEANS OF COMMUNICATION. RIVER TRAFFIC. Cut off from commercial intercourse with Colombia, the trade of Cucuta and Pamplona has sought the easiest route of egress via the River Zulia, which flows into the River Catatumbo hi Venezuelan territory and affords steamer navigation to Lake Maracaibo (called a lake but in reality a deep-sea gun of shallow water). The voyage from the city of Maracaibo to Puerto Villamizar, via Lake Maracaibo, the River Catatumbo, and the River Zulia takes about three days, passengers and freight having to be transferred, at the junction of the two rivers, to the smaller steamers plying on the Zulia. Puerto Villamizar is 35 miles from the city of Cucuta by the old road. CUCUTA RAILWAY. The Cucuta Railway was built in 1888 from Cucuta to Puerto Vil- lamizar to serve as the connecting link between river navigation, and later the same company, the Compaiiia del Ferrocarril de Cucuta, extended its lihe 10 miles to the Venezuelan border, making a total of 45 miles. In spite of the competition created by the construction of a near-by railway hi Venezuela, and the unfavorable attitude of the Venezuelan Government toward Colombian trade, this company, composed entirely of native capital (of which the municipality of Cucuta is owner of a one-third interest), has managed to hold its own, pay dividends, and reduce its bonded indebtedness. The gauge of the track is 1 meter (3.2808 feet). Wood is used as fuel. There are no tunnels or large bridges. In 1917 the line handled 112,340 pas- sengers and 21,150 metric tons of freight, the gross returns being 221,564 Colombian dollars and the expenses 172,551 dollars, leaving a profit of 49,013 dollars expenses being 77.87 per cent of the total returns. From time to time there has been agitation in Colombia for a road from Cucuta to the Magdalena, and in 1917 Law No. 42 declared this projected road to be of the first class and contracted with the De- partment of Norte de Santander for its construction and exploita- tion, including the roads of Pamplona, Sarare, and Tame. The sum of 50,000 Colombian 'dollars was authorized to be spent hi the Ocana section and 24,000 dollars on the Sarare road from Pamplona to Arauca (this latter not being a wagon road) . The section from Cucuta to Pamplona now has 19 kilometers under construction, and at Pamplona there has been built a large dam serving as the approach to the town. A total of 220,567 Colombian dollars has been spent thus far on this road, which is planned as a wagon road of 6 per cent grade, carrying a macadam surface 4 meters wide. 294 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The wagon road from Cucuta to the Magdalena was declared to be of urgent national necessity in 1917, the work was placed in charge of the departmentalgovernment, and 50,000 dollars was appropriated from the National Treasury to bring about greater activity on this important work. About 8 Kilometers have been constructed, between Ocana and Las Animas toward the river (the total distance being 260 kilometers), and 40,079 dollars of the national appropriation has been spent up to the present time, while an additional 18,703 dollars has been spent by the departmental government. Work on these roads has been going on for years past, but mistakes have been made in their location and the early fills and cuts have been partly destroyed by slides and washouts, so that very little has been accomplished. The main difficulty seems to lie in the great length of these roads, which cross a very broken country, all mountainous, and many small and swift streams. There have never been sufficient funds on hand at any one time to make the work count, and the dis- tricts traversed are sparsely populated and not rich enough to sup- port the expense of road building on the scale required. As a matter of fact, past experience has shown that it costs at least as much, on an average, to construct 1 kilometer of good and permanent wagon road in this rough and broken country, where steep grades and tor- rential rams have to be contended with, as it does to ouild the same length of narrow-gauge railway, and the cost of maintenance is higher. About 50 roads are planned in Colombia, and only two of these are to-day of sufficient length to make them of actual utility the Great Central Northern Highway out of Bogota to the north and the road from Palmira to Buga in the Cauca Valley. The appropriation of 24,000 Colombian dollars, mentioned above, was for the pack trail from Pamplona to the border town of Arauca, where there is access to the plains of the Casanare, as well as some small trade with the Upper Orinoco, principally in hides and rubber. TRANSPORTATION. RAILWAYS. An account of the railways of each commercial district of Colombia will be found in the appropriate district report (see p. 185). Addi- tional information with regard to certain ot the lines is given in the "Travel notes" beginning on page 393. Consequently, it is not considered necessary to repeat in the present chapter the detailed data that are available elsewhere in the book. The following discussion will be confined, therefore, to .a considera- tion of the broader aspects of Colombia's railway problems, with special emphasis on the projected line from Bogota to the Pacific and on the national legislation governing railway construction and operation. PREVIOUS EXPERIENCES AND PRESENT OPPORTUNITIES IN RAILWAY BUILDING. Viewing the transportation problem in Colombia in a general way, and judging from the past experience of foreign companies which have bunt roads in this country, it is evident that the construction of main trunk lines presents a very difficult problem. Many natural difficulties are encountered, such as the climate, the floods of the low coastal region, and the mountainous character of the interior; these all make railway construction very costly entirely out of propor- tion to the actual tonnage of traffic available in the country at this time. The previous experience of the National Government with railway promoters and foreign companies has been very unsatis- factory; the authorities are suspicious of new offers and constantly fear the intervention of powerful foreign governments in the affairs of foreign companies who may have claims against the National Government growing out of railway contracts and transportation schemes. The present plan of financing new construction By means of internal loans appears harmful to the country in general, since it takes Colombia's small amount of available surplus capital which should rather be invested in the country for national, industrial, and agricultural development. Business men are therefore in favor of the building of all new main lines of railway with foreign capital- but at the present rate of progress of national construction it will take many years of slow and painful work to secure a trunk outlet from the interior to the sea, on either the Atlantic or the Pacific Ocean. In the meantime the country is suffering from the lack of transportation and its inability to take full advantage of the present market conditions. The national development is thus retarded and hindered. Several existing lines should never have been built or are badly located, and foreign concessions have cost the Government a great deal of trouble and money, with meager results in actual lines constructed (an example being the Puerto Wilches contract in Santander). The Girardot Railway is badly located and should have been built to the Lower instead of the Upper River (over the same distance and at practically the same cost), thus avoiding the delays and excessive costs of the Upper River navigation. In the opinion of experts, the Cartagena-Calamar line and the Puerto Colombia-Barranquilla line 295 296 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. should never have been built; the opening of the Cartagena "Dique " would have cost less, would have afforded a better seaport at Carta- gena, and would have made possible direct connections oetween river steamers and ocean vessels, thus eliminating the necessity for the railways and providing lower freight and handling costs. The Antioquia Railway from Puerto Berrio to Medellin (as yet uncom- pleted) was also badly located; it should have been constructed down the Force Valley to the north from Medellin to seek a direct rail outlet to the sea at Cartagena, thus obviating the necessity of the long 400-mile river haul, always slow and costly, and at the same time opening up a rich mining and agricultural section in the Departments 01 Antioquia and Bolivar. Plans are now under way for the building of this road from Cartagena to Medellin, the construction work to be performed by the departments of Bolivar and Antioquia in their respective territories; the Bolivar section, to go by way of El Carmen ana Monteria, is now declared national and subsidized by the National Government. The building of this railway presents an opportunity for foreign capital, because the line will pass through a producing and potentially rich cattle and agricultural region capable of great develop- ment, and also a rich mining region farther to the south in Antioquia. The building of the new link between Beltran on the Upper River and Ibague, via Girardot, is another much needed and potentially profitable investment, as this line will eliminate the navigation of the Upper River and will connect with the Pacific Railway, tapping the two most productive coffee districts of the country. This line is now under contract with Pedro A. Lopez & Co., of Bogota. CONTEMPLATED LINE FROM PACIFIC COAST TO BOGOTA. The largest and most important railway project of Colombia is that for the completion of the Pacific Railway from Palmira, in the Cauca Valley, via Zarzal and thence east over the Quindio Pass of the Central Cordillera to Ibague, thus placing Bogota in direct rail connection with the Pacinc coast and diverting a very large portion of the tonnage of the country from the Magdalena River route to the Pacific port of Buenaventura. Although this line will have to cross the mountain range at an elevation of about 12,000 feet, the ascent and descent are easy, with no difficult engineering problems. Even in the most mountainous sections, the line will pass through a rich coffee-producing country, and the local traffic will also be great. It is estimated that the tonnage available arid to be diverted to this line will be more than sufficient to take care of the interest on the bonds covering the cost of construction. The exploitation of the coal fields of Cali is closely related to the improve- ment and extension of the Pacific Railway. The total cost of the completion of the Pacific System through to Bogota and the rebuilding of certain parts of the present line between Call and Buenaventura, with the erection of coal docks at Buenaven- tura, is estimated roughly at $50,000,000. Two connecting links in the proposed Pacific-coast-tp-Bogota line have already been constructed namely. (1) the Pacific Rail- way, from Buenaventura to Palmira (25 kilometers, or 16 miles, east of Cali), and (2) the Girardot and Sabana Railways, from Girar- dot, on the Upper Magdalena River, via Facatativa to Bogota. Another link, the Tolima Railway, is now under construction and will Special Agents Series No. 206. FIG. 22. TRAIN ON PACIFIC RAILWAY, BUENAVENTURA TO CALL FIG. 23. STEAMER ON CAUCA RIVER. TRANSPORTATION. , 297 soon be completed from the Magdalena River, opposite Girardot, to Ibague, the capital of the Department of Tolima. The Colombian Government has definitely decided to push the work on this Pacific route, an important step in this direction being taken in September, 1919, when the existing Pacific Railway (Buena- ventura to Palmira) was taken over by the Government with the intention of going ahead with new construction, down the Cauca Valley and approaching the Quindio Pass. The Girardot Railway also is now under the control of the central Government, but the Tolima Railway is departmental and is being rushed to completion as far as Ibague by a Colombian banking house under contract with the Department of Tolima. The Government paid 40,000 Colombian dollars per kilometer for the Buenaventura-Cali part of the railway, and the subvention for the Palmira-Cartago line was to be 38,000 dollars per kilometer. The 232 kilometers (144 miles) of line constructed, including the Popayan branch, has cost the Government 10,800,000 dollars, which sum includes the cost of reconstruction of that part of the line near Buenaventura, built many years ago. Payment was made by the assignment to the railway company of one-half of the proceeds of the Buenaventura and Tumaco customhouses and with drafts against customs receipts which earned 8 per cent interest. The revenue thus assigned to the railway did not meet the cost of the work, and the Government, when it took over the railway in 1919, still owed large sums to the company for arrears in these payments. The company also collected from the Government one-half of the deficit in the operation of the road. The following statement shows the distances on the Pacific route: Lines constructed : Kilometers. Miles. Sabana Railway 40 25 Girardot Railway , 132 82 Tolima Railway 30 19 Pacific Railway 233 145 Total constructed 435 271 Lines to be constructed : Tolima Railway, to be completed 130 81 Pacific Railway, Palmira to Zarzal (approximately). . 100 62 Zarzal to Ibague via Quindio (approximately) 200 124 Total to be constructed 430 267 The line from Palmira to Zarzal, the point of leaving the Cauca Valley for the Quindio Pass, will be over practically level country, and the work should not exceed 18,000 Colombian dollars per kilo- meter (0.62 mile) for a 3-foot track. But the mountain work in the Quindio will cost very much more, with many kilometers of track costing as high as 100,000 dollars each. Only an approximate estimate can be made of the probable costs, since there has been no survey of the Quindio Pass and the actual rail distance is not known at this time. Accurate figures were obtained by the writer, comparing the cost of freight from Manizales to New York via the Magdalena River route and from Manizales to New York via the Pacific route (products in the latter case being shipped out by way of Buenaventura). With coffee as a unit, the charges on the Pacific route per ton of 2,240 pounds were $16 less than on the Magdalena route. With the extension of the Pacific Railway from Palmira to Ibague and the 298 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. completion of the Tolima Railway, freight charges from Bogota to Buenaventura would amount to about one-half of what it now costs to lay 1 ton of freight from Bogota down in Barranquilla. The charges to Barranquflla at the present time are all the way from $75 to $102 per ton, according to the class of goods handled. RAILWAY LAWS. The basic railway law in Colombia is that of 1892, No. 104, which is still in force. By virtue of this legislation the Executive may grant railway concessions and subsidies without further confirmatory legislation within the prescribed limitations of this law. A subsidy may be either (1) a grant of not more than 300 hectares of public lands and a sum not exceeding 10,000 Colombian dollars per kilometer of line constructed, payable in 6 per cent bonds, amortizable by 10 per cent of the gross customs receipts of all the customhouses of the country, or (2) a guaranty of interest not exceeding 7 per cent per annum for 20 years on the capital actually invested, not greater than 30,000 dollars per kilometer of line con- structed. If the road's net income should, however, during three consecutive years be sufficient to cover the interest guaranteed, the Governments obligation terminates, regardless of future earnings. Also, concessions may be for the term of 100 years, the Govern- ment reserving the right to purchase the property for cash at any time after 50 years at the appraised valuation and after 75 years at one-half this valuation. At the end of the full term of the 100-year concession the railway, together with its equipment and rolling stock (all to be in good condition), becomes the property of the Government without payment. The subsidy of 10,000 Colombian dollars per kilometer amounts to about $16,000 United States currency per mile. This is for track of 3-foot gauge or wider, construction to be accqrding to the official specifications, on level ground ; and the subsidy has Been increased to 15,000 dollars per kilometer for roads built in the mountains. The official specifications are given below: Single track with sidings according to traffic requirements, 1-meter gauge. Maximum grade, 3 per cent, compensated on curves. Minimum radius of curvature, 80 meters (262.4 feet) on line and 50 meters (164 feet) on sidings. Between two opposing curves there must be a tangent of not less than 30 meters (98.4 feet). The limits fixed for curves, grades, and tangents are not to be construed by con- cessionaries or constructors as averages, but are limits to be used only in exceptional cases. Changes of grades must be conveniently effected by vertical curves. Changes of grade on horizontal curves must be avoided. On curves the outside rail must have a superelevation corresponding to a velocity of 30 kilometers (18.64 miles) per hour. Straight stretches of track must approach curves by means of convenient transitional curves. Before leveling in forest country, timber must be cleared 20 meters (65.6 feet) on each side of center of track, and heavy trees that menace the track must be felled, no matter what their distance from the track may be. When the track is on the side of a mountain, clear 25 meters (82 feet) above and 15 meters ("49.2 feet) below center of track. Width of base will be 4 meters (13.12 feet) at bottom of cuts, including ditches, and 3 meters (9.84 feet) at top of graded track. Slope of cuts must be as follows: In hard rock necessitating explosives, one-quarter to one-fifth of base to one of height; in soft rock, one-third of base to one of height; in hard earth without filtrations, one-half of base to one of height; in sand or gravei, one and one-half to two of base to one of height. TRANSPORTATION. 299 Slope of roadbed must be: With sandy or ordinary soil exposed to action of water, two or three for one; with earth not exposed to the action of water, one and one-half for one; with stone placed by hand, three-quarters or one-half for one. In no roadbed may there be ditches witn less than 60 centimeters (1.97 feet) to 1 meter (3.28 feet) of berm, according to height. Ditches in cuts must be parallel to the axis of track and must have a slope of one- half of base to one of height. In constructing the line along river valleys, ravines, etc., the base of the roadbed must be higher than high-water mark, and where this is not possible retaining walls must be built to prevent washouts. This must be done wherever the roadbed is exposed to attack from water. All work of this kind must be of a permanent nature, so only first-class materials must enter into the composition, such as iron, stone, brick, etc. In the case of important structures, such as station buildings, bridges of more than 10 meters (32.8 feet) span, etc., all plans must be approved by the Minister of Public Works. In retaining walls, bridge abutments, etc., faced stone must be need so that all parts present a smooth surface. The copings of walls must have a convenient slope. Ballast for track must be of crushed stone or rubble of good quality, with a thick- ness of not less than 20 centimeters (7.87 inches) below the crossties, must rise to the level of these, must be of such nature as to distribute the pressure of the trains over the rails, and must be porous, to keep the ties dry. Ties must be of guayacan or any long-lived wood without cuts or whiteness and conveniently worked, or of iron or steel, at discretion of constructor. They must be 2 meters long, and if of wood must be 20 centimeters (7.87 inches) in width and 15 centimeters {5.9 inches) in thickness. The number of ties per kilometer (0.62 mile) must not be less than 1,650. Rails must be of good-quality steel of the Vignolle type and of a minimum weight of 45 pounds per yard. Rails must be fastened to ties by means of spikes or screws, and joints must be of angle bars, with a resistance in each pair conforming to estab- lished technical rules and having the usual coefficient of safety for the operation of the heaviest engine on the line. Angle bars must have grooves equidistant from the center, to receive the spikes, in order to prevent the track from spreading. Each joint must have four bolts with steel washers, so that the trepidation produced by trains will not loosen the nuts. Rail joints must be opposite to each other on straight track and between ties. Grades and curves must allow of the heaviest locomotive in the service pulling a weight of 100 tons at a minimum velocity of 30 kilometers (18.64 miles) per hour. Necessary drains and waterways must be made to keep track in good condition. On road crossings, whether public or private, passageways must be made either overhead or underneath so as not to disturb the traffic, and in the case of grade cross- ings guard rails must be provided, with gates or barriers for the security of the public. In the terminal stations at the ends of the line the construction shall be of masonry, with tile or metallic roofing. At intermediate points secondary construction shall be provided to meet the approval of the supervising engineer. The rolling stock must consist of at least one engine, three passenger cars, and six freight cars per kilometer (0.62 mile) of road. Passenger cars, in addition to being solid and safe, must be comfortable and decent. Tunnels must be sufficiently wide to permit trains to pass without injuring work- men who might be in the tunnel. On swampy ground macadam roadbeds must be made, or pontoons supported on iron girders or masonry. Some of the concessions in the past have been more liberal than the terms of the law outlined above. The original Puerto Wilches- Bucaramanga contract guaranteed 7 per cent per annum on the sum of 40,000 Colombian dollars per kilometer, and the Pacific Railway Co. received as high as 65,333 dollars per kilometer of narrow-gauge track over the most mountainous divisions of the road between Buenaventura and Cali, and in easier parts 38,000 and 40,000 dol- lars per kilometer of track constructed payment being secured by 50 per cent of the gross receipts of the Buenaventura and Tumaco customhouses (amounting to more than half a million dollars a year) and being made every month. A recent (1919-20) concession for the completion of the Pacific Railway over the Quindio Pass of the Cen- tral Andes Range confirmed this old contract hi its general terms. 300 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The Amaga Railway, which is being built by Medellin capital, re- ceives 10,000 and 15,000 Colombian dollars per kilometer, according to the basic law, though some stretches of this line cost 120,000 dollars to construct and the average cost has been much higher than the subsidy allowed by the Government. When contracts call for annual interest guaranties of 7 per cent on the basis of cost of 30,000 dollars per kilometer (about 50,000 dollars per mile), interest generally begins as soon as a certain number of kilometers (usually 20) have been constructed and are open for ser- vice. Besides the interest on the cost, builders are granted in owner- ship an area of public lands, on either side of the right of way, not to exceed 300 hectares (about 738 acres) per kilometer. The subsidy bonds and land titles are delivered to the builders in the amount corresponding to each 20 kilometers (12 miles) that are opened to traffic. The railway and all its appurtenances are exempt from the pay- ment of direct or extraordinary taxation, and the building materials, machinery, and equipment do not pay any import duties or road or river tonnage tolls. The building company may issue bonds or debentures guaranteed by the proceeds of the railway, and it may also mortgage the railway for the period of the concession. The concessionaire may also trans- fer the contract or concession to any person or corporation with the consent of the Government, but never to a foreign government. The organization of the companies or corporations engaging in rail- way building and operation in Colombia are subject to the Colombian laws. STATISTICS OF OPERATION OF ALL COLOMBIAN RAILWAYS. The following table shows the length, gauge, movement of passen- gers and freight, and operating account of all the railways in Co- lombia for the year 1917, the most recent year for which such statis- tics are available. Interest charges, outstanding bonds or deben- tures, etc., are not taken into consideration; only the actual operat- ing receipts and expenditures are included. Railways. Length. Gauge. Passen- gers carried. Freight carried. Operating account. Kilo- meters. Miles. Gross revenues. Expenses. Net revenues. Oper- ating ratio. Ant ioquia 181.0 41.5 28.0 10.0 105.0 72.0 132.0 111.0 40.0 62.5 233.0 20.0 94.0 35.0 30.0 112.5 25.8 17.4 6.2 65.2 44.7 82.0 69.0 24.8 38.8 144.8 12.4 58.4 21.7 18.6 Inches. 36 36 42 36 36 (') 36 36 (') K ( \ (') 36 1,290,741 772, 42 i 191.059 11. 139 52,615 112,340 172, 761 125, 145 653,881 612, 594 202,301 2,014 187, 325 172.389 169,407 Metric tons. 114,279 36, 837 98, 792 1,094 46,901 21,150 77,386 84,045 116,499 90,459 37, 682 808 166,275 53,869 9,857 Colom- bian dollars. 895,211 155, 229 335,716 2,141 307, 571 221,564 719, 524 534,745 329,051 402,332 454,081 9,181 593, 905 122,296 49,090 Colom- bian dollars. 528, 751 96,242 196, 465 1,302 26H,348 172, 551 434,597 208,459 167, 598 139,541 475, 462 18,839 461,387 66,620 45,455 Colom- bian dollars. 366,460 58,987 139,251 839 39,223 49, 013 284,927 326, 2X<> 161,453 262, 791 421,381 9, 658 132,518 55,676 3,635 Per cut. 59.06 62.00 58.52 60.82 87.24 77.87 60.40 38.96 50.93 34.68 104.71 205.11 77.67 54.38 B2.8Q Amaga Barranquilla Caldas > Cartagena Cucuta' Girardot La Dorada La Sabana Northern Pacific ... Puerto Wilches Santa Marta. Southern . . Tolima.. . Total 1,195.0 742.3 4,728,135 955,933 5,131,637 '3.281,617 1 1,850,020 63.95 i Caldas Railway began operation in August, 1917. 1 Cucuta Railway does not give earnings of branches. Gauge 1 meter (3.28 feet). 'Loss. TRANSPORTATION. 301 RIVER NAVIGATION. 1 For an account of river navigation, which forms one of the most important means of passenger and freight transportation in Co- lombia, the reader is referred to the sections on the several commer- cial districts (especially the discussion of the Magdalena River system, p. 203) and also to the series of "Travel notes beginning on page 393. PUBLIC HIGHWAYS. 1 PRINCIPAL ROADS TECHNICAL CONDITIONS GOVERNING CONSTRUCTION. The roads and trails of Colombia are divided into three groups national, departmental, and municipal. The national highways are 8,603 kilometers (5,346 miles) in length, according to surveys; they comprise those that unite the capital with the frontier and strate- gical points, those that lead to regions for colonization, and those that unite the Department capitals with river or sea ports. The principal ones are as follows : The Central Northern Highway from Bogota to Cucuta, via Tunja, Tequia, Malaga, Chinacota, and Pamplona, with 171 miles in service. This great highway is constructed as far as La Paz, and the plans are made as far as Capitanejo on the border of the Depart- ment of Santander, representing approximately 62 miles more. Close to this road are to be found iron, lime, coal, building stone, etc. This highway, when completed, will connect Bogota with the Venezuelan frontier. The highway from Cucuta to the Magdalena, partly under con- struction and partly under survey. The Southwestern Road, destined to unite Bogota with the ex- treme southern part of the country, passing through Ibague, Calarca, Tulua, Popayan, and Pasto ; this has some sections in serv- ice and others under construction. The trail from Pasto to Puerto Asis by the Putumayo River, pass- ing through the villages of San Francisco and Mocoa, two-thirds of which is constructed. The Northeastern Road from Bogota to Gamarra above the Mag- dalena River, passing through Chiquinquira, El Socorro, and Buca- ramanga, some parts of which are cart roads that it is planned to im- prove from time to time. The Sarare trail between Pamplona and Tame destined to unite the northern part of the Department of Santander with the plains of Casanare; part constructed and part under survey. The Eastern Road, destined to unite Bogota with Calamar on the River Unilla (an affluent of the Vaupes in the Meta country) , passing by Villavicencio and San Martin; this road is in service to Villavi- cencio and in survey from there on. The Quibdo trail on the Atrato in the Intendency of Choco to the town of Bolivar in the Department of Antioquia. The Guadalupe Road in the Department of Huila to a point on the River Orteguasa via Florencia; aft in service. The Yarumal Road from Yarumal in the Department of Antioquia to Monteria in the Department of Bolivar; projected. 1 As far as the heading " Recent Road Legislation," on p. 302, this account is from "Construction Mate- rials and Machinery in Colombia," Special Agents Series No. 160, by W. W. Ewing. 302 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. In addition to the above, which are classed as preferential, there are many others of equal importance covered by ordinance No. 422 of 1917. The law assigns to public highways 700,000 Colombian dollars per year, which is paid by surtax of 5 per cent of the customs dues. This fund is called the special road fund. Conservation of roads is pro- vided for by road tolls. Departmental roads are financed by road taxes levied by the de- partmental governments within the Departments. The amount of these taxes may be estimated at 50,000 Colombian dollars per year for each section. Municipal roads are financed by the municipalities from local taxes and amount to about 500 dollars per year for each municipality. The technical conditions called for in all new roads are as follows : First-class roads Maximum grade, 6 per cent; minimum radius, 30 meters (98.4 feet); minimum tangent, 20 meters (65.5 feet). Sec- ond-class roads Maximum grade, 8 per cent; minimum radius, 20 meters (65.6 feet). Third-class roads Maximum grade, 10 per cent; minimum radius, 15 meters (49.2 feet). The road system is mostly in mountainous country of high relief, as the towns are usually situated on the plateaus or slopes of the Andes, the three ranges of which traverse the country from south to north and at many points reach above the line of perpetual snow. The cost of highway construction in the mountains, the road having a base of 8 meters (26.24 feet) and wearing surface of 5 meters (16.4 feet), with macadam 18 centimeters (7.09 inches) thick, was calcu- lated in 1917 as varying from 5,000 to 16,000 Colombian dollars per kilometer ($4,867 to $15,573 United States currency), equivalent to $7,837 to $25,077 per mile. In 1919 construction costs had in- creased by 30 per cent. Machinery is beginning to be used in road making, with good re- sults, and there are in use several stone crushers, excavators, and steam tractors of English manufacture belonging to the Government. The country is rich in silicious and calcareous rock. Labor is abundant in the cold country and scarce in the hot. There are no laws as to what constitutes a day's labor, but the custom is nine hours in the cold and seven hours in the hot country. Laborers in the cold country are strong, energetic, sober, and obedient; in the hot country they are not so satisfactory. RECENT ROAD LEGISLATION. During the past few years there has been increased agitation for good roads in the country, but the actual work of construction en- counters many difficulties, such as the general lack of sufficient funds, the broken nature of the country, and the lack of labor (except in the Departments of Cundinamarca and Boyaca, where there is an abundance of cheap labor and the country is more level and has a cool climate). Law No. 70 of 1916, known as the "General Law on Roads," de- clared all previous laws relative to road construction reformed and changed to meet modern conditions. Law No. 7a of 1917 authorized the investment of 10,000 Colombian dollars (dollar = $0.9733 United States currency) in five months' tune TRANSPORTATION. 303 in the part of the Southwestern Road between Ibague and Calarca, in the Department of Tolima. Law 8a of 1917 increased the amount assigned to the Northwestern Highway to 42,000 dollars annually (18,000 dollars for the division between Bogota and Socorro, 12,000 dollars between Socorro and Gil Bias (San Gil), and 12,000 dollars between Piedecuesta and La Florida) and elevated this road to the first class, as also that between Tunja and the Magdalena River. Law No. 12 of 1917 provided for the survey and location of the continuation of the Central Northern Highway (Bogota to Tunja) into the Department of Santander as far as Bucaramanga. Law No. 36 of 1917 authorized the construction of a steel bridge over the Sumapaz River to connect Cundinamarca with Tolima. Law No. 42 authorized a contract with the Department of Norte de Santander to continue the construction of the Sarare-Pamplona road. The roads and trails of the country have been divided into first, second, and third class wagon roads and first, second, and third class trails for mule transport and travel. HIGHWAY PROJECTS OF NATIONAL GOVERNMENT. The following table shows the annual assignment of funds for road- building provided by the surtax of 5 per cent on all imports, amount- ing in 1917 to 361,755 Colombian dollars, of which only 327,899 dol- lars was paid out by the Treasury in 1917, with an additional 38,388 dollars produced by road tolls throughout the Republic for the purpose of maintenance and repair: [Colombian dollar=$0.9733.) Name of road. Class. Annual as- signment. Condition. Central Northern Highway (Bogota to Tunja). Highway, Cucuta to Magdalena River. Southwestern Highway (Bogota to Pasto). Paste to Puerto Asis (Putu- mayo River). Northeastern Highway (Bo- Wagon road, first class. Wagon road, first class. Trail, first class... Trail, second class. Trail Colombian dollars. 250,000 50,000 42,000 24,000 54,000 171 miles in service. Upkeep and re- pairs. No new construction. 7 miles in use Ocana to Las Animas. Remainder under survey. Calarca section under construction. Survey to Popayan. Formerly under private contract. Work by Government being organ- ized. Repairs only, Bogota to Socorro. gota to river "via Bucara- manga). Sogamoso to Puerto Garcitas (on Caqueta River). Eastern Highway (Bogota to Calamar). Quibdo to Bolivar, Antioquia. . Guadalupe to Orteguasa. . Trail, first class. . . Trail, first class.. . Trail, first class... Trail, second class. 12,000 12,000 12,000 12 000 Repairs and survey only. Repairs, Bogota to Villavicencio. Sur- vey to Calamar. Active construction for mule transport under direction of Antioquia. Survey from Orteguasa to the south. Yarumal (Antioquia) to Mon- teria (Bolivar). La Plata to Cali Trail, third class . . Trail, third class 16,000 12,000 Survey under direction of Antioquia. Important for bringing cattle from Sinu River district. Construction work between towns o Tolu to Sincelejo Wagon road, third 12,000 Caloto and Taula. Construction, Tolu to Pichelin. Ei Meta Highway (Bogota to Cabuyaro). Carare River Highway (Tunja to Puerto Aqtiileo). Carmen to Zambrano' (Bolivar) . class. Wagon road, first class. Wagon road, third class. Wagon road, third class. 12,000 12,000 6,000 Repairs only. Not used as wagon road, except for a few miles out of Bogota. Repairs of part built between Tunja and Arcabuco. Survey only. 304 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. Name of road. Class. Annual as- signment. Condition. Progreso Road (Tunja to Cha- meza). Alban to Lower Magdalona Santander to Cauea River (El Valle). Quindio Trail (Tolima), Ibague to Zarzal via Armenia. Pasto to Barbacoas (Narino) Trail, third class.. Wagon road, third class. Wagon road, third class. Trail, third class... Wagon road Colombian dollars. 6,000 6,000 6,000 3,000 36,000 Repairs between Miraflores and Clia- meza and work between Tunja and Ramiriqui. Survey to Villeta. Work from Alban to Saisama, using Federal prisoners. Government engaged in condemnation of right of way. No construction work yet. Repairs, under supervision of Depart- ment of Tolima. Important trail through Quindio Pass, etc. 53 miles constructed, Pasto toward Campoalegre to Caguan Trail, second class. 20 000 Barbacoas. Remainder under sur- vey, with old trail to Patia River and Barbacoas. Under direction of departmental government. Work suspended on account of lack of Las Delicias Road Trail, third class 3 600 funds. Repairs only. Under supervision of Moscopan Road . . . Trail, third class 4 800 Department . Repairs only. Under supervision of Southern Highway. Sibate to Fusagasuga (Cundinamarca). Trail, first class. . . 6,000 Department. Construction and survey. Well-trav- eled and important local pack road. All the above-mentioned roads and trails have a definite assign- ment of funds annually and are either under survey (route location, etc.) or under construction. The following roads and trails also have assignments of funds, but no survey has been made and no work done thus far: Name of road. Class. Annual as- signment. Condition. Pamplona to Sarare (Norte de Santander). Cauca Valley to Istmina Trail, first class. . . Trail, third class Colombian dollars. 24,000 12,000 Contracted with Department of Norte de Santander. No funds allocated yet. No survev or work yet. Barranquilla to Cartagena, via Uslacuri. Monteria to Magangue (Bolivar). Western Highway, Mariquita to Choco. Riohacha to Chiriguana (Mag- dalena). Tunja to Meta River, via Macanal. Ambalema to Manizales (Caldas and Tolima). Nare to Medellin Wagon road, third class. Trail, third class.. Trail, first class. .. Trail, third class. . Trail, third class.. Trail, third class.. Trail, third class . . 12,000 12,000 6,000 12,000 12,000 6,000 3,000 15 kilometers from Barranquilla to Galapa and from Cartagena to Arjona in Bolivar are in use by automobiles. Remainder is not even good trail. Survey and work held up by lack of funds. Survev and work held up by lack of funds. Survey and work held up by lack of funds. See old pack trail via Valle de Upar, Soldado, etc. Survey and work held up by lack of funds. Repairs only. Good pack road. 'Im- portant highway in local trade. Crosses the Ruiz paramo south of the Mariquita-Manizales trail. Repairs only, by Department of Antio- Honda to Medellin via Sonson (Antioquia). Pitalito to Mocoa Trail, third class.. Trail, third class.. 4,000 10,000 quia. Repairs only. Old trail known as the "Sonson Road." Good pack trail. No survey or work, on account of lack Las Hermosas-Chaparral to Pal- Trail third class of funds. Survey and work held up by lack of mira (El Valle). El Paso to Magangue Trail, third class.. 6,000 funds. Survev and work held up by lack of funds. TRANSPORTATION. 305 The following roads and trails have been projected and planned, but they have no assignment of funds, and surveys or locations have not as yet been made: Name of road. Class. Name of road. Class. Medellin to Turbo (Antioquia). Soata to Cocuy (Boyaca) Trail, third class. Wagon road, third Southern Highway, Las Papas to Santa Rosa (south from Trail, first class. Jaraguay to Turbo class. Trail, third class. Bogota). Colombia to San Martin (De- Trail, second class. Tucura to Riosucio (Choco In- Trail, third class. partment of Huila). Micay Road Trail, second class. Atrato River to Pacific (Te- bada to Cupica). Duitama to Socorro. Trail, third class. Trail, third class. Apia to San Juan River Simiti to Magdalena River Chiquinquira to Magdalena Trail, third class. Trail, third class. Trail, first class. Eastern Highway of Cundina- marca. Wagon road, third class. River. WORK BY DEPARTMENTAL GOVERNMENTS. The Department of Antioquia is the most advanced in road and trail building. Fifty steel bridges for highways have been erected, and six more are under construction, at a total cost of 220,938 Colom- bian dollars. The entire Department of Antioquia is very mountain- ous, but the mule trails are very good and can be traveled with ease at all seasons of the year. The Department of Bolivar has erected 14 new steel bridges on highways over small streams. The Department of Caldas, following the example of Antioquia, has been very active in trail construction and has completed the following pack trails : Kilometers. Miles. Irra trail, Manizales to Riosucio 50 31 Manizales to Corregimiento de Brazil (Tolima) 30 19 Armaviejo trail, Pacora to Rio Arma (Antioquia) 20 12 La Ilermosa trail; Santa Rosa de Cabal to Pereira 13 8 Santuario to La Virginia 30 19 Herveo trail, Manizales to Marulanda 25 16 Marulanda to Pensilvania 30 19 Anserma to Quinchia 15 9 Los Medios trail, Belen to San Joaquin 15 9 Belen to San Juan de Antioquia 60 37 Other small branches have been built in Caldas to many small towns; they total 82 kilometers (51 miles) in length, all being excel- lent pack-mule trails, 2 meters (6.5 feet) wide and paved with stone in the bad places where mud collected in the rainy seasons. Seven large steel oridges have also been put in place two of them 40 meters. (131.2 feet) in length between abutments. There are also two large steel bridges one, 115 meters (377.2 feet) in length, over the Cauca River on the Manizales-Riosucio trail, and another, of 120 meters (393.6 feet) over the Arauca River. The total trail length for this Department, which is entirely mountainous, is 1,500 kilometers, or 931 miles. The trails are wide and of easy grade, allowing heavily loaded pack animals to pass in the most narrow places. The Department of El Valle has recently erected 5 steel bridges, 43 of brick and mortar, 4 arch bridges, and 7 new wooden bridges, with 1 suspension bridge. The important new roads and trails arc: The Southern Wagon Road, from Cali to Guachinte (toward Popayan) ; 37558 21 20 306 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. to be 50 kilometers (31 miles) in length, of which 12 kilometers (7 miles) are now constructed; the Western Highway, from Cali to La Torre, to be 150 kilometers (93 miles) in length, of which 41 kilo- meters (25 miles) are now constructed; the Central Highway, from Cali to Cartago, on the eastern side of the Cauca River, to be 200 kilometers (124 miles) in length, of which 58 kilometers (36 miles) are now constructed, passing through Palmira, Buga, Buga la Grande, etc. (over which there is automobfle stage service), and theSevilla- Valle trail of 35 kilometers (22 miles) now under construction. The Department of Cauca (capital, Popayan) has erected recently 9 small steel bridges over highways (trails) and has carried out important repairs on the steel bridges over the Guachicono, Aganche, and Palo Rivers, on the wooden bridge over the Palace River near the town of Polindara and another in the district of Corinto near La Maria, and has also done some canalization work in the River La Taila. Fifteen other small bridges of brick have been built recently. The Department of Tolima has erected recently two new steel bridges over the Coello River between Espinal and Coello, and another over the Saldana River between Purificacion and Guamo. Seven small wooden bridges have also been newly erected, and a steel ferry has been placed at Natagaima at the ford over the Magda- lena River to Giraraot. The Department of Huila has constructed only two new bridges one at Garzon over the stream of that name and another over the Venado River where the trail for the town of Colombia passes Baraya. There are three bridges of importance over the Magdalena (which is narrow and swift in its upper reaches, in Huila) one at Mai to, another at Guayabal, and a third at Balseadoc-ro. The Department has managed to maintain existing roads (trails), but has done no new trail construction work on account of lack of sufficient funds for this purpose. The Department of Narino is exerting every effort for the com- pletion of the very important wagon road from Pasto to Barbacoas, in order to secure an outlet to the Pacific port of Tumaco. The Department of Magdalena (capital, Santa Marta) has erected four new steel bridges one at the River Zurra in the Tenerife district, one over the Rio Remolino (slough) , another at Las Gallinas (slough) on the La Gloria-Simana trail, and another over the slough called Ciego near Concordia. Considerable dredging work has been done at the market place of Cienaga, where the steamers dock from Barranquilla. Road building in the Department of Atlantico (capital, Barran- quilla) has been confined to the prolongation of the Barranquilla- Cartagena Highway, on which an additional 26,000 dollars has been spent, chiefly in small brick culverts and new work tow.ard Barona. The Eastern Highway from Barranquilla to Palmar de Varela, passing through Sabanalarga, is now in service as far as Soledad (about 18 miles). The Barranquilla-Cartagena wagon road is in service as far as Galapa, a distance of 15 kilometers (9 miles). The Department of Santander has completed the construction of 2 kilometers (1.2 miles) of the wagon road between San Gil and Socorro on the Northwestern Highway; 7 kilometers (4.3 miles) of the wagon road between Velez and trie bridge site on the Liberitas River, known as the Carare River Road; and 64 kilometers (40 miles) of trail have TRANSPORTATION. 307 been completed between Puerto Wilches and Puerto Santos on the Lebrija River. Several small wooden bridges have been constructed and all old trails kept in fair repair. Santander del Norte has confined road building to the maintenance of the Cucuta-Pamplona road via Raizon and repairs to the Salazar- Arboledas trail, the La Arenosa-Zulia River trail, the trail between El Carmen and the Magdalena River via Portachuelo, and the trail from San Pedro to La Cruz. NATIONAL REVENUE FOR ROADS. In 1918 national revenue for roads amounted to 58,417 Colombian dollars from tolls, of which collection expenses took about 8,000 dollars. This sum is spent for the repair and maintenance of the existing roads. The product of the 5 per cent surtax for roads on all imports amounted in 1918 to only 233,638 dollars, against 361,755 dollars in 1917. The budgets of the Departments for 1919-20 amounted to a total of 10,479,891 dollars, their principal revenue being derived from the liquor, tobacco, and slaughter taxes. Of this sum it was estimated that at least 1,500,000 dollars would be spent for new road building in the period from June 30, 1919, to July 1, 1920, the largest road appropriations being for Antioquia, Caldas, and El Valle, in the order named. (See "Departmental finances" in the reports on the several commercial districts, beginning on p. 185.) MARKET FOR ROAD-BUILDING MACHINERY. It may be stated that there is a fair market for road-building machinery in Colombia, but what is most lacking is a practical knowledge of actual construction work and of the best methods of using local materials, which are of good quality and plentiful in most cases. Roads for wheel traffic are badly needed throughout the Atlantic littoral, but, unfortunately, the three Departments, Magda- lena, Atlantico, and Bolivar, have a small and poor population and lack sufficient revenue to undertake much construction work in a large w T ay. The introduction and demonstration of machinery would be easy in this district during the dry season of the year. Tne importa- tion of heavy machinery into Antioquia would be costly on account of the distance from the seaboard and the high freight rates, though Bogota may be said to be a good market, and a considerable number of steam rollers are now in use pn the Great Northern Highway. Cali offers a good market and can be easily reached by water from Panama. In this region (the Cauca Valley) labor is scarce and ineffi- cient, and the departmental onicials are interested in road-building equipment. In all parts of the country oxen would have to be used on scrapers, plows, graders, etc., as the native mules are too small and light for heavy draft work; or else gas tractors would have to be used. At present it is customary to use the round washed gravel of the stream beds for surfacing, but this has proved unsatisfactory, and there is a market for rock crushers that can be made portable, shifting with the progress of the work. In view of the prosperous condition of the country and the increased revenues of the various departmental governments which are most interested in road building, it is thought that the sending of a repre- sentative to 'the country for a few months to study conditions and 308 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. cooperate with the engineers and officials would be productive of some very good business in road machinery. Such a representative would necessarily have to speak Spanish and be practically familiar with road making under all sorts of conditions, the company being prepared to lend his services to the various governments for a certain period after the delivery of the machinery, in order to assure correct operation and results. MARKET FOR MOTOR VEHICLES. The present rapid growth of automobile sales in Colombia indi- cates a recognition of the motor car as an important factor in over- coming the transportation difficulties which have long retarded that country's development. With an area of 440,000 square miles and a population of about 6,000,000, Colombia has only 740 miles of rail- way, and must depend to a great extent upon its rivers and its highways for the transportation of native products from the interior to the seaports and for the distribution of imported merchandise. The Magdalena River has been called Colombia's great natural highway, but, as already mentioned, sections of this river are not navigable during the period of low water, and other sections must always be avoided because of dangerous rapids. Colombia has 5,000 miles of national roads, but only a comparatively small part of this mileage can be used for motor traffic. However, in the dry season level stretches of dirt roads, covering only a few miles, are utilized by automobile enthusiasts, and, as indicated in the preced- ing pages, plans for new road construction and street paving are being put into execution in many districts. The pressing need of more transportation facilities brings the automobile into almost inaccessible places, where cars must be brought in knocked-down condition on the backs of mules. Once introduced, these cars lead to improvements in the pack trails and wagon roads, and so find a continually widening field of operation. An indication of the growing popularity of the American auto- mobile in Colombia and of the increasing prosperity of the Colom- bian people appears in the following table of the exports of motor vehicles from the United States to Colombia from the beginning of the fiscal year 1913 to the end of April, 1920, not including the six months between the close of the 1918 fiscal year (June 30) to the first of the 1919 calendar year, when the exports included 30 pas- senger cars and 2 motor trucks. Of the 1,333 motor cars and trucks shipped in this period, 1913-1920, 25 per cent were exported in the first four months of 1920. The table follows: Periods. Commercial cars. Passenger cars. Parts. Tires. Motor cycles. Total value. Num- ber. Value. Num- ber. Value. Value. Value. Num- ber. Value. Fiscal year: 1913 3 $6,112 110 79 39 91 173 164 253 302 (113, 334 69,620 34,056 58,525 118,937 121, 422 298, 383 374, 732 $18,676 19, 970 9,695 18,967 27,777 40,717 77, 159 53,044 $16,211 18,925 15,239 28,617 39,298 ->(, (Us 124,238 51, 578 4 9 11 12 11 13 8 Iff $900 2,066 2,359 2,607 2, 12S 2,472 2,067 5,815 $155,233 110,581 63,486 109, 952 193, 138 226,359 541,188 546,609 1914 1915 1 4 2 3 38 39 1,237 1,236 4,998 7, 100 39,341 61,440 1916 1917 1918 Calendar year 1919 Jan.-Apr., 1920 TRANSPORTATION. 309 The exports of motor trucks have increased more than any other item in the motor class, indicating the growing use of this vehicle for highway transportation. In addition to the 39 trucks shipped in the first four months of 1920, 15 mo tor- truck chassis were exported to Colombia in the same period, pointing to the use of locally produced bodies. The value of the motor trucks increased 52 per cent that year, the 1919 exports having averaged $1,035 and the 1920 shipments $1,575 each. Passenger cars increased in average value from $1,179 in 1919 to $1,240 in 1920, and motor cycles from $258 to $323. The use of motor trucks for moving freight has only recently been adopted to an important extent, most of the hauling having been done in two-wheel burro carts or on the backs of mules. However, these primitive methods prove expensive, and they are always slow and particularly difficult when the freight consists of heavy or bulky ar- ticles. The few importers who now use trucks to bring their goods from stations and wharves to their warehouses find this modern means more economical as well as more satisfactory in other ways. In view of the growing attention given to road improvement, the market for trucks for long-distance hauling to supplant the mule and cart is promising. The use of trailers would be difficult in the narrow city streets with their sharp turns, but trailers could be used to great advantage for hauling cotton and other produce from the country. At present motor trucks cost too much for the average trader or farmer, since even the cheapest cars are sold in Colombia at twice their cost in the United States, because of the expense of trans- portation, customs duties, etc. The Department of Bolivar, according to a report of the American vice consul at Cartagena, lends itself readily to the use of automobiles and tractors, and road-building materials are easily accessible. To- ward the mouth of the Magdalena River the land is broken by low hills, running south as far as Calamar. To the south of Cartagena and extending to the valleys of the Sari Jorge and the Cauca the land is one great plain, with only a few undulations. This country is heavily wooded, and it must be cleared by natives who cut out the vines and underbrush, felling and burning the large hardwood trees. Stumps and half-burned logs soon disappear under the action of the heavy rains and the intense heat. A few tractors have been introduced to work this rich land, and the plans for -more extensive rice and sugar production make this a promising field for motor cars and machinery. Cartagena offers opportunities for greatly increased sales of auto- mobiles. The lack of street railways has led to the use of passenger trucks and private cars for transportation from the city proper to the suburbs, 14 motor busses doing a capacity business in this line. About 36 miles of the road between Cartagena and Barranquilla are now passable for automobiles. The largest market for motor cars is Bogota, the registration in that city in 1919 having reached 237. Barranquilla was second with 150 cars, Cartagena third, Cali fourth, and Medellin fifth. The vicinity of Cali may be considered the most active market for motor cars and trucks, on account of the enlarging stage service in that section. Last year 56 cars were operated as stages, most of these cars being of the medium or low-priced type. Even hi the moun- tainous region at Pasto the motor car is in use on the highway run- 310 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. ning north from Pasto toward Barbacoas, which is to extend later to tlie seaport of Tumaco. Motor cycles have not been popular in Colombia because of the poor streets and roads, but there has been a considerable increase in their use recently, following road improvements. During the rainy season most roads are impassable for motor cycles, and after rains the roads become caked and rutted and even more difficult for motor cycles than for four-wheeled vehicles. The customs duties on motor cars and trucks imported into Co- lombia amount to about $0.49 (American gold) per 100 pounds, gross weight, including all surtaxes. On automobile parts the duties amount to $0.97, on tires to $0.97, and on motor cycles to $2.43 per 100 pounds. All costs of shipping, entry, etc., from the factory in the United States to the salesroom in Colombia may be estimated, for a car of average size, at about $300. Local Colombian firms act as agents for American automobile manufacturers, and they usually sell cars on tune .payments, re- quiring $500 cash and from $50 to $100 a month on cars selling at $1,500 to $1,800. At the present time all the automobiles in use in Colombia Tare of American make, with the exception of a few French and Italian cars imported before the war. The American consul at Cartagena reports that cars from the United States received at that port have usually arrived in satis- factory condition. He adds that knocked-down cars, like heavy parts of machinery, should be encased in materials of substantial quality and should be well braced, cross braces and blocking being recommended to prevent any movement of parts in the cases. For cast-iron parts and delicate machine pieces, sectional braces should be used in packing. All bolts should be countersunk. No packages should weigh more than 500 pounds, for the facilities for unloading heavy packages from the vessel and for transporting them into the interior are inadequate. While gasoline has been high in Colombia, the recent development of local oil fields and the establishment of a refinery (see p. 129) is expected to provide an adequate supply of gasoline at prices no higher than those prevailing in the United States. This local fuel will undoubtedly prove a great advantage to the automobile trade in Colombia. FOREIGN TRADE. INTRODUCTORY REVIEW. In spite of many difficulties, not the least of which is the broken nature of the topography, making communication extremely difficult, the commerce of Colombia has shown a steady growth ever since the country's liberation from Spanish rule. The population has steadily increased from 1,686,000 in 1834 to 5,472,000 in 1912, and there has been a satisfactory increase in exports and imports per capita. During the period from 1834 to 1854, with an average population of 2,000,000 people, exports avera'ged only $1.30 per capita and imports $2.05 per capita, showing an unfavorable balance of trade and a very low production. Between 1854 and 1868, with an average population of about 2,250,000 people, exports averaged $4 per capita and imports $3.25 per capita, snowing an increase of exports over imports and giving the country the first favorable balance of trade. Between 1869 and 1904, with a population of possibly 3,000,000 people, exports had increased to $5.43 per capita and imports to $3.21. Since then expansion has been much more rapid, as, during the period from 1905 to 1918, with the population around 5,500,000, exports increased to $6.90 per capita and imports to $4 per capita. It is during this last period that commerce has experienced its greatest expansion, imports having doubled in value ana exports tripled in value, as is shown in the table on page 313. Even during the war years (1914-1918) Colombia held its own very well and did not suffer nearly so much as some of its Latin American neighbors, though a serious effect was felt after the entrance of the United States into the conflict in 1917. In 1905 exports and imports were about equal in value, but by 1918 exports had increased over imports to the extent of 14,694,555 Colombian dollars exports total- ing 37,728,559- dollars and imports 22,034,004 dollars giving the country the largest trade balance in its commercial history. (Colom- bian dollar = $0.9733.) Exports for 1919 (definite figures for which are not yet available) were expected to total, in value, about 60,000,000 Colombian dollars, this unprecedented amount being caused by the heavy coffee crop; 1,300,000 sacks of coffee were shipped, instead of the former high average of 900,000, and at prices about double the previous high averages. Hides also swelled this grand total of exports, a rather large quantity having been held over during 1917 and 1918, on account of the difficulties of shipment, and sold hi 1919 at prices averaging about 53 cents per pound, whereas 28 cents had been a previous nigh price. It is also estimated that official figures for 1919 will show the im- ports to have been very great in value (though not much greater in tonnage) , almost wiping out the previous favorable trade balance of Colombia. All these imports were chiefly purchased in the United States during a period of high prices for all classes of merchandise, prices being rather higher even than during the war. 311 312 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The great advantages of the entire situation brought about bi heavy crop and high prices of coffee in 1919 lay in trie influx of _ into Colombia from the United States; in the retention in "the country of its own production of gold, formerly exported; in the consequent increase of the circulating medium to about $40,000,000 (including all kinds of currency) ; analast, but not least, in stimulat- ing American interest in the country, thereby bringing about a better knowledge of Colombia and its natural resources, which is resulting in a better understanding, more liberal credits, the invest- ment of capital, and loans for public-utility projects long needed. Another important factor is the interest being taken by American oil companies in Colombian petroleum development, whicn will mean a source of new wealth for the country and will lead to investment in other enterprises worthy of development. CONDITIONS AFFECTING ESTABLISHMENT OF CLOSER RELATIONS WITH UNITED STATES. As a result of the War, Latin America is coming more and more to believe that future development is dependent upon help from the United States and Great Britain, and the business element of Colom- bia is looking to the United States for capital and assistance in many lines. Generally speaking, however, it would appear that, before closer relations can be brought about, certain modifications may be necessary in respect to legislation and administrative procedure in Colombia in order to bring about a greater similarity of methods in the two countries, forming a basis for mutual protection and con- fidence and, at the same time, stimulating business hi Colombia it- self. In this connection, the example of the existing customs laws may be cited; these are regarded by many persons as antiquated and as haying the far-reaching effect of penalizing business and commerce. It is felt by students of the question that some adequate means of internal taxation should be worked out so that import duties could be placed on an ad valorem basis and the National Government escape from its dependence upon import duties, which now constitute about 80 per cent of the national revenue. One hears suggestions, also, that measures should be passed to eliminate the present system of release of goods from customhouse to the holder of the consular invoice irrespective of the bill of lading, and thereby make " to order' ' shipments to Colombia possible. Also, under the present system, the possession of the interior shipping documents does not necessarily give the foreign buyer or lender complete control of goods of export from Colombia unless he also has the ocean bill of lading. Operating as another deterrent to trade are the existing laws (Coae Napoleon) covering mortgages and chattel mortgages, which do not give the lender full protection unless he is in actual possession of the security. A wider knowledge of foreign banking systems and requirements on the part of Colombians would also help toward a closer mt!*ual understanding and agreement. FOREIGN TRADE. GROWTH OF FOREIGN TRADE. 313 The slow but steady growth of Colombia's foreign trade is shown in the following table: [Colombian dollar=$0.9733.] Year. Exports. Imports. Year. Exports. Imports. 1832 Colombian dollars. 1,236,850 Colombian dollars. 1, 454, 142 1909. Colombian dollars. 16 040 198 Colombian dollars. 12 117 927 1842 2, 386, 967 3,423,288 1910 17, 786, 806 17, 385, 039 1855.. 3,393,251 4, 168, 468 1911 22, 375, 899 18, 108, 863 1865. 6, 772, 017 7,897,206 1912 32,221 746 23 964 623 1870 8, 247, 817 5, 759, 018 1913 34, 315, 251 28,535 779 1880 15,836,943 12, 121, 480 1914 32, 632, 884 20, 979, 228 1885 14, 171, 241 6, 879, 531 1915 31 579 131 17 840 619 189") 15, 088, 316 11,523,222 1916 36, 006, 821 29,660,206 1905 12,314,916 12, 281, 720 1917 36, 739, 881 24, 758, 844 1908 14, 998, 744 13, 513, 891 1918 37 728,559 22 034 004 NOTE. For a complete table, year by year, of Colombia's foreign trade since 1834, see "Informe del Ministro de Hacienda' ' for 1918, pp. clxxxiv and clxxxv. STATISTICS OF COMMERCE IN A NORMAL YEAR. In a modern prewar year, 1911, the principal exports were as follows : Articles. Kilos. Value. Articles. Kilos. Value. Coffee 37.899,968 Colombian dollars. 9, 475, 448 Bananas 109, 785, 748 Colombian dollars. 2 172 000 Gold 10, 574 3,751,632 Tobacco 3, 911, 012 332 935 Hides 4,449,475 1,779,790 Hats 93,874 1, 088, 821 Rubber 576, 760 900,886 Platinum l 2,554 345 896 Ivory nuts 10,989,605 739, 419 1 Greatly increased in value since 1911. Total exports for 1911 amounted to 22,375,900 Colombian dollars, of which the United States received goods to the value of 12,248,995 dollars, Great Britain 4,596,138 dollars, Germany 1,910,354 dollars, Spain 119,655 dollars, France 769,189 dollars, Panama 42,977 dol- lars, and all other countries 2,688,591 dollars. Imports amounted to 18,108,863 Colombian dollars, as follows: Colombian dollars. Great Britain 5, 838, 790 United States 5, 404, 976 Germany 3, 242, 635 France 1, 718, 748 Spain 397, 733 Panama 31, 791 Other countries 1, 474, 191 Total 18, 108, 864 Analysis of the export trade before the war shows that more than two-thirds of the coffee went to the United States, the remainder going to England, Germany, and France, with England taking the largest share. Gold, silver, and platinum went to the United States to the extent of nearly 50 per cent, with Great Britain next and 314 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. France third. Hides and skins went principally to the United States, as did bananas, hats, rubber, cacao, woods, and medicinal plants and herbs. Germany ranked first as a market for Colombian tanning materials, tobacco, and vegetable ivory. The proportions of the imports to Colombia from foreign nations may be illustrated by the following statements of the most important items, taken from the returns for 1911, as a normal prewar year. The principal item of import into Colombia is textiles, of which a total of 8,025,856 Colombian dollars' worth was imported during 1911, coming from the various countries as follows: Colombian dollars. Great Britain 4, 202, 734 Germany 1, 194, 529 United States 1, 089, 945 France 897, 993 Spain 98,643 Panama 6, 940 Other countries 535, 072 Foodstuffs amounted to 2,191,009 dollars, from these countries ( f origin : Colombian dollars. United States 1, 078, 387 Germany 540, 132 Great Birtain 181, 324 France 62, 221 Spain 46, 029 Panama 4, 418 Other countries 277, 598 The next important item was metals, amounting to 2,004,081 dollars, furnished by the several nations as follows: Colombian dollars. United States 679, 628 Great Britain 652, 501 Germany 487, 204 France 92, 039 Spain 5,793 Other countries 87, 916 The next highest item was locomotives and railway equipment, of which 726,048 dollars worth was imported in 1911 : Colombian dollars. United States 441, 113 Great Britain 151, 110 Germany 60, 810 France 8, 890 Other countries 64, 125 Another important item was that of drugs and medicines, amounting to 762,209 dollars in 1911: Colombian dollars. United States 327, 832 France 154, 005 Germany 127,912 Great Britain 109, Oil Other countries 43, 449 In the class called "Arts and trades," 702,856 dollars' worth of goods were imported, of which the United States furnished 518,486 ollars. Wines and liquors amounted to 628,595 dollars, of which FOREIGN TRADE. 315 the United States supplied 42,059 dollars, France 196,058 dollars, and England 78,232 dollars. Germany led in earthenware and glass, with the United States a close second. Imports of paper products amounted to 453,701 dollars; of this the United States furnished 190,191 dollars, with Germany second. Of electrical machinery and equipment the United States furnished half. PREWAR TRADE CONDITIONS. 1 Methods of trade and business in Colombia vary little from those in most other Latin American countries. Specialization has not been carried very far as yet, with the possible exception of the hard- ware trade, ana merchants are both importing wholesalers, retail merchants, and exporters, all under one roof and combined. Many such firms are likely to be composed of foreigners settled in the country, or of merchants of foreign parentage, and among these the Germans were conspicuous before the war. Another numerous and important element is that of the Syrians, who are very strong on the Caribbean coast and are even invading the interior at such centers as Girardot, Honda, etc. Very often, when the Colombians engaged in trade are successful, they come to the United States or to Europe, where they engage in a general export and import commission business or purchase for their own account for their branch stores in Colombia, and these men manage to obtain a very considerable share of the Colombian business. Colombian firms so established in New York have been very successful during the war and have become a powerful factor in Colombian trade, since they maintain branches in all the important commercial centers of the country and even engage in transportation ventures in order to further facilitate their business. Except for the bananas from Santa Marta and a few special articles, nearly all the exports of the country go to the commission houses of the United States and Europe; before the war, New York, London, and Hamburg, in the order named, were the principal markets. Even a very large part of the gold, silver, and platinum went to the same firms. The commission houses that receive and sell the larger part of Colombian exports also control a large share of the purchases made by that country abroad. Few jobbers or manufacturers have been able to make a success of branch houses in Colombia, on account of the great distances between the various commercial centers of the country, the difficulties of intercommunication, etc. the total volume of business in any one line not being sufficient to pay for the extra expense. For this same reason, the commission houses have controlled the bulk of the business with Colombia, and the average Colombian importer prefers to deal with one or two reliable com- mission houses with which he can place all of his orders for miscella- neous assortments of goods and be taken care of on one or two accounts, thus greatly simplifying his business and making possible the choice of a wide market selection. Since the war there has been a decided tendency in Colombia toward greater specialization, and merchants are endeavoring to get 1 Certain parts of this section are based on statements appearing in "Colombia," by Phanor J. Eder. 316 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. in touch with. manufacturers or jobbers of certain lines in demand. Men's-wear stores are among the commercial innovations, as are also millinery stores, exclusive shoe shops, etc. The largest stores make a specialty of textiles, of course, and cheap cotton goods usually make up at least 75 per cent of their stocks. Normally, many manufacturers and jobbers maintained agents in Colombia, located in the various centers of greatest commercial activity. These agents were selected from the native or foreign merchants already established in the country, who combined several lines, besides handling their own business, and so were not in a position to give the best attention to anv one line entrusted to them. Although the United States, even before the war, was the largest buyer of Colombian products and the largest purveyor of merchan- dise, very little attention was given to Colombian trade outside of the commission houses directly interested in the business of the country. American manufacturers often refused agencies o demanded a large initial order for goods; in general, liberal creditr were not extended, stocks were not allowed to be carried, and ships ments were not made on consignment. Before the war, European Tiouses had a greater appreciation of Colombian trade than Americans did, and there were numerous Europeans settled in the country and engaged in trade quite in contrast to Americans, of whom there were almost none. European houses were also more generous in the matter of credits, granting six and even nine months and sometimes a year, with 90 days as the least. Samples were furnished free of charge. The Europeans had a much better general knowledge of conditions in Colombia, their foreign-trade education was much better, they paid more attention to details of packing, billing, invoicing, etc., and they cooperated to a much greater extent. Colombian merchants had many grounds of complaint against American manufacturers and exporters and much preferred to dp business with Europe. It is significant that most of the commission houses in New York that lead in trade with Colombia are composed of foreigners Germans, West Indians, native Colombians, or other Spanish Americans. CONDITIONS AFTER THE WAR. The Colombian merchants and business people, long accustomed to relations with Europe, failed to grasp the full significance of the economic situation in Europe following the armistice. They confi- dently expected England, France, and even Germany to begin exporting, the same as before the war, immediately following the armistice; and during 1919 they refrained from buying for months and months, hoping that their old European suppliers would make quotations. During the war buying had been done chiefly in the United States, though Great Britain managed to keep up a fair trade with Colombia in spite of the lack of tonnage and the restrictions of trade in general; but the Colombian merchants, while interested in many of the American products, liked the old lines and customs better and carefully watched both markets until the reaction of the domestic market and the brisk demand for goods forced them to place heavy orders in the United States in 1919 in the face of a speculative and rising market. With the exception of textiles (and FOREIGN TRADE. 317 more of these were taken from the United States than ever before), the principal buying by Colombia after the armistice was in the United States. It was during this time of active demand in Colombia following the reaction in May, 1919, that the Colombian merchants fully realized the importance and value of the proximity of the New York markets; there was no time to wait for delivery from Europe in six months when deliveries could be secured from the United States in four to six weeks; and, besides, all balances for the coffee crop were in New York, which made financial arrangements very easy. So sure were the Colombians of immediate resumption of ship- ments of goods from Europe after the conclusion of hostilities that many merchants canceled orders at war prices by cable upon the news of the armistice, expecting prices to fall at once. The general public also expected a drop in prices after the war. Buying was very slow for goods bought during the war (further affecting the action of the importers canceling), and textiles were offered at very low prices to clear stocks. The receipt of cabled advices from New York in January of considerable reductions in prices of various lines further complicated the situation, with the result that the older houses and more conservative merchants did not place their usual spring orders, and buying in Colombia, or for Colombian stocks, became a matter of speculation. However, a few shrewd merchants of the coast and Medellin, understanding the fundamental situation, bought heavily at the lower prices induced by the heavy cancellations in New York, and later reaped a rich reward of profit when the Colombian market reacted in May and June on account of the coffee situation. After the market had reacted in May, buyers from the interior flocked down to the coast and to Medellin to buy goods at any prices ; stocks were soon exhausted there, and merchantsmirried with orders to New York in many cases not being able to obtain the full assort- ments or qualities wanted and in most cases being forced to content themselves with smaller quantities of goods than they had expected to purchase for the home demand at that time. The necessity was to take care of the immediate demand in Colombia for the interior trade, but in this merchants were handicapped by the slow deliveries, the lack of ocean freight service, and, still worse, transportation difficulties in the country itself during this rush season. During the war Colombian merchants found that there were a great many articles called "American specialties" that sold well in Colombia, and merchants were particularly anxious to pick up new lines and new items of trade. Among such "American specialties" the following lines were in active demand : Clocks. Kitchen ware. Spices. Drugs and heavy chemicals. Office equipment (files, cabinets, etc.). Show cases and show-window fittings. Lubricating oils and greases. American white goods. Wire, barbed and round. Cutlery. Leather shoe findings. Corn-grinding mills. Electric-light fixtures. Haberdashery. Heavy hardware and building hard- ware and fittings. 318 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. STATISTICS OF COMMERCE IN 1918. Following is a summary statement of Colombia's foreign trade for 1918 (the 1919 returns are not yet available): Classes of trade. Kilos. Viable. Imports: Through (,hfi f.nst.omhoiisfis ( 54,247,137 Colombian dollars. 19,900 905 By parcel post 390, 739 2,133,099 Total 54,637,876 22,034 004 Exports 1 234, 702, 239 137,72s 559 1 Included in these figures are 9,492 kilos, valued at 98,611 dollars, that were exported by parcel post. It is apparent from the above statement that in 1918 the balance in favor of exports amounted to 15,694,556 dollars. The exports during 1918 may be summarized as follows: By groups. By countries of destination. Groups. Value.i Per- centage. Countries. Value.i Per- centage. Live animals. .... Colombian dollars. 1,432,184 3,090,378 5,740,752 25.784,369 1,524,527 22,148 35,589 98,612 3.80 8.19 15.21 68.34 4.04 .06 .10 .26 Dutch West Indies.. Colombian dollars. 122,717 778,364 284,728 21,443 1,649,769 554,764 31,134,005 3,182,769 0.32 1.47 82.52 2.06 .75 .06 4.38 8.44 Animal products France Mineral products. Great Britain Vegetable products a ... Italy Manufactured products M iscellaneous Panama Spain Money . . .... D nited States Parcel-post exports Other countries Total Total 37,728,559 100.00 37,728,559 100.00 1 Values based on prices obtained in foreign markets. 2 Mainly coffee. The following table shows the weight and value of the imports to Colombia, and the duties collected on them, during the last nine years for which statistics are available: Years. Kilos. Value. Duties col- lected. 1910... 90,721,516 Colombian dollars. 17,385 040 Colombian dollars. 7,431 657 1911 116,087,811 18, 108, 863 7,704,677 1912 135,819,367 23,964,623 9, 322. SCO 1913 .. 158,774,092 28,535 780 12,635,185 1914 127 752 061 20 979 229 9 554 386 1915 104,983,208 17,840 350 7,400 481 1916 115,215,155 29,660,206 11,387,212 1917 99 743 409 24 758 845 7 97S SOG 1918 .. 54,637,876 22,034,004 4, 880, 002 The above table shows the high year of 1913 prior to the war, during which 158,774 metric tons of merchandise were imported into Colom- bia, having a total value of more than 28,000,000 dollars. Imports decreased gradually during the war years of 1914, 1915, and 1916 until the entrance of the United States into the war, after which the FOREIGN TRADE. 319 quantity of Colombian imports was cut to almost one-third in 1918. . The Government received only about one-third of the usual revenue collected on imports, and this precipitated a financial crisis. One can readily see how the high prices paid for all imports affected returns. In 1913, 158,774 metric tons were valued at 28,535,779 dollars, while in 1918 only 54,637 metric tons cost 22,034,004 dollars. From this it would appear that an ad valorem system would better answer the needs of the Government. The main difficulty lies in the lack of experienced appraisers and the fear that this system might bring about fraud. Imports by principal classes were as follows during 1918: Classes. Value. Percent- age. Classes. Value. Percent- age. Oils and greases Colombian dollars. 213 838 0.97 Electricity Colombian dollars. 275, 382 1.25 Foodstuffs.. . . . . 881. 511 4.00 Explosives, etc 130,588 .59 Combustibles 915,282 4.15 Musical instruments 77,662 .35 Animals . . 14.952 .07 Locomotion 707,726 3.21 Agriculture, mines, etc 854,966 3.88 Woods and manufactures of. 124,074 .56 Arts and crafts and profes- sions 240,186 1.09 Metals and manufactures of. Paper and paper products. . 2,320,769 710,691 10.53 3.23 Arms and ammunition 68, 148 .31 Soap and perfumery 101,057 .46 Paints, varnishes, etc 192,884 .88 Plants and seeds 6,454 .03 Wines and liquors 294 ; 116 1.33 Textiles 9,587,893 43.52 Glass, crystal, chinaware, etc 506,321 2.30 Tobacco and manufactures of... . 193, 492 88 Rubber, celluloid, etc 78. 169 .35 Miscellaneous 35,573 .16 Shell, bone, etc 42,904 .20 Parcel-post imports 2, 133, 099 9.68 ucts 332, 235 1.51 Total. 22, 034, 004 100.00 Drugs and medicines . . . 994 032 4.51 It will be seen that parcel-post imports constituted nearly 10 per cent of the total imports; these were chiefly made up of fancy dry goods, men's and women's wear, etc. The largest percentage was in textiles, amounting to more than 43 per cent of the total imports. In previous years this percentage had been still higher, at times reaching 60 per cent. Following is a summary of the imports in 1918 by countries of origin : Countries. Value. Percent- age. Countries. Value. Percent- age. Cuba Colombian dollars. 35, 592 0.16 Panama Colombian dollars. 482 181 2 19 Dutch West Indies 45,862 .21 United States 330 480 1 50 France 195,203 .88 1 814 871 8 24 Great Britain 12 497 707 56 72 Italy '697' 472 3 17 Total 22 034 004 100 00 Netherlands . . 5,934 636 26 93 320 COLOMBIA: A COMMERCIAL. AND INDUSTRIAL HANDBOOK. POSITION OF UNITED STATES IN COLOMBIAN TRADE. Out of the total exports, amounting to 37,728,559 Colombian dol- lars, the United States received 31,134,004 dollars' worth in 1918, or 82.52 per cent; and of the total imports, amounting to 22,034,004 Colombian dollars, the United States furnished 12,497,707 dollars' worth, or 56.72 per cent. Of imports the United States furnished 56 per cent in 1917 and 53 per cent in 1916. The United States received 92 per cent of all exports in 1916 and 89 per cent in 1917. The chief article competing with the United States in Colombian trade was cheap cotton, textiles from England, which country fur- nished in 1918 2,857,956 kilos of such goods, valued at 5,033,570 Colombian dollars representing almost the entire amount of Great Britain's shipments to Colombia. CUSTOMS TARIFF AND IMPORT DUTIES. INTRODUCTION: GENERAL CONSIDERATIONS. The import duties of Colombia are specific and assessed on the gross weight of the contained merchandise, including wrapping, boxes, etc. Imports are divided into a series of groups for tariff classification pur- poses (see "Codigo de Aduanas de Colombia")- Import duties on merchandise imported through the usual freight channels are not now assessed according to the highest value of article contained in a mixed package, as was formerly the case; the law has been changed so as to permit " mixed" shipments in the same container, packing cases being opened and inspected in the customhouses at the ports of entry and the goods classified according to the invoices and packing lists provided for the purpose. The weight of the container or packing is divided proportionately among the different kinds of articles in determining the respective duties. Formerly, before this reform was put into practice, a machine, consisting principally of cast iron but with brass fittings attached, was assessed according to the high rate of the brass articles found thereon. However, the change mentioned does not as yet apply to shipments by parcel post, in which goods are assessed according to the highest value that is, the highest rate for any group of contents. (See p. 328.) The fundamental system for levying import duties on the gross weight, regardless of value, imposes a heavy tax and an onerous restraint on commerce in general. A purpose to protect infant native industries exists in Colombia. Flour, shoes, cotton goods, wheat, sugar, etc., are protected by a high import duty, which, in view of the small volume of domestic manu- facture in many of these lines, really operates to the disadvantage of the public by bringing about an increase in cost, since the prices of the domestic products have a direct relation to the competition with imported articles. For example, in 1918 the import duty on wheat was increased with the idea of stimulating the native industry, which flourishes on the table-land of Bogota. The result was that wheat could no longer be imported by the cities of the coast, where there are flour mills, and, moreover, could not be brought down from Bogota on account of the very high freight charges down the Mag- dalena River and the damage received in transit in consequence of the climate. The result was a shortage of flour on the coast, and the law had to be altered and the duty reduced enough to allow the coast to continue the importation of wheat from the United States for local milling into flour. From time to time there have been movements to secure the re- modeling of the present system, but the Government has been reluctant to undertake this. It is argued that, if the ad valorem system were to be adopted, skilled and experienced appraisers would be necessary (and that the country could not supply them) , that the cost of collection and administration would be increased, and that 37558 21 21 321 322 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. evasion of proper payment would be more usual than is now the case. The only ad valorem duty now in force is on precious stones, which pay 10 per cent. All other goods are arranged into 16 groups, or classes, the duties ranging from the minimum of 1 cent per 'kilo (gross weight), as on machinery. Canned goods are practically excluded, as are also many other lines. Cheap shoes pay the same rate as the best Quality, and similar conditions exist in other classes. Many articles are admitted free of duty, such as railway equipment and materials, instruction equipments, books for schools, etc., construction materials, live animals for breeding purposes, etc. Invoice and technical requirements are complicated and difficult to follow and understand, while violations result in fines, more or less heavy. There is a system in vogue of paying the denouncer of a fraud (or mistake) one-half of the proceeds in duties and in fines, and the result is that advantage is taken of every small oversight and mistake in connection with the declaration of imports. Expor- ters are best advised to follow strictly the instructions of the Colom- bian customer regarding declarations of goods in consular invoices; they make a close study of all classifications, and in the event of disputes are very often able to secure a more favorable classification and ruling by the officials at the port of entry. They possess the latest rulings and are best equipped to take the responsibility. The duties being so high, it is vitally essential that merchants should study import tariffs in Colombia in order to price goods properly and meet competition. Their instructions as to invoicing should always be followed by exporters. There are surtaxes as follows: 2 per cent for the conversion fund, 5 per cent for roads, 3 per cent for consular invoices (parcel post is 5 per cent) . Some ports have different schedules. Tumaco pays only 50 per cent of the original rates. Treasury bonds are accepted as part payment of import duties. These bonds sell at as much as 30 per cent below par and are bought up by the merchants and local banks and used in the payment of import duties. Banks buy these bonds, which have been issued in payment of Government salaries, obligations for subsidies of railways, etc., and sell them to the merchants, making a profit on the trans- action. Rates of exchange vary according to tne local supply and demand. Merchants are able to effect a considerable saving in this manner. In 1914 customs duties were reduced to some extent by new, re- formed laws. In an analysis of the reductions it was found that dur- ing a period of two years the average value per 100 kilos of imported merchandise under the old law was $17.59 and under the new law $16.74. The average import duty collected under the old tariff was $7.36 per 100 kilos and under the new rates $6.83 a reduction of 7.2 per cent in the average duty collected on all imports. This reduction in revenue was, however, more than compensated by increased rates on oils and greases, cotton goods, flour, etc. The average duty on all imports amounts to 42 per cent of the value. It is also noticed that imports have decreased in the case of the more expensive articles, which pay lower duties in proportion to their value, and that most imports have risen in value in the countries CUSTOMS TARIFF AND IMPORT DUTIES. 323 of origin, indicating that, if prices had remained the same, there would have been an even greater reduction in the duty collected. As all import duties are assessed on the gross weight of the entire package, every pound of unnecessary weight used in packing con- tainers, wrapping, etc., means a dead loss to the buyer, or an increase in the cost price. In the second place, it must be borne in mind that when a package contains articles that pay different rates of duty being what is called a "mixed" package the whole package is taxed at the rate of the highest-rated article contained, unless the net weight of each different article is stated in the consular invoice and the weight of the container and packing is given separately to make the total gross weight. The best plan is to pack separately articles taking a different rate of import duty. DEVELOPMENT OF PRESENT TARIFF SYSTEM. The present customs tariff of Colombia was adopted December 6, 1913. Before that time the tariff divided imports into 16 classes, on each of which a specific rate of duty was provided. The new tariff definitely incorporated the increases made by the surtax of 70 per cent imposed in 1905. It contained a number of other increased rates of duty, especially on rice, tea, flour, wheat, butter, sewing machines, laboratory instruments, and ready-made clothing, on all of which the rates were advanced by 20 to 100 per cent. Separate specific rates of duty are prescribed for each article, the articles being arranged under 26 groups, with subdivisions. Articles not specified in the tariff are cuitiable at 60 per cent ad valorem. This duty is not to be applied, however, on articles that the customs board (Jurado de A.duanas) decides may fairly be as- similated to articles that are specified in the tariff. Colombia has a general law providing that changes in the tariff rates shall be made gradually. Accordingly the increases in the rates of duty made by the tariff adopted December 6, 1913, were applied in three monthly installments, beginning one month after the approval of the law, and hence came into full force on March 6, 1914. Reductions in duty are postponed three months, and then are divided into 10 equal installments. Accordingly, on March 6, 1914, one-tenth of the difference between the old and the new rate was taken off, and a similar reduction was made each succeeding month until the lower rate as prescribed by the new tariff became fully effective on December 6, 1914, exactly one year after the approval of the law. A number of important changes in the classifications and import duties fixed by the tariff law of 1913 are contained in a law of December 19, 1916. In 1919 the Colombian Congress increased the customs duties on certain imports. CUSTOMS DUTIES AND CHARGES. Aside from the tariff duties proper, there is a surtax of 2 per cent of the duties and various additional charges as follows: Unloading and transfer to warehouse, warehouse charge (if goods are not re- 324 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. moved within 15 days), stamp taxes on manifests and consular invoices, brokerage charges, internal-revenue taxes on certain articles, and a river tax for goods transported on the Magdalena River to the interior of Colombia. SURTAX. Besides the surtax of 70 per cent of the ordinary duties, which, being incorporated in the rate prescribed by the law of 1913, was naturally discontinued as a separate charge, a surtax of 2 per cent of the duties is still in force. CUSTOMS CHARGES. A vessel entering a Colombian port is subject to tonnage tax, lighthouse dues, and consular fees on the manifest. While the light- house dues are based on the registered tonnage, the tonnage tax is fixed at $2 per 1,000 kilos of goods unloaded at the Colombian port, and the consular fees amount to one-eighth of 1 per cent of the value declared in the consular manifest. While all these taxes are levied on the vessel, they undoubtedly influence freight rates, and thus, indirectly, affect the importer. The importer must pay directly a stamp tax on the manifest that he presents. The document must be in quadruplicate, and the forms themselves cost 10 cents a set. To three of these copies stamps to the amount of 80 cents must be attached, so that the total outlay in con- nection with the importer's manifest is $2.50. Forty cents in stamps must also be attached to the consular invoice which accompanies the manifest. At Cartagena the same company that has the, wharf concession operates the railway between the wharf and the city. A charge of SI. 40 per ton is made for the unloading and transfer of merchandise from the ship to the railway warehouse in the city. Customs storage is not obligatory. No charge is made if goods are removed within a period fixed by the collector of customs not to exceed 15 days. If goods are not removed within the time set, the following storage charges are collected : For each of the first 30 days, 2 cents per package not exceeding 75 kilos in weight; for each of the next 90 days, 5 cents per package; and thereafter 10 cents a day per package until a year from the date of importation of the goods. If goods are not removed within that time, they are put up for sale at public auction. The regular customs storage charges apply only to goods deposited before the payment of duties. According to a decree of December 3, 1917, duty-paid goods may remain in the customs warehouse for a reasonable tune, not to exceed 15 days, after which storage will be charged. The charge for such storage was fixed, by a decree of March 11, 1918, at $0.20 per metric ton for each day (above the allotted tune) during which the goods remain in storage. Customs brokers usually charge from $3 to $5 for each shipment, and in addition there is a charge of 10 cents a package for opening and examining the goods in the customhouse. CUSTOMS TARIFF AND IMPORT DUTIES. 325 CUSTOMS PROCEDURE. CONSULAR REQUIREMENTS. For a discussion of consular requirements, the reader is referred to page 375. NECESSITY OF CARE IN FILLING OUT INVOICES. Consul Isaac A. Manning emphasizes strongly the need for extreme care in filling out invoices of merchandise intended for the Republic of Colombia : "When merchandise imported into Colombia has been wrongly manifested in order to evade the payment of the customs duty rightly due, such merchandise can not be abandoned in the customhouse by the importer. The importer is held liable for the payment of the duties on such merchandise at the rate rightly applicable to it, and is further liable to a fine. If the importer, in view of the discovery of fraud, should at- tempt to abandon the goods, they are sold at auction and it the amount of duty is not realized from such sale, restitution for the amount remaining due must be made by the owner of the goods. "TO ORDER" SHIPMENTS, i The Colombian customs law authorizes the clearance of merchan- dise from the customhouse on presentation of the certified consular invoice, together with four copies of the customhouse manifest, this latter to be made and signed by the importer or his agent; but it does not require the presentation of a bill of lading for this purpose. The clearance must be effected within five days from receipt 01 the shipment at the eustomhouse. Should the importer fail to receive his copy of the invoice, he may ask the customs collector to issue an extra copy of the certified in- voice, for which a small fee is charged for stamped paper. Consignments "to order" are not recognized by Colombian fiscal laws^ and the only manner in which such shipments could be made would be by consigning the shipment, under previous agreement with the bank or import agents and the importer, to a bank or import agent. This is done only on rare occasions in this country. The usual custom among European and American exporters is to ship the merchandise direct to the importer and, if a draft is to be pre- sented for acceptance or payment on delivery at Barranquilla, this is sent through some bank. The house on which the draft is drawn must accept or pay the draft in accordance with its contract with the exporter, or find its credit damaged by failure to do so. American exporters who are doing large business with Colombia find this regulation acceptable, if not entirely satisfactory, and con- tinue doing profitable business with Colombian merchants on the basis mentioned. While it might be possible to bring about an amendment to the customs law, so as to provide for the requirement of the certified bill of lading before delivery of the goods, this might result in other complications, even to the confiscation of the merchandise by the Government for failure to clear same from the customhouse within the five days specified. Much of the merchandise intended for the 1 By Isaac Manning, American consul. 326 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. interior of the country must be cleared by customhouse brokers be- fore mail leaves Barranquilla for the interior, and if clearance of merchandise for Bogota or Medellin, etc., had to await the accept- ance of a draft by the importer in those places, it would mean a delay of atf least two months in many cases for the merchandise to reacn him. According to article 12 of the customs regulations, enacted Decem- ber 9, 1915, it is provided that the shipper who is found to have committed fraudulent declarations in invoices shall thereafter be prohibited from making any declarations regarding shipments to Colombia, and therefore consuls shall withhold certification from any invoices that such shipper may thereafter present. MANIFESTS. Within 24 hours after the entrance of a vessel in a Colombian port the captain or consignee of the vessel shall present a manifest to the collector of customs and request a permit to unload. Within 48 hours thereafter that is, 72 hours after the arrival of the vessel the importer must present a manifest (or entry) in quadruplicate, " which shall contain the same data as the consular invoice." If entry is not made within the 72 hours allowed, a fine of 10 per cent of the duties is imposed. After the payment of this fine, however, goods are allowed to remain in customs warehouse, at least at Cartagena, for one year without additional charge. On each of three copies of the manifest an 80-cent stamp must be affixed, and on the accompanying consular invoice a stamp of 40 cents. wSince the set of documents costs 10 cents, the entire expense connected with the declaration is $2.90. No other document is required to make entry of goods. The presentation of the bill of lading is not requisite, the consular invoice being deemed sufficient proof of ownership. Even if the consular in- voice has not been received by the importer he may obtain, by an expenditure of $1 in stamped paper and repayment of the cost of preparing the document, a copy ot the invoice that has been trans- mitted by the consul to the customhouse. If no invoice has been received either by the collector or importer, a fine of 25 per cent of the amount of duties on the entire shipment must be paid. The manifest not only serves to register the transfer of the goods from the vessel to the custody of the customs, but likewise is the document used in the appraisement of the goods and the liquidation of the duties. APPRAISEMENT AND FINES. If the manifest is found to conform to the consular invoice, the col- lector of customs designates an appraiser, a weigher, and one other employee to make the examination, and the appraiser notes on the manifest any discrepancy. If the actual weignt of goods is found to be less than that recorded on the manifest, and the difference does not exceed 15 per cent, the duty is assessed on the actual weight, not on the (higher) weight declared. If the declared weight exceeds the actual weight by more than 15 per cent, or if the actual weight exceeds the declared weight CUSTOMS TARIFF AND IMPORT DUTIES. 327 by more than 10 per cent, a fine is imposed equal to 20 per cent of the duties on the difference. If on examination it is found that the articles in the shipment are subject to higher rates of duty than are declared in the invoice, the importer must pay, besides the regular duties on the goods found by the appraiser, a fine equal to double the difference in duty. If it is found that the description of the goods is incorrect in more than two packages, all the packages in the shipment must be opened, and if the false declaration affects more than five packages in the shipment, the regular fine is increased by one-half. If the invoice contains goods dutiable at different rates it must show the weight of each article separately. Otherwise each pack- age covered by the invoice must be opened and an increase of 5 per cent of the duties is applied. The customs regulations in each case refer to differences between the "invoice" and the findings of the appraiser. This brings out clearly the exact conformity that is necessary between the invoice and the manifest. LIQUIDATION AND PAYMENT OF DUTIES. Upon the completion of the appraisement the liquidator calculates on the fourth copy of the manifest all import duties and other cus- toms charges. If more than one fine has been incurred each is cal- culated on the amount of duties involved ; the first fine is not added to the duties to serve as a basis for calculating a subsequent fine. The manifest on which the duties have been liquidated is handed over to the importer, who, upon payment, obtains a receipt from the cashier on the manifest. Importers having any considerable dealings with the customs usually give a time bond, under which they are permitted to post- pone payment of duties for 15 days. In the absence of such a bond duties must be paid in cash. APPEALS. Appeals may be taken within six days after liquidation of duties to a customs board (Jurado de Aduanas), consisting of the Minister of Finance, another Government official, and a man in private life elected every two years by the House of Representatives. The im- porter is required to make a deposit of the liquidated amount of duties. The functions of the board are to decide appeals from fines imposed by collectors of customs, to determine matters of classification which snail be applied at all customhouses until superseded by an act of Congress, and to make an annual report to Congress on all ques- tions of classification that have been decided. , EXEMPTION FROM DUTY. Special regulations are in force to insure the strict application of laws or decrees according exemptions from duty or reduced rates of duty. To obtain admission of mining supplies, for example, at the reduced rate applied in that case, it is necessary to produce proof in the form of a certificate from the governor of the Department 328 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. in which the mine is located, stating that the supplies are intended exclusively for the operation of the mine. Specially exempted articles must always be invoiced separately from articles suhject to duty. Such articles, if imported by parcel post, lose their right to free entry. TEMPORARY ADMISSION. Clothing, machinery, musical instruments, and other properties of musical or theatrical companies may be imported free under bond upon presentation of an invoice giving a complete list of the articles. Snould any of the articles entered be missing at the time of reexpor- tation the corresponding import duty must be collected. Somewhat similar regulations apply to the free admission of scientific instruments imported by exploring or scientific expeditions. In order to obtain their free admission, official credentials must be presented to the Minister of Foreign Affairs of Colombia, and infor- mation in- regard to the proposed itinerary, as well as any other data that may be requested, must be furnished to the Government. The way to obtain free admission of samples is indicated on page 390. PARCEL-POST IMPORTS. Imports by parcel post should be accompanied by an invoice, which, however, need not be certified by the Colombian consul. On all such imports a surtax of 5 per cent ad valorem is imposed in place of the consular fee levied on imports shipped by freight. This tax, ^like the regular import duties, is calculated on the invoiced value of the articles imported, exclusive of transportation and similar charges. If the addressee wishes immediate delivery of goods received by parcel post, but is unable to present the invoice oecause of loss or delay, the value is fixed by appraisement. After payment of the 5 per cent tax no correction will be made if the importer should later present an invoice showing a lower value than that on which the tax was based. Gold com, for which no consular fee is prescribed when shipped through ordinary commercial channels, is likewise exempt from the 5 per cent surtax when imported by parcel post. Imports by parcel post are uniformly dutiable according to the regular tariff ; the reduction allowed on imports through commercial channels entered at certain ports is no longer extended to imports by parcel post. It articles dutiable at different tariff rates are mailed in the same parcel they are all dutiable at the rate applicable to the article paying the highest rate of import duty. Only samples of no commercial value may be admitted free of customs duties when imported through the mail. Single gloves, single stockings, and single shirt cuffs, unless mutilated so as to render them unfit for use, are explicitly excluded from free entry. This ruling was made because of the claim that certain importers were seeking to evade the payment of customs duties by importing such articles in different shipments. The Government has also decided that articles for which a special exemption from duty has been granted lose that privilege if im- ported through the mail. The special case on which the decision CUSTOMS TARIFF AND IMPORT DUTIES. 329 was rendered had to do with the importation of supplies, implements, and sundries for use in a match factory, to which special exemption from customs duties had been granted. The Minister of Finance decided that free importation should be allowed only on goods im- ported through the customhouse, since customs officials alone were in a position to apply strictly the special regulations governing the remission of duty. The ruling has bearing on the importation of material by railroad, navigation, and manufacturing companies to which special exemption from duty has been accorded, and duty is therefore payable at the regular rate unless the importation is made through the customhouse. INTERNAL REVENUE AND RIVER TAX. In addition to import duties and customs charges, certain internal taxes are imposed on imported tobacco, beverages, perfumery, and playing cards. The following is a complete list of the internal taxes, which are levied on gross weight and paid by means of stamps affixed to the containers: [Colombian dollar= $0.9733.] Articles. Colom- bian dollars. Tobacco: Leaf, smoking, or chewing, imported per kilo.. Cigarettes, imported or containing imported tobacco- Pet package not exceeding 30 grams per package. . For each additional 15 grams or fraction thereof do Cigars, imported or made of imported tobacco , per kilo. . Imported liquors: Brandy, whisky, gin, rum, and other distilled liquors, containing more than 22 per cent of alcohol Per bottle not exceeding 200 grams per bottle. . For each additional 200 grams or fraction thereof do Imported wines: Red or white, in pipes, casks, or demijohns Containing not more than 15 per cent of alcohol per kilo. . Containing more than 15 and not more than 22 per cent of alcohol do Full-bodied wines, red, such as port, muscatel, ma'.aga, sherry, and vermouth do Sparkling wines, containing not more than 22 per cent of alcohol Red do White or yellow do Champagne " per liter. . Imported beer per kilo. . Fermented extracts for the manufacture of beer do Ginger ale, cider, and similar fermented beverages do. . Perfumery containing alcohol, imported or domestic, including cosmetics, toi'et powders and waters and dentriflces, of a retail price per kilo (including container) Not more than 10 pesos per kilo. . More than 10 and not more than 50 pesos 1 do More than 50 pesos 1 do Playing cards, in packs not exceeding 52 cards per pack. . 0.80 .02 .01 1.00 .10 .10 .02 .05 .05 .10 .20 1.00 .05 .02 .10 .50 2.50 5.00 .20 Perfumed soap is not subject to these duties. On shipments destined to points in the interior of Colombia trans- ported on the navigable rivers a "river tax" is imposed. The rates now in force, fixed by decree of December 4, 1914, are much higher than those previously applied. On most imports the current rate is $4 per metric ton, and on exports, except ivory nuts, construction and dye woods, and agave, palms, and similar products for the manu- facture of cloth or cordage, $1.60 per metric ton. The increased rate affects some of the principal exports of the Magdalena Basin, such 330 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. as coffee, hides, Panama hats, medicinal plants, and asphalt. In view of the increase of the river tax and the fact that customs duties in Colombia are collected on gross weight, shippers to the interior of Colombia will see the advantage of combining lightness and strength in the packing of their merchandise. Upon the abolition of the old salt monopoly consumption duties were imposed on salt produced by private concerns ranging from 25 to 45 cents per arroba (25.35 pounds), according to quality. Salt intended for export was exempted from this tax. TRADE-MARKS AND PATENTS. The importance of the trade-mark in Colombian trade has been pointed out. Care should be taken to register trade-marks, and this should be done before and not after starting to export. The regula- tions for Colombia are given below: Office of registration. Ministerio de Agricultura y Comercio, Bogota. Duration.' Twenty years; renewable. .Fees. Registration of mark, 25 Colombian dollars; renewal, 30 dollars; legalization and translation of power of attorney, 4.50 dollars; publication of application and certi- ficate, 5 dollars. (Colombian dollar=$0.9733 United States currency.) Formalities of registration. Application must be made on stamped paper of 20 centavos, and should state the distinctive mark adopted, the products to be marked, the place of manufacture, and the name and address of the applicant. There should also be presented at least three copies of the mark, each bearing a stamp of 20 centavos, and an electrotype not over 12 by 12 centimeters, and a receipt showing that the fee has been paid. The application must be published three times in the official gazette, and after CO days the mark may be registered. The certificate of registration must also be published three times. If registration is denied, one-half the fee is returned. There are three classes of marks manufacture, commerce, and agriculture but a mark regis- tered in one class may not be registered in another class by a different person. Registration should be in the maker's own name and not in that of the agent. So long as an exclusive agency continues there are usually no difficulties, but if the agency is changed or different distributing arrangements made, the principal may find that the former agent has it in his power to prevent the importation of the trade-marked goods except wnen consigned to him and under such terms as he may dictate. In a trade-mark for the Colombian trade an outline of some well- known animal or bird, such as the crocodile, frog, snake, or parrot, or of a palm, canoe, or other object familiar in Colombia, is better than any geometrical design, no matter how simple in character. The Colombian laws guarantee the right of property over patents of inventions. Every citizen or foreigner who invents or perfects a machine, mechanical device, combination, or a new method or process of useful application in industry, art, or science, or any product of manufacture or industrial product, may obtain from the Government a patent which insures to the inventor the rights for a term of 20 years either for himself or for whoever may represent his rights to the exclusive manufacture, sale, and use of his invention or improve- ment. Inventors who have already obtained patents in foreign countries and who make application for patent rights in Colombia are granted the patent-provided the thing invented or discovered has not become public. Wnen the patent has been granted for the invention or article already patented in foreign countries, the privilege conceded by the Colombian Government lapses as soon as the r>eriod for which the foreign patent was obtained expires. The application for patent rights must be made to the Executive, and in it must be stated, in a specific manner, in what the patent may consist and also the period for which the patent is asked. After the patent is obtained, any forgery or any act committed against the 331 332 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. property of the articles or inventions patented, constitutes a mis- demeanor which the law punishes accordingly and which gives the patentee ground for claiming and obtaining damages. (See Law No. 35 of 1869 and Decree No. 670 of 1907.) The protection of trade-marks relating to commerce, industry, and agriculture is regulated by Law No. 1 10 of 1914. In accordance with this law, any person, a citizen or legal resident, a Colombian or for- eigner, has the right to distinguish his articles of manufacture, com- merce, or agriculture by means of a special mark and to register that mark. There are two kinds of trade-marks (1) "national," which are those that are filed or registered in Colombia first; and (2) foreign, which are those registered in Colombia after having been registered in a foreign country first. Both enjoy the same privileges. Any denomination, mark, or sign that distinguishes any industrial or agricultural product may be used as a trade-mark; but any sign or marks similar to one already registered or used in trade and, in general, any sign that may tend to create confusion with articles previously registered or used can not be granted the usual protection. The ownership of a trade-mark is established by the title issued by the Government. The mark must be used on the article to protect if, and if it is not so used within two years after being granted, or if its use is suspended during one year, the right lapses. But in the case of a foreign trade-mark, the immediate importation into Colombia of the article protected is not necessary to preserve the right, which will not lapse provided the same mark is in use abroad to protect the article within the time specified above (two years). The application for registration of trade-marks is addressed to the Minister of Agriculture and Commerce, on stamped paper and with all the specifications that distinguish the mark in question. Registration can be made for 20 years, and may be renewed by application for an additional 20 years. 'The Colombian law permits the inheritance and the transfer of trade-marks. After registration of trademarks, the owner has the right to prosecute in the courts all those who may forge the mark or infringe upon his interest; the prosecution may be for damages in the form of a criminal suit to have the infringer punished according to the Penal Code. ' Any act of bad faith that may tend to create confusion between the articles of two manufacturers, merchants, or agriculturists, or that may, without creating confusion, tend to discredit a rival in the market, is considered an act of unfair competition and as such is punishable by the Colombian laws. When evidence of unfair competition has been established, the person prejudiced is entitled to obtain damages, which are settled in the courts of common law. BANKS AND BANKING. LIST OF NATIVE AND FOREIGN BANKS. A list of the banks in Colombia is given below. The capital given is as of 1915, and later particulars, including recent increases in capitalization, etc., will be found in certain cases under the heading " Banks and banking" in the accounts of the several commercial dis- tricts, beginning on page 185. NATIVE BANKS. [Colombian dollar=S0.9733.] Name of bank. Location. Capital. Banco Central Bogota . Colombian dollars. 2,300,000 780,000 500,000 600,000 1,000,000 750.000 200,000 500,000 200,000 100,000 180,000 250,000 140,000 400,000 100,000 50,000 40,000 Private. 55,000 500,000 500,000 2,000,000 150,000 Banco de Colombia . .do Banco de Bogota ...do Banco Hipotecario (Mortgage Bank) do Banco de Sucre Medellin Banco Aleman-Antioqueno (Colombian and German) ... ...do Banco Republicano . . .do Banco de Bolivar Cartagena Banco Uni6n .do Banco de Cartagena . . .do Banco Comercial Barranquilla Cr^dito Mercantil do Banco de Ruiz Manizalos Banco de Caldas. . . . do Banco de Oriente Rio Negro Banco de Sonson Sonson, Antioquia Banco de Boyaca Tunia Banco de Giraldo y Garces .... Call Banco de Popayan Popayan Banco del Sur Pasto Banco de Mutualidad . . Rnnaramanf',1 . Banco Dugand (Colombian and French) .... Barranquilla Banco de Cucuta (Colombian and German) . Cucuta NOTE. Nearly all of the above-listed native banks increased tljeir capitalization during 1919. For more detailed statement s of balances, etc., see "Banks and banking ' in the several district sections (beginning on p. 185). FOREIGN BANKS IN COLOMBIA. Name of bank. Location of branches. Year es- tablished. International Banking Corporation (National City Bank Medollin 1912 of New York). /Bogota 1920 \Barranquilla Bogota 1920 1919 Barranquilla . . 1918 Cartagena 1918 Medellin 1919 Manizales . . 1919 Corporation) . Armenia 1919 Cali 1919 Girardot 1919 Honda 1919 Bucaramanga 1919 American Foreign Banking Corporation New York Cali 1919 All-America Banking Corporation (Royal Bank of Can- Cartagena 1918 ada). Commercial Bank of Spanish America Medell'n 1912 333 334 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. COMMERCIAL EFFECT OF AMERICAN BRANCH BANKS IN COLOMBIA. Progress in the establishment of American branch banks through- out Latin America has been continuous during the past few years, and further developments along these lines are desirable in order that additional accommodation to trade may be furnished and existing exchange relations enlarged. In three ways the American foreign banks are laying the foundation for the expansion and financing of the foreign trade of the United States (1) by the direct establish- ment of branches, (2) by the willingness of the banking community to undertake and organize foreign banking corporations, and (3) by the creation of discount companies dealing in paper growing out of the foreign business. Without the aid of tne branch banks in Colombia and the system of discounts at home, it would be impossible for exporters to finance the en tire volume of trade now on hand, and the branch banks are also helping their local merchants with additional commercial loans and information and are materially assisting them in enlarging their business all these activities being of direct benefit to American foreign trade. Also, one of the most valuable services rendered by these branches to American exporters is in the furnish- ing of more and more accurate credit information, many large Amer- ican exporters having reported this service as being extremely helpful and entirely adequate. In every country and Colombia is no exception to the rule credit forms the basis of all commercial transactions, and on this foundation is built the prosperity of the country. FORMER BANKING CONDITIONS AND RECENT PROGRESS. The financial history of Colombia has already been summarized under "National finances" (p. 55). The history of banking in Colombia has been rather a stormy one and involved in the several domestic disturbances and financial crises. Great strides have been made during the past 15 years of domestic peace and prosperity; the commerce of the country has increased rapidly, doubling since 1906, and the banks of the country have taken their part in this advance and received their share of the benefits. During 1919 the capitali- zation of nearly all the native banks was heavily increased, large dividends were paid to stockholders, and the reserve funds were increased. BANKING LAWS OF COLOMBIA. The issuance of paper money is exclusively a Government function (since 1887), so that the only banks allowed by law are banks of de- posit and discount and mortgage banks. The laws governing banks of deposit and discount are No. 57 and No. 153 of 1887 and No. 77 of 1890. In accordance with the pro- visions of these laws and of article 120 of the Constitution, the Gov- ernment has the right of inspection of all credit establishments. Before establishing such a bank it is necessary to obtain the authoriza- tion of the Government (see art. 54, Law No. 57 of 1887). Such institutions may fix their own rates of interest, discounts, and com- missions, and change the same at will provided they give notice in the newspapers 90 days in advance of the date when such change of rates is to become effective. These banks are also authorized to loan BANKS AND BANKING. 336 money on real estate. They are obliged to keep a cash reserve amounting to at least 20 per cent of the value of their deposits and accounts current (see arts. 1 to 4 of law No. 77 of 1890). Mortgage banks are subject to law No. 24 of April 17, 1905. This law was enacted for the exclusive purpose of encouraging the estab- lishment of mortgage banks in the country. In accordance with the provisions of this law, mortgage banks may be established purely as such, but the banks of deposit may also establish mortgage Jbranches or departments. In either case they are entitled to the privilege of issuing mortgage certificates ("cedillas hipotecarias ") and to loan money at long terms, the loans to be paid in installments, or annual payments with which the certificates issued are amortized both principal and interest. In order to establish a mortgage bank, it is necessary to make a con- tract with the Government whereby the founder of the bank shall obligate himself: (1) To present to the Government an authentic copy of the by-laws and of any amendments made thereto. (2) To advise the Government of all appointments of officers of the bank. (3) To publish a monthly statement or report, being an authentic copy taken from the books. (4) To allow the Government examiners access to the books once a month, at least, in order to ascertain that mortgage certificates have not been issued in excess of the value of the mortgage loans. On the other hand, the Government grants to the mortgage banks: (a) The right to issue mortgage certificates or credit notes to pay, payable to the bearer ("cedulas hipotecarias"). (6) The validity in all courts of law of said certificates, even when not issued on official stamped paper, and their exemption from the revenue stamp tax. (c) A military or police squad for protection in case of need, if asked for by the president of the bank, at his discretion. (d) That in all judgments in favor of the bank arising from debts guaranteed by special mortgage, the only exceptions admitted are the pleas that the payment was duly effected or that there is an error in the account. The former plea can be proved only by the presentation of the voucher attesting the payment to have been made. (?) That in case of creditors' meetings, the judgments in favor of the mortgage banks shall be kept out as preferential claims and the other creditors shall be paid pro rata out of the balance left in excess of the value of the properties mortgaged to the bank, once the bank has been paid in full (i. e., principal, interest, and costs). Besides the foregoing advantages, it is also specified that no matter where the real estate be located, legal proceedings may be instituted and carried out at the place where the bank is domiciled. Mortgage banks may handle loans and are also authorized: To make loans on special mortgages; to accept annuities for the consti- tution of capital funds in favor of the depositors; to accept deposits for the establishment of annuities in favor of depositors; to issue bonds or notes to bearer or to persons named, guaranteed by the mortgage titles obtained by the bank; to buy, sell, and lease real estate properties which the bank may receive in payment of its claims. 336 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The sinking fund of a mortgage bank must be at least 10 per cent of the amount of the profits declared as dividends to the stockholders of record. The rate of interest, the commissions, the amount of amortization, and the time of loans are left to the discretion of tho Dank's officers; but the total value of the bonds or notes in circula- tion just represents the total value or amount of the mortgage loans that is, the effective volume of its transactions and the capital. The maximum face value of each bond or mortgage note can not exceed 100 Colombian gold dollars. The concession for the bank may run from 40 to 100 years, and, the contract once legalized, the Government is not supposed to change the terms of the concession ; but in case it does so, the bank in the case is entitled to damages in the amount of one-half of its capital. According to article 54 of Law No. 57 of 1887, ''banks already es- tablished are entitled to continue as authorized, under the conditions imposed by the law. In order to establish new banks the authoriza- tion of the Government is necessary." (See " Commercial Laws of the World," Vol. II, pp. 216 and 184.) In 1916 the Government appointed a committee to inves tigate and report on savings banks for the Republic. The Compania Colom- biana de Mutualidad of Bucaramanga is the first mutual savings, building, and loan bank of the country (see p. 288). The report of the Minister of Hacienda for 1916 contained the rec- ommendation that the Canadian system of banking be adopted for Colombia. OPPORTUNITY FOR NEW BANK AT TUMACO. All American branch banks established in Colombia reported a very satisfactory business for 191Q, and the intention of opening additional branches in the near future is stated. The port of Tumaco is badly in need of a bank. At present it is dependent upon Cali, and coastwise steamer service does not provide sufficiently rapid communication for business needs. Tumaco has a foreign trade of more than $2,000,000 annually, and this trade is in- creasing as the traffic from the Pasto region is being diverted from Ecuador to the Patia River and Tumaco. PRACTICE OF HANDLING BILLS OF EXCHANGE WITH COLOMBIA. 1 Formerly most exports from Colombia to the United States were financed by 30, 60, and 90 day drafts drawn by the exporter (by arrangement with the American consignee), generally for two-thirds of the market value of the merchandise at time of shipment, but dur- ing recent years American banks that have been established in Colombia have handled a growing proportion of the export business to the United States. The producer turns over his coffee or hides to the bank for export, the bank recognizes a credit in his favor for two- thirds of the market value, and when the goods are sold credits him with the balance, less expenses, interest, commission, and exchange. The terms on which these credits are generally arranged, both locally and in New York, are 2^ per cent commission plus interest, the latter item being 12 per cent for local transactions. More than 80 per cent of Colombia's exports go to the United States; consequently foreign exchange business is much greater with this country than with Europe, and most exporters' bills are drawn in American currency. Previous to the entry of the United States into the war the rates of exchange on New York were for several years close to par i. e., $1.03 plus, Colombian, was equal to $1 United States currency, the Colombian dollar being exactly one-fifth of the English pound sterling. In 1917 rates varied from 103 to 108. In 1918 they fell as low as 80 on account of the impossibility of obtaining gold or merchandise from the United States to liquidate trade balances. During 1919 they gradually went from 90 up to 98. Bills on Europe generally follow New York exchange quotations, merely local factors rarely having any influence. Bills on the United States are all against New York and are practically all negotiated through banks in Barranquilla. They are principally drawn from Barranquilla, Bogota, and Medellin. Ameri- can exchange is quoted daily by all the banks, most of which are in constant cable communication with New York. Sometimes the rates are published in the daily newspapers or placed on bulletin boards in the banking office. They are generally based on supply and de- mand; but other factors, such as exchange gambling, important political news, shipping facilities, and gold shipments frequently intervene to raise or lower the market a few points. On account of slow transportation service, rates sometimes vary as much as 2 per cent between different cities of the country. New York dis- count rates are not quoted, local discount rates governing all trans- actions. These rates are generally one-half of 1 per cent plus regu- lar interest for the usance at the rate of 1 per cent per month. The usual commission in Barranquilla for collecting all local items, either with or without documents, is one-half of 1 per cent. It costs local banks from 1 to H per cent to collect items on interior points, and in such cases this charge is added to their commission. 1 This section is by Consul C. E. Guyant, of Barranquilla. 37558 21 22 337 838 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The stamp tax provided by law for drafts is 4 cents per $100, but this is generally disregarded. In the rare instances in which stamps are used the drawee is supposed to pay the tax, but when he objects as he generally does the Dank has to pay it. It is probably lor this reason that most paper bears no stamps. Protest charges are approximately $3 for each protest a charge which the drawee has to assume if he later pays the draft. Protests are very seldom made, and local banks, in taking items for acceptance and collection, reserve the right to protest or not as they see fit, without responsibility on their part. Items may be protested for failure either to accept or to pay, and the protest must be made within 24 hours after the item is clue and before 3 p. m. It may be made before maturity in case of failure or bankruptcy. All protests must be made before a notary public and two witnesses. The holder of a protested item is entitled to legal interest from date of protest until paid. (Colombian Commercial Code, arts. 855-893.) Merchants most generally object to paying collection charges on items drawn on them, though they naturally pay interest on time drafts when so specified. It is customary for the drawer to stand the expense of collection, and it is suggested that, when it is desired that the importer pay these charges, there be inserted on the face of the draft the phrase "With all oanking charges." Barranquilla banks do not guarantee the payment of drafts accepted by approved firms. If the shipping papers contain the drawee's name as consignee there is no advantage in drawing on a firm in Colombia with docu- ments attached to be delivered on acceptance. When merchandise arrives at the port it is delivered to the customhouse by the trans- portation company, and bills of lading are not required by the cus- toms officials as a condition of delivery to consignee. The only document required to obtain the shipment is the Colombian con- sular invoice, and the consignee need not obtain the original invoice attached to the draft held by the bank, but may demand a copy of the invoice received direct by the customhouse from the Colombian consul, which is issued to him on the payment of a small stamp fee and which he can use for making the regular customs entry. This procedure is not usual, but it has been resorted to, and unless a firm's credit is known to be good it is better to consign the merchan- dise to the bank with instructions to indorse the consular invoice to the purchaser upon his accepting the draft. INSURANCE. European houses give close attention to the matter of insurance and to the adjustment of claims for the account of clients, and they take all the necessary steps to secure payment, usually making no charge for this valuable service. American houses have shown less interest in the matter, and European houses are reported to be much more prompt and exact in the settlement of claims. American ex- porters have complained in the past that rates were too high, but this is on account of the fact that ocean freights, customs duties, and inland transportation in Colombia are such that at tunes the first cost of the goods is doubled, as is frequently the case with hard- ware and machinery shipments, and all these elements have to be covered by insurance. There are two Colombian companies, the Compania Colombiana de Seguros, with a capital of 2,000,000 Colombian dollars, and the Compania General de Seguros, with a capital of 300,000 dollars, both with head offices in Bogota and maintaining agencies in all the sea- ports and principal cities of the country. These companies do a feneral insurance business, including fire, marine (river- traffic), "pil- erage, loss-in-transit, partial-damage, etc., and they have been very successful in Colombia, their activities filling a long-felt want in the commerce of the country, more especially in covering loss in ware- house, by theft (pilferage), and during inland transportation. For- warding agents at the seaports (ports of entry) should be instructed to insure in these companies goods ffir inland transportation, when- ever they are not covered through to destination from point of ship- ment, by the exporters. This meets with the universal approval of the Colombian merchants, w r ho are beginning to use this service more and more. During 1919 a combination of 20 of the largest American insurance companies, formed in New York to engage in foreign fire and marine insurance and known as the American Association of Foreign Insur- ance, investigated insurance conditions in Colombia, with the result that agencies have been recommended for the country. It is under- stood that policies will cover all risks right through from point of shipment in the United States to destination in Colombia. This will mean a great help to trade in general. Following is an outline of the procedure for securing admission into Colombia by foreign insurance companies: File one copy of articles of incorporation in Spanish, the translation being verified by a notary whose signature is authenticated by the Colombian consul in New York (or other place of residence of company). This document is filed with the Minister of Foreign Relations at Bogota. Make request to President of Colombia for permit to operate in the Republic and publish extracts of articles of incorporation which may be of interest to the citizens of Colombia, in the Diario Oficial and departmental papers. The actual procedure is to send a Spanish translation of the articles of incorporation to a Bogota attorney and have him take the necessary action. Legal fees and cost of publication are between $150 and $200 for each company. The company can begin 339 340 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. writing business as soon as the papers are filed with the Minister of Foreign Relations and need not wait for the granting of the permit. Each agent must have a power of attorney similar to that granted by the Commercial Union Insurance Co. This power of attorney is registered at the capital at a very small cost, and the cost of the appointment of the original agents can be included in the sum mentioned in the third paragraph. The translation of the power of attorney must be verified and authenticated in the same way as the translation of the articles of incorporation. One copy only is neces- sary for filing with notary in Colombia, a duplicate copy being signed by the agent and returned to the company. ( -ertified copies of this power of attorney are furnished the agent by the Colombian Government (notary) whenever he needs them. COMMERCIAL PRACTICES AND REQUIREMENTS. AGENCIES. In all the commercial centers there are foreigners and native Co- lombians who maintain manufacturers' agencies. A number of these agencies have been long established, handling a few special non- competitive lines (principally European before the war), and they have rendered a very important and valuable service in acting as the direct representatives in their districts of the manufacturers or job- bers. Possibly their greatest service has consisted in their possession of commercial information, credit ratings, and data on market con- ditions, and in their general knowledge of and personal relations with their clientele. Prior to the war a number of American lines and specialties were handled by these agents (not a few of them Germans). Another important duty of the resident agent is that of inspecting damaged or disputed shipments of goods and acting as an arbitrator between the buyer and the seller. Colombian importers like to know that there is, in their own city, a personal representative of the firm with which they place large orders for goods. Personality in business counts for a great deal more in Colombia than in the United States, and an agent who is well liked personally ("simpatico") will usually get the most orders, even in trie face of lower prices and better terms from competitors. When war conditions gave the bulk of Colombia's trade to the United States and old relations with Europe were disrupted to a very great degree, many agents solicited representations of American lines. Many times American exporters made the mistake of appointing one agent to cover the entire country, or gave their agency to a repre- sentative who was already handling a number of lines and was not in a position to devote enough of his time individually to any one of them to secure success. Agents for American houses also com- plained that they were not given proper attention by the home office, that samples were not sent them, that advertising allowances were entirely lacking or were too small, and that cooperation was lacking in all respects. One of the most important services rendered by American salesmen in Colombia is that of the careful selection of agents, one for each commercial district. The appointment of agents by correspondence is, as a rule, very unsatisfactory, unless the applicant is able to present unquestionable proof of his experience, ability, rating, and integrity. As an example of this fact, one may cite the case of an American house exporting a large line of special hardware and tools, whose agent in Bogota was a young Colombian of wealthy and politically influential family. This man was employed during the day in the Government offices, possessed no business experience whatever, and had the agency only as a pastime outside of office hours. Foreign trading companies desiring to maintain resident represen- tation in Colombia at one or more points are not required to incor- 341 342 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. porate by and under the laws of Colombia, the procedure being as follows : It is necessary to file one copy of the articles of incorporation, in Spanish, with the translation verified by a notary whose signature is authenticated by the Colombian consul general in New York (or by the Colombian consul in other place of residence of the company), with the Minister of Foreign Relations in Bogota. The actual pro- cedure is to send a Spanish translation of the articles of incorporation to an attorney of Bogota and have him take the necessary action and legal steps. "Legal fees and cost of publication are between $150 and $200 for each company. The company can begin business as soon as the papers are filed and need not wait for the permit to be issued by the Minister of Foreign Relations. Resident agents must have a power of attorney similar to that granted to the main office in the country. Each of these powers of attorney can be registered at the capital at a very small cost, and the cost of the appointment of the original agents can be included in the sum mentioned . Translations of the power of attorney must be verified and authen- ticated in the same way as the translation of the articles of incorpora- tion. One copy only is necessary for filing with the notary in Colom- bia, a duplicate copy being signed by the agent and returned to the company. Certified copies of this power of attorney are furnished to the agent by the Colombian Government (that is, by the notary), whenever he may need them for the purpose of representation in court or for the appointment of subagents, etc. For an account of the procedure necessary in the case of insurance companies and banks, the reader may be referred to the instructions on page 339, under the heading "Insurance." IMPORTANCE OF EXPORT COMMISSION HOUSES IN COLOMBIAN TRADE. "With the exception of textiles, which form the^chief line of impor- tation into Colombia and which are handled "principally by the large jobbing houses dealing directly with the larger and long-estab- lished importers of Colombia, the great bulk of the trade with Colom- bia is handled by commission houses established in New York and London (and, before the war, in Hamburg). The principal reason for this lies in the "general-store" character of the business of Colombia merchants being at the same time wholesale importers, exporters of the products 01 the country, wholesalers to the interior, and retail merchants, all under one roof. The bulk of business in a given class of merchandise, with the exception of hardware and drugs and medicines, was normally top small to allow of specializa- tion in any one line or even in several lines. The importer of textiles as a main line also bought machetes, barbed wire, paper products, women's and men's wear, chemicals, cement, steel ana iron products, furniture, etc. Under these conditions, and in the absence of direct knowledge of the foreign markets or direct connection with manu- facturers, the easiest way was to place all orders in the hands of one or two commission houses, which also handled exports of hides, coffee, etc., and ran a current account with the Colombian merchant. This arrangement also suited the manufacturer who did not know the country well and had no credit information. By selling to the COMMERCIAL PRACTICES AND REQUIREMENTS. 343 commission house, which financed all shipments, he eliminated all sales work and credits from his Colombian business. Commission houses handle their trade (1) through direct corre- spondence (the parties being known to each other previously), (2) through resident agents, or (3) in many cases, such as those of the Colombian firms cited above, through branch offices located in the principal commercial centers the last-mentioned method being productive of the best results. DIRECT FACTORY REPRESENTATION. There is one notable exception to the general employment of commission houses as intermediaries that of a large American sewing-machine company which has established offices or agencies in all the larger cities and towns of the country, from which the entire interior is covered by salesmen. Sales of machines are made also on the installment plan. This company formerly sold machines at wholesale to the larger hardware dealers and principal importers of the commercial centers. Recently, also, a large Colombian firm with headquarters in Cartagena (Mogollon y Cia.) has established branch stores in all the principal cities of the country and is dealing in many American spe- cialties, such as phonographs, office furniture and fixtures, type- writers, files, and electrical goods, while the principal line is paper and paper products, stationery, and office supplies. This firm buys directly from manufacturers or jobbers controlling the lines handled, and has obtained many exclusive agencies for these specialties, selling the country at wholesale also. A very large American firm, acting as the exporting medium for a number of allied factories making paper and paper products, printing machinery, and supplies, maintains direct agencies in the country. Ordinary electrical goods are handled by general importers, who carry fixtures and the like, while electrical and other machinery is handled by several large firms that specialize in engineering work of all kinds, having exclusive agencies for the products of the factories represented. GENERAL CONDITIONS AFFECTING TRADE METHODS. It is felt that no detailed discussion of the relative merits and func- tions of the export commission houses, jobbers, agents, etc., is neces- sary here, since this has all been covered in a very thorough manner in Miscellaneous Series No. 81, "Selling in Foreign Markets, published by the Bureau of Foreign and Domestic Commerce. It has beten shown how the bulk of Colombia's trade, both export and import, is in the hands of the commission houses. Recently the country was visited by an increased number of American sales- men, a few of them representing large factories of specialties such as cork and rubber products, and others representing groups of manu- facturers producing such articles as shoes, jewelry, etc.; and all reported excellent business, especially during the middle and latter half of the year 1919. Colombian merchants will nearly always place a small order with a new house, to try it out, and, if the firm is wise, it will pay the most strict attention to that order and see that every- 344 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. thing is right, regardless of the expense involved, since such orders are the best means of securing repeat business. Plans were also under way for the establishment of branch stores and agencies of American export houses representing groups of manu- facturers of allied and non-competitive lines, operating under the new Webb law. An important factor in cementing trade relations with the United States was the increasing number of visits by Colombian merchants to the United States after the war. New business friendships were made and new trade relations initiated which will dp more than any- thing else to promote trade in the future. New lines of American goods were discovered and investigated and new trade channels opened. In the past, while the United States has for a long time been the chief buyer of Colombian exports of coffee, hides, and other products, and also a large purveyor of goods to Colombia, trade bal- ances in New York were used, to a very great extent, to purchase European merchandise textiles in England, fancy goods in France, and hardware and machinery in Germany. The Colombians liked the attention given them bv European exporters; they liked the carefully cultivated personal relations, the methodical system of billing, listing, etc., the liberal credit terms granted, and the proper packing methods employed, and they accuse American exporters of lack of attention to detail, unfamiliarity with Colombian conditions, and bad packing this last matter having been the cause of more trade disputes than any other shortcoming. It must be confessed that, while forced by circumstances to trade with the United States during the war in greater volume than ever before, at the close of hostilities many large importers looked forward to renewing their old relations with Europe, and the heavy buying in the United States after May, 1919, when the Colombian market reacted on account of the coffee situation, was due more to the failure of Europe to readjust itself economically than to better methods on the part of American manufacturers and exporters. The Colombian merchant has, for years, been accustomed to make careful comparison between European and American markets, to figure exchange very closelv. and to take care of a keen competition locally; and these points will have a great deal to do with the future of trade with Colombia. ADVANTAGES OF TRADE WITH UNITED STATES OUTLOOK FOR FUTURE. Setting aside abnormal conditions, the future of trade with Colom- bia depends upon a number of important features. ADVANTAGE OF PROXIMITY. The great advantage lies in the proximity of the two countries. An order placed, by mail, with a European house takes, from the date of order to the final receipt of the goods, six months on an average. A similar order placed in the United States involves only three to six weeks' time. The Colombian importer is fully aware of this ad- vantage, and consequently there are many special lines, which were long purchased in Europe and for which there is a staple demand, that ne would like to be able to obtain, on the same terms, in the United States. COMMERCIAL, PRACTICES AND REQUIREMENTS. 345 NECESSITY FOR ADEQUATE SHIPPING FACILITIEsTND CAREFUL HANDLING OF GOODS. The natural advantage of closer proximity can be made effective commercially only by adequate and rapid ocean steamer service between the two countries and by better delivery service on Colom- bian orders from the factories. The improvement of port facilities in Colombia has begun, and adequate handling facilities will be pro- vided. In this connection it may be mentioned that improvement is needed in the methods of handling ocean freight. No amount of excellent packing will withstand careless handling to and from ship in loading and discharging ocean freight, and, in the past, a large proportion of complaints of bad packing against American manu- facturers can be traced directly to careless handling by steamers. As an example of the harm being done to American trade by careless handling of ocean freight, one may cite the case of a valuable ship- ment of textile machinery to Colombia late in 1918. The buyers of this equipment had found that the American machinery was lighter in weight and more automatic than the available European makes, but, upon its receipt in a generally smashed-up condition, involving months of costly delay and repairs, it was thought that the European machinery would have been better in the long run, since it would have been received in good condition. In this particular case the packing had been done by experts in the packing of machinery for export, and it really left nothing to be desired; the fault was that of the steamship company. STUDY OF SPECIAL NEEDS AND CONDITIONS ATTENTION TO DETAIL. The universal complaint on the part of Colombians against the United States has been that the Americans did not know the country and its commercial needs and conditions. Barranquilla and Carta- gena do not take woolens; Bogota does, but Bogota also takes light- weight goods for tropical wear for distribution in the Magdalena Valley, Tolima, Huila, etc. The tropical part of the country does not want metal buttons or metal fastenings on suspenders, belts, garters, etc., since these rust with the climate and stain the cloth. It is the knowledge of such peculiar conditions as these that has been lacking hitherto. Tariff regulations are varied and sometimes peculiar; these should be studied, and instructions for the declaration of goods shipped to Colombia should be strictly followed. A case in point is that of an order for cotton hosiery, which the American manufacturer filled with a better grade of Lisle, containing a small quantity of silk thread. As a result, the import duty, instead of being 90 cents per kilo (gross weight) , was assessed at $5 per kilo (gross weight) , and the shipment had to be returned. Packing lists should agree with the invoice in serial numbering and contents of packages. Very often a wholesaling importer has had to unpack an entire shipment of goods from a certain house in order to check the shipment with the invoice. Besides, under such circumstances, it is not possible for unbroken packages to be resold and reshipped to buyers from the interior without recounting and repacking all entailing extraordinary expense. 346 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. CREDIT INFORMATION. Another most important factor in the maintenance of American sales to Colombia will be the securing of better credit information. Before the war European houses had their own agents in the country, or branches of commission houses, and credit information was at hand. The acquiring of such data was one of the principal services of the resident agent. Potential distributers of goods were known and were helped with proper credits, established houses were held within reasonable trade limits, etc. The establishment of American branch banks in Colombia is doing a great deal to fill this want for the exporters of the United States, as is also the general policy of these banks in making loans to the merchants themselves rather than to the planters (as was done in the old German system). EDUCATION IN PACKING FOR EXPORT COOPERATION BETWEEN MANUFACTURERS AND EXPORTERS. As long as the bulk of the business of Colombia is in the hands of the commission houses, there should also be a closer cooperation between the manufacturer and the exporter. Taking trie very important item of packing, it may be said that very often the com- mission house does not see or inspect the goods before final shipment to Colombia (an order sent out from New York may be filled in the Middle West and routed via New Orleans) and the factory does not follow packing instructions, with the result that there is a damaged shipment and a claim against the commission house. Many export commission houses have had to establish and maintain repacking departments in New York, involving high rents and two extra han- dlings of merchandise, as well as greater delay and expense under conditions of high labor cost. Colombian importers do not object to packing charges if the goods are properly packed and received in good condition; on the contrary, they are accustomed to, and expect, a reasonable charge for packing, and in many cases goods can be placed in special containers, such as the fiber cases (light and strong) used by the French exporters of millinery, umbrellas, shoes, laces, and the like, which can oe charged for as merchandise and which are sold at a profit by the purchaser after the goods are received. Shoes could be packed (and are packed) in such cases and also in cheap trunks, etc., which form an item of sale and profit for the importer, thereby effecting a saving in the heavy import duties assessed on the gross weight of the package. Cooperation between trie manufacturers and the exporters will eliminate the difficulties complained of and will make the goods cheaper for the purchaser. A step in the right direction has recently been taken by several American firms which have sent trained and experienced investigators to Latin America to report the commercial situation in their par- ticular lines. These men study the markets and report on condi- tions hi each district of the countries visited. Their work is invalu- able. They furnish packing specifications for each district in accord- ance with the transportation demands, and they supply much other vital information upon which a successful future trade can be based. (For further discussion of packing, see Appendix, p. 378.) COMMEKCIAL PRACTICES AND REQUIREMENTS. 347 MARKING OF SAMPLES. In the important line of textiles a great deal of good can be done by proper samples, and considerable improvement is needed in the method of presentation of these samples by American firms. All samples should bear the lot number and the serial number, so that duplicate orders may be placed by cable, using these numbers. Widths and lengths should be given not only in yards and inches but also in the metric equivalents. Weights per yard and meter of length should be given and also weights of pieces and bales, net and gross, so that price comparisons can be made by the interested im- porter. These samples are carefully filed by Colombian merchants for reference, and well-liked lines are pushed as leading and exclusive brands of the house. English piece goods for export are made up of standard lengths and do not vary as do the American. They are also folded in such a manner as to make measuring very easy. Co- lombian firms complain that they can not get enough samples of textiles from American firms. BUYING SEASONS IMPORTANCE OF INFORMATION ON CONDITIONS. Colombia's ability to purchase foreign goods is in direct relation to the coffee crop of the country and its market price. If there is a large crop sold at high prices, foreign buying is brisk; if the crop is small or prices low, the reverse is generally me case. Bills of goods are sold in the interior by the large wholesaling importers at six months' tune, payments being made after the first coffee-picking season of November and December the main season being, how- ever, June, July, and August, when the largest crop is harvested. These latter months are the buying season of the country at large, when stocks of merchandise are put in for the entire season by the smaller dealers of the interior. A salesman visiting the country during the spring months would find business slow, and this would also be the case after August and during the fall months, though, under normal conditions, the bulk of the trade in textiles is usually placed six months in advance, except where certain lines become exhausted. A study of the coffee crop of the country and an advance knowledge of the crop situation will greatly assist in gauging future market conditions in Colombia. There are many ways of securing this information. Commission houses are in touch with their branches and agents in the country. The Colombian Government has recently established a Bureau of Information in the Bush Terminal Building in New York City, which cooperates with the various Colombian consulates. There is also the Bureau of Foreign and Domestic Commerce, of the Department of Commerce of the United States, always in touch with conditions through the American consulates, consular agencies, and trade commissioners. Branches of American banks located in Colombia also know conditions in their territories and are in touch with conditions throughout the country. A study analysis of trade statistics is also very helpful. 348 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. PROTECTION OF WHOLESALING IMPORTERS. One source of complaint in Colombia against American exporters is the alleged failure of American houses to protect the large whole- saling importers, who are the largest buyers of standard and staple merchandise and who justly look upon the small retail trade of their respective districts as part of their legitimate trade field. American representatives of export houses are accused of selling indiscrim- inately to large and small merchants alike at the same price and terms, the salesman first calling on the large importers and then, in order to sell as much as possible in the territory, selling to the small retail dealers thereby injuring the larger importer whose volume of business and capital naturally entitle him to the wholesale territory. European houses exporting to Colombia did not do this and were very careful to protect their large customers in standard and staple lines of merchandise. English textile firms, for example, held a certain pattern and quality of weave exclusively for their large customer in a particular territory; the customer's own brand was put on the goods, and the English house refused to let rival establish- ments in Colombia have this brand. In this manner the importer was able to work up a good and constant trade in this particular line a staple trade from year to year, which cost little for sales expense and which could be estimated far in advance. The result was large orders yearly for these standard and exclusive brands, with no question of change of styles, credits, or market conditions, this arrangement being well suited to both the manufacturer and the importer. Very often the small retail dealers have not sufficient capital to finance large orders of this kind, but place such orders in an endeavor to secure the trade. The result often is that a failure is registered, and the large importer, with capital, buys in the shipment at a low figure. It is the policy of the American banks established in Latin America to protect the merchant and let him take care of the planter and small dealer, rather than to follow the old German system of making loans directly to the planter and of allowing large and long-term credits to small dealers, literally financing them for a year's business. This policy would appear to apply to the business of wholesale exporting, the benefits being unquestioned credits, large annual business from a few good firms, and stable trade vital considerations when the dis- tance is considered. In connection with the subject of protecting the large importers, it should be pointed out that trade conditions are changing rapidly in Colombia. Every year sees hundreds of new firms starting to engage in general merchandising business all over the country. Politicians, doctors, and lawyers engage in trade, and, also, stores are started by many young men who nave served their apprenticeship in the larger houses of the country. The character of tne people is individualistic, making for individual effort on every hand. Talent in abundance is there, but capital is often lacking, and the country itself is very difficult, as has been shown, being broken up into eight or nine different commercial districts by natural barriers, with com- mercial competition very keen in each district. Many people are attracted to trade by the large margin of profit usual in the country, COMMERCIAL PRACTICES AND REQUIREMENTS. 349 but all do not make a success. For these reasons, also, the firm that is represented by its own resident agent or branch office has a great advantage in being able to follow closely all new developments in a particular district. ESSENTIALS FOR RETENTION OF AMERICAN TRADE. The essentials for the retention of American trade in Colombia upon the return of the world to normal conditions may be summarized as follows: 1. Cultivation of the personal relation. Courtesy. Mutual respect. 2. Attention to details, prompt accounting, etc. Correct billing. Agreement of quotations and prices charged. Agreement of packing lists with invoices, etc. Cor- rect declarations of shipments. 3. Proper packing in accordance with climatic and transportation requiremente, always following buyer's instructions. 4. Protection of the large importer (who knows the local dealers better). 5. Study of commercial needs of the country by districts. 6. Study of economic conditions, buying seasons, crops, etc. 7. 'Cooperation between manufacturer and exporter for better packing, etc. 8. Better and more adequate credit information. 9. Following of buyer's instructions on packing, billing, invoicing, routing, insur- ance, etc. 10. Influence on trade of loans and long credits. 11. Progressive advertising. 12. Resident representation. 13. Prompt attention to claims and settlement of disputes. As has been said, the natural tendency of Colombian trade is to return to Europe, this tendency being fostered by the old and long- established trade relations, which were based on mutual under- standing and benefit. There are many advantages to the Colombian merchant in trade with the United States, not the least of these being the closer proximity of the two countries, making possible much more rapid delivery of goods (if adequate tonnage is provided) and thereby partly eliminating the necessity for long-credit terms; but these advantages must be supported by the American exporter as indicated above, or they will be nullified to a very great extent. Colombia's trade is worth while, and will be more worth while as time goes on. The commercial development of the country shows this, imports having increased from about 12,000,000 Colombian dollars in "1906 to 29,000,000 dollars in 1916 (1 dollar = $0.9733 United States currency), with a still greater and more phenomenal in- crease in 1919, the total being expected to reach nearly 50,000,000 dollars following the prosperous condition of the country brought about by the coffee situation of that year. Commerce and industry are confidently expected to be very active in Colombia for the next five or six years. New railways are being built, new factories are being erected and the old ones enlarged, the cattle industry is increas- ing rapidly, mining is certain to expand, and the production of coffee, sugar, and tobacco is increasing. Sentiment plays a greater part in the business life of Colombia than in that of the United States, and the problem of retaining Colombia's trade is one that must be solved by the American manufacturer and exporter. The Colombian importer would like to continue to buy in the United States, as well as to ship his exports there, but he also likes to feel that he belongs in our economic scheme; that he is doing 350 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. business with broad-minded people who understand his country and his own individual needs and requirements; that he is liked per- sonally and accorded due consideration; that there is time in which to attend to his needs; and that he is getting the cooperation and assistance (in building up his business for the future) to which his past efforts and achievements entitle him. American capital is being attracted to the oil fields of Colombia, to railway construction, harbor and dock improvement work, river canalization, sugar and tobacco planting, cattle raising and packing houses, platinum and gold mining, and manufacturing; and at least 80 cents of every dollar so invested remains as a permanent invest- ment in the country, enriching it to that extent. More construc- tion work will be done in Colombia during the next 10 years than in the past 50 years; more modern buildings will be erected, more municipal lighting plants installed, and more factory equipment purchased. The time is opportune for active and progressive sales work and business building m Colombia. PARCEL-POST TRADE WITH COLOMBIA. The postal measure increasing the weight limit of parcel-post packages from the United States to Colombia from 5 kilos (11 pounds) to 10 Kilos (22 pounds), which went into effect early in 1919, had an immediate and beneficial effect on the volume pi imports from the United States. Imports of merchandise, consisting chiefly of fancy drygoods, haberdashery, millinery trimmings, women's wear, etc., increased at least 900 per cent by September, 1919, especially at interior points, such as Bogota and Manizales, where freight is slow and rates high. Another reason for this phenomenal increase in parcel-post impor- tations was the character of the market conditions in Colombia during the year. When the Colombian market reacted in May, 1919, as a result of the coffee situation, stocks were low, as the larger importers had been waiting for lower prices after the termination of hostilities in Europe. The influx of wealth caused an immediate and insistent demand for fancy goods of all kinds laces, ribbons, stockings, embroideries, fancy dress goods. and patterns, trimmings, slippers, etc. and men's wear of every sort. Trie Magdalena River, the main artery of traffic with the interior, was in bad condition, and freights were very congested with coffee and with imports pre- viously received. Merchants found that they could receive small and ready shipments of seasonal merchandise by parcel post in less than six weeks from date of order, and so keep up a constantly moving stock of " ready-sale" goods carrying attractive profits. Competition locally was also keen, and by using the parcel-post service merchants were enabled constantly to display new and attractive goods of the latest styles in accord with the local seasons and climate. Another reason for the use of the parcel post was the market con- dition in the United States. Prices were very high and fluctuated almost daily, firm quotations being impossible to secure on many lines of goods. By the use of the parcel post small stocks could be obtained quickly without waiting for the usual time required in the case of oramary freight, and a good $rade could be carried on pending COMMERCIAL PRACTICES AND REQUIREMENTS. 351 the receipt of large orders of more staple lines or the advent of better buying conditions. Imports into Colombia by parcel post totaled 680,183 kilos, valued at 2,657,975 Colombian dollars, in 1916, and 390,739 kilos, valued at 2,133,099 dollars, in 1918 goods having almost doubled in cost in the meantime, as is shown by the difference in weight between the two years, the values remaining almost the same. In 1919, after May, imports DV parcel post increased, as has been said, as much as 900 per cent in some commercial centers of the interior, and the returns for 1919 will show an enormous increase in imports by this means. Exports by parcel post in 1918 amounted to 9,492 kilos, valued at 98,611 Colombian dollars, and consisted chiefly of Panama hats, jewels, platinum, and gold. The United States received 26,000 dol- lars' worth, Great Britain 42,046 dollars, France 15,212 dollars, and other countries 14,715 dollars. To convey an idea of the volume of business in parcel-post orders in each commercial district, the following tables are given for 1918: [Colombian dollar=$0.9733.] Post offices. Spain. United States. France. Italy. Great Britain. Other countries. Barranquilla Colombian dollars. 10, 461 Colombian dollars. 199,866 Colombian dollars. 24,387 Colombian dollars. 16,272 Colombian dollars. 11,494 Colombian dollars. 5 244 Bogota . . 36.809 507,040 276,443 38,252 103.746 38 678 Buenaventura 788 13,375 392 973 884 ' 74 Call 1,040 75,847 26,587 10 241 5 831 4 456 Cucuta 1,694 19, 678 4,334 2.796 3 212 *816 Ibague 88 5,834 375 9 164 418 Manizales 2 953 50,614 27,715 4 775 5 801 2 487 Medellin 13, 170 213, 403 100 612 28,229 51,057 27' 871 Neiva 51 5,333 28 Pasto 2,183 7,686 2.275 2 260 5 388 755 Popayan 1.475 9,700 2.647 432 1,818 272 Santa Marta 65 1,646 7 Sincelejo 276 3 917 573 Tumaco 2,667 7 862 426 1,646 2,038 53 Tunja 1,896 5 875 698 NOTE. Data are not available for Bucaramanga and Cartagena. Total parcel-post imports for 1918 were 390,739 kilos, valued at 2,133,099 Colombian dollars. Imports by parcel post from Italy consisted chiefly of felt hats (Borcellino) ; from Spain of knit goods, stockings, underwear, etc. ; and 'from Great Britain of fancy leather goods and fancy dry goods. Fancy dry goods came also from France. Exporters or fancy dry goods and notions can take advantage of the parcel-post service to develop a trade with Colombia by the use of catalogues. These, however, should be printed in Spanish; the metric equivalents of weights and measures should be given; and price lists should be so arranged as to remain firm for a considerable period. A good system of catalogues, intended to take care of price fluctuations in the United States, is one made up of loose leaves, or series of seasonal booklets prepared for ready filing together in one large binder. Attractive cuts of the goods offered can be shown hi colors, with all reading matter in Spanish. Prices quoted for orders must agree with the invoices. 352 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. It should always be remembered tnat import duties on parcel-post matter are assessed according to the value of the most costly article contained in a mixed shipment (law No. 99) and that silk articles, or silk mixtures, should not be packed with cotton goods, since in such a case the lower-priced goods will take the same import duty rate as the silk, which is assessed at $5 to $6 per kilo of gross weight. Duties are specific and are assessed on the gross weight of packages wrapping and all. The recommendations for. packing in general apply to all parcel-post shipments. Packages intended for the inte- rior must be waterproofed in some way, preferably by the use of a light tarpaulin. Loss by pilferage is very common and should be guarded against in every possible way, even if it is necessary to make a reasonable charge for extra packing cost. When the contents are of very high value (such as manufactured silks and the like), packages should be inclosed in a fine wire-mesh inside wrapping to prevent cutting with a knife. All shipments should be insured througn to destination, not merely to port of entry, since most of the loss occurs in the interior. There are two good insurance companies in Colombia, which cover the country, and the exporter should take out a policy covering goods through Colombia from port of entry to final destination; otherwise, if loss occurs in the interior, the purchaser can not collect com- pensation for his damage or loss. The best packing, when the nature of the goods permits of it, is in the form of a smafl pressed bale, protected first by the heavy paper wrapping inside, then by the waterproofing, and then by the outside cover sewed on to fit the entire package being pressed to the smallest possible volume. Pasteboard liners for piece goods, ribbons, laces, embroideries, etc., should be removed, as all this adds extra weight, on which duty and postage must be paid by the buyer. Parcel-post imports are not opened and inspected at the port of entry but proceed direct to destination, where they are examined and appraised in the local post office, and the addressee notified. During 1919 the parcel-post service between the United States and Colombia was usea chiefly by export commission houses in filling orders for their clients in Colombia. Its use is becoming more and more general and will continue to increase until such time as Colombia is possessed of better transportation facilities than now exist in the country. Dealers in Colombia are also using the domestic parcel- post service for the distribution of wholesale merchandise from com- mercial centers to the interior, the goods thus handled being repacked by the importers to suit the transportation requirements of the region to which the goods go. 1 CREDIT TERMS. The usual terms granted by American exporters on Colombian orders at the present time are 120 days' date, being equal to 90 days' sight, which was formerly customary. Many arguments are advanced in Colombia for and against long terms of credit. Prior to the war the bulk of the import business m staple and standard lines such as textiles was done on the old six-month basis allowed by European i An article on the parcel-post service at Barranquilla, 'giving a detailed account of the duties and other charges assessed on packages, the parcel-post rates from the principal countries, etc., was published in Commerce Reports for Aug. 5, 1919. COMMERCIAL PRACTICES AND REQUIREMENTS. 353 houses on accounts with the older and stronger importing firms of the country, and late in 1919 there were certain indications of a return to this basis on the part of European houses chiefly affecting the old lines of English textiles and their old and long-established trade connections in Colombia. However, conditions resulting from the war in general and the pros- perous condition of Colombia induced by the coffee situation of 1919 have brought about a great change in Colombian domestic trade as related to the import trade. A powerful factor in this change has been the influence of the several large Colombian commission firms established in New York, which are endeavoring to continue the same system of credits as those obtaining during the war 90 days' sight or 120 days' date since their own transactions in the United States are based on these terms. Also, the larger and long-established importers who possess sufficient capital for their business needs, in buying and also in taking care of the smaller retail dealers of their district and of the interior, see in these shorter credit terms a great advantage to themselves in holding their wholesale trade, which they can then control through their own system of long credits to the interior retail trade that they finance. Another important factor influencing the necessity, or lack of it, for longer terms of credit in Colombia, has been the establishment in the country of American branch banks, whose policy it is to protect and assist with loans the merchant importer rather than tne planters. As conditions now are, a merchant who desires to increase his business can, upon the presentation of the proper proof of solvency and healthy increase in his turnover, etc., secure additional commercial credit (in many cases almost double that formerly allowed him by native banking institutions), and this further obviates the necessity for longer terms of credit on commercial bills. Again, there must be taken into consideration the fact of the extra- ordinarily increased financial resources of the country in general, brought about by the influx of wealth due to the 1919 coffee situation. The circulating medium of the country has been increased in metallic currency (golol) , and this increased wealth has been distributed among the small producers as never before, furnishing a good basis of working capital and still further obviating the need f or long terms to the dealers of the interior, who are now able to handle stocks, if well selected, three and four times a year instead of once or twice a year, as was for- merly the case. In other words, long credits are no longer a vital factor in trade with the interior, and the old order of things is rapidly passing in Colombia; the country, instead of remaining on the old basis and adhering to the system implanted by the Germans and followed by European houses, is adopting the standard of the United States, and the domestic commerce is following along these lines. Quick deliveries of goods in other words, rapid and adequate ocean steamship service and prompt attention to orders by the fac- tories in the United States also tend to eliminate the necessity for long terms of credit. The old German system of long terms of credit and large stocks of goods, with loans to the planters, practically financed the merchants and made it possible for them to invest their surplus in exports and other forms of business for additional profit. The prevalence of this 37558 21 23 354 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. system, in the past, gave the merchants their present capital and standing. However, this necessity may be said, as a general thing, to have passed for Colombia. Of course, there are many cases where a stock, if placed in the right hands, at long terms, and more especi- ally in new trade districts not properly developed as yet (as, for example, the Tumaco-Barbacoas-rasto region) , will bring increased business and develop new trade. It should be borne in mind that the new dealer with small capital needs longer terms on his bills, and, also, that the older merchant with capital has to meet competition when selling to the interior and that time is an important factor in that trade on account of the crop seasons. And, besides, long terms are attractive even to the mer- chant with sufficient capital, because they enable him to reinvest his surplus in exports and other enterprises of sufficient margin of profit to himself during the year to make the small interest charges on long-term bills a secondary consideration. LOANS AS TRADE FACTORS. Another important factor tending to increase trade will be that of loans to Departments and municipalities to be used in public works. The prosperous condition of the country as a whole has given the departmental and municipal governments their first opportunity in years for improvements; thev have had financial surpluses over and above their most pressing administrative needs, and these surpluses are being invested in water systems, lighting plants, slaughter- houses, street railways, municipal theaters, and the like all paying ventures, for which materials and equipment are needed. Several recent examples of the part played by such loans in the promotion of trade are the new docks at Buenaventura and the municipal elec- tric street railway of Medellin, Antioquia. In both cases the neces- sary money was arranged for with an American foreign-banking institution by an export commission house; this house furnished aS the materials, machinery, and equipment for the account of the Government interested and received installment payments periodi- cally on the loan, taking care of both principal and interest in a manner very satisfactory to all concerned. There is a wide field for such enterprise in Colombia to-day. Relations of this nature do a great deal to promote trade between the two countries, and at the same time they have a great influence in enabling Colombia to reap the fullest possible benefit from its present prosperous condition and to prepare facilities for handling future increases in trade and economic development. Such relations are striking examples of what is meant by cooperation in foreign trade, in which all elements composing the complicated system of business are harmoniously combined for mutual benefit. Those elements include the banker, the exporter (commission house), and the representatives of the people who are the purchasers. The sending of American railway and construction engineers to Colombia to handle and install this new equipment and to work out new projects of development will further tend to increase the sale of ' American machinery, equipment, and products, and there should be more American professional men in the country. At the present time a German engineer is laying out the new railway for the city of Medellin. The German engineer naturally does not favor the Amer- COMMERCIAL PRACTICES AND REQUIREMENTS. 355 lean type of truck, motor, or car, and there is no one on the ground to refute his statements or to demonstrate the American model. A Swiss watchmaker operating a local jewelry store (most of the jewelers are Swiss) never loses an opportunity to demonstrate the alleged defects of watches of American design. A great point is made of the supposed weakness of the American type of watch case with the stem "set" and hand-catch release; the Swiss side-catch design is claimed to be better. American watch repair parts are not carried in stock, of course, the dealer receiving his supply of watches and parts directly by parcel post from Switzerland. These instances illustrate the desirability of having Americans in Colombia to pre- sent effectively the case for American goods. LETTERS TO CONSULS, TRADE COMMISSIONERS, AND COLOMBIAN FIRMS. Letters directed to American consuls and trade commissioners by American commission firms seeking business with Colombia are much too general in character, as are also those addressed to native firms with which it is hoped to open negotiations and engage in trade. An examination and analysis of hundreds of such letters received by consuls and Colombian firms showed only about half a dozen that were direct and specific in character and showed a real knowledge of conditions. Many letters asked, in general terms, for data that could be procured only by months of hard traveling in the interior (often by mule-back) and much personal investigation the writers not realizing that the southern town of Pasto is farther from the Caribbean coast of Colombia, by time of travel (and also expense), than Europe is, and that it has little commercial intercourse with the rest of the country, especially the coast cities where consulates are located. O ther letters show a lack of knowledge of the means of obtaining information near at hand in the United States. For example, one manufacturer wrote to Bogota (his communication being one month in transit) asking for information that had already been published in a monograph of the Special Agents Series, which would have answered every question and which he could have secured for a few cents and in 24 hours from Washington, or by request from any district office of the Bureau of Foreign and Domestic Commerce. He did not know that an expert in his line had already investigated the field and done the work, and 60 days were lost in waiting for the reply from Bogota. Every possible source of information should be exhausted before one writes to Colombia, because the delays are very great. Knowledge of these sources of trade information and the study of them is one of the first requirements of exporting. Many banks in the larger cities of the country have established trade-information bureaus which are familiar with such data. Chambers of commerce and manufacturers' associations are also informed and can help in this regard, and there is always the local or nearest district office of the Bureau of Foreign and Domestic Commerce, where trained and experienced men are employed to assist anyone who applies. In writing to consuls it should be remembered that they are very busy men, with many demands upon their time outside of their routine work, and that really very little accurate information can be 356 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. obtained in one part of Colombia about another part; concerning the trade and merchants of Medellin, for example, more is known in New York than in Barrancmilla or Cartagena. There are no trade direc- tories or commercial lists in Colombia. A general offer of superior facilities to the average Colombian mer- chant is not sufficient and does not interest him. He is usually a general merchant, dealing in general merchandise, handling exports, and doing a general wholesale and retail business, with long-estab- lished connections with some large export commission house in New York. Such firms make inquiries of the consuls only for some special article or goods that they can not get from their connections or that they do not find described in catalogues. American firms should, in every case, write a personal letter and submit specific offers of merchandise, with detailed specifications and, if possible, samples. Particular lines of goods should, hi every case, be specified, with definite price offerings, etc. South America has been flooded, since the war, with circular letters sent out by many new export firms of all kinds, Colombia being no exception to this. It should be remembered that personal relations count for more in Latin American business than elsewhere and that letters are not sufficient to secure trade ; the markets should be visited with a line of samples and relations established in that way. Credit ratings and bank references should always be given by American firms, as Colombian merchants like to feel that they are doing business with a large and responsible house. In trade lists it will be noted that many names of firms in South America end with an initial, as for example : Francisco Carbonell W. Hernando de Castro P. y Cfa. Business houses in the United States should use this initial always, as it is important for two reasons and serves a definite purpose. The principal object of the initial is to avoid confusion of names and mail, telegrams, etc., caused by many persons having the same name, the initial serving to distinguish one family from another. This, condition emanates from the fact that in the early times there were few wealthly families, and these became interrelated by mar- riage, which' accounts for the great number of similar surnames. Given names also are of ten- similar, because of the custom of naming children for the Saint whose fiesta day is approximate to the birth- day. , Also, very often family names are given children. Another factor is the pride of family connection found in all Latin American countries. The last initial denotes the mother's surname, as for example : Hernando de Castro P. y Cfa. Ilernando de Castro (Palacios) y Cfa. Hernando de Castro's mother's family name having been "Pala- cios." This matter is one of the small courtesies that go. to make up a successful business relation. COMMERCIAL PRACTICES AND REQUIREMENTS. 357 CATALOGUES. Both catalogues and samples are excellent mediums of trade promotion if properly presented. Catalogues should, of course, be printed in the Spanish language, with all weights and measures given in the metric equivalents, so that duties, prices, etc., can be estimated and comparisons made. Catalogues put out with color cuts are very well liked and do much good; they are kept for reference and com- parison by the importers, who like to receive new catalogues showing new lines of merchandise and are quick to pick out articles, patterns, etc., that they believe will sell well in their districts. A very good plan, and one that is being more and more used, is that of the loose- leaf book which is added to from time to time as seasonable offerings are made. This method avoids the waste attendant upon a situation of fluctuating prices, as was the case in 1919. Prices shown in cata- logues should be, so far as possible, firm for at least 30 days (60 being better), and the weights, lengths, widths, gross and net weights of packing cases or containers that is, shipping weights should always be specified for each article shown, so that calculations of price and cost can be made and the import duty estimated, as well as freights and other charges. With each folder, booklet, or catalogue should be sent a letter containing specific information and a definite offer. Goods shipped on catalogue orders must be correct and must agree with the quality, pattern, and price offered. Colombian buyers, being general merchants and having strong competition, are Keen judges of merchandise in many lines and are expert in figuring the commercial worth of an assortment. SAMPLES. There is great interest in Colombia in American goods of all kinds formerly imported from Europe, and more especially in textiles, but merchants of Colombia complained that they could not get samples of lines badly needed from American firms during 1919. Their requests were generally ignored, and this caused bad feeling. Sam- ples do a great deal of good and are productive of noteworthy orders. They are carefully examined and compared by the Colombians, and new lines and patterns are ordered whenever it is thought that these will sell well locally and in the commercial district of the importer. New and better goods are being demanded by the public in Colombia, and importers are very glad to receive samples and make use of them. All samples should be marked "Muestras sin valor" ("Samples without value") and should be sent by parcel post with adequate postage. Too often, in the past, postage nas not been sufficient and the addressee has had to appear in person at the post office and pay the postage due, with an additional fine of 100 per cent of the shortage. It may seem incredible but it is true that literally thousands of letters, catalogues, advertising matter, and samples are thrown away every month in Colombia on account of inadequate postage or im- proper addressing. 358 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. All samples of textiles sent to Colombia should bear the following data: Serial and lot numbers. Weight per square yard or yard of length and per meter. Number of threads to the inch. Net weight of piece. Gross shipping weight of bale or package for shipment. Price per yard (or meter) and per piece. All samples should be so marked and arranged so that they can be used at any time for repeat ordering by cable. EFFECTIVE METHODS OF ADVERTISING. The commercial advantage obtained by the United States in recent years should be followed up with more progressive advertising in Colombia, to assist in keeping the new American goods before the public and to aid in the introduction of new lines and specialties. The purchases of the lower classes are largely determined by trade- marks, which should be featured in all advertising in Colombia. Pictures are the universal language and are of special value in a country where more than 50 per cent of the population is practically illiterate. More attention is paid to pictures, especially colored litho- graphs, etc., than to anything else, and a great volume of reading matter is useless. Advertisements of machinery, implements, and similar articles should show them in actual use in tropical or Latin American surroundings typical of the country, in order to better visual- ize their application and operation. Display advertising, calendars, etc., should, carry a background of some local and well-known statue, church, or other edifice. For example, the equestrian statue of Gen. Simon Bolivar at Cartagena is well known all over South America and can be used to good effect as an allegorical background for advertisements intenoied for not only Colombia but all of Latin America. The usual American advertisement carries too much reading mat- ter and not enough pictorial display for use in Colombia. Every effort should be made to humanize displays, using "local color" as much and as often as possible. Local newspapers, especially the large dailies of Bogota and Medel- lin, are very good mediums, since they are all sent out into the smaller towns of the interior and are reread by many people, who are as much interested in the pictures and advertisements as in the news and other reading matter contained. Advertising rates of the impor- tant newspapers and other publications can be found on file at the Colombian consulates in the United States, or at the new bureau of information of the Colombian Government in the Bush Terminal Building in New York City. Most export trade journals are published primarily to reach the trade, but their effect on the consumer in Colombia must not be underestimated. All importers of hardware and merchandise, as well as the larger landowners and planters, read a good many of these periodicals, and all advertising matter is carefully reviewed. These people are quick to select some machine, device, or new material suited to their needs, and they often write immediately for more information, though it is also usual to commission an import dealer COMMERCIAL, PRACTICES AND REQUIREMENTS. 359 or commission house in New York to look up the matter and place the orders. The trade journals edited in Spanish are very well liked and are found in all offices, clubs, salons, and even barber shops, where they are in constant demand by the interested public of the better class. Outdoor advertising in Colombia is rather sensational in its nature. Signs are painted on the walls of buildings, and posters are also used with good effect. The street cars of Bogota use cards, as in the United States. There are not many signboards in the country; lumber is too scarce, paint is yerv expensive, and traffic is not heavy. Most of the outdoor advertising is in the towns. There are two electric signs (moving) in Barranquilla and several good ones in Bogota and Medellin, these being a very recent innova- tion brought from the United States by enterprising native merchants and agents; the signs advertise chiefly local makes of cigarettes. A new firm of condition-powder makers in Medellin has secured excellent results from a series of advertisements of a vivid caricature nature, showing always a sick mule and a doctor. Advertising matter is subject to the following rates of duty per kilo (2.2046 pounds), gross weight: Cents. Advertisements on paper or cardboard, with or without illustra- tions and with or without cardboard frames 2. 04 Calendars in pamphlet form or for walls 1. 02 Calendars in sheets 2. 04 Advertisements on tin plate 17. 34 On enameled iron 20. 4 On copper, bronze, brass, and similar metals 51 Catalogues are admitted free of import duty. ALIENS NATURALIZATION IMMIGRATION. In accordance with the provisions of the Colombian Constitution and the established practices, aliens enjoy, in their ordinary rela- tions, the same prerogatives and rights as the native Colombians. There is no special or specific legislation applied to aliens, with the exception of the laws dealing with the location of mining properties and oil lands. Aliens can not, however, exercise any political rights, because such rights would imply acts of sovereignty enjoyable only by those per- sons who are clearly possessed of Colombian citizenship ; but, as indi- cated below, such citizenship may be easily acquired by whoever wishes to do so. Law No. 145 of November 26, 1888, regulates matters concerning aliens and naturalization. This law classifies aliens into two distinct groups first, transient aliens; second, domiciled aliens. Those are considered as transient who, finding themselves in Colombia, have no established domicile that is, no established business and fixed residence at a given place. Domiciled aliens are those who, for any reasons, reside within Colombian territory, with some established "business or occupation, or have married a Colombian woman, or have performed any other act that implies the intention of settling definitely in the Republic. This latter status may be acquired by the declaration, before any political authority in the presence of two competent witnesses, of the intention to settle in Colombia. The protection given in both cases is the same as that extended to Colombian citizens by the laws, and the obligations of the aliens con- sist in conforming their conduct to the general police laws and in not meddling in political affairs, under penalty of article 12 of Law No. 45 of 1888. The domiciled aliens are not obliged to pay public taxes of a general nature, either ordinary or extraordinary. Transient aliens are obliged to pay only indirect taxes. All domiciled foreigners who earn their living in the country are required to pay income taxes according to the provisions of the income-tax law of 1918 (" Impuesto sobre la renta"). In the matter of naturalization that is, change of citizenship the law considers two classes of persons those of Latin- American origin and those from other countries. The former, on account of solidarity of race and common aspirations, are only required to ask the municipal authorities, in the place where they reside, to in- scribe their name in the enrollment of Colombian citizens, and they thereby acquire the rights of citizenship. Aliens of other origin are required to petition tne executive department for papers oi^ natu- ralization, accompanying the petition with a brief giving their civil state and present nationality and proving that they have either a profession or other means of livelihood. As soon as the naturaliza- tion papers are issued by the department and the person has sworn 360 ALIENS NATURALIZATION IMMIGRATION. 361 his allegiance to Colombia and renounced allegiance to his native land r he becomes a Colombian citizen, as also his wife, if he is married, and his children under 21 years of age, if he has any. Naturalized citi- zens do not have to take up arms against their country of origin in the event of war between the two countries, 'but are obligated to the system of compulsory military service in all other respects. The consuls of the Republic abroad are to-day the immigration agents of Colombia. They are required to furnish any information, about the country desired by prospective settlers. The law considers as an immigrant any foreign laborer, artisan, industrial worker, agri- culturist, or professor who may be under 60 years of age and over 10 years of age and who may be able to prove his good behavior and his skill or knowledge. Every immigrant must provide himself with passports issued by a Colombian consulate in the country from which he comes. He is entitled to bring in, free of duty, the implements, tools, or instruments of his calling or profession. He has also the right to a free grant of land in Colombia. Immigration may also be effected by contract with immigration companies. East Indians and "pernicious aliens" are barred from entry into the country. At the present time there is very little immigration to Colombia. The principal influx of labor is from the West Indies to the banana- plantations of Santa Marta, averaging about 6,000 persons each year, but this labor is floating in character and the men do not, as a rule, become permanent residents in Colombia. Studies of the agricultural resources of the country by an English expert, Prof. Dawe, indicate the lack of sufficient labor in many dis- tricts of the country (more especially outside the area of the high table-land of Bogota, which is the only place in Colombia where there is sufficient cheap labor) , and recommends the importation of Japa- nese coolie labor for the purpose of forming agricultural colonies such as those in Brazil, the example of which is pointed out. MARKETS FOR SPECIFIC CLASSES OF MERCHANDISE. TEXTILES. Textiles, consisting principally of cheap cotton goods, constitute the chief article of import of Colombia. Although the domestic industry has made considerable progress during the last 15 years, the domestic production does not supply more than one-tenth of the demand. The native industry is protected by a high tariff on textiles, and the prices obtained for the local output are based upon textile prices in foreign markets plus the import duties and inland freights. The protective tariff has had the effect of increasing the cost of the domestic article to the consumer, and mills have made large profits in spite of the fact that all yarns and a considerable amount of raw cotton have to be imported. The domestic mills have the advantage of cheap labor, the average wage in the mills being between 30 and 40 cents per day of nine hours. Many of the larger mills are installing dyeing plants, and two or three yarn-spinning mills are being erected or planned for the near future to use the native cotton. High prices and large profits obtained in 1919 have had the effect of attracting additional native capital to the cotton industry, and new mills are either being planned or actually under way. Every effort is being made to increase the production of native cotton in the Lower Magdalena River Valley, but these efforts are hampered by the lack of efficient labor in the districts affected. (See p. 199.) DOMESTIC TEXTILE INDUSTRY. There are numerous textile mills in Colombia. Four are knitting mills making cheap cotton undershirts for men's wear, the largest of these being the Fabrica Nacional de Tejidos, of Barranquilla, and the plant of Espreilla Hermanos, of Cartagena the latter factory also making cotton socks and stockings. The largest cotton mill is the Fabrica de Tejidos "Obregon," of Barranquilla, capitalized at 1,000,000 Colombian dollars (1 dollar = $0.9733 United States cur- rency) ; this concern has recently installed a spinning mill and a dyeing plant and is beginning to use native raw cotton, which is also ginned at the plant and dyed there. The next largest cotton mill is that of the Compania Colombiana de Tejidos, of Medellin, originally capitalized at 200,000 dollars (since increased). The "Magdalena mill, in Bogota, is the only one in the country making woolen -cloth for suitings, etc. (For details capitalization, produc- tion, etc. of the textile mills of Colombia, see the discussions under " Industries " in the sections on the various commercial districts, beginning on page 185.) Six hundred thousand Colombian dollars have been subscribed by Medellin and Manizales capitalists for a new cotton mill in the latter city; plans for this mill were perfected early in 1919, and the machinery and equipment are now under order in the United States. 362 MARKETS FOR SPECIFIC CLASSES OF MERCHANDISE. 363 As has been stated, all domestic mills are in a very prosperous condition, and all have plans for expansion and additions to their plants, including spinning departments (for the utilization of native raw cotton) and dyeing plants. There is an active demand for textile machinery, of which the American design and make is preferred on account of its lighter weight and more automatic operation as com- pared with the German or English designs. The purchase of this machinery is effected by representatives of the companies coming to the United States and personally visiting the textile-machinery factories. Interested American manufacturers will do well to get in touch by correspondence with all the Colombian mills, offering their special lines of machinery and equipment by means of catalogues and detailed descriptions of the features of their designs. RELATIVE POSITION OF FOREIGN TEXTILES IN COLOMBIAN MARKET. Since the early days of the Republic there has been a large and increasing trade in textiles with England. The Colombian market was invaded by the Germans in about 1870, but textiles still remained England's specialty in Colombia and the United Kingdom also shipped most of the country's imports of cotton yarns prior to the war. American cotton goods have gradually found an excellent market in Colombia, at the present time almost equaling shipments by Great Britain. In 1919 the American merchandise of this class surpassed Great Britain's total by a considerable margin. This condition, however, was principally due to Great Britain's inability to quote in the early part of the year, except at high prices and long deliveries; and in tne latter part of 1919 agents for English textile houses again became very active, quoting firm prices with credits ranging from six to nine months on a year's stock of standard weaves and patterns. The exchange situation also had a great deal to do with increasing orders for English cotton goods, the Colombian merchants effecting a saving of about 20 percent (in September, 1919) by buving London exchange in New York. Orders have been placed in the United States for immediate stocks to take advantage of the active domestic demand up to September, 1919, and orders for English textiles after that time were principally for large stocks of standard cotton goods for the 1920 trade placed by the larger of the wholesaling importers, who make a specialty of cotton textiles. One of the chief attractions of the English cotton textiles for the Colombian importers is the great variety of patterns and designs furnished in standard short-length pieces. The average length is 20 yards, which just cuts into so many dress patterns evenly, leaving no waste remnants; this can be conveniently handled in the trade of the interior, where buying is always on a small scale and hi assorted lots. Another acceptable feature is the manner in which English goods are finished and wrapped for wholesale display. A bale of cotton calicoes often contains as many as 60 distinct colors and patterns, offering a great variety for selection and constituting a much wider range of colors and designs than is found in the usual assortment of American export goods of similar quality. Moreover, each 20-yard piece is carefully folded into 1-yard lengths, for easy measuring in selling or in taking stock inventory, and is then refolded into four divisions, making a tight, compact bolt, with the 364 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. wrapper (carrying the display label, lot and serial numbers, etc.) put on lengthwise, leaving the ends exposed for easy inspection and dis- play on counters and at the same time protecting the goods from shop wear and dirt. American calicoes are sent down in large, heavy bolts wrapped on a wooden core which costs the importer full import duty and which has to be rolled over and over to measure the cloth. The wrapping is of common wrapping paper, forming a closed and tied package, which, while it protects the ends, is soon torn open by continuous inspection of buyers, becomes useless for its purpose of protection, ana presents an unattractive appearance. Colombian importers complain that they can not get short and ' standard-length pieces from American mills, bolts running between 43 and 72 yards, which wholesalers have to measure out and cut into the 20-yard pieces desired by the dealers of the interior. It is asserted also that these goods do not present the same attractive appearance as the English textiles. Pressed bales of English textiles are carefully marked with lot and serial numbers, and all shipments are accom- panied by a packing list and invoice, giving all details and permitting unbroken bales to be sold at wholesale without repacking (which can not be done with the American goods) . It is also pointed out that American calicoes do not cover, in designs, colors, etc., the varied demand in the several commercial districts of the country. For example, the people of the Bogota region are of short stature and most of the purchasers prefer goods with small figures and flowers, narrow stripes, etc. ; while the people of the coast and river valleys and the Indians of the southern taole-lands want bright goods, plenty, of sharp color, and large designs and figures. American cheap calicoes come in dull shades, with few patterns, and do not allow of the same selection. Colombian importers, anxious to obtain the same lines from the United States that have become popular in Colombia when received from Europe, have brought well- selected lines from England to New York, especially to show them to American makers with the idea of persuading the Americans to manufacture the same goods and to put them up in the same way. Not much success has been attained in the past, American manufac- turers claiming that the manufacturing cost would be too high. In this regard it would appear as if the trade in textiles with all of Latin America should be considered sufficient to justify changes neces- sary in order to meet the importer's ideas. An inspection of any Colombian importing wholesaler's showroom affords convincing proof of the better impression made by the European goods upon ouyers entering the display room. The American goods can be picked out at a glance and suffer in comparison with the English, which are put up to attract and are preferred, for this reason, by the large importers. EXCLUSIVE BRANDS PROTECTION OF LARGE IMPORTERS. Another reason for the preference for English textiles lies in the protection of certain of the large importers whose orders run into many thousands. of dollars annually. Special weaves and patterns of calicoes, prints, bleached and unbleached whites and sheetings are made up year by year for one large importer of a certain commercial MARKETS FOR SPECIFIC CLASSES OF MERCHANDISE. 365 center, who takes 100 bales, or 1,000 bales, or some other 'quantity, as the case may be. The business is staple, standard, and well suited to the mills of Europe; and orders can be estimated in advance over an enormous territory. The large importer's own brand, which he has succeeded in making popular in his district among his clientele, is put on the goods, and mills (jobbers) refuse to sell this brand to any com- petitor in that particular district. These special brands are the im- porter's specialties and the principal line carried year by year making a stable business. The richest firms of Colombia, long established and possessing adequate capital, often handle few articles other than these special brands, and do a large wholesale business. This is especially true of firms in Bogota. CLASS AND QUALITY OF TEXTILES. European textiles are well suited to the policy of the Colombian mer- chants. Widths are narrower, as a rule, than in the American cloth, and the cloth itself is lighter in weight (less thread) and finished (that is, surfaced and glazed) , thus appearing to have the body and weight that it does not really possess. This fact, combined with the great variety of patterns and colors and the attractive method of presenta- tion, gives the importer a great advantage, since these goods cost him less and are sold at a larger margin of profit than is the case with the American textiles that lack this finish and are heavier (more threads to the inch). However, the people of the country have discovered that American calicoes, while not as superficially attractive when new, wear better in the end. There is gradually growing an insistent demand for " Americanas," and it may be predicted that merchants will be forced to carry in stock a certain amount of American cotton goods to supply this demand in the future. Domestic mills turn out rough, strong, unfinished cloths calicoes, drills, unbleached white goods, etc. very well suited to the use of the lower classes and enjoying a great demand, especially as regards the rough, heavy drills used for blouses, trousers, etc. There is a strong demand for the better grades of khaki cotton cloth for tropical suitings, Palm Beach cloth, linen suitings, drills, etc., and for the cheaper grades of heavy shirtings and the like. There is also an increasing demand for the medium grades of percales, muslins, voiles, ginghams, piques, poplins, madras (white and fancy), brocades, denims, cashmeres, and many grades of "whites," as well as towelings, etc. Each commercial district should be studied, with respect to climatic conditions, etc., to determine the lines best suited lor that particular district. Cotton prints and rough drills are sold all over the country in all climates, however, and do not vary much, except in cotton prints in colors and designs for women's dresses, as pointed out. STATISTICS OF IMPORTS. In order to give an idea of the variety and relative values of the textile lines imported by Colombia, the following table is presented, from the 1916 import returns of the Colombian Government. 366 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL, HANDBOOK. [Colombian dollar-80.9733.) Articles. Value. Baize, tartan, and outing flannels Bedspreads, cotton Bedspreads, curtains, etc Belts, cloth Blankets, cotton Blouses, waists, etc., fancy " Bogotanas" Brocades Buttons, cloth-covered Calicoes Cambrics, batistes, etc., cotton Canvas Canvas for oil painting and interior decoration Canvas and drills (white finished) Caps, cloth ' ' Carolinas " Chemises, of knitted goods, whether or not they are adorned with cords and embroideries of silk Cloth: Cotton, knit Diagonal, striped Embroidered For bookbinding Unbleached Clothing: Knitted ("ropa exterior") Outer, for men Outer, for women, of various mate- rials- Plain Fancy Rubberized waterproof Collars, lace and fancy Collars and cuffs, plain Cord and string, ctton Cord and trimmings Cords for nets, etc Cord of less than 1 centimeter Corsets Corset covers Cotton waste Crinoline, white, for interliuings Curtains: Knitted or lace Plain Denims " Domestics," unbleached Dress trimmings " Driles," for mattresses, etc "Driles": Striped and colored Various Elastic: For garters For shoes Fancy cotton goods, various Finishing braids Flowers, artificial " Foulahs," blue Frames for women's hats Fringe and braid for furniture Garters Girdles, etc Gloves, cotton Handken-hiefs: Bmbroidered Plain, with border In piece Colombian dull'ir*. 82,805 58,623 1,192 22 130,663 1,393 1,184,155 28.550 185 1,065 48,321 75,916 4,166 5,265 649 76,299 9,389 31,283 58,730 1,114 252,458 802 29,683 9,222 6,822 1,574 205 28, 279 14,405 10, 893 47, 145 27,138 20,307 774 3,371 757 7,024 1,430 8,914 302,080 8,026 189, 778 17,093 603,845 374 1,670 10, 797 61,911 1,364 4,164 625 5,277 3,334 109 267 1,321 145, 168 6,398 Articles. Hammocks Hats: Men's Women's, with silk trimmings Hat trimmings Hose Laces, fringes, etc Linoleum Madras Mattress linings Muslins Neckties, cotton Oilcloth for furniture Ornaments for garments Packing covering Pillows Pillow covers, fancy Ponchos: Waterproof Cotton Prints, cotton Ribbons, braid, etc Ribbon or tape, narrow Rugs and carpets and materials for making them Sacks, of varnished or rubberized cloth , for packing Sandals, cloth (" alpargatas") Sateens Shawls and wraps Shawls, square, large Sheets, plain and fancy Shirts, men's with or without cuffs Shoes, of cotton cloth Shoe findings, cotton Silk mixtures (25 per cent), striped Stockings Striped goods Suspenders and garters, men's Tablecloths and napkins Table covers and bedspreads, cflace Table covers, plain Tape, girth, of canvas Tape, rubberized Thread on spools and spindles Thread for crocheting Towels Undergarments, etc., white: With embroidery Other Underwear: Knit , of cotton Not knit Uniforms: For the Colombian Army For the Military Band Umbrellas Velvet, cotton Vichy cloth White and colored goods not elsewhere specified Wicking cord Wicks: For tinder boxes For lamps Yarns: Bleached Unbleached Dyed Zephyrs Value. C'tlomi ion dsllir.i. 202 9,410 847 21 459- 145, 141 4,677 17,669 14, 797 12,260- 1,918 4,130 26 30,568 269 144 606 9,682 2,730,399 10,60* 1,827 1,348 13,609 1,176 88,217 268 55,552 700- 120,543 6,000 1,025- 35,299 224,595 18,792 14,382 1,697 170 621 769 1,711 580,960- 286 20,544 6,514 982 101,981 2,798- 49,501 986 22,181 13,511 6,273 1.236,656 75,285- 34,967 73,783 375, 518 590,002 73,505^ The above list is not complete, and it shows only articles of cotton. Imports of woolen goods of various kinds amounted to 1,992,905 Colombian dollars in 1916, of which the principal items were: Woolen cloth for suitings, 686,208 Colombian dollars; ready-made clothing, 54,959 dollars; woolen cloth for women's suitings, 468,155 dollars; and felt hats, 144,041 dollars. Most of the felt hats came from Italy, MARKETS FOR SPECIFIC CLASSES OF MERCHANDISE. 367 The total imports of textiles in 1916 amounted to 13,476,932 Colombian dollars, as compared with 8,025,057 in 1911, a pre-war year. Exports of textiles from the United States to Colombia during four recent years are shown below : Textiles. Fiscal year 1916. Fiscal year 1917. Calendar year 1918. Calendar year 1919. Yards. Value. Yards. Value. Yards. Value. Yards. Value. Cotton, manufactures of: Blankets and comforts > . . . $56,568 $182,919 122,007 23,327 7.516 1,331,588 1,113,152 2,429,415 1,038,971 1,014,810 14,850 3,657 205 15,721 4,394 12,084 138,636 46,846 331 73,118 9,882 597, S57 353,373 Cloths- Duck Unbleached 2 ... 189,566 58,947 14,321 4,977,213 5,896,992 9,616,577 988,683 10,541,331 $59,854 16,287 4,523 309, 818 435,300 625,082 104,6)6 1,073,438 25,665 3,156 52,117 22,322 7,955 4,390,854 2,098,571 4,621,778 2, 069, 251 1,648,722 45,789 9,959 4,103 513,361 312,904 609,931 402,473 303,616 6,854 3' 910 185,460 32,654 15,015 10,675,193 7, 087, 300 18,955,159 4, 755, 728 4,294,434 Bleached 3 Colored* All other cloths Unbleached. 5,082,510 6, 749, 614 13,962,904 $297, 207 365,963 694, 670 40,581 478,998 19, 743 2,806 Bleached Printed Dyed in the piece Dvedin the yarn 514, 621 7,251,929 Laces ami embroideries . . Mill waste... Rags (except paperstock). Thread, sewing, crochet, etc. 5 13,936 Wearing apparel Collars and cuffs 6 2, 698 Corsets 18,384 14,986 IS 510 Knit goods Hosiery 111,499 173,626 173,988 222,571 329 094 66,153 13, 273 1,076 Underwear All other | All other apparel For men and boys For women and chil- dren 66,550 6,991 326,088 178,505 1 135, 766 Yarn Another Total manufactures of cotton 267,949 394.938 ; 2, 607, 192 3 793 316 2,968,248 8,534,659 Silk, manufactures of: Dress goods . . ) > 1 30,940 32,613 \ 689 f 11,768 9,670 3,810 7,802 845 934 25,550 34,183 3, SOT 44,310 2,552 696 Wearing apparel Another 1 Silk, artificial: Hosiery . Another 7 i * Total manufactures of silk and artificial silk 30,940 33,302 23.061 85,548 Wool, manufactures of: Blankets 8 ' 313 143, 696 221 211,461 19,097 4,357 16 17,801 Cloth and dress goods 8 i Wearing apparel For men and boys For women and chil- dren. . . . 17 892 53,315 76 308.052 7,852 | 6,554 Woolen rags . Allother 353,501 15, 107 Total manufactures of wool 371,393 361.443 173,522 252,953 Grand total . . 7 3 009,525 4,188,061 3,164,831 8,873,160 1 Included in "All other manufactures" prior to 1918. a Included in "All other cloths, unbieached," prior to 1917. 3 Included in "All other cloths, bleached." prior to 1917. < Included in "All other cloths, colored," "Printed," "Dyed in the piece," etc., prior to 1917. 6 Included in "All other manufactures" prior to 1918. 6 Included in "All other wearing apparel" prior to 191S. 7 Included in "All other articles" prior to 1917. 8 Included in "All other manufactures of" prior to 191^. 368 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. According to Colombian statistics, imports of textiles of all classes into Colombia during 1918 amounted to 9,587,892 Colombian dollars, of which Great Britain furnished 2,857,956 kilos, valued at 5,033,569 dollars; the United States 2,251,664 kilos, valued at 3, 557,996 dollars: France, 59,401 dollars; Spain, 144,975 kilos, valued at 354,174 dollars; and Italy, 108,958 kilos, valued at 287,287 dollars. (Kilo = 2.2046 pounds.) PACKING OF TEXTILES FOR COLOMBIA. The pressed bale, waterproofed, etc., must be adopted by all American exporters of textiles to Colombia, in sizes to conform to the transportation necessities of the country, smaller bales being put up for mule transport, etc., as indicated on page388. More care should be taken in invoicing and billing, and packing lists should be provided for all shipments so that the contents of each bale can be known without unpacking and verifying. To increase the trade in textiles with Colombia, it is recommended that American exporters adopt more nearly the English system throughout, whenever manufacturing conditions make this possible putting up 20-yard standard bolts, better presented for display by the importing wholesalers, as explained above. Colombian importers admit that great progress has been made in the American white-goods lines, there being greater variety, cheaper prices, and better finish than was formerly the case. Tnese goods now compete very favorably with the English white goods throughout Colombia and are well liked by both importers and consumers. COMMERCIAL PRACTICES IN TEXTILE TRADE. Colombian importers of textiles allow long credits to dealers of the interior, the system being what is known as "six and six," meaning six months and six months more if necessary, the first six months being net, with a 15 per cent reduction for cash with orders. The additional six months carries an interest charge of 10 per cent per annum, compounded monthly. These same terms are given by the domestic mills, some of which maintain their own sales department with branch stores in the various commercial centers, while others sell through agents or jobbers. Profits, net to importer, on standard textiles, such as cheap cotton prints, are figured at 25 per cent, as an average. The market is, at times, highly speculative, and merchants who took advantage of the reduction in prices of American textiles during the early months of 1919, and laid in large stocks, reaped enormous profits, disposing of their stocks during the rush of buying in May, June, and July. Most of the older and more conservative houses, however, failed to understand the real situation in Europe and the United States and were caught without stocks when the Co- lombian market reacted in May, 1919. DRUGS, MEDICINES, AND OTHER CHEMICALS. Next to textiles, foodstuffs, and the articles included under "arts and trades," the imports of drugs, medicines, and other chemicals form the most important item. The sale of patent medicines is large, and many well-known and advertised American specifics are MAKKETS FOR SPECIFIC CLASSES OF MERCHANDISE. 369 sold all over the country. Imports of drugs, medicines, and chemicals in 1911, a pre-war year, amounted to 762,208 Colombian dollars, of which Germany furnished 127,912 dollars, Spain 1,354 dollars, the United States 327,832 dollars, France 154,004 dollars, Great Britain 109,010 dollars, and other countries 41,976 dollars. Imports of drugs, medicines, and chemicals for industrial purposes in 1916 amounted to 1,346,516 Colombian dollars, of which well-known patent medicines were valued at 353,642 dollars. The 1918 imports amounted to 994,032 dollars, the importation being somewhat cur- tailed by war conditions. Not enough heavy chemicals could be obtained during the war. Colombia imports heavy chemicals used in soap making, candle making, etc., trie principal ones being caustic soda, bicarbonate of soda, bichromate of soda, oxalic acid, carbonate of ammonia, copper sulphate, nitrate of soda, bichromate of potash, and sulphur (both powdered and in sticks) . USE AND PACKING OF CHEMICALS. Caustic soda is used principally in the manufacture of soap, and also by the three glassware factories of the country. It is shipped into Colombia packed in drums of 725 pounds net (746 gross), which measure 8^ cubic feet. The standard is 76/78 per cent, New York and Liverpool tests. When required for mule transport into the interior towns, drums of 125 pounds net are used. Soda ash (dense), which can be used as a substitute, is not much employed in Colombia. Bichromate of soda is used by the textile industry and is ordinarily wanted in small 5 and 10 kilo tins, instead of the usual heavy wooden barrels. Oxalic acid is used for bleaching the Panama hats of the country and hi the drug industry. For the coast and Bogota districts it can be packed in the usual barrels of 300 pounds net (350 gross), of about 9 cubic feet. In the case of orders for interior points using mule transport, the oxalic acid is desired in 5 and 10 Kilo tins, or small metal drums. Carbonate of ammonia is used by the baking industry and comes packed in barrels of 430 pounds net (500 gross), measuring 10 cubic feet. For the interior markets, small 5 and 10 kilo tins are wanted. Copper sulphate (bluestone) is used in Colombia for spraying coffee and cacao trees and is wanted in small drums of not more than 125 pounds net weight or in 5 and 10 kilo tins. Nitrate of soda is used by the textile industry and for garden fertilization, though the latter use is very limited in Colombia. The usual form for Colombia is the crystals packed in cloth sacks of 125 pounds net weight. White and amorphous phosphorus is much used for match making all over the country, and should be packed in 5-kilo tins in water. These heavy chemicals are handled by all large importers of general merchandise and also by a few of the larger drug stores doing chiefly a wholesale business. As a rule, orders in the United States are placed through the export commission houses. 37558 21 24 370 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. STATISTICS OF IMPORTS. The principal drug and chemical lines imported in 1916 are shown in the following list, hi order that an idea may be formed of relative values: [Colombian dollar=$0.9733.] Articles. Value. Articles. Value. Acids: Carbonic Colombian dollars. 11,831 12,053 7,252 17,071 8,264 9,326 51,558 7,982 6,521 23,695 52.808 6,871 15,701 10,598 8,307 8,217 22,242 15,771 81,226 Opium. Colombian dollars. 17,249 4,296 6,645 9,385 36,001 4,328 12,544 16,097 23,948 5,117 15,034 72,513 6,647 6,972 12,869 149,307 Citric and tartaric Phosphorus: Red Sulphuric Aspirin White Boxes, wood, tin, and cardboard, for drug packing Plasters, medicinal Potassium chlorate.. Chemicals, i n dustrial, etc Soaps: Medicinal, not perfumed Corks Cotton, medicated Perfumed, medicinal or other Cream of tartar Reuter soap Creolin Quinine Cyanides Soda: Bicarbonate Glycerin Gum arabic Carbonate Gums, resinous Caustic . Injections, medicinal Other soda salts and other salts not specified . .... Magnesia. .... Medicines in capsules, etc Sulphur, flowers of Oils: Castor and nut Wines, medicinal Other chemical products, various Cod-liver, emulsions Exports of drugs, chemicals, and related articles from the United States to Colombia in the calendar years 1918 and 1919 were as follows : Articles. Value. Articles. Value. 1918 1919 1918 1919 Chemicals, drugs, dyes, and medicines: Acids- Carbolic $2,393 3,807 S2,196 6,281 62 2,913 40,403 4,054 2,896 2,824 7,420 1,431 35,247 2,176 23,691 2,909 2,257 7,975 12,236 156 Chemicals, drugs, dyes, and medicines Continued . Medicinal and pharma- ceutical preparations . . . Petroleum jelly, etc $328,718 5,525 4,911 4,913 4,733 79,956 1,214 875 21,139 472 482 191,002 9,734 19,490 1,941 28,446 $722,527 12,362 21,837 19,059 10,303 62,025 190 7,121 43,910 491 407 598,233 30,861 21,977 9,154 70,137 Nitric Picric Potash- Chlorate Sulphuric 10,708 33,675 108 809 1,560 236 449 16,070 237 16,300 1,760 210 3,115 7,555 261 All other All other Alcohol, wood Roots, herbs, and barks . . Soda- Caustic Baking powder. Calcium carbide Coal-tar distillates, n. e. s. . Copper, sulphate of (blue vitriol) Sal soda ... . Silicate of soda All other salts of Sulphur or brimstone Washing powderand fluid All other chemicals, etc. . Cork, and manufactures of Dental goods Dyes and dyestufls Aniline dves Logwood extract Allother Extracts for tanning Formaldehyde (formalin). Gl vcerin Druggists' rubber sundries Perfumeries, cosmetics, and all toilet preparations Infants' food Lime, chloride of, or bleaching powder. . French hypodermic preparations are very well known and most used in Colombia, though certain Italian brands are also becoming well introduced. There is a wide market for these preparations in Colombia. It is thought that American laboratories will find the MARKETS FOR SPECIFIC CLASSES OF MERCHANDISE. 371 field a valuable one, and it is recommended that the sale of American laboratory products be pushed. Patent medicines and specifics find a large market and are often handled by exclusive agents who travel over the entire country. The specifics are mostly for malarial diseases, tropical anemia, dysentery, etc., and tonics of various kinds enjoy a large sale. Very often drug stores are owned and managed by resident physicians. About 75 per cent of the advertising of the country is of patent medicines. PAPER AND PAPER PRODUCTS. Imports of paper and paper products into Colombia in 1916 amounted to 3,889,295 kilos, valued at 913,502 Colombian dollars. This amount included all paper, cardboard, school books and sup- plies, and office supplies and equipment, other than furniture. In 1918 Colombia's imports of paper and paper products amounted to 710,690 dollars, the imports having fallen off after the entrance of the United States into the war. In 1919 there was a shortage of paper all over the country, and buying in this line was very active after the armistice. Following are the more important items in this group for 1916, the most recent year for which detailed statistics are available : [Colombian dollar=$0.9733.] Articles. Value. Articles. Value. Colombian dollars. 9,799 5,937 11,958 11, 141 54,924 30,165 14,277 18,514 24,243 6,211 11,241 63, 971 2,062 Envelopes: "Window" type Colombian dollars. 2,415 34,418 43,760 14, 794 7,255 18, 576 9,417 90,460 9,469 10,782 95,461 38,825 87,404 Books: Other Labels, printed Letter and account paper Office supplies, small Cardboard: Boxes Offlcialpaper Oleographs, chromolithographs, etc.. Print paper Plain Sand and emery paper . . Cash registers Telegraph and check forms Typewriters Wall paper Wrapping paper Comptometers and adding machines . . On account of the high import duty on cut and printed paper, there are many small shops that import the better grades of paper suitable for writing pads, etc., in standard sheets and then cut them up and rule them for the domestic trade. Nearly all importers of general merchandise buy certain amounts of paper, such as print paper, wall paper, writing blocks, etc., which they handle at wholesale and retail. The largest stationery stores in the country, with branches in Cartagena, Barranquilla, and Bogota, are those of J. V. Mogollon y Cia. 372 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. Exports of paper, paper products, and ink from the United States to Colombia curing four recent years have been as follows: Articles. Fiscal year 1916. Fiscal year 1917. Calendar year 1918. Calendar year 1919. Pounds. Value. Pounds. Value. Pounds Value. Pounds. Value. Paper: Bags Books, music, maps, engrav- ings, and other printed matter Boxes and cartons $3,591 237, 974 6,110 $5,600 113,932 11,275 $5,834 64,804 6,524 $11,592 205,129 8,638 3,399 1,842 20,666 14,735 1,173 75, 437 109,359 29,410 1,375 1,606 83,672 175,932 67,309 Carbon paper 2,017 794 1 705 Cash-register and adding-ma- chine paper ' 139 12,557 Paper board and straw-board 11,723 24,013 22, 797 Paper hangings 12,516 10,835 Playing cards . . 539 36,115 33,711 413 135,360 155,294 252 45,416 61,005 9.344 Printing paper News print.. 1,437,537 685,463 3,307,996 1,881,711 832,986 561,986 1,279,681 941,809 Allother Tissue and toilet paper 1 Towels and napkins 1 ... 460 2,100 79, 518 89,744 25,042 Wrapping paper 838,627 749, 764 40,340 81,220 39,907 52,606 78,544 87,682 888,583 871, 737 Writing paper and envelopes. . . Allother Total paper and manu- factures of 1,215,620 688.310 415, 279 811,274 Ink: Printers' 7,195 12,035 11,220 5,479 7,831 8,405 24,260 All other 8,241 1 Included in "All other" prior to 1918. In 1919 there was a very large shortage of paper and paper prod- ucts in Colombia, and buying in the United States was heavy during that year. The chief complaints were caused by bad packing methods. News print shipped in flats, rolled, should have tne ends of the packages protected with round boards to prevent damage in handling, because, if the ends are frayed, the shipment can not oe used for news print and a loss to the importer results. Other higher-grade papers, used for cutting into pads, blocks, accounting forms, etc., should be packed in the pressed crate with flat, light boards at top and bottom extending over the edges and with straps at the sides and ends. Bracing cleats at top and bottom should be nailed on from the inside out and not from tne outside in, since the former method prevents the clinched nail from working loose and cutting into the contents of the pressed crate. Several American manufacturers of paper and paper products, controlling large factories, have recently investigated tne Colombian markets for paper in all forms, and it is to be hoped that these first- hand investigations by experts in the line will result in better pack- ing methods, suitable to the transportation requirements of the country. Except for cardboard-boxed envelopes and small paper articles, the usual wooden packing case should not be used for Colombia, since, no matter how well packed inside, the contents, during many handlings, have some movement which damages them more or less seriously in tune. The pressed crate, as described, is the better MARKETS FOR ^SPECIFIC CLASSES OF MERCHANDISE. 373 method, and this packing is also lighter, effecting a considerable saving in duties for the importer. CONSTRUCTION MATERIALS AND MACHINERY FURNITURE. For a comprehensive account of the Colombian markets for build- ing materials and equipment, the reader may be referred to the monograph entitled "Construction Materials and Machinery in Colombia," by W. W. Ewing, published by the Bureau of Foreign and Domestic Commerce as Special Agents Series No. 160. This contains 75 pages and 5 halftone illustrations and may be obtained for 15 cents from any of the district or cooperative offices of the Bureau or from the Superintendent of Documents, Government Printing Office, Washington, D. C. " Colombian Markets for American Furniture," by Harold E. Everley, issued by the Bureau as Special Agents Series No. 162, sells for 5 cents. It has 34 pages of text. APPENDIXES. Appendix A. REQUIREMENTS TO BE OBSERVED IN SHIPPING GOODS TO COLOMBIA. 1 BILLS OF LADING. A set of five copies of the bill of lading is to be presented at the steamship company's office the day before the steamer sails, together with one copy of the consular invoice. To one copy of the bill of lading for shipments going to Buenaven- tura and Tumaco must be attached a 20-cent Colombian revenue stamp, which is obtainable at the Colombian consulate (17 Battery Place, in New York). Each bill of lading must contain: Name of shipper, name of con- signee at the port of entry, name of steamer, number of each package, number of packages of different kinds, weight (gross) in kilos (1 kilo = 2. 2 pounds), and total value of shipment. The bills of lading two or more copies are returned by the steamship company -on the day of sailing, with the amount of the freight written on them and duly signed by the steamship company's agent. One copy of this signed bill of lading is mailed to the consignee with one copy of the consular invoice. COLOMBIAN CONSULAR REQUIREMENTS. Make five copies of the consular invoice ; duplicator or mimeograph copies are allowed. Take four copies to the Colombian consulate on the day before the date of sailing and one to the steamship company. The consul returns one copy duly signed and certified, and with one 20-cent stamp attached (for each page used), on payment of consular fees. The stamped copy returned by the consulate must be mailed to the consignee, as that 'is the copy which lie must present at the customhouse at the port of entry. Following is the schedule of Colombian consular fees : First class: Free. School books and school supplies; plants; live animals; agricul- tural seeds; serums and medical vaccine; textbooks; gold coin and gold bars not less than 0.9000 fine. Second class: One per cent. Machinery; tools for industrial purposes; agricultural implements; fertilizers; sulphuric acid; sulphur; mining supplies; buildings of iron and wood; rough timber; roofing materials; barbed wire; staples; piping of iron, steel, etc.; manila, sisal, and hemp rope; metal cables; wire cloth; wire for electrical conductors; metals in sheets, bars, and pigs; pumps of all kinds; salts of soda for the treatment of metals. Th'td class: Three per cent. All other merchandise. Revised, August, 1919, from statement by the Consul General of Colombia, New York, September, 375 376 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. The above rates are charged on the value of the invoice, as declared by the shipper. The value declared must be accurate and figured as f. o. b. steamer. Under the law of Colombia the customhouse has the right to take for the use of the Government any shipment of merchandise at the value declared by the shipper. This right nas often been exercised in cases of undervalued goods. All consular invoices must be written in the Spanish language and contain, neatly stated: Name of shipper, name of vessel, names of consignee and owner of goods, mark and number of each package, number and kirid of packages, contents of each, net and gross weight, partial values, and total value of shipment also, in a separate Tine, the sum total of the freight, insurance, and commission (if any) to the port of entry. It is important to remember that, in case the freight is not known exactly before the presentation of the consular invoice, it must be estimated (from the steamship company's freight rates) as closely as possible. No consular invoice is signed by the consul before these require- ments are complied with and the consular declaration made. All copies of the consular invoice must be signed by the shipper or his representative, dated, and above the signature must be written the following declaration, in Spanish: Bajo juramento declaramos que los precios anotados en este documento son loa mismos que cargamos al intersado en la factura comercial y que los pesos de los bultos estan dados correctamente. Which, translated, means: Under oath we solemnly declare that the prices stated in this document are the same as charged to the customer on the commercial invoice, and that the weights of the packages are given correctly. A false entry may lead to the seizure of the goods at the custom- house, as may also a fraudulent declaration of weights. Duties hi Colombia are charged on the gross weight that is, weight of the goods, container, wrappings, etc. Shippers to points in the interior of Colombia must consign to an agent at the port of entry. No "To order" shipments are permitted in Colombia. MISTAKES TO BE AVOIDED. Don't forget to have each package numbered and marked dis- tinctly. Don't wait until the last moment to make out your shipping papers. Don't undervalue. Don't make false declarations. Don't enter false or mistaken weights. Don't fail to follow instructions of your client regarding declara- tion of goods that is, customs classification, etc. Don't fail to use Colombian customs tariff serial numbers for classification. Don't forget that duties are assessed on the gross weight andt hat too heavy packing means a loss for your customer. APPENDIXES. 377 Don't fail to have your packing list and invoices agree with serial and lot numbering of packages, and the packing list agree ,with contents of packages. Don't fail to remember that the Colombian customs tariff is rather ambiguous in many respects with regard to classification of goods and that your client knows this tariff, is the best judge of such classification, and is in a better position to combat fines and claims than you are. Don't fail to insure goods through to destination, not merely to port of entry. (The greater proportion of loss occurs in the interior.) Don't forget that parcel-post shipments are assessed on the highest value of goods contained and that each class and quality of merchan- dise must be packed hi separate packages. Don't fail to insure parcel-post shipments through to destination, not merely to port of entry. Don't fail to use waterproofing for shipments into the interior where mule transport is used. Don't fail to remember that your customer will appreciate your attention to these details, which prevent trouble, expense, and delay on his part, and that export business with Latin America depends on careful attention to detail and a wide knowledge of the little things. Appendix B. PROPER PACKING FOR SHIPMENTS TO COLOMBIA. Packing by American exporters is the chief source of complaint on the part of the Colombian merchant against the United States, and is the cause of 90 per cent of the commercial disputes, difficulties in collecting accounts, etc. After an exhaustive study of the subject, which has included the inspection of the entire cargoes of American, English, French, and Spanish steamers bringing cargoes of merchandise to Puerto Colombia and Cartagena, the writer is convinced that American firms shipping goods to Colombia will have to pay more attention to packing if their trade with that country is to continue in satisfactory volume. RELATION OF PACKING TO CUSTOMS DUTIES. Customs duties are assessed on the gross weight of the package imported hence the necessity for packing goods in containers as light as possible. There have been many cases in which goods, such as high-grade silk ribbons and similar articles, have been ordered packed in waterproofed bales but have been deliberately shipped in heavy wooden boxes on which the importer has been forced to pay a duty of 5 Colombian dollars per kilo (2.2 pounds), the actual weight of the goods being only a fraction of that of the heavy packing cases. No merchant can pay 5 dollars per kilo in duty on pine lumber and make any money. As proof of this, it may be stated that, when this report was written, there were several stocks of such goods lying in storage at Cartagena which could not be sold at the prevailing com- petitive prices for similar articles on the market, and they thus represented a dead loss to the merchant importing them. There are cases hi which a box, much too large for the goods con- tained, has been filled with waste cloth or paper, on all of which the merchant in Colombia pays the same duty as on the goods them- selves. Many times the importer refuses to accept the shipment, which is then held by the customhouse for payment of duty, and, finally, is often sold at auction for the account of the Government. If the buyer does not take the goods, the exporter may order them returned, but is forced to pay the duty in any case before they can be moved. EFFECT OF INCORRECT PACKING METHODS. The general result is that the Colombian merchant frequently becomes keenly dissatisfied with American packing methods and looks for a renewal of his old European relations, while the American exporter on the other hand says that the Colombian trade is not worth while and is only prolific of trouble. It is believed that a canvass of such cases in Colombia would show disputed values running into hundreds of thousands of dollars at this time. Hundreds of cases of this kind have been brought to the writer's attention. The effect of such a condition on American trade 378 APPENDIXES. 379 with Colombia and other Latin American countries must not be underestimated. An immediate remedy is imperative. If he can, the Colombian merchant much prefers to do business with New York, because shipments are more rapid, with good deliveries. He also likes American goods and .American business methods, but his trade is likely to revert to Europe if our present packing methods are continued. Volumes might be written on this subject. It would be well if the American exporter could come to Colombia and inspect the incoming American cargoes; could go over the numberless letters claiming (and rightly so) reductions on account of excessive duties resulting from the ignoring of packing instructions; and could listen to the complaints on every hand of breakage, loss by theft on account of broken packages, confusion of numbering, excessive expense charges, etc. Proper packing is one of the most effective sales factors. A package of good appearance inspires confidence in the goods con- tained and snows care and appreciation on the part of the exporter, as well as an understanding of local conditions and an intelligent knowledge of ways and means. NECESSITY OF IMPLICITLY FOLLOWING INSTRUCTIONS. In the word " instructions " is embodied the keynote of all packing of goods for Colombia. It is really very simple. Follow the buyer's instructions regarding packing. Yet this is the very thing that is seldom done by the American exporter. He does not take into con- sideration that there is a very good reason for these instructions, that they are necessary, and that the buyer knows his business and knows what he wants and why. When packing instructions are not followed the American exporter is courting trouble and the possible loss of a good customer. He causes the goods to cost more than his European competitor's, and he makes the Colombian buyer angry on account of his lack of atten- tion to instructions, involving great loss of tune, extra expense, etc. The Colombian merchants Know how goods ordered by them should be packed and will gladly furnish detailed specifications if asked for them, recommending materials to be used, sizes and weights of packages, etc. In many cases Colombian purchasers have made visits hi person to New York houses, placing orders for large stocks of goods, and spend- ing some tune giving personal instructions as to packing, etc. The American house has accepted and shipped the order, but has entirely disregarded the packing instructions. The result is that the Colom- bian merchant, upon seeing the shipment, says that he can not con- tinue to do business with that particular house because they will not pay attention to his own verbal instructions, after promising faith- fully to dp so and receiving the order on that basis. It is universally held, and rightly so, that no exporter has a right to accept an order embodying special packing instructions and then disregard them entirely. If conditions are such that the particular goods can not be packed according to instructions, the least that can be done is to advise the buyer of the fact and ask him for further instructions, explaining the packing method to be followed. 380 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. EXPORT HOUSES AND FACTORIES. Export houses that have been doing business with Latin America for some time undoubtedly know how goods destined for these coun- tries should be packed and have on hand considerable information regarding special items for certain districts or countries. There seem to be two principal causes for the failure of these experienced export houses to pack goods properly for Latin American trade. One of these is faulty organization in the office of the export house. The most usual way is for the business to be divided into departments by commodities, such as chemical buying department, textile department, etc. The heads of these various departments are, of course, specialists in their particular line, but they know very little about the country to which the goods are going and less about prac- tical shipping and packing methods this detail being left to the shipping department, often composed of new men without foreign- trade experience and unfamiliar with conditions in Latin America. The result is seen in improved buying methods and a saving in costs, but a packing situation that is sometimes disastrous to trade. It is believed by the writer that departments should be organized on a different plan. Heads of departments should be hi charge of a cer- tain country, or group of countries where conditions are similar, and should be intimately informed concerning requirements in those countries. Every individual order, whatever variety of merchan- dise is involved, should be followed throughout bv such heads of de- partments, who should supervise the packing, billing, shipping, etc. The head of the department should be made responsible for each order passing through his hands. This system makes for a comprehensive detailed knowledge of the country to which the goods are destined, and it operates to prevent mistakes. The other cause is the lack of cooperation between the manufac- turers and the export houses in the matter of packing; for a discus- sion of this subject, the reader is referred to page 346. ADVANTAGES OF PROPER PACKING. Proper packing is often less expensive than the wrong kind. It costs less to pack a bale of cotton cloth in one wrapping of heavy paper, one of waterproof "tarpaulin," and one sewed covering of heavy jute, than it does to place it in a heavy pine box. In the former case the weight for the packing is less than 1 kilo per bale, resulting in a saving of packing costs, freight charges, duties, and extra handling. That the American manufacturer can pack goods properly for ex- port is witnessed by the articles shipped by several large specialty nouses, such as pianos, phonographs, sewing machines, weighing scales, inks, drugs and patent medicines, etc. These concerns have made a study of their Fine and of the countries to which they ship their product and have evolved a packing case, or bale, that is strong, light, and well adapted to the particular article contained. There are no complaints of breakage or loss from these items, and such goods and nrms are held up by the Colombian merchants as shining examples of what can be accomplished by attention to detail and knowledge of conditions. The trouble lies with the general run of APPENDIXES. 381 export merchandise and with the average factory and average export house, making up the largest bulk of the total exports from the United States. PACKING SPECIFICATIONS FOR COLOMBIA. In the following pages are given packing specifications for all important items imported into Colombia : CANNED GOODS, BOTTLED GOODS, ETC. For canned and bottled goods, the usual boxes or cases are good if they are properly reinforced at corners and edged with iron strapping at least i inch in width. This prevents breakage of cases (in the event of a fall), splitting at the ends, etc. Good end pieces should be used to insure secure nailing. In the case of bottles, divisions should be provided to prevent movement in cases and consequent breakage. Sawdust, etc., adds to weight. A very good scheme for conveying the idea "Handle with care," "Glass," etc., is to provide a good stencil showing a wine glass. An ignorant stevedore who can not read the signs can thus see at a glance that the case contains glass and should be handled with care. This device is used to some extent, and the men know these picture signs, which result in increased care in handling. Wines, etc., are shipped from Italy, Spain, and France for export to South America in the wicker baskets described below, under "Chinaware." These baskets are charged for and are liked by merchants. Cement is packed in barrels of the usual size. Barrels should have iron "rolled" hoops at both ends. There should be heavy ends, or heads, reinforced with cross- piece of wood nailed through rim and fitting into bevel of rim. There are many^ complaints of breakage and loss due to careless handling by steam- ship companies, in loading and discharging. Some shipments of cement have re- cently been received in Colombia with a total loss of 40 per cent of contents. The method of packing above set forth has given the best results in the past and was con- sidered superior to the European method the barrels being better on account of the rolled-iron hoops and cross-braced head. CHINAWARE, TABLEWARE, POTTERY, ETC. These articles may be packed in specially constructed crates, oblong in shape and of light, wood, reinforced with iron strapping at corners and edges. Crates should be strong enough to prevent crushing in cargo slings when they are being loaded and un- loaded from steamer. They may also be packed in "huacales," or frame crates made of natural wood, round and cut-in woods bracing put through holes bored in main sections; facing of bark, etc.; dishes packed in wheat straw, each crate containing one size of plate, cup, or dish. This prevents loss of space and avoids undue movement, preventing break- age. This form of packing for dishes is to be recommended, since these frame crates can be easily and cheaply made by unskilled labor in outlying country districts. Their main quality is their elasticity, a rough jolt causing them to "give " just enough to avoid a jar to the contents. Another form of packing used for high-grade china is the wicker or willow basket. This is constructed of rough willow, inch in thickness, and is provided with a hinged cover. The basket is also very elastic and absorbs the jar of a fall. These baskets are charged for on invoice, are sold in Colombia by merchants for clothes baskets, burro panniers, bottle containers, etc., and forma very useful article of com- merce. Expert care should, of course, be the rule in the actual packing of contents. This is a matter of experience and knowledge. All American china and glass ware is now shipped into Colombia in barrels, and merchants report a breakage of at least 40 per cent. Barrels are too large to permit the selection of one size of dish or article; they donot "fill " well, and the contents work to the bottom, causing breakage. Barrels are also wasteful of ocean freight space and are easily broken in handling. 382 COLOMBIA: A COMMERCIAL AND INDUSTRIAL HANDBOOK. CLOTHING. When one is shipping ready-made clothing that has laces, silk trimmings, or other adornment which takes a much higher rate than the garment itself, such trimmings should, according to instructions from buyer, be removed and packed separately, but should be properly numbered, so that they can be replaced on the right garment for display and sale. FURNITURE. Furniture should be packed in crates (open) and should be cross braced to prevent collapsingin cargo slings. Wrapping should be of excelsior, paper packs containing excelsior, or other similar material. Varnish or finish should be well dried and backed before wrapping to pre- vent sticking. Skids should be bolted under heavy pieces to facilitate rolling. Bracing should be provided inside or cases or crates containing mirrors, etc., to pre- vent movement; and protection to glass should be provided by means of a light wooden cover over it. Mirrors from France are preferred on account of the good packing. This style of mirror has a heavy and ornate frame of gold, enamel, and plaster work, and needs ex- treme care in packing. The edges should not touch the case or crate in any place, and the article should be laid in heavy elastic material such as excelsior. Most furniture from the United States is well packed, and breakage is due to careless handling by transportation companies. This condition has become so bad that Colom- bians will not buy expensive furniture in the United States unless dealers guarantee safe arrival at destination, with compensation for loss by breakage or other damage. Dealers are loath to give any such guarantee because it is almost impossible for them to collect from transportation companies in case of damage. In this connection it is to be recommended that someone that is, the dealer or the transportation com- panies be made responsible for damage, and, where more than one company has handled goods to which damage occurs, all should be made to pay a pro-rata share of the compensation. More care would then be taken. GENERAL MERCHANDISE. Packing cases for general merchandise should be as light and as strong as possible . Cleating of edges is not to be recommended, as these catch in other cases and soon become broken. As cleats are held with nails, a cleat is only as strong as the piece of wood holding the nailing, and it therefore only adds to the weight of the case with- out adding to its strength. Iron strapping is to be used in every case. This holds the nailing in place and prevents splitting of cases in case of a heavy fall or blow. Whenever waterproofing is specified, and when merchandise is destined for transport in the interior, wooden packing cases containing valuable goods should be protected against rain. This is done by means of a covering of tarpaulin outside of the box or case, which in turn is covered with an outside protection of heavy jute, sewed to size and fit. Where tin cases are used, these should be braced with wooden supports in the inside to prevent mashing. An inside added protection of tarpaulin should be provided, as tin is often punched full of holes. GLASS. Following is a description of the English and German methods of packing window Gnes first, second, third, and fourth selections (grades); 100 pieces in each wooden x; sizes up to 70 by 90 centimeters (27.3 by 35.1 inches): The glass is packed in wooden boxes divided into four compartments by means of sliding partitions fitted into grooves cut in the sides of the boxes, which are made to fit the sizes of panes shipped. Each pane of glass is laid in thin, cheap paper (between each pane), with 25 panes to each compartment, each lot of 25 panes being wrapped in heavy paper and tied. Each package of 25 panes is again wrapped in straw, but this straw is tied onto the package with cord and nicely fitted into the compartment in the packing case. Around the middle of each packing case, on all six sides, there is nailed a heavy cleat. This cleat serves a double purpose. It imparts great strength to the packing case and at the same time prevents the piling of many cases one on another; so there is no breaking, by pressure, of the cases underneath the pile. Square nails are used, as these hold much better in the wood than the ordinary round wire nail. Iron strapping is used on the edges of the packing cases. APPENDIXES. 383 Goods packed in this way are received in perfect condition, even after eight trans- fers to reach Bogota. American glass received in Bogota during the war usually arrived with as much as 60 per cent broken. Little more glass will be ordered from the United Stated unless ex- porters assure buyers that glass will be packed properly and breakage prevented. As an exception and an example of adequate packing, it may be noted thatshipments of window glass from an American company to importers in Medellin have been re- ceived in good condition with less than 2 per cent of breakage (a record for Colombia), after being handled no less than six times en route to Medellin and receiving very rough usage throughout, as the appearance of the boxes testified. These shipments were packed according to the packing specifications for window glass outlined above, except that, instead of sections running transversely (in a wider box), the sections were put in longitudinally. Where the panes shipped are small say 12-inch it is better to put in sections transversely. The purchasers were glad to see the use of very light wood for the main body of the packing cases containing this glass, and also the careful application of heavy edge bracing, reinforced with strap iron. HATS (MEN'S FELT). Italian felt hats are packed for export to Colombia in long bales, nicely wrapped in heavy, flexible paper next to the hats; then there is a wrapping of light amd strong tarpaulin (for waterproofing) sewed to fit exactly, and then a heavy outer covering of bagging, or heavy jute, also sewed to fit exactly. The hate themselves are placed one over the other, those of the same size and style being arranged together in order that each hat may fit well into the next one, thus leaving no space for rubbing or movement. The hat at the lower end that is, the first hat used is filled with soft paper so that the shape may be retained. Between each hat there is placed a piece of tissue paper to protect it from rubbing. This makes a solid bale or bundle, waterproof and light in weight so far as packing material is concerned; the contents can not move about, and they keep their shape. Bales packed in this manner were inspected by the writer after their arrival in Medellin and were all found to be in first-class condition, clean and not damaged in any way. All the merchant had to do was to unpack the goods and crease the felt hats, to place them on display for sale. These hats are of cheap and medium grades and retail in Medellin for 5 Colombian dollars, costing at wholesale about 2 dollars each. The writer saw American hats of cheap and medium grades that had been packed in somewhat the same manner, but, on account of inexpert packing and lack of attention to detail, the hats were received in a very bad condition' wrinkled, soiled, and in need of reblocking before they could be placed on sale. HARDWARE. This line is too comprehensive and varied for one to specify each article or class of articles. Valuable fittings such as brass valves, for example should be well crated, packed in straw, and protected against pilfering by a wire mesh inside of crate. In no case should contents be left loose, as this causes movement, damage to goods, and breaking open of cases or crates. Bolts should be packed in good boxes, well strapped, with cross-braced heads. Nails should be shipped in kegs made with iron turned hoops and with cross-braced heads. At present a% kegs are made with heads much too light to withstand the handling received. On all cases containing heavy iron or steel goods, iron strapping at edges should be extra heavy, 1 inch in width and nailed with "box : ' or "clinch" nails. All other general specifications apply. MACHINERY. Cast iron is brittle and will not stand a bad jar or fall. However well packed, a blow will break it. Packing is necessarily very heavy to withstand the great weights. Nevertheless, broken machinery is the chief cause of complaint in Colombia on the part of machinery importers. Investigation shows that machinery is universally well packed by American exporters, but that the trouble lies with the steamship companies, or, rather, the stevedoring companies that contract for the work of loading ships. 384 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. These latter companies are inexcusably careless in handling machinery, often very valuable. The remedy seems to be in supervision of such shipments by the steam- ship company, which should be made responsible for damage. Extra charges are made for "heavy lifts," etc., so there can be no good reason for such a condition as exists to-day in the handling of machinery by ocean service. Machinery from England arrives in excellent condition and is no better packed than American goods of a like nature. The system now in vogue of contracting the loading of all ships of one company to some stevedoring company at so much per ton is responsible for this condition, the result being the effort to get the ship loaded with as few men and in as short a time as possible, involving breakage and careless handling of valuable machines which can only be replaced or repaired at great expense and with much loss of time. Two recommendations can be made, applying to machinery shipments. One of these is the use of heavy skids under cases containing heavy machinery (say 500 pounds and up), being two in number, placed on edge, beveled at ends, to facilitate sliding on rollers; and the skids should be bolted, not spiked to the case. Bolts should be countersunk to avoid interfering with dragging or rolling operations. These skids also lend greater longitudinal strength to the packing case and prevent breakage of cast iron in long pieces by a pull in the middle by a winch, for instance. Another recommendation is that of crating such machinery as gas engines (sta- tionary), oil engines, etc., where flywheels are used, in such a manner that the fly- wheels, disconnected from the piston rod at the crank, can revolve and, being exposed to revolve freely, act as rollers for the machine, which can be easily lifted at one end and rolled to wherever it is wanted. Sawdust packing is not desirable, as the parts, usually small and delicate, soon work together at tne bottom of the box and become damaged or broken. The best method is to wrap carefully in an oiled paper, tied and packed in straw or excelsior, with several partitions made in the box for important parts. Sectional bracing should always be used in packing cast-iron parts or delicate machine parts. Partitions not merely nailed to side of case, but set to cleats should separate all pieces contained in the same case, and cross braces and blocking, securely nailed, should be used to prevent movement and jar. No one piece should touch the other. Special charges are made for export packing, usually running as high as 10 per cent of the cost of machinery. Delicate machine parts should be packed in tin-lined cases. These tinned cases are made to fit and are soldered inside of the packing case. PAPER AND PAPER PRODUCTS. With the exception of news-print paper, which comes in heavy and very hard rolls, covered with a heavy building paper, and is well protected by the very hardness of the roll itself, there is much complaint with regard to the packing of paper and paper products. Packing of writing paper, sheets, wrapping paper, tissue paper, etc., should be in pressed "bales" that is, the bale of paper held in place by the necessary number of wooden frame pieces crossing the top, and fastened with iron straps at the edco.<. The contents should be first protected by a layer of heavy cardboard or other similar material. In a good pressed bale the paper can not move, while the contents can be readily seen and inspected by customs officers and are always received in good condition. This system is very good and can be used for an endless variety of similar goods. If sizes of sheets of paper do not allow crating to be used and a roll is made, the roll should be protected by a cylindrical crate, not solid cohering, but open work, reinforced by strapping at edges, etc. There should be solid heads for proper nailing. Boxes or cases are not goodj the paper moves too much and is received in a damaged condition. A blow, breaking the wood of the box inward, will do a great deal of damage to many sheets of paper. The movement inside also spoils the paper. It is impossible to pack a box tightly with paper of varying sizes and keep it without movement. PLUMBING AND TOILET ARTICLES. Small nickel-plated fittings should be packed in crates in straw. Nickel-plated piping should be wrapped with burlap, building paper, or some such article. Toilets should be crated with light but strong crates; this is done at present, but crates are not cross-braced as they should be to prevent collapsing by side pressure in cargo slings during loading. Where articles are small and there is danger of pilferage, wire mesn should be used inside of crates. All other general specifications apply. See "Marking" (p. 387). APPENDIXES 385 SHOES, SLIPPERS, ETC. Shoes, slippers, etc., should be packed in cheap fiber trunks, charged for on invoice. Pasteboard boxes should be removed and each pair of shoes carefully wrapped in tissue paper with an outer wrapping of heavier paper. Patent-leather shoes should be wrapped in special oiled or waxed paper to prevent sticking to. leather in hot 'climate. In no case should tissue paper be put next to patent leather. The trunks should be filled to the limit of their capacity to prevent movement of contents and consequent ''rubbing." The style and type of trunk should be according to the buyer's selections. TEXTILES. Cotton goods. Cotton goods should be packed in pressed bales made up on special hydraulic press. The size yaries according to the width and the number of pieces. For mule transport the weight should not exceed 65 kilos (143 pounds). Heavy- paper should be used, covered with tarpaulin cut and sewed to size of bale; this is the waterproof material employed, and it also protects the goods from- damage by hooks, etc., in transit. The outside covering should be a heavy jute sewed to fit the bale. The fastenings should consist of iron straps 1 inch wide placed transversely and cut to right size (length) with patent fastener, there being two buttons on one end and slots to fit at the other, making it possible for the bale to be easily opened for inspection in the customhouse. These bales are very hard and well pressed and can be immersed for some time in water without damage to goods. Markings should all be stenciled. The color used for serial numbering should be red, which is readily distinguishable by customs officials and merchants receiving goods. It may be noted that a bale of this kind containing 600 kilos of goods does not have more than 600 grams of tare. Silks, etc. Silks should be packed in pressed bales similar to those described above, but not so tightly pressed (in order to prevent "breaking' ' of silk). For smaller pack- ages a lighter weight of "tarpaulin' ' is used, sometimes made of tarred paper. Where goods are very valuable, a wrapping is made of some wire mesh to prevent pilferage in transit. Where goods are destined for the interior, or are manufactured articles of great value, such as special silks, laces, etc. , a tin case, made to fit, is used with interior wrappings the same as above mentioned. All light boards used for pieces of goods should be removed, as silks carry a very high duty and the weight should be reduced as much as possible. Other general specifications also apply. Shirts, stockings, underwear, towels, handkerchiefs, table linen, etc. These articles should be packed in pressed bales similar to the above. All other specifications given above also apply. Laces, embroideries, edging, etc., fancy and plain. These articles should be packed in pressed bales, waterproofed with tarpaulin, and covered with light jute. Bales should be carefully built up and sides protected with a light board to take "bite" of iron straps or "cinches." If goods are very fine and valuable, a light wire mesh, inside of the jute outside cover, should be used to prevent pilferage. All heavy wooden 01; cardboard centers on which laces, etc., are wrapped should be removed and only the lightest cardboard used. European laces come laid out in long lengths, between paper only, to mark divisions of different styles, etc. Heavy cardboard "centers" add to weight and hence to duty collected in customhouses. Wrapping of muslins, percales, etc., for display in Colombia. Dress goods should come in bolts measuring 20 or 25 yards, according to the instructions of the purchaser. This exact length contained in the bolt of cloth allows a fixed number of dress pieces to be cut from the bolt, without remnants. These lengths have been established by long usage and custom in the country and are followed by English manufacturers. Each bolt of cloth should carry an artistic card and a marking ticket on which the number of meters (and also yards) is shown, together with the lot number and the serial number, both of which must agree with invoice and packing lists. The writer inspected a lot of American cotton prints on which the yardage of each piece was not marked, merely the total yardage of the lot being given (200, in this case). This made it impossible for the wholesaler-importer to know how many yards there were in each bolt of cloth without counting each piece. This meant extra time and ex- pense to the purchaser. In the English practice each piece (bolt) is wrapped in a hard glazed paper, either blue or pink in color, and is tied with a red tape running lengthwise. This wrapping paper is folded under edgewise into the center of the piece of goods, being held by the fold in the middle. The cloth can easily be seen and examined from the ends. In no case should ends of pieces be wrapped, as this makes the contents invisible and the paper has to be torn to examine the goods. 37558 21 25 386 COLOMHIA: A COMMKHCIAL AMI i.\i.rsTi;i \i. IIANHBOOK. After the wrapping has once been torn, the goods soon become dirty, and torn papT presents a poor appearance to the customer visiting the importing wholesaler, who is always jealous of the appearance of his sample room. Knglish muslins, percales, whirl- ings, and even cheap cotton prints seen in showrooms of Colombian importers always look new and bright and make a very pleasing impression, even when the material is inferior in quality. YARN. In order to retain a hold upon the Colombian market for yarn, more attention must be paid by American shippers to the method of packing. The use of a light waterproof wrapping (tarpaulin) of good quality and of one piece is requested by Colombian im- porters of yarn. Too frequently a heavy grade of tarpaulin is used by the American exporter, thereby causing higher duty rates. Since the covering is used by the Co- lombian consumer for the repacking of goods intended for the interior, he appreciates the use of one large piece rather than three or four of smaller size. 1 Moreover, it is recommended that the bales of yarn be more carefully pressed in order to reduce the cubic volume of the bale, and thereby the freight rate as well, since ocean freights are based upon cubic measurement. European methods of packing yarns have been found very successful. Bundles of yarn of 10 pounds each are first pressed separately and then an entire bale, consisting of a number of such bundles, is pressed. In this way a decrease in volume of 12 to 18 per cent has been secured. It is readily seen that in the course of one'year, during which time 25,000 to 30,000 pounds of yarn are imported monthly, the saving in freight alone would amount to a considerable sum of money. USE OF FIBER CASES. A cheap fiber case is much used in Europe for the shipment of various articles, such as umbrellas, shoes, bric-a-brac, hats, etc. These cases cost but little, have the advantage of lightness combined with great strength, and can be used in Colombia for repacking goods destined for the interior. They are also much used for travel baggage, storage of stock, sample cases, etc. No objection is made to their cost being charged on the invoice. Care is taken that the articles contained do not leave space unoccupied. For example, if um- brellas are packed, a case of the right length is selected not one too long, to be filled with waste cuttings or paper, on all of which duty would have to be paid, as on gross weight. Another- advantage of the fiber case is that it is flexible and elastic, absorbing the shock of a fall -or blow and reducing the chance of breakage to a minimum. Corrugated paper cases are not to be recommended, as they are too easily smashed by other cargo and soon become torn and broken, with the contents exposed to pilferage. SPECIFIC EXAMPLES OF UNSATISFACTORY AMERICAN PACKING. A case of American goods was received in Colombia in which flat- irons were placed in one end and enameled ware in the other, a light partition being nailed in between without the use of cleats for the partition support. The result was that the heavy flatirons, in moving back and forth in transit, soon knocked the partition out and mixed with the enameled ware, completely ruining it for sale or use. Such articles as flatirons should be simply tied in a bunch, with proper shipping tag wired on, and put into a piece of sacking. Cases containing shirts nave been found with boxes double the required size, the rest of the space being filled with waste paper. The merchant was forced to pay duty on the entire gross weight and lost heavily, not being able to sell the shirts at a price to compete 1 Samples of the tarpaulin nsod and preferred by the Colombian merchants mav be inspected at the Bureau of Foreign and Domestic Commerce or its district offices upon reference to file No. 40258. APPENDIXES. 387 with his rival in the line. These shirts should have been shipped in a bale, pressed and waterproofed. Another case that may be mentioned is that of a shipment of small round mirrors to Medellin, Colombia, from New York City. The mir- rors themselves were packed nicely in strong pasteboard boxes, made to size and designed to contain a certain number of mirrors. A large case was selected to pack them for shipment. This box was of heavy wood, almost 1 inch thick, the weight being too great. Half-inch lumber, well cleated and iron strapped, would nave served the purpose just as well, since the goods contained were not very heavy in relation to their bulk. The result was extra duty for the Colombian merchant to pay. Moreover, the box selected for packing was not of the right size. After the order had been packed it was discovered by the packer that the box was too large and that the order of mirrors did not entirely fill it. So waste from the factory, cuttings from the leather backs of mirrors, sweepings from the floor, waste paper, old cigarette boxes, pieces of twisted tin, etc., were collected and dumped into the box on top of the goods, and the cover was then nailed down. Naturally, in transit, some of the pasteboard boxes containing mirrors were damaged, and the dirt from the top of the case filtered down into the boxes and soiled the mirrors the whole case presenting a very sorry appearance when it was opened at Medellin. The pur- chaser (a large buyer of foreign goods, with a credit rating of half a million dollars) remarked that he formerly bought all his mirrors in France, and that he never received such a dirty shipment from that country; that boxes were always to size, light in weight, and strongly put up, with reinforcements, etc. He added that he did not like to pay duty of 1.60 per kilo on waste from the factory floor, or on a lot of extra wood from the United States. The above examples represent only three instances out of many that came to the writer's attention. IMPORTANCE OF MARKING. Marking is a very important matter and American packers should be more careful about it. Colombian customhouses complain that American goods are not properly marked; that the marks on cases, etc., do not always agree with invoices or manifests, causing endless trouble in location of cases, bales, etc. ; that the serial numbering of packages is not consistent; and that the whole is a bewildering series of old and new marks, unintelligible and almost impossible to decipher. In this same connection, merchants complain that packing lists are conspicuous by their absence and that the invoices do not show the goods contained in each case, bale, etc. The result is that an importing wholesaler is forced to unpack a number of cases, boxes, or barrels, as the case may be, to locate and check each list of similar items. This also makes it impossible for him to resell a closed case of goods, and he is put to the added ex- pense of unpacking and repacking. When packing lists are provided by American shippers, it is asserted tnat these do not agree with invoices, necessitating another check of goods. In English practice, all articles that are alike are packed together, and a separate list is shown on the packing list, with corresponding 388 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. lot and serial numbers, from which packages and contents can be readily noted and located. Proper printed forms are used for this purpose. English, French, and German packages are marked with red for serial numbering, and all markings are made with good stencils. There are no scribbled, undecipherable marks, and old, markod-up cases are never used. The average American packing case received in Colombia is a mystery to all but the man who marked it last, and it shows the use of old packing cases over and over again all of which makes a bad impression. Such cases look bad, make an unfor- tunate impression, and cause endless trouble, delay, and confusion. CARGO HANDLING BY STEAMSHIP COMPANIES AND OTHERS. As has been shown in the case of machinery, the best packing will not withstand careless handling by stevedores. However well packed and protected it may be, if a case of goods is thrown around regard- less of the consequences, it will finally give way and damage will result. From the appearance of American cargoes, there would seem to be a great opportunity for improvement in cargo handling. Careful and skillful handling does not involve any decrease in the rapidity of loading and unloading often the reverse, in fact. It is a question of knowledge and intelligent supervision, as also of train- ing and experience. With American cargoes, breakage is the rule rather than the ex- ception, and it is really discouraging to see the condition in which some American cargoes come out of American ships. Steamship companies should see the harm they are doing to American trade and should cooperate with the American exporter. HANDLING OF GOODS IN COLOMBIA. From customhouse to river steamer and from river steamer or rail- way to warehouse, all goods are handled in small, one-mule, two- wheeled carts. No four-wheeled wagons are used in Colombia. Usu- ally the streets are too narrow to permit of their easy use, and, also, the native mules are too light and small to drive up well in fours with heavy loads. Native stevedores, especially at the customhouses, are very care- less in handling merchandise of all kinds and can not read such notices as " Handle with care" or "This side up." The use of pic- tures to insure careful handling is recommended in every case. The design of a glass holding liquid will do more than anything else toward insuring "This side up;" the men can readily understand that the box is not to be turned upside down. MULE TRANSPORT. Large importing wholesalers in Barranquilla and Cartagena, as well as in Medellm and Bogota, generally repack goods for interior points where mule transport is used. This repacking is done upon receipt of order from the interior and according to order of purchaser. English cotton goods are often ordered packed at the factory for mule transport into the interior, but this necessitates a wide knowl- APPENDIXES. 389 edge of each district and the particular patterns wanted by each locality (these differing greatly), and the orders are for small lots. Such orders can be given by importers only when they have absolute confidence in the ability of the factory to carry out instructions to the letter. Bales are so marked and listed that the importer knows what is in each one and all about it. There is given below a list of cities and towns for which goods ordered direct must be packed for mule transport that is, the weight of each package should not exceed 150 pounds. A mule "carga is 300 pounds. Two packages are used to make the "pack" one on each side of the animal. In extreme cases, such as machinery, etc., a single piece of 300 pounds may be sent out, but in such instances there should be a prior arrangement with the purchaser, since such "cargas" involve the charging of a much higher freight rate by the mule packers. All goods for mule transport should be protected, where necessary, from damage by rain, mud, etc. Pilferage is not usual in the interior. Packers are fairly reliable in this respect. Most pilferage takes place on shipboard or at the port of entry and on such routes as the one up the Magdalena River to Bogota, on which goods are handled no fewer than six times before reaching their final destination. Following is the list of towns : Department of Magdalena. Towns: Valle de TJpar, Villa Xueva, Fonseca, Palmira. Route: Via Rio Hacha or Banco, on Magdalena River. Department of Atlantico . All goods for interior of Department repacked by Barran- quilla importers. Department of Bolivar. All goods for interior of Department repacked by importers of coast cities. Department of Antioquia. Towns: Nechi, Yarumal, Antioquia, Xare, Jerico, Sonson. Route: Via Magdalena River and Antioquia Railway to Medellin, thence by canoe and pack mule. Department of Caldas. Manizales, via ropeway from Dorada Extension Railway at Mariquita to end of ropeway line (not yet completed). Neira, by pack mule from Manizales. Department of Tolima. Ibague, via railway from Girardot. Department of El Valle. Cartago, by pack mule from Manizales. Buga, by pack mule to Cartago, thence by river steamer up Cauca River: also by river steamer from Cali. Department of Santander. Bucaramanga, via Magdalena River to Puerto Wilches, thence 20 miles by rail, thence by pack mule. Towns of Piedecuesta, San Andres, Malaga, Socorro, and Moniquira: Route, by pack mule from Bucaramanga. Department of Norte de Santander. Ocana, via Cucuta by pack mule; also from Banco, on Magdalena River. Pamplona, by pack mule from Bucaramanga. Department of Boy oca. Towns: Tunja, Boyaca, Sogamoso, Tasco. Route: By pack mule from Magdalena River stations. Department of Cundinamarca. Goods are repacked in Bogota for distribution to other towns. Department of Huila. Towns: Neiva, Garzon, Timina. Route: By canoes from Girardot up Magdalena River. Department of Cauca. Popayan, by mule pack via Guapi or Cali (Pacific coast). Department of Narino. Pastb, by mule pack via Cali or Tumaco (Pacific coast). Appendix C. REGULATIONS AND PRACTICES AFFECTING COMMERCIAL TRAVELERS. 1 PASSPORTS POWERS OF ATTORNEY. A commercial traveler from the United States, if an American citizen and if traveling for American houses this should be a prime requisite should supply himself before leaving for Colombia with an American passport. This passport should then be taken to tin- Colombian consular representative at the port of embarkation for his vise, authorizing the traveler's entry into Colombia. If the traveler is not an American citizen, he should procure a Colombian passport from the Colombian consul. The photograph of the trav- eler should appear on the passport. A special power of attorney is advisable in case the traveler should be charged with collection of accounts or have any reason to appeal- before the courts or any ministry of the Government for an}' official purpose or to enter into contracts with the Government. The power of attorney should be certified by a notary public, secretary of state of the State in which the notary resides, Secretary of State of the United States, and diplomatic or consular representative of Colombia. LICENSES. In Colombia a commercial traveler is free to transact his business without any further formalities on the part of the general Government after passing the customhouse. Some cities have a municipal tax, and the traveler must secure a license before exhibiting his samples. These are Cartagena and Medellin, where the tax is from $10 to $20 for the calendar year, payable into the municipal treasury. The license is issued by the alcalde on the presentation of the treasurer's receipt. No other formalities are required of a commercial traveler before he is permitted to begin business, and there is no restriction as to clientele. It may be mentioned, in passing, that the hotel registers in Colombia are inspected by the police. CUSTOMS TREATMENT OF SAMPLES. Commercial travelers must provide themselves with a consular invoice, in Spanish, covering their samples and fully describing them, which must be certified by the Colombian consul at the port of embarkation. On arrival at the Colombian port of entry a mani- fest must be made, in quadruplicate, bearing stamps to the value of $2.80, and presented at the customhouse with the consular invoice. Upon the clearance of the samples one copy of the manifest is returned to the traveler for use in the preparation of his manifest for reexportation, which must agree with the import manifest, except for changes through sale, loss, etc., of samples. If the trav- i This section is by Consul Isaac A. Manning. 390 APPENDIXES. 391 eler is not familiar with the customs regulations and practice, he will usually save time and trouble and, perhaps, money by making his clearance with the aid of some reliable importing house at the port of entry, which can be readily arranged for on arrival. Samples of no commercial value may be imported free of duty and without bond or security. All other samples may be imported temporarily upon payment of full duty, with a refund of 75 per cent of the duty upon their reexportation. If the traveler fails to reexport all the samples, the refund is lim- ited to 75 per cent of the duties on the samples actually reexported. Reexportation may take place through any port. The refund of a part of the duties may be made at the customhouse of original entry, on presentation of the manifest, and due notification by the customhouse through which the samples were exported, or the traveler, when pay- ing duty at entry, can arrange by telegraphic advice for refund at port of reexportation. In the former case, the copy of the manifest of reexportation received by the traveler should be sent, properly in- dorsed, to an agent at the port of importation for the collection of the refund. In order to be entitled to the refund of duty, the samples must be reexported within one year from the date of clearance. The customs authorities as a rule give commercial travelers' baggage preference over all other effects except personal baggage, and there is usually little delay in clearance. In order to expedite the clearance of his baggage, the commercial traveler may arrange to have it cleared thr^(jgh some established commercial house having a bond at the cus- tomhouse, so as to enable him to get his samples without waiting for liquidation of duties, which might consume several days. The customs collectors interpret ''muestras sin valor," or " samples without value," to mean those that have absolutely no commercial value and therefore are not salable and can be used only for the pur- pose of negotiating sales. The following restrictions are placed on samples subject to free admission : Samples of cloth, felt, and colored papers must not exceed 40 centimeters (about 16 inches) in length, measured in the direction of the warp, although they may have the full width of the piece. Larger samples of such material must be mutilated by cuts 20 centi- meters (about 8 inches) apart. Samples of oilcloth must not exceed 30 centimeters (about 12 inches) in either direction. Samples of rope, metal threads, or wooden moldings must not exceed 8 centimeters (about 3 inches) in length. Samples of wines, liquors, and similar beverages must come in con- tainers of a capacity not exceeding half a liter (0.52 quart). Jewelry and plate of any metal must be mutilated. MISCELLANEOUS. In certain respects, the best season of the year for travel in Colombia is from December to May, the rainy season lasting from June to No- vember. It should be noted, however, that the Magdalena River is most readily navigable from May to November. Merchants of Barranquilla usually " stock up" on women's goods, haberdashery, etc., about the time of the Christmas holidays for these 392 COLOMBIA: A COMMERCIAL. AND INDUSTRIAL HANDBOOK. and the Mardi Gras festivities of January and February, while the celebration of independence (Nov. 11) marks Cartagena's special social season. The end of the coffee season is the principal buying time for the interior. Neither railways nor steamboat lines grant reduced baggage rates to commercial travelers. Commercial travelers will probably find daily expenses amount to anywhere from $4.50 per day upward, depending greatly on the lines represented. Actual expenses of travel in Colombia, Ecuador, Peru, Panama, and Costa Rica, covering a four-month period by a traveler for a large machinery house in the United States (carrying no samples) averaged $15 per day. One other commercial traveler estimates his expenses at from $35 to $50 per week, including laundry and entertainment. One requir- ing a showroom would have to add about $10 per week. Personal amusement will also be found a necessary and important item in most South American countries. It is impossible to give expense estimates, exclusive of transportation, in Colombia, because so much of a trav- eler's time, if he visits the interior, is spent in travel. He can probably visit the coast towns, Bogota, Honda, and Medellin, on an average of $10 per day, exclusive of expenses incurred on account of excess baggage, sample room, and carriage hire. Appendix D. TRAVEL NOTES. For the guidance of commercial travelers or other Americans who may visit Colombia, there are presented below certain observations and directions, representing the result of actual experience in traversing the waterways, railways, and mountain trails of the Republic. Since the problems of travel in Colombia are unusually difficult and perplexing, it is believed that such a series of notes will serve a useful purpose by indicating to the traveler the conditions to be encountered, the things to be avoided, and the measures that should be taken in order to insure the greatest practicable degree of comfort, safety, and expedition. The trips covered by these " Travel Notes" include the principal ones ordinarily taken by business men visiting the country. SANTA MARTA TO BARRANQUILLA. The Santa Marta Railway Co. maintains a steamer service from Cienaga to Bar- ranquilla, with sailings twice a week, on Tuesdays and Saturdays, the boats con- necting with the train from Santa Marta. The fare by rail to Cienaga, a distance of 22 miles, is $1.40 Colombian ($1.36 U. S. currency); and the boat fare to Barranquilla is $3 ($2.92 U. S. currency) first class and $1 ($0.97 U. S. currency) second class. There are two staterooms, which must be reserved and for which an extra charge of $2 ($1.95 U. S. currency) is made. These are mere wooden inclosures on deck, equipped with nothing but a folding canvas cot without bedding. First-class passengers are provided with canvas cote on deck at night, but are expected to furnish their own pillows, mats, and sheets, as well as soap, towels, etc. Meals are served on board, but the discriminating traveler will carry a hamper of lunch and also provide bottled water for drinking purposes. The route from Cienaga to Barranquilla is through swamps and channels formed by the delta of the Magdalena River. There is an open but very shallow body of water called "La Cienaga," which reaches as far as the ocean, and the steamers approach Cienaga through an artificial, dredged channel. About two-thirds of the distance of 50 miles to Barranquilla is through very narrow channels called "canales," the draft being not over 2 feet 6 inches and impossible of navigation by vessels any larger than those employed. Progress is slow and very difficult, with many chances of running aground. The boat stops several times during the voyage to take on more wood for fuel, and this is a tedious process, so that the speed made is not more than 5 miles per hour. Only when privacy is necessary should the staterooms be taken, as they are too hot and unventilated to allow one to remain in them very long. The trip should not be made at night, if that is avoidable, on account of the myriads of mosquitoes encountered in going through the swamps. When the boat stops (as it frequently does), passengers are covered with these pests, dangerous on account of malaria. Travelers should provide themselves with good close-mesh folding mosquito bars as part of their baggage, although such are not in use by the natives. The trip by daylight is not unattractive. The snow-capped peaks of the Sierra Nevada are seen to the east, and the swamp life and vegetation are interesting. Approaching Barranquilla one begins to see cattle pastures on the higher ground, where the land has been cleared, fenced, and planted to para or guinea grass. Here the cowboys' means of locomotion is a long, narrow dugout canoe. Many large alligators are seen and also flocks of the famous aigrette heron, or "garza." It is said by people who have been over the ground that a fine automobile road could easily be made between Santa Marta and Barranquilla by using the natural roadway of the Island of Salamanca lying along the coast, where no road work would have to be done for the greater part of the total distance. A short stretch of elevated 393 394 COLOMBIA : A COMMERCIAL AND INDUSTRIAL, HANDBOOK. road would have to be put in near Santa Marta. and some piling used near the Barran- quilla end, with a ferry across the Magdalena River at Barranquilla. Such a route could not at present be made commercially profitable, because motor traffic over it could not compete with the low prices charged by the natives for transporting freight in dugouts. These are poled through the swamps at a very insignificant figure. CARIBBEAN COAST TO PUERTO BERRIO. CONDITION OF RIVER. The Magdalena River, in its lower reaches, below Puerto Berrio, is very wide be- tween its main banks in some places reaching a total width of more than a mile, but this great area is not always covered with water. During the dry season of the year, the volume of water is very small, compared with the width of the river; the na\ ijrable channels are narrow and interrupted by large and small sand bars and mud banks which constantly change position. River pilots watch the current for deep water, since there are no aids to navigation, these latter being impracticable on account of the constant change in the channels. It is also impossible, during the dry season, to run at night; the boats are tied up to the bank at some convenient wood pile, and the hours of darkness are used to load wood for fuel for the following day. There are also many islands, some of them inhabited and used for farming on a very small scale and as pastures for cattle. Some of these islands are very large, the river passing on either side and in places forming many channels, confusing to the river pilots. The islands are being constantly eroded by the river, with the consequent formation of new sand bars and banks, which gradually become new "islands." In other places the river has spread out into great "lakes" of very shallow water, sometimes a mile or more in width. In many places swamps have been formed by the overflow water during the rainy, or flood, seasons. These swamps cover enormous areas on both sides of the river and are impassable for any craft except the small dutr- outs of the natives, who know the narrow channels and the intricacies of the tropical water growth. The water of the river, even in the dry season, carries considerable silt and has a muddy appearance. During the rainy season, steamers go up the river from Barranquilla to La Dorada (the head of navigation on the Lower River), a distance of 987 kilometers (617 miles) in five days, running at night on the Lower River as far up as Gamarra. They come down in three days with the swift current. This applies to express steamers which stop only for wood fuel and for mail at such towns as Sambrano, Magangue, Banco, La Gloria, Gamarra, Bodega Central, Puerto Wilches, and Barranca Bermeja. STEAMERS AND SERVICE. The river steamers are all of the stern-wheel type. The hulls are built of steel, with light wooden upper works, and the models are all of the so-called "spoon-bow " typo, this type having been found to "be the best on account of the many encounters \villi sand bars, snags, and other obstructions in the river. Service is divided into three classes (1) express passenger and freight service, (2) intermediate passenger and freight service, and (3) ordinary freight service. Express boats stop only at the more important towns and carry the mail to and from the inte- rior. These steamers have the right of way over all other river traffic. "Interme- diate" boats make more stops, carry more heavy freight, and usually take twice as long to make the run as the express boats. These boats are not as large or as well equipped as the express steamers, which latter are furnished with ice-making machines, electnc lights, shower baths, and electric fans in the staterooms. On express steamers an electric player piano is also provided for the diversion of the passengers. During the dry season, the trip from Barranquilla may consume anywhere I'nmi one to three weeks, according to the condition of the river and the luck with sand bars and other obstructions encountered en route. In such times, an entire day is often spent in seeking out a channel through the bars and islands with enough water to float the boat through. A common occurrence is for the boat to become so fast on a bar that plates are dam- aged and the boat rendered useless. Then the passengers have to wait patiently for another boat to be sent out to transfer them and continue the trip up or down the river, as the case may be. APPENDIXES. 395 EQUIPMENT FOR RIVER TRAVEL. The staterooms on the express boats must be engaged in advance, a charge of 20 per cent in excess of the regular first-class fare being made for this accommodation. If a room is wanted for one person only, a charge of 40 per cent in excess of fare is made. If no stateroom is available, passengers are provided with a folding canvas cot and sleep on deck. On the express boats, staterooms are furnished with a canvas cot, a washbowl, and a water pitcher nothing more. Passengers must provide their own outfit, consisting of mat, two sheets, a pillow, a mosquito net, towels, soap, etc., and a small traveling- case mirror will be found convenient. The better boats on the express service have electric fans in the staterooms and the dining room . As the heat is terrific at all seasons of the year (at night as well as in the daytime), the traveler should inform himself, before engaging passage, whether the boat is equipped with fans or not. It is impos- sible to stay in these rooms after 9 o'clock in the morning, on account of the heat. About the only place on the boat where anv degree of comfort may be obtained during the day is in the dining-room space, which is open fore and aft, the after portion of the first deck being devoted to kitchen offices and the boilers being under the forward end on the main-hull deck, under the passenger deck, making this part of the craft too hot. The upper deck, or "texas," is exposed to the sun and can not be used except at night, when it becomes an unpleasant and possibly dangerous place on account of the mosquitoes and other insects. When the boat ties up to the bank for the night insects become so numerous that one has to take refuge in the stateroom under the mosquito net, with the fan in operation. The food is very poor and badly prepared and served. Meat is used to excess, and the traveler will do well to provide himself with a few cans of fruits, vegetables, etc. Mineral water can be purchased on all express boats, and its use is recommended for drinking purposes. Every precaution should be taken to avoid infection, and fever specifics should be used to prevent malaria. It will be found impossible to do any clerical work or writing on board, except early in the morning before 9 o'clock. After that hour the rooms become too heated for one to remain in them for any length of time, and the dining space becomes too crowded for work. Reading matter should be provided; it will prove to be the traveler's best friend and will aid in overcoming the monotony of the river journey. When one goes ashore at the various stops the water there should not be taken nor should one purchase the confections offered for sale, as the conditions under which these latter are made are not sanitary and disease is very prevalent. Travelers going ashore should not endeavor to penetrate into the tropical growth, unless there is a wide cleared path or road; this precaution is to avoid the ticks, chiggers, and other insects, which will result in discomfort. An important item of equipment is a pair of large colored spectacles, since the glare of the sun on the water is very trying on the eyes. A good cork sun helmet of approved make is the best head covering out in the country, but this is too heavy to wear on board the steamers. A good wide-brimmed Panama hat will be found the most comfortable headgear. Blankets are not necessary on the river, though a light cov- ering, such as a bedspread, should be carried to avoid the chill of the tropical morning after a hot night. Palm Beach or white duck clothing is used, and a good grade of light khaki will be found very suitable for the river trip on account of the dirty condition of the boats, white cloths soiling too readily. DEPARTMENT OF ANTIOQUIA. HOTEL MAGDALENA. Upon leaving the Magdalena River at Puerto Berrio, the traveler is favorably impressed with the Hotel Magdalena, situated on a hill within a few hundred yards of the river bank. This hotel was built by the government of the Department of Antioquia and is operated in connection with the railway service of the Antioquia Railway, the principal object being to provide a comfortable, modern, and hygienic stopping place for travelers bound in or out of the Department. This is the best hotel in the entire country, with the exception of those in Bogota, the capital. Among its features are the modern white-tiled baths a great boon to the river passengers. The food served is excellent, and the time can be spent here very comfortably while one is waiting for a river steamer or for a train into the interior of the Department. The building was designed by an American architect and is constructed of reinforced 396 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. concrete, with all interior fittings of hardwood. All floors are of tile laid in cement, and all features are specially adapted to the tropical climate. TOWN OF PUERTO BERRIO. The town of Puerto Berrio is the river port for the Department of Antioquia. Through this place pass all of the goods shipped in to Medellin from the coast and foreign markets; ruerto Berrio also handles all the exports of coffee from the Department of Antioquia, which produces 40 per cent of the coffee crop of Colombia. There is also a continuous commerce with the interior of the country in "panela" (brown- sugar cakes), of which Antioquia produces 22,000,000 annually and sells large quan- tities to the interior of the country. Considerable tobacco is also imported, princi- pally from the Department of Santander, \ia Puerto Wilches ; Gamarra, etc. Ap- proximately 70,000 head of cattle are imported into Antioquia annually from the Department of Bolivar, and about one-half of these are brought up the river on SCO\VH and shipped into Medellin via the Antioquia Railway. For a description of the town of Puerto Berrio itself, the reader is referred to page 231. ANTIOQUIA RAILWAY: NUS DIVISION. One train of mixed passenger and freight cars is run out of Puerto Berrio over the Nus Division to Cisneros each day, leaving at 6 a. m. First, second, and third class coaches are provided. The road winds in a series of many curves in a general westerly direction until the Nus River is reached at a point between Pavas and San Rafael. The maximum grade to this point of crossing the Nus River is 4.25 per cent and the average grade 2.733 per cent. All tangents and curves are 90 meters in minimum radius. After crossing the Nus at Monos, the road strikes to the northwest, paralleling the Nus River on the south bank until the headwaters are reached at Providencia. From there the road takes a general westerly direction to Cisneros, the present terminal point of the Nus Division. New work is in progress as far as El Limon 7 kilometers from Cisneros proper and reaching as far as the proposed tunnel site under the mountain of La Quiebra. The distance from Puerto Berrio to Cisneros is 109 kilometers (approximately 68 miles), the distance over the wagon road from Cisneros to Santiago is 14.7 kilometers (9 miles), and the distance from Santiago to Medellin by rail is 72 kilometers (45 miles). The railway from Puerto Berrio follows the grade along the hillsides, with many short curves and heavy grades. There are many places where the road could be shortened and straight pulls made possible by large fills and steel viaducts. The entire route is a mass of hills, with high mountains rising several thousands of feet out of the narrow valley through which the railway passes. At Puerto Berrio and for some distance toward Cisneros the country is tropical, like the Magdalena River valley, but, after one passes San Rafael at the Nus River, the country changes in appearance as the mining section is approached and greater elevation is attained. From here on into Medellin one is reminded of the old gold country of California around Oroville and the Feather River region, though the vegetation is very different, there being no pine or oak here. The formation is red clay and iron-stained decomposed porphyry, inter- spersed with great granite bowlders. The streams and creeks, of which there are many, are swift and rocky. At La Quiebra there are several waterfalls on the sides of the mountains, estimated to produce sufficient electric horsepower for an electric traction railway over this mountain. All construction work has been accomplished by means of hand labor, and the only modern appliances used are the small Decauville portable hand cars with which fills are made and ballast taken out of rock cuts, etc. An enormous amount of work has been done in this manner all along this railway. Sides of cuts have to be faced with stone in many places to prevent erosion when heavy rains come during the two rainy seasons in this region, and there are many great dirt fills containing 200,000 cubic meters of earth. In this difficult country a mass of hills and mountains, with all sorts of natural conditions to contend with this railway stands out as a monument to industry and ingenuity in the face of odds. LA QUIEBRA PASS. Arriving at Cisneros, the traveler has the choice of two means of crossing the moun- tain to Santiago, the end of the Porce Division leading to Medellin. A carriage may be hired or the journey may be made by saddle animal. Leaving Puerto Berrio, the train arrives at Cisneros at 11 a. m., ana the trip over the mountain can be made on APPENDIXES. 397 horseback in about 1 hours, but, as the train does not leave Santiago for Medellin until 4p.m., travelers either take lunch at Cisneros before starting over the mountain or go to the top of La Quiebra for lunch at a rather good inn there. The stop at La Quiebra is very welcome, as it relieves the hard ride, rests the saddle or carriage ani- mals, and gives one an opportunity to enjoy the truly beautiful scenery and the moun- tain air after so many days spent on the tropical river. The elevation of La Quiebra at the highest point on the wagon road is 1,650 meters, or 5,080 feet, above sea level. Cisneros has an elevation of 1,055 meters, or 3,380 feet. La Quiebra pass is 1,700 feet in the perpendicular above the town of Cisneros and 1,250 feet higher than Santiago. When one is not encumbered with small hand baggage, it is advisable to make the trip on horseback over the mountains. This method is more rapid than by carriage, as the animals provided in the latter case are email and in poor condition and can not make good time pulling a heavy vehicle up the grade. If the ride is made on horse- back in the rainy season, the traveler would do well to have his poncho or other water- proof garment ovit and tied to the cantle of the saddle to avoid a wetting. If one is encumbered with small or valuable hand baggage, the trip is made by carriage, espe- cially if it is raining. The charge for this service (which is not included in the railway fare or arrangements) is $1 for a saddle animal and $8 for a carriage for two persons, or $5 for one person, plus the charge for saddle animal, which is understood by custom to be included. The La Quiebra wagon road is a well-built mountain road; the maximum curve radius is 70 meters; the macadamized surface is 3 meters in width, with a total width of crowned surface of 5 meters. The average gradient is 6 per cent. Over this road pass all the imports and exports of Medellin and the interior of the Department of AntioOjiiia. All freight is handled by means of small two-wheeled carts drawn by small native mules and loading from 6 to 8 sacks of coffee that is, a total weight of from 850 to 1 ,140 pounds per cart cargo. Many pack mules are also used, the pack animals competing with the mule carts in this traffic, which is controlled and contracted for by the rail- way. There are also a few four-wheeled wagons which are used for heavy pieces moving over this route, and, in a heavy coffee-harvest season, these wagons are used to expedite the work of freighting coffee. This vehicle equipment is very poor and presents a somewhat dilapidated appear- ance. The harness of the mules consists of a collar and trace chains nothing more ropes being used for reins on the wheel animal. No real driving (as this term is prop- erly understood) is done, the mules being practically ' ' herded " along the road. This seems to be customary in all Latin American countries where small native mules are used. It is also noted that little care is given the animals used. Crossing over La Quiebra Pass is an interesting experience to the traveler. A great contrast in the people is noted, as compared with the natives of the coast. Every- where there are small houses, of one room and a "lean-to" kitchen arrangement. These tiny houses are built of mud, molded into shape, -or of cane "wattle" plastered with the prevalent red clay, and the roofs are most commonly of thatch, but sometimes, in the better houses, of round tile, made on the ground or near by. There is water everywhere along the road, and one rather large waterfall is passed. Bananas and sugar cane, and also yucca, a staple food article, are grown everywhere, even on the steep sides of the mountain. Hardly asquare yard of cultivable space is wasted by these industrious people. No large farms are seen, all agriculture (on account of the broken nature of the region ) being in the hands of small farmers. Many small native cattle are raised, and these are pastured on the short grass of the moun- tainsides. BAGGAGE. All steamers arriving at Puerto Berrio are met by agents of baggage companies from Medellin who make a business of taking care of travelers' baggage from Puerto Berrio to Medellin. Baggage is received on board the boat, taken ashore to the railway station for customs inspection, weighing, and checking^ loaded on cars, and handled over La Quiebra Pass in time for the train at Santiago, being delivered to the passenger the following day at his lodgings in Medellin. A receipt is given for baggage received by the agent at Puerto Berrio, and the passenger, by availing himself of this service, is relieved of a great deal of trouble, annoyance, and danger of loss of baggage. Other- wise, there would be endless difficulty at Puerto Berrio, Cisneros, Santiago, a.nd Medellin. The railway companies in Colombia do not maintain a baggage-checking system as in the United States, and no responsibility is acknowledged for transporta- tion of baggage. All trunks and dunnage bags should be securely locked and valuable hand baggage personally taken care of, since there is much pilferage and loss. 398 COLOMBIA: A COMMERCIAL, AND INDUSTRIAL HANDBOOK. ANTIOQUIA RAILWAY: FORCE DIVISION. After one crosses La Quiebra Pass, the train leaves the station of Santiago at 4 p. m. for Medellin, a distance of 72 kilometers, or approximately 45 miles. It arrives at Medellin at 7 p. m. The track follows the Rio Force, crossing it between Botoro and Porcecito stations and then taking a general southwesterly direction up the river to Medellin, which is on the headwaters of the Rio Porce. This is an enjoyable ride. The scenery is beautiful, there being high mountains along either side of the valley through which the railway runs, and everywhere small towns, villages, and tiny farms, of sugar cane, bananas, and yucca. There is also considerable open ground on which cattle are pastured. The river is narrow and swift all along the route, and everywhere are seen evidences of old placer mining npr-rut ions. The Rio Porce is the richest gold river in the country, but the upper reaches have been worked out long ago by the native gold washers. The roadbed on the Porce division is even better than that of the Nus division, and one is greatly impressed by the attractive railway stations all along this route. The buildings are all of concrete, with round tile roots of attractive design, and all stations are surrounded with flower gardens and whitewashed stone borders, etc. Ample platforms of cement are also provided, and the entire system speaks very well for the Department of Antioquia. The passenger is again impressed by the truly beautiful railway station in Medellin. This building is of concrete throughout and is very modern, having an intercommunicating office telephone system, etc.. among its features. Coal is used for fuel by the railway on the Porce Division. This coal comes from the Amaga fields and is brought in to Medellin by the Amaga Railway. This coal is highly volatile but can be delivered at Santiago for less than $4 per. ton. Steam brakes are used on all of the locomotives, hand brakes being used on the ears. A fairly good wagon road parallels the Porce Division out of Medellin and ort on Magdalena River. . . 207 Pasture land, Valle Department 274 Penalties, frauds or mistakes under customs regulations 326 Periodicals, character 55 Petroleum, difficulties of prospecting 122 early prospecting 120 fuel on river steamers 74 Petroleum, principal districts 121 prospecting in region of Puerto Colom- bia 200,224 recent legislation 134 refinery at Barranca Bermeja 129 summary of development prospects 135 titles to oil lands 131 Physicians, importance of sen-ices in oil development 137 Pilferage, precautions against 352 Pine, imports from United States 93 Pipe lines, construction from oil well to Bar- ranca Bermeja 128 property of International Petroleum Co 129,130 Pitafiber, quality of native 183 Platinum, Buenaventura shipments 278 export statistics 114 extension of mining 75 foreign dredging companies 108 mining operations 105 prices since 1906 109 production in Cartagena district 224 shipments to United States 109 Plows. See Agricultural implements. Population, Antioqula Department, racial characteristics 227 Barranquilla, nationalities 198 Bogota district, racial characteristics 242 CaidasDepartment.racialcharacteristics. 257 Cartagena district, characteristics 210 statistics by Departments 34 Porcelain, domestic manufacture 233 packing specifications 381 Postage, domestic rates 20 full payment important 35? rates to and from United States 19 See also Parcel post. Pottery, manufacture from domestic clay 233 packing specificat ions 381 Powers of attorney, certification required 390 Power plant, station near Bogota 243 Precious metals. See Gold; Platinum; Silver. President , method of electing 48 Providencia Island, administration and in- habitants 35 Public utilities, Barranquilla 201 Bogota 243 Cucuta 290 Santa Marta 188 Publications, bulletin of Cali Chamber of Commerce :M Department of Commerce monographs on Colombia 413 newspapers and books sent by mail, maximum weight 19 schoolbooks admitted free of duty 322 statistical data gathered by Caldas Department 258 Puerto Berrio, importance as river port for Medellin 231 Puerto Colombia, harbor faculties 202 oil prospects in vicinity 200,224 Quebracho wood 83 Quindio, coffee-producing district 260, 266 Quinine, decline of production.. 77 INDEX. 421 Races, mixture in population 35 Racial characteristics, influence on commerce. 40 Railways, Antioquia Department 236 aspects of national problem 295 Bolivar Department 215 Caldas Railway construction 264 construction costs 297 construction from Bogota to coast 244 construction in Tolima Department 248 construction specifications prescribed by law 298 Cucuta to Zulia River 293 equipment admitted free of duty 322 Pacific coast to Bogota, plans to complete system 296 Pacific Railway, Cali to Buenaventura. . 272 projects in Santander Department 288 SantaMarta Railway 196 service between Puerto Colombia and Barranquilla 202 statistics of operation for all lines 300 See also Transportation. Rainfall, Barranquilla district 198 Bogota district 241 Cartagena district 210 Manizales district 256 Santa Marta district 187 Resins, possible exploitation 80 Revenues, Antioquia Department 230 Caldas Department 265 customs receipts at Buenaventura 279 customs receipts in recent years 318 national, 1910tol918 63 receipts from forests 94 receipts from road tolls 306 sources of national. 51 taxes for river improvement 205 Valle Department 271 See also Finances; Tariff; Taxes. Rice, Antioquia production 238 cultivation and production 74, 162 production in Cartagena district 219 Rio Cesar, transportation facilities 204 River systems 27 River tax, charges against imports and ex- ports transported by river 329 Rivers, transportation on Magdalena and tributaries 203,207 travel equipment for passengers 395 Roads, Cali district 274 construction costs 302 construction to oil refinery at Barranca Bermeja 128,204 Cucuta routes projected 293 Department of Bolivar, construction 214 funds assigned for specified routes 303 national highways, list 301 recent legislation . 302 technical conditions of construction 302 Rubber, exports from Cartagena to United States 223 importance of industry 87 Sabana Railway, operations 246 Sacks and bags, imports 184 manufacture from native fiber 182 Salesmen, knowledge of Spanish necessary.. 17 traveling outfit 46 Salt, consumption tax 330 production from mines 251 Samples, admission free of duty 328 instructions for commercial travelers 390 markin? of textiles 347,358 San Andres Island, administration and in- habitants 35 San Jorge River, transportation facilities 20-! Sanitation 42 Santa Marta, commercial center 187 harbor facilities 195 import trade, character 189 public utilities 188 sanitary measures 43 Santa Marta Railway, service and equipment 196 Santander Department, agricultural products 155 area and population 34, 286 coffee production 169 petroleum prospecting 125 road and trail construction 306 Sarsaparilla root, gathering 78 Sawmills, limited number 92 School of Mines, attendance 228 Schools, attendance in primary 54 primary schoob in Barranquilla 199 system of public 52 See also Education. Senate, memljers and method of choosing 48 Sewerage systems, construction and plans. . . 46 Sewing machines, selling organization for American 343 Shipping, Buenaventura harbor facilities 277 Cartagena harbor and docks 216 charges against vessels 324 clearance of goods through customs 325 fluvial tax for river improvement 206 improved facilities favor American trade. 345 marine insurance companies 339 Puerto Colombia harbor facilities 202 Santa Marta harbor facilities 195 steamship lines from United States 375 steamship service at Cartagena 218 Tumaco harbor facilities 283 See aim Rivers; Steamboats; Transporta- tion. Shoes, domestic manufacture, Bogota 253 packing specifications 385 Silk, culture experiments at Bucaramanga. .-. 289 packing specifications 385 Silver, export statistics 97,114 Sinu River, navigation ' 217 petroleum prospecting 124 Skins. See Hides and skins. Soap, progress in production at Bogota 253 Southern Railway, operations 247 Stamp tax, bank drafts 338 bills of lading and consular invoices 375 shipping documents 324 States. Sec Departments. Stationery, market 371 Steamboats, companies operating on the Magdalena 206 type on Magdalena Paver 203, 394 See also Rivers. 422 INDEX. Page. Steamship service, Puerto Colombia and United States ports 202 sailing distances from Cartagena 15 time to United States ports 23 See also Shipping; Transportation. Storage of grain, damage by weevil 175 Street paving, needs of Barranquilla 201 Strikes, Caribbean coast cities, in 1918 222 Subsidies, railway construction, laws govern- ing 298 Sec also Concessions. Sugar, exports of refined 154 production, Cali district 275 Cartagena district 218 Cauca Valley 1 55 Medellin district 238 Surtaxes on imports 322 Syrians, activities in business 36, 212 Tagua nuts (vegetable ivory), exports from Cartagena to United States 223 production and trade. 89 Tanneries, establishment at Bogota 253 Tanning materials, export? from Cartagena to United States 223 production and exports 83 Tariff, advertising matter, duties 359 articles admitted free of duty 322 customs fees and charges 323 duties assessed on gross weight 254 duties collected in recent years 318 samples, customs regulations for admis- sion 391 Taxation, national sources 51 See also Revenues. Taxes , fl u vial taxes for river improvement . . . 206 internal revenue assessed on certain imports 329 mining property 119 resident aliens 360 stamps on shipping documents 324 tonnage tax on merchandise transported by river 329 See also Revenues; Tariff. Telegraph service, facilities and rates 21 Temperature, variation by zones 30 Textiles, expansion of industry 73 general review of market 362 imports by articles 367 imports by countries 314 manufacturing plants and capital invested 180 packing specifications 385 purchasing agencies 342 samples, marking 347 service of samples 357 woolen manufacture at Bogota 253 See alto Cotton goods. Timber, resources not exploited 92 suppliesin .-'uilaMarta district 192 Tobacco, Caldas lU-partment production 267 cultivation and production 164, 220 Santander Department cultivation and manufacture 289 Toilet articles, packing specifications 384 Tolima Department, agricult ural products... 155 area and population 34 Page. Tolima Department, coffee production 169- educational facilities 242 road and trail const ruction 306 Tolima Railway, operations 247 Tolu balsam, exports to United States 79 Tonnage tax , rate 324 Tools, agricultural, market requirements 176 See also Agricultural implements. Topography, Bogota district 241 Caldas Department 256 Cali district 268 Cartagena district 209 effect on cattle raising 139 influence on commerce 24 Medellin district 226 oil districts 123 Santander Department 285 Tractors, market in coast regions 177 Trade centers, list of commercial districts 185 Trade development, Santa Marta possibili- ties 194 Trade information, sources in United States. 347 Trade-marks, regulations governing registra- tion 331 Trade methods, American and European compared 255 Bucaramanga district 287 Cartagena district 212 commission houses 254, 315, 342 distribution from M edellin 240 general discussion 341 hides and skins 147 Manizales district 268 protection of wholesale houses 343 sources of trade in formation 355 text ile trade 368 Trails. See Roads. Transportation, Bucaramanga district 287 cableway in Caldas Department 263 Cali district 273 Bogota to coast 244 Cauca River facilities 204^ coffee from interior 169 Cucuta to ocean 293 dredging of M agdalena River 205 facilities in Cartagena district 214 freight rates on Magdalena River 207 insurance for inland shipments 339 Magdalena River facilities 203 Manizales facilities 262 Medellin district 231 methods in Santa Marta district 194 mule transport to interior 388 review of national problem 295 river navigation in Antioquia Depart- ment 237 Santa Marta Railway 196 steamship service at Cartagena 218 traffic on Magdalena River 207 Tumaco to interior 283 See alto Railways; Rivers; Shipping. Travel, outfit to be carried 46 Travel notes, Antioquia Department 395 Caribbean coast to Puerto Berrio 394 costs estimated... 392. INDEX. 423 Travel notes, Magdalena River to Manizales. 407 Manizales to Call 409 Medellin to Bogota 401 Santa Marta to Barranquilla 393 Tropical Oil Co., petroleum exploration 128 Tumaco, banking facilities needed 336 commercial district 282 import duties reduced 322 metal exports 116 Tuberculosis, prevalence and means for pre- vention 47 Typhoid fever, precautions necessary to avoid 45 United Fruit Co., operations at Santa Marta. 190 sanitary service 43 wireless service 21 University of Antioquia, enrollment 228 University of Bogota, enrollment 242 Universities, departmental and national 54 Valle Department, area and population 34, 270 cattle raising 274 climate and rainfall 269 coffee production 169 road and trail construction 305 Vegetable ivory, production and trade 89 Vegetable products, freight rates reduced on Magdalena River '. 208 Vessels, charges on entering port 324 manifest of cargo 326 Volcanoes, active 26 Page. Wages, laborers in oil fields 136 See also Labor and wages. Warehouses, charges for customs storage 324 storage facilities at Cartagena 216 Watches, selling of American 355 Water power, development in Santa Marta district 193 station near Bogota 243 Water transportation . See Rivers; Shipping; Steamboats; Transportation. Waxes, vegetable, possible exploitation 80 Weevil, damage to grain 175 Weights and measures, metric system in catalogues 351 units in common use 18 Wharves, construction proposed at Barran- quilla 205 Wheat , increase in production 74 production and prices in Bogota district. 249 Wireless service 21 Woolen fabrics, factories at Bogota 253 imports in 1916 366,367 World War, changes in direction of foreign trade 16 Yarn, packing specifications 386 Yellow fever, menace on Caribbean coast .... 210 precautions taken to suppress 4 44 Zapote trees, abundant growth 85 Zipiquira salt mine 251 Zulia River, transportation for Cucuta com- merce... . 293 o University of California SOUTHERN REGIONAL LIBRARY FACILITY 405 Hilgard Avenue, Los Angeles, CA 90024-1388 Return this material to the library from which it was borrowed. 001160654 8