m x f.ci

'!Jgwe theft Sac
s for the. foLUid*4g of a- College inpth

° ILIlIBiaaiKF •

Gift of the
HONORABLE HIRAM BINGHAM
YALE 1898

PERU OF THE TWENTIETH CENTURY

Statue of Simon BolIvar, "The Liberaior.'1
(1783-1830.)

PERU OF THE
TWENTIETH CENTURY

BY
PERCY F. MARTIN, F.R.G.S.
AUTHOR OF "THROUGH FIVE REPUBLICS OF SOUTH AMERICA,"
'MEXICO OF THE TWENTIETH CENTURY," "SALVADOR OF THE TWENTIETH CENTURY,'
ETC.

WITH ILLUSTRATIONS

NEW YORK
LONGMANS, GREEN & CO.
LONDON : EDWARD ARNOLD
1911
[All rights reserved]

A FOREWORD
Benjamin Disraeli once observed that the author
who speaks about his own books is almost as bad as
a mother who talks about her own children ; never
theless, I am of opinion that something may and
should be said here — not as an advertisement, but
as a warning — respecting the nature and the purpose
of this volume.
I do< not wish any expectation to be aroused which
cannot \be realized ; and, therefore, let me at the outset
indicatevto my readers what they will not find within
these pages. Firstly, they will seek in vain for any
lengthy reference to " Ancient Peru." Other writers,
far more capable than I, have dealt with this fas
cinating subject, and the list of works upon the Land of
the Incas is so' ample that the market may be considered
as sufficiently, if not over, supplied. Secondly, I have
carefully refrained from indulging in political history
for two reasons : (1) I am inclined to agree with the
dear old pessimist, Voltaire, that " history being little
else than a picture of human crimes and misfortunes,"
it would be out of place in a book which is pri
marily intended to be useful to the traveller, the
merchant, and the financier; (2) 'I consider irlittle
less than " an international impertinence," as Bismarck
designated the Monroe Doctrine, for foreigners to
discuss and comment upon the internal affairs of the
countries in which they may happen to find them
selves, either temporarily or permanently, located./

vi A FOREWORD
I have not hesitated to comment, on the other hand,
upon our own politics, so far as they relate to our
commercial relations with Peru and other South
American countries ; because I have found that there
are conditions confronting us as a nation which cannot,
and should not, be passed by without some reference.
I know neither politics nor prejudices ; but I have
a country — a country of which I am not only very
fond, but very proud. I want to see that country
maintain her place in the front rank of the com
mercial and industrial world ; to march always as
leader, and not as a humble follower.
My anxiety is to awaken some interest among the
thinkers in Great Britain, by showing to them — as
far as my modest abilities will permit — some of the
many diplomatic errors which our responsible rulers,
of both political parties alike, have committed, and
to assist in urging the demand that these errors be
no longer perpetuated.
For the rest, I leave my book to speak for itself.
I trust that it may be deemed not so bad, but that
something good may be found in it.
The Republic of Peru to-day is upon the eve of
a great development, in comparison with which all
previous commercial movements in this part of the
world will probably appear insignificant. A recently
completed, long and interesting tour through the
principal agricultural, mining, and manufacturing
districts of the country convinces me that the
Republic, now that internal and external peace is
secured, is bound to advance to the very front rank
among the Latin- American States as a productive and
commercial factor.
Not alone is it possessed of practically every kind of
mineral, of vast agricultural territories and of immense
natural forests, but it is endowed with a climate which

A FOREWORD

VII

is, generally speaking, so mild and equitable in most of
the districts that human existence is both exhilarated
and benefited by being passed in it.
Of the immensity of Peru's resources in other
directions there can be no more question, and day
by day will doubtless offer opportunities for their
more intelligent and systematic development. Already,
some $35,000,000 (£7,000,000) of North American
capital has found its way to Peru, while British capital
may be put conservatively at another £20,000,000.
Of French and German, Italian and Spanish capital
there exists also a considerable amount ; with a
hundred times as much to follow when the oppor
tunity arrives.
The foreign commerce of any nation is usually
accepted as a fair and convincing proof of its industrial
progress, and in this respect Peru has offered a striking
example of national prosperity. In the year 1897,
for instance, the imports of the Republic were
$8,000,000 and the exports about $14,000,000. Con
sidering the immense territory which is comprised in
the Republic, even when shorn of her chief provinces,
Tacna and Arica, now owned by Chile, its population
and its resources, a return like this is small enough. As
soon as foreign capital commenced to come into the
country, which synchronized with the introduction
of monetary reform, both the imports and exports
advanced, until, in 1906, we find them standing at the
much more convincing figures of $25,000,000 of im
ports and $28,500,000 for exports. During this period
the United States exports increased from $1,000,000 to
nearly $5,000,000, and the imports from $700,000 to
nearly $2,500,000. In 1907, out of a total import
trade amounting to £6,235,550, Great Britain secured
£1,634,129, while the United States came an excellent
second with £1,184,668. Germany actually showed a

viii A FOREWORD
diminution in her trading figures, those for 1907 being
£893,434, as against £914,239 for 1906. It is thus
clear that it is the United States that we have most
to fear as competitors in Peru, and these statistics are
all the more important to British manufacturers, since
they really form the " handwriting on the wall,"
serving to show in eloquently convincing language what
the results of this trading will be when once the
Panama Canal is opened, and the United States are
brought many thousands of miles nearer by direct
transportation with the Latin- American States.
In the following pages I have endeavoured to show
the Republic as it is to-day — " The Twentieth Century
Peru"; also the commercial and industrial Peru as it
may be expected to appear a few years hence, when
some of the many natural resources of the country have
been developed more fully, and when a few of the
numerous opportunities which the Republic offers to
capitalists, merchants, and settlers have been put to
the test. The country is proceeding slowly, but very
surely, upon the road to progress. " To climb steep
hills requires slow pace at first."
In one important particular Peru has always made
a plucky attempt to keep pace with the rest of the
civilized world, and that is by means of its internal
and coastal transportation. Various successive Govern
ments have taken up the task of railway-building with
equal avidity, and no political question however acute,
no financial restriction however severe, has been per
mitted to interfere with the carrying-out of a programme
which has been recognized by all parties alike as the
one and only means destined to bring Peru into line
with its South American sister-Republics. No one
who has failed to visit this part of the globe can form
any accurate idea of the physical difficulties with
which railway constructors are faced ; and none but

A FOREWORD ix
those who are accustomed to meet with and to over
come difficult engineering obstacles would be inclined
to persevere when confronted with the apparently
impossible problems of surmounting stupendous moun
tains, bridging uncontrollable rivers, and piercing end
less rocky fastnesses. The Republic claims, with good
reason, to have been the first State in South America
to have a steam tramway. Chile would rob her of
this claim, as she has taken from her the valuable
guano deposits and the still more precious nitrate
fields ; but I think that the question at issue can best
be decided by the following specific details : Peru
built and opened for traffic the Lima-Callao steam
tramway in the year 1848, whereas the first tramway
in Chile, from Caldera to Copiap6, was opened on
July 29, 1851.
The flat portion of Peru is insignificantly small in
comparison with the mountainous regions ; but, never
theless, the territory of the Republic is moderately
well supplied with railroads, built almost entirely with
British capital loaned to the Peruvian Government.
I have not hesitated to devote a considerable portion
of my space — in fact, three entire chapters — to the
question of transportation in Peru. It is the key t<
the future economic situation.
The total length of railway track in the Republic
to-day is about 1,560 miles (roughly speaking), apart
from several private lines, which are the property of
different mining and industrial companies. The three
principal systems, aside from the many private con
cerns and short coast lines, to all of which some
reference has been made in the following chapters, are
the Southern Railway, the Central Railway, and the
Guaqui-La Paz Railway. These lines are under the
management of the Peruvian Corporation, Limited,
a British joint-stock company which, as representa-

x A FOREWORD
tive of the holders of bonds of the former foreign
debt of Peru, in 1900 took over the control of
the lines until 1956. Although the smallest of the
three groups, the Guaqui-La Paz Railway is one of
the most important, not alone because of its forming
the connecting link between the Southern Railway,
on the coast, and the Bolivian capital of La Paz,
14,000 feet above the level of the sea, but also on
account of its being at present one of the two lines of
railroad which bring the Capital of the latter-named
Republic into communication with the sea.
Neither the Southern nor the Antofogasta-Bolivia
Railway will be long left in possession of this monopoly,
since the Arfca-La Paz Railway, now in construction,
is destined to prove an important factor in future
competition. Like most of the other South American States,
Peru has been heavily handicapped in the past by the
absence of good roads, or, indeed, of any roads at all.
When the Spanish Conquerors came, so history relates,
they found a number of excellent paved highways
running from a common centre, like the spokes of a
wheel, to practically every part of the Inca Empire,
and traces of them are to be found in many parts of
the country to-day. But the Spanish, in their greedy
search for gold and in their merciless persecution of
the unfortunate Indians, seem to have overlooked the
primary duty of all pioneers, which is to open up
and to maintain the arteries of internal communication.
Even after Spanish rule came to an end in Latin-
America, the newly-emancipated States were too
closely engaged upon making war with one another
and in settling their own numerous internal troubles
to think of improving their highways ; so that it was
nearly forty years after the throwing-off of the Spanish
yoke, when the Latin-American States seriously com-

A FOREWORD xi
menced to construct roads into the interior of their
vast domains.
Among the most backward has been Peru, and the
Republic is suffering from the oversight to-day. Roads
there are, and some remarkably good ones ; but in
comparison to the size of the country the Republic
is sadly deficient in internal transportation facilities.
Those which she enjoys are almost entirely the result
of foreign enterprise and capital, but it is satisfactory
to know, at least, that the present Government is alive
to the importance of improving both its coast-roads and
its railway communications, and that every effort is
being made to open up the country by these means.
Day by day shows something in this direction either
to have been accomplished or commenced ; and since,
as Gibbon tells us, the civilization of a country may
be best judged by the number and condition of its
roads, Peru will during the present century have
earned a high place among such civilized States. P. F. M.
October, 1911.

CONTENTS

CHAPTEE I
PAGES
Physical features — The coastal line— Ports and harbours — Different
regions — The sierra — The montafia — Lake Titicaca — Earth
quakes — Rivers — Amazon — Navigation — Volcanoes — Misti —
Forests — Productive trees — Rubber — Olive — Flora— Fauna-
Pisces— A butterfly-hunter's paradise 1 — 10

CHAPTER II
S panish conquest of Peru— Records of cruelty and oppression — Inter
necine quarrels — Francisco Pizarro — War of Independence —
Peace compacts — Frontier delimitations — Questions with Bolivia,
Brazil, and Colombia — Loreto dispute — British officers as
referees — Expeditions at work on frontier delimitations — British
services to Peru — Native exploration expedition 11 — 22

CHAPTER III
President Augusto B. Leguia — Dr. German Leguia y Martinez —
Dr. Eugenio Larrabure y Unanue — Dr. Julio Enrique Ego-
Aguirre — Dr. Enrique C. Basadre — Senor Don Enrique Oyan-
guren — Dr. Edmundo N. de Habich — Don Carlos G. Cardamo
— Dr. Carlos Larrabure of Correa — Senor Eduardo Lembcke —
Peruvian Legation in London — British Minister to Peru — United
States Minister and Consuls — British Consul-General at Lima 23 — 39

CHAPTER IV
Government — Departments — Provinces — Districts — Executive power
— Population — Judicial administration — Jurisdiction of Courts
— Congress — Ministers' portfolios — Local government — Depart
mental Boards — Navy — Strength in 1911 — Army — Strength in
1911 — French Military Mission — Armaments — Peruvian soldiers
—Full fighting strength - - 40—53
xiii

xiv CONTENTS CHAPTER V
Government {continued)— Sanitary organization — Medical Board of
Health— Marine Sanitary Service— Lima Board— Isolation at
ports— Telephones — Telegraphs — Improvements effected — Wire
less station— Postal services— Increase in mail-matter — Peruvian
and British methods contrasted— The carriage of newspapers and
other publications — Aviation encouragement 54 64
CHAPTER VI
Finance— Loans and their history— Period of prosperity followed by
severe restriction — Extravagance of former Governments-
Guano revenues — Restoration of Peruvian credit — Recent
borrowings — Arrangements with British creditors — Peruvian
Corporation — Municipal loans — Tax-collecting Agency— Revenue
and expenditure — Customs receipts — Foreign commerce —
Budget for 1911-12  65—81
CHAPTER VII
Insurance — Native offices — Foreign agencies — Leading offices — Com
parative surpluses — Dividends paid — Rimac figures for 1910 —
Banking— Principal banks— Bank of Peru and London — Savings
bank (Caja de Ahorras)— Coinage — History— Monetary laws —
The National Mint - - - 82—92
CHAPTER VIII
Education — Lima University — Number of schools — Native schools —
Commerce and agriculture — Arequipa University — English
schools — Peons as pupils — Literary societies — Lima Geographical
Society — Learned associations — Theatres — New Municipal
Theatre — Peruvian press — Notable journals — English news
papers in South America — " Peru To-Day " - - 93 — 106
CHAPTER IX
Lima, the Capital — Description of city — Climate — Earthquakes —
House decoration and architecture — Public places — Avenues —
Parks — Transportation — Charitable institutions — Hospitals and
asylums — Suburbs — Miraflores — Chorillos — Bella vista — Destruc
tion by Chilian troops — Bathing — Cruelties of war - - 107 — 120
CHAPTER X
Cost of living— Rentals — Household expenditures — Wages — Domes
tics — Mary Anne's paradise — Native labourers — Japanese
competition — Austrian emigrants — Government encouragement
— Sport and amusement — Lima Jockey Club — Regatta Club —
Football's popularity — Lima Cricket Club - - 121 — 130

CONTENTS xv
CHAPTER XI
PAGES
Public worship — Freedom granted — Intolerance of foreign mission
aries — Charity of Catholic priests — Position of English Church in
Peru — Late and present chaplain in Lima — Breaking away from
priestly control — Bishoprics and curacies — Lima Cathedral
— Valuable Church possessions — Public processions — Religious
service at Arequipa — Reverent attitude of populace - 131 — 145

CHAPTER XII
Agriculture — Sugar husbandry — Prospects of the industry — Early
cultivation and first factory — Reasons given for retaining
ancient machinery — Typical mill described — Classes of rollers
used — Process of manufacture — Type of machinery necessary —
Principal sugar estates on coast of Peru — Santa Barbara factory
— Extracts obtained — Various installations described - 146 — 160

CHAPTER XIII
Agriculture (continued) — Sugar-cane culture — Climate and soil —
Guano fertilization — Deposits — Guano characteristics — Suitable
soil— Insect pests — Coast cultivation — Time for cutting — The
average yield — Experiments with nitrate manure — Machinery —
Antiquated plants and equipments — Opportunities for manufac
turers of sugar machinery— Typical installation described —
Handling the bagasse and massecuite 161 — 170

CHAPTER XIV
Agriculture (continued) — Cotton — Classes cultivated — Comparison
between Peruvian and South American — Statistics, 1903-1909
— Cotton-seed oil — Wool-growing industry — Hides — Coca -plant
— Cocaina — Cocoa — Rice cultivation and imports — Tobacco —
Wheat cultivation — Samples tested — Barley — Maize — Rubber —
Ignorant method of collecting — Exports for 1902 -1909 —
Government encouragement of cultivation - 171 — 192

CHAPTER XV
Railways — Growth of systems — Existing lines— Standard gauge —
Narrow gauge — New construction — Southern Railroad — Cuzco
division— Track— Bridges— Rolling - stock — Freight— Passengers
— Workshops — Management — Central Railroad — Oroya section
— Remarkable scenery — Road-bed — Bridges— Tunnels— Stations
— Freight— Handicaps — Future prospects - - - 193—211

xvi CONTENTS
CHAPTER XVI
PAGES
Railways (continued)— Guaqui-La Paz Railroad— Important acqui
sition—Contemplated developments — Lake Titicaca service-
Rolling-stock— Stations— Workshops — Paita-Piura Railway —
Pacasmayo-Guadalupe line— Trujillo branch— Chimbote-Tab-
lones link — General management — Prospects of Peruvian
Corporation Railways — Great mineral developments - 212—225
CHAPTER XVII
Railways (continued) — New construction — Contemplated extensions
— Iquitos-Paita Railway — Importance as a transcontinental line
— Lima railways — Lima Light, Power, and Tramway Combina
tion— North- Western Railway of Peru— Chimbote line 226—235
CHAPTER XVIII
Shipping — Principal ports — Panama Canal effect — Steamship lines —
Improved foreign services — Freight — Peruvian Steamship
Company line — Rates in force — Further new routes — Coastal
services— Government subsidies — Benefits from American railway
connection — British shipping — Latest statistics — Port of Callao —
Iquitos — Docks — Railways — The town - 236 — 251
CHAPTER XIX
Textile trade — Raw materials — Cotton production — Capital employed
— Woollen factories — Matches and flour — Japanese competition —
Striking enterprise— Lima Electrical Trust — Sugar machinery
— Copper-mines machinery — Waterworks equipment — Taxation
of commercial travellers — Correspondence between Birmingham
Chamber of Commerce and Foreign Office — Irrigation enterprise
and machinery - 252 — 265
CHAPTER XX
Peruvian trade and Panama Canal — Probable effect — Preparation by
the United States and Germany — British indifference — Trade
marks forgeries — Peruvian Government precautions — Oppor
tunities for protection — British Empire League assistance —
Foreign firms registered — Irrigation undertakings — Future
development - - - 266—272
CHAPTER XXI
Guano industry — Early history — Remarkable return— Nitrate com
petition — Unworked deposits — Salt — Annual production —
Petroleum — Principal districts — Early discoveries — Lobitos
Oil-fields — Cocaine manufacture — Various processes followed —
Difficulties encountered - . 273 — 282

CONTENTS xvii
CHAPTER XXII
- PAGES
Mining — Spanish greed — Mineral districts — Sierra region — Numbers
of claims — Working companies and output — Labour conditions
— Mining code — Gold and silver mines — Copper deposits — Cerro
de Pasco — British indifference — " Ophir of the West " — Cerro
de Pasco town — Various minerals found — Coal — Mining for
foreigners— Unnecessary scare-warning from United States of
America - - - 283—295
CHAPTER XXIII
Callao — Early history — Physical aspects — Climate — Suburbs —
Sanitary improvements — Chosica — La Punta — The volcano of
Misti — City of Arequipa — Early history — Earthquakes — Hos
pitality of the inhabitants — Buildings — Banks — Tramways
— Electrical equipments — Life in Arequipa — Cuzco — Ruins —
Modern city life - - - 296—306
CHAPTER XXIV
Foreign companies — The Peruvian Corporation — Relations with the
Government — Lima Railways — Peruvian Amazon Company —
Putumayo scandals — United States' recognition of Peru as
possessing territory — Position of the Company — Lobitos Oil
fields — Backus and Johnson Brewery — Peruvian Cotton Manu
facturing Company — City of Lima 8 per Cent. Bonds - 307 — 317
Appendix - 318—337
Index - - 338—348

LIST OF ILLUSTRATIONS

TO FAOE PAGE

Lima : Statue of Simon de Bolivar - - Frontispiece
Lake Titicaca, the highest body of water in the world 4
The Conqueror of Peru : Francisco Pizarro - 14
H.E. the President of the Republic, Senor Don Augusto B. Leguia - 24
Lima : Columbus Avenue ... 34
The Cruiser Admiral Grau - 46
Lima : School of Medicine and Health Institute - 54
Lima : Bank of London and Peru - - - 58
Near Urcoz, on the Cuzco division of the Central Railway 66
Misti by Moonlight, showing the Harvard Observatory - - 66
Lima : The Savings Bank - 76
Lima General Post-Office .... 86
Lima : La Plaza ...... 98
Lima : Interior of Cathedral and Cemetery - - 110
Old Spanish Stone Bridge over Bio Vilcanete - - 122
Lima : The Cathedral ... - 126
Port of Cerro Azul, showing Pier of the B.S. Co., Ltd. 146
Lake Titicaca : Steamer leaving Guaqui, Bolivia, for Puno, Peru 146
Cuzco Valley, showing Southern Railway line - 156
Sicuani, northern portion ... - 156
City of Arequipa and Misti Volcano from Charchani - 166
Glacier on Mount Vilcanita, Alpacas in foreground - 166
Typical Mountain Scenery near Mount Vilcanita 176
Puente de Chillon (Ancon-Lima Railway), 22 kilometres - - 194
Puente de Piedro (Lima) ; built in one year - - 194
Puente de Chaupichaca (Central Railway), 117,600 kilometres - 194
San Vicente, Capital of the Province of Canete - - 204
Arequipa : Boulevard of City, with Misti Volcano in distance 204
xix

xx LIST OF ILLUSTRATIONS

TO FACE PAGE

Rio Blanco, showing Railway-station and Smelter - 214
Lake Saracocha (13,600 feet) from railway, 227 kilometres 226
Glacier on Mount Vilcanita (16,000 feet) - 226
Sand-dunes at La Joya - 234
Waves upon the Back of a Sand-dune - - 234
Ports : Callao Docks ; and Iquitos, with River Steamers 244
Sugar Factory, Cerro Azul, property of B.S. Co., Ltd. 254
San Miguel Copper-mine, Morococha 254
Callao Dock Co. SS. Ucayali, of the Peruvian SS. Co. 262
San Luis, from Casa Blanca, with Santa Barbara and Sea in
the distance - - - 262
Port of Mollendo : Old Wharf 270
Mole and Breakwater, Mollendo 270
Mejia : On the Plaza - 282
Embarking Peruvian Troops on the Central Railway 282
Cuzco : Ruins of Inca Temple, ten kilometres from City 292
Cuzco : A Street, showing Masonry and Pillar of Spanish Portal 302
The City of Cuzco (one half is only shown) - 310
Map of Peru - In pocket at end

PERU OE THE TWENTIETH
CENTURY

CHAPTER I
Physical features — The coastal line — Ports and harbours — Different
regions — The sierra — The montafia— Lake Titicaca — Earthquakes —
Rivers — Amazon — Navigation — Volcanoes — Misti — Forests — Pro
ductive trees — Rubber— Olive— Flora— Fauna— Pisces — A butterfly-
hunter's paradise.
It would be interesting to know what were Francisco
Pizarro's exact thoughts as he approached the long
coast -line of Peru upon which, after many years' eager
ambition and deep scheming, he first cast eyes in the
month of January of 1520.
For long the ambitious Spaniard had determined to
try his luck south of Panama, where he had fought
and bled, but had gained small personal advantage ; he
had been one of Vasco Nunez de Balboa's followers,
when, in 1509, that distinguished explorer discovered
the Pacific Ocean ; he had lent his good right arm and
his shrewd advice to the service of the Spanish King,
but throughout he had remained personally unrecog
nized and unrewarded.
Then his subtle brain conceived the plan of an
expedition carried out upon his own account ; in con
junction with the very unpriestly priest — Hernando de
Luque — and the soldier of fortune, Diego de Almagro,
he set out in 1524 for Peru. 1

2 PERU OF THE TWENTIETH CENTURY
Pizarro actually reached the shores, but could do no
more than look at them longingly from afar, since he
was devoid of equipment of any kind, ill in health and
accompanied by none but uncongenial and quarrelsome
companions. So the future conqueror turned back to Panama ;
journeyed thence to Spain, and having there collected
some more and trusty followers in the persons of 200
Spanish soldiers, and being financed by the Spanish
King himself, he once again turned his ship's prow
towards the land of the Incas — the existence and rich
ness of which he now knew to be no fable. For the
first time Pizarro landed upon its unprepossessing shores
in September, 1530, his disembarkation taking place at
Tumbes. Approaching the shores from the more tropical and
scenically beautiful Panamanian coast, the Peruvian
country seems to the traveller both desolate and barren
to a degree. But it is neither one nor the other, for a
fairly considerable population inhabit these regions, as
in the early days of the Spanish Conquest, while a few
miles inland there abound numerous fertile valleys and
wooded ridges, which impart a wholly different physical
appearance to the country.
The exact geographical position of the Republic of
Peru is between the Equator and the Tropic of Capri
corn, on the western coast of South America, between
the parallels of latitude 1° 29' north of the equatorial
line, and 19° 12' 30" of south; also between the
meridians 61° 54' 45" and 81° 18' 39" of longitude,
west of Greenwich. The superficial area of the country
is 500,000 square miles according to some geographers,
but the Peruvians themselves claim 1,322,000 square
kilometres, which would be equal to 713,675 square
miles, including various islands and lakes. To-day, the
coast-line measures over 1,200 miles in length, but

PORTS AND RIVERS 3
before the war in Chile it extended to 1,300 miles.
The physical regions of the country may be divided
into three separate groups — the coast, the sierra (or
mountain), and the forest {montafta). The population
may be conservatively put at 4,500,000, or about
6 '4 to the square mile.
Ports and harbours in Peru are many, but there are
few which can be classed as really good. In this respect
the country is not very fortunate, there being but few
protected anchorages, while the headlands are generally
abrupt and lofty. The islands which dot the coast are
barren and rocky ; but they afford excellent accommoda
tion for the myriads of sea-birds who provide the
valuable guano deposits which are used for fertilizing.
The coastal region may be subdivided from north to
south into five different sections : (l) Piura ; (2) Lam-
bayeque and Truxillo ; (3) Santa ; (4) Lima to Nasca ;
(5) Arequipa and Tacna.
If the country is not blessed with many good ports,
it is extremely well provided with rivers, beautiful
scenically and valuable commercially. There are some
forty-six of these in the Pacific system, apart from the
considerable number contained in the Lake Titicaca
and the Amazon regions. Altogether, Peru can boast
of nearly 8,500 kilometres of navigable rivers; and
even at low water they are open to traffic by means of
shallow-draught steamers. The Ucayali River alone
is navigable for 1,000 kilometres, and the Amazon (in
the Peruvian zone) for 680 kilometres.
Usually speaking, the rivers flowing into the Pacific
rise in the sierra between the coast and the central
Andean ranges. The principal waterways are the
Tumbes, the Chira, the Piura, the Santa, and the
Rimac, while nearly half a hundred other streams have
important influence upon the country through which
they course. Those rising in the part east of the

4 PERU OF THE TWENTIETH CENTURY
central Cordillera, are all tributaries, more or less
remote, of the Amazon River. But the ultimate head
of that magnificent waterway rises in the sierra in 1 1 °
south latitude, having its source in the small lake, Lauri-
Cocha, and flowing north-west nearly parallel with the
Pacific Coast. It drains the western slope of the central
range, and after a course of 4,000 miles, it reaches the
Atlantic. The affluents of the Amazon, which is also
called the Maranon, constitute a vast system of inland
navigation-waterways in the forest region. There are
the Perene\ the Ucayali, the Huallaga, the Paucar-
tambo and the Madera.
Of the famous and extensive body of water Lake
Titicaca much might be written, since it is not only
the largest but the highest of its kind in the world.
Its length is 120 miles, and its width 60 miles ; it lies
in a basin 300 miles long and 100 miles wide, the eleva
tion above sea-level being no less than 12,545 feet.
Naturally, the temperature can be very cold at times ;
and I have shivered on these waters as I have done
nowhere else, although the sun has been shining
brilliantly overhead. There is a regular service of
steamers running under the auspices of the Peruvian
Corporation, the embarking and disembarking points
being Guaqui and Puno, upon the Bolivian and Peru
vian sides of the lake respectively. To anyone who had
the time to spare, Lake Titicaca offers great temptation
to exploration. It is so intimately associated with the
early Inca period, and it is so steeped in fascinating
tradition, that one might — were the spirit amenable —
devote many days and even weeks to studying this
unique sheet of water and its neighbourhood with both
profit and pleasure. One day I hope that this con
genial and attractive task may be mine — at least in
part. Nature has, to some extent, compensated Peru for

OCEAN CURRENTS 5
the absence of any particularly fine harbour by pro
viding an exceptionally pacific sea, a comparatively
rockless coast, and a complete absence of dangerous
and sunken reefs and invisible shoals. The movement
of the sea, if occasionally somewhat unpleasant for
those ships which must anchor outside for any length
of time, on account of the swell which sometimes
becomes pronounced, is nevertheless very regular.
There are no violent storms to be apprehended,
although the wind, during certain months of the year,
can prove very chilly and inhospitable. The ocean
current comes up from the South Pole, and the waves
have an average temperature of 7° in excess of that
of the sea itself, and it is this, no doubt, which con
tributes to the cooling of the atmosphere. This
current is known by various names — " Humboldt "
(after the eminent German explorer, who is said to
have identified it), the "Antarctic," and "Peruvian."
It has a breadth of 150 miles and a velocity of
20 miles in the twenty-four hours, running up the
coast from south to north along the entire extent.
During the summer months there generally occurs
along this wide stretch of even and very sinuous coast
line an ocean current running in an opposite direction
to that already mentioned, and which is supposed
to be a prolongation of the equatorial current, which,
at the altitude of 5° south latitude, divides in the form
of a wedge into two branches — namely, the greater
current of 150 miles width, and the lesser, which takes
the direction of the north-west.
I have referred to the many large and small rocky
islets which are found along the coast. I may add
that none of these are inhabited. The most suitable,
on account of the immense guano deposits which they
once possessed, and still, to some extent, contain, are
the Lobos de Afuera, Lobos de Adentro, and the

6 PERU OF THE TWENTIETH CENTURY
Guanape Islands, on the Northern Coast ; the Chincha
Islands, consisting of three different groups — the
North, the Central, and the South, all in the Central
region ; San Lorenzo Island, about six miles to the
south-west of Callao, and a few unnamed rocky islets
scattered about up and down the long coast-line.
Were time and money to be devoted to the close
study of the larger Peruvian rivers, I am of opinion
that many of them might be converted into safer and
surer means for transportation ; and where steamers
can now proceed for hundreds of kilometres only, they
might be enabled to journey for thousands. Take, for
instance, the Amazon— or, as it is also called, the
Marafion — the Putumayo, the Ucayali, the Puriis, the
Igaraparana, the Lower Ucayali, Yavari, the Madre
de Dios, the Aquiri, the Morona, and the Napo.
Steamer and sailing-craft traffics are conducted here for
the greater part — say at least nine months — of the year ;
but with continual attention to dredging and some
engineering improvements, which, if costly, could easily
be effected, navigation might be carried on for the
whole of the twelve months.
Steamers of 6 millimetres (20 feet) draught can
proceed at high-water down the Lower Ucayali for at
least 1,400 kilometres ; down the Maranon, as far as
the port of Limon, for 780 kilometres ; down the
Napo, as far as Aguarico, for 900 kilometres ; down
the Puriis, from Labrea to the Catay, for 1,540 kilo
metres ; and down the Putumayo, up-stream from the
Peruvian boundary, Igaraparana, for 330 kilometres.
Even at low water traffic is carried on upon the
Lower Ucayali, as far as Contamana, for 1,000
kilometres ; from Maranon to port Limon, for 780
kilometres; and on the Amazon, for 680 kilometres.
Altogether the Peruvian rivers, during the low-water
season, will carry steamers of from 4 to 8 feet draught

MOUNTAINS AND VOLCANOES 7
for a distance of 2,720 kilometres, and steamers
of from 2 to 4 feet, for 4,980 kilometres; while the
smaller rivers are open at most times to canoes and
small row-boats.
Upon practically all of these waterways the scenery
is marvellously beautiful. Nature is seen here in her
most entrancing garb and most bewildering colouring
— such trees, such ferns, such flowers ; and, alas ! such
mosquitoes and other creeping, crawling, stinging
things !
It is in Peru that the superb Cordilleras of the
Andes are found in their most majestic forms, three
separate ranges, one more imposing than the other,
stretching their chains around and across the country
in vast links, separating the various watercourses and
breaking up the fertile lands into valleys of unequal
length and width, but of uniform fairness, their own
peaks now soaring into the skies and again sinking
to considerably below the perpetual snow-line, but
always impressive and frequently awe-inspiring.
Truly, as Ruskin has told us, "Mountains are the
beginning and the end of all natural scenery," and no
where does one realize this more fully than in the
Peruvian Andes.
Of volcanoes the country may likewise claim a few
well-known specimens, such as Tutupaca, which ex
hibits two fine peaks and one of which last erupted in
1802 ; Ubinas and Huaynaputma, which, with the first
named, are all in the Province of Moquegua. Then
there are the magnificent Misti, overlooking and even
threatening the city of Arequipa ; the Coropuna, which
has not yet been correctly measured, but which is
declared by some geographers to be the highest of
all the Andean peaks ; the Hachatayhua and the
Candarave, or Yacumani. All of these are in the
Western Cordilleras ; while the one exception is the

8 PERU OF THE TWENTIETH CENTURY
Apucanachuay, which is on the Eastern range, and has
a crater rising to the stupendous height of some 4,220
metres (ab6ut 13,000 feet). A superb view of this giant
can be obtained by travellers passing along the road
near Tres Cruces, descending from the Department
of Cuzco to the valleys of the Paucartambo.
In a country so plentifully supplied with volcanoes,
it is not surprising to hear of frequent earthquakes,
with a record of some few bad ones among them.
Indeed, these visitations seem to have been of greater
violence in this part of the world than any other,
if one may judge of the awful destruction occasioned,
first at Callao and Lima in 1746, and subsequently
at Arequipa in 1868. The latest visitation of the
kind was experienced in May, 1877, when the whole
of the southern part of the Republic was more or less
affected. The montana, or forest, region, which is abundantly
watered by periodical rains, is very extensive, and
here the young Republic is possessed of a totally
untouched reserve of timber wealth, which one day
will become a precious asset. The belt of forests — not
merely " woods," but dense, tropical forests, full of
magnificent trees, such as ebony, mahogany, cedar,
hardwood, and practically every tropical tree or plant
known in the botany of South America — stretches
from the eastern slopes of the Cordillera as far as the
frontiers of Bolivia and Brazil. It is estimated that
these same forest lands constitute fully two-thirds of
the total surface of Peru. The most valuable trees
hitherto have been found in the rubber (castilloa
eldstica) and the olive (olea europoea), both of which
will undoubtedly be much more generally cultivated in
the future.
It may not be out of place to mention here that
some sample olives grown in Peru were sent from

FLORA, FAUNA, PISCES 9
Ho to the Paris Exhibition, and were there awarded a
gold medal. Much might be done in the direction
of both growing the tree and using the oil for com
mercial purposes. There is a continual demand for
the article, but the Peruvians do not produce any
thing like enough for their own requirements, and
it must be, therefore, many years before olive-oil can
figure in the list of foreign exports to any extent.
But this is only one of numerous industries which
are in their infancy, and need but enterprise and the
necessary capital to convert them into permanently
profitable undertakings. Fruit cultivation of all kinds
should pay those who pursue it intelligently ; for while
the Peruvians are great consumers of fruit, they put
themselves to very little trouble to cultivate it. But
they will buy it eagerly from those who do.
With the exception, perhaps, of Colombia and Vene
zuela, I know of no country in the world where a more
varied and beautiful flora and fauna can be found than
in Peru. The latter alone — according to the English
man, William Mason, who was a traveller in the Re
public some thirty years ago, and who is regarded
still as the greatest authority upon the subject — con
tained 40,000 different specimens, including many
birds of passage. This is, unfortunately, not the place
to enumerate them, even were it within my capacity to
do so ; but I have determined some day — Deo volente —
to return to Peru for the sole purpose of studying
its wealth of flora, fauna, and pisces.
These latter may be found in a riot of abundance
in practically all the rivers, as well as along the coast
line of 1,300 miles, such as the corbina, weighing
from six to ten pounds, and having a delicious flesh ;
the skate, the sole, the plaice, the haddock, the cod,
the flounder, the smelt, the mackerel, in addition
to the lobster, the prawn, and the shrimp. I have

10 PERU OF THE TWENTIETH CENTURY
seen specimens of the latter weighing as much as
one pound each, not exactly the type of fish of which
Bayard Taylor sings, " Shrimps and the delicate peri
winkle, such are the sea-fruits that the lasses love " ;
but, nevertheless, toothsome and palatable enough.
Then the butterflies, the gorgeous, glittering, and
gem-flashing myriads of insects, some as large as
thrushes, which flit and flash through the air or which
whirl in clouds of crimson, of green, or of shimmering
yellow, over certain spots which contain the flowers of
which they are most fond. The forests are full of
them, as of strange beetles, bugs, and other creeping
things — things, moreover, which sting and bite furiously,
and not infrequently impart death-dealing venom.
Truly a paradise for the entomologist, the zoologist,
the ornithologist, and all the other " ists," who make
the works of Creation their special study and interest,
is Peru.

CHAPTER II
Spanish conquest of Peru — Records of cruelty and oppression — Inter
necine quarrels — Francisco Pizarro — War of Independence — Peace
compacts — Frontier delimitations — Questions with Bolivia, Brazil,
and Colombia — Loreto dispute — British officers as referees — Expedi
tions at work on frontier delimitations — British services to Peru —
Native exploration expedition.
Peru was the centre from which radiated all the
Spanish expeditions formed to reduce South America.
It was the one country which fought the most reso
lutely, but quite uselessly, against the Conquerors, and
history teems with instances of the astonishing bravery
of these ancient Peruvians who wrestled, entirely
unarmed, the noblemen and chiefs combating with
their bare hands against the weapons of their enemies.
Naturally their losses were enormous, and the in
vincible Pizarro was enabled to do precisely what
he pleased with them.
We learn of no more horrible instance of Spanish greed
and treachery than the capture and garotting of the Inca
Atahualpa. Pizarro secured him easily enough, by
treachery, and could have used him — as, in fact, he did
— for the purpose of putting an end to further re
sistance ; but in spite of the three and a half millions
of gold coin ransom, demanded and paid for his life, no
sooner had the Spaniards secured (and counted) the
amount of gold brought in, than they put the unfortu
nate prince to a hideous death. The only parallel for
this shocking crime is the burning alive, by Hernan
11

12 PERU OF THE TWENTIETH CENTURY
Cortez, of the luckless Guatemoc, the noble Aztec King
of Mexico.
Prescott tells us all about those and many other
terrible deeds done by these European barbarians in their
ceaseless search for gold ; and all who would know the
details of the Spanish conquest of Peru, as well as
that of Mexico, may read with confidence, if with
feelings of disgust, this brilliant American historian's
accounts. It is little less than astonishing to remember
that during practically the whole of his literary career
Prescott was compelled to employ the services of a
reader, since he was practically blind, as a consequence
of an accident which happened to him during his college
days at Harvard.
Even the quarrels among the Spaniards, and the
ultimate assassination of both Pizarro and Almagro,
did little to help the Peruvian natives, for their
earliest tyrants were succeeded by one even more
merciless — Pedro de la Gasca — and the rest of the
Spanish adventurers continued uninterruptedly to
spread themselves across the face of the country,
Gonzalo Pizarro proceeding to the East, where he lost
fully one-half of his men in an expedition, but which
resulted in his lieutenant, Orellana, making the first
voyage down the Amazon which was ever undertaken
by a white man ; Gongalo Jimenez de Quesada con
quering the land of the Chilchas Indians and forming
the kingdom of Granada ; while others went overland
to the mouth of the River Plate in order to forestall
the Portuguese, the Spanish King, Charles V., at the
same time encouraging his other subjects — the Germans
— to occupy and exploit Venezuela.
The land of the Incas is said by no less an authority
than Sir Clements Markham, who has written upon
Peru and its interests for something like half a century,
to have been 250 miles in length by 60 miles broad.

ANCIENT PERU 13
I have no idea how Sir Clements arrives at his con
clusions, more especially as other geographers and
historians assert that ancient Peru consisted of the
whole of the vast stretch of territory now known as
the Republic of Ecuador, Peru, Bolivia, and the lands
situated to the north of Chile and of the Argentine
Republic. I think Sir Clements will agree that this
area of land measures something more than "250 miles
long by 60 miles wide." While questioning the
correctness of these computations, I have no hesitation
in recommending Sir Clements Markham's book " The
Incas of Peru" to the consideration of readers who
desire to acquaint themselves with an exhaustive and
painstaking study of Peruvian history. Even when
not quite accurate, Sir Clements is always readable.
The Incas — the very name conjures up romantic
visions and feelings of profoundly melancholy interest
— were generally regarded as mainly of Quechua
origin, with a possible Aymara admixture, but in some
of the interior parts of Peru to-day one meets with
people who assure one that the Incas came from far-off
lands and "arrived by sea." Of course, they know
nothing about it, and merely repeat some of the many
legends and traditions, of which they possess an in
exhaustible supply, and they rattle them off quite
glibly, with only a very little amount of encourage
ment. It is to be much regretted that, for the most part,
all that ' we possess in the way of records of ancient
Peru are a few paintings of the earlier inhabitants and
relics of that section of the population — known as the
Yunga — of which the least is known. No doubt there
were many valuable and interesting records in exist
ence at the time of the Spanish invasion, but these
must have been destroyed by the same vandalism
which characterized the treatment of early Toltec and

14 PERU OF THE TWENTIETH CENTURY
Aztec relics received at the hands of the Spaniards in
Mexico. Blood and slaughter, slaughter and blood, are the
main incidents which. strike the reader who attempts to
follow the arrival, the conquest, the defeat, and the
expulsion of the Spaniards in Peru. Braver men never
lived ; greater brutes never breathed. One's feelings
are divided between admiration for the stirring, daring
deeds of valour accomplished and simple loathing for
the senseless butchery which followed. Treachery,
jealousy, conspiracy, and assassination confront one
upon every page of this astounding history, reminding
one forcibly of the poet Burns' lament : " Man's in
humanity to man makes countless thousands mourn."
Francisco Pizarro, the base-born, illegitimate son of
a colonel of infantry, and himself as great a soldier, as
sound a statesmen, and as keen a politician as ever
any age produced — as we have seen in the previous
chapter — came to Peru in 1524. He came for a second
time in 1530 ; he fought practically every day there
after until there were no more Indians to fight — at
least, no more who had any fight in them. He then
waged war against his own brothers-in-arms, and there
followed a long, cruel, and relentless civil War which
was carried on with all the ferocity and bestiality
of the Spaniards. Assassination followed execution,
and execution followed hideous torture. At last
Francisco Pizarro came into his own. Having executed
Diego de Almagro, his former lieutenant, Diego's
young son assassinated Pizarro as he sat at dinner in
his house at Lima, on June 26, 1541 — just twenty-one
years after he had first seen the golden shores of
Peru, and eleven years after he had descended upon
it like a scourge.
The sanguinary internecine war continued for long
after Pizarros death, even the Viceroy, sent out by

Francisco Pizarro. The Conqueror of Peru.
Born 1471. Assassinated 1541.
From a Contemporary Painting.

INDEPENDENCE OF LATIN- AMERICA 15
King Charles V. of Spain to restore order, being killed
in battle waged by the King's own subjects. Rebellion
ran rife throughout New Spain, and the utter failure of
the Spaniards to justify their presence in the country
at all — if one except their own immense enrichment —
was continued right through the Colonial period and
up to the time of the War of Independence. Did
matters improve at all then ? Let us see.
It is a little more than a century — to be accurate
it was in the year 1806 — since the first rumblings of a
political upheaval, which was destined to free the
whole of the South and Central American Colonies
from the intolerable thraldom of Spain, were heard.
Peru, although not taking the initiative, and being the
last of the various Colonies to break away, benefited.
One, Francisco Miranda, organized an expedition in
New York, which was then, as now, the nest of much
of the turbulence and political conspiracy which have
troubled Latin- America; the idea originally was little
more than a filibustering escapade into Venezuela.
It was not only to the United States, however, that
Miranda appealed, for, allured by the prospects of
a war between England and Spain, this Venezuelan
revolutionary came over to London and had several
interviews with William Pitt the Younger. In the year
1804 his relations with the British Prime Minister
were very intimate, in spite of the fact that some years
previously (September, 1791) we find Pitt writing to
Miranda, stating that " he cannot grant him the
pension he asked for nor the sum of £1,000 " ; and that
" £500 (which presumably he sent to him) must suffice
for the expenses incurred during his stay in London."
It was to William Pitt that the daring adventurer
unfolded this original plan of revolutionizing Spanish
America. Pitt regarded him as a formidable weapon
who might be used against Spain ; but there is very

16 PERU OF THE TWENTIETH CENTURY
little reason to believe that the great Commoner cared
anything about the independence of the Spanish
American Republics.
The expedition failed ; but Miranda and most of his
American mercenaries escaped. But the match had
been laid, and from that time until complete separation
from Spain had been secured — that is to say, for some
thirty years — one long, continual, sanguinary conflict
was waged, in which thousands of men lost their lives,
others their reputations, and some few among them
forfeited both. This was the time when such giants
and heroes as Simon de Bolivar — the brave Argentine —
Boves, Morales, Sucre, Paez, and San Martin fought
with a courage and determination almost incredible,
and conducted campaigns in a country which is about
the most difficult, from a physical point of view, for
carrying on a war of conquest as exists in any part of
the world.
The many peace compacts which were signed, first
with Spain itself, and then when the young States com
menced to fly at each other's throats, were as so much
waste-paper. So far as Spain was concerned, she
abandoned, only with reluctance, the beautiful and
fertile land of the Incas; and as late as 1866 we find
the Peruvians and the Spaniards at war, the last
encounter of all, which took place on May 2 of that
year, being commemorated by a handsome monument
erected in Lima, and standing some 70 feet in height.
Although divided into separate sovereign States, the
question of boundaries which arose caused continual
encounters, invasions, and outrages ; so that for nearly
half a century these young and silly countries were
disputing with one another, and have remained so
more or less — and rather more than less — almost until
to-day. It was only last year that a fresh encounter
was threatened between Peru and Ecuador over a

BOUNDARY DISPUTES 17
boundary dispute which has lasted a full century.
But for the great good sense and admirable restraint
manifested by President Augusto B. Leguia and his
advisers, nothing could have prevented a clash of arms,
which would not only have ended with the defeat
of Ecuador — much the weaker of the two — but have
probably dragged in Chile and perhaps Bolivia, with
the result of a wholesale South American entangle
ment, in which all of the States must have suffered
pecuniarily, financially, and morally.
In this matter different versions of the dispute must
inevitably occur ; but inasmuch as this makes no pre
tence of being a political publication, the details of the
controversy must be sought elsewhere than in these
pages. To those who are interested in the matter to
such an extent as to wish to study with closeness the
merits and demerits of the Peru-Ecuador Boundary
Question, I would suggest the perusal of the following
Treaties and Agreements which were entered into, and
which have important bearings upon the subject : The
Treaty of Amity between Columbia and Peru of 1822;
The Agreement of the Delimitation Commission of
1830 ; The Demarcation Treaty of 1841 ; The Boundary
Treaty of 1860; The King of Spain's Arbitration
Award of 1887 ; The new Treaty of Boundaries of 1890 ;
The Tripartite Treaty of 1894; The Convention of
1905. A lengthy list of agreements in very truth,
comprising volumes of litigious history, most of which
have been valueless and barren of results.
At the time of writing, friendly — or at least diplo
matic — relations have been restored between Peru and
Ecuador through the intervention of mutual peace
makers — the Governments of Argentina and Brazil —
and although Ecuador has stubbornly refused to submit
the boundary question in Peru to the arbitration of
the Hague Tribunal, there is reason to feel pleasure at
2

18 PERU OF THE TWENTIETH CENTURY
Peru and Bolivia having decided to refer their differ
ences, also arising over boundary questions, to the
Royal Geographical Society of London. I feel the
greater satisfaction in this recognition of the Society
by reason of the fact that I am, and have for some
years past been, a Fellow. Neither is it the first
occasion upon which the Society has been requisitioned
to act in disputes between two foreign countries upon
a matter of frontier delimitations. After the late
King's Award in respect to the boundaries between
Chile and Argentina, based upon the investigations
and reports made to his late Majesty by Colonel Sir
Thomas H. Holdich, K.C.M.G., K.C.I.E., C.B., a Vice-
President of the Royal Geographical Society, and
which Award was delivered in November, 1902, both
Brazil and Bolivia agreed to a treaty making important
changes on their common frontier, and providing that
any disagreement which might arise in the demarcation
of the new boundary, and which the two Governments
could not themselves settle, should be decided by the
Royal Geographical Society of London.
The same learned body obtained for Bolivia the
services of Major Fawcett, who was in Bolivia at the
same time that I was there last year (1910), in order
to define the boundaries between the neighbouring
Republics, Bolivia and Peru. Major Fawcett had
already completed his preliminary reconnaissance, and
upon his decision to the effect that further modifica
tions would be necessary to define accurately the
delimitations of the common frontier, the Governments
of the two countries are acting.
This is a great compliment to British prestige, more
especially as the services were not volunteered.
It may be pointed out, however, by the impartial
critic that this boundary question differs materially
from usual squabbles of the kind in which the " honour

CLAIMANTS FOR LORETO 19
of the flag" and the "dignity of the nation" play
prominent parts. Here there is involved a serious
question of territory — valuable territory — no less than
the desirable province of Loreto. This large tract of
land covers an extensive region in the very centre of
South America, and is divided into northern and
southern sections. Peru claims the northern section
from Ecuador, and as this claim means the yielding up
of about one-fifth of the entire territory, it is not diffi
cult to understand Ecuador's objection to giving way.
In regard to the southern section, Peru has claims
against both Brazil and Bolivia. Moreover, the
Republic of Columbia would also be involved, since in
days gone by Ecuador ceded — for a sufficient considera
tion — a portion of the disputed territory to Columbia,
and should Peru secure in its favour a judgment to its
possession, this portion would naturally have to be
given up also. The United States Government has
already recognized Peru as the legitimate owners of
this territory.
Pliny's axiom, Nihil enim ceque gratum est adeptis,
quarn concupiscentibus, does not apply to lands ; for the
more countries have the more they want, and the mere
sense of possession, even though it be valueless from
an economic point of view, seems to afford satisfaction.
As I have observed, however, this is a dispute which
means the loss, or the acquisition, of a territory un
usually rich in timber, rubber, and mining possibilities,
and which any country would regard with feelings of
envy. Several British officers have been supplied to the
Peruvian Government, at the request of the Minister
in London, for the purpose of carrying out the de
marcations of the newly accepted frontiers of Bolivia
and Peru. The party formed consisted of Colonel
O. J. Woodroffe, R.E. (who has had previous ex-

20 PERU OF THE TWENTIETH CENTURY
perience of boundary - surveying- in East Africa),
Captain H. S. Toppin, Lieutenant M. R. Nanson, and
Lieutenant C. G. Moores. They left England early
in January last, and they expect to be absent on
this mission for at least three years. Both Captain
Toppin and Lieut. Nanson are Fellows of the Royal
Geographical Society, and hold its diplomas for sur
veying. Colonels Fawcett and Woodroffe joined forces
at Juliaca (Peru) last May, and proceeded via, Tira
pata to the Inambari and Madre de Dios Rivers,
where the survey of the boundaries commenced.
Not to be undone in the matter of expeditions,
and recognizing that since " the mountain will not
go to Mahommed, Mahommed must go to the
mountain," some North Americans have organized a
little undertaking to explore Peru on their own
account. One, Professor Hiram Bingham, was to
have left the U.S.A. on June 10 last, and to be absent
until December next, doing " archgeological, geographi
cal, and historical exploration." What the party
expected to accomplish of a practical character in six
short months, including the time spent upon the
journey there and back, it is difficult to imagine.
There have been several women travellers, writers,
and explorers, who have exploited Peru as a happy
hunting-ground from time to time, and some, I am
sorry to say, have left anything but a pleasant memory
or an enviable reputation behind them. There has
been one notorious female, of alleged American
nationality, who continually rode about the Republic
in man's attire, and whose general conduct created
no small amount of scandal wherever she bent her
footsteps. An intolerable nuisance to her all-unwilling
hosts and a disgrace to her own sex, this woman will
be readily recognized from this description among
those who had the misfortune to know her.

WOMEN TRAVELLERS 21
On the other hand, there have been several promi
nent and well-recommended ladies who have travelled
extensively in Peru, and who have astonished the
natives by their extraordinary powers of endurance
and physical pluck. Mrs. Marie Robinson Wright,
who has written a considerable number of handsomely
produced volumes upon the Latin- American States,
will be remembered ; and her book on " Old and New
Peru " will have made her many warm friends in that
Republic. Another American lady who has left behind her
many pleasant memories is Mrs. Harriet Chalmers
Adams, the very handsome and accomplished wife of
Mr. Franklin Adams, Chief Clerk of the Pan-American
Union, and Editor of that excellent publication, " The
International Union of American Republics Bulletin."
Mrs. Adams, who has spent three years in the Latin-
American Republics, and has travelled 40,000 miles
therein, also visited Peru, and travelled it from end to
end. She not only made the usual and often very
fatiguing pilgrimages to Cuzco, Arequipa, Titicaca, and
other places, but she undertook a horseback trip, in
the company of her husband, extending over 1,000
miles across the Andes, passing the height of 17,000
feet among the eternal snows. This intrepid young
lady then followed the down mountain-trail into the
savage and almost unknown montana country, and at
the end of the road journey passed many days and
nights in a small and cramped canoe, and often
trudged through the dense forests on foot. Mrs.
Adams relates how, on these travels, she encountered
the wild Indians known as Ihe Chunchos, as well as
numerous fierce beasts, strange birds, and innumerable
deadly insects ; certainly, for a woman delicately and
luxuriously bred, her experiences may be deemed
almost, if not quite, unique.

22 PERU OF THE TWENTIETH CENTURY
In the meantime, the Peruvian Government is en
couraging native explorers, several reliable parties
having of late months started for the interior, assisted
by the authorities. Among them is Captain Juan
Manuel Ontaneda, Chief of the Hydrographic Office in
Lima, who is commissioned to make a comprehensive
study of the geography of the Department of Loreta,
to trace the course of its rivers, and prepare for con
sultation and reference the necessary maps and plans
relating thereto. Captain Ontaneda is being assisted
by Captain Carlos F. Garcia Rosele, and First-
Lieutenant Manuel A. Sotil, all three of whom are
practical experts.
As soon as the expedition has completed its labours,
and which are expected to occupy a considerable
amount of time, a full and detailed report will be
made to the Government, which will publish it for
distribution, the idea being to assist private persons
and public organizations who are interested in the de
velopment of the very fertile and promising section
of Peru, who can thus avail themselves, and benefit
indirectly the country itself, of the bountiful resources
of this region. This is true and legitimate enterprise
upon the part of a Government, and sets an excellent
example to others.

CHAPTER III
President Augusto B. Leguia — Dr. German Leguia y Martinez — Dr.
Eugenio Larrabure y Unanue — Dr. Julio Enrique Ego-Aguirre —
Dr. Enrique 0. Basadre — Senor Don Enrique Oyanguren — Dr.
Edmundo N. de Habich — Don Carlos G. Cardamo — Dr. Carlos
Larrabure y Correa — Senor Eduardo Lembcke — Peruvian Legation
in London — British Minister to Peru — United States Minister and
Consuls — British Consul-General at Lima.
Many of the reigning Presidents of Latin- American
States are capable linguists, most of them speaking
French and some few English. The two Chief
Magistrates who shine most conspicuously in this
direction are the President of Peru, Senor Don
Augusto B. Leguia, and the President of Costa Rica,
Senor Dr. Ricardo Jimenez. The former might very
well pass for an Englishman, so admirably does he
express himself in our language and so free from accent
is his pronunciation.
Senor Don Augusto B. Leguia was born at Lam-
bayeque in 1863, so that he is still a comparatively
young man. His early education was conducted at
Valparaiso (Chile), and upon completing this he
came back to Lima, where he entered one of the
leading native commercial establishments. Although
obtaining speedy promotion, young Leguia resigned
his post in order to enlist as a private soldier during
the war between Peru and Chile ; and he then dis
tinguished himself greatly, and especially at the
memorable battle of Miraflores.
Peace being proclaimed, the young soldier devoted
himself once again to mercantile pursuits,, becoming
23,

24 PERU OF THE TWENTIETH CENTURY
special agent, and later General Manager, of the New
York Life Assurance Company in Peru, Ecuador,
and Bolivia. Later, the Company withdrew from this
part of South America, when Senor Leguia started
the now well-known office La Sud America, which
his great administrative ability soon established as a
popular and prosperous institution.
A short while afterwards there was organized
another important enterprise, the British Sugar Co.,
Limited, which owned an extremely large area of
territory in the Cafiete and Nepana valleys, estates
which have been pronounced to rank among the most
important and the most skilfully managed in Peru.
Senor Leguia remained as General Manager of this
Company up to the time that he was elected to the
Presidential Chair in September, 1908 ; and the same
ability which he had displayed in organizing and
controlling these and other great industrial under
takings has served him in his more responsible position
as Chief Magistrate of the Republic.
Five years previously Sefior Leguia had practically
commenced his political career. In 1903 his great
genius for finance had attracted the attention of
President Candamo, and, after much persuasion, he
served him as his Minister of Finance. How well
founded was the President's belief in his new adviser,
and how shrewdly he had gauged his ability was
speedily proved ; for from the time that the new
Minister took over the control of the finances of the
State they commenced to improve, and they have
consistently advanced since. In another part of this
volume, in speaking of the financial conditions of
the Republic, I have referred more fully to the
prominent part which Senor Augusto B. Leguia has
played in their reformation.
"VVhat the famous Jose Yves Limantour was to

His Excellency the President of the Republic of Peru. (1908-1912)
[Senor Don Augusto B. Leguia.]

PRESIDENT LEGUIA 25
Mexico in the early days of its financial difficulties,
Senor Leguia has been to Peru. No greater skill could
have been displayed, nor any more shrewd diplomacy,
than that which has been brought to bear upon this
latter Republic's economic position. Delicate operations,
calling for both circumspection and consummate know
ledge of human nature, were carried out by Senor
Leguia with the utmost sagacity and prudence, and
radical changes in the monetary status of the country
were brought into operation without causing the
slightest disarrangement of normal conditions. To
day, the country may be said to have emerged com
pletely from the sea of its many difficulties — difficulties
in which it, at one time, seemed destined to become
engulfed. The country has established a sound com
mercial and monetary credit which nothing can
apparently shake.
It is not only in the field of finance, however,
that Senor Leguia has established an enviable reputa
tion or evoked the admiration of his contemporaries.
His great personal worth, and the undoubted physical
valour which he displayed at the time of acute political
upheavals and threatened war with more than one of
the neighbouring Republics, the shrewd sense with
which he controlled the situation — one which appeared
almost hopeless of solution — have obtained for him
the esteem — I may say the affection — of the Peruvian
nation. The Peruvians, like the majority of mankind, look
up to and admire a thoroughly brave man — not a
merely reckless and venturesome individual, who thinks
little of his own life and nothing of other people's ;
but a really plucky and resourceful leader, who realizes
La Rochefoucauld's conception of a brave man — "per
forming without witnesses what one might be capable
of doing before all the world."

26 PERU OF THE TWENTIETH CENTURY
As Head of the State, President Leguia has earned the
respect of even his most determined political opponents,
if even he has failed to gain their adherence ; his own
party are devoted to him. Since he has been in
office, he has maintained a scrupulously equitable and
non-partisan attitude ; he has conscientiously fulfilled
to the very letter his sacred oath of fidelity to the
Republic ; and he has fought gallantly for the dignity
of his country in all questions affecting its interests.
By his scholarly attainments and great personal charm
of manner, he has made many warm and zealous
friends, and he has likewise contributed, to a very
considerable degree, to the restoration of Peru as a
potent factor among the Latin- American countries of
the world.
Dr. German Leguia y Martinez, Ministro de Rela-
ciones Exteriores (Foreign Affairs), before accepting
office under the Basadre Cabinet, had had a dis
tinguished diplomatic career. Summoned to join
President Leguia's present advisers from occupying
the post of Envoy Extraordinary and Minister Pleni
potentiary at Quito (Ecuador), Dr. German Leguia
y Martinez had had previously several years' ex
perience in the same country.
In 1880 and 1881 Dr. German Leguia y Martinez
served as Attache" of the Legation in that Republic,
and in 1888 he became Second Secretary, serving
in that capacity until 1893. In 1897 he became a
Deputy, and during the Pardo administration he acted
as Prefect — equivalent to a Lord- Lieutenant, but
endowed with much wider powers — of Piura. By
profession this gentleman is a lawyer, and he has
displayed conspicuous ability in handling several com
plicated and important cases. For some time he was
" Vocal " of the Superior Court of Arequipa, and later
on he filled a similar post at Lima.

THE PRESENT AND LATE MINISTRY 27
From there he went to Ecuador. From his early
youth, Dr. Leguia y Martinez has been known as
a clever and vigorous writer, his contributions to
didactic literature being celebrated, indeed, beyond the
confines of his own country. He is a man of powerful
intellect, quiet and unobtrusive disposition, possessed
of great tact, and, in fact, he is as good an example
of a cultured Latin- American diplomat as one can hope
to meet with. Dr. Leguia y Martinez's sympathetic
attitude towards foreigners and foreign enterprises, as
well as his courtly and dignified manner, render him a
distinct acquisition to a Cabinet already rich in cultured
and talented men. He is still on the sunny side of fifty.
Dr. Eugenio Larrabure y Unanue, first Vice-Presi
dent of the Republic, is not only possessed of great
literary and scientific attainments, but he has travelled
considerably, his most recent visit to Europe having
taken place in December of last year. Dr. Larrabure
y Unanue represented his country as Special Ambas
sador at Buenos Aires, during the Centenary Cele
brations of last year ; he has had many valuable oppor
tunities of studying different countries and peoples,
of which he has always made the greatest use.
Dr. Julio Enrique Ego-Aguirre, ex-Ministro de
Fomento (Minister of Promotion), was born in 1862,
and was considered one of the most brilliant students
at Guadalupe College. Later on, he studied jurispru
dence at San Carlos, and in 1885 he graduated as
a fully qualified lawyer. The annals of the Peruvian
Courts contain no more remarkable records than that
of this clever young barrister's spirited and vigorous
defence of the famous criminal Machiavelli, an oration
which is said to have both astonished and delighted his
auditors, and which succeeded in establishing an imme
diate reputation for its author. Up to that time no
one in Peru had heard, nor had imagined, a defence

28 PERU OF THE TWENTIETH CENTURY
based upon the assumed irresponsibility of the accused ;
but since then the theme has frequently been pleaded,
and is now cited as a common defence in all countries.
The theories of Lombroso had then, however, made but
little stir, and certain it is that young Ego-Aguirre
had not these, nor indeed any other theories, in his
mind at the time. In fact, he himself created a new
teaching, one which has since found general endorse
ment and adoption. It may be added, that so powerful
was his defence of Machiavelli, that although the
criminal was actually convicted and condemned to
death, the sentence was subsequently revoked.
For some years Dr. Ego-Aguirre resided in Oruro
and La Paz, in both of which places he distinguished
himself. In 1885 he went to Iquitos, where he
remained for a considerable time, having filled several
responsible positions in the administration of that city.
In 1907 he was elected Senator for the Department of
Loreto, which he continued to represent until his
appointment to the Ministry of Promotion. He has a
close and intimate acquaintance with the commercial
and industrial progress of other countries — European
and American alike ; and his broad sympathies with
foreigners generally have made him extremely popular
with residents in Peru. Under his directorship, the
Ministry of Fomento has encouraged and promoted
many very valuable and useful undertakings, not the
least of which is the comprehensive library of works
dealing with the resources of the country and the
numerous opportunities which exist for adding to and
exploiting them. Dr. Julio Enrique Ego-Aguirre
is considered one of the most distinguished and
advanced men of his day, for whom further national
honours are undoubtedly in reserve. He has recently
been paying a lengthy visit to Paris for the purpose of
establishing in that Capital an Information Bureau in

THE PRESENT AND LATE MINISTRY 29
connection with the commercial and industrial progress
of Peru.
Dr. Enrique C. Basadre, ex-Minister of Government,
was born in Tacna, in 1847. His education com
menced in the English school of Valparaiso, Chile, and
was continued at the National College of Guadalupe,
Lima, from which he graduated to enter the National
College of Medicine, taking his degree as physician and
surgeon in 1873. The next four years were spent in
post-graduate work in Europe.
Dr. Basadre ranks among the foremost physicians in
Peru, and is known principally in connection with the
founding, in conjunction with Drs. Ganoza and Morales,
of the first institute of electrotherapy, and in relation
to his notable army and navy hospital work. As a
student at the Medical College, he volunteered for
service and fought with such good effect at the battle
of Dos de Mayo that he was specially mentioned
in dispatches by Colonel Inclan, who was in command.
At the commencement of the Pacific War he offered his
services gratuitously, and was appointed physician of
the frigate Independencia, being, according to the
record, the last man to leave her decks when she was
destroyed at the battle of Punta Gruesa.
Upon his return to Lima after this disaster,
Dr. Basadre gave his services during the Callao bom
bardment. Later, he took charge of a ward at the
Hospital of San Bartolome, where he had the good
fortune to attend Dr. Cavero, President of the
Peruvian Cabinet, who was wounded at the battle of
Miraflores. Dr. Basadre not only saved his com
patriot's life, but, in spite of contrary professional
opinions at the time, he refused to amputate the left
arm which was injured, and of which Dr. Cavero has
found excellent use to this day.
Upon the Chilian occupation, Dr. Basadre resigned

30 PERU OF THE TWENTIETH CENTURY
from the hospital, refusing to work under the orders of
the enemy's surgeons. Dr. Basadre is a prominent
member of various commercial organizations, and also
the Government representative on the directorate of
the National Steamship Company. He is extremely
active in the Pro-Marine Association and in other
patriotic movements.
An ex-Minister of Justice, Culture, and Education
is Dr. Antonio Flores, whose late administration of
this Department of Government was attended with
the happiest results. At no time in the history of
the country has education been at a more advanced
stage than at present, and, as will be seen in Chap
ter VIIL, which is devoted to the consideration of
this section of the Government's work, the progress
effected is in every way gratifying and encouraging.
Dr. Antonio Flores is himself a man of considerable
attainments and of great culture, in every way quali
fied to control a branch which, to use the words of
Horace Mann, in his famous " Lectures upon Educa
tion," alone can " conduct us to that enjoyment
which is at once best in quality and infinite in
quantity." General Jose" R. Pizarro, who bears a name famous
in Spanish military history, was until recently Minister
of War and Marine. He is a soldier of brilliant
record, and possessing a thorough knowledge of mili
tary and naval matters, acquired both at home and
abroad. Both branches of the national defence have
of late years received careful and systematic atten
tion at the hands of the Government, and this fact
is freely explained in Chapter IV., which is devoted
to the description of the Army and Navy of the
Republic of Peru as they are found to-day. General
Jose R. Pizarro effected much to consolidate the good
work introduced by his predecessors in office. He was

THE PRESENT AND LATE MINISTRY 31
a strict, but a kindly, disciplinarian, and he was as
much esteemed by the rank and file as he was liked
by his officers and appreciated by the Executive.
Senor Don Enrique Oyanguren, ex - Minister of
Finance and Commerce in the late Cabinet, brought to
this high and important post a wide experience in affairs
of State and commerce generally. His career may
be said to have commenced in 1883 as amanuensis
in the Department of Justice, where he successively
filled various positions, eventually becoming Director-
General. While thus engaged, he had occasion to act
in connection with many important cases. This Depart
ment, which has under its charge all public instruc
tion, is distinguished by the ability of its several officers,
and Senor Oyanguren served as Visitor-General in this
branch, and prepared the first statistical treatise on
education in Peru. In 1895, after declining the
appointment of Consul at Panama, he was made
Consul-General at Valparaiso, where he remained
until 1901. In that year he was entrusted with more
than one important and delicate commission in con
nection with the provinces of Tacna and Arica, and in
relation to the military service of Peruvians resident in
Tarapaca, in carrying out which he achieved signal
success. Resuming his consular office in Chile, he remained
in Valparaiso until 1908, being then named Charge
d' Affaires at Santiago. In 1909 he was appointed
Minister Plenipotentiary of Peru in Ecuador, a post
which he judged it prudent to decline, in view of the
attitude which he had been compelled to adopt as
Charge d' Affaires, and particularly his formal protest
to Senor Agustin Edwards, then Minister of Foreign
affairs, and now the Chilian Minister at the Court of
St. James's, against the attempt to " Chilenize " the
Peruvian Provinces of Tacna and Arica, and in con-

32 PERU OF THE TWENTIETH CENTURY
sideration of the open incitement of Ecuador by Chile in
the attempt to make trouble for Peru.
Returning to Peru after renouncing the Ecuadorian
Mission, Seiior Oyanguren became Superintendent of
Customs, where he has had the opportunity of display
ing the business ability which had been acquired during
his diplomatic training. In many positions of trust
which he has held under and in the Government,
Seiior Oyanguren has been most diligent to the
interests of Peru, and has proved himself a man of
great discretion and a generally competent judge.
That highly important Department known among
the Latin- American Governments as " Fomento " —
Promotion, as we should call it in our inadequate
and inexpressive language — has, besides a Minister, a
permanent Director. A distinguished occupant of
this post is Dr. Edmundo N. de Habich, a young
but very brilliant man, now in his thirtieth year.
Dr. Habich, who was born at Lima in 1882, was
educated at the University of San Marcos, the oldest
educational establishment in America, and he took
practically every learned degree which could be held,
until in 1903 he entered upon his subsequently dis
tinguished diplomatic career. Like several other
Government officials, he selected the legal profession,
and soon, after qualifying, he was appointed Secretary
to the Minister of Fomento, and the same year to
the Superior Board of Health. In 1903 he was the
chief organizer of the Section of Agriculture and
Immigration, the year following becoming a member
of, and Secretary to, the Commission of Weights and
Measures, and subsequently special commissioner of
the Department in lea, Huancayo, Jauja, and Cerro
de Pasco. In 1907 he was promoted to be Director
of Fomento ad interim, being confirmed subsequently
in the post. His services here have been recognized

DR. C. LARRABURE Y CORREA 33
as extremely valuable, and undoubtedly they are both
very arduous and responsible. As time goes on they
will, no doubt, become increasingly so ; but Dr.
Habich has already evinced so much capability, and
has demonstrated so conclusively his fitness for the
position which he holds, that there can be no question
of his being enabled to grapple with and to satisfy
the demands which will be made upon him.
The appointment of Dr. Carlos Larrabure y Correa
to the position of Chief of the Information Bureau in
Paris, established early this year (1911), has proved
a happy selection. Dr. Larrabure y Correa had been
the Acting Minister of Promotion (" Fomento ") at
Lima for some time, during the absence abroad of
Dr. Matto, and he is himself a man of wealth and
excellent family. He was born in 1876, and at an
early age went to Spain, where his father, who is at
the present time First Vice-President of the Republic
of Peru, was diplomatic representative. Dr. Larrabure
studied at the College of Guadaloupe, and later entered
the University of Lima, taking the courses of Adminis
tration, Political Science, and Jurisprudence, and gradu
ating in 1899, and in Political Science in 1900. He
first entered the Government service in 1901 as
Secretary of the Ministry of Fomento, serving until
1903. Afterwards he became Chief of the Boundary
Limits Section of the Ministry of Foreign Affairs, and
Director of the Ministerio of Fomento, which had been
founded by his father. Dr. Larrabure is Professor of
Political Economy in the National School of Agricul
ture, and he is the author of a great number of
valuable publications — notably a work, in eighteen
volumes, upon the "Department of Loreto." He is
also a member of the Lima Geographical Society, of
the Lima Athenaeum, of the Historical Institute of
Peru, and the Washington Geographical Society. 3

34 PERU OF THE TWENTIETH CENTURY
The Republic of Peru is represented in Great
Britain by a Minister (who is resident in Paris), two
Secretaries, an Attache^ a Charge d' Affaires and Consul-
General, a Consul at Liverpool, and one each appointed
to Southampton and Glasgow.
Don Carlos y Candamo, the Minister, who is a
member of the family of a former President of Peru,
is but rarely seen in England, but he is a well-
known and eminently popular resident of the gay
city. The resident representative of the Republic in
London is Seiior Don Eduardo Lembcke, Charge
d'Affaires and Consul-General. The Legation is at
104, Victoria Street, S.W. Seiior Don Lembcke is
a highly cultured and accomplished man, well versed
in diplomatic matters, and both speaking and writing
English with great fluency and accuracy. Senor
Lembcke creates an immediately favourable and
sympathetic impression with all who have business
with the Legation, and his ability in dealing with the
complicated questions which not infrequently arise,
show him to be a thorough man of the world.
The Secretaries are Senor Don R. E. Lembcke and
Senor Don E. Leguia, the latter a younger brother of
the President of the Republic, and both being young
men of great charm of manner and distinction.
Seiior Don Bernardino Codesido is the Consul at
Liverpool, Seflor Carlos G. Estenos at Southampton,
and Senor Don M. D. Derteano at Glasgow.
The Legation and the Consular offices are usually
kept well informed in regard to commercial matters,
and since the establishment of the new Government
Information Bureau in Paris (to organize which the
ex-Minister of Fomento, Senior Don Julio Enrique Ego-
Aguirre, stayed for some months in France), it is
possible to obtain comparatively recent statistics and

ii/jjk

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FOREIGN DIPLOMATS 35
reports concerning the industrial and commercial pro
gress of the country. This new office will be of great
benefit to foreign traders in Europe generally, and it
is to be hoped that, later on, the Government of the
Republic may be induced to open a branch in London
or Liverpool, or even in both cities, the commercial
relations between the two countries thoroughly
warranting such an enterprise. (See Appendix.)
The United States Minister Plenipotentiary to Peru
is Mr. Henry Clay Howard, Envoy Extraordinary.
He succeeded Mr. Leslie Combs on April 24, 1911,
and is occupying the same building as the Legation —
Quinta Heeren. American interests are rapidly
augmenting in this Republic, and they will reach
considerable importance so soon as the Panama Canal
opens in January, 1915.
The British Minister is Mr. Charles Louis des Graz,
the Legation being at Paseo Col6n, No. 346. He is
about fifty-two years of age, having been born in
March, 1860. Educated at Harrow, he took his B.A.
at Trinity College, Cambridge. In 1884 he was
nominated Attache, and the same year he passed a
competitive examination, when he was sent to Con
stantinople. Mr. des Graz has served at Athens, the
Hague, St. Petersburg, Teheran, Rome, Cettinje,
Bolivia, Ecuador, and finally Peru. He speaks
Russian, Persian, Turkish, and Spanish quite fluently,
and he is one of the most amiable and popular
diplomats who have come to Lima — a great improve
ment, indeed, upon his predecessor, who displayed an
astounding propensity for rubbing people, and especially
officials, the wrong way.
On the whole, the British Government has sent
thoroughly representative men to Peru, the following
having been Ministers since 1850 : In 1852 Sir
Edward Harris, who, like his successor, was, until

36 PERU OF THE TWENTIETH CENTURY
1906, also Consul-General ; in 1853 Mr. S. H. Sullivan,
who was assassinated in August, 1857; in 1857 Hon.
William G. S. Jerningham, and who served until 1872 ;
in 1874 Sir C. E. Mansfield ; in 1894 Captain H. M.
Jones, V.C. ; in 1898 Mr. William N. Beauclerk, who
served until March, 1908, when he died at his post.
He was raised from Minister Resident and Consul-
General to Envoy Extraordinary and Minister Pleni
potentiary, the post of Consul-General being made a
separate appointment.
Both the British and the United States are ex
ceptionally well represented in the Consular Service, a
fact well worth recording, in view of the generally
unsatisfactory nature of our consular representatives
throughout Latin-America, a matter which has at
tracted very serious attention, and upon which I have
commented at length during the past twenty years
and more.
Mr. Lucien Joseph Jerome, F.R.G.S., is the British
Consul-General at Lima, and has had a distin
guished and useful career. Born in March, 1870, he
was at first employed in the Consulate at Nice, which
position he occupied from 1890 to 1897. He was then
placed in charge of the Vice-Consulate at Monaco, where
he remained but three months (July to October, 1897),
when he was removed to a similar position at Havana,
Cuba. He served as Acting Consul-General there from
July 6, 1898, to March 27, 1899, and during the
troublous times between the United States and Spain
Mr. Jerome was placed in charge of American interests
in Cuba, and continued to represent these during the
whole term of the American-Spanish War. So ad
mirably did he perform his duties, that he was sub
sequently made the recipient of the warm official
thanks — conveyed in the form of an extremely graceful
letter — from the United States Government. Mr.

CONSULS 37
Jerome left an altogether excellent impression among
the large American population at Havana.
Promoted to be British Consul for the United States
of Mexico (the States of Vera Cruz, Yucatan, Cam-
peche, and Tabasco excepted), Mr. Jerome left to reside
in Mexico City in February, 1899. He was also
Acting Consul-General of Port-au-Prince (Haiti) from
August, 1905, to January, 1906. A new Commission
was issued to Mr. Jerome as Consul for the United
States of Mexico in January, 1906. The following
year, however (1907), he was promoted to be Consul-
General for Great Britain in Peru, and he was put
in charge of the Legation at Lima from March to
November, 1908.
Those manufacturers and traders who would seek
inspiration from our Consular trade reports must
sometimes ask themselves why so much divergence
of plain and easily ascertainable facts should occur
in these usually meagre and frequently misleading
pamphlets. In connection with Peru, for instance, we
see the British Consul at Lima, in 1905, sending home
a piece of information which is flatly contradicted by
his successor in 1907. The extracts read as follows :

Consular Report by Mr. St.
John, No. 3,635, for the
Year 1905.
"There may be sooner or
later an opening for iron bun
galows and other buildings of
various descriptions. . . .
"Building in the chief
coast towns is expensive. . . ."
When these critics of foreign trade do by chance
agree, it may be assumed that their " unanimity is
wonderful." Mr. William Henry Robertson, the United States

Consular Report op Mr. L. J.
Jerome, No. 4,074, for the
Year 1907.
"The demand for bunga
lows does not exist. . . .
" Certainly nowhere are
houses constructed of cheaper
material. . . ."

38 PERU OF THE TWENTIETH CENTURY
Consul-General at Callao, is a son of a former Con
federate General, and was educated in his native
State of Virginia and in Charleston, South Carolina.
He entered the Consular Service when quite a young
man, his first foreign post being Hamburg, Germany.
After four and a half years there he was superseded
upon a change of political parties in the United
States, and it was not until 1900 that he found
another post. Meanwhile, he had travelled about
Europe and South America, and as a reward pre
sumably for his services, he was appointed by the
Republican President McKinley to a Canadian Con
sulate. Rather a "rolling stone," however, Mr.
Robertson again left the Service to embark upon a
commercial career in New York. Tiring of this, he
entered upon an examination under the regime of
Mr. Roosevelt, and finding encouragement as soon as
the Consular service was put upon a permanent basis,
he was appointed to Gothenburg, Sweden, where he
remained for one year. He was then promoted to
Tangier, in Morocco, continuing there until transferred
to Callao, Peru.
The United States Government consider that Peru
is well worth looking after from a trading point of
view. Both in New York and in the principal ports
of the Republic an exceptionally competent staff, con
sisting of a Consul and a Vice-Consul, have been em
ployed upon the business.
The Peruvian Consul-General at New York is Seiior
Don Eduardo Higginson, who was born at Callao,
in March, 1862, and educated at the University at
Lima. Although possessing an Anglican name, he
is a true Peruvian, and served in the war between
Chile and Peru from 1879 to 1881, attaining the
rank of Lieutenant in the National Guard. Seiior
Higginson is not unknown in England, having been

UNITED STATES CONSULAR SERVICE 39
Consul-General, Chancellor, Vice-Consul, and sub
sequently Consul, at London, Liverpool, and South
ampton. When here, he was very successful in
creating interest in, arid sympathy towards, Peru,
having contributed many striking articles relative
to that country. As an instance of Seiior Higginson's
enterprise, it is worthy of mention that he sent out to
Peru a collection of no fewer than 20,000 different
commercial catalogues, in order to stimulate trade with
Europe, as well as publishing, at his own expense,
and distributing some ten years ago, about 40,000
copies of a large coloured map of Peru, bearing on
the reverse complete information of a practical
character in English, German, Dutch, and Swedish.
The Peruvian Consular Offices in New York are in
Broad Exchange Buildings, 25, Broad Street.
The United States Government has so completely
awakened to the importance of its Consular Service
that it now despatches its representatives upon their
official way with the same amount of ceremonial
attention that it bestows upon some of its fully-
accredited Ministers. Thus, when Mr. Charles C.
Eberhardt, one of five Consuls-at-Large of the United
States of America, visited Peru in the month of
October, 1910, he was brought to Callao in a U.S.
cruiser, the Yorhtown, and his arrival was greeted
with a salute of ten guns. This almost regal recog
nition of a consular appointment compares strangely
with the furtive and secret manner in which some
British Consuls sneak into their posts, such, for
instance, as the arrival at Antofagasta, Chile, of
Mr. Godfrey Hewett, the British Consul, who came
from Pernambuco, and was allowed to land without
one single Englishman or Englishwoman out of the
entire considerable British Colony going down to
meet him.

CHAPTER IV
Government — Departments — Provinces — Districts — Executive power —
Population — Judicial administration — Jurisdiction of Courts — Con
gress — Ministers' portfolios — Local government — Departmental
Boards — Navy — Strength in 1911 — Army — Strength in 1911— French
Military Mission — Armaments — Peruvian soldiers — Full fighting
strength.
The Republic of Peru is divided politically into
twenty-two different Divisions, known as " Depart
ments," each of which has its own local government
and its separate capital. They are differentiated
between by the appellations of " Department " and
"Littoral Province," and these are subdivided into 101
minor provinces, which, yet again, are split up into
districts. The Departments are under the control of
Prefects, who receive their instructions from, and
are subservient to, the Secretary of the Interior ;
the Provinces are controlled by Sub -Prefects and
the Districts by Governors.
The following are the Departments :
Amazonas, Ancachs, Apurimac, Arequipa, Ayacucho,
Cajamarca, Cuzco, Callao, Huancavelica, Huanuco,
lea, Junin, Lambayeque, La Libertad, Lima, Loreto,
Moquegua, San Martin, Piura, Tacna, Puno, and
Tumbes. Of these the two Littoral Provinces are Moquegua
and Tumbes.
For purposes of readier reference, I give, opposite
the names of the different capitals, the smaller
provinces, and the districts, as well as the superficial
4Q

Name of Depart
ment.

AmazonasAncachsApurimacArequipa AyacuchoCajamarcaCuzco ...

Callao ...
Huancavelica Huanucolea
Junln . . .
LambayequeLibertadLima . . .
Loreto ...
San Martin
MoqueguaPiura . . .
Puno . . .
Tacna . . .
Tumbes

Name of Capital.

Chachapoyas Huaraz . . .
AbancayArequipa
Ayacucho Cajamarca
Cuzco . . .

Callao ...
HuancavelicaHuanuco leaCerro de Pasco
ChiclayoTrujillo Lima . . .
Iquitos . . .
MoyobambaMoqueguaPiura . . .
Puno ...
Locumba
Tumbes Total

No. of
Provinces.

57 6
7
12

101

No. of
Districts.

40
7631 77516362

1
27221541
20 50
59 1815 8
2578 18 1
798

Superficial Area.

36,122 42,908
21,209 56,85747,11132,482
404,845

37
23,967 36,331
22,586 60,484 11,95226,441
34,482
617,677 79,625
14,375 38,458
106,731 32,618 5,130
1,752,422

Population.

53,000
317,050133,000171,750
226,850 333,310
328,980

33,879
167,840108,980 68,220
305,700 93,070
188,200250,000 120,000 33,000
31,920
154,080403,000 38,000 8,000

3,547,829

Names of Principal Provinces.

Bongora, Luya.
Bolognesi, Cajatambo, Huailas, Huari, Pallasca, Pomabamba,
Santa, and Jungay.
Abancay, Aimaraes, Andahuailas, Antabamba, and Cota-
bambas.
Cailloma, Camana, Castilla, Coudesuyos, Islay, and Uni6n.
Cangallo, Huamanga, Huanta, La Mar, Lucanas, Parina-
eoehas.
Cajabamba, Cajamarca, Celendin, Contumaza, Chota, Hual-
gayoc, Jaen.
Acomayo, Anta, Calca, Canas, Canchis, Convenci&n, Cuzco,
Chumbvilcas, Paruro, Paucartambo, Quispicanchis, Uru
bamba.
Callao. Angaraes, Castrovirreina, Huancavelica, Tayacaja.
Dos de Mayo, Huamalies, Huanuco.
Chincba, lea, Pisco.
Huancayo, Jauja, Pasco, Tarma.
Chiclayo, Lambayeque.
Huamachuco, Otuzco, Pacasmayo, Pataz, Santiago de Chuco,
Trujillo.
Canta, Canete, Chancay, Huarochiri, Lima, Yauyos.
Alto Amazonas, Bajo Amazonas, Ucayali.
Huallaga, Moyobamba, San Martin.
Moquegua. Ayabaca, Huancabamba, Paita, Piura.
Azangaro, Ayaviri, Carabaya, Chucuito, Huancan^, Lampa,
Puno, Sandia.
Arica, Tacna, Tarata.
Tumbes.

42 PERU OF THE TWENTIETH CENTURY
area in kilometres, with the estimated population. In
regard to these, however, it is necessary to add that
no census has been taken in Peru since 1904, statistics
being furnished by the Lima Geographical Society,
and not being official. For all practical purposes, the
total population of the Republic may to-day be taken
at 4,600,000 — a figure which I believe to be below,
rather than above, the mark, especially if the Japanese
and Chinese immigrants are taken into considera
tion. In 1896 (ten years after the last census had been
taken) the Lima Geographical Society estimated the
total population of the Republic at 4,609,999, although
the previous census had placed it at only 2,657,853.
Of these inhabitants, it has been estimated that
57 per cent, are aborigines, 23 per cent, of mixed
blood — white and Indian or negro and Indian — the
remaining 20 per cent, being descendants of the
Spaniards, some 6,000 or 7,000 Europeans, 15,000
Chinese, and 900 Japanese. The Chinese are gradu
ally dying out, the immigration being now entirely
forbidden by the law of May 14, 1909. (See Appendix.)
Up till now no really precise account has been kept
of the movement of population, but with the increased
attention which is being devoted to such matters
by the officials in Government employment, reliable
statistics and accurate reports may be obtainable
hereafter. The administration of the law in Peru is in the
hands of a Supreme Court, which sits in Lima, and
nine Superior Courts, which have jurisdiction within
certain prescribed limits. For more facile reference,
I give the names of the various cities where these
Courts have their headquarters as well as of the
places within their particular jurisdictions :

COURTS AND JUSTICE

43

Name of Place where the
Court sits.
Huaraz Arequipa . . .

Ayacucho ...

CajamarcaCuzco La Libertad
Lima

Piura Puno

Jurisdiction.
The whole of the Department of Ancachs.
The Department of that name, the Littoral
Province of Moquegua, and the Provinces
of Tacna and Tarata.
The Department of that name, that of Huan
cavelica, the Province of Andahuailas in
the Department of Apurimac.
The Department of that name, and the
Departments of Amazonas and Loreto.
The Department of that name and the
Department of Apurimac except the Prov
ince of Andahuailas.
The Department of that name and the
Department of Lambayeque.
The Department of that name, the Depart
ments of lea and Junin, the constitutional
Province of Callao, and the Department
of Huanuco.
In the Department of that name solely.
In the Department of that name solely.

Up till the war with Chile a Court sat at Tacna, but
since then it has been suspended, all judicial matters
being transferred for decision to the Court sitting at
Arequipa. The Provinces, with but few exceptions,
have minor courts, where Judges of the First Instance
sit, as well as Justices of the Peace.
In civil cases which relate to sums of money not
exceeding 160 sols (£16) in value, and in minor
criminal cases, the Judges of the Primary Court have
jurisdiction. The Supreme Court is a court of appeal
also, and revises the decisions of the courts below, the
decisions in this case being final. It also hears claims
against the Government, and its deliberations and
judgments are conducted with much decorum, and are
usually sound in law. The legal rights of foreigners
are strictly conserved. According to the 132nd
Article of the Constitution, " The law of the land
protects equally all persons, and the civil rights of
individuals are granted, irrespective of station or
nationality." (See Appendix.)
The Government of the Republic is democratic and
representative, and is carried on under the Con-

44 PERU OF THE TWENTIETH CENTURY
stitution of 1860, which is the last of eight different
Constitutions which have from time to time been
promulgated. The Legislative, the Executive, and the
Judicial are the three main branches into which the
Administration is divided, and all three are carried on
independently of one another. Neither hereditary
nor prescriptive rights are recognized. Congress
alone is privileged to impose taxes, while all public
servants, even those occupying the highest offices
under the Government, are amenable to the Courts.
The Constitution grants freedom of the press,
immunity from arrest except upon direct order of
a Judge, the inviolability of all private correspondence,
the freedom of trade and industry, the sanctity of the
home, the right of assembly, and the privilege of
petition. The Executive consists of a President, who is elected
for a period of four years by the general vote of the
nation ; two Vice-Presidents and six Secretaries of
State, or Ministers, each having charge of the fol
lowing portfolios : Home Department, State Depart
ment, Department of War and Marine, Depart
ment of Finance and Commerce, Department of
Justice, Department of Public Works, and Fomento
(Promotion). This last office is one which is found in all the
Latin- American States, and its equivalent is difficult
to define, because it really does not exist in any other
countries. Its object is to " promote " enterprise and
to encourage undertakings likely to be of some
advantage to the nation ; and the Government usually
construe the definition very liberally, extending a
helping hand to, and supporting financially, many
schemes — as often as not the ventures of foreigners —
which may attract their approval and merit their
assistance.

CONGRESS 45
The Legislative Power consists of two Houses,
known as Congress — the Senate and Deputies. The
Senate are composed of representatives who are elected
by the Departments, each returning from one to four
members, in proportion to the number of Provinces of
which it consists. The Deputies are composed of
representatives sent up from each of the Provinces,
or for each 15,000 to 30,000 inhabitants. Both
Houses are elected for a period of six years. The
members must, however, be Peruvian-born, and, in
order to be eligible, must be over twenty-five years
of age. Senators must have attained thirty-five
years. The local Government of the Republic is par
ticularly well distributed, being in the hands of
Municipal and Departmental Boards. The Municipal
Boards consist of members elected by popular vote,
and are known as Provincial Councils and District
Councils. The first-named serve the Provinces, and
the second the Districts. With the exception of
educational matters and control of the police, these
Councils have a very free hand, and, as a general rule,
they carry out their functions both intelligently and
honestly. All such offices are filled without remunera
tion, while the revenues are derived partly from
municipal-owned property or enterprises, but prin
cipally from local taxes, known as arbitrios. To
impose these, however, the sanction of the Executive
Government is necessary. The Provincial Councils
act as a kind of healthy check upon the proceedings
of the District Councils, and possess the right of
revising their decisions. And they very often do so.
Finally, there are the Departmental Boards, whose
duties consist in attending to public works, the
erection of bridges, the construction and maintenance
of public roads, assisting at the conduct of education,

46 PERU OF THE TWENTIETH CENTURY
and distributing charities. They can also revise and
overrule the acts of the Provincial Councils.
During the disastrous Pacific War of 1879 to 1884,
when peace with Chile was proclaimed, and which has
since been kept, although sometimes with difficulty,
the Peruvian Navy was completely destroyed. With
the gradual revival of financial prosperity, the
Government of the country has devoted its attention
and as much of its revenues as could be safely spared,
to a reconstruction of this maritime defence, and year
by year sees introduced an addition here and a perfec
tion there. The Navy proper is composed of three
twin-cruisers, which bear the names of some of the
many heroes of the unfortunate war referred to,
such as Alndrante Grau, Coronel Bolognesi, etc., and
three transports, etc., the whole number of vessels
amounting to about fourteen. At the end of the
current year (1911) the Republic will have five
auxiliaries to her naval power in the event of war,
as the vessels of the Peruvian Steamship Co., all of
the type of the Ucayali, are now being subsidized as
auxiliary cruisers by the Peruvian Government.
In regard to equipment, the Peruvian Navy is now
being gradually and effectively provided with all the
latest scientific inventions of value. For instance, a
complete wireless telegraphy outfit, devised and per
fected by Seiior Don Guillermo Wiese, of Callao, has
been installed on the cruiser Lima. The vessel is thus
enabled to communicate with others carrying wireless
installations within a 100 -mile radius. Professionals
are on the alert as to the outcome of Seiior Wiese's
invention, which, according to those who have seen it
in operation, is perfect and reliable in every way.
The Government's decision to equip the Lima with
his system should in a great measure serve as an
encouragement to the inventor, Seiior Wiese, who has

Government Cruiser "Almirante Grau,'

THE PERUVIAN NAVY IN 1911.
Name.
Class.
>3^
.Is
Q
CD
i-5
.4 o>
M
+3
a
1 2 S
£ o p<
a •
Where Built.
a-d £ 3
Armour.
Almirante Grau
Cruiser
Steel
tons
3,200
mm. Ill
mm.
12-18
mm.
7-29
2 screws
14,000
Barrow-in- Furness
1906
knts. 24
2 of 152 mm.
8 machine guns.
Coronel Bolog-
nesi
Cruiser
Steel
3,200
111
12-18
7-29
2 screws
14,000
Barrow-in- Furness
1906
24
2 of 152 mm.
8 machine guns.
Lima ...
Cruiser
Iron
1,790
77-70
10-30
5-70
2 screws
2,000
Kiel,
Germany
1880
14
4 of 10 mm.
2 machine guns.
Constitution . . .
Transport
Steel
1,693
100-42
12-19
8-23
1 screw
1,868
Newcastle- on-Tyne
1886
10
2 of 152 mm.
2 machine guns.
Iquitos
Transport
Steel
2,083
105-0
12-75
7-72
1 screw
2,100
Whiteinch, Glasgow
1894
11
4 of 47 mm.
2 machine guns.
Chalaco
Transport
Wood
239
42-60
9-60
3-90
1 screw
200
San Fran
cisco, U.S.A.
1884
8
2 of 87 mm.
nlv last, n 911 1
the Fren
ch armou
red cruisei
Dupuv
ie D6m
i was being
thorough!
y overhauled and repairec
1 with
a view to being
*¦
sold to the Peruvian Government. It is a fine vessel, and will form a notable addition to the Peruvian Navy.
48 PERU OF THE TWENTIETH CENTURY
spent several years in studying and perfecting it-.
During the visit of the United States battleship fleet
in 1909, the inventor, with the incomplete elements
of which he then disposed, established a wireless
station, and successfully communicated with several of
the vessels.
Historians have declared that had the ancient
Peruvians been a more warlike race the Spaniards
would probably never have become so completely their
conquerors. Certain it is that the Incas established
so complete a peace throughout the land, and, by a
marvellous system of true socialistic government,
supplied the people with all their material wants,
that they lost the art of war, and this benevolent
despotism unmanned them.
That their descendents of to-day, however, have
regained whatever fighting propensity they may have
lost is proved by the heroism displayed by the Peruvians
during the last war with Chile, as well as during the
many previous struggles with Spain and among them
selves. In all probability the Peruvian soldier of to
day is the toughest, as he is unquestionably the most
amenable and malleable fighting, material in the New
World. In the year 1 8 9 6 the whole of the Peruvian Army und er-
went complete reorganization, the Government having,
under the newly-elected President Nicolas de Pierola,
enjoyed the services of a number of distinguished French
officers, known as the French Military Mission, to
carry out the reforms. This Mission consists of: The
Lieutenant-Colonel, who is the Head of the Mission ;
2 Cavalry Captains ; 2 Infantry Captains ; 2 Artillery
Captains ; 1 Engineer Corps Captain ; 1 Veterinary ;
1 Farrier ; 2 Gymnastic Instructors. The Head of the
Mission ranks in Peru as a Brigadier- General, the
Captains ranking as Lieutenant-Colonels and the

ARMY

49

Lieutenants as Majors, as does also the Veterinary.
No special rank is awarded to the Gymnastic In
structors. Every deference is paid to the Head of the Mission,
his advice being solicited— and, what is more, prac
tically always followed — in matters connected with
instruction and the organization of the Army. He
is subject, however, to the orders of the War De
partment. One of the Captains is in charge of
the Military High School, while another acts in a
capacity at the Military Academy at Chorillos ; the
similar other officers act as Inspectors of Musketry.
The officers wear French uniform, with the insignia
corresponding with their rank in the Peruvian
Army. According to the Army List of 1905, the Peruvian
Army consisted of the following

Generals on the Active List . . .
Brevet Colonels
Brevet Lieutenant-Colonels ...
Brevet Majors
Brevet Lieutenants ...
Full Colonels
Lieutenant-Colonels ...
MajorsCaptains
Lieutenants... Sub-Lieutenants and Ensigns ...

7
991120 7
3694
129211
235 142

The rank and file are composed of the following :
Artillery. — One regiment of mounted artillery, with
three groups of three batteries, and 500 men with a
detachment of a further 28 men at Loreto.
Infantry. — Seven battalions, each consisting of four
companies ; a section of the line is for staff service, and
a detachment of 30 men in the mountain section of
Cuzco. Auxiliary Corps. — General Army Commissariat,
Ordnance Store, Military Health Department,
Supreme Military and Naval Council

50 PERU OF THE TWENTIETH CENTURY
Armaments. — The infantry are armed with Mauser
rifles of 78 mm. calibre ; the cavalry and the mountain
artillery with the carbine of the same model; the
artillery with field batteries of the latest type of
Schneider- Canet make.
The new military law of December 27, 1896, seems
to have been a very drastic and complete ordinance,
entirely remodelling the rules of serving and also the
length of service. Up to that time there had been
no conscription in Peru, the fighting force of the
country being formed by recruiting almost entirely
from among the aborigines. The officers were obtained
by drawing from among the students of the old
Military Academy.
To-day, the standing army is formed of both
volunteers and conscripts. These latter are recruited
from each Department impartially, all boys of nineteen
years being eligible. They serve four years in the
artillery and cavalry, and three years in the infantry.
Evasion of immediate military service can be arranged
by payment of 500 sols (£50), by securing immunity
from drawing lots ; the successful evader then passes to
what is known as the supernumerary list. To escape
immunity entirely is impossible. By a payment to
Government of 1,000 sols (£100), the young men who
would rather not join the regular army are placed in
the first reserve, the supernumeraries forming thus a
tangible and useful dernier ressort in the event of a
long and exhausting war.
The first reserve consists of ex-soldiers, up to thirty
years of age, and married men and the students from
the Universities or Technical Schools between nineteen
and thirty years of age. The second reserve is formed
of men between thirty and thirty-five years of age.
In conjunction, these two reserves are Departmentalized,
in each political division there being a battalion of

ARMY 51
sappers consisting of 448 men; in eleven of them,
cavalry squadrons of 169 men ; while Lima musters a
corps of each arm, the artillery being a mounted
section consisting of 650 men.
The National Guard is composed of men from thirty-
five to fifty years of age. In the event of casualties
occurring in the regular and permanent army, replace
ments are drawn firstly from the volunteers, secondly
from reserves, and thirdly from the conscripts.
Although Peru has a population of over 4,000,000,
every year provides 40,000 youths — or 10 per cent, of
the population — of nineteen years of age and upwards.
All these are subject to draw lots, but only about
1,500 or 1,600 are actually drawn.
Peru is divided into four military districts, which
are subdivided again into eleven conscription areas,
comprising the twenty-two political Departments. The
capitals or headquarters of these districts are :
Northern, Piura ; Central, Lima ; Southern, Arequipa ;
Eastern, Iquitos.
The General Staff was further reorganized in 1904,
and is now placed upon the same footing with, and
analogous to, the staffs of all European Armies. The
Head, who is the Chief of the French Military-
Mission, has under him a Commander and an As
sistant Commander, whose commands are subdivided
as follows : Organization and Instruction ; Tactical
and Statistical Studies ; Technical Studies ; Topo
graphical and Geographical Studies.
To all who have seen the Peruvian soldier on the
march and in the field of manoeuvres, it must be
apparent that the instruction carried out by the
French Military Mission, under Colonel Clement and
other distinguished French officers, had been of the
utmost value to the country. Just as the naval
instructors from England transformed the navy of

52 PERU OF THE TWENTIETH CENTURY
Chile into an admirably efficient arm, so has the
thorough training undertaken by the French officers
raised Peru to the position of one of the most
powerful fighting forces in South America. The
average peon does not, at first, afford the idea of
becoming a very promising addition to an organized
army. But in actual experience he makes an excellent
piece of fighting material. He is absolutely faithful to
his officers ; he is docile, amenable, contented with
little — and sometimes with nothing — to eat ; he is
accustomed to sleeping anywhere and anyhow ; he
can climb up mountains like a cat and slide down
precipices like a deer ; he does not know what phy
sical fatigue means ; in the bivouac, on the march, or
in battle, he is always the same — perfectly serious,
wholly unemotional, and he fights like a man who
knows neither fear of death nor any scruple in dealing
it. Bravery and endurance are so common among the
Peruvians that they would not understand any praise
for possessing these virtues, nor could they compre
hend any lack of them among the men of other
nationalities. The first President of Peru who attempted to re
organize the Army and Navy was neither a military
nor a naval man, but, on the contrary, a stern opponent
of military dominance in the government of the
country. Senor Manuel Pardo, who became Con
stitutional President in 1872, established as a pre
liminary step the schools for Corporals and Sergeants,
as well as that for Midshipmen of the Navy ; the
School of Science and Art; the School of Engineers ;
the Faculty of Administrative and Political Economy,
and he reformed the Military and Naval Academies.
Unfortunately, from the very beginning of his
regime, Pardo was confronted by the lack of money
and the practical bankruptcy of the country (see

ARMY 53
Chapter VI.). President Nicolas de Pierola added
some artillery barracks in 1897. The total mobiliza
tion force of the Army is certainly nothing less than
24,000 men, quite apart from either the reserves or
the territorials.
The President (Don Augusto B. Leguia), in his
speech to Congress delivered at Lima on July 29,
1911, concluded as follows :
" I intend to continue acquiring war material.
Peru's policy will always be peaceful. Peru will
offend none, but will not permit anyone to offend
her with impunity. I feel sure that my policy will
dissipate all clouds on the horizon. I hope a year
hence to transfer the presidency under conditions
of peace and order which will prove that Peru has
advanced to full Republican stability."

CHAPTER V
Government (continued) — Sanitary organization — Medical Board of
Health — Marine Sanitary Service — Lima Board — Isolation at ports
— Telephones — Telegraphs — Improvements effected — Wireless station
— Postal services — Increase in mail-matter — Peruvian and British
methods contrasted — The carriage of newspapers and other publica
tions — Aviation encouragement.
With commendable good sense, the Government of
the Republic — no doubt inspired and encouraged by
the excellent results which had attended the sanitary
purification of the once pestilential Panama — have
devoted much time and more money to introducing a
very comprehensive and complete sanitary organiza
tion throughout the country, and especially in the
Capital. The Republic, as a whole, is free from many
of the terrible tropical diseases which are prevalent
in these latitudes. Yellow fever, sleeping sickness,
and leprosy are almost unknown, and in any case
they have seldom attained any great headway among
the people. Other diseases are, perhaps, no worse
in their frequency nor more disastrous in their con
sequences than those in any European country.
In 1903, signs of bubonic plague were observed, and
this was the first time that any appearance of the
much-dreaded disease had occurred. Immediately it
was detected a sanitary service was organized, and
a Board of Public Health was instituted. The most
competent and experienced among medical and scien
tific men were invited to join it, and did so. The
disease was attacked promptly and scientifically, with
54

Lima : School of Medicine.

:

:->v

ML

n

Lima : The Government Health Institute.

SANITARY SERVICE 55
the result that not only was it prevented from
spreading, but was soon completely banished. It
has not since recurred, except in one or two isolated
imported cases.
Although far from attaining that completeness of
efficiency which will, no doubt, be achieved in course
of time, the Medical Board of Health has proceeded
far ; and, in addition, there has been formed a Superior
Council of Hygiene, composed of several celebrated
men of science, and notable members of the Faculty of
Medicine and the National Academy.
Then there is the Marine Sanitary Service, which is
divided into three principal centres — one at Callao, the
principal port of the Republic ; one at Paita, a
northern port of only second importance ; and the
third at Ilo. Upon arriving at any of these ports
ships are subjected to a very careful and thorough
examination, no doubt a little irksome to the officers
and the passengers, but absolutely necessary under the
circumstances. Each centre has a properly qualified
medical staff, and only the most modern of equipment
is used for disinfecting the vessels. Other Peruvian
ports maintain medical officers, who are instructed to
keep a watchful eye upon all incoming vessels and to
make periodical reports to one of the three principal
centres. For the regular lines of coasting-vessels
calling at Peruvian ports, there exists a special service
of sanitary inspectors, who continually travel up and
down the coast on the ships, and maintain a keen
outlook for any sign of infection on board. The
Government reserves the right to detain and disinfect
any ship if it is found to be necessary.
It is interesting to note that Peru was one of the
South American countries which signed the Washing
ton Convention for International Sanitary Control, and
the Government regulations are in accordance with

56 PERU OF THE TWENTIETH CENTURY
the rules and regulations laid down by that Conven
tion. So far as the interior arrangements for sanitary
control are concerned, the cities and towns have their
own local bodies, which are composed of municipal
officials under the supervision of the local medical
officers of each Province, who, on the other hand,
receive direct instructions from the Lima Board of
Health. Isolation stations are established in Lima as well
as in other principal towns, where patients are re
ceived who may be detained upon their arrival from
infected ports. Lima has also constructed a special
hospital for smallpox cases, a disease which at one
time was very frequently met with, but now is almost
exterminated. The National Institute for Vaccination,
in conjunction with the Local Vaccination Board, have
done much excellent work in the direction of eradi
cating this horrible disease.
The telephone system has been installed throughout
Peru ; but here, as elsewhere in South America (Buenos
Aires, Santiago de Chile, and Valparaiso excepted),
the system leaves something to be desired. Poor as it
is, however, in some parts of the Republic, I think
it less hopeless than the National and Post Office
systems of England — anything more aggravating or
more inefficient than these one could hardly find in
any big city the world over.
The telephones in Lima are in the hands of a
Company, which has a vast network of wires to
neighbouring towns and hamlets to deal with, and
numerous — mostly dissatisfied — subscribers. The main
cities, such as Arequipa, Cuzco, Trujillo, Piura,
Cajamarca, Cerro de Pasco, Huanuco, and lea, have
their own systems. The total distance covered by the
telephone wires for public use in the whole Republic

TELEPHONES AND WIRELESS 57
exceeds 12,000 kilometres, besides the numerous
private installations.
Smaller Companies have been from time to time
formed — there being no pernicious monopoly in Peru
as there is in " free " England — along the coast, and
a fairly complete installation now spreads from north
to south. For instance, a local Company established
in Los Andes has direct communication with another
at Pacasmayo, and with yet another so far as Caja
marca — a distance of 196 kilometres. While, as I
have said, it is open to anyone and everyone to install
the telephone in Peru, the inspection and control of
overhead wires repose in the hands of the Government ;
that is to say, they are under the management of the
Post and Telegraph Department. By general consent
it is admitted that at no time within the economic
history of the country have these two services
attained a higher degree of efficiency than during the
regime of the Leguia Government. Having had much
occasion to avail myself of both, I fully endorse this
expression of commendation. The many public servants
employed — both male and female — are noted for their
extreme politeness and attentiveness. How much
might some of our haughty and impertinent officials
learn from them !
Wireless telegraphy, the apparatus for which has now
been fitted to the Peruvian Navy vessels, was first intro
duced into Peru in connection with an agreement with a
German Company — Telefunken - Gesellschaft — which
erected experimental stations at various points, and en
couraged by the success achieved in some directions,
the Government determined to adopt the radiographic
service, to operate in the extensive zone of the Amazonic
Delta, a region which embraces an area exceeding 200
kilometres — namely, from Puerto Bermudez, on the
River Pichis, to Macisea, on the River Ucayali. These

58 PERU OF THE TWENTIETH CENTURY
were the earliest experiments which had been made
with radiography across a territory so completely
covered with dense tropical vegetation.
Ordinary telegraph wires erected in these regions
are not only subject to deterioration and ruin by the
damp atmosphere, which in any case has a very bad
effect upon them, but they are not infrequently
destroyed by falling trees or completely covered up
in their extraordinarily rapid and vigorous growths.
The first stations for the wireless installations con
sisted of three towers, each being 45 metres in height
(about 147 feet). The system was next extended
to Iquitos by means of intermediary stations ; and
subsequently to the montafta.
It is interesting to recall that some years ago Brazil
attempted, but without success, to establish wireless
telegraphy through the dense forest regions, and
which resulted only in a repetition of the failure
made by the Belgians in the Congo. While I was
in Rio de Janeiro last March (1911), the Minister of
Posts and Telegraphs kindly explained to me the
whole matter of installing wireless telegraphy through
out the Republic, and mentioned incidentally that
Signor Marconi was very anxious to obtain the con
tract, but his prices were so "unreasonably high" that
the Government had decided to pass by his tender,
and probably would award it to the De Forrest Wire
less Telegraph Company instead.
A new installation, including the erection of an
80 -metre tower, is to be established on San Crist6bal
Hill, which rises above the city of Lima to a
height of over 1,300 feet, and therefore admirably
suited to a wireless service. It is the intention of the
Government to use apparatus of sufficient power to
enable direct communication with Iquitos, which is
separated by a distance of 700 miles. If this should

Lima : Bank of London and Peru.

TELEGRAPHS 59
prove impracticable, on account of the great height of
the Andean ranges, the lowest point of which is
15,000 feet, an intermediate station will be equipped,
and will doubtless prove effective.
Peru has seldom been far behind the rest of the
world, and very often in advance of it, in introducing
new inventions for public use. As we shall see later
on, it was the first of the South American countries
to build a steam tramway, as it was the first to intro
duce the Telefunken system of wireless telegraphy.
The Republic may also lay claim to having erected
one of the earliest electric telegraph lines — in 1864 —
that from Lima to Callao, separated only by a distance
of seven miles, it is true, but a feat in those days,
considering that the electric telegraph had only been
invented and brought into use in Europe (London)
in 1837. To-day there are over 5,500 kilometres of
Government lines — the State took over the adminis
tration of the telegraphs in 1875 — while another 1,000
kilometres remain in the hands of private parties by
arrangement with the State. In 1910 a further 696
kilometres were built, as against but 452 in 1909.
The administration of the telegraphs is divided up
into different zones, each of which is under the sur
veillance of an Inspector, and all of whom are
responsible to, and controlled by, the General
Direction of the Service at Lima. Altogether there
are some twenty-three central offices, 231 local offices,
twenty inspection districts, and 10,288 kilometres of
line in operation. A staff of not fewer than 350
persons is employed. The Government owns all the
lines with the exception of the railway telegraphs,
but these are also available for public use.
The rates charged to the public are not by any
means excessive, being 40 cents (about lOd.) for a
telegram up to ten words, including the address and

60 PERU OF THE TWENTIETH CENTURY
signature, and 4 cents extra for every additional word.
Special press-rates are enjoyed, newspapers being
granted a reduction of 75 per cent, from the usual
charges. The telegraph system of the Republic joins
on to the lines of Ecuador and Bolivia, which, in their
turn, are worked in connection with those of Colombia,
the Argentine Republic, and Chile. With the rest of
the world cable communication is maintained by means
of the West Coast of America Telegraph Company and
the Central and South American Telegraph Company.
In conjunction with the other West Coast
countries (Colombia and Chile), Peru is linked on
to the European systems at St. Vincent, while the
Central and South American Company has also cables
from North America to Valparaiso, via Col6n (Panama),
or Vera Cruz and Salina Cruz (both in Mexico).
All those who have lived in Latin- American coun
tries, and especially in Brazil, have experienced the
difference which a good and a bad postal service can
mean to pleasant and profitable residence ; and
whether he be merely a transient visitor, dependent
perhaps upon the mails for his future guidance, or
a permanent resident, who relies upon it to conduct
his business transactions, the regular and dependable
dispatch and distribution of the mails are of the
greatest importance.
In Peru no branch of the Peruvian public service
has been more radically reformed than this, and
to-day the Postal Department is found to be among
the most efficient of any in the Republic. Not only
is correspondence faithfully and speedily delivered,
but it is absolutely, and at all times, safe from
pilfering or suppression, which is seldom, I fear, found
to be the case in some of the smaller States, such as
those of Honduras, Nicaragua, and in at least one of
the larger — namely, that of Brazil.

POSTAL REVENUES 61
Over so extensive a territory as that of Peru, the
organization of a thoroughly efficient postal service
has been a matter requiring much care, patience, and
time, but it has been effected, and the results are
entirely satisfactory. Pace has been kept with the
rapid increase in the trade and population of the
country, and this expansion augments day by day.
Although, by a special regulation of the Govern
ment, the receipts of the Post Office do not find
inclusion in the General Revenue, in practice they are
sufficient to meet all the ordinary expenses, while for
the past five or six years they have yielded a con
siderable surplus. For some time previously the
Peruvian Government had been in debt to the Postal
Union in regard to its contribution ; but so well have
the affairs of the native postal arrangements been
handled of late that every centavo formerly in arrears
has long ago been cleared off. The steadily rising
income derived from the sale of stamps, fees on parcels,
extra postage upon correspondence, and commission
upon money-orders, now enables the Post Office to
deal fully and without hesitation with all matters
of expenditure coming within its department.
From 1900 to 1905 the total revenue from these
different sources increased from £32,250 to £58,276,
or an improvement of £26,026. When we remember
that in 1898 the whole revenue scarcely exceeded
£26,000, we see that in some seven years the income
from these receipts has more than doubled. The total
increase of mail-matter carried within this period
(dating from 1901 to 1905 only) was over 7,850,000
items. For the past year (1910) a further substantial
increase has to be recorded, and the Government has
been abundantly rewarded by the results attending
the increased authorized outlay upon the Postal
Service.

62 PERU OF THE TWENTIETH CENTURY
Since July, 1910, more attention has been devoted
to issuing postal statistics, and the department
charged with this work is now both well organized
and well maintained.
The administrative service is divided into different
districts, or " Principal Post Offices," the most remote
being at Pala, in the north, and close to the frontier
of Ecuador. The most distant in the south are
Desaguadero and Sama, upon the frontiers of Bolivia
and Chile. In the east there is a principal post office
situated at Iquitos. There are now twenty-four prin
cipal offices in all, while fifteen years ago there were
but seven for the whole of the Republic. Foreign
money-orders can be obtained for any of the European
countries, the United States of America, and prac
tically for all of the Latin-American States.
The Head Post Office building in Lima is a mag
nificent and ornamental structure of pure white stone,
with massive bronze railings to the windows, and
surmounted by imposing bronze statues. It is open
to the public day and night and every day of the
year, Sundays included. The clerks employed are
male and female, and the public are treated with the
utmost courtesy and consideration.
The Parcels Post organization in Lima (the central
office for all such items) is particularly efficient, the
least possible trouble being given to those who either
send or receive parcels ; far different, indeed, to either
Rio de Janeiro or Buenos Aires, where dispatchers
or recipients of foreign parcels are regarded by the
officials almost in the light of criminals, and are
treated with about as much courtesy or consideration.
A great improvement in the Peruvian service was
effected by the establishment of the principal office
at Iquitos. It is now possible to conduct all business
from that office direct with foreign countries, whereas

AVIATION 63
formerly everything had to pass, for the purposes of
Customs examination, through Lima.
The Government, with the increased revenue, has
consistently reduced the rates for postage, and has not
sought to make the Postal Service a means of large
profit. Such has been for many years the policy with
the British Government. Another liberal and sensible
principle — one which it would be illusive to suppose
our archaic postal authorities would ever adopt — is
to carry all newspapers, whether political, scientific,
commercial, or literary, free of charge within any
portion of the Republic. I believe that the same
regulations are adopted in Australia, Canada, and the
United States, the Government thus increasing the
utility of the press and affording at the same time
a valuable impetus to local trade. So far from carrying
trade publications free in Great Britain, our enlightened
Government actually penalizes the owners by making
them pay at higher rates than those charged upon
ordinary newspapers, and enforcing harsh and un
reasonable restrictions as to the exact proportions
of reading-matter and advertising-matter, the size and
number of the supplements, etc. — in a word, rendering
as difficult and as onerous as possible the conducting
of a trade publication, in contrast to the beneficent
and discriminating policy of Peru.
As may well be believed, the Government would
not allow the study of aviation to lack support, more
especially since the attention of the whole world was
but a year ago drawn to the heroic Jorge Chavez-
Dartnell, the Peruvian airman, who was the first human
being to cross the Alps on a flying-machine. The
Government, at the time of this young aviator's death,
subscribed £1,000 towards the cost of a monument,
which has just been erected at Lima, to his memory ;
and now it has given its patronage to a National

64 PERU OF THE TWENTIETH CENTURY
School of Aviation, the first establishment of its kind
in South America.
The School has recently been opened at Lima, the
Director being Senor Juan Bielovucich, and his assistant
Senor Henri Chailley. The attendance is limited to
twelve pupils, and of these the Government is paying
the tuition of eight. The tuition-fee is £180, and the
pupils will be held responsible for all damage done by
them to the apparatus. The machines in use at
present are Voisin biplanes, imported from France,
and equipped with Gnome motors.
There already exists one notable airman's club, the
Peruvian Pro-Aviation League, which was organized
in the month of September, 1910. The President is
General Pedro E. Mufiiz. Societies have since been
organized at Lima, Callao, and other cities.

CHAPTER VI
Finance — Loans and their history — Period of prosperity followed by
severe restriction — Extravagance of former Governments — Guano
revenues — Bestoration of Peruvian credit — Becent borrowings —
Arrangements with British creditors — Peruvian Corporation —
Municipal loans — Tax-collecting Agency — Revenue and expenditure
— Customs receipts — Foreign commerce — Budget for 1911-12.
Peru, in regard to its national finances, has not
escaped the troubles and complications which have
been common to all the Latin- American States — and
most of the European — in their evolution of progress ;
but it differs from them in this respect — viz., it has
had to face most of its difficult economic problems as
a consequence of the several changes of administration
which came about during the early years of its in
dependence. A special volume might be written upon
the development of the finances of Peru ; and it
becomes a matter of some difficulty to compress
within a single chapter anything like a comprehen
sive review of the country's past financial conditions.
The first loan raised by the young Republic was
in 1822, for the sum of £1,200,000 at 6 per cent.
interest. So little confidence did the English issuing
house have in the financial stability of the young
country that they insisted upon deducting three
years' interest — that is to say, the sum of £216,000 —
while, of the balance, less than one-half was handed
over in cash, the remainder being in the form of
munitions of war — quite the usual practices of the
usurer. As may be believed, this amount did not
65 5

66 PERU OF THE TWENTIETH CENTURY
last very long ; and three years afterwards — namely,
1825 — a second loan was contracted in London, also
at 6 per cent, interest, and this time for the sum of
£1,500,000 ; but it was impossible to place more than
£716,516. At this early period, then, Peru found itself in debt
to the extent of £2,700,000, plus £1,300,000 due to
Chile and Coiombia, for the assistance they had
rendered during the War of Independence, or, a total
indebtedness of £4,000,000, representing considerably
over a capitat of £1 for every man, woman, and child
in the country. No mention is made here of the Home
Debt, which had also accumulated to a considerable
amount, but which was left unliquidated, and was
eventually permitted to die out naturally.
At this time (1825) the Government revenues con
sisted of various taxes, of which the principal was the
tribute levied upon the natives, and which took the
place of the tax which had previously been levied
upon the Indians by Spain. Although estimated at
$2,000,000* (£400,000), barely more than 75 per cent.
of this tax could be collected, and such amount as was
realized, plus the Custom House dues, barely reached
the $2,000,000 hoped for. The total value of the
country's production did not exceed $11,000,000, nor
its exports much more than $8,000,000.
Shortly afterwards (1830) a reorganization of the
country's finances was attempted with but poor results,
and Peru found itself unable to attend to the service
of its Foreign Debt, which still reached, including capital
with accrued interest, £2,310,767, after making allow
ance for the small amount which had already been
repaid. The country's Home Debt at the same time
amounted to nearly $18,000,000 (£3,600,000), so that,
in all, the public indebtedness amounted to £5,670,767.
* The Peruvian dollar (or sol) has been estimated as worth 4s. —i.e.,
$5*=£1. To-day, 1 exchange = 24d. or 10 sols = £l.

Near Urcoz, on the Cuzco Extension of the Southern Railway.

The Volcano of "Misti" by Moonlight, showing the Harvard
Observatory.

FINANCES 67
How slow was the march of improvement in the
country's finances is seen from the fact that ten years
later (1840), the total amount of the public revenues
did not exceed $3,000,000, notwithstanding the fact
that those of the Custom House had more than
doubled ; for if was from this time forward that the
product and the sales of guano commenced to figure
as a principal factor in the Government revenues. I
deal with this phase of Peru's industry in a separate
chapter. At about this time (1840) a new loan was contracted
in London for £3,736,400, which was to supersede
and cancel the two loans of 1822 and 1825. Owing
to the financial improvement brought about by the
success of the guano sales, the country soon com
menced to shake itself free from its most pressing
financial troubles. The whole internal debt was
liquidated, being consolidated in bonds bearing 3 per
cent, interest.
In 1850 we find that the Public Debt of Peru was
made up as follows : —
Home Debt, consolidated in bonds at 3 per $
cent, interest ... ... ... 5,662,900
Foreign Debt ... ... ... 18,682,000
Debt to Chile ... ... ... 4,000,000
Floating Debt ... ... ... 2,500,000

Total ... ... $30,844,900
Now commenced a period of reckless extravagance
and lavish outlay, which, in spite of the industrial
wealth which the country was producing, soon plunged
it once again into financial trouble. How much the
guano sales meant to the country is seen from the
fact that, for the first time in the financial history
of any independent State in the world, Peru was able
to conduct the whole of its Government without
recourse to private taxation. Blinded by the visions
of unlimited wealth opening before it, the Government

68 PERU OF THE TWENTIETH CENTURY
of that day failed lamentably to organize its finances
upon a sound and definite basis, but, on the other
hand, continued to borrow, heedless of consequences
and at usurious rates of interest. By 1860, the
annual expenditure exceeded $20,000,000 (£4,000,000),
a sum which amounted to more than double that had
been expended during the first years of independence.
At this period the revenue outside the guano sales
did not exceed $4,000,000 (£800,000), of which the
sale of stamp-paper contributed $500,000 (£100,000),
and Custom House dues $3,500,000 (£700,000).
At length arose a wise man in Israel, who, foreseeing
the disaster which must inevitably occur to the country
from the financial imbroglio in which it was involved,
he — namely, Senor Don Manuel Pardo, then Minister of
Finance — determined, as a preliminary measure, upon
forming upon a monetary system a conversion of the
debased Bolivian coins (which were then circulating in
Peru at par, although of a lower standard), and pro
hibiting for the future the importation of any foreign
money which should not rank as " standard." In
order to carry out this programme, it was necessary
that the outstanding debt should be consolidated,
and the old foreign debts of Peru — the Anglo-
Peruvian, the Deferred Stock, the so-called Urri-
barren Debt, and the Arica and Tacna Railway
Debt. Once again the Government came to London to
borrow, and in 1862 contracted for a loan of
£5,500,000 at 4j per cent, interest and 8 per cent.
annual amortization. The issue price was 93 per
cent. The security offered was the general guarantee
of all the Government revenues, including the product
of the sales of guano in the United Kingdom and
Belgium. After the conversion of the old loans had
been effected, the Government found itself in pos-

PUBLIC LOANS 69
session of £2,400,000, of which about £1,000,000
sterling was remitted to Lima in the form of gold-
bars. Although the exchange of the Bolivian money to
that of Peru had been effected with advantage, and
as a consequence the finances of the country had been
placed upon a somewhat better basis, troubles still
continued ; for while the expenditure had reached
24,000,000 sols, the revenues only amounted to
16,000,000 sols, leaving a deficit of 8,000,000 sols.
Then came more trouble in the form of a short
but costly war with Spain, which country had
seized the Chincha Islands, these being the principal
guano deposits, and consequently the source of Peru's
main financial revenues. The Spanish War necessi
tated a further loan being raised, and for the third
time within a few years Peru came to London to
borrow another £10,000,000 at 5 per cent, interest
and 5 per cent, amortization. The new loan was
intended to be a conversion of the old foreign
debts ; but only £7,000,000 of it were actually placed.
Of this amount, after deducting all expenses and
converting the above-mentioned debts, and the pay
ment of sundry urgent amounts due in Europe, there
remained £1,300,000 for the use of Peru.
Political troubles in the country broke out in 1867,
which resulted in a new constitutional regime being
formed in 1868. The new broom swept no cleaner than
the old, and Peru continued to spend recklessly and
to borrow heedlessly. In 1869 a further small loan for
£290,000 was placed in London at 71 per cent.,
bearing interest at 5 per cent., for the construction of
the Pisco-Ica railway. This was followed by another
issue in 1870, for the considerably increased amount
of £12,000,000 at 6 per cent., issued at 82^ per cent.
The net amount received by the Government in this

70 PERU OF THE TWENTIETH CENTURY
case was £10,500,000. Two years afterwards (in
1872) a further loan for £15,000,000 sterling at
5 per cent, was raised, the country by this time
having to find about £1,470,000 annually to pay
the interest on these various foreign debts.
Still unsatisfied, the Government decided upon yet
further borrowing, and attempted to place a fresh loan
for £23,215,000. This effort, however, ended in
disaster ; for whereas it was believed that it could
be placed at 77\ per cent., the actual price obtained
did not exceed " 64-36 per cent.," so that out of the
whole sum of £23,215,000 relied upon, the Govern
ment received no more than £13,000,000. The out
standing foreign debt of Peru at this time (1872) stood
at £35,000,000, requiring an annual interest and
amortization of no less than £2,700,000. This was
the precious legacy left by the well-meaning, but
financially disastrous, Government of President Balta ;
and it now needed something like a financial genius
to arise and unravel the complicated muddle which
had been left behind.
The burden of setting right the finances of
the country was taken up energetically by the
new President, Senor Manuel Pardo, who found
a terrible state of affairs confronting him. The
annual expenditure had now reached nearly 21,875,000
sols (of 40d.), while the entire receipts did not
exceed 8,677,000 sols, 6,000,000 sols of which were
derived from the Customs Houses. Over 31,000,000 sols
were due to the Government by Customs Houses,
which sum had never been paid during the days
of financial and political stress ; while the Government
was indebted to different constructors of railways and
other public works for the sum of nearly 9,000,000
sols. The revenue from the guano deposits had fallen
to less than £2,000,000 sterling, while the service

(FINANCIAL REFORMS 71
of the different foreign loans required, as stated above,
about £2,700,000 annually to meet the interest.
President Pardo commenced his drastic reformation
by cutting down the Budget, and so effectually, that
the deficit became reduced to 8,500,000 sols. He
reformed the tariff of the import duties ; he issued
Treasury as well as Home Debt bonds ; he established
a Government monopoly on nitrate production, and he
introduced several other reforms. In spite of all these
expedients, however, the finances of the country con
tinued to go from bad to worse ; and in 1874 Peru
found itself practically insolvent and unable to keep up
the service of its foreign debts in Europe. Added to
its fiscal complications, however, the Government had
obtained loans at a heavy interest from some of
the local banks, which, according to the laws in force
at that time, were empowered to issue notes payable to
bearer at sight for three times the amount which they
held in actual cash in their treasury. With the distress
of the Government, the banks also came to grief ; and
the whole country was involved, more or less, in
financial adversity. Firm after firm collapsed, and bank
after bank closed its doors, only a very few of the more
solid among the foreign houses continuing to stand
against the pressure.
In 1876 the new Government, under General Prado,
who had succeeded Senor Don Manuel Pardo, made
a new arrangement with the banks, by virtue of
which the latter granted the Government a fresh loan
to enable it to meet some of its most pressing obliga
tions. The State agreed to assume the whole respon
sibility for the banks' advances, the maximum of
which was close upon 18,000,000 sols. The Govern
ment also took over the banks' unpaid paper, so that it
became converted into a Government Note.
Just when the country was at length emerging

72 PERU OF THE TWENTIETH CENTURY
from its troubles occurred the war with Chile. As
history has shown, Fortune declared against Peru, and
at the end of the struggle with her revengeful neigh
bour, a war which lasted from 1879 to 1883 or the
beginning of 1884, the Republic found itself despoiled
of the principal sources of its fiscal wealth. Both its
guano deposits and its nitrate-fields were confiscated,
and nothing remained in the way of assets except its
own 100,000,000 sols of paper money, which circulated
with difficulty at 10 per cent, of the face value.
Peru's foreign loans were quoted upon European
markets at sensational discounts, and the finances of
the country were now at about their lowest ebb.
The foreign debt being the most pressing, the
Government hit upon the expedient of cancelling the
large sums raised abroad, and which were nearly all
due to European bondholders of the railways, by
handing over to them the whole of the railway lines
and other concessions, as well as making a substantial
annual payment. To deal with this large undertaking
a public body was formed, and it is to-day known
as the Peruvian Corporation, Limited.
By the very opportune adoption of the gold standard,
the Government now once again attracted the influx
of foreign capital into the country, and from that time
forth it has continued to flow in considerable amounts.
From about this period (1885) also Peru has not only
advanced materially in financial prosperity, but has
evinced so unmistakable a determination to regulate
her expenditure within reasonable limits, and so faith
fully to maintain both her home and foreign obliga
tions, that her financial position once more stands on a
par with that of any other Latin- American State.
This fact was proved by the facility with which in
1905 the Republic was able to raise a loan of £600,000
at 6 per cent, interest and at 90 per cent., issued

PUBLIC DEBT 73
through the German Transatlantic Bank, and which
has since been cancelled ; and still more recently —
namely, June, 1910, when £1,200,000 at 5£ per cent.
was floated in France, with the proceeds of which
the Republic paid off the bank's loan of £600,000
and the balance of another which had been receiving
from 6 per cent, to 8 per cent, interest. The French
loan will be amortized in twenty-eight and a half
years from December 11, 1909.
The foreign debt of the Republic stands to-day as
follows :
Annuities to the Peruvian Corporation  £80,000*
French Loan at 5^ per cent. ...  1,200,000
£1,280,000
At the end of 1909 there had been an unofficial state
ment current to the effect that a powerful French group
of financiers were about to effect a new loan for Peru,
the houses concerned being the Banque de Paris et
des Pays-Bas, the Soci^te" Gen^rale, and the Banque
Francais pour le Commerce et l'lndustrie. The first-
mentioned bank acted as intermediary in the settle
ment of the difficulties between the Government and
its creditors in France over what is known as the
" Guano Affair," who claimed about 25,000,000 francs
(£1,000,000). The Deutsche Bank at first competed
with the French banks for the loan, but drew out
on being guaranteed a share in the transaction. This
transaction would have had a twofold nature. In the
first place, the French group would proceed to issue
a first slice of £1,200,000, bearing 5 per cent, interest,
destined in part to liberate the salt monopoly, which
served as guarantee to the Peruvian loan of £600,000
* It is to be observed that this annual payment of £80,000 to the
Peruvian Corporation was arranged by the Government of General Car-
ceres, and was to continue for thirty years from 1893, so that the pay
ments will terminate in 1923.

74 PERU OF THE TWENTIETH CENTURY
issued by the Deutsche Bank. The balance of this
loan still unredeemed amounted in 1910 to £450,000,
and there was a further debt to the Creusot firm
amounting to £300,000, both of which were to be paid
off out of the proceeds of the loan of £1,200,000.
Then the Guano affair was for settlement, which was
the principal object of the second loan.
Such a transaction would have a decided interest
for British holders of the Peruvian Six per Cent. Gold
Loan issued in 1906. The Government have had the
option of repaying this loan at par on six months'
notice since the time of issue, and a confirmation of
its desire to get rid of it existed in the fact that an
extra drawing, outside the ordinary Sinking Fund
arrangement of 2 per cent, per annum, took place in
1908 to the extent of £32,350. At the commence
ment of 1909 the amount outstanding was £524,450,
which has now been further reduced.
The ex-Minister of Finance and Commerce (Senor
Enrique Oyanguren) had submitted to his colleagues
a very sound scheme for dealing with the Internal
Debt of the country. This amounts to a nominal sum
of £3,859,000, but its present market value is assessed
at £437,640.
There are two Internal Debt issues, authorized
respectively by the laws of June 12, 1889, and De
cember 17, 1898. The first of these draws an annual
interest of 1 per cent. There remains yet a nominal
amount of £2,660,000, which at the present market
rate means an actual value of £359,100. The bonds
of the second draw no interest, but are amortized each
year by £25,000. The nominal value of these is
£1,190,000, which at the present market rate repre
sents an actual value of £78,540.
In addition, there are the deficits of the years 1908,
1909, and 1910, respectively £126,000, £131,000, and

HOME DEBT 75
about £50,000. This latter amount of £50,000 is
being gradually paid off in accordance with the law
concerning the liquidation of budgets. As to the
deficits of 1908 and 1909, the Government will propose
to Congress the negotiation of a loan, and doubtless
they will be paid in full before the expiration of the
present year.
The total actual value of the outstanding Internal
Debt of Peru is :
Law of June 12, 1889  £359,100
Law of December 17, 1898  78,540
Deficits 1908-10  307,000
Total ... £744,640
The ex-Minister proposed to make this up to a
round million sterling by issuing a further £562,360,
upon which an interest of 7 per cent, would be
paid. The idea is, I understand, to adopt this as
a temporary measure only, following it during the
coming year with a 5 per cent. Conversion loan, raised
externally. Peruvian credit now stands so high upon all
the foreign markets that there will doubtless be some
competition among bankers to place this new loan.
Last April (1911) the contract was submitted to
the Municipal Council of Lima for a new bond-issue
to the amount of £700,000, to be offered in £100
bonds, with interest of 5^ per cent., payable half-
yearly, and amortization being provided for, beginning
May 1, 1916, the bonds being retired on or before
May 1, 1950. The Bank of Peru and London would
have taken, at 86 per cent., an amount of £590,000 for
themselves and the London Bank of Mexico and South
America ; while the firm of W. R. Grace and Company
offered to subscribe for £110,000 for themselves and
the National City Bank of New York. The proposal,
however, was not carried out ; but, as I write, it is
understood that a loan of £600,000 will be at no

76 PERU OF THE TWENTIETH CENTURY
distant date raised, and that it is likely to be offered
at 90 per cent., and bear interest at 6 per cent. The
city of Lima is also to receive shortly the sum of
£100,000 in cash, which has been offered by the
Lima Water Company in consideration of the exten
sion of their franchise for a further term of forty years.
It is highly probable that this offer will be accepted also.
The City of Lima Eight per Cent. Bonds, which were
issued to the amount of £300,000, in accordance with
a decree of October 8, 1903, offered a particularly
sound investment, in spite of the fact that the interest
(which is payable quarterly at Lima or in New York)
is subject to a Peruvian income-tax at 4 per cent.
The bonds, which were offered at 97, yield at that
price, after deducting income-tax and also Peruvian
income-tax at 4 per cent., about 7\ per cent, per
annum. The total redemption of the loan must be
effected in a period not exceeding fifty years from
1903 and 1904. The security seems ample, inasmuch
as the revenues of the city of Lima, which has a
population of 150,000, is estimated to bring in easily
£100,000 per annum.
A stock company, with a capital of £300,000, and
known as the National Tax Collecting Company, was
established at the most critical moment of the Republic's
financial affairs — namely, 1895 — and when national
bankruptcy was in the balance. The company, which is
the Sociedad Recaudadora de Impuestos remodelled,
has proved a most useful and beneficial means for both
organizing and collecting the considerable sums accruing
to the public exchequer, and at the same time regu
lating the general finances of the country. Year by
year the functions of the institution have extended as
its value has been better realized, and most of the
important corporations in Peru have had commercial
relations with it.

Lima ; The Savings-Bank building.

MUNICIPAL DEBT 77
By the terms of the contract which was made with
the Government, the National Tax Collecting Company
has to receive all such revenues as taxes upon spirits
and tobacco, stamps and registration fees, legacy
duties, income - tax, taxes upon matches, mining
licences, and, in fact, practically all the different legal
payments due to the Government.
This corporation has been authorized to expend a sum
of £84,000, out of revenue which is collected annually,
upon the administration of the different branches which
produce the revenue, retaining for itself upon the net
production, originally, a commission of 3 per cent.,
which, however, diminished annually by |- per cent.
until the year 1900, when it fell to 1 per cent. This
has been the rate of commission in force until the end
of the current year (1911), when the original contract
comes to an end, although the Government had
reserved to itself the right to cancel the agreement at
any time after granting it, by giving six months'
notice in writing. So unusual a source for handling
the revenues of a Government in a country where
representative administration prevails, I should say,
could exist only in Peru.
The skilful manner in which the management has
been conducted is best seen from the figures for the
nine years from 1901 to 1909; which will be found
set forth below.
From eighteen sources of revenue — 1901, £413,871
1902, £433,310; 1903, £492,086; 1904, £687,960
1905, £815,858; 1906, £895,479; 1907, £896,852
1908, £886,848 ; 1909 (estimated), £866,530.
The responsible officers of the National Tax Collect
ing Company are all men of the highest integrity and
of sound financial reputation, neither party politics
nor personal influence having anything to do with
their appointment or with their control.

78 PERU OF THE TWENTIETH CENTURY
Apart from the revenues handed over to the Govern
ment by the National Tax Collecting Company, there
are the Customs dues and some minor taxes, which are
paid direct to the National Treasury. How the
Republic's revenues have grown since 1899 is seen by
the following figures :
Revenues (all accounted for) in 1899— £1,370,137
1900,£l,312,571; 1901, £1,535,136; 1902, £1,483,305
1903, £1,614,297; 1904, £1,990,568; 1905, £2,178,320
1906,£2,555,463; 1907, £2,830,324 ; 1908, £2,861,299
1909, £2,518,062; 1910,2,795,775.
Naturally the expenditures of the Government
had increased proportionately, and for one of the last
years mentioned (1908) the outlay amounted to : Con
gress, £101,732 ; Interior, £449,127 ; Foreign Affairs,
£52,793 ; Justice and Instruction, £416,096 ; Finance,
£406,609; War and Marine, £494,865; Fomento,
£204,919; Extraordinary Expenditure, £696,914, with,
say, a total of £2,823,055.
The total revenue derived from all sources in 1910
amounted to £2,795,775, the principal items being :
Customs, £1,384,158; National Tax Collecting Com
pany, £1,050,745 ; Peruvian Salt Company, £99,032.
The total expenditure figures for the same period,
which were estimated at £2,784,513, actually amounted
to £2,653,335. Foreign trade amounted to £l 1,039,562,
exports being £6,408,282, and imports £4,631,280.
The annual revenue of the Republic is approximately
£2,800,000, and if, as some financial critics have stated,
it seems unlikely that for some time to come this sum
will be very much increased, it is certain that nothing
less is likely to be realized.
From the year 1884 to 1909 the public finances of
Peru have had an average annual development of
£100,368, while its imports and commerce during the
same period shows an average annual increase of

PUBLIC EXPENDITURE 79
£255,073, and, as regards exports, an increase of
£268,671. There has also been a substantial aug
mentation of deposits in banking and other economic
institutions. Based on these facts, Peru of to-day
possesses an economic capacity five times greater than
Peru of 1884, and a financial potentiality sufficient to
yield to the public treasury not only £3,000,000 per
annum, but £4,000,000 if the tributary system be
reformed without augmenting the number of imposts.
The contemplated expenditure for the present year
(1911) is as follows :*

Department of the Interior

.. £287,778

Foreign Affairs

50,000

Justice and Instruction ...

216,479

Finance and Commerce

409,369

War and Marine

497,921

Fomento (Promotion) ...

218,456

Extraordinary expenditure

.. 1,680,008

Or a total of ...

.. £2.360,311

It may be pointed out that the "Extraordinary
Expenses" cannot be estimated with any accuracy,
since much depends upon the progress of legislation,
which, again, depends upon Congress. The annual
cost of legislation has averaged £106,000.
In 1909 the Customs receipts were £962,000, while
£482,000 was collected for the first half of 1910, or at
the rate of £964,000. It must be remembered that
the Customs revenues are always greater in the second
half of the year than during the first, so that the
Government authorities were looking for a revenue of a
round £1,000,000 from these sources for the whole of
1910. Then the taxes collected by the Compaiiia
Nacional de Recaudaci6n (National Tax Collection
Company), which amounted to £695,000 in the first
* The Legislature dispersed before definitely approving the Budget for
1911. These figures are only conjectural, being based upon those for
1910.

80

PERU OF THE TWENTIETH CENTURY

eleven months of 1909, produced in the same period for
1910, £779,000. The salt revenues up to November 30,
1910, came to £211,000 inclusive, as compared with
£194,000 in the same period for 1909.
The receipts of the principal Custom Houses of the
Republic for the first three months in 1911 show, in
every instance, an increase over the corresponding
period of 1910, as below (in pounds and thousandths) :

Port.

1911.

1910.

£

£

Paita 

15,418.566

10,363.571

Eten 

9,350.420

6,426.443

Pacasmayo

5,452.338

4,255.922

Salaverry 

9,046.713

8,156.387

Callao 

186,261.012

154,410.323

Pisco 

5,970.315

5,188.273

Mollendo 

45,899.695

35,551.368

Ilo 

2,522.358

1,948.777

279,921.417

226,501.064

The total increase in the Pacific ports enumerated
above is, therefore, £53,420.353. The statement from
the Atlantic port of Iquitos, on the Amazon River, has
been received only up to January, 1911, inclusive, the
income for the month being £15,519.509 as against
£10,431.394 in 1910, an improvement for the month of
£5,088.468. It is somewhat surprising to find a number of
American and some British journals, in taking the
Peruvian official figures, entirely misunderstand the
meaning of the fractions which are usually expressed.
Thus a revenue of £1,017,488.657 is given in these
publications as "£1,017,488,657," which, for a young
country like Peru, with a population of but 4,000,000,
would be simply absurd, the amount of its Customs due
being magnified thus 1,000 times. The last three
figures in the sum, of course, represent the fractions of

FOREIGN COMMERCE

81

the Peruvian £, which is made up of 1,000 centavos.
The total revenues of such countries as Argentina,
£22,456,000 ; Brazil, £28,917,000 ; Chile, £13,000,000,
would appear insignificant in comparison, while even
France can only claim £167,423,000 and Germany
£149,689,000. Continued improvement is shown by the maritime
Customs House receipts at the various ports of the
Republic. Elsewhere I have directed attention to the
advance made by the Port of Callao in this respect,
the total for 1910 coming to £797,867, as much as
£84,343 having been collected in the course of one
month, namely, last June (1911).

FOBEIGN COMMEBCE OF PEETJ, 1899-1908.

Year.

Import.

Export.

Total.

Remarks.

£

£

£

1899

2,123,018

3,361,531

5,484,549

1900
2,317,150
4,497,999
6,815,150
1901
2,717,107
4,318,776
7,035,884
1902
3,428,283
3,703,971
7,132,255
1903
3,783,380
3,857,753
7,641,134
1904
4,357,338
4,066,639
8,423,978
1905
4,357,696
5,757,350
10,115,047
1906
5,010,496
5,695,179
10,706,375
1907
5,519,751
5,744,544
11,264,296
1908
5,311,973
5,478,941
10,790,914
1909
4,298,670
6,492,627
10,791,297
1910
4,631,280
6,408,282
11,039,562
CHAPTER VII
Insurance — Native offices — Foreign agencies — Leading offices — Com
parative surpluses — Dividends paid — Bimac figures for 1910 — Bank
ing — Principal banks — Bank of Peru and London — Savings bank
(Caja de Ahorras) — Coinage — History — Monetary laws — The National
Mint.
The business of insurance has been developed
considerably of late years in Peru — in fact, since
the passage of the law of 1901, which, at one
time, was supposed to "kill it." In the year 1895
laws had been passed, for the first time in the Re
public, in connection with the carrying-on of insurance
business. Up to that time, it had been almost
entirely conducted by foreigners, and no native in
surance companies any longer existed. The old Peru
vian companies, known as La Lima and La Sud-
Americana, had liquidated their affairs at the time
of the war between Chile and Peru. At this time, also,
there were fifteen agencies of different foreign in
surance companies carrying-on business in the Capital,
and the majority of which charged a premium of about
100 per cent, more than what is paid by policy-holders
at the present time.
The new Decree passed by the Government was
liberal, and inter alia required that a deposit of £3,000
should be made in order to enter upon the business,
that sum being exacted as a guarantee, through the
State, that foreign companies should carry out their
obligations to the public. In spite of the fact that the
agencies of these companies were making considerable
82

INSURANCE

83

profits, they decided to liquidate, which would lead
one to the conclusion that they regretted having to
find a very reasonable amount of guarantee, and to
trade without any kind of supervision.
The withdrawal of the foreign companies, however,
may be partly accounted for by the subsequent
establishment of a strong native company, the Inter-
nacional. This office commenced its operations by
reducing by 50 per cent, the rates of premium then
in force, a policy which at once secured for it con
siderable support from the public. The Internacional
was followed in 1896 by La Italia and the Rimac
offices ; in 1902 by the Urbana ; in 1903 by the Peru ;
and in 1904 by the Popular and the Nacional, the
capitals and surpluses of these companies being as
follows :

Name of Company.

Established.

Capital.

Surplus.

£

£

Internacional

1895

200,000

60,000

Italia

1896

200,000

41,101

Bfmac

1896

250,000

62,191

Urbana

1902

100,000

6,630

Peru

1903

250,000

10,500

Popular

1904

200,000

21,070

Nacional ...

1901

250,000

15,095

The minimum paid-up capital with which any home
or foreign company may begin business is fixed at
£20,000, half of that amount to be invested in landed
property located in Peru, and the other half in bonds
of the Public Debt, of the Municipalities and District
Councils, or of private institutions which are located in
Peru, and retained to serve as a guarantee to policy
holders. This stipulation seems to me so reasonable,
and in fact so necessary, that it is difficult to under
stand the foreign companies having taken umbrage,

84 PERU OF THE TWENTIETH CENTURY
and preferring to regard the law as an imposition.
Probably they imagined that, by withdrawing, the law
would be annulled ; or fondly believed that no Peru
vian could conduct insurance policies with success. But
they made a very great error, for the native companies
not only prospered, but increased in number, and the
opportunities which the foreign companies then
stupidly threw away have never recurred.
The only three foreign companies still doing business
in Peru to-day are the Sun Life of Canada, La
Previsora of Buenos Ayres, and La Sud-America of
Brazil. Although nominally "foreign," they have
become practically native companies, for they have had to
comply with all the rules and regulations of the new law
of 1901. The Sun Life Insurance Company of Canada
was established in 1865, and is organized under strong
British laws, its capital exceeding £6,500,000 sterling,
while its income is over £1,550,000 per annum from
all sources, and it has a surplus of £1,000,000. The
total business in force up to the end of last year
exceeded £28,000,000.
La Previsora was established in 1885, with an
original capital of 500,000 pesos (£50,000). Its assets
to-day are estimated at upwards of £1,400,000, the
surplus being £1,138,000, while its insurances in force
up to the end of last year amounted to over £4,000,000.
La Previsora is said to be the only company in Peru
which insures the lives of women as well as of men.
La Sud-America, which was founded as recently as
1895 in Brazil, and which entered Peru in 1899,
showed a reserve up to the end of last year of over
£1,500,000. The insurances in force up to that period
amounted to £8,200,000, of which £550,000 were held
in Peru. The form of policy of which the company
has made a speciality is based upon the amortization
principle, 2 per cent, of the total policies in this class

INSURANCE OFFICES 85
being drawn by lot each year, the holders of the winning
numbers having nothing more to pay from that time,
the company assuming for its own account the remain
ing premiums.
La Compania Internacional de Seguros del Peril
was established in 1895, and has an authorized capital
of £500,000, the amount paid up being £200,000,
and the reserve fund £60,000. The company has
paid dividends amounting to as much as 52 per cent.
La Nacional, established in 1904, has an authorized
capital of £200,000. Like the Internacional, it has
agencies in all the principal towns throughout the
Republic ; but while the first-mentioned undertakes
the insurances of house, furniture, and merchandise
(including cargoes received by steamers and sailing-
vessels for all parts of the world), the Nacional insures
against fires and maritime risks only.
La Popular, established in the same year as the
above (1904), has a paid-up capital of £200,000, and a
reserve of £200,000. It insures buildings and fur
niture against fire in Lima, Chorillos, Barranco,
Miraflores, and Magdele'na at very moderate premiums
— in fact, the lowest on the market, and apparently
too low to bring much profit to the coffers of the
company. It has established several agencies in
different parts of Peru.
La Italia, as will be seen, ranks as one of the oldest
of the native insurance companies, its paid-up capital
being £200,000, and the reserve fund £41,101. It
has paid dividends amounting to 30 per cent.
La Urbana is a fire and maritime insurance com
pany, established in 1902, with an authorized capital
of £200,000, a paid-up capital of £100,000, and a
reserve fund exceeding £ 12, 000. The office under
takes insurances of buildings and furniture, and carries
on general insurance business.

86

PERU OF THE TWENTIETH CENTURY

La Compafiia de Seguros Rimac, established in 1896,
insures against fire and maritime accidents ; it has a
paid-up capital of £250,000.
The Peru is a small but progressive office, which
declared its first dividend in 1906, amounting to 5 per
cent. The following table will show how the different
companies prospered during the five years of their
existence from the passing of the new law of 1901 :

1902.

1903.

1904.

1905.

1906.

Total
Dividends.

Per Cent.

Per Ce.

Per Cent.

Per Cent.

Per Cent.

Per Cent.

Internacional

32

36

24

35

52

179

Bimac

16

14

14

25

28

97

Italia

18

10

10

24

30

92

La Urbana ...

—

10

—

12

15

37

Peru ...

—

—

—

—

5

5

La Popular . . .

—

—

—

—

—

—

La Nacional

—

—

—

—

10

10

66

70

48

96

140

420

From this statement it would seem that " La
Popular " was " popular " in name only, since it had
paid no dividend since its introduction to the business
world in 1904. Recent statistics are difficult to obtain,
and perhaps the office may have become more worthy
since 1906 of the title which it assumes.
That the insurance business generally in Peru con
tinues to prosper is clear from the figures of other
offices for 1910, which are, in part, obtainable. It is
apparent, for instance, that the Rimac, which, as will
be seen above, dates from 1902, and has distributed
total dividends for the first five years of its life
amounting to 97 per cent., during the last year men
tioned (1910) succeeded in increasing its reserve
fund from £62,191 to £67,205, and paid a dividend
of 19 per cent., plus a previous dividend of 8 per cent.,
making 27 per cent, for the year. The Internacional

Lima : General Post Office.

BANKS 87
also considerably increased its reserve fund, and paid
10 per cent, in dividend.
It took a great many years to place banking upon a
sound and permanent basis in Peru, and for a country
of its size and remarkable natural wealth the lack of
efficient facilities must have acted as a great handicap.
Previous to the commencement of the movement in
favour of the establishment of the gold standard, and
at the time when political trouble was still prevalent,
there existed but one banking institution — the Bank
of Callao, which was a branch of the London and
Mexico Bank of South America. There was one native
institution, known as the Savings Bank, which was a
dependency of the Lima Public Benevolent Society.
In 1889 the Bank of Italy was founded, and in 1897
the Callao branch of the London and Mexico Bank
of South America (a most cumbersome name) was
merged into the Bank of Callao which had come
into existence, and from these two was born the
present Bank of Peru and London. Subsequently,
the German Transatlantic Bank established branches
at both Callao and Arequipa, and each of the three pre
viously mentioned houses opened a separate mortgage
section. To-day, by means of these establishments,
the banking business has gradually extended through
out the Republic, and the transactions carried on from
day to day have assumed considerable dimensions.
In general, the profits earned have been deemed satis
factory, although, by the laws of the Republic which
govern their operations, these institutions are deprived
— and very wisely, in the opinion of sound financiers
— of the resource of issuing notes payable to bearer
in coin and at sight. Furthermore, the banks must
contribute 5 per cent, of their annual nett profits to
the coffers of the nation. The relations which have
in times past existed between the banks and the

88

PERU OF THE TWENTIETH CENTURY

Government are referred to with some particularity
under Chapter VI.
The principal banks of the Republic at Lima showed
the balances of their commercial accounts and deposits
to be as follows at the end of December 31, 1910 :

London and Peru Bank 
Italian Bank
International Bank 
Popular Bank 
German Transatlantic Bank
Savings Bank (Caja de Ahorros) ...
Bank of Deposits and ConsignmentsTotal

£P2,546,172.708 628,717.889 172,519.923
334,945.166
1,281,458.482 457,995.669 208,815.491
£P5,630,625.328

These figures show an increase of £Pl, 285, 980. 755
over those of the previous twelve months (1909).
The published profits of the different institutions
have been declared as follows :

1909.

1910.

London and Peru Bank 
Italian Bank
International Bank 
Popular Bank ... ... 
Savings Bank
Bank of Deposits and Consignments ...

£P.
74,781 19,289 7,555
17,976 5,417
14,701

£P.
75,68220,500 9,040
18,841 4,335
14,399

The Bank of Peru and London was founded in Lima
in June of 1897, its original capital being £200,000.
It is, as stated, a fusion between the Bank of Callao
and the Bank of London, Mexico and South America ;
the London office is in Gracechurch Street, E.C.
A few years after its foundation the capital of the
bank was increased to £500,000, and the reserve fund
amounted to £275,000. The shares of the bank have
been quoted upon the London Stock Exchange since
1907 ; and, commencing with that year, the institution
had established another bank in La Paz (Bolivia),

FINANCES 89
called the Bank of Bolivia-London, the capital of
which is £1,000,000. As will be observed from the
illustration which is given elsewhere, the Bank of Peru
occupies an extremely handsome and commodious
building — in fact, quite the most palatial commercial
premises. Its daily business amounts to something
like £100,000. The officials, from the President down
wards, are both enterprising and courteous, especially
towards foreigners bearing letters of introduction.
Peru has so recently emerged from a state of
monetary restriction that it would be hardly reasonable
to suppose that the people — by which I mean the
working classes and labourers — even if they naturally
were of a saving disposition, would be able to put by
anything of their earnings. Thus Savings Banks are
institutions which have but little vogue in the Re
public. Nevertheless, there is one such bank, Caja
de Ahorros, and it has met with a fair amount of
success, if one may judge from the fact that it has
established one or two branches. We have in France
an example of the rapidity with which the peasant
class can not only recover from wars and revolutions,
but rise superior to political and economic crises.
The same has undoubtedly proved to be the case
with Peru.
Few countries in the Old World or the New have
undergone more severe financial stress than Peru ; but
whereas misfortunes generally attend new countries
in the days of their juvenescence — teneris, heu, lubrica
moribus a3tas ! — evil times came to Peru when it was
merging upon the adult stage ; and, therefore, perhaps
the better able to withstand the shock. However, out
of evil cometh good ; and the lessons which were
learned in those distressful days have been taken
seriously to heart, with the result that Peru is to-day
financially stronger than ever it had been previously.

90

PERU OF THE TWENTIETH CENTURY

When the independence of the Republic was pro
claimed in 1821, gold and silver coins were circulated
with full value as legal tenders, and in the following
year (1822) a new currency was coined both of gold
and silver, with the same fineness and weight as the
Spanish money. This coinage continued to circulate
as legal tender until 1836, when, by reason of the
Peru-Bolivian Confederation, Bolivian money, although
of inferior fineness, was admitted into Peru and accepted
as of the same value as the native currency. This
mistake was, as we have seen, one of the prime causes
of the subsequent heavy losses to trade and to the public
wealth in general.
In 1863 a further new law was passed, reforming the
monetary system, which included the establishment of
the decimal coinage and the double standard of gold
and silver. The silver sol was recognized as the
monetary unit. The coinage of the new system was
as follows :

Name of the Coins.

Weight
in Grammes.

Diameter in
Millimetres.

Value in
Cents.

Silver coins :

Sol 

25

37

100

Half sol 

12-5

30

50

One-fifth sol

5

23

20

One-tenth sol (diner o) ...

2-5

18

10

One-twentieth sol (half

diner o)
1-25
15
5
Gold coins :
Value in Sols.
Gold sol 
32,25804
35
20
Half gold sol 
16,12902
28
10
Quarter of sol ...
8,9451
23
5
Tenth of sol
3,2258
19
2
Twentieth of sol
1,6129
17
1
In 1872 yet another law was passed altering the
gold coins, limiting the coinage to gold sols and fifths of
gold sols ; but as the law fixed no legal value to the
COINAGE 91
gold coin, it became de facto demonetized, so that
silver remained the only monetary standard, thus
abolishing bimetallism and introducing monometallism
of silver. This condition lasted until 1897, when the
gold standard was implanted; and since then there has
been but one alteration in the monetary system of the
country, which stands to-day as follows :
The Peruvian pound — and which is equal in all
respects to the English pound — is the monetary unit.
It consists of a gold coin, the diameter of which is
22 millimetres, with the weight of 7 grammes 988 mil
ligrammes, and a fineness of 0-916f millesimals; the
half-pound (equal in value and appearance to the
half-sovereign) has the same fineness. By a law issued
in 1906, the minting has been authorized of gold coins
equivalent to the \ part of a pound.
The old silver coins of Peru are used in the character
of an auxiliary currency as sub-multiples of the Peru
vian pound — viz., the silver sol, with a weight of 25
grammes, and equal to 100 centesimals of the sol; the
fifth of a sol, with a weight of 5 grammes, equal to
20 centesimals ; the tenth of a sol, with a weight of
2 2 grammes, equal to 10 centesimals ; and the twen
tieth of a sol, with a weight of 1 J grammes, equal to 5
centesimals The fineness of all these silver coins
Copper money, which is likewise only an auxiliary
currency, consists of coins of y^rj and T^ parts of a sol,
and according to law is only legal tender up to the
sum of 20 cents.
The first piece of money coined in Peru was in 1557.
It was an ugly and clumsy effort, irregular in shape,
and marked upon each side with a cross, made
apparently by sharp blows from a hammer. In 1565
the first mint was established on the selfsame spot
which is occupied by the present edifice.

92 PERU OF THE TWENTIETH CENTURY
In 1572 the coining of money was transferred to
Potosi, the greatest silver-producing mines in the world,
at that time ; but when the still more wealthy Cerro de
Pasco mines were found, Potosi was deemed unworthy
to retain the mint, so that it was again transferred to
Lima. This structure was destroyed by the earthquake
of 1746, and rebuilt in 1753, and to-day it forms one
of the handsomest buildings in the Capital.
The number of silver coins stamped in the mint
under the Viceroys, exceeded 400,000,000, and they
were always accepted throughout Spanish-America on
account of their exactness of both weight and fineness.
The gold and silver coins still turned out are beautiful
specimens of the engraver's art.
During last year (1910) the National Mint of the
Republic coined the amount of £52,859, in units
and fifths as follows : £47,076 (Libras Peruanas)
and 28,915 fifth-pounds (£5,783).

CHAPTER VIII
Education — Lima University — Number of schools — Native schools — Com
merce and Agriculture — Arequipa University — English schools —
Peons as pupils — Literary societies — Lima Geographical Society —
Learned associations — Theatres — New Municipal Theatre — Peruvian
press — Notable journals — English newspapers in South America —
" Peru To-Day."
The Department of Lima, from many points of view,
is by far the most important, educationally speaking,
in the country. It has an area of nearly 35,000
square kilometres, and a population of some 300,000
inhabitants. Lima, the national capital, is also the
capital of the Department, and is the seat of the
University of San Marcos, the Engineering, Agri
cultural, Industrial, and Normal Schools, and a
number of colleges of secondary instruction. The
Republic has four universities in all — Lima, Cuzco,
Arequipa, and Trujillo.
The Department contains some 250 primary schools,
which are supported and administered by the Govern
ment. These schools are under the supervision of
fifty-eight district inspectors, six being provincial and
one departmental. The primary schools of the Con
stitutional Province of Callao are also subject to the
control of the departmental inspector for Lima. The
appointment of the last-mentioned for Lima and Callao
is one of the most important educational posts in the
country. This is true not only with respect to the
responsibilities which it involves, but also with respect
to the opportunities which it offers.
93

94 PERU OF THE TWENTIETH CENTURY
The Government has of late months transferred to
this position Mr. Joseph B. Lockey, from the Depart
ment of La Libertad. Mr. Lockey began teaching
when he was sixteen years of age, and has been
engaged in educational work continuously since. He
has occupied positions of some importance both in
primary and in secondary school work, and he has
had valuable experience in educational administration
generally. He received the degree of B.A. from the
Peabody College, Nashville, Tennessee, U.S.A., and
the degree of M.A. from Columbia University. He
holds also professional diplomas in education from
the Florida State Normal College, and from the
Teachers' College, Columbia University.
Peru claims, and with good reason, to possess the
oldest educational establishment in Latin-America.
San Marcos University was founded in 1551, that is to
say, during the reign of Charles V. of Spain, who was
also, it will be remembered, the Emperor of Germany,
and the central figure in Europe during his eventful
life of nearly sixty years. To San Marcos were con
ceded the same distinctive honours as those enjoyed
by the great Spanish University of Salamanca, held in
those days to be the most celebrated educational
establishment in Europe. The royal grant was made
to the priors of the Dominican Order, the original
lecture-halls having been installed in the Monastery of
Santo Domingo ; but some twenty years later, in the
time of Philip II., an order was issued for the secu
larization of the University and its complete separation
from the convent.
Law is the most important branch of study pursued
at this University, and it leads in the promotion of
liberal education. It is directed by a Council, consist
ing of a rector, a vice-rector, a secretary, and a dean,
and a delegate from each Faculty. The present rector is

UNIVERSITIES 95
Dr. Luis F. Villaran, who succeeded in 1905, replacing
Dr. Francisco Garcia Calderon.
Arequipa is the seat of a University, a National
College of Secondary Instruction, a Normal School for
women, and of a number of good private schools, as
well as of the Harvard University- Observatory. In
the whole Province of Arequipa there are about
seventy-four public schools, which may be considered
a very fair proportion, considering the entire popula
tion of the Department amounts to no more than
115,000. The city of Arequipa has 70,000 inhabitants.
The National Government has latterly appointed
a young American as inspector of all these educa
tional establishments — Mr. Joseph P. McKnight,
who has also under his supervision the primary
schools of the Province of Islay, of which the port of
Mellendo is the capital. Mr. McKnight claims to
have had over twenty years' experience in educational
work, and he holds a master's diploma from the
Teachers' College of New York, U.S.A.
It is noteworthy that in the very stronghold of the
Incas — the famous and beautiful Cuzco — is established
one of the Republic's most important seats of learning,
the Cuzco University. Its ancient cloisters still re
sound with the merry laughter of " young Peru," as it
hurries and clatters over the venerable tiles of its
paved courtyards, while the surrounding houses have
shielded such notables of learning as Gorcilaso de la
Vega, the great historian ; Espinoza, Perez, Heros,
Medrano, Antonio Lorena, and, more recently, David
Matto and Narciso Arestegui. A month's stay in
Cuzco to study its ruins and to visit its monuments
affords one of the most liberal educations in Peruvian
history that one can hope to attain.
The Technical School of Commerce was the first
establishment of its kind in Peru, and dates back

96 PERU OF THE TWENTIETH CENTURY
about twelve years. Many of the most prominent
firms and banks in Lima make a point of drawing
their clerks and assistants from this school, the usual
course of study being three years, after which the
pupils receive certificates, which often prove very
useful in their search for employment. The principal
is Dr. Perla, and he seems to have introduced a highly
successful system of training the youthful mind in
the direction of commercial utility.
The National School of Agriculture is the creation
of a former Minister of Fomento — Seiior Eugenio
Larrabure y Unanue, who established it in June of
1902. He is now the Vice-President of the Republic,
but continues to take the keenest interest in the
conduct of this excellent institution. The pupils are
offered a sound theoretical and practical training in
all of the various branches of agriculture and veterinary
subjects. Fairly " stiff" examinations are held, and
certificates and diplomas are granted.
The School is situated in the centre of a farm
covering 600 acres, near the capital of Lima, and
the house is a fine two-storey building, capable of
accommodating 100 pupils and their attendants.
There are many well-designed and efficiently equipped
laboratories, a library containing many English
volumes, as well as several private cabinets and
recreation rooms. The Director is Mr. George Van-
dergehm, who has been in office since the foundation.
He is supported by a very capable teaching staff,
all classes of study — agronomical, engineering, botany,
zoology, chemistry, entomology, political economy,
and agriculture — having capable and expert masters
to conduct them. The English master is Mr. J. C.
Frederic Blume. Much useful work is being done by
this academy, and some very brilliant pupils have
been turned out by it.

COLLEGES AND SCHOOLS 97
Among some private educational establishments is
the Anglo-American School in Lima, which is main
tained by the Rev. W. Duncan and Mrs. Standfast, who
also receive some of the pupils as boarders in their
own house.
There is an English Commercial School established
in Callao, which was founded four years ago by the
" Centro de la Juventuado Cat6lica," of Lima. At
one time the number of pupils reached 320, but
indifferent management sufficed to reduce the average
considerably. Latterly, however, a new direction
seems to have improved the conditions, and under
the supervision of the Marists, a brotherhood of
Christian educators, the pupils are increasing in
number and also in efficiency. Most of the teachers
have been connected at some time or other with
education in England, the United States, France,
Italy, and Spain. About one-half of the text-books
used are in English, and much attention is devoted
to teaching that language thoroughly.
Towards the middle of last year (June, 1910), the
Government created a new educational commission,
composed of the ablest men in the country. At that
time no fewer than five of the more important among
the United States were at work upon the codification
and preparation of new educational laws, and upon the
same principle in practice was based the reformation
of the Peruvian educational system. The existing
Organic School Law of Peru was enacted in 1901. A
second important decree was passed in 1905, in which
some strikingly drastic reforms were comprised. These
provisions have, however, been since found to be too
drastic in some respects and too deficient in others ;
hence the necessity for a complete revision of the
system in force. All of the members of the Com
mission are Peruvians, with the exception of the
7

98 PERU OF THE TWENTIETH CENTURY
Secretary, Dr. H. E. Bard, who is an American, having
been a student of Administrative Sciences under
Professor Goodman, in Columbia University.
By an Executive decree of December 17, 1909, it is
provided that the English language shall be taught in
all the national schools of Peru.
That the average native is by no means as dull or
as stupid as some people imagine, nor as dense intel
lectually as several writers upon Peru have audaciously
asserted, is proved by the statement made by Dr. Harry
E. Bard, the Director- General of Primary Education,
who has said : " I will take a Peruvian child of six
years of age, teach it for three years at the side of one
from the United States — who has naturally enjoyed
all the advantages over the former by reason of speak
ing the language which it is learning — and by the end
of the time mentioned, I will have both upon the same
footing of preparation."
Among so cultured a class as the better-bred
Peruvians, it seems but natural to find a strong
literary and artistic element, and it is doubtful whether
any Latin -American city can offer more in this
direction than Lima. The race is a literary one ;
in fact, so close has been the attention paid to study
and culture, that the Peruvians have by some his
torians been described as effeminate. It is a question
whether this characteristic has been derived from the
high-born and well-educated Spanish ancestry or the
Quechuas' native blood ; perhaps it may be attributed
in part to both.
While the Spaniards, as we know, represented all
that was brave but cruel, all that was artistic and
elegant but callous of human suffering, the Quechuas
were a thoughtful, melancholy race, much given to the
ornamentation of their monuments and the elaboration
of their artistic occupations. Their descendants to-day

Lima : La Plaza, one of the most beautiful public squares in South America.

LITERATURE 99
naturally find more ample opportunities for indulging
this artistic temperament than under the tyrannical
government and persecution of their Spanish con
querors. The Peruvians, if they have not produced many
notable contributions to literature, are avid readers of
other Spanish, French, and often English publications.
That they nevertheless possess much ability as writers
is shown by the often striking and powerful articles
which appear in the daily and weekly press, while
Peruvian orators, even amongst the youngest of the
men — in fact, some who are mere boys — are frequently
to be met with. The Spanish language lends itself
readily to descriptions and expressions very much
more ornate and extreme than can be employed in the
Anglo-Saxon tongue ; and the extravagance of the
diction used, although it may strike the Northerner as
somewhat absurd at first, is, nevertheless, singularly
agreeable when the real beauties of the Latin tongue
become better appreciated by a closer acquaintance
with those who speak it.
Most of the daily papers published in Peru are
distinguished for the moderation of their tone, the
brilliancy of their editorials, and the fulness of their
cable and telegraphic services. Upon occasions per
haps of extreme political excitement some of the
more "yellow" among the papers may break away
from the usual restraint, and emulate the tactics of
the — for instance — New York and Radical London
press ; but they never could, under any conceivable
circumstances, equal either in personal vituperation
and inventive audacity.
There is an immense quantity of scientific literature
issued periodically in Lima, which may be considered
the literary centre of Peru, but much of this never
travels beyond the confines of the Republic.

100 PERU OF THE TWENTIETH CENTURY
Printing was first introduced into Peru in 1567,
at the time of the coming of the Jesuits — that is to
say, some thirty-one years later than the first press
introduced into Mexico — namely, in 1536. The
famous University of San Marco, to which reference
is also made as a seat of learning, had already been
established in 1551, ten years after the death of
Francisco Pizarro. The spread of education was very
slow, being, indeed, suppressed, as was usual among
the Spanish priests of those days. In spite of this
fact, libraries and scientific institutions were brought
into being, if but very gradually, and to-day Lima
boasts of many excellent institutions of this character.
The National Public Library was founded in 1822,
and still maintains its position as one of the most
celebrated in South America. Unfortunately, the
contents of this institution were greatly damaged
by the vandalic conduct of the invading Chilian
armies in the years 1882-1884. These Goths not
only ruthlessly destroyed many valuable and priceless
works, but used the building as barracks !
A loyal Peruvian named Ricardo Palma endeav
oured to restore the library to something like its
former position, but his efforts were only partially
successful, since nothing could be done to replace
the priceless manuscripts and unique books which
had been torn up and burned as fuel for the Chilians'
fires. This was really a matter of history repeating
itself, for the Chilians committed the same unpardon
able outrage upon their Spanish cousins, and upon
posterity, as the fanatic Archbishop Zumarraga had,
some three centuries before, perpetrated upon the
archives left by the interesting Aztec race in
Mexico. The capital possesses a Geographical Society, which
has done some highly important work in the explora-

SOCIETIES 101
tion and description of the enormous territories of the
Republic, and the President of the Society showed
me a map that the Society then had in preparation,
and which had been some years already in hand.
It will doubtless prove to be the most complete and
most authentic map that has ever been published of
Peru and the neighbouring Republics.
There is also an Historical Institute, which investi
gates and issues reports upon the early Inca and
Aymara civilizations, of which so much abundant
material exists. Additionally, there are societies,
possessing large and representative memberships,
relative to medical, legal, engineering, music, mining,
literature, agriculture, and other subjects. Many of
these learned societies have their own houses or rooms,
while others meet at the rooms of one another, or
at public halls. The Government does much to
encourage these associations, and, whenever any
financial assistance is sought, it is but seldom with
held. In connection with the more thorough ex
ploration of the country, the Government has been
particularly interested, and the several individuals
who have applied to it for guidance and aid have
been abundantly satisfied with the response made.
The Lima Athenaeum has existed since 1877, when
it was known as the " Literary Club," changing its
title to the broader one of " Athenaeum " ten years
later. It occupies handsome and comfortable premises,
and the Government contributes a subsidy to its
upkeep. The Technical Board of Valuations is composed of
a number of engineers, architects, and land-surveyors,
whose names are incorporated in an official register
of real estate. The Society has stringent rules as to
membership, and it has been the means of several
very important estimates being made for public works

102 PERU OF THE TWENTIETH CENTURY
and valuations. The public may obtain, at reasonable
fees, expert information upon all such matters.
The Technical and Industrial Institute of Peru was
established by the Government in 1896. It is com
posed of the principal members selected from all the
other Societies of a technical or industrial character,
and it really constitutes a " Union " of these bodies.
The objects of the association are to protect and
encourage the development of the national wealth,
to act for the Government as a consultative board, and
to aid the public in regard to information and advice
upon most technical and industrial, but not com
mercial, undertakings. The Government also makes
a contribution annually to the funds of this Society.
Among other associations are The Permanent
Exposition of Machinery and Manufactures, a kind
of Royal Agricultural Society without the " Agri
culture "; The Lima Chamber of Commerce, The
Mercantile Exchange, and several smaller concerns
of a similar character.
A branch of the Young Men's Christian Association
has lately been established in Peru, mainly upon the
suggestion of the Peruvian Consul-General (Mr.
Higginson) at New York. The idea was at once
readily approved by President Leguia, the Rector
of the University of Lima, and the Minister of
Fomento, as well as by a large number of other
prominent men. A capable General Secretary has
been appointed to develop the work, with Lima as
his headquarters.
In common with all members of the Latin- American
race, the Peruvians dearly love the theatre and the
opera. With their strong partiality for such forms
of amusements, it is strange to find the Capital possess
ing for a great many years but one single theatre.
This had been erected in the reign of one of the last

PLAYHOUSES 103
Viceroys, and was naturally devoid of all conveniences,
and very deficient in accommodation. In the end it
found its grave in a fierce conflagration, and few could
have regretted its disappearance. Then the Muni
cipality put up a temporary wooden structure capable
of seating about 1,600 spectators. To-day there are
several notable places of amusement in Lima, and others
in different cities of the Republic, while in practically
all the towns one can spend hours at the cinemato
graph shows which abound, and which have secured
the same remarkable hold over the public of Peru as
those of the Argentine Republic, Uruguay, and Brazil.
Among the principal playhouses are the Politeama,
which is now the largest in Peru, holding over 2,000
people ; El Olimpo, which, of smaller dimensions, seats
about 1,400 ; a Chinese theatre, where the children
of the Celestial Empire give their weird and frivolous
performances ; and a bull-ring holding easily 8,000
spectators. A cock-fighting arena — or, as it is called,
a coliseum — is very well patronized by the lower
classes, who always seem to find money enough to lose
in betting upon their favourite birds. The Jockey
Club have built a handsome Hippodrome upon a
piece of ground belonging to the School of Agricul
ture, and here are held some interesting meetings,
reminiscent of Hurlingham and Ranelagh.
The new Municipal Theatre, which accommodates
2,000 spectators, should be a great attraction, since
most of the travelling companies, dramatic and
operatic, which now make South America a part of
their regular touring itinerary, should visit Lima
during some part of the year. No company could
wish for more discriminating or appreciative audiences.
No press of South America has been accorded
greater or more deserved praise than that of Peru.
Even critics who totally disagree with their political

104 PERU OF THE TWENTIETH CENTURY
opinions — which is but natural in a country where free
expressions of thought are not only permitted, but
encouraged — agree, that for dignity of expression and
purity of motive the Peruvian newspapers are almost
unique in Latin- America.
I suppose that there must be something in the
gentle Elia's lament that " newspapers always excite
curiosity, and that no one ever lays one down without
a feeling of disappointment " ; but in regard to the
majority of the Peruvian news-sheets one certainly
gets full value for the small coin which has to be
expended for their possession, if only in regard to the
admirable cable service and the full and inland tele
graphic news which they contain. The illustrated
papers, weekly and monthly, will compare most favour
ably with the best of the English periodicals ; and in
most cases their literary contributions stand upon a
decidedly higher level of merit.
The oldest of the daily papers is El Comercio, which
was founded in the year 1839. It was this journal
which strongly advocated the abolition of slavery
in 1850-1855, and it required a great deal of moral
pluck to preach such a mission in Peru — or, indeed,
anywhere in South America — in those days. La Prensa
is another very powerful paper, both morning and
evening editions being issued. El Bien Social is a
clerical organ, and very carefully edited. El Liberal,
whose opinions are expressed by its name, and Diario
Judicial, are both regarded as high-class publications.
Of weekly papers there are a great variety, among the
best being Prisma and Actualidades. The foreign
colonies are partly represented by different weekly
editions ; but, as yet, no English weekly paper has
succeeded in maintaining any but a precarious exist
ence. Of monthly organs there is also an immense
selection, practically every social institute having its

THE PRESS 105
own particular exponent. Thus, we have La Revista
Pan-Americana, El Boletin y Registro Oficial de
Fomento (a Government publication of great value
to those who would follow the commercial progress
of the Republic as officially portrayed) ; El Boletin
de la Sociedad Geogrdfica de Lima; El Boletin del
Instituto Histdrica del Peru ; del Sociedad Nacional
de Mineria ; del Sociedad de Agricultura ; del Sociedad
de la Indiistria ; del Academia Nacional de Medecina ;
La Cronica Medica; El Monitro Medico; La Gazeta
Cientifica ; El Boletin Escolar ; La Gaceta Comercial ;
Boletin de Minas ; La Revista de Ciencias ; Boletin del
Cuerpo Tecnico de Trasaciones, and numerous others.
El Callao is a daily of much importance circulating
in the Port of that name ; while in the Provinces the
following may be accepted as the leading organs of
their respective communities :
Cuzco, El Comercio (daily) and El Cuzco (weekly) ;
Huanuco, La Paz (weekly), Mollendo and El Puerto
(dailies) ; Arequipa, La Deber (daily) ; Huacho, El Eco
(weekly); Huaraz, El Correo de Ancachs, LaEederacidn,
and La Justicia (all weeklies) ; Piura, La Nueva Era, La
Revista del Norte, La Industria and El Comercio (all
weeklies) ; Iquitos, Loreto Comercial (daily).
I have often asked which was the first English
newspaper to be established in Latin-America, but
I have never been able to find out with certainty. I
believe, however, that it would be correct to award the
palm — if, indeed, it is a " palm," and not a pillory,
which should be awarded to some of the discreditable
sheets which pass as "British newspapers" in Latin-
America — to a paper called The Cosmopolite, started
in Buenos Aires in 1825 by an American named
Hallett. Then, the following year came The British
Packet, a much better name and an infinitely better
paper. The Commercial Times appeared in 1862. All

106 PERU OF THE TWENTIETH CENTURY
of these were Buenos Aires ventures. In Panama, the
Star was issued in 1849. These sheets seem to have
been the earliest English publications ; at least, they
are the only ones which I have been enabled to trace.
Peru has been fortunate in late years in having
an eminently sound and literary newspaper — or rather
magazine — one which is as skilfully edited as it is
handsomely illustrated. Peru To-Day has now attained
an influential circulation, reaching far beyond the
confines of the Republic. The editor is a cultured and
talented American, Mr. John Vavasour Noel, who has
been trained in a thoroughly practical school — a school
which " observes and thinks." The assistant-editor is
Mr. F. E. Ross, an equally capable and clever journalist.
There can be no question that Peru To-Day, which
is issued monthly in Lima, affords a reliable mirror of
the commercial and industrial progress of this Republic
from month to month ; and a file of this neat and
admirably printed publication — which misses nothing,
and neglects nothing which can be regarded as coming
within its particular scope — will be the best index that
could be found for future historians of Peru.

CHAPTER IX
Lima, the Capital — Description of city — Climate — Earthquakes — House
decoration and architecture — Public places — Avenues — Parks —
Transportation — Charitable institutions — Hospitals and asylums —
Suburbs — Miraflores — Chorillos — Bellavista — Destruction by Chilian
troops — Bathing — Cruelties of war.
There are in South America three cities in particular
where one can live, and live with every comfort and
convenience. These are Buenos Aires, in Argentina ;
Santiago, in Chili ; and Lima, in Peru. I think, were
I to be compelled to make my choice, I would select
the last-named, since it is, to my mind at least, the most
restful and the best regulated, from a police and
municipal point of view, of any city south of Panama.
It is, moreover, a remarkably beautiful city, on account
of the many old Moorish relics and well-preserved
buildings of the Spanish times. The number of its
official buildings and public parks to-day is excep
tionally large, and they must have been almost unique
in point of elegance in the olden days.
The configuration of the city of Lima, which dates
from January, 1535, when it bore the name of "Ciudad
de los Reges " (the City of Kings), is very irregular,
and somewhat in the shape of a triangle ; the base
rests on the river, which divides it into two parts. The
original extent of Lima was 22 cuadras or squares,
from east to west, and 14 from north to south.
Its present area exceeds 15,000,000 square Castilian
varas* and its aspect is somewhat changed from, say,
* Vara=& rod, or pole = 5^ yards, or 16J feet.
107

108 PERU OF THE TWENTIETH CENTURY
ni>ty years ago, when it was surrounded by strong
walls, which had been first erected in 1683, during the
Viceroyalty of the Duke de la Palata. The wall was
only demolished in 1870.
Although exposed to the winds from the south and
west, the city is well sheltered by the mountains on
the north and east. These latter are spurs of the
great chain of the Andes, which run nearly north and
south for twenty leagues to the east of the Capital.
Westward the city commands a view of the Pacific
Ocean ; to the south-west one can see the island of San
Lorenzo ; and to the south are visible the Morro Solar
or Morro of Chorillos.
There are only two seasons recognized in Lima, and
these are clearly defined — the summer and the winter.
There blow here many, and sometimes very aggra
vating, winds ; but it is a mistake to say, as some
chroniclers have done, that it "never rains" in the
city. I believe it would be more correct to assert that
continuous rains are unknown, but towards the end of
April or the beginning of May the garuas — a very fine
rain, resembling our Scotch mist — sets in, and con
tinues until November, with more or less intermission.
It is very disagreeable, and not sufficient to necessitate
the use of an umbrella, but quite capable of producing
a moist and sticky feeling about the face and hands.
During the rest of the year these precipitations occur
only at the changes of the moon. In summer real
rain falls, but in heavy showers of very brief duration.
It can be intensely hot and as intensely cold at times.
The visitor to Lima must be prepared for earth
quakes. The statement looks alarming, but, as a
matter of fact, it has been many years since any serious
seismic disturbance took place — a fact which does not,
of course, render a repetition any the more improbable,

BUILDINGS 109
since Nature fails to maintain any degree of regularity
in these matters. I find upon searching records, that
the worst visitations have been those which occurred
in 1630, 1687, 1746, 1806, and 1848. Upon an
average there are eight " quakes " — mild visitations of
but little moment — in the year. The shocks usually
pass from south to north, following the direction of the
chain of mountains.
Perhaps one of the most charming aspects of Lima
is that which is afforded by the exquisitely carved
Moorish balconies, many of which still remain, and are
carefully maintained, even the poorest thoroughfares
possessing their share. One also sees many modern
houses with their old-time " bird-cage " windows ; but,
generally speaking, these have been replaced by
modern glazed windows. While the streets do not
run in the direction of the four cardinal points, they
mostly intersect each other at right angles, forming
square blocks of houses, called manzanas. As in most
Latin- American cities, the rows of buildings are almost
equal as regards the number of houses which they con
tain, there being from thirty to fifty doorways upon
either side of the street. Were it not for the many
flat roofs — the small amount of rainfall rendering
peaked roofs unnecessary — the city would present a
very handsome appearance from an elevated position,
with its numerous brightly-tiled church roofs and
steeples, its many magnificent Government edifices,
and the several semi-tropical parks and open spaces
which exist. A goodly proportion of the private
houses also have their well-kept and be-treed patios,
with inner gardens, which lend additional colour to
the scene.
Of modern, as of old, public buildings Lima pos
sesses many beautiful specimens. The first edifices
which were erected by Pizarro consisted of the

110 PERU OF THE TWENTIETH CENTURY
Cathedral, the Government Palace, the Archbishop's
Palace, and the City Hall. The handsome church,
much modified, still stands upon the same spot, and
contains the embalmed body of its pious, but piratical,
founder. The Government building, modernized in
every particular, stands as an official edifice, and has
been occupied continuously from the year 1535. The
first tenant was the great conqueror Francisco
Pizarro himself, some forty-three Viceroys following
him, of whom the last was Don Jose de Lacerna, who
capitulated in 1824 to the Republican Army after its
victory at Ayacucho.
The chronicler is tempted to tarry lovingly in
describing this, perhaps the most interesting of all the
South American capitals ; but, unfortunately, the
insistent limitations of space and more prosaic require
ments of to-day forbid. One is inclined to commit the
error against which Tacitus warns us, Vetera extollimus
recentium incuriosi. Let me, therefore, proceed —
though unwillingly, I admit — to speak of Lima as it is.
Peru's modern Capital boasts of a population ex
ceeding 150,000 souls. Among the residents will be
found some of the handsomest and straightest-built
men, and undoubtedly some of the most beautiful
women, to be found in South America. It is quite an
exception to meet a really plain Peruvian, and almost
as seldom does the traveller encounter a poor one.
The city is divided into five quarters, comprising
ten districts, which, again, are subdivided into forty-
six barrios. Of these different districts, some four are
merely suburbs or outlying parishes, the principal
divisions of the city being as follows : San Sebastian,
San Marcelo, El Sagrario, Los Huerfanos, Santa Ana,
and San Lazaro.
The streets of Lima are what we Europeans should
consider rather narrow, measuring some 30 to 35 feet

Lima : Interior of Cathedral (first built in 1541 ; rebuilt in 1758).

The Cemetery at Lima.

PUBLIC SQUARES 111
across, but they afford pleasant shade from the hot
sun, which was the one thing which prompted the
Spaniards to thus construct them. Formerly, a
surface-drainage and sewerage rendered Lima any
thing but pleasantly odorous ; but to-day there has
been a very good underground sewerage system intro
duced, and with which all of the houses within the
city boundaries are connected.
In no South or Central American city will you find
a handsomer open space than the Plaza Mayor, which
occupies the very centre of Lima. Flanking this
large square is the imposing Cathedral, and which
occupied ninety years in the building. On the west
side is the Municipal Palace, and on the north side
stand the extensive range of buildings known as the
Government — once the Viceroy's — Palace. The fourth
side of the square is occupied by private residences,
shops, and a large club building, all of which are in
keeping with the main structures, and have in colour
been mellowed by time into one homogeneous whole.
Magnificently kept gardens, with a wealth of tropical
trees and flowering-shrubs, occupy the centre of the
Plaza, and here, as in all Latin-American cities, fore
gather, of an afternoon and evening, the " rank,
fashion, and beauty " of the Capital — in the case of
Lima all three being admirably represented.
The space which was formerly occupied by the wide
and clumsy-looking adobe wall, built, as already
observed, in 1683, and demolished in 1870, is now
being utilized for some handsome boulevards, which
will soon entirely surround the city, and provide
thoroughfares for the use of riders, drivers, and
pedestrians. Already some of these arteries have been
completed and opened to public traffic, the Bolognesi,
the Grau, and others, forming a continuous paseo,
stretching from the river and passing around the city.

112 PERU OF THE TWENTIETH CENTURY
Yet another delightful driveway is the Avenida,
leading from the town of Magdalena to the city of
Lima, about three and a half miles in length. This
thoroughfare measures 125 feet across, and is shaded
by a quadruple row of palm-trees. Mention may be
made also of Avenida de los Descalzos (Barefooted
Friars) which skirts the banks of the river and forms
a wide public walk ; this is adorned at intervals with
handsome statuary representing the twelve signs of
the Zodiac, the intermediate spaces being occupied by
graceful urns, marble benches, well-kept flower-beds,
and brilliant green grass-plots. In length the avenue
is two-thirds of a mile, and it commences at the foot
of San Cristobal hill — altogether a very charming,
reposeful promenade at all times of the year.
Avenida Arco is a favourite " short-cut " leading
from the outlying districts to the city ; it extends
from the old stone bridge crossing the river to
the modern Balta bridge. The recently completed
Columbus Avenue is about one-third of a mile long,
125 feet wide, and it connects the Exhibition Square
with the Bolognesi Square, being built in the form of
the arc of a circle, and traversing the modern quarter
of Lima.
There are altogether some five-and-thirty public
squares to be found in Lima, which compare with the
sixty-seven churches. Of notable monuments there
are likewise a considerable number, the most con
spicuous being five which are known throughout
South America, and have formed the subjects of
postal-cards which have probably been sent to every
quarter of the globe. I refer to the mighty Columbus
monument, built of pure marble, which represents the
Genoese discoverer raising from the ground a poor
Indian woman, one of the many, probably, that he
ruthlessly sold into slavery ; to the bronze and marble

PUBLIC SQUARES 113
statue erected to Simon de Bolivar, the great Liberator;
the Dos de Mayo (" Second of May ") monument, com
memorating the defence made by the brave Peruvians
against the Spaniards in 1866 ; the Bolognesi monu
ment, dedicated to the memory of Colonel Francisco
Bolognesi, who lost his life in 1880 in the defence of
Arica Morro against the Chilian forces ; and, perhaps
the most beautiful of all, the San Martin statue, which
shows that great man proclaiming the independence of
Peru. There are several other monuments, but there
are none more inspiring than these.
Under a separate chapter I have referred to the
transportation arrangements in Lima, so far as the
tramways are concerned. There are likewise a great
number of well-equipped cabs and carriages. The
former are not only plentiful, and obtainable at all
hours of the day and at most hours of the night, but
the fares are extremely reasonable, and the Jehus
generally are a polite and an amiable class of public
servants. For instance, one may travel all round the city, and
within its limits, for 30 cents for either one or two
passengers ; three may travel for 40 cents, and four
for 50 cents, or, say, for a total of Is. Children under
seven years of age travelling with an adult are carried
free, other children being charged for at 10 cents, or,
say, 2jd. each. By the hour the charge is 1 sol (2s.), and
20 cents for every additional quarter of an hour. After
11 p.m. the fares are raised 50 per cent.
The many beautiful public parks and gardens of
which Lima is possessed may be seen to be tenanted
at most hours of the day. Besides the tropical trees
and flowering beds of the Plaza Mayor, where military
bands come to play admirably at certain hours and
upon most days of the week, there are the Zoological
Gardens, where, in addition to a great variety of wild
8

114 PERU OF THE TWENTIETH CENTURY
animals and birds, are found some magnificently kept
gardens ; the Botanical Gardens, containing specimens
of every tree, plant, and shrub known in Peru ; the
Parque Colon, fronting the Avenida, and a fashionable
drive known as Pas^o Colon, and also as the "Avenida
9 de Diciembre," which leads from the Bolognesi
Circle or Exposition Park, and thus forms a link in
the system of wide boulevards encircling the city.
The Parque de la Inquisicidn, which, bearing as it
does a somewhat sinister name reminiscent of Spanish
religious brutality and senseless persecution, forms
nevertheless a beautiful rendezvous ; the Alameda de
los Descalzos, noted for its exceptionally fine monu
ments and statuary ; the Alameda de Acho, the tree-
lined drive constructed by the Spaniards, and leading
to the famous Cerro de San Cristobal.
While very carefully tended and as carefully policed,
all of these places, being dedicated as they are to the
use of the public, are accessible at all times ; and no
officious interference is observable upon the part of the
custodians, such as one meets with from the same
overbearing class of menial in England and the United
States. I have upon no occasion observed any ten
dency upon the part of the public, on the other hand,
to abuse their privileges, and for the most of the
people it may be said that they seem to be as zealous
in preserving orderliness and maintaining spic-and-
span the appearance of their recreation-grounds as are
the Government or the municipalities which control
them. There is less litter from discarded paper,
broken bottles, and empty meat-tins than can be found
in any London or provincial pleasure-ground.
The Spanish- Americans are naturally a very hospit
able and warm-hearted people, and they seldom decline
to support their charitable institutions, or to dispense
largesse among their less fortunate brethren. In years

CHARITIES 115
past most of this public charity was conducted through
the instrumentality of the Church ; and it is even so
to-day to a limited extent. But there exist many
excellent institutions which are entirely detached from
the religious fraternity, and these are very well
supported by both the Government and by private
individuals. In several of the cities and towns there are found
institutions which are conducted and entirely sup
ported by private charity, and these under ordinary
circumstances, and in most countries, would be found
either under Government or municipal management.
There are, again, certain charitable foundations which
are assisted financially by the authorities, who also con
trol — by means of an official representative — all the
receipts and the expenditures.
The Lima Benevolent Society is an institution which
has effected some great amount of good, and which
compares most favourably with any other similar body
of philanthropists in either hemisphere. The revenues
exceed $1,000,000 annually, and out of these the
Society entirely supports the Second of May Hospital,
a modern institution which accommodates 1,000 patients
of both sexes. It also partially maintains the Santa
Ana Hospital for Women, which was founded in 1549
by the first Bishop of Lima, Monsignor J. Geronimo
de Loaiza, while it assists with finances and controls
the management of the Maternity Hospital, the
School of Midwifery, and the Military Hospital of
San Bartolome. The same society is responsible for
the management of the Insane Asylum, as well as
of two Orphan Asylums — one for foundlings and the
other for orphan boys — who are given a sound com
mercial and industrial education or put to some
useful trade.
The Institute Sevilla, founded from the funds derived

116 PERU OF THE TWENTIETH CENTURY
from the legacy bequeathed by Senor Jose Sevilla,
educates and clothes 100 girls, and teaches them occu
pations likely to be found useful in after-life. The
School of Medicine, which is mentioned more fully
in another part of this volume (see Chapter VIIL),
is another excellent institution which effects much
real benefit to the community.
Nowhere in Lima — and I am almost tempted to go
so far as to say, nowhere in the Republic of Peru — will
one come across the same kind of abject poverty and
the hopeless human misery that continually con
fronts one in the streets of London or New York,
or, indeed, in any of the large commercial centres
of England and the United States.
The noble human emotion of charity seems to be not
alone more common in this country, but its definition
to be more liberally construed. The philosopher may
tell you that indiscriminate alms-giving is the cause of
much mischief ; that it directly encourages vagrancy,
deceit, and voluntary degradation ; that it weakens
self-reliance, and, by thus demoralizing, keeps the
recipient on the downward course of professional
poverty resulting in absolute pauperism. To address
such an argument to a warm-hearted Latin- American
would be fruitless — he or she would fail entirely to
comprehend such casuistry ; and in all probability
would reply that full inquiries in every case of appeal
are impossible, and that in giving alms to their poorer
brethren they consider that they cannot be held
responsible for ultimate economic effects, which, at the
best, are purely speculative and the subject of widely
different views. You will never dissuade a Southerner
from seeking to help the poor ; and the Peruvians are
open-handed and warm-hearted to an unusual degree.
Lima is particularly fortunate in the situation and
character of its environs — possessing as it does a

ENVIRONS 117
number of pleasant and easily reached suburbs which
are yearly becoming more popular. Callao — scarcely a
choice place of residence, however — I have described ;
likewise its satellite, La Punta. But there are Mira-
flores — meaning " behold the flowers " — Barranco, and
Chorillos. The first-named is a picturesque little place,
situated in the centre of a large cove or inlet of the
coast, and receiving the full benefit of the agreeable
breezes which blow here for the greater part of the
year from the sea. The winds are from the south
west, and, as a rule, they are far from violent. On
some occasions they become tempestuous.
Chorillos is the Brighton of Peru, and, like our own
" Queen of Watering- Places," it rose from a humble
fishing village to the dignity of a fashionable watering-
place. Its former humble inhabitants — Indians — have
migrated from its now sacred precincts, and congregate
in a small and struggling village, some distance up the
mountain- side, and called " Alto " — or " High Peru."
The town of Chorillos has now about 1,200 or 1,300
residents. Before the war with Chile it was even
better patronized than it is to-day, some of the
houses, according to photos that I have seen, being well
appointed and most artistically built. But the Chilians
came as conquerors, and the same savage spirit which
prompted them to ruthlessly destroy the priceless
MSS. in the National Library at Lima induced them
to burn and destroy Chorillos, so that not a single
house escaped destruction or mutilation.
The town of Barranco straggles along the edge of
an uneven cliff, about 100 feet above sea-level, and
a covered decline leads down to the sea-beach where
delightful sea-bathing can be had. From the terrace,
which has been formed on the side of the cliff,
a clear outlook to sea, and occasionally some beautiful
sunset effects, can be enjoyed. There is also an hydraulic

118 PERU OF THE TWENTIETH CENTURY
elevator, not tinlike the Lynton and Lynmouth lift in
North Devon. Chorillos, however, is by no means a
cheap place to live in.
Anc6n is another agreeable small suburb, but
situated farther away from the Capital, being distant
some 38 kilometres. It is a bathing-place, and pos
sesses some very smooth and even sands which stretch
away for several miles. The town itself is ugly and
straggling, and the surrounding country extremely
bare of vegetation. But the climate is health-giving,
and many individuals who suffer from pulmonary
complaints can live in Anc6n when they cannot do so
in Lima. It is infinitely better than La Punta in this
respect, the atmosphere in that place being found
somewhat damp and humid.
Bellavista is situated some 2 kilometres east of
Callao, and was founded as a kind of temporary place
of residence after Callao and Lima had been com
pletely destroyed by the earthquake in 1746. It was
mainly occupied by shipping people ; and here also
were deposited the great stores of wheat which were
purchased from Chile to feed the starving people. The
original buildings no longer exist ; but others of a
more substantial character have been erected on the
site, and are connected with Callao and Lima by a
short branch of the railway belonging to private
owners. Once there was a handsome and commodious Govern
ment factory at Bellavista, but the Chilians destroyed
this, as they destroyed so many other things belonging
to the Peruvians — acts of archaic savagery which
nothing could, or ever can, excuse.
The Chilians, in waging their horrible wars, seem to
carry out to the letter the inhuman doctrine of that
other American — but " North " this time — General
Sheridan, who declared that " the main thing in true

DAMAGE BY CHILIANS 119
strategy is simply this : to first deal as hard blows at
the enemy's forces as possible, and then cause so much
suffering to the inhabitants of a country that they
will long for peace, and press their Government to
make it. Nothing should be left to the people but
eyes to lament the war." Such a lesson was that of
unfortunate Peru in 1881-1884.
Municipal affairs in Lima appear to be singularly
well-managed. The Mayor possesses a typically
English name, " William Billinghurst," and he is both
very popular and very enterprising in his official
capacity. He has been in office since January, 1909,
and at the time of his election he found the munici
pality in debt to the extent of £410,103. By the
month of February in the following year he had
reduced this amount to £367,412, and this year (1911)
it will be still further diminished.
Nevertheless, Mr. Billinghurst has been unable to
resist the overwhelming and irrepressible desire upon
the part of all Latin- Americans to build a " National
Theatre," and some considerable amount of money is
now to be expended upon this object. The new place
of amusement is to be erected upon the Plaza San
Juan de Dios, near to the terminus of the Lima-Callao
electric railway. The sum expended to acquire pro
perties which are found to stand in the way of the
new structure alone amounts to £30,000.
The revenues of Lima Municipality are approxi
mately between £100,000 and £105,000 per annum,
and the expenses amount to about the same.
Mr. Billinghurst 's father was an Englishman, and he
himself was born in Arica in July, 1851. He was
elected a Deputy in 1 8 7 8 to represent Iquique. In 1 8 8 0
he was appointed Commissioner of Defence, to study
the River Desaguadero and the Andine plateaux. He
fought in the battles of 1881-1885, and when peace

120 PERU OF THE TWENTIETH CENTURY
came he was appointed Consul-General of Peru at
Iquique (now Chilian). In 1895 he became Vice-
President of the Republic and a Senator. He is a
distinguished author of scientific works, some of his
publications having achieved European fame. He
makes a most excellent Mayor.

CHAPTER X
Cost of living — Rentals — Household expenditures — Wages — Domestics — ¦
Mary Anne's paradise — Native labourers — Japanese competition-
Austrian emigrants — Government encouragement — Sport and amuse
ment — Lima Jockey Club — Regatta Club — Football's popularity —
Lima Cricket Club.
The cost of living in Peru, compared with prices pre
vailing in Europe, is found to be decidedly expensive,
unless one knows one's " way about "; for here, as
elsewhere in the world, the stranger is frequently
exploited by the native or foreign shopkeeper, and the
still more enterprising landlord. To-day the neces
saries of life have advanced to a very high standard,
and the tendency is, if anything, to increase rather
than decrease. In Lima itself, hotel rates are from
20 to 30 per cent, in excess of what one would pay for
the same value of board and lodging in England or in
any European town — Paris and St. Petersburg, perhaps,
excepted. Had any traveller come to Peru in 1908, and had he
set up housekeeping on his own account, he would
have found a condition of things in existence rather
encouraging, in spite of the fact that even then prices
were some 15 to 20 per cent, higher than they had
been. At that time many of the shops were selling
off goods at very low prices, since most of them
were overstocked, the wholesale warehouses being
likewise choked and congested with European and
North American merchandise of practically every
121

122 PERU OF THE TWENTIETH CENTURY
kind. House-rents, however, remained high, in spite of
many new buildings going up in different directions.
Then followed a commercial and financial collapse ;
trade suffered a general set-back. Imports, as a con
sequence, were much restricted, and retail prices com
menced to again mount as these fell off.
To-day residents and visitors alike are suffering
from the action and reaction, and the cost of living is
found exceedingly heavy. The prices of some few
articles which prevail in the towns and coastal stations
alike are as follows : Sugar, which is grown in the
country, costs 24s. per quintal of 100 pounds, or, say,
2fd. a pound ; while in Liverpool the same article is
sold at 9 s. per quintal, or, say, at a little more than
Id. per pound. Fresh meat is so expensive that only the
well-to-do can afford to buy it more than once a
day ; fresh fish is hardly less so. Even rice, potatoes,
beans, maize, etc., grown in the country, are high; but
these form the ordinary food of the peon-class, and
must be purchased. As I have shown elsewhere, wheat
has to be imported, and this commodity, due to heavy
shipping freights and railway transport to the interior,
is put up in price by the retailer by some 50 per cent.
Rentals are nearly 40 per cent, higher this year than they
were, in spite of many new residences having been built
and the cheaper transportation rates to the suburbs. In
Lima a small apartment, consisting of two or three
rooms in a quiet and not too fashionable quarter, costs
£4 per month ; while a small separate house, containing
five rooms, a kitchen, and the usual domestic offices
(often without a bath-room), costs from £7 to £8 a
month. For anything more pretentious — say, a house
with from eight to ten rooms, a small garden, and the
usual modern conveniences — anything between £10
and £12 per month must be paid. Property-owners
calculate upon a rental of 10 sols (20s.) for each room,

Old Spanish Stone Bridge over Rio Vilcanota.

COST OF LIVING 123
exclusive of water rate, municipal rates, police rates,
public lighting, or electric light.
The following comparative table, showing the
advance in living rates in Lima and most of the other
towns in the course of some nine years (the difference
is very slight between the one and the other), may be
found of interest :

Expenditure.

In 1902.

In 1911.

Monthly rentals (see above)

£4:

£7 10s.

Wages (per month) 

Cooks, 12s.

Cooks, 22s.

Maids, 12s.

Maids, 23s.

Water tax (per month) 

4s. 6d.

5s. lOd.

Coal (per sack of 150 lbs.)

3s. 7d.

6s. 6d.

Beef or mutton (per lb.) 

6d. and 8d.

9d. and lid.

Pork (per lb.) 

6d.

lOJd.

Milk (pure) per litre = If quarts ...

4id.

6|d.

Fowls (each) 

2s. 6d.

3s. 2d.

Geese (each) 

Is. 8d.

5s. 6d.

Potatoes (per lb.) 

lid.

2R

Eggs (each) 

2d.

3d.

Other articles, such as ham, beer, wines, salt, coffee,
tea, lard, beans, butter, matches, chick-peas, lentils,
rice, and condiments, have advanced proportionately
between 40 and 100 per cent. On an average of nine
years, the increase shows an average of between 65
and 95 per cent.
Employment is comparatively easy to obtain
throughout Peru, and in Lima, Arequipa, Cerro de
Pasco, and other towns where Europeans or Americans
are found in any number, domestic servants are usually
at a premium. In fact, Peru may be termed " Mary
Ann's Paradise," and she knows it too. Clean,
domesticated, and faithful female servants are obtain
able all the same, for the ^eon-class, from whom they
are partly recruited, are very susceptible to kindly
treatment, and are usually as willing to enter the
service of a foreigner as that of a native. Having

124 PERU OF THE TWENTIETH CENTURY
already given the wages of this character of service, I
add the remuneration paid to other wage-earners.
Clerks and governesses, unless they are engaged upon
contracts in the Old Country, and have these contracts
duly vised by the British Consul immediately upon
arrival, are strongly cautioned to proceed with their
engagements very carefully. They stand but little
chance of finding casual employment, and even if they
do so, they cannot always feel certain of being
regularly paid.
The rates for clerks range from £250 to £350 per
annum, but, in view of the excessively high cost of
living, even the larger amount seems to be small.
Governesses of European birth are poorly paid, and
generally find that after providing for their personal
expenses they have but little left over from their
meagre salaries. Some German governesses, however,
whom I have met have expressed themselves as satis
fied with their experiences. These ladies manage to
live, and even to save, when women of no other
nationality could do either, and they appear for the
most part to be quite contented anywhere, provided it
is not in their own country. The German — male or
female — but seldom expresses any sentimental regrets
in leaving the Fatherland.
Carpenters make from 4s. 6d. to 10s. per diem;
masons, from 6s. to 12s. ; blacksmiths, from 9s. to 20s. ;
mechanics, from 9s. to 12s. ; painters and decorators,
from 8s. to 15s. ; coachmen and grooms, from 20s. to
35s. per month ; gardeners, from 25s. to 50s. per month
(in both these latter cases board and lodging must be
found, or the value added to the wages) ; electric-car
drivers earn 6s. per diem ; hotel porters, 5s. per diem
and their full board ; male servants in hotels or private
houses, from 30s. to 50s. per month.
While the Japanese are gradually making their

JAPANESE LABOURERS 125
influence felt commercially in most parts of the world,
they seem to have had a particular partiality for Peru ;
and these enterprising people have succeeded in estab
lishing a sound trading connection with the Republic.
There is a Consul-General — Mr. Tsuneji Aiba — who
speaks Spanish as fluently as he does English, which
is equivalent to saying like his mother- tongue. Mr.
Aiba asserts that there are over 7,000 of his country
men in Peru, and that every year the number shows
an appreciable increase.
It is only since 1899 that the influx commenced,
the great proportion — fully 80 per cent. — being men.
The majority of the Japanese labourers find employ
ment on the sugar estates, and I have seen many
of them at work in their plodding, serious way,
moderately reliable in regard to punctuality and
attention to their duties, but unapproachable and
forbidding from a social point of view. Few of them
will consent to undergo the privations and dangers
attendant upon the occupation of rubber-collecting or
cultivation ; but some few are to be found working
upon the cotton-fields.
The average rate of pay amounts to 1 sol (worth
2s.), about 1 yen of their own money per diem, and out
of this meagre wage they manage, by extreme frugality,
to save a sufficient sum to take them back to Japan in
a few years. If they would consent to work in the
rubber forests they would receive 5s. per diem. But
there many would die off very speedily. In Japan any
ordinary labourer can earn his Is. 6d. per diem, and
the cost of living is infinitely cheaper ; so that it is
rather difficult to understand why these emigrants
should come away so far from home.
Upon investigation, I learned that the Japanese who
had been imported into Peru were found very intel
ligent workmen, and there is some competition among

126 PERU OF THE TWENTIETH CENTURY
employers upon sugar estates, farms, and rubber-lands
for their services. Japanese are also employed as
domestic servants, restaurant waiters, carpenters, plas
terers, masons (but they cannot compare in these
capacities with the Italians), road-repairers, boat
men, gardeners, fishermen, dairymen, and laundry-
men. In Lima there are over 800 Japanese so engaged,
and in Callao there are about 150. In these two
cities the general employment which is followed is that
of barbers, the Capital possessing some 160 men and 7
or 8 women, and Callao 42 men and 2 women, all
of whom are hair- cutters and shavers. The Japanese
Consul-General gives me the following further parti
culars of the different occupations followed by the
Japanese in Peru : Small traders, 77 ; restaurant
keepers, 68 ; grocers, 45 ; carpenters, 54 ; and coal-
vendors, 19. Of factory hands there are between
30 and 40.
While, as I have observed, there are many em
ployers of labour who would not only like to see more
Japanese employed in Peru, but who have made every
effort to procure the necessary number of men from
the Land of the Chysanthemum, it appears that the
Japanese themselves are not as keen as they used to
be to sell their labour to Peruvian employers.
Many rubber-pickers have been brought from Japan ;
but the Government of that country have latterly
introduced so many restrictions and insist upon such
onerous contracts being entered into, that the em
ployers are unable to continue the introduction of this
kind of labour with any profit to themselves. Addi
tionally, they declare that the class of workers now
sent over are utterly without morality or rectitude,
that they are bad pickers, that they desert rapidly,
leaving the contractor with the cost of the importation

f

¦

1

i*

The Cathedral at Lima, built by Francisco Pizarro.

JAPANESE LABOURERS 127
and very little lucrative work to show as a set-off
against his heavy outlay.
Upon inquiring the reason — if this really be the case
— why any effort at all should -be made to introduce
Japanese labour in the rubber forests, I was informed
that the casual labour was found even worse, and the
Indian peons more difficult to deal with, being " ner
vous, suspicious, and unwilling to travel far from their
own native villages."
With the experience of the harsh and cruel treat
ment which some of these unfortunate beings have met
with at the hands of certain European employers, it is
scarcely surprising to hear of their " nervousness " and
" suspicion." No doubt the labour question in Peru
will be settled in course of time, as it has been in
South Africa, in the West Indies, in the Malay Penin
sula, and in Ceylon. If the employers understood
and practised the virtue of kindness a little more than
they do, much of the present trouble would not have
arisen. In Peru, as elsewhere throughout the Christian
world, the coming of the Japanese has not been re
garded with much gratification ; and there is reason to
believe that a strong popular movement would arise if
the immigration became very much more pronounced.
Further introduction into Peru of the Chinaman — who
is ever a more tractable and a less assertive individual
than the Jap, and whose bare word is more to be trusted
than the Jap's bond — has been already tabooed (see Ap
pendix). Latin- Americans, who are not, perhaps, the
most energetic workers on the face of the earth,
fear more active competition upon the part of the
yellow man, and resent his intrusion accordingly. Some
patriots of Peru — and especially those who cordially
dislike to work at all, and who never perform any kind
of labour if they can possibly avoid it — have already

128 PERU OF THE TWENTIETH CENTURY
raised the parrot cry, " Peru for the Peruvians !" and
" Down with cheap Chinese labour !" Among the
excitable and free-thinking populace, a battle-cry like
this would be certain to secure a certain number of
adherents ; and thus some trouble — not necessarily of
any great importance — might have ensued had Oriental
labour made any great advance, as it threatened to do
as soon as business became more pronounced with
the opening of the Panama Canal. But the wise
Executive Decree of May 14, 1909, prohibiting further
introduction of Chinese labour, effectually prevents
this from occurring.
A very much more desirable class of emigrants are
the Austrians. A citizen of that country, Herr Ritter
Othmar von Hauck, holds a concession from the Peru
vian Government to colonize a large area of ground,
extending to over 6,000 hectares of forest-land, and
which he has bound himself to distribute among 300
Austrian families, allotting to each of them about
20 hectares. The Government pays the third-class
passage of these people from a port in Europe to
Yuriman, situated on the Huallaga, an affluent of
the Amaz6nas, or Maranon. The travelling expenses
incurred on behalf of the emigrants from the port to the
settlement are borne by the concessionaire ; but these
are of little moment, since the distance traversed is
very slight. The concessionaire, on the other hand,
receives an advance of £20 for each family of at
least three persons, and he is bound to maintain,
during five years, the same number of families for
which he has received advances.
What the Government has done for this enterprising
Austrian, I feel it would be willing to do for any other
individual of any other nationality who presented an
equally acceptable proposition. The advantages of
such a concession are obvious, for in return for a trivial

SPORTS 129
expenditure upon his part, an outlay which is covered
over and over again by the contribution received from
the Government, he becomes the virtual owner of a
small principality, situated in a healthy and ex
tremely fertile region, and capable of almost unlimited
expansion. Where so many English people reside, there is
certain to be some attention devoted to sport ; and
I have found throughout Latin- America that it needs
only the slightest impetus to instil into the people a
sincere liking for manly sport, and that they pursue
it for sport's sake.
In Lima many kinds of open-air pastimes are
indulged in. The winter racing season is from July
to December, and many programmes are carried
through. The Jockey Club of Lima, which may be
compared for importance or affluence with the Jockey
Club of Buenos Aires, is a well-organized and well-
conducted institution, supported by the leading resi
dents, both native and foreign, the meetings being
considered as great social events. The President and
many of the Cabinet Ministers usually attend, while
several of the members maintain stables and enter
horses for the principal events.
The oblong track, situated near the Pas^o Colon,
measures 1,600 metres (about 4,900 feet), and the
grand stand, which is a modern erection, will accom
modate several thousands of spectators. Betting is
carried on upon the Pari-Mutuel system.
There is likewise the Union Regatta Club, which is
making some progress in popularity.
I was considerably amused to read, in connection
with this Union, a report of the meeting which took
place in the month of June, 1909, from the gifted pen
of a local critic — one W. Scott Lorrie, contributed to
an English publication — which, either innocently or
9

130 PERU OF THE TWENTIETH CENTURY
deliberately, printed the account "as she was wrote."
Here is a portion of Mr. W. Scott Lorrie's beautiful
contribution :
" Want of space prevents a more detailed description of this
regatta, the likes of which ought to be encouraged, not only
among the Peruvians themselves, but also among we foreign
residents who are such enthusiastical sportsmen."
What a pity that "space prevented a more detailed
description " ! Conceive how amusing it might have
proved !
Football seems to have an altogether extraordinary
fascination for Latin-Americans, although it was a
game entirely unknown to them before it was intro
duced from England. Lima and Callao are very
severely " bitten " with the mania for furious football,
and during the months of October-May it is played
perpetually. Most enthusiastic are the players ; and,
moreover, they play extremely well. The Callao team
have a very competent captain in Mr. Joseph Dodds.
The Lima Cricket and Football Club is another
well-patronized coterie of sport-loving men, and their
games are watched by considerable crowds of inter
ested spectators composed of both sexes. Peru has
not yet witnessed the degrading spectacle of women-
footballers or women-cricketers ; and with the knowledge
one has of the true femineity of Peruvian ladies, there
is no probability of their emulating the hoydens who
exhibit themselves to satisfy their own vanity and the
vulgar tastes of the ragamuffin class in England.

CHAPTER XI
Public worship — Freedom granted — Intolerance of foreign missionar es
— Charity of Catholic priests — Position of English Church in Peru-
Late and present chaplain in Lima — Breaking away from priestly
control — Bishoprics and curacies — Lima Cathedral — Valuable
Church possessions — Public processions — Religious service at
Arequipa — Beverent attitude of populace.
In spite of the fact that a clause (Article 4) in the
Constitution of the Republic maintains that " The
nation professes the Apostolic Roman Catholic religion ;
the State protects it, and does not permit the public
worship of any other," under no Latin-American
Government is there greater freedom for, and licence
accorded to, alien religions than in Peru. This is all
the more remarkable in view of the fact that the
Peruvians still maintain the most complete adhesion
to Rome, and in spite of the wholly aggressive and
objectionable manner in which certain Protestant
missionaries have come to the country to stir up
revolt and rebellion among the poor and ignorant
Indians against the teaching and the influence of the
Church. The attitude of some of these doubtless well-meaning,
but quite tactless, people has been little less than
scandalous, and it speaks volumes for the good-natured
tolerance of the Peruvians generally, and of the eccle
siastical authorities in particular, that persistent and
fanatical busybodies should have been left almost
entirely unmolested. When the Mormons came to
England lately they were roundly denounced by the
131

132 PERU OF THE TWENTIETH CENTURY
halfpenny London Press, and practically hounded out
of the country. This was done in the name of
" religion," nearly all of the most bitter opponents
being found among members of the clergy, certain
notoriety-loving Bishops and minor Church dignitaries
(who hope one day to become Bishops) joining in the
hue-and-cry, and forgetting all about their " Christian
charity " in the very human love of the pursuit of
rivals who seemed destined to become too successful.
What if the Peruvians had behaved similarly, and
had chased out of their country the noisy and meddle
some male and female missionaries who, not content
with invading Peruvian religious territory and violating
the conditions under which they, as foreigners, were
permitted to reside in the country, resorted to anathe
matizing and vilifying the Catholic priesthood in
special illustrated volumes and countless newspaper
articles, women, as usual, taking the lead in this
unworthy crusade.
How few of these fanatics, I wonder, ever remember
— how many of them ever knew of — Carlyle's words
upon the question of religion ? " It is unworthy of a
religious man to view an irreligious one either with
alarm or aversion, or with any other feeling than
regret and hope and brotherly commiseration." The
Protestant missionaries in Peru cannot even plead the
excuse of dealing with irreligious individuals, for the
poor Indians of that country are, of all people, the
most blindly devoted to their faith, which forms,
indeed, the only sheet-anchor to which they can cling
during their usually dull, featureless, and exceedingly
hard lives. And yet it is this consoling faith, this one
tangible, throbbing hope, of which the Protestant
missionaries would forcibly deprive them, offering
them in substitution nothing but a rhetorical confusion
of thought, a paralyzing doubt as to their ultimate

MISSIONARIES 133
salvation, and a veiled distrust of their best, their
only, friends — the priests.
I am not a Catholic in belief, and have no religious
prejudices whatever, but I have seen so much real good
effected by Catholic priests among the very poor and
ignorant of the Indian races, and I have witnessed so
many crass failures among their rivals in the "spiritual
business" to improve upon their methods or to emulate
their disinterested charity, that I cannot but regard
the attempt to convert the Peruvian Indians from
Catholicism to Protestantism as an act of unmistakable
presumption and stupidity. These self-appointed
guardians of other people's souls would endeavour to
inflict upon their innocent pupils beliefs which they
cannot understand, let alone accept ; we see the
same bigoted class of individuals expending other
people's money upon the conversion of one Jew, who
is probably starving or demented by trouble, from the
faith which his ancestors professed and practised
thousands of years ago, and which is the very founda
tion of their own convictions. Well might Lucretius
exclaim in his " De Rerum Natura " — Tantum religio
potuit suadere malorum.
There can be no question that the English Church
in South America is in a very parlous condition, and
so serious is its state of inefficiency and so pronounced
the lack of funds that the Bishop of the Falkland
Islands, the Right Reverend Dr. F. D. Blair, in whose
vast diocese is included Peru, has during the past few
months been in England on a canvassing tour for the
purpose of exciting public interest — and incidentally
collecting funds — for his Mission. The English schools
under his lordship's widespread jurisdiction have long
been closed for lack of funds to support them, and
Dr. Blair thinks that for the purpose of putting the
Church upon a thoroughly sound financial basis at least

134 PERU OF THE TWENTIETH CENTURY
£100,000 is necessary. The Bishop has, at least,
backed his opinion by a notable contribution out of
his own by no means too large salary, heading the list
of donations with a sum of £500, in the form of a
personal guarantee for the immediate discharge of the
most pressing debts. Having thus evinced his deter
mination to carry out urgently the much-needed
reforms, it is sincerely to be hoped that British resi
dents throughout the length and breadth of South
America will come to his aid, and show, in a similarly
practical form, their readiness to promote the welfare
of the English Church in South America. Nothing
which I have said regarding the methods of certain
missionaries carrying on propaganda in Peru bears
reference to the work performed by the English
Church in South America — work which has been the
means of spreading much moral and intellectual en
lightenment without violating the laws of decency and
hospitality. For some three years the Rev. A. Miles Moss acted
as Chaplain to the Anglo-American Church at Lima,
and although not ranking as an eloquent preacher, he
succeeded in thoroughly endearing himself to the
mixed congregation of British and Americans, wrho
were unfeignedly sorry to lose his services. Mr. Moss
was successful also as a photographer, author, and
conversationalist, and he was generally esteemed as a
very pleasant companion.
As a naturalist Mr. Miles Moss has discovered many
rare species of butterflies, and has, through some
readable articles, made known some hitherto unsus
pected regions for travellers and entomologists.
Upon his departure from Lima in the early part of
last year (1910) his place was filled by the Rev. W.
Duncan Standfast, B.A. Oxon. (Jesus College), who is
the Resident Chaplain.

ENGLISH CHURCH IN PERU 135
Services are held in the well-built and comfortable
little church, situated in the Calle Pacae, Lima, on
every Sunday at 10 a.m. On the first and third
Sundays in the month Holy Communion is held after
Matins, on other Sundays at 9.15 a.m., and on Saints'
days and Holy days at 8.30 a.m. Evensong and
Sermon days are chosen on the second Sunday in the
month, and choral Evensong, without sermon, on the
last Sunday ; while children's services take place every
Sunday at two in the afternoon. In Callao services are
held under the auspices of the same incumbent every
Sunday, Holy Communion being at 8 a.m. and Even
song, with sermon, at 8.15 p.m.
The position of the English Church in Peru is
peculiar. It is tolerated, but not encouraged, and
there seems less necessity for any special attention
upon the part of the authorities on account of the
apathy shown by the English-speaking community
in attendance at public worship or in support of the
Church's maintenance.
While the Church of Rome continues to hold the
majority of Peruvian women securely within its folds,
and while the attendance of such devotees at early
Mass and both day and evening services is remarkably
encouraging to the priesthood, the men on the whole
have broken away from the control once exercised over
them, and are inclined to argue upon the tenets of
Christianity, even denying its Divine influence.
Some of them will tell you that it is quite easy to
account for Christ's appearance and effect upon the
rest of the world upon purely natural grounds ; that
He came at a time when the older civilization of the
classical world was disintegrating ; when Rome, having
become the mistress of Empires, was being gradually
undermined by her luxury ; when her free institutions,
adapted to a city, had proved incompatible with the

136 PERU OF THE TWENTIETH CENTURY
demands of a military empire, and her religion had
melted before the wider conception of the brotherhood
of man as taught by the Stoic philosophy, when
philosophy itself was being lost in mysticism, and the
world was anxiously looking for some new religion.
All this, and much more, we have heard before, but
not from the lips of people still professing and practis
ing the Roman Catholic faith. Thus one is struck by
the general feeling which seems to have spread among
the male population in South America generally, and
where attendance at Church celebrations, except upon
extraordinary occasions, is very meagre. Moreover,
the Peruvians have witnessed the many abuses which
their Church has committed in times gone by, and
with the growing education of the upper and middle
classes and the broadening of the mind by occasional
travel abroad, the Peruvians are commencing to think
for themselves, and to refuse to submit any longer to
the dictation of men in matters of conscientious belief.
But it is not only among the Catholic churches that
the attendance at Divine worship is falling off. In
practically all of the Latin-American States which I
have visited I have been informed by the Protestant
Chaplains (where there had been any) that it seemed
useless and hopeless to endeavour to inspire the
British residents with religious fervour or to induce
them to support their Church more generously, or if
they could not afford to contribute towards its main
tenance, at least to encourage the priest in charge by
attending the services.
Except when there is the attraction of a travelling
Bishop or a memorial service, the attendance does not
usually exceed a score of worshippers, of whom more
than one-half are always composed of women. No
amount of argument or persuasion apparently influences
the absentees. You may tell them that attendance at

ROMAN CATHOLICS AND THE CHURCH 137
some place of worship is the only means, moral and
intellectual, of enlightenment, and by absenting them
selves they influence others to do the same thing.
One Englishman to whom this argument was addressed
in my hearing replied that in his opinion " honesty
ought to be the first principle in every man's life " ; and
as "he did not believe in the Christian religion, and
as his wife was a Roman Catholic, he preferred to
remain away," more especially, he added, " since he
was always occupied during the week, and found
Sundays the only days upon which he could obtain a
game of golf."
The South American Missionary Society, which has
an annual income of over £36,000, should be able to
do something in Peru without creating a hostile
feeling, and, in fact, it has effected a certain amount of
good ; but much remains to be accomplished, and
much that might be avoided, especially in the way of
making fewer enemies among the Catholic priests,
which bad policy has resulted in so much bitter feeling
and opposition against Protestant missionaries.
The Republic of Peru for religious purposes is
divided into nine Dioceses or Bishoprics : Lima, which
is the seat of an Archbishop ; Chachapoyos ; Trujillo ;
Huaraz ; Huanuco ; Ayacucho ; Cuzco ; Puno ; and
Arequipa. The Bishoprics are again divided into
curacies, which are in charge of curate-vicars, the
total number being 613, distributed as follows :

Diocese.

Curacies

Lima (Archbishopric)

 66

Cuzco (Bishopric)

 82

Arequipa (Bishopric)

 71

Trujillo (Bishopric) 

 103

Ayacucho (Bishopric)

 92

Chachapoyos (Bishopric)

 43

Huanuco (Bishopric)

 57

Puno (Bishopric) 

 52

Huaraz (Bishopric) 

 47

Total  613

138 PERU OF THE TWENTIETH CENTURY
With regard to the number of places of worship
which are to be found in Peru, I have never been able to
meet with anyone who could tell me exactly or, indeed,
who had any very definite idea upon the subject. Pre
sumably the ecclesiastical authorities could satisfy one's
curiosity ; but, as a rule, these gentlemen prefer to
" lie low," like Brer Rabbit, and to say as little about
the Church and its possessions as possible. They have
seen or heard of results of the struggle between the
Church and State in Mexico, in Chile, in France, and
in Portugal ; and they have no desire to attract any
undue amount of attention, for fear that almost its
last stronghold in Latin-America — which is Peru —
may be assailed and perhaps taken.
When one comes to remember that in Lima alone
there exist sixty-seven different churches, and that
each one of the many towns and villages possesses from
ten to twenty places of worship, it should not be a
difficult matter to form some estimate of the total
number of churches, and which may be put, conserva
tively, at 1,700 — a sufficient supply, one would say, for
a population of a little more than 4,000,000 !
I have been privileged to view most of the famous
churches of the world, to study especially the histories
and constructional features of those of Spain, of
Portugal, of France, and of most of the Latin- American
States. It is a difficult task to decide which among
them all appeared to be most impressive or most
beautiful. Certainly, the Cathedral of Lima, hand
some as it is, cannot be given the preference, since,
whatever may have been its architectural attractions
before the great earthquake of 1746, its present aspect
is somewhat prosaic, and even commonplace, compared
with some of the noble religious edifices of the Old
World. Descriptions exist of the church as it
appeared in 1625, shortly after it had been consecrated,

PLACES OF WORSHIP 139
ninety years having been taken to construct it. No
doubt it was then a striking and costly edifice ; but
practically nothing was left of it after the awful
seismic visitation of 1746.
The church was rebuilt on exactly the same site,
and was once again solemnly dedicated in 1758. It
has now three naves, each one consisting of nine
arches, or vaults, the two aisles being formed of ten
chapels, in one of which — close to the main entrance
— are exposed the mummied remains of Francisco
Pizarro, its founder. The only really remarkable
wood-carving is that of the choir and stalls, made of
cedar and mahogany ; but there are, on the other
hand, several very valuable paintings, one being by
Murillo, depicting La Veronica ; there is also a Rem
brandt. The impression which is gained after repeated
visits to the Cathedral is one of its great vastness —
emptiness ; for upon rare occasions only have I seen
its huge space completely occupied by worshippers.
The Corinthian style has predominated, and it may be
noticed in the many fluted columns with their capitals,
architraves, and friezes decorated with sculptures in
demi-relief; in the second story, which is composed of
fluted pilasters, and in the second and third parts of
the handsome main portals, the lower part being
Doric. Among the relics are "a piece of the True
Cross," sent by Pope Urban VIIL, and of St. Julian,
St. Sebastian, St. Adrian, St. Marina, St. Saturnines,
St. Faustos, and of numerous other martyrs.
Other Lima churches of note are the Segrario and
Chapel-of-Ease of the Orphans ; the parish church, con
taining eleven altars and one fine chapel-of-ease : Santa
Ana, founded in 1572, with eleven altars and one in
the chapel-of-ease; San Sebastian, built in 1561 with
thirteen altars ; San Marcelo, also with thirteen ; San

140 PERU OF THE TWENTIETH CENTURY
Lazaro, founded in 1563, with a hospital attached;
San Pedro, the Jesuits' Church, with some notable
wood-carvings ; San Francisco ; Santo Domingo ; San
Agustin ; and the church of the monks known as
Descalzos, or barefooted friars. I have insufficient
space at my disposal to record even the names of the
many convents and monasteries which flourish, and
which are said to contain enormous wealth in the form
of gold and silver plate, bejewelled altars and costly
vestments. As a specimen of the riches which are
hidden away in some of these dark and little-visited
convents, I attach the inventory of but one — that of
the Sisterhood known as Nuestra Senora del Rosario
(Our Lady of the Rosary) — which information was
placed at my disposal by an obliging priest :
WEIGHT OF SILVEK SEEVICE OF THE ALTAE.

Marcos. *

Barrow for carrying relics of saints . . .

... 1,002

Twelve lamps 

782

Front of altar 

297

Virgin's throne 

411

Columns and fittings of tabernacle . . .

387

Doors of same 

241

Doors of Virgin's niche 

103

Four high taper- stands

223

Six smaller taper-stands 

150

Arches of the niche

152

Twenty taper-handles 

202

Or, a total of

... 3,950

Or, say

... 39,500 ounces troy

But this was not the whole value of the precious
ornaments concealed in this one convent, for the
Remonstrance contained :

Diamonds ...

 1,304

Bubies

 522

Emeralds

 1,029

Amethysts ...

 45

Topazes

 2

Pearls

 121

* The mar co of 8 onzas = 10 ounces troy.

CHURCH RICHES 141
while the Virgin's crown, which was only placed upon
the head of the figure at high festivals, contained, I
was assured by the same informant

Diamonds 
Eubies 
Emeralds 
Diadems in brilliants
Eings in brilliants ...
Small brilliants

102
102 150 3
29

The Lima churches celebrate annually 459 festivals,
while 39,607 Masses are said, of which 19,506 are paid
for by the different brotherhoods. The total number
of persons employed in religious services, or in taking
care of the churches, is 1,836, including both monks
and nuns.
Public processions and other national functions in
South America vary but little from such ceremonials
which take place in most other countries, except that
they nearly always partake of a religious or semi-
religious character. No procession is considered com
plete without some visible symbol of the Christian
faith, borne aloft in the form of a highly-gilded figure
of the Saviour or of some saint, or a simple crucifix
carried with all the solemnity of a High-Church festival
and to accompanying slow music. The Latin people
love to witness, even if they do not all firmly believe
in the sanctity of, a religious procession ; and the fact
that all the display of pomp and circumstance costs
nothing to see is, as with most nationalities, a decided
attraction. Peru is still the home — one might say the
stronghold — of the Catholic Church, and the priests
maintain the popular interest in its proceedings by
organizing frequent religious processions and reminding
the populace of the existence of their places of worship
by the continual ringing and clanging of the church-
bells — day and night, especially at night.
An open-air function of this kind is usually blessed
with the two indispensable agents of spectacular

142 PERU OF THE TWENTIETH CENTURY
success — a brilliant sunlight and a cloudless sky.
Let me describe one such scene. In Arequipa, the
second largest town in Peru, on a certain Sunday in
June, a contingent of troops is about to depart for the
frontier, there to defend, if may be, the encroachment
of the belligerent Ecuadorians. To-day they are to be
blessed by the Bishop outside the Cathedral, after the
celebration of an open-air Mass. There is, however, to
be observed but little " enthusiasm " as we Northerners
understand the term ; no tightening of the heartstrings
and contraction of the facial muscles as the military
companies come swinging by in — it must be admitted
— excellent order and in perfect step ; no nervous lump
arises in the throat from restrained emotion as the
solemn strains of martial music herald their approach ;
no feeling of sorrowful exultation as the flower of the
Republic's young manhood tramp stolidly along on the
¦probable road to death. The Peruvians, nevertheless,
are far from being an unemotional people ; only their
emotions do not show themselves as they do with us,
and they are not excited by similar causes.
The Arequipa Plaza is looking its loveliest in its
spring garb of green grass and greener trees ; its flower
beds are filled with brilliant-coloured semi-tropical
blossoms, its many stone statues and garden paths are
neatly trimmed and flagged with multi-coloured tiles.
Even the surrounding buildings, many still in the
state of semi-ruin in which they were left by the dis
astrous earthquake of August, 1868, look less dilapi
dated and forlorn in the scintillating sunshine ; and
with the decorations of red and white pennons and an
abundant display of the national flag, as well as with
the roofs loaded with groups of brightly- dressed women
and well-attired men watching the proceedings from
this vantage ground, the scene is gay and attractive
enough.

RELIGIOUS CEREMONIES 143
Every possible place, indeed, is occupied by sightseers,
but not a sound is heard, and only the faintest of
patriotic enthusiasm is to be observed. Within the
Cathedral gates a great throng has already assembled.
An open-air altar has been erected, where solemn Mass
will be said ; the back of the altar is draped with a
profusion of coloured paper flowers and gaudy streamers,
while the front is occupied by a life-size figure of the
Virgin Mary carrying the Infant Saviour, the former
being decked out in sky-blue velvet, much lace, and a
crown with many jewels upon her brow, while the
latter is attired in orange and green satin. The whole
is surmounted by a canopy of crimson velvet and gold
embroideries, the altar table being, however, of ordinary
pink calico with a lace covering used as tablecloth.
The tiled steps in front of the Cathedral have been
furnished with a carpet and many crimson velvet chairs,
which are occupied by the advance-guard of the officia
ting clergy, the contingent of white-habited Fathers,
and a number of white and red surpliced choirboys.
The military staff now arrive to a sound of inspirit
ing martial strains, but they are left to find their
places as best they can upon ordinary cane-bottomed
chairs. They are followed by a procession of young
girls from eight to fifteen years of age attired in white
muslin frocks and with long, floating wThite tulle veils,
their elder sisters being costumed in black, with black
mantillas, lace mittens or kid gloves. Each little girl
goes down on her knees, and remains there presumably
in prayer, but really busily occupied in viewing her
novel surroundings. Many top-hatted and frock-coated
gentlemen, and many more who are attired in the
ordinary lounge suit, crowd in until the whole of the
occupants of the railed-off portion of the Cathedral
approach are packed as closely as are sardines in a box.
All are waiting for " Somebody," and the Somebody

144 PERU OF THE TWENTIETH CENTURY
tarries aggravatingly. Nine, half-past nine, ten and a
quarter-past ten are struck by the Cathedral clock,
and many intermittent outbursts of the jangling bells
and military calls from the massed bands lead to
expectation as to a commencement at length — only,
however, to end in further disappointment.
In the meantime, the Plaza approaches and broad
roadways surrounding it have become more closely
packed with troops, the public being hemmed in more
and more towards the pavements, and forced into the
doorways of the shops and houses surrounding the
square. Finally, at 10.30, the strains of a solemn chant
are heard arising from the military band and the choir
boys, and then, all present uncovering, Monsignor,
habited in full episcopal raiment, jewelled mitre on
head and silver crozier in hand, emerges slowly from
the interior of the Cathedral, and the Blessing of the
troops and the colours commences. The Mass itself is
colourless, and only those in immediate proximity to
the Bishop can hear a single word of the service. To
all others the continual bobbing, bowing, and genuflec
tions of the heavily- clad celebrant appear almost
pantomimic ; nevertheless, all are perfectly reverent,
and as one casts one's glance over that great silent
multitude of men and Avomen worshippers, with un
covered heads and on bended knees in the roadway,
prostrate on the hard flags of the Plaza paths, on the
housetops and before the Cathedral itself, the scene
appears unquestionably impressive. The troops alone
remain standing and covered, their arms gleaming and
scintillating in the sunshine, their brown and bearded
faces all attention and of solemn expression.
The Mass at length is over ; the Benediction is due.
The whole congregation is once more on its knees, with
bowed heads in the bright, hot sunshine ; the silence is
intense. The episcopal voice is now almost resonant,

CHURCH CEREMONIES 145
and with his face to the expectant multitude the
Bishop's words sound loud and carry far. With one
hand grasping the crozier and the other uplifted with
the fingers separated, the Blessing is pontifically be
stowed ; the worshippers remain for one brief moment
in silent prayer, and then the ceremony is over.
Monsignor turns his embroidered and bejewelled back,
and departs with his clerical train ; the big Cathedral
doors engulf them speedily from view. The crowd
upon the Cathedral steps begins to thin and to melt ¦>.
away ; the military assistants at the choral effects
march off to a spirited air ; the sound of trumpet-calls
and the roll of drums proclaim the forming of the
troops into companies, and these, too, swing off with
their officers, seated upon their prancing steeds, at
their head ; and presently the Plaza is almost deserted.
The housetops are once more given up to the undis
puted possession of the refuse-eating turkey-buzzard ;
the bells cease to deafen the air with their clamorous
tongues, and the usual calm of Sunday — the same all
the world over, in the thronged city as in the lonely
desert, unmistakable, inexplicable — reigns again un
disturbed.

10

CHAPTER XII
Agriculture— Sugar husbandry — Prospects of the industry— Early cul
tivation and first factory — Eeasons given for retaining ancient
machinery — Typical mill described — Classes of rollers used — Process
of manufacture — Type of machinery necessary — Principal sugar
estates on coast of Peru — Santa Barbara factory — Extracts obtained —
Various installations described.
Little or nothing is known in England concerning
the immense sugar industry of this Republic — a fact
which is not surprising when, even in Peru itself, there
seems to be a paucity of information to be obtained
concerning either the extent of the sugar cultivation
or details as to its manufacture. It is necessary to
proceed from estate to estate and from individual to
individual in order to secure any reliable data, a
singular ignorance prevailing on the part of one pro
prietor or manager concerning the doings of his nearest
neighbour or rival ; and yet it may be said that the
sugar industry is already one of the greatest supports
of industrial Peru, and is destined to become a more
important factor still in its welfare, and this in the
immediate future.
It is interesting to note that while sugar-cane was
not known in Peru at the time of the conquest by the
Spaniards, the first plantation was laid out in the year
1570, the cane used for the purpose being brought to
Lima from Mexico. It was in the beautiful and fertile
*\valley of Huanuco that the first factory was estab
lished, and it is told by the historian and man of
letters, Don Ricardo Palma, in his "Tradici6nes
146

Port of Cerro Azul; showing Pier of the B.S. Co., Ltd.

Lake Titica .- Steamer leaving Guaqui (on the Bolivian side)
for Puno (on the Peruvian side).

SUGAR CULTIVATION 147
P^ruanas," that, finding his sugar could not compete
with that of Mexico, the owner of the Huanuco factory
resorted to a clever stratagem, which was to send to
Mexico a ship loaded with Huanuco sugar. The
Mexican producers swallowed the bait, for they sup
posed that to send their sugar to Peru was as much as
to say send " Rosaries to Berberia," for the production
must be abundant there and the price very low. From
that day forward the Mexicans ceased to send sugar
from Acapiilco, and the sugar industry began to
flourish in Peru.
In all probability, the first cane that was brought
into Peru was from Jamaica, or some other of the West
Indian Islands, as the class chiefly grown at the
present time is known by the name of " Jamaica Cane."
Among the earliest relics of the industry are two
copper defecators, which were dug up on a sugar estate
a few years ago, bearing the date of " 1760." Close
to the Capital of Lima there is a small compact
estate, which has uninterruptedly produced cane
for the past 170 years, and it is still considered
to have the best soil of any of the estates in that
locality. The Republic exports its sugar to a number of
markets, Liverpool taking about 60,000 tons and Chile
about 40,000 tons, while the rest of the production is
distributed between New York, San Francisco, Japan,
and Australia. Sugar is generally sold aboard in
Peruvian ports, and the prices are regulated by Liver
pool quotations. Some markets purchase on polariza
tion, but generally purchasers demand the rendiment.
The Peruvian planter is well protected by his Govern
ment, which imposes a heavy tax on foreign sugar,
while agricultural machinery is permitted to enter free
of duty. On the other hand, the planter does not
escape taxation scot-free, since there is a heavy tax

148 PERU OF THE TWENTIETH CENTURY
imposed upon white sugar, which is made and consumed
in the country.
In all probability, the West Coast of Peru, which at
present produces an annual output of 150,000 tons,
could, with proper management, raise this to at least
300,000 tons and secondary outputs. In order to effect
this, however, it would be necessary to have a complete
rearrangement of the factories, the introduction of
modern crushing-plant and labour-saving devices,
better protection of the guano birds and animals,
increase in the water-supply in some sections, and the
further cultivation of lands by extensive irrigation. I
have but little doubt that most, or all, of these features
will be introduced eventually, since the -prevailing
spirit throughout the country is one of progress
tempered with caution, for the modern Peruvian, like
the ancient Greek, says : " Litus ama : . . . altum alii
teneant." The Government has done, and is doing, much to
foster the growth of the sugar industry, and among
excellent provisions has established an Experimental
Station at Santo Beatriz, where it occupies an area of
some 3 hectares = 7\ acres. Its primary object was
the study of the different valleys of the Republic, and
the conditions afforded by these for sugar-cane cultiva
tion ; the diseases ; organizing experimental fields ; and
generally to do all and everything to improve the
industry and its commercial exploitation. The station
has some twenty-two varieties of foreign cane under
cultivation, and the present Director, Senor Cesar
Braggi, who took charge in 1909, is well satisfied with
the amount of progress made. The station is now five
years old, having been established under the auspices
of Mr. Thomas F. Sedgwick, its director, and Seiior Don
Jose Balta, the then Minister of Agriculture, in 1906.
Inquiry among the various estate-owners why they

SUGAR MACHINERY 149
have hesitated for so many years to introduce modern
machinery and equipment elicits the reply : the industry
of sugar cultivation and manufacture has proved so
profitable with the use of the old and tried appliances,
that they have not deemed it necessary to make any
outlay upon additional equipment. Upon further
interrogation, I was informed that the factories are
recovering 75 per cent, of the juice of the cane as
against over 90 per cent., which is recovered in Cuba,
Brazil, Hawaii, Java, and Louisiana. Thus 25 per
cent, of the produce has been wasted or burnt through
sheer ignorance or incompetence upon the part of the
management ; and when it is remembered that some
£100,000 per annum has been thrown away in this
manner, and that the necessary new equipment for the
whole of the mills would probably not have exceeded
£200,000, it can be appreciated how short-sighted has
been the policy of the Peruvian manufacturers.
It is gratifying to know, however, that a gradual
change is coming over present ideas and methods, and
I can only repeat what I have said previously, but with
additional emphasis — namely, that an excellent oppor
tunity exists in Peru at the present time for British
manufacturers of sugar machinery to extend their con
nections to this field, since in all probability, between
now and the end of the next five years, there will be
something like twenty to thirty new mills erected
upon Peruvian plantations. If we omit the year 1905,
which proved altogether an exceptional one, the price
of sugar has not been as high in Peru as it is to-day
for a long time, and it should be borne in mind that
this increase in the selling figure — which, as I write,
stands at £15 per ton — is not the outcome of any
unusual or abnormal conditions, but the result of the
increased demand, which, moreover, is more likely to
augment than to diminish.

150 PERU OF THE TWENTIETH CENTURY
Before proceeding to point out the class of machinery
which is best suitable to the factories to be found in
Peru, it may be as well to give an outline of the plant
which is now to be found commonly in use ; and for this
purpose three or four different factories may be selected
at random. The first of these contains one three-
roller mill, with cylinders of the 32 x 66 type, which
type, as well as those of 32 x 78 and 34 x 84, are found
installed indiscriminately. The speed of the mills is 1 6
to 1 8 feet per minute, and there is no hydraulic process
employed. The extract of juice over the weight of
cane amounts to from 58 to 60, twelve men being
employed to unload the cane at the conductor. Upon
one other mill (the Santa Barbara) as many as twenty-
one men are continually thus employed, and a daily
wage of $1 (2s.) per diem each. A handsome com
petence awaits the man who invents a practical
automatic cane-feeder to the crushing mill. The mill
grinds from 350 to 420 tons of cane per day, the mill-
men working from fifteen to twenty hours. The boilers
are fed upon this particular estate with dry bagasse by
hand, there being seven boilers, of which five are in use,
but some mills — such as the Santa Barbara — have
partly automatic bagasse feeders, necessitating only
three men in all to feed eight boilers (in pairs).
Only one tubular boiler exists upon another mill, but
it turns out from 35 to 40 tons of sugar per day. Yet
a fourth factory is fitted with a three-roller mill with
cylinders 34 x 84, the speed of the mill being 15 feet
per minute, and the motive power supplied by an
engine of the walking-beam type. This particular
mills grinds from 350 to 375 tons of cane per day, and
the extract of juice over the weight of cane amounts
to from 57 to 60. Double-bottom copper defecators are
used, the capacity being 375 imperial gallons ; there
are two vacuum-pans — one copper and one iron — the

SUGAR MACHINERY 151
capacity of the larger pan being 18 tons, of second
sugar grained in pan, third boiled to strings. There
are two batteries of centrifugals — one being an over
head pulley bottom-discharge 30-inch type ; the other,
bottom pulley 40-inch type. The revolutions of centri
fugals are 1,000 to 1,100 per minute. In this factory
the steam plant has both the old type and tubular
boilers. In regard to another factory there is found one dry
double-crushing plant, with three three-roller mills,
cylinders 32 x 78, each mill being propelled by a
separate engine of the walking-beam type. The mills
are fitted with hydraulic pressure apparatus, and a
registering balance is used. About 500 tons of cane
are ground daily, 33 tons per hour being the average,
and the extraction amounts to 68.
It will be seen from the description given above that
the equipments are singularly mixed as to types
and age, and many are defective in completeness.
Thus there exists an abundant opportunity for im
proving the equipment, and so add at least 20 per
cent, to the output of the mills. It would not
need a very eloquent salesman to impress this fact
upon the minds of the principal estate owners and
manufacturers in Peru ; moreover, as they are at the
present time in a very receptive and complacent mood,
having enjoyed an abundant harvest in the last six
months, with the probability of an even better six
months to follow.
In regard to the prevailing system of manufacture,
something may also be said ; but it is naturally difficult
to afford anything like a comprehensive description of
the general methods in vogue, owing to the variety of
types of machinery employed and the many deficiencies
to which references have been made. The subjoined
description of a typical mill may, however, afford

152 PERU OF THE TWENTIETH CENTURY
manufacturers of machinery at home some guidance as
to the kind of installation which will shortly be called
for, and it may well be worth the while of those among
the more enterprising of the sugar-machinery manu
facturers to communicate with proprietors of the
estates, the addresses of some of whom will be found
at the end of this chapter, offering them such type
of installation as they may think most advisable.
I know that in suggesting to British manufacturers
that they take this step, they will probably hesitate,
doubting whether it is likely to be worth while to put
themselves to so much trouble and expense, when, in
some likelihood, no order may reward their enterprise.
It is this very hesitation which has spelled so heavy a
decline in the connection of the British manufacturer,
not only in South and Central America, but throughout
the world, a condition which is gradually resulting
in his once-magnificent popularity among users of
machinery of practically all types and descriptions
falling away from him.
Manufacturers in other countries — such, for instance,
as the United States — do not for a moment pause
to consider the trumpery initial cost ; nor do they
fear the expense attendant of a few hours' trouble
in the production of blue prints and drawings, or upon
cablegrams when or wherever a good order is in
prospect. Considering that each installation of a new mill and
its attendant equipment means the outlay by the
purchaser of between 10,000 and 15,000 pounds sterling,
it is surely worth the expenditure of a few pounds to
participate in the mere chance of taking such an
order ? Certain it is that the British manufacturers
will not have this promising field to themselves for
very long, since already representatives of American
and French makers of sugar machinery are on the

SUGAR MACHINERY 153
spot ; and while the tendency of the Peruvians is
to encourage in every possible way commercial relations
with Great Britain, the feeling between the two nations
being of the most friendly nature, it is unreasonable to
suppose that hard-headed business men would fail to
grasp at the first favourable offer which is made to
them, no matter whence it emanates ; while it can
readily be understood that the man on the spot is
likely to take the order away from the applicant who
merely canvasses in the form of correspondence.
Upon a moderately well-equipped plant, the cane,
after being weighed, is run in the cars alongside of the
conductor, and there it is fed to it by hand. It then
passes up to a dry double crushing-plant of two three-
roller mills fitted with hydraulic pressure. The
cylinders may be of the 32 x 66, or 32 x 78, or 34 x 84
type. Two men at the end of the conductor regulate
the feed. The cane, after passing through the first set
of three rolls, is run up to the second, passed through,
and the bagasse carried off in a bagasse conductor.
At the discharge of the second mill two labourers
pick out the badly crushed pieces of cane, and throw
them in to be recrushed. The juice from the first
and second mills is then strained through a copper
netting. The bagasse that does not pass the mesh is
collected and passed through the mill again. The
juices from the two mills are now led through pipes or
cement gutters to a tank, or vat, where they mix.
The mills are propelled by separate engines. In
some cases, as stated, these are still found of the
walking-beam type, whereas a modern equipment
should have one engine to three mills and a crusher,
the special and most desirable fixture being the
strength of the gudgeons for the rollers. The speed
of the mills is about 22 feet per minute for the first
mill, and 11 feet for the second.

154 PERU OF THE TWENTIETH CENTURY
The bagasse is run out from the conductor, when
it is dumped into carts and taken out to dry, or is
carried to the furnaces direct. The furnaces, fitted
with step-ladder grating, are usually placed below the
ground surface, and are fed by hand. Carts and
wheelbarrows take the ashes to the dump, where they
are left, or they are conveyed to the fields for use as
a fertilizer. Both the old type and multitubular
boilers are being used. The large factories have from
eight to twelve boilers.
The juice from the wells is pumped up to the double-
bottom copper defecators, of a capacity of 400 to 500
gallons (in some factories it is first run through a
juice-heater). There it is limed to the neutral or
slightly alkaline point, tempered dry lime — and not
lime milk — being used by some managements. The
amount of lime used for such defecators is from 8 to 10
pounds. After defecation, which requires from three-
quarters of an hour to an hour and a quarter, the juice
is drawn off, clarified, filtered, and run to the tank
feeding the upright triple effect. (Some Peruvian
factories do not clarify after defecation, while others
do not filter the juices. No sand filters have been
noticed.) The deposits are delivered to the filter-
presses, and this filtered juice also goes to the triple-
effect tank. The press-cake is removed from the press
and thrown into the dump, where, upon some of the
estates, it is used as a combustible. In most other coun
tries which I have visited it is used only as a manure.
The clarified juices are pumped up to the upright
triple-effect tank, and, after evaporation, are dis
charged at 24 to 30 Beaume into the eliminators,
which are fitted with copper serpentine coils. They
are there worked up, skimmed, allowed to settle, and
finally are drawn off to the tanks for feeding the
vacuum-pans.

SUGAR MACHINERY 155
The vacuum-pans, often of copper, have a capacity
of from ten to fifteen tons. The syrup is drawn into
the pans, the grains are started, and the strike is
boiled off, requiring from four to eight hours. The
massecuite is discharged from the pan at about
94 Brix.
The massecuite is discharged into massecuite-cars,
holding something over a ton. The cars are run out
on rails, and are allowed to cool from ten to twenty-
four hours ; they are then weighed, hoisted by an
elevator to the floor above, run up over the mixer,
and there dumped by a hand-dumper. The massecuite
passes through a grating into the reservoir, from
where it is fed to the centrifugals. In the centrifugals
(the overhead pulley of about 30-inch type) the
massecuite is centrifugalled from four to ten minutes
at about 1,000 revolutions a minute.
The sugar is discharged from below on to an apron
or suitable conductor, on which it is carried to a cup-
elevator, which takes it to the drying-room. The
drying process consists in allowing the sugar to remain
on the floor for a number of days, with occasional
turnings. It is then shovelled into a shoot over the
bagging-room. Bags are filled from below, weighed,
sewed up, and loaded into cars for shipment, or are
placed in the storing-room.
The molasses from the first sugar are collected from
the centrifugals in a gutter back of the centrifugals
which leads to a molasses-well, from where it is
pumped to tanks fitted with steam-pipes. There it is
clarified, and then run to the eliminators.
The Santa Barbara Factory, which is situated in the
Cafiete Valley, formerly belonged to Mr. Henry
Swayne, and probably dates back to the early sixties.
When acquired by the British Sugar Company,
Limited, some ten years ago, more modern methods

156 PERU OF THE TWENTIETH CENTURY
were at once introduced, and the mill now turns out
some 16,000 tons of sugar per annum. Always liberal
in the matter of improving the plant, the company
will soon probably own the most modern milling
machinery in Peru, since, within the next few months,
a new mill by Messrs. John McNeil and Company,
Limited, of Govan, Scotland, will have been in
stalled. One of the features of primary importance in con
nection with the sugar industry of Peru is the very
high percentage of sucrose contained in the canes, and
the very large proportion of which finds its way to
the furnaces. Concerns in other parts of the world
having canes with sucrose contents of about 13 per
cent., and working only four months a year, have been
forced, in the struggle which is continually going on
for existence, to adopt eleven and fourteen-roller
plants ; but Peru, more fortunately situated, has con
tinued to burn thousands of pounds' worth of sugar
which might have been saved, and has still made a
profit. The average extraction of the total sucrose in the
cane probably does not exceed, in Peru, 75 per cent, of
the sucrose contained in the cane, and, in fact, in the
more poorly equipped factories, it is doubtful if even
this figure is reached. With a modern crushing-plant,
having a crusher in front and a nine-roller mill, the
extraction, as above pointed out, should certainly ex
ceed 90 per cent, of sucrose in the cane. There is evi
dently a wide field for sugar machinery manufacturers
in Peru.
The canes of Peru are exceptionally rich in sucrose,
as, owing to the absence of rainfall, the planter is able
to regulate the growth and richness of his canes almost
to a nicety. Fifteen per cent, of sucrose in canes is
given by some authorities as the average figure, but

4 \
In the Cuzco Valley : Southern Railway Line (Cuzco Branch

Sicuani . (Northern Part) on the Cuzco Extension of the Southern Railway.

SUGAR MANUFACTURE 157
16 per cent, and 17 per cent, are not unknown. The
climatic conditions of Peru also enable a far larger
crop to be reaped with quite a small factory, since
reaping can be carried on throughout the twelve
months, whereas in other countries the reaping season
cannot be depended upon for more than three or four
months in the year. This means much less capital
has to be invested in sugar machinery, and that there
is a consequent reduction of staff and in the amount
upon fixed expenditure. Yields of forty, fifty, and
sixty tons of cane per acre are not infrequent, and
many factories claim that they can put sugar free on
board under £6 per ton.
The sugar crop for 1910 was the largest ever har
vested in the Republic. Some fifty different planta
tions produced a total of 172,000 tons, or an increase of
15,000 tons compared with 1909, when the figures
were 157,759 tons. The exports during the past five
years have been : 1905, 134,234 tons ; 1906, 136,729 ;
1907, 110,615; 1908, 124,891; 1909, 125,351. For
the first six months of 1910 the exports amounted to
57,000, or at the rate of 114,000, but the "fatter"
half of the year had yet to come. In actual value
Peru exported sugar in 1907 worth £827,298, for
110,615 tons; and in 1909, £1,159,972, for 125,351
tons. The home consumption may be put as follows : 1905,
27,506 tons; 1906, 32,659; 1907, 30,578; 1908,
32,402; 1909, 32,408; 1910, 30,000.
The following is a list of prominent sugar estates
situated along the coast of Peru :
Shipping Port. Factories and Estates.
Eten  Tuman, Cayalti, Pomalca, Patapo, Tulape,
Pucala, and Almendral.
Tuman. — Good double-crushing machinery ; mill
rollers 34 inches diameter ; modern evaporating plant

158 PERU OF THE TWENTIETH CENTURY
and vacuum-pan ; battery of Babcock and Wilcox
boilers ; centrifugal capacity somewhat short. This
estate belongs to the family of Senor Pardo, the late
President of Peru.
Cayalti. — This factory at present has only a single
crushing-plant, and the owners do not extract more
than 60 per cent, of juice on weight of cane ; they have
also to spread the bagasse to dry before burning in
furnaces of boilers. The mill is by Fawcett, Preston
and Co., Limited, of Liverpool. A new set of Babcock
and Wilcox boilers is in course of erection, and it is
proposed to put down a treble crushing-plant in the
near future. There is a distillery for utilizing the
exhausted molasses.
Pomaloa. — Has a double-crushing plant, with an
old mill by Manlove, Alliott and Co., and a modern
three-roller mill, about 34 inches diameter rollers, by
John McNeil and Co., N.B. A new battery of Bab
cock and Wilcox boilers has been installed, and the
factory is otherwise well supplied with machinery.
Patapo. — Here a new modern crushing -plant has
been put in recently. Three mills, the two last
by John McNeil and Co., driven by one engine.
The factory is otherwise fairly well supplied with
machinery. Triple- effect evaporator by McCune,
Harvey and Co. ; two small vacuum-pans. There is
a distillery in connection with the factory, which it
is proposed to enlarge shortly. This estate belongs to
a company having its headquarters in Chile, and is
managed by an Englishman — Mr. Biggs.
Pucala. — This estate is, at present, putting in an
eight-roller mill and sundry new machinery.
Shipping Port. Factories and Estates.
Salaverry  ... Koma, Casa Grande, Sausal, San Ant6nio,
Chieamita, Laredo, Cartavio, Nepen,
Pampas, La Vinita, Chiequitoi, Chiclin.
Chicquitoi, Chiclin, and Roma. — These estates
belong practically to one company, under a principal
proprietor, Senor Largo. Together they form, I believe,
the largest area under one interest in Peru. A railway

SUGAR ESTATES 159
connects the estates and the port of Hunchaca, where
the sugar is shipped.
Chicquitoi. — The factory is fairly well equipped, I
am told. I did not have time to go through it.
Chiclin. — This estate has no factory, and the cane
is crushed at Chicquitoi.
Roma. — The machinery here is worn and out of date.
It consists of a single crushing three-roller mill, 32-inch
diameter rollers, copper triple-effect evaporator, and
vacuum-pan ; under-driven centrifugals. The whole
driven by an old battery of Lancashire boilers. Most
of the machinery is French, or by Manlove, Alliott and
Co., Limited. I understand that the above estates are
at present endeavouring to raise capital in order to
equip the factories with modern machinery. The
buildings and offices are very imposing. Cultivation
appears fair.
Casa Grande. — This estate has a well-equipped
factory. It has three mills, 32-inch diameter rollers.
The first mill is new, by John McNeil and Co. The
triple-effect evaporator and vacuum-pan are of copper
and are old ; made by Fawcett, Preston and Co. ,
Limited. Six centrifugals, Weston's type (American).
The boilers are Lancashire, and mechanically fed with
bagasse, dried by hot air. It is claimed that the
boilers only require 50 per cent, of bagasse, and that
the mills crush fifty tons of cane per hour. It is
intended to install a battery of Babcock and Wilcox
boilers shortly. There is a distillery in connection
with this factory.
Cartavio. — I was unable to visit this estate, as the
bridges were down, owing to floods. I have heard,
however, that this factory is well equipped. It is
managed by two Scotsmen from Demerara.
Satjsal. — Is situated at the head of the valley. At
present the factory is poorly supplied with machinery.
One turbine-driven three-roller mill, 32 inches by
72 inches (Fawcett and Preston, 1871). Triple- effect
evaporators, McCune, Harvey and Co., and vacuum-
pan ; Lancashire boilers. Bagasse has to be spread to

160 PERU OF THE TWENTIETH CENTURY
dry. It is at present proposed to increase plant to
treble crushing capacity and install new evaporator.
This factory is kept in perfect and clean condition, and
appears to be very well organized.
Laredo. — This is a well-equipped factory. The
cane is fed to conductor by means of a crane, which
lifts the cane from cars and places it on an inclined
plate at side of conductor, whence it is fed to conductor
by, say, four or five men. There are two three-roller
mills, 30-inch diameter rollers, triple-effect evaporators,
and large modern vacuum-pan by John McNeil and
Co. It is proposed to install a new treble crushing-
plant mill, 36 inches by 78 inches. Cultivation seems
good. In the Chicama Valley the supply of water for
irrigation is somewhat short at certain seasons, and
causes friction between the estates. The Government
has had an American expert investigating the sources
of supply for two years, with a view to increasing
them. All of the above estates seem to be fairly well
equipped with railways and rolling-stock, and in all
cases have railway communication from factory to
coast. In cultivation, the use of steam-ploughs is
fairly general.
Other sugar estates of some consequence are :
Shipping Port. Factories and Estates.
Pacasmayo  Lurifico.
Chimbote  Tambo Real, Vinzos, and Suchiman.
Samanco  San Jacinto, San Jose.
Supe  Huayto Paramonga, San Nicol&s, and Car-
reteria.
Huacho  Andahuasi and El Ingenio.
Chancay  Palpa and Huando.
Anc6n  Caudivilla, Chuquitanta, Infantas, Hua-
chipa, Nerveria,Naranjal, Chacra-Cerro,
and Chacra-Grande.
Cerro Azul  Arana.
Callao  Monte Rico, La Molina, La Estrella, Cara-
ponga, San Juan, La Villa.
Tambo de Mora  San Jos6 de Chincha, Laran.
Pisco  Caucat6.
Ohala  Chocavento.
Arica  Tomasiri.

CHAPTER XIII
Agriculture (continued) — Climate and soil — Sugar-cane culture — Guano
fertilization — Deposits — Guano characteristics — Suitable soil — Insect
pests — Coast cultivation — Time for cutting — The average yield — Ex
periments with nitrate manure — Machinery — Antiquated plants and
equipments — Opportunities for manufacturers of sugar machinery —
Typical installation described — Handling the bagasse and massecuite.
The whole coast of Peru is remarkable for the small-
ness of the rainfall. In some few sections there are
occasionally copious periodic rains ; the principal sugar
cane-producing valleys, however, depend entirely upon
irrigation for their water-supply. Considering the ex
tremely small amount of rainfall, one would naturally
expect to find a low relative humidity, but, as a
matter of fact, along the immediate coast it registers
moderately high — from 72° to 84°. Nevertheless, the
Peruvians consider that they possess a "dry climate."
The effect certainly is not that of a humid atmosphere,
neither is it of a steamy or an enervating nature.
The dull grey skies, which last for weeks together
at Lima and its immediate neighbourhood, are very
depressing to the new-comer ; but they are scarcely
regarded by the inhabitants. It is decidedly interest
ing to note in connection with this atmosphere that
one encounters, and especially on the coast, the remains
of numerous early inhabitants naturally mummified,
the cloth in which their bodies were buried being
found still in a state of excellent preservation.
Irrigation is carried on in Peru under very
favourable circumstances, especially in connection
161 11

162 PERU OF THE TWENTIETH CENTURY
with the cane-fields, since there is an abundance
of water to be obtained, and nothing has to be paid
for it ; while the first cost of irrigating ditches is
very small, and the maintenance equally so. The
underground drainage in most of the valleys, where
sugar is grown, is excellent and complete ; in some
places, from the cliffs bordering the sea, little rivulets
may be seen emptying their waters into the ocean —
seepage-waters from the valleys above. These valleys
slope gently toward the sea, and appear almost like a
level plain. They also slope slightly toward the
river-bed. The underground drainage strata varies in
depth ; in some of the lower lands seepage-water is
found within a few feet of the surface.
Flooding and drainage form the one thorough and
permanent method of reclamation, if properly carried
out. As nearly all the coast-line of Peru consists of
lands deeply impregnated with salts and alkali, irriga
tion and flooding form the best possible treatment
for them. The process adopted is first to reclaim and
then to irrigate, according to the usual methods ; but
it often happens that there is not a sufficient amount
of water for thorough washing, or that the young
cane already growing would not bear the addition of
so much water. The process of irrigation upon some
of the estates which I visited showed that the water
was run around and across the fields in ditches placed
at mathematical distances, and only very occasionally
over them. On other fields, however, it was found
that these were entirely flooded and allowed to absorb
the matter gradually. One expert stated to me that
if irrigation water has passed over a field badly in
fected with alkali, the same water should not be used
for other fields ; and he suggested the throwing of a
layer of fine dirt over the irrigated furrow before the
water has completely evaporated. This hinders evapora-

CANE IRRIGATION 163
tion, preventing the alkali from coming to the surface.
It is to be feared, however, that this practice, however
excellent it might prove, would not be practicable in
many districts of Peru, owing to the large amount of
labour which it would require ; while, on the other
hand, the same effect would be produced when the cane
was high enough for the leaves to shade the ground.
The success of irrigation in Peru, as in Egypt, has been
undoubted ; and, indeed, but for that, cane-growing
there would never have attained the dimensions of
prosperity which it possesses to-day.
Both the soil and the climate of Peru demand a
considerable amount of fertilization for the cane, by
artificial means; and, fortunately for the country, the
resources are found immediately at hand. In some
sections of the Republic the growth of cane is gradual,
requiring rather a longer time to mature than in other
countries, although there are three or four months in
the year when the cane grows vigorously, quite out of
proportion, indeed, to the gradual growth of the other
months. Provided the cane can be kept growing
gradually after this period, and that the change from
the rank of the gradual growth be not too sudden, this
vigorous advance is found advantageous. It is supposed
that this change is not occasioned so much by any
marked lowering of temperature as by the shorter
days with consequently less sun, together with the
damp mists, which spread, like a chilling blanket, over
the lower portion of the valleys, rolling in direct from
the sea. Inasmuch as the soils are usually deep, con
taining a large amount of lime-water and sodium salts,
fertilizers are easily decomposed, and slow-acting
fertilizers undergo a more rapid decomposition in these
soils than in many others.
The immense guano deposits which are found along
the Peruvian coast form the best kind of fertilizer that

164 PERU OF THE TWENTIETH CENTURY
can be used. Some of the nitrogen contained in these
guanos is in the form of free ammonia and other easily-
decomposable compounds. This ammonia is so strong
at times, that the fumes given off from guano, stowed
in the holds of a ship, are almost insufferable. The
preservation of so much of the nitrogen is due to the
absence of rains, that would otherwise leach it out.
The dry, sheltered spots where the guano is found have
afforded almost perfect storehouses, where decomposi
tion can proceed and convert the fertilizing elements
in a reasonably available form, and yet conserve them.
After using guano with considerable advantage upon
its own cane-fields, Peru commenced to export it in the
year 1845, both Europe and the United States becoming
prompt and keen customers. Owing to the unfortunate
loss of its principal guano deposits as one out of the
many serious results of its war with Chile, between
1879 and 1884, Peru had been shorn of one of its most
prolific sources of natural fertilization ; but it still
possesses a number of islands, large and small, in the
sheltered coves and nooks of which sea-birds and seals
make their homes. At one time these nervous and
easily scared denizens took flight, and practically
deserted the Peruvian coast ; but, quite unexpectedly,
they came back one happy day, and have remained
constant to their habitations since. The Government
have now issued new regulations for preventing dis
turbance of the birds during the breeding season, and
inspectors have been distributed along the coast to
see that these regulations are observed. The close
season is from October to March inclusive.
The guanos of Peru consist of three different classes :
those containing a high percentage of phosphoric acid
and comparatively low nitrogen ; those containing a
fair percentage of phosphoric acid and high nitrogen ;
and those containing a fair amount of each. It is the

CANE MANURING 165
first of these three classes which is exported in large
quantities, the second class being found only in small
amounts. The third class is the one used by most of
the sugar estates, its principal value consisting in its
nitrogen, much of the Peruvian soil being already well
supplied with available phosphoric acid.
The Peruvian Corporation derived a net income of
£103,015 for the year 1909-10 from guano sales, as against
£140,850 for the previous twelve months. There were
23,000 tons shipped less, but the average quality of
the guano of the sale prices was maintained. Freights
ruled about 1 s. 9d. per ton over those of the year 1908-09.
It is believed that the present year will be a very good
one for the trade.
The guano which is exported is sold in accordance
with an analysis, which takes into consideration the
moisture, the sand, the silica, the nitrogen, and the
phosphoric acid. Several laboratories have been estab
lished upon the principal guano islands, and here the
stuff is carefully analyzed. If specimens are not up
to the standard, the quantities are rejected, and are then
used as reducers for guano of extremely high grade.
While a good deal of the exported guano is not sold
under any agreement as to special quality, some of the
estates which possess laboratories insist upon a guano
of a more or less certain analysis. The industry of
guano-collecting has been so long established, and the
collectors are usually so experienced in the different
classes and characters of the composition, that they are
readily enabled to distinguish the different qualities
without the necessity of conducting a chemical analysis.
Small vessels proceed from island to island gathering
guano here and there, until the cargo is deemed suffi
ciently large. Some estates collect and use as much
as 2,500 tons per annum.
During last year (1910) Peruvian agriculturalists

166 PERU OF THE TWENTIETH CENTURY
used nearly 25,000 tons of guano for their various
cultivations. As has already been shown, the Peruvian
cane-fields are singularly fortunate in possessing natur
ally rich and adaptable soils, as well as an abundance of
water supplied by irrigation, a congenial climate, and
a present sufficiency of labour. The only possible
drawback to success which could be encountered, and
which has not been referred to, is the existence of pests,
and here, it may be said, the country is equally happily
situated. Where they are found they are easily ex
terminated, and experience shows that a cane-field
once cleared of an insect pest is seldom again visited.
An insect, known as the borer, is occasionally found,
while the canes are sometimes attacked by other insects.
In rare instances a species of fungus has been discovered
upon some of the canes that were grown on wet soil, and
had fallen. As a general rule, the natural conditions
of the country are not favourable to the increase of pests,
and a very small amount of care and attention will
suffice to keep the fields entirely free from any dangers
of this kind.
Many of the sugar estates in Peru are of large dimen
sions, extending to as much as fifteen or twenty miles
square, and producing between 15,000 and 25,000 tons
of sugar each. The cane seems to grow in this country
with altogether unexampled facility, and anything from
50 to 60 tons per acre fields of cane is a result which is
regarded as by no means unusually high.
The cultivation of sugar-cane has extended along
the entire coast of Peru. In the Andean regions the
cane is cultivated in the deep valleys which cross the
tablelands, and there are many sugar plantations to
be found in the region of the montana ; but it is on the
coast, where I spent most of my time visiting the
estates, that they have reached their greatest develop
ment.

I
u

CANE CULTIVATION 167
^ In all of this zone the cane is cut and ground from
eighteen to twenty-two months after being planted,
and it usually produces from two to three crops from
one planting. To-day, however, the fields may be seen
littered here and there with hundreds of bags of guano,
which are brought from the adjacent Guano Islands ;
while in March, 1910, there arrived the first shipment
of Chilian nitrate, which is hereafter to be employed as
a manuring agent. The real value of the experiment
will be awaited with considerable interest, and in all
probability, as a result there will be an increased tonnage
per acre, and the growth considerably accelerated for
the present year (1911-12).
The cane, when cultivated, contains more than
14 per cent, of sugar, and yields an average of from
7,000 to 9,000 kilogrammes of sugar to each hectare,
and 16 per cent, and 17 per cent, of sucrose, as already
stated, is by no means exceptional. It is undeniable
that such returns have never been surpassed by any
other sugar-producing country in the world ; but large
as it is, it can be increased by an improved system of
cultivation of the cane, and by the employment of more
powerful and perfected machinery.
In conversation with one of the most experienced and
expert sugar manufacturers, who, by-the-bye, gained
his experience in the sugar-producing districts of the
Island of Trinidad, he said that " Never, in all his life,
had he come across such a wonderfully adaptable and
productive soil for cane as exists in Peru, and especially
on the coast." Although a cautious and canny Scot,
he permitted himself to wax enthusiastic upon the future
of the particular district where is situated the estate of
which he is the manager, and this estate hitherto has
considered itself very fortunate by being able to secure
75 to 80 per cent, of sucrose over weight of cane. My
informant, however, stated that this year, and in all

168 PERU OF THE TWENTIETH CENTURY
future years, so far as human judgment and effort can
be depended upon, the return will not be less than
90 per cent., while the working expenses will be reduced
still further, so as to make the net proceeds more
valuable. As a preliminary, a new mill equipment had been
ordered, to cost £12,000, and the entire cost of this will
be in all probability saved and paid for by the increase
in the first year's output. The estate is now fitted
with twenty-two miles of tramway line and equipment,
and this length is to be further extended to over thirty
miles, and a much heavier track introduced. There
can be no question that as soon as the neighbouring
estate-owners become aware of the economy in working
which will be effected by the introduction of new
machinery and improvements in the transportation
facilities, they will follow suit ; so that a new era of
prosperity, both for the sugar manufacturer and the
makers of modern machinery, is opening up in Peru —
a prosperity in which the British manufacturer might
easily participate if he displayed some little enterprise
and energy.
Naturally the ability of cane- mills to express juice
depends to a great extent upon the class of cane being
dealt with, and this in Peru, as in other countries,
varies considerably not only in size, but in quality, from
time to time upon the same estate. It is therefore
necessary to make careful inquiries and even tests
before being able to gauge the nature of the machinery
best adapted to the requirements of any particular
estate. Experience shows that rollers of small diameter
usually break up and disintegrate the cane to a much
greater extent than wider rollers, and yet the actual
squeeze administered and its effects are not always
productive of the best results.
Broadly speaking, the fast-running mills afford the

ROLLERS 169
best results, although the appearance of the bagasse
does not, perhaps, lead to this conclusion ; but, all
other things being equal, rollers of large diameter seem
to give improved results on account of their great surface
speed. Of the many important sugar estates which exist —
and there are between forty and fifty of these — it is safe
to say that not one possesses a complete and modern
mill. From time to time new additions to the existing
machinery are introduced — here a new defecator, there
some new pans ; now and again the type of boiler is
changed from the old to the tubular, so that many of
the mills present an accumulation of types of various
kinds of equipment. Already one of the more go-ahead
factories has installed dry double-crushers, and although
the mills are, as previously stated, usually three-rollers
of about the 32 x 66, 32 x 78, or 34 x 84 type, a new
class of mill has recently been introduced, such, for
instance, as that ordered for the British Sugar Company's
factory, which is one of the eleven-roller type.
The bagasse is still, with very few exceptions, carried
to the furnaces in carts and fed to them by hand. A
few multi-tubular boilers have been introduced, while
the juice from the mills is more often run up directly
to the defecator. The upright triple effect seems to be
the most suitable. There are a number of copper
vacuum pans still in use, and doing excellent work.
Massecuite is handled in different ways in Peru, and
not as I have witnessed in India, Egypt, Trinidad,
and Barbadoes, for instance, where it is run into large
tanks and allowed in some factories to crystallize,
afterwards being shovelled into boxes by hand, and
emptied into the centrifugals ; while, in other factories,
it is run into massecuite cars, and, after being allowed
to cool, is dumped into a reservoir from which the centri
fugals are charged.

170 PERU OF THE TWENTIETH CENTURY
The advance in the sugar export industry can best be
understood by a glance at the accompanying figures :
For the year 1907, an amount of 110,615 tons =
£P827,298 ; for 1908, 124,891 tons=£Pl,048,231 ; 1909,
125,350 tons=£Pl,159,897, including all classes — crys
tallized, granulated, " mascabada " (inferior quality),
and crude. In 1910, the total amount reached 130,000
tons, in addition to the 30,000 consumed locally.

CHAPTER XIV
Agriculture (continued) — Cotton — Classes cultivated — Comparison
between Peruvian and South American — Statistics, 1903 - 1909 —
Cotton-seed oil — Wool-growing industry — Hides — Coca-plant —
Cocaina — Cocoa — Rice cultivation and imports — Tobacco — Wheat
cultivation — Samples tested — Barley — Maize — Rubber — Ignorant
method of collecting — Exports for 1902 - 1909 — Government
encouragement of cultivation.
Next to sugar, cotton undoubtedly occupies the second
place in importance in Peru's agricultural exports.
Its cultivation dates from time immemorial, as is proved
by the many specimens of cotton cloths which have
been, and <are still being, found in the tombs of the
earlier inhabitants of the country. In common with
sugar, cotton possesses many natural facilities and
advantages in Peru which are unknown in other countries,
not excepting Egypt, West Africa, and the United States.
The classes cultivated are various, and may be enu
merated as follows :
Peruvian cotton (Gossypium Peruvianum).
Upland cotton (G. herbaceum).
Sea Island and Mitafifi cotton (G. Barbadense).
Chanchamayo.
Peruvian cotton, or G. Peruvianum, is grown on an
extensive scale, being found chiefly in the valleys of
Piura. The plant grows to a considerable height —
namely, from 9 to 15 feet — and its life is about six
years, after which period the crops begin to diminish, and
the capsule, or boll, to contain more seed than cotton.
Although the cotton-fields in Peru are irrigated in a
171

172 PERU OF THE TWENTIETH CENTURY
similar manner to the cane-fields, the G. Peruvianum
can dispense with water to a very great extent, and
upon many of the good lands one watering is sufficient
to insure a heavy crop.
The Upland, or Egyptian, cotton, on the other hand,
gives a better result if frequently watered ; the same
may be said with regard to the Chanchamayo class.
As already stated, the department of Piura is the
principal centre of the cultivation of these classes of
cotton, the districts of Catacaos, Sechura, and La Chira
being those in which the best kinds are produced. Most
of these lands have been formed apparently by the
deposits from the rivers, and undoubtedly at one time
they were covered with forests of the Algarrobas, or
horney-mesquite, trees (Prosopis dulcis). The cotton-
plant is sown in small holes dug from 15 to 21 feet apart.
The ground is seldom touched by a plough, and is watered
by ditches upon the usual irrigation principle. I have
observed that those fields which belong to the native
peasantry — and a great number of such small holdings
exist — are allowed to fall into a very dirty and weedy
condition ; whereas those which are owned by foreign
corporations or the wealthier class of Peruvians are
usually kept well cleaned and carefully trimmed. In
some cases the spaces which are left free between the
cotton-plants are used for the growing of various
vegetables. The first crop, generally a small one, is
obtained after the first eighteen months ; but year by
year thereafter they increase until the sixth is attained,
when the production commences to fall off.
The fibre of Peruvian cotton is long, and frequently
exceeds 35 milhmetres, but it is rough in texture, being
known upon the London and Liverpool markets as
Full Rough Peruvian. The average annual amount
of this class, as well as of the Moderate Rough, is
between 1,700 and 1,750 tons of ginned and cleaned

COTTON 173
cotton. It obtains a far higher price than the Egyptian
cotton, on occasions as much as 30 per cent, more for
the Full Rough, and 15 per cent, for the Moderate
Rough. Great Britain and the United States are the
principal purchasers.
The Sea Island and Mitafifi cottons come next in
value, but they are not grown so largely as the first-
named on account of their requiring special and rather
expensive machinery for their ginning. The cultivation
is therefore limited to certain valleys, which are those
of Pativilca, Supe, and Huacho. The Upland, or
Egyptian cotton, has become quite acclimatized in all
the valleys along the coast of Peru. It rarely reaches
in height more than 4J feet, and its life may be given
as of two years, although in some districts it is prolonged
to three. The Chanchamayo variety is a spontaneous
product of the montana, or highland, regions, but its
quality is not very high, and the exports are of an in-
finitesimally small character.
One of the most convincing evidences of the progress
of the cotton factories is afforded by the rapid growth
in the home consumption, which has multiplied ten
times while the exportation was trebling. The value
of the 1909 crop of the Caiiete Valley was £76,332 ; or
if the by-products be included, such as the cotton-seed,
oil, etc., the total passed £90,000. If the available
land now under irrigation in this valley which is suited
to the purpose were also devoted to cotton-growing,
the production would probably amount to three times
as much as in the last year, for which figures have been
gathered, while a wider use of concentrated fertilizers,
such as I have indicated, and more particularly those
with potash content, would not only increase the pro
duction per hectare, but further improve the quality of
the fibre. The demand for Peruvian cotton always
exceeds the supply, causing the very satisfactory situa-

174 PERU OF THE TWENTIETH CENTURY
tion which exists in respect to prices. Certain varieties
cannot be obtained from other sources, notably those
which so closely resemble wool as to be detected only
by chemical analysis. Some interesting data are avail
able in regard to the production of Canete, from which
the following table is condensed, the amounts being
given in kilogrammes :

Exported.

Consumed.

Totals.

1900 
1903 
1906 
1909 

510,081
804,648
1,108,8601,498,532

111,179
403,335468,627
1,045,900

621,260
1,207,9831,577,489
2,544,432

For 1909, the figures representing cotton exported
were 21,305 tons = £P1,206,988.
The exceptionally favourable conditions which pre
vailed last year (1910) have led to the very reasonable
conclusion that the figures for 1911 will reach, and
may even exceed, 25,000 metric tons of cotton exported
from the Republic.
As will have been seen, the total amount of cotton
exported (exclusive of by-products) from Peru for 1909
was 21,305 tons, representing a value of £P1,206,988.
This consisted of Upland, 13,715 tons = £P790,592 ;
Sea Island, 535 tons = £P36,452 ; and Native, 7,055
tons = £P399,644. The Republic's best customer was
England, which took 5,116 tons of native cotton, against
1,093 by the United States, 415 by Chile, 184 by France,
129 by Germany, and 102 by Panama. England also
took 10,498 tons of Upland and 500 tons of Sea Island.
The quantities taken by other countries were very small
comparatively. Much of the prosperity of the cotton industry is
due to the enterprise of the Government, under the
auspices of the Department of Fomento. In 1909 the

COTTON 175
Experimental Station was established, and it now
occupies a portion of the grounds of the Government
School of Agriculture, at Santa Beatriz, situated near
Lima, where 16 acres of its extensive area are devoted
exclusively to the cultivation of varieties of plants, classi
fication and selection of seeds, improvements of species,
and to trials of cotton-machinery.
With a view to experimenting upon yet a larger scale
in different manners and methods of cultivation, the
Experimental Station for cotton has established, at
Chancay, some 90 acres of experimental fields in which
the cotton-growers of that neighbourhood are partici
pating. The station is under the direction of Senor
Don Gerardo Klinge, who has made a long and careful
study in Peru of the whole industry, while he has also
travelled considerably in other cotton-producing States —
in fact, as he mentioned to me, in most of the countries
of the world. Senor Klinge entertained very optimistic
ideas of the future of the cotton industry in Peru, and
I am of opinion that such optimism is justified.
The cost of producing the native cotton is estimated
at but $0.5 j per kilometre, while from 750 to
770 kilometres of cotton per hectare ( = 2-4711 acres)
with a yield of 35 per cent, of lint may be depended
upon. The manufacture of cotton-seed oil has lately attained
some dimensions, which is the natural result of the
increased area in cotton cultivation. Some six or eight
plants already exist for the treatment of cotton-seed,
and others are in contemplation. Several of these
factories are to be found in the neighbourhood of Lima,
while a modern central factory, known as the Esquivel,
situated in the Valley of Chancay, is probably the largest
and most perfectly equipped. Another factory which
is worthy of mention is that located at Cerro Azul,
and belonging to the President of the Republic, Don

176 PERU OF THE TWENTIETH CENTURY
Augusto B. Leguia. It is fitted with both British and
American machinery. Messrs. Rose, Downs, and
Thompson, Limited, of Hull, have supplied the oil-
presses, and the Brown Cotton Gin Company, of New
London, Connecticut, U.S.A., are responsible for
the ginning-plant. At this factory, also a common
quality of soap, known as " Starita," is turned out ;
but for what purposes it is used I am unable to say.
The oil extracted from the cotton-seed is used chiefly
for lighting purposes in the mining districts, the lees
being employed for the manufacture of soap, while from
the residue, pressed into the form of an oily mass, the
oil-cakes, which are chiefly exported to the United
Kingdom, are made.
Cotton-seed was exported to the amount of 7,999 tons,
England again taking 80 per cent, of the amount —
namely, 6,107 tons.
The advance of the cotton industry can be traced
from the subjoined figures : Amount exported (including
both the product and by-product) in 1907 = 24,526 tons,
of a value of £P516,256 ; 1908 = 31,163 tons, of a value
of £P844,369; 1909=33,707 tons, of a value of
£P1, 245,599.
The Government has secured from the United States
the services of Mr. C. H. E. Townsend, a specialist in
plant diseases, to combat the lice, which do much damage
to cotton in the department of Piura. He is experi
menting with cultures of an insect from Italy, which
he used there successfully in similar cases.
The total exportation of cotton in 1909 was, as stated,
21,305 tons, and represented a value of £1,206,988.
The annual consumption of the several existing factories
turning out cotton goods may be calculated at 2,500,000
kilogrammes of ginned cotton fibre. The total produc
tion, therefore, would stand at 23,870,256 kilogrammes
of fibre for the year. I would draw attention to the

Typical Mountain Scenery

near Mount Vilcanota (Central Cordilleras) on the Cuzco Extension of this
Southern Railway.

COTTON

177

following comparative figures in order to demonstrate
the considerable advance which has been made in the
cultivation of cotton and the sale of by-products :

Kilogrammes (1903).

Kilogrammes (1909).

Pull Rough and
Moderate Rough
Smooth Peruvian
Sea Island cotton

2,473,077 = £103,869
4,906,686 = £176,640
271,596= £15,209

7,041,444 = £379,644
13,793,511 = £790,592
535,301= £36,452

Taking as a safe average of yield 588*07 pounds per
hectare ( = 2-471 acres) for the Rough Peruvian, 1,038
pounds of fibre per hectare for Sea Island, and 1,211
pounds of Upland cotton, the result of 56,313 hectares,
or 140,782 acres, is obtained for the area planted.
The preparation of this vast extent of territory, the
cultivation and harvesting, afford occupation to some
30,000 labourers, who live exclusively upon this industry.
On the coast of Peru, I found that the daily wage of the
labourer varies from 30 cents to 60 cents (say from
Is. 3d. to 2s. 6d.). In the United States, if I remember
correctly, the rates amount to $1.25 to $1.50 (say from
5s. to 6s.). The harvesting expenses are more or less
the same. In the United States the worker can, and
usually does, earn from 40 cents, to $1.00 (say from
Is. 9d. to 4s.) per 100 pounds, the usual rate paid, being
about 50 cents (2s.), and this sum also is earned upon
many of the coastal cotton-fields in Peru. In both
countries the interest upon capital is about the same,
being considered as equal to 6 per cent. Peru, as a
fact, gives a yield considerably greater than any other
cotton-growing country and this is expanding appreciably
year by year.
Although sheep-rearing had long been an industry
pursued with more or less thoroughness in South
America, especially in the Chilian section known as
12

178 PERU OF THE TWENTIETH CENTURY
Magallanes, for many years, it was only some years
later that the first serious attempt at sheep-raising was
made in Peru.
In the year 1876 a few sheep were taken to Chile
from the Falkland Islands, by Seiior Don Diego Duble
Almida, and these having proved far more profitable
than was anticipated, repeated consignments from the
same place continued to be received in the Republic.
To-day, while sheep-raising has an undoubted future
in South America, it can be followed only to a limited
extent in Peru ; since there are many obstacles which
have to be encountered, some of which cannot be easily
overcome, such, for instance, as combating with the
various diseases to which sheep are subject in a country
of many physical peculiarities.
The principal districts in which sheep-farming is
carried on are : Cajamarca, Junin, Ayacucho, Canas,
La Libertad, Arequipa, Puno, Acomaya, and Cuzco.
Upon the extensive grassy meads to be met with in
these parts, large herds of cattle and sheep are seen
grazing the pasture of various wild grasses, including the
bromos, grana, lapa, ichin, these being found especially
suitable to the particular breeds which are raised.
Sheep in Peru are bred principally for their wool, and
are divided into two classes — the native and the cross
breed. The former are of small stature, somewhat
irregular in form, and long-legged, such as one would
expect to find in animals which have to travel long
distances. The fleece is rough and scanty, but it could,
no doubt, by the adoption of careful methods, be im
proved. The half-breed are of a medium height, and
give a greater supply of wool than the native. These
animals are the result of the crossing of the Puna or
Hill sheep with the imported Merino.
Shearing takes place once a year, and produces an
average of from 2 to 3 pounds of wool per head, accord-

WOOL 179
ing to the size of the animal and the character of the
pasture upon which it has been fed. Upon one estate
in Atocsayco the yield was from 2 to 6| pounds per
head ; but upon some other estates the average pro
duction was only from 2 to 3 pounds per head. At the
first-named place the sheep are dipped regularly as a
protection against scab, and to eliminate the numerous
pests to which the animals are subject ; but I believe
that this is the only ranch in Peru where dipping is
regularly practised. Shearing takes place in the months
of November and December, lambing occurring in the
previous September and October.
The wool industry has maintained a somewhat un
even condition during the past three years, as may be
seen from the following comparative figures : 1907,
3,805 tons =£P428,013; 1908, 3,058 tons = £P297,277 ;
1909, 3,798 tons=£P394,346. The classes included
are, alpaca, llama, washed lamb's wool, unwashed lamb's
wool, and vicuna.
New energy is being displayed in connection with the
wool mdustry, and the country, where suitable for
sheep-breeding, undoubtedly could be made trebly as
profitable as it is. At the present time the wool product
does not represent a more extensive annual value than
£500,000, or, in quantity, a larger amount than from
400,000 to 500,000 tons. The wool-bearing animals of
Peru are sheep, alpacas, llamas and vicunas, while within
the past year or so Patagonian sheep have been intro
duced for cross-breeding, the enterprise, I am told,
being in the hands of a British Syndicate which owns
a sheep-ranch extending to over 130 square miles. It
is, perhaps, too early to speak with any definite assurance
as to the success of this enterprise, since it is necessary
for the imported sheep to live for several years in their
new surroundings before it can be said that they are
acclimatized ; but I am assured that so far the innova-

180 PERU OF THE TWENTIETH CENTURY
tion has been encouraging, and the mortality among
the imported animals has been extremely small.
Far more profitable in results and ancient in pursuits
is the cattle-raising industry, which is carried on prac
tically in every ravine and valley with which the country
abounds. It is even pursued on the tablelands at an
elevation of from 2,000 to 3,000 feet, where suitable
conditions are found. The cattle, which are met with
in immense droves, have a small but thoroughly healthy
appearance, especially in the Departments of Cajamarca,
Junin, Ayacucho, and Puno ; as well as in the Provinces
of Acomayo, Chumbivilcas, Canas, and Anta. Formerly,
the cattle were raised almost entirely for their fat — used
in the making of soap — and their hides ; but to-day
the flesh is consumed almost generally, the meat being
exposed for sale, cut up into unattractive and strange-
looking joints — which would puzzle the butcher and the
anatomist alike — upon the stalls of the markets, and
it fetches there a fair price. This beef is often tough,
and has nothing approaching the flavour noticeable in
Argentine or Chilian cattle. With more cross-breeding
from Argentine or British stock, Peruvian cattle would
do very well upon the magnificent pasturelands which
are available practically for the whole year round.
Hides form an important branch of the export trade
of the Republic, but the returns show, like those of the
wool industry, a wavering tendency. For 1907, includ
ing dry, raw, cured, and manufactured, there were ex
ported 2,873 tons = £P124,676; for 1908, 2,414 tons =
£P109,812 ; and for 1909, 2,508 tons = £P131,497.
Most of these were exported from Callao, which port
was responsible for 80 per cent, of the exports. France
purchased practically the whole of the different con
signments, and England the least.
Hides of various kinds are estimated at an annual
valuation of £140,000, an amount which, of course, is

HIDES 181
very trivial considering the possibilities of the country ;
moreover, they show a declining tendency, having, for
instance, fallen from £157,987 in 1906 to £124,676 in
1907. Between the years 1902-1905, the average was
£154,596. For 1909, the exports amounted, as shown
on previous page, to £131,497, for 2,508 tons. The
United Kingdom and the United States are Peru's main
customers for hides and manufactures made from them.
There are five well-known woollen factories in the
Republic which give employment to a large number
of workmen and workwomen, something over 600,000
kilogrammes of manufactured wool being put upon the
local market annually. This output is, however, wholly
insufficient to meet the demand, and as a consequence
there is a large import trade carried on. Woollen goods
to the value of £230,077 were imported in 1906, while
for the following year the figures swelled to £259,317.
The average for the three years 1902-1905 was £213,445.
The United Kingdom, Germany, and France, contributed
to the supply of such goods, but the United Kingdom
was far ahead (see Appendix).
A product which has also made remarkable headway
during the past few years is the coca-plant, which is a
native of the warm valleys of Peru and Bolivia, and the
leaves of which have been used by the Indians from time
immemorial, in a dried form, for chewing. In Peru the
plant is found growing in the form of a shrub, which
seldom exceeds 6 feet in height. It is largely cultivated
in the districts of Otuzco, Cuzco, Huanta, Tacna,
Huanuco, and Huanachuco. The plant grows much
better in the valleys lying at a height of from 1,000 to
2,000 metres above the level of the sea, and where the
temperature does not fall below 18° nor rise above
30° Centigrade. Great care has to be taken in collecting
and treating the leaves, but, unfortunately, I have not
sufficient space to describe, as I should like to do, the

182 PERU OF THE TWENTIETH CENTURY
whole process of planting, garnering, and preparing for
the market the leaves of this plant. That the mdustry
is a highly-important one can be gathered from the fact
that, after supplying local consumption, the exports
in 1905 amounted to 341,000 kilogrammes in the form
of leaves, and 6,800 kilogrammes in cocaina, represent
ing a total value of £200,000. In 1907 cocaine was
manufactured by twenty-four small factories, which
produced 5,914 kilogrammes worth £66,636. The
exports to Europe and the United States are made in
two forms, that in cocaina and that in dried leaves, not
only for the extraction of the alkaloid, but for the making
of wines, tonics, elixir, and other medicinal syrups.
There were 5,265 kilogrammes of cocaina exported in
1909, worth £60,287.
Readers must not confuse coca with " cocoa," which
latter product is as yet but sparsely cultivated, although
both climate and soil are eminently favourable for its
production. I have seen vast tracts of low-lying land
in the Province of Jaen, and in the Departments of
Amazona and San Martin, especially suited for the
development and growth of the cocoa-tree. It is in the
exuberant and extensive forests of the montana region
that the cocoa-tree grows spontaneously, that it is
principally cultivated. Outside of Peru the exquisite
taste and aroma of this particular cocoa is entirely un
known ; the whole of the amount produced is not
consumed in the country, since exports are made to
Bolivia and Chile. I look for a further and fuller ex
tension of the mdustry of cocoa-planting in the montana
zone, since it yields a considerable profit, and offers but
very little difficulty in handling.
Rice has been grown in Peru since the Colonial period,
and during the last few years much more land has come
under cultivation, owing, no doubt, to the heavy
protective import duties which have been introduced.

RICE 183
The northern coast districts, which are warm and other
wise favourable, are the particular localities best suited,
and experts assure me that in regard to the quality of
the rice raised, it is equal to the best kinds, which are
produced in any other part of the world. The two
varieties cultivated are the " Carolina " and the
" Jamaica." In the Department of Lambayeque, in
the Province of Pacasmayo, the best classes of rice are
obtained, and it is here also that they are found in the
greatest abundance. Unfortunately, it is impossible
to depend from year to year upon any regular crops,
the amounts of yield being entirely reliant upon the
abundance or the scarcity of water, a matter which is
not under the control of the agriculturist, but subject
entirely to the advance or delay in the waterflow of
the rivers. Thus the results of the crops must remain
uncertain until some scheme is introduced, as has been
effected in India, for instance, to regulate the supply of
the necessary irrigating waters.
The average amount of the annual rice-crop in Peru
may be put at 3,000 tons, with a corresponding value of
£450,000. In the year 1905 it reached but 2,641 tons.
Some of the more important estates have erected|mills
for treating the rice, and for the general use of all those
who devote their attention to the cultivation of this
grain there are several central mills erected in the towns
situated round about the principal rice-producing valleys,
of which the most important are : Ferrenafe, Chiclayo,
Pacasmayo, and Eten. Practically all these mills are
fitted up with the latest type of machinery and plant,
but there are still others in process of erection, or
contemplated, which offer opportunities to manufac
turers of this class of installation.
In spite of the native production referred to, Peru
imports a considerable amount of rice, the average value
being £60,000 ; but both in 1906 and 1907 this average

184 PERU OF THE TWENTIETH CENTURY
was far exceeded, the value being, for 1906, £107,222,
and for 1907, £205,904. The principal imports of rice
came from China and Siam. On the other hand, the
Republic over the same period exported rice to the value
of £61,537 in 1906, and £18,737 in 1907, its customers
being found among the neighbouring Republics. In
1909 there were exported 651,000 kilogrammes = £59,908;
and imported to the value of £84,015.
In regard to tobacco, the manufacture of which has
been a Government monopoly since 1909, although in
Peru there are lands which are suitable, and a climate
which is favourable for the cultivation of the narcotic
leaf, its production has not increased to any appreciable
extent. The plant is grown in Jaen, Tumbes, Jeveros,
and Huancabamba. Personally I am no judge of
tobacco, since I am a non-smoker ; but I have been
informed by connoisseurs that while the leaf grown in
Peru is undoubtedly of superior quality, and is much
preferred by the Peruvians themselves to any of the
imported tobaccos, it is of somewhat too strong and too
coarse a character ever to become very popular abroad.
This statement seems to be borne out by the fact that
some of the Peruvian tobacco is used for the purpose of
mixing with other milder tobaccos in the manufacture
of cigars and cigarettes ; but these are sold under
different marks and brands, and are consumed in the
country. The Government has done something in the way of
experiment in tobacco-cultivation, but in many districts
the industry has been abandoned entirely, notably in
the District of Chanchamayo, in the Province of Con-
vencion, and in the Department of Cuzco ; in all these
places it has been regarded as a failure. Probably,
were cultivation to have been pursued with more scien
tific skill, and had the tobacco-planters been instructed
how to prepare and how to fix up the leaf, the results

TORACCO 185
might have been more encouraging. The total produc
tion of the leaf at present does not exceed 950,000 to
1,000,000 kilogrammes, of which about one-fifth is
exported to the neighbouring Republics of Bolivia,
Chile, and Brazil. It is to be observed with regard to
the last-named Republic, that preference is given to the
tobacco from Loreto, while Bolivia prefers that of
Jaen. Peru imports its tobacco, snuff, cigars, and
cigarettes from France, Germany, and Spain, the
average annual value of such imports being between
£15,000 and £20,000. For 1909 the figures were £15,270.
By a Government decree of March, 1910, the price
of cigarettes is fixed at 1 cent each throughout the
Republic, and a company, locally financed, exists
which exploits the tobacco mdustry under the super
vision of the National Tax-Collecting Company. This
latter owns, by purchase, the cigarette factories located
at Lima and in other parts of the country.
Among the other industries which the Spaniards
introduced was the cultivation of wheat, but whereas,
up till 1687, it was grown exclusively on the coast,
repeated earthquakes and other climatic reasons induced
the cultivators to go farther inland ; so that to-day
practically all the important wheat-fields of the Republic
are found situated on the tableland area. Travelling
through the Andean region, one comes across many
isolated little patches of vigorous-looking, broad-eared
wheat, especially in the north of Peru ; but the industry
has not by any means established itself firmly, and there
is abundant opportunity for both improvement in
method of cultivation and of area extension.
One of the reasons afforded for the small amount of
attention given to wheat-growing is the lack of the
necessary transport, a defect which will be overcome
gradually as the iron-rail makes its way, as it is finding
it gradually through the length and breadth of the

186 PERU OF THE TWENTIETH CENTURY
Republic. Land and labour are both available, and
with the placing of cheap transport at the disposal of the
cultivators, Peru ought easily to develop this agricul
tural industry, and then the grain produced would find
markets in spite of its several peculiar features.
With regard to these I may refer to certain samples
of wheat which were tested by one of my informants,
who pronounced them similar in appearance and
character — except that they contained more moisture —
to the Egyptian wheat, which has been imported into
various American countries, including the United States,
since the early seventies. Some of my readers may be
acquainted with the character of Egyptian wheat, and
in this event they will remember that the grain from the
Nile Valley is narrow and long in the berry, of a dirty-
white colour, and very dry and ricey. The Egyptian
wheat is of a very poor quality, the gluten especially
being weak and valueless. The Peruvian wheats are
somewhat cleaner and broader in the berry, and contain
a little more moisture and flour than the Egyptian grain.
Of the four samples to which I have referred, the per
centage of moisture in the dry wheats was rather high,
being as follows :
Per Cent.
1. Siete Esbigas (seven ears)  14-6
2. Chamora  15"2
3. Barba Colorada (red beard) ... ... ... 14-4
4. Rodondo (round)  14-2
Wheat is usually sown in Peru from March to May,
and in the valleys it is irrigated occasionally, two crops
often being obtained during the year. On the lofty
plateaux the rains provide sufficient moisture without
irrigation being found necessary. The average pro
duction per unit of area is ten times the quantity of
seed sown, although the yield is less bountiful where
the soil is not cultivated. The Peruvian millers mainly
use imported wheats for the production of flour, milling

BARLEY AND MAIZE 187
only a very small portion of native-grown grain. At
the present time the mills in Peru grind Australian
wheats, but Chile and the Pacific Coast ports of North
America sometimes supply a portion of the requirements.
The importations of wheat from California and Australia
exceed 400,000 tons annually. In 1906 the value of
the imports was £266,517, and in 1907 £240,714, the
average between 1902-1905 being £206,827. In 1909,
wheat was imported to the amount of £269,067.
Barley is cultivated upon the lands where wheat is
grown, its principal use being food for horses and pack-
mules, the localities where it is mostly grown being the
Departments of Ancachs and Arequipa.
Maize, the cultivation of which cereal has made great
advance during the past few years, can be found flourish
ing throughout the whole national territory, the only
part of the country in which it is not sown being the
cold and cheerless region of the upper plateau. Per
haps the best quality is that which is produced in the
Cuzco district, and some connoisseurs have pronounced
the grain which is produced here to have been the choicest
and most largely-yielding that they have seen . The well-
known French agriculturist, M. Vilmorin, for instance,
has said that of all the known kinds of maize, that of
Cuzco is " the choicest and most vigorous grain, of the
size of a bean, with a very thin pellicle, and very
farinaceous." It is worthy of mention that at the
St. Louis Exposition (U.S.A.) the Peruvian ears of
maize, which were exhibited, obtained a gold medal,
and formed a subject of lively discussion between the
agriculturists present, who desired to use them for seed.
The poor people live almost entirely upon maize,
with rice, and I have seen them consuming both greedily,
hardly cooked, and before either was thoroughly ripe.
So far the export of the grain is still in the incipient
stage, but recently some small lots were shipped to

188 PERU OF THE TWENTIETH CENTURY
Central America. With the advent of the Panama
Canal and the improvement in shipping f acilities, which
will then be forthcoming, we may reasonably expect a
development of Peruvian maize export, the existing
figures being of little or no importance. In 1906 the
whole value amounted merely to £812, while for 1907
the figures dwindled to £680, the sole foreign customer
being Bolivia.
Although the existence of the rubber-tree has been
known in Peru for considerably over a century, the
mdustry of extracting the gum for commercial purposes
can only be said to have commenced in 1882, and the
systematic exploitation of the mdustry from 1885.
Throughout the extensive and beautiful timber regions,
teeming with the exuberance of perpetual spring, with
all its varied fertility and exquisite colouring, the rubber-
tree, producing the veritable Castilloa eldstica, is found
flourishing as in few parts of the world. Upon the banks
of all the rivers and rivulets which directly or indirectly
empty themselves into the Amazon, this handsome tree
is found yielding the precious caucho in abundance, and
of a quality as fine as any to be met with in Brazil or
the Far East.
Previous to 1885 the gum was obtained from the forests
on the banks of the principal tributaries of the Maranon
River, chiefly the Tigre, the Morona, and the Pastaza.
From 1885 to 1897 the caucheros (rubber-gatherers)
commenced to work, but in a very superficial manner,
the Valley of the Ucayali ; but here, as elsewhere, their
ignorance prompted them to cut down the trees instead
of " milking " them, their process being to fell the tree
close to a hole which they had previously made in the
ground in order to receive the milk, which then under
went a rough process of coagulation by means of a
solution of soap and the juice of a native plant known
as vetilla.

RUBBER 189
By this method (still considerably in vogue) each tree
furnishes upon an average of 20 kilogrammes of rubber,
which is exported in the form of planks or cakes,
each one of which weighs from 40 to 50 kilogrammes.
It is needless to say that even with the immense supply
of rubber-trees of which Northern Peru is possessed,
if this clumsy and thriftless method of gathering the
caucho is persevered with, it is only a question of time
when the forests will be completely exhausted.
I have seen many varieties of rubber-producing trees
and plants in Peru, some of which are not even known
to botanists ; but the most common kind belongs to the
family euforbacias, species hevea brasiliensis, from which
jebe, the highest grade of Para rubber, is obtained. This
latter tree is found at its best in the humid river-lands
situated below the 300-feet level, and where it grows
to a height of from 60 to 75 feet. The castilloa, belong
ing to the family ulmaceas, and which is the rubber-tree
par excellence of both Central America and Mexico, is
also found in Peru, usually in the drier lands, which are
situated higher up in the montana.
If only the natives could be induced to adopt the
tapping process instead of felling the entire tree, infinitely
more lasting — if not such heavy first — results could be
obtained. By periodically tapping, besides saving the
tree, a production of rubber of 10 kilogrammes per
annum, as against an immediate production of 20 to
25 kilogrammes by felling the tree, could be obtained ;
and since a rubber-tree, if not ill-used, will live for many
years, the practical advantages gained are obvious.
The last-named process I have seen pursued in the
Malay Peninsula, Ceylon, and Java, as well as in other
countries ; by its adoption the owners of the rubber-
estates enjoy a regular harvest which may be as firmly
depended upon as any ordinary crops of fruit or vege
tables.

190 PERU OF THE TWENTIETH CENTURY
Upon an average, three peons can work in a day a
square consisting of from 100 to 150 rubber-trees, which
will probably be found scattered indiscriminately over
an area of about 100 acres. The labourers engaged,
whether in felling or in tapping the trees, receive no fixed
wages, their remuneration depending upon the quantity
of the crude latex which they can bring in. As a rule,
the labourer is paid something like 75 sols ( = £7 10s.)
per quintal (hundredweight), of jebe, and 40 sols ( = £4)
for sernamby, which is the residue or lower grade remain
ing after the preparation of jebe.
Almost all of the rubber gathered in the Peruvian
Orient, comprising the larger portion of the country's
production, is exported from the Amazon port of
Iquitos, making its way thence down to Manaos, and,
later on, to Para, both of which ports are in Brazil,
and thus it passes for " Best Para Rubber." Iquitos
lies some 2,653 miles up the river from the Atlantic
Ocean, but, nevertheless, it is a regular port of call for
lines of ocean steamers from New York, Liverpool, and
Hamburg. Practically all the rubber which is shipped
via the Pacific Ocean goes over the lines of the Southern
Railway from Madre de Dios, Inambari, and the Lower
Urubamba country, and is exported from the port of
Mollendo. The export duty is 24 centavos per net
kilogramme, or £24 per metric ton. At the present time
there is a proposition before the Peruvian National
Congress to change this duty to one of 10 per cent, on
the London Market value, but it is doubtful whether this
will be accepted, the Chamber of Deputies having
recommended the lower figure of 8 per cent.* I attach,
herewith, a table showing the amount of production of
rubber in Peru for the last eight years.
The Government sells tracks of virgin woodlands
* Since writing the above, the tax has been (May 10, 1911) definitely
fixed 8 per cent., and came into force July 1, 1911 (see Appendix).

PRODUCTION OF RUBBER IN PERU FOR EIGHT YEARS, 1902-1909.

1902.

1903.

1904.

1905.

1906.

1907.

1908.

1909.

First Half
of 1910.

Kilos.

Kilos.

Kilos.

Kilos.

Kilos.

Kilos.

Kilos.

Kilos.

Kilos.

Jebe natural

719,700

176

798,776

763,123

763,123

833,259

800,874

978,540

313,694

Sernamby Jebe

225,258

—

300,729

330,549

330,549

604,213

378,542

703,112

199,272

Caucho

89,299

14,886

78,571

101,810

101,810

142,223

126,419

133,810

50,382

Sernamby Caucho

648,945

2,792

1,042,848

1,343,137

1,343,137

1,398,230

1,209,836

986,105

530,745

Rubber not specified

16,339

2,089,997

—

—

—

—

—

—

—

Total 

1,700,541

2,107,851

2,220,924

2,538,619

2,575,127

3,027,925

2,515,671

2,801,567

1,094,098

aww

CD

192 PERU OF THE TWENTIETH CENTURY
suitable for rubber exploitation, and situated in the
country " terrenos de montana," at the rate of 5 sols
(10s.) per hectare (equal to 2J acres), and also grants
concessions for the exploitation of the natural rubber-
lands under very liberal conditions — that is to say, either
by granting a rental of a specified number of hectares,
or by leasing groups which, in Peru, are called estradas,
of 150 trees each, on the condition that 2 sols (or 4s.)
be paid to the Government for every 46 kilogrammes of
rubber extracted. In either case the lessee or concession
aire undertakes not to destroy the trees.* How reason
able are the taxes demanded by the Peruvian Govern
ment can be seen by comparing them with those prevailing
in Brazil, where the exportation of rubber is taxed with
the duty of 24 per cent, ad valorem, which represents
nearly 40 centavos per kilogramme, as against 8 centavos
in Peru upon jebe. In Bolivia the duty is as high as
16 centavos. * See Appendix.

CHAPTER XV
Railways — Growth of systems — Existing lines — Standard gauge — Narrow
gauge — New construction — Southern Railroad — Cuzco division —
Track — Bridges — Rolling-stock — Freight — Passengers — Workshops-
Management — Central Railroad — Oroya section — Remarkable scenery
— Road — Bridges — Tunnels — Stations — Freight — Handicaps
— Future prospects.
The comparatively small amount of iron-rail to be found
in Peru to-day occasions some surprise when one comes
to remember that it was in this country that the second,
if, indeed, not the first, railway in South America, was
built. I refer to the short line of 13*7 kilometres,
which connects the port of Callao with the capital of
Lima. During the last sixty years the length of line
constructed in national territory has not exceeded
3,000 kilometres (less than 2,000 miles). The gauges
are by no means uniform, ranging as they do from 0"60
to the extreme width of L45 millimetres.
Considering also the immense amount of revenue
which the Republic has enjoyed in years gone by from
its guano and nitrate deposits, as well as from other
sources, one might reasonably have expected Peru to
be possessed of the finest railway system of any South
American Republic. Different administrations of dif
ferent periods have made spasmodic efforts to move in
this direction, but it would seem that when confronted
with the estimates of cost, and faced with the topo
graphical difficulties with which the country literally
bristles, the programme was usually modified, and but
little of what was intended actually done.
193 13

194 PERU OF THE TWENTIETH CENTURY
It is to be admitted that Peru does not offer a tempting
field for railway construction, owing principally to the
immense distances which separate its different centres,
its modest population, and the many stupendous physical
obstructions which have to be overcome. It is all the
more noteworthy perhaps to find this Republic possessed
of a railway which, for sheer audacity of conception
and ingenuity in construction cannot be matched by
any country in the world. I refer to the famous Oroya
Railway section of the Central Railway of Peru, and
familiarly called the " Railway in the Clouds," which
cost the sum of nearly £5,000,000, on the greater portion
of which dividends never have been, and can never
possibly be earned.
The most earnest step taken by any President in
regard to transportation matters in Peru was that of
the late Senor Candamo, who, in 1904, promulgated
a new law regarding railways, by which the annual
amount of £200,000 was to be devoted to their con
struction, such amount being the entire proceeds of the
tax on tobacco, and which is now a Government mono
poly. Every Presidential programme since then has
contained eloquent promises with regard to the con
struction of railways, while numerous and important
concessions are continually being granted by the Govern
ment of Peru for the extension of existing and for the
construction of additional tracks, North American
capitalists being the most energetic to obtain these
concessions, and the most dilatory in carrying them
into execution. Several banking establishments in
Europe are at the present time negotiating with the
Government, as they have at times past negotiated with
its predecessors, to advance money for the construction
of new railways; and one important scheme, known as
the Amazon and Pacific Railway, has recently been
before the attention of Congress, whose final decision,

:/'."'l1.'''

4BWWT?

Puente de Chiu.on (Ancon-Lima Railway).

- irg stest

Puente de Piedro (Stone Bridge) at Lima.

S£*gvf4t ;«£* > .

Puerte de Chaupichaca, on the line of the Central Railway.

RAILWAYS 195
in regard to it and certain important modifications
demanded, is favourable to the project.
The national railway transportation of Peru is to-day
under the management of a British concern, known as
the Peruvian Corporation, Limited, with a total debenture
and share capital of £21,610,121, and which, some
twenty-one years ago, took over from the Government
all the railways with their lands, as well as other posses
sions, as representative of the foreign bondholders
whose money for the most part had paid for them, and
in consideration of which the whole of the Foreign
Debt of the Republic of Peru was to be regarded as
cancelled. This Corporation manages altogether seven
railways, one line of lake-steamers, a large cotton-mill,
and a land colony. The railways are as follows : the
Southern, the Central, the Guaqui (Bolivia), the Trujillo-
Salaverry, the Pacasmayo-Guadalupe, the Paita-Piura,
the Chimbote-Tablones, and the Pisco to lea Railway.
The steamers are conducted in connection with " the
Lake Titicaca Service." The cotton-mill is that of the
Peruvian Cotton Manufacturing Company, Limited,
and the land colony is known as the Perene Colony,
and this is about the only present unremunerative asset
which the Corporation possesses.
While Mexico as well as Chile lay claim to having built
the " first railway-line in Spanish- America," Peru avers
that the first track to be laid upon the Southern Con
tinent was that small section of line, already mentioned
above, running from the port of Callao to the capital
of Lima, in the year 1848, the length being precisely
13*7 kilometres (about 7 miles). To-day the system
has grown to nearly 3,000 kilometres ( = 1,825 miles),
which is still inconsiderable when compared to such
Latin-American States as Mexico, Argentina, Brazil,
and Chile. The Peruvian railway systems are made up
as follows :

196 PERU OF THE TWENTIETH CENTURY

Standard Gauge Lines.
Northern Section : Kilometres
Pafta to Piura  97-100
Eten to Ferrenafe  43-100
Chiclayo to Patapo  24-100
Pacasmayo to Guadalupe y Yonan  96-100
Central Section :
Lima to Chorillos  14-052
Lima to Magdalena del Mar  7-600
Lima to Callao ... ... ¦•• ••• 13-717
Callao to La Punta  2-600
Callao to Bellavista  3-400
Lima to Ancon... ... ... ... ... 38'200
Callao to Oroya  222-000
Ticlio to Morococha  14-650
Oroya to Cerro de Pasco  132-000
Cerro de Pasco to Gollarisquisca ... ... 43-000
Oroya to Huari  20-560
Southern Section :
Pisco to lea  74-000
Mollendo to Arequipa  172-200
Arequipa to Puno ... ... ... ... 351-760
Juliaca to Sicuani  197-600
Sicuani to Checcacupe  41000
Arica to Tacna  63-000
Electric Section :
Lima to Callao y La Punta ... ... ... 15-175
Lima to Chorillos  13-150
Lima to " La Herradura "  17 000
Total  1,717:064
Narrow Gauge Lines.
Northern Section :
Piura to Catacaos  10-650
Bayovar to Reventaz6n ... ... ... 48-480
Pimentel to Chiclayo  24-140
Eten to Cayalti  36-372
Salaverry to Trujillo y Ascope  76-000
Huanchaco to Tres Palos  67-500
Trujillo to Laredo y Menocucho  25-950
Chicama to Pampas  44-900
Chimbote to Tablones  57-000
Central Section ;
Supre to Barranca y Pativilca  12-000
Supre to San Nicolas  6-000
Rio Pativilca to Paramonga  7'500
Playa Chica to Salinas de Huacho  10-000
Chancay to Palpa ...  25-000
Casapalca to El Carmen  4620
Southern Section :
Cerro Azul to Canete  10000
Tambo de Mora to Chincha Alta  11-920
Ensenada to Pampa Blanca  20-000
Total  2,215:096
Or, an average of 1,384 miles, exclusive of some hundreds of kilometres
which have since been acquired by purchase.

RAILWAYS 197
It is to be observed that since this list was compiled
several small and scattered sections have been com
pleted, and are now in working, thus bringing up the
total mileage of P.C. lines to close upon 1,850 miles.
Additionally, I may mention that many of the above
enumerated lines, although of importance in a great or
less degree, are small, the number of stations varymg
from twenty-two, as in the case of the Callao to Oroya
section, to only two, as on each of some sixteen sub-
branches or connections.
The amount of capital actually expended upon the
whole of the constructed lines and those under construc
tion has exceeded to date £35,000,000. An immense
amount of rolling-stock of all descriptions has been pro
vided, some of it, however, being antiquated and in
efficient, while the condition of the tracks varies accord
ing to the particular management in control. All the
State railways are under the control and manage
ment of the Peruvian Corporation, and are well main
tained, generally speaking. The other lines are the
respective properties of sugar-estate owners, mining
companies, and private concerns, and these call for little
further comment.
The exact amount already expended, the sums now
being laid out upon new construction, and the amount
in contemplation relating to an important new northern
line, will be found of service in the following table,
which is believed to be up-to-date :
Lines already in operation belonging to the State .£24,810,131
Lines already in operation belonging to private
concerns  6,271,485

£31,081,616
Additional sections as opened and in working, about 918,384
Lines now under construction belonging to the
State  1,866,088
Lines for which concessions have been granted ... 2,000,000

£35,866,088

198 PERU OF THE TWENTIETH CENTURY
In speaking of the Peruvian railways, it will be de
sirable to refer to them in their respective groups or
systems, the most important of which are the Southern
and the Central.
The length of the Southern Railroad is 594'19 miles,
made up as follows : Mollendo to Puno, 325 '1 miles ;
Guaqui to El Alto, 55*3 miles ; El Alto to La Paz,
5*6 miles ; Juliaca to Cuzco (branch), 209'9 miles. It
will be observed that I have included in this total of
594*19 miles the section from Guaqui to La Paz, which,
however, will be described in full in a later part of this
volume, my reason for so doing being that this section
now belongs entirely to the Southern system, and is an
integral part of its system. It may be remembered that
there is also a service of lake-steamers worked in con
junction with this railway, the boats running from Puno,
on the Peruvian side of Lake Titicaca, to Guaqui, on
the Bolivian side, the distance across being 128 miles.
The total track of transportation, therefore, which is
managed by the Southern Railway of Peru, amounts to
722-9 miles.
There are two gauges found upon this system — that
between Mollendo and Puno, as well as that between
Juliaca and Cuzco, being 4 feet 8| inches ; while the
Guaqui to La Paz section is 3 feet 3| inches (metre
gauge). The road-bed of the Mollendo-Puno section is
16 feet on embankment, 18 feet in rock excavation,
and 20 feet in earth excavation, as a general rule. The
ballast used is river-shingle, gravel, sand, and broken
rock. On this division (Mollendo-Puno) the rails are
60 pounds laid on Oregon-pine sleepers, 6x6x8, the
same weight of rail being used upon the Puno-Cuzco
section ; while from Guaqui to El Alto the weight is
40 pounds, and from El Alto to La Paz 60 pounds.
Upon the " Mollendo division " — that is to say, from
Mollendo to Arequipa — there are a considerable number

SOUTHERN RAILWAY 199
of stations, the first-named place being the terminal and
at the same time the port of entry for all through-goods
and passengers carried by the Southern Railway. Un
fortunately, Mollendo is anything but a good port, and
although the Peruvian Corporation have, in conjunction
with or upon behalf of the Government, expended a
large sum of money in building a breakwater and mole,
the actual position is but slightly improved, and it is to
be feared that Mollendo will for long fail to merit the
distinction of providing even a moderately safe entrance.
The Southern Railway Company has erected a well-
designed station at Mollendo, and goods-sheds of ample
dimensions, the construction being carried out in cast-
iron, masonry, wood, and corrugated iron.
Arequipa Station is built of cast-iron, with wooden
sheathing and corrugated-iron roof, the administration
buildings, which are practically new, being constructed
of masonry with wooden floors. There are fifteen other
stations on this division, all being built of masonry or
wood with corrugated-iron roofs.
The " Puno division " (from Arequipa to Puno) has
sixteen stations, exclusive of Puno terminal. Six of
these stations are of wood and corrugated iron, eight
are of masonry, and one is of brick. At Puno both the
passenger and freight sheds are of masonry with corru
gated-iron roofs. These structures are substantial and
neat, while there is an abundance of yard-room avail
able both at Puno and at the mole.
The " Cuzco division " (from Juliaca to Cuzco) has
twenty-three stations, eight being of masonry, nine of
adobe (or sun-dried bricks), and six of wood, all alike
having corrugated-iron roofs. It is unfortunate that
this last section upon the railroad, which is the most
recent to have been opened, has hitherto proved some
what unsatisfactory from a freight and passenger
carrying point of view. The former has not come up to

200 PERU OF THE TWENTIETH CENTURY
expectations, but there seems some chance of its pros
pects brightening. With regard to the passenger-
service, hitherto but an unsatisfactory state of affairs
has been met with. Upon occasions an entire train,
which is made up of passenger and freight cars, will fail
to carry more than four or five passengers ; and I under
stand that the inhabitants have shown themselves abso
lutely indifferent to the advantages which the railway
offers as a cheap and expeditious means of transporta
tion. The Indians cling slavishly to their primitive
method of animal- traction (llamas and burros — i.e.,
donkeys), while even among the more wealthy Peruvians
the existence of the railway is persistently ignored.
Such experience is certainly not encouraging either to
the Government, who built the line, nor to the Company
which runs it ; and but for the tourist traffic, which is
carried at a certain time of the year, it is doubtful
whether the line to Cuzco would be able to justify itself.
In regard to the gradients on the main line between
Mollendo and Sumbay, the maximum is 4 per cent. ;
from Sumbay to Santa Lucia, 3| per cent. ; and from
Santa Lucia to Puno it is but 1 per cent. On the Cuzco
branch, from Juliaca to Santa Rosa, the grade is 2 per
cent. ; from Santa Rosa to Araranca, 3 per cent. ; from
Araranca to Sicuani, 4 per cent. ; and from Sicuani to
Cuzco, If per cent. From Guaqui to El Alto the grade
is 2 per cent., and from El Alto to La Paz, 6 per cent.
There are several interesting bridges on the Southern
Railway, which may be described briefly as follows :
" Mollendo division," one deck-plate girder iron bridge,
100 feet span, crossing the Tingo Grande River ; " Puno
division," a new steel deck-plate girder bridge, consist
ing of two spans of 65 feet, crossing the Chili River,
made by the American Bridge Company, and erected
in 1908. The same manufacturers are also responsible
for the bridge crossing the Sumbay River, which was

SOUTHERN RAILWAY 201
finished as late as January of last year. It consists of
two spans of 65 feet, two spans of 41 feet, tower-span
of 30 feet, and a central steel tower 130 feet in height,
upon concrete pillars. There are no other bridges upon
this section exceeding spans of 25 feet.
On the " Cuzco division " (Juliaca to Cuzco) there are
also a considerable number of bridges, of which the
following are the brief details : Rio Maravillas, cast-iron
bents on screw piles 450 feet in length, eighteen spans of
25 feet ; Rio Calapuja, same as the Rio Maravillas bridge,
twenty-four spans of 25 feet, 600 feet in length ; Tira
pata, single span of 180 feet, deck Fink truss ; kilo
metre 80, cast-iron bents on screw piles, six spans of
20 feet, 120 feet in length ; kilometre 93, same as
kilometre 80, eight spans of 20 feet, 160 feet in length ;
Pulpera, single through Howe truss of 100 feet ; Rio
Vilcaneta, trestle 600 feet in length, constructed entirely
of old iron rails, thirty spans of 20 feet ; Rio Vilcaneta,
kilometre 216, cast-iron bents on screw piles, six spans
of 20 feet, 120 feet in length (erected 1907) ; Rio Cilca-
neta, kilometre 235, same as kilometre 216, fourteen
spans of 15 feet, 210 feet in length (also erected 1907) ;
Rio Vilcaneta, kilometre 239, two spans of 65 feet,
deck lattice-girder, and erected in 1909 by the American
Bridge Company ; Rio Huatanay, kilometre 306, single
span 50 feet, steel deck-plate girder, also erected the
same year by the Company.
The culverts, generally speaking, are of masonry,
with iron girders, but there are a number of stone-arched
culverts on the main line of the Cuzco branch, with
spans up to 13 feet. There is only one tunnel upon this
railway, and that occurs on the Puno division at Kilo
metre 55, a little north of Arequipa ; it is 700 feet in length.
The remaining gradients are as follows : " Mollendo
division" — Mollendo to Ensenada, level ; Tambo to
Pesco, 3 per cent. ; Cahuintala, level ; Cachonde, A per

202 PERU OF THE TWENTIETH CENTURY
cent. ; Huagri, level ; La Joya, J per cent. ; San Jose
to Ramal, level ; Viter, 3 per cent. ; Quishuarani to
Granite, level ; Tingo, 1 per cent. ; Desvie to Arequipa,
3 per cent. " Puno division " — Cantera, 3 per cent. ;
Yura to Uyupampa, level ; Quisces, 3| per cent. ;
Ayrampal, 1 per cent. ; Pampa de Arrieres, 3 per cent. ;
Abra, 2 per cent. ; Canaguas, 3 per cent. ; Sumbay,
level ; Puccacancha, 1 per cent. ; Vincecaya to Crucere
Alto, level ; Pariguanas, 2 per cent. ; Lagunillas, level ;
Saracecha, 2J per cent. ; Santa Lucia, 1| per cent. ;
Maravillas to Puno, level. " Cuzco branch " — Cala-
puja to Chuquibambilla, level ; Santa Rosa, 1 per cent. ;
Araranca, 3 per cent. ; La Raya to Marangani, level ;
Sicuani, 1 per cent. ; San Pablo to Chuquicahuana, level ;
Cusipata, 1 per cent. ; Quiquijanas to San Jeronimo,
J per cent. ; and to Cuzco, 2 per cent.
The rolling-stock on the Southern Railway is, owing
to the length and importance of the line as a freight-
carrier, both diversified in character and considerable
in amount. There are some fifty cars, including various
types, and made up as follows : Three sleeping-cars, one
saloon car, thirteen first-class coaches, two combination
coaches (first and second class), fourteen second-class
coaches, three combination cars (second-class and
baggage), thirteen baggage cars, and one first-class car.
In regard to freight-cars, the equipment at present
consists of 387 waggons, varymg in carrying capacity
from 18,400 to 35,000 kilogrammes ; in length, from 25
to 35 feet ; in width, from 8 feet 4 inches to 9 feet ; and
height, from 4 to 7 feet. The types are mainly box
cars, of which there are 190, while there are 133 flat-
cars, 38 coal-cars, and 10 cattle-cars.
Considering its length of track, I know of few railways
which are better equipped with locomotives than the
Southern Railway of Peru. From first to last, there

SOUTHERN RAILWAY 203
are eighty-eight engines, the oldest of which dates back
to 1871, and the most recent to 1907. Various makes
are represented, including Rogers, Danforth, and Bald
win. The newest type (1907), which are all of Rogers's
make, have cylinders 20 x 28 ; driving-wheels, 52 inches ;
boiler pressure, 180 ; the weight of engine being 73 tons,
tender 36 tons, or a total of 109 tons. -Another type,
by the same manufacturers, has 58-inch driving-wheels,
a boiler-pressure of 200 pounds, and a weight of engine
70 tons, tender 45 tons, or a total of 115 tons. There
are eight locomotives of this latter type, and I am in
formed that they have proved exceedingly good and
serviceable engines.
The character of freight handled by the Southern
Railway of Peru is principally foodstuffs, including flour
and sugar, alcohol, lumber, coal, and general goods for
Bolivia ; as well as flour and sugar, wines and spirits,
lumber and general supplies for Arequipa and the larger
districts which are served by the line. There are also
considerable consignments of wool, minerals, borax,
rubber, hides, and cocoa carried by this Company,
while during the last two years a large quantity of con
struction material for the new Arica-La Paz Railway
has been transported. These latter freights have been
naturally only of a temporary nature, and upon the
completion of the new railroad they will have ceased.
The contractors of the Arica-La Paz Railway now bring
in at least some of their own material and rolling-stock
through the port of Arica. While it lasted, however,
the increase of freights proved very profitable to the
Southern Railway — a fact which has been reflected in
the last annual report presented by the directors.
The workshops, which are established at Arequipa,
although somewhat small in dimensions, have been so
well arranged and are so well managed that they are
capable of doing all the repair and construction work

204 PERU OF THE TWENTIETH CENTURY
which the railway calls for. Mr. W. Cockfield is in
charge of these shops, and surprising is the amount of
excellent work which is turned out under his super
intendence. Since Mr. Cockfield came, the strictest
economy has been exercised, but the efficiency of these
shops has been practically doubled, and I am informed
that the Indians who are engaged in its various depart
ments, such as the boiler-shops, carpenter-shops,
machine-shops, engine-shed, and foundry, are proving
themselves very capable and malleable.
The Southern Railway of Peru affords another in
stance of what capable management can effect in regard
to a line which, for years, had proved troublesome, and
even unprofitable. Under the management of Mr. H. A.
McCulloch, the line has made steady and consistent
progress, with the result that it is to-day in a strong
financial position ; and even if this position be somewhat
threatened, as those most concerned fear it is, by the
approaching completion of a new and powerful com
petitor in the Arica-La Paz Railway, there is reason to
believe that the directors of the Southern Railway,
who have had plenty of opportunity for arranging its
business and preparing for the inevitable, will rise to
the occasion, and know both how to meet and compete
with the rivalry when it becomes an accomplished fact.
One of the features of the railway management under
the control of the Peruvian Corporation has been the
excellent relations which exist, and have for some years
existed, between the management and the public. In
connection with the local control and supervision of
the Southern Railway, it would be difficult to find a
more competent manager than Mr. H. A. McCulloch,
who is extremely popular in Arequipa (the headquarters
of the Southern Company) and throughout the entire
district through which the railway operates. It is only
those who have lived in Latin-America, and who know

Sax Vicente, capital of the Province of Caxete (Department of
Lima).

Arequipa: Boulevard, with "Misti" Volcano in the distance.

SOUTHERN RAILWAY

205

the people and the difficulties of handling them, who
can realize what a " popular manager " of a railway
with a long track to handle means in the operation of
the line. Mr. McCulloch, who was with Mr. W. L.
Morkill in Mexico, is one of his most able and valued
assistants in Peru.
The Southern Railway, the second most important
of the Corporation's transportation systems, comprises,
as we have seen, five lines in all, of which three are
mountain and two coastal railways. The three prin
cipal sections are those from Mollendo to Arequipa —
172 kilometres ; Arequipa to Puno — 351 kilometres ; and
Juliaca to Sicuani — 197 kilometres. The most recent
addition to the Corporation's railways is the extension
from Juliaca to Cuzco, and which, although up to the
present, as indicated above, this has proved disappoint
ing in the amount of freight carried, gives promise of
developing in due time into an important and profit-
earning branch of the Southern System. It is proposed
to continue the railway from Cuzco to Santa Ana, and
in the event of this extension being built, it can hardly
fail to prove a valuable feeder to the system. A survey
for such a railway has already been made by the Peruvian
Corporation for account of the Peruvian Government.
While the gross receipts of the Southern Railway
actually declined in the year 1909-10, the working
expenses were so much reduced that the net receipts
resulted as follows :
Including the Cdzco Division.

1909-10.

1908-09.

Difference.

Per Cent.

Gross receipts ...
Working expenses

£ a. d.
358,766 4 6
221,366 0 10

£ s. d.
419,210 3 1
316,649 12 8
102,560 10 5

£ a. d.
60,443 18 7
95,283 11 10

- 14-12
-30-10

Net receipts

137,400 3 8

+ 34,839 13 3

+ 33-96

206 PERU OF THE TWENTIETH CENTURY
The Peruvian Central Railway, better known as the
" Oroya Huancayo Railroad," has been, not undeserv
ingly, described as the most remarkable railway in the
world. Remarkable it is, first, for the audacity of its
conception ; secondly, for the extravagant manner in
which it has been constructed ; and thirdly, on account
of the unfortunate financial results with which it had
met. Like the majority of the Peruvian railways, the
Central starts from the coast of the Pacific Ocean, at
Callao, and, after running for some kilometres through
wheat, cotton, and sugar estates, it reaches its first
narrow opening in the slopes of the Cordillera Moun
tains, an opening which has been caused by the erosion
in the rocks effected by the furiously-running waters
making their way to the ocean.
Already, at a distance of 50 kilometres, the line has
ascended 1,000 metres above sea-level, and thereafter
it continues to creep higher and higher, through deep
cuts, across daring viaducts, through a multiplication
of tunnels, and round and about prodigious zigzags.
An ultimate height of nearly 16,000 feet is reached, the
track passing thence for hundreds of kilometres through
an absolutely desolate and barren snow-bound region,
devoid of every vestige of vegetation, and of so wild a
nature as to cause the traveller to marvel that a railway
in such a region should have ever been constructed.
The total length of the main line is as follows : Callao
to Huancayo, 208" 44 miles ; Lima to Ancon, 23' 56 miles ;
and Ticlio to Morococha, 8-49 miles, or a total of 240*49
miles. In regard to any new construction, there is nothing at
the present time being attempted here, or contemplated,
so far as the Peruvian Corporation is concerned ; but
the Government is constructing an extension of the
main line from Huancayo to Ayacucho — a distance of

CENTRAL RAILWAY 207
240 kilometres. At the time of my visit to this railway
some 20 kilometres of road-bed were ready to receive
the track, but work then was, and still is, I believe,
suspended. (See Map).
The road-bed of the main line, from the coast to San
Bartolome, is formed mostly of gravel, which in this
part of the country is called cascajo. The gravel is of
a very coarse nature, but it makes a very solid founda
tion, and one which is easily kept dry. From San Bar
tolome, which is at kilometre 76, the road-bed is almost
solid in some places, since the track is built upon the
rocky side-hills, up which it climbs and creeps, cutting
off points by many bridges and tunnels. This class of
road-bed is met with as far as Casapalca, at kilometre
154. From Casapalca onwards to Tanque Viscas, at
kilometre 180, it is not of so good a quality ; and here
a clay soil is struck which is rather hard to drain. Con
sidering all things, however, the road-bed keeps in fairly
good condition, with the careful supervision and con
tinual attention which it receives.
From Tanque Viscas to Huancayo, a cascajo forma
tion is again encountered, and, as a consequence, pro
vides first-class road-bed. The mean width is 4*20
metres. The nature of the ballast used changes from
section to section over the whole line. In most cases
it is thrown up from the side of the tracks, and in the
cascajo section it is very fair. On some sections there
is natural broken-stone ballast used, which serves
the purpose excellently. Upon the Ancon branch the
ballast is sand. The sleepers are of California red
wood, 6x8x8, and the weight of the rails is 70 pounds
per yard. The gauge of the main line is standard
( = 4 feet 8£ inches). The gradients are as follows :
Callao-Lima, L5 per cent. ; Lima-Chosica, 2"5 per cent. ;
Chosica-Ticlio (summit), 4 per cent. ; Ticlio-Oroya, 4 per
cent. ; Oroya-Huancayo, 1*5 per cent. ; Tictio-Moro-

208 PERU OF THE TWENTIETH CENTURY
cocha, 4 per cent. ; and Lima-Anc6n, 2"75 per cent. As
will be noticed, the maximum grade is 4 per cent.
Considering the length of the line, the number of
stations is very small — a fact, however, which is quite
comprehensible after a journey between termmus and
terminus, and the opportunity afforded of seeing the
paucity of population and the generally abandoned
character of the country through which much of the line
passes. Altogether, there are seven first-class, eighteen
second-class, and twelve third-class stations, the ter
minals being — Callao, Montserrate, Chosica, Oroya,
Huancayo, Ancon, and Morococha.
Naturally, upon a line of such character as this, which
climbs from sea-level to nearly 16,000 feet above, there
are found a considerable number of bridges, many of
which are of great engineering importance, such, for
instance, as that known as the Challapa, and that other
known as the Verrugas, both which are of world-wide
celebrity. The following is a list of the bridges, the greater part
of which were built in the United States of America :
Ancon branch — Chillon and La Palma, built in 1908 and
1891 respectively; main line — Purhuay, kilometre 65
(1908), 71 feet ; Corcona, kilometre 66 (1872), 124 feet
4 inches ; Veraguas, kilometre 84 (1890), 575 feet ;
Puchuchana, kilometre 88 (1892), 70 feet ; Ucuta, kilo
metre 93 (1908), 172 feet 10 inches ; San Juan, kilo
metre 94 (1908), 88 feet 9 inches ; Challape, kilometre 99
(1908), 356 feet ; No Name, kilometre 109 (1874), 53 feet ;
Viso, kilometre 110 (1902) ; Chaupichaca, kilometre 117
(1908), 426 feet; Infiernillo, kilometre 130 (1908),
204 feet; Anche (1), kilometre 133 (1908), 300 feet
2 inches ; Rio Blanco (1), kilometre 134 (1908), 104 feet ;
Rio Blanco (3), kilometre 135 (1876), 75 feet; Rio
Blanco (4), kilometre 135-7 (1903), 85 feet ; Copa, kilo
metre 136 (1908), 275 feet ; Corcornado, kilometre 148

CENTRAL RAILWAY 209
(1892), 104 feet ; Van Bocklyn, kilometre 166 (1892),
168 feet 4 inches ; Viscas, kilometre 174 (1892), 178 feet
3 "5 inches ; Rumichaca, kilometre 188 (1893), 63 feet
8 inches ; Pachachaca, kilometre 203 (1893), 64 feet ;
Huancayo extension, Pachacayo, kilometre 40 (1908),
97 feet ; Mantaro, kilometre 62 (1908), 230 feet ; Ataura,
kilometre 82 (1908), 130 feet ; San Lorenzo, kilometre
88 (1908), 70 feet; Matahuasi, kilometre 96 (1908),
315 feet ; and Concepcion, kilometre 99 (1908),
100 feet.
In addition to the above, there are a number of
smaller bridges, which, including those in the Huancayo
extension, number about sixty-seven. From first to
last there are something like eighty tunnels, several of
which are encountered one after the other, the train
passing from one, across a bridge, into the next in a
manner encountered on no other railway in the world
with which I am acquainted. Such a feature is en
countered at the Infiernillo bridge, and the effect upon
the ordinary traveller, who sees it for the first and
even for the second and third time, is remarkably
impressive. The character of the up-freight carried by the Central
Railway is mostly lumber and machinery, together with
general merchandise for the mines ; while the down-
freight consists of ore, copper bars, and various forms of
treated ores.
The General Manager in Lima is Mr. J. H. Feehan,
an extremely capable and experienced railway man,
who has manifested conspicuous skill in handling the
somewhat complicated system under his control. In
Mr. Page, the Traffic Manager, the Company possesses
an official of equal ability, and one who has helped to
popularize the line considerably among all classes.
The Central Railway has really never had a good
chance yet of showing what it can earn. Handicapped 14

210 PERU OF THE TWENTIETH CENTURY
at the outset with a gigantic capital, it has been, until
comparatively recently, but indifferently managed,
while several unfortunate accidents have transpired
which has thrown it back on the road of progress. The
most disastrous of all these occurrences was the tragedy
which occurred in February, 1909, at Chaupichaca,
when a new bridge under reconstruction was partly
wrecked, and eleven employes were killed by a runaway
engine, which, being insufficiently protected by the
attendant waggon, which should have been, but was not,
attached, started down a steep curve, and, passing
entirely beyond the control of the driver, dashed into
a group of working men, and then hurled itself, together
with part of the bridge, into the foaming torrents
below. This accident cost the Company no less than
£6,500, to say nothing of the losses incurred by a
complete suspension of through traffic for nearly three
months. Another contretemps was the destruction by fire, in
the month of January following, of the station and
administration offices in Lima, known as Desam-
parados. The building was insured with the Peruvian
Corporation for the sum of 50,000 sols (£5,000), against
which had to be charged the cost of replacing furniture,
etc., and clearing the site, leaving the Company with
nearly 26,000 sols (£2,500) towards the cost of erecting a
new building, which is now in hand and almost com
pleted. The financial operations of the Central Railway, like
those of the Southern Railway, resulted for the last
year (1909-10) in an increase in the net receipts, in
spite of the fact that the gross receipts were smaller in
value. But the working expenses were also reduced in
even a greater degree, so that the results, so far as the
proprietors were concerned, proved eminently satis-

CENTRAL RAILWAY

211

factory. The statement for the working of the Central
Railway for the period mentioned is as follows :

1909-10.

1908-9.

Difference.

Per Cent.

Gross receipts ...
Working expenses

£ s. d.
380,952 17 3
256,665 5 4

£ s. d.
399,505 15 2
306,011 13 2

£ s. d.
-18,552 17 11
-49,346 7 10

- 4-64
-16-12

Net receipts

124,287 11 11

93,494 2 0

+ 30,793 9 11

+32-93

CHAPTER XVI
Railways (continued) — Guaqui-La Paz Railroad — Important acquisition
— Contemplated developments— Lake Titicaca service - Rolling-stock
— Stations — Workshops — Paita-Piura Railway — Pacasmayo- Guada
lupe line — Trujillo branch — Chimbote-Tablones link — General
management — Prospects of Peruvian Corporation Railways — Great
mineral developments.
The Guaqui and La Paz road has a length of 98 kilo
metres of main line, 3 kilometres of branches, or a total
of 101 kilometres. Construction by the Bolivian Govern
ment commenced in 1902. The road-bed is ballasted
with gravel, the rails being laid upon sleepers of red
Oregon pine 6x6 and 8x6. From Guaqui, which is
the port of Lake Titicaca, upon the Bolivian side, to
the station known as Alto de La Paz, or a distance of
88 kilometres, the rails are 40 pounds. From the Alto
to the city of La Paz, which is an electric-traction line,
9*4 kilometres in length, the rails are 60 pounds. There
are seven stations in the 97*4 kilometres, two of which
are terminals. One of these, the La Paz station, con
sists of a number of substantial modern buildings, and
contains the general offices of the railway. There are
two cargo-sheds of similar construction. The Alto
station is the connecting-point of the steam and electric
sections, and contains a station building of calamini and
stone construction. Here are, in addition to the station-
master's house, located drivers' houses, cargo-sheds,
and a running-shed. At this station there is a cross
over Y.
The next most important station is that at Viacha,
212

GUAQUI-LA PAZ RAILWAY 213
which, hereafter, is likely to become a very busy centre,
inasmuch as it will be the meeting-point of three different
lines of railway, and perhaps of even four. Viacha is
the terminal point of the Oruro-Viacha section of the
Antofogasta and Bolivia Railway, and the present
terminal of the Arica-La Paz Railway. It consists of
station-building, with station-master's house of calamini
and wood construction, water-tank, shed, etc. Capiri is
a small station containing a caretaker's house, and it
has stone platforms ; Querqueta station consists of
station-building of stone and wood ; Tiaguanaco is a
station-building of stone, adobe, and calamini, including
station-master's house and shed for cargo. Guaqui,
which has already been mentioned as the terminal point
or port on Lake Titicaca, includes the administration
house and offices of the superintendent of steamers.
These buildings are constructed of stone, adobe, and
calamini. There are four very commodious and well-
built cargo-sheds, which are the property of the railway,
but they are used by the railway and Custom House
conjointly. The gauge of the main line is 1 metre (3 feet 3| inches).
The track is divided into a steam section, from kilo
metre 1 to kilometre 86, and an electric section, from
kilometre 86 to kilometre 98. The maximum grade on
the steam section is 1*8 per cent., and on the branch
4-5 per cent. On the electric section the grade is
6"25 per cent.
The number of bridges on the first-named section are
as follows : One Fink truss, at kilometre 64, consisting
of one span 13 metres ; and twenty-nine bridges formed
of I beams 15 inches in depth, varymg from 3 to 10
metres. There are seventy-four culverts, formed of iron
piping, varying from 3 feet to 10 inches in diameter.
On the electric section there is one bridge, consisting of
three spans of 10 metres ; one span is formed of 21-inch

214 PERU OF THE TWENTIETH CENTURY
differdange I beams, supported upon abutments, and
two pillars formed of iron rails. There is one bridge of
8 metres span, formed of 15-inch I beams, supported
on stone abutments ; and one bridge 10 metres span,
formed of 21-inch differdange I beams, on stone abut
ments. There are five culverts built of masonry, and
seven of iron tubes, 21 inches in diameter. There are
no tunnels. In regard to switches, apart from those for
sidings at stations, there is a crossing-siding at kilo
metre 44, 250 metres in length; a second at kilometre 87,
100 metres in length ; and a third on the electric section
at kilometre 5, 50 kilometres in length.
The rolling-stock on the Guaqui railway was, at the
time of my seeing it, far from being in its pristine per
fection, and no doubt it has been necessary to renew
the greater part of it. This rolling-stock consisted of
four freight and passenger locomotives, and one switch
ing engine. Numbers 1, 2, and 3 were made by the
Baldwin Locomotive Works, of Philadelphia, U.S.A.,
and weighed from 28 to 32 tons ; Number 1 had cylinders
18 x 13, with 38-inch wheels ; Numbers 2 and 3 had
cylinders 14 x 18, with 38-inch wheels ; Number 4 of
Rogers's make ; while Number 5 (switching engine) was
out of the shops of Peckett, of Bristol.
I am informed that seldom has a more satisfactory
piece of rolling-stock than this shunting engine been met
with in this part of the world, both the management
and engine-drivers speaking of it almost with affection,
crediting the engine with the best of all virtues on the
part of a locomotive — " reliability and perfection of
detail." On the other hand, I understand that British loco
motives, as a rule, are not found the best for these rail
roads, on account of the manufacturers overlooking the
important fact that engines should not be too rigid in
their build for mountain railways. It seems that in

I^J^, ¦-,*;>], ti

Rio Blanco, showing Railway Station (Southern Railway Company)
and Smelter.

GUAQUI-LA PAZ RAILWAY 215
most of the locomotives sent out from home too much
metal is used, and that otherwise they are not adapted
to the rough tracks met with on the Peruvian roads.
Apart from this, the absence of standardization in
regard to the parts is a serious drawback, and compares
unfavourably with the advantages possessed by the
American locomotives, especially those of Baldwin make,
all duplicate parts for which are easily obtained.
Were British manufacturers to make a careful note of
these facts, and adapt their engines more closely to the
requirements of the particular country to which they are
to be despatched, there is no reason whatever why
British locomotives should not compete successfully with
those of the United States or any other country, and it
is equally certain that they could be imported just as
cheaply. There are three first-class passenger coaches, and one
mixed (first and second) ; three second-class passenger
coaches ; and one baggage-car. On the electric section,
there are three electric locomotives, weighing 15| tons
each, with 4*55 horse-power G.E. motors to each loco
motive ; and two first and two second-class passenger
coaches, with 2*55 horse-power G.E. motors on each car.
All the rolling-stock is fitted with Westinghouse air
brakes of an extra heavy design, adapted to bring the
cars down with safety on the 6 per cent, grade of the
electric division. The freight rolling-stock is similarly
fitted, and consists of forty-two cars, with a capacity of
15 tons each, divided between box and flat cars.
The character of the freight handled is of general
merchandise, imported into Bolivia through Peru, from
Europe, and from the United States, and Peruvian pro
ducts, such as sugar and kerosene. For export, the line
also carries copper and tin ores, hides, cocoa, and the
natural products of the country.
The workshops of the railway are situated in Guaqui,

216 PERU OF THE TWENTIETH CENTURY
and contain most of the usual machinery for running a
line of this character. Both British, French, and Ameri
can machinery is to be found, the former including two
Premier gas-engines, made at Sandiacre, near Notting
ham, and which are pronounced excellent specimens
of their kind, having yielded very good work from the
very first day they were started — that is to say, six
years ago. These engines are 400 developed horse
power, 380 maximum. In the power-house the accumu
lators, supplied by a London firm, cannot be declared
very satisfactory, however, and I am informed that they
have proved unsuitable and troublesome in the extreme.
The accumulator cells, 780 in number, have been sup
plied three in parallel, making 260 complete cells,
whereas they should have been supplied in but one.
The cells are of a capacity of 450 ampere hour. The
dynamo is supplied by the Lancashire Dynamo Com
pany, of Trafford Park, Manchester ; while the General
Electric Company, of the United States, is responsible
for the remainder of the equipment.
The electric cars which are used upon the short
section between the Alto and La Paz are made by Brills,
of Philadelphia, U.S.A., who are responsible for most of
the electric traction and horse-drawn tramcars all over
South and Central America, having practically no com
petitors, the electric equipment being supplied by the
General Electric Company. So powerful is the electric
locomotive, which weighs 15J tons, that it possesses a
pushing capacity of 35 tons gross weight up a grade of
6 1 per cent., this weight being made up of three pas
senger coaches, each weighing 10 tons, with passengers
and baggage weighing an additional 5 tons. Many
engineers might be inclined to doubt whether a loco
motive of this capacity could perform such work ; but
I am prepared to say that it can, for I have seen it done
under my own eyes.

GUAQUI-LA PAZ RAILWAY

217

That the business of the Guaqui-La Paz Railway is
steadily increasing, especially under the present manage
ment, can readily be observed from the following sta
tistics, for which I am indebted to the General Manager
(Mr. Pierce Hope). The traffic returns from January 1,
1907, to December 31, 1909, were as follows :

Passengers carried.

Cargo and
Baggage carried .

January 1, 1907, to June 30, 1907 ...
July 1, 1907, to December 31, 1907 ...
January 1, 1908, to June 30, 1908 ...
July 1, 1908, to December 31, 1908 ...
January 1, 1909, to June 30, 1909 ...
July 1, 1909, to December 31, 1909 ...

25,11139,457 36,71739,69043,871 54,623

21,149 tons.
26,245 „
25,143 „
29,227 ,,
22,662 „
24,183 „

The Peruvian Corporation formerly held this railway
under lease from the Bolivian Government, and by way
of rental 30 per cent, of the gross traffic receipts was
payable to that Government until June 30, 1911, after
which the rental was to be increased to 40 per cent, of
the gross receipts.
The same steady progress was shown throughout the
full twelve months and was continued during the
following year, the figures for 1910 being as follows :

1909-10.

1908-9.

Difference.

Per
Cent.

Gross receipts ...
Working expenses

£ s. d.
72,582 10 8
47,293 3 7

£ s. d.
69,236 19 5
54,358 2 4

£ s. d.
+ 3,345 11 3
- 7,064 18 9

+ 4-83
- 12-99

Net receipts

25,289 7 1

14,878 17 1

+ 10,410 10 0

+ 69-97

The great question which was being discussed while
I was in Bolivia, not alone in that Republic, but by
those who are interested in the Peruvian Corpora
tion and its holdings in Peru, was the future of the
Guaqui and La Paz Railway. Under ordinary circum
stances, the lease granted to the Peruvian Corporation

218 PERU OF THE TWENTIETH CENTURY
expires in 1914 ; but, inasmuch as the Government of
Bolivia was indebted to the Corporation for the amount
of £220,000, representing money advanced by the bond
holders for the construction of this line, it was considered
more than probable that the Government would consent
— as indeed it did — to cancel the indebtedness by selling
the railway out-and-out to the Corporation. With
regard to the question of the purchase price to be paid,
the Government proposed to ask the sum of £400,000,
and offered to transfer the railway for a sum in cash
and a cancellation of its indebtedness to the Corpora
tion of the aforesaid sum of £220,000. Intrinsically,
perhaps, the Guaqui and La Paz Railroad might have
been at that time worth £400,000 ; but it was doubtful
whether the Corporation would be inclined to pay that
sum. That it would be prepared to offer an amount not
very much less was, however, possible ; and, as a matter
of fact, it ob tamed it for the sum of £374,912 7s. 9d.,
and took over entire possession of the property on
July 15, 1910. The Corporation was in a very strong
position, since the Government of Bolivia could not,
and probably would not, try to manage the railway on
its own account, bearing, in fact, the view that native
attempts to both construct and manage railways have
hitherto proved expensive failures.
It was somewhat unfortunate that the relations be
tween the Government and the Guaqui and La Paz
Railway management were not of the most friendly
nature, and, eliminating from consideration the purely
personal element, the Railway Company had had but
little reason to feel thankful to the Government for the
attitude which it had for long assumed towards them.
The hope is more in the future, however, and in the
person of the new President, who will come into office
in a very short while. Colonel Montes, who has already
served as President for one term, is likely to be the new

GUAQUI-LA PAZ RAILWAY 219
Elect, and he is well known to entertain strong pre
dilections, not alone in favour of foreign railway enter
prise in general, but towards the personnel of the Guaqui
and La Paz Railway management in particular.
There is one additional and no less important fact to
remember, and that is : should the Peruvian Corpora
tion have failed to become possessed of the Guaqui and
La Paz Railroad, it would of a certainty have been pur
chased by the Antofogasta and Bolivia Railway Com
pany, which is already a powerful factor in the trans
portation arrangements of this part of the world, while
it is likewise possessed of an energy and capability in
regard to its management second to none on the part of
any railroad enterprise in the world.
The Peruvian Corporation had all along been alive
to the possibilities which would attend upon the
acquisition of the Guaqui and La Paz Railway, and now
that the Corporation has proved to be the purchaser of
the line, a long-contemplated era of new construction
will commence. Not only will the line be relaid and re-
equipped for a greater part of its length, and, in all
probability, the electric-traction section abolished in
favour of steam traction, but a new through line will be
built around Lake Titicaca, which will then give this
railway an uninterrupted run from the port of Mollendo
to the city of La Paz, without the necessity of any trans
shipment such as has to be carried out at present. The
length of line for the contemplated Lake Titicaca section
would be 220 kilometres, and it is estimated that it
could be built for £5,000 per kilometre. No hopes are
indulged in that this new section of the railway will
prove immediately remunerative from a freight point of
view, but its value as a through connecting-link has
already been demonstrated.
Under these circumstances, it will be possible for the
Guaqui and La Paz Railway to introduce a schedule of

220 PERU OF THE TWENTIETH CENTURY
freight rates which would compare favourably with any
which could be offered by either the Antofogasta and
Bolivia Railway, or the now being constructed Arica-La
Paz Railway. Should the latter line stop at Viacha,
and not go straight into La Paz, as the contract calls
for (which is very improbable), the Guaqui and La Paz
Railroad would benefit materially, since it would carry,
although only over a short haul of 22 kilometres, all the
traffic of the new line from Viacha into the Bolivian
Capital. Such an arrangement would serve a double
purpose, inasmuch as while it would bring fresh grist to
the mill of the Guaqui and La Paz Railway, it would also
obviate the duplication of the line from Viacha into the
Capital of Bolivia by the Arica-La Paz Railway. To effect
this, however, it would be necessary to obtain the mutual
consent of both the Bolivian and Chilian Governments.
Another of the Corporation's railways is that of
Paita-Piura. The previous year's business on this railway
was encouraging, showing an increase of almost 6 per
cent, in passengers and 2 per cent, in goods carried.
With the settlement of the question between Peru and
Ecuador, the Corporation may reasonably look forward
to more traffic pouring over this line, the product of
most importance being cotton. While it is always diffi
cult to forecast a crop of either cotton, sugar, maize, or
rice, so much — nay, everything — depending upon the
weather, judging from the new areas under cultivation,
there is good reason for indulging in the belief of a good
year. The following are the returns upon this railway
for the last year's trading :

1909-10.

1908-9.

Difference.

Per
Cent.

Gross receipts ...
Working expenses

£ s. d.
31,881 10 3
17,391 3 2

£ a. d.
30,653 4 5
17,617 10 6

£ s. d.
+ 1,228 5 10
- 226 7 4

+ 401
- 128

Net receipts

14,490 7 1

13,035 13 11

+ 1,454 13 2

+ 11-15

RAILWAYS 221
There are three small lines managed by the Corpora
tion — namely, Paita to Piura, 97 kilometres in length ;
Salaverry to Trujillo, 76 kilometres ; and Pacasmayo
to Guadalupe, 96 kilometres. Each of these lines is
profit-earning, and each shows an increase in its net
receipts over the figures of the previous year.
Paita possesses special importance, in view of the
contemplated construction of a third Trans- Andine Rail
way, which is projected, to cross the northern region at
5° south latitude. According to this plan, this railway
would unite the port of Paita with a port on the River
Maranon, thus placing the Pacific Ocean in direct com
munication with the finest and most navigable river in
the world — the Amazon — and at a point from which
there is free and easy navigation throughout the entire
year. In order to deal more expeditiously and more
economically with the shipment and discharge of freight
at Paita, the Corporation has now procured a motor tow-
boat, which has proved a very great success. The Cor
poration has also constructed a large irrigating canal in
the Chira Valley on behalf of the Peruvian Government,
which is destined to have an important bearing upon
the whole of the territory round about, and which is
served by this railway. A high tribute has been paid
by the Peruvian Government to the admirable manner
in which the Peruvian Corporation has administered the
Paita-Piura Railway, the regularity of service being one
of its main features.
Pacasmayo is another port of the Republic which is
undergoing a great transformation in regard to develop
ment of the surrounding country, and already an im
portant extension of the Pacasmayo to Guadalupe
Railway has been carried out — namely, that known as
the Chilete extension, which was only opened for traffic
towards the end of 1909. The cost was close on to
£160,000. The new work is justifying itself day by day,

222 PERU OF THE TWENTIETH CENTURY
a greatly increased amount of business accruing to the
railway in consequence of the extension. It is interest
ing to note that in the month of February, 1909, the
Peruvian Government granted to the Corporation a new
lease of the Pacasmayo mole for a term of twenty-five
years, at a rental for the first five years of 20 per cent.
of the gross receipts, the rental increasing in subsequent
periods of five years to 23, 26, 29, and 32 per cent, re
spectively, the Corporation undertaking, within the first
two and a half years of the term, to execute all necessary
repairs and alterations to the mole in accordance with
approved surveys. In return for this, the Corporation
is entitled to amortise the expense by the appropriation
quarterly of 1 per cent, of the Government's share of
the gross receipts, together with an interest at the rate
of 5 per cent, per annum.
A notable improvement, exceeding 100 per cent., was
recorded in connection with the working of the Pacas
mayo and Guadalupe Railway. This is due to the longer
haul now possible to Chilete, the extension to which
point was an obligation imposed upon it by the Govern
ment in the settlement of 1907. The most important
traffic over this system is rice, of which the harvest was
last season more than ordinarily abundant. Other
freight which indicated an increase was composed of fire
wood, sugar-cane, hay, and live-stock. The following
figures show the movements effected :

1909-10.

1908-9.

Difference.

Per
Cent.

Gross receipts ...
Working expenses

£ s. d.
19,235 9 5
12,044 1 2

£ s. d.
17,591 9 8
14,157 3 2

£ s. d.
+ 1,643 19 9
-2,113 2 0

+ 9-34
- 14-92

Net receipts

7,191 8 3

3,434 6 6

+ 3,757 1 9

+ 109-40

The Trujillo Railway is a sugar-carrying line, the last
two years proving particularly good ones from a sugar-

RAILWAYS

223

crop point of view, the railway showing an appreciable
increase in its net income. The present year being an
equally, if not indeed a more promising one for the
sugar industry, the railway's profits are expected to be
even better. The net receipts for the year 1909-10 were
£19,362 5s. 7d., an improvement amounting to
£1,402 13s. 6d., or an increase of 7-80 per cent.
The Chimbote to Tablones Railway is a line of 57 kilo
metres in length, which had hitherto been worked at
a loss; it is decidedly improving, even if slowly. A
London Syndicate holds a concession from, the Peruvian
Government for the construction of a railway from this
port (Chimbote) to Caraz and Recuay, which, if carried
into effect, will result in increased business for the Cor
poration's line (see p. 196).
Although not quite so prosperous as the Pacasmayo-
Guadalupe line, the Chimbote Railway still showed a
very encouraging amount of progress for 1909-10. This
result was achieved in the face of both goods and pas
senger traffic falling off to a considerable extent. The
subjoined figures show the position of the line :

1909-10.

1908-9.

Difference.

Per
Cent.

Gross receipts . . .
Working expenses

£ s. d.
5,767 3 0
4,830 13 3

£ s. d.
5,349 18 9
4,862 3 7

£ s. d.
+ 417 4 3
- 31 10 4

+ 7-79
- 064

Net receipts

936 9 9

487 15 2

+ 448 14 7

+ 9199

While all the railways under the management of the
Corporation are being maintained in an excellent state
of repair and efficiency, the very strictest watch over
expenditure is being exercised, with the result that there
is now no leakage and no extravagance, every depart
ment being made responsible, and the whole being under
the direct supervision of Mr. W. L. Morkill in Peru,
and the Directors in London. If the figures which

224 PERU OF THE TWENTIETH CENTURY
have latterly been presented to the shareholders are not
particularly encouraging, considering the immense in
terests which the Corporation holds, there is every pro
mise of improvement for this year (1911) ; and, pro
vided peace in the country be maintained, for many
subsequent years. The amount of cotton and sugar
grown in the Republic is increasing steadily, if not sen
sationally, and the revenue which is derived from these
sources shows a steady increase. Such traffic conduces
materially to the prosperity of these railways, but
another most important asset is the transportation of
minerals. By far the largest proportion of the business
done by the Central Railway is that of carrying the
copper ore from the Cerro de Pasco Mines on a long haul
of 220 kilometres. The output from these remarkable
mines is increasing annually, and it will probably not
be long before the Central Railway finds its resources
taxed to provide for the many mineral trains which it
has to run.
Although the price of copper is low at the present time,
so rich are the mines that they can afford to increase
their output, even at lower selling prices than those at
present in force. One thing, however, must be con
sidered, and that is that as the Cerro de Pasco Company
is increasing its smelter plant, there will be less mineral
ore, if more copper bars, for the Central Railway to
carry ; but it will be a long time before any question can
arise of a cessation of copper ore being shipped, and the
railway is at present enjoying the fruits of a good con
tract of 10,000 tons per month.
A satisfactory feature in connection with the Central
Railway is the reopening of the smelter at Rio Blanco
in combination with the development of some property
at Casalpaco and at Morococho. This smelter, which
has hardly been worked for more than two or three
weeks since it was erected, has so far been a dead and

RAILWAYS 223
costly failure, a result which has proved as disappoint
ing to its proprietors as to the Central Railway, which
at one time had hoped much from its construction. The
whole of the district round about is Hkely to undergo
development, for it is known to be rich in minerals, and
only needs the assistance of capital to develop them.
This capital will surely be forthcoming when the invest
ing public appreciate the importance of Peru as a pro
ducing country, and when they have learned something
of the favourable opportunities which it offers.
The best piece of news which the shareholders in the
Peruvian Corporation will learn from the forthcoming
Annual Report, to be issued in December, is that Mr.
W. L. Morkill has entered into a further contract to
serve for five years as Representative in Peru. This
may be regarded as a most valuable asset, since Mr.
Morkill is not alone a highly successful manager, but
enjoys the esteem of everyone in Peru, from the President
downwards.

15

CHAPTER XVII
Bail-ways (continued) — New construction — Contemplated extensions —
Iquitos-Paita Eailway — Importance as a transcontinental line— Lima
railways — Lima Light, Power, and Tramway Combination — North-
Western Eailway of Peru — Chimbote line.
The new railway construction programme at present in
hand is a fairly considerable one, and, should it be
brought to fruition in its entirety, will give Peru
between 2,000 and 2,500 miles of railway by the end of
the present year (1911). Branch lines already run from
Lima to Ancon, and from Oroya to Huancuyo ; and an
extension is almost completed to Ayacucho. From here
onwards it is intended to extend to Cuzco, thus linking
up the connection with the Southern Railway. The
whole of this part of the line runs high up in the elevated
valleys of the Andes, several thousand feet above the
level of the sea ; and it will open up some well-known
mineral districts, such as Huancavelica, where some
valuable cinnabar deposits have been located. This
portion of the line has necessitated very heavy rock-
work and a large number of bridges being thrown across
deep gorges and low-running rivers. The rolling-stock
is particularly interesting on account of the fact that oil-
burning locomotives, constructed upon American prin
ciples, but turned out from British shops, are employed.
Another railway enterprise is a link to the Cerro
de Pasco line — which belongs to the mining com
pany of that name — which will connect up the capital
with the rich provinces of the Ancaza valleys, where are
situated the vast and practically untouched rubber
226

Saracocha Lake.

4 , ./" g«h ^f^SSi
Glacier on Mount Vilcanota (Central Cordillera) ; Cuzco Extension of the Southern^Railway,

RAILWAYS 227
forests of Iquitos. Yet another project, which might
even be described as an alternative one, is an extension
of the Peruvian Central Railway from Oroya to Tarma,
and thence to the Ucayali River. Should such a line
be constructed — and it would undoubtedly prove a very
difficult and expensive one — it would give access to the
forests of the montana — in extent almost unlimited —
whence a supply of magnificent timber could be drawn
for use in the mines, where, owing to the formation of
the country rock, an immense amount of timbering has
to be carried out. At present all the timber for the
purpose is brought from Oregon, in the United States,
and, as may be believed, this proves of a very costly
nature by the time it is delivered at the mines.
Additional new railway construction proceeding in
Peru at the time of writing is the Huacho extension to
Lima, and which is making so much progress that the
contractors promise that it shall be ready for opening in
January next (1912). The completion of this line will
mean much for the surrounding districts and the pro
ductive valleys of Supe, Huara, Chancay, and Cara-
byllo, since it will bring them into connection with the
Metropolis and all the commercial centres of the country.
The Peruvian Corporation propose a line from Urcos,
one of their stations on the Southern Railway near
Cuzco, to the head of unobstructed navigation on the
Madre de Dios River, which is one of the principal tribu
taries of the Amazon. The country through which this
line would pass is believed to be extremely rich in
minerals, forests, and agricultural wealth ; moreover,
the great rubber-producing zone would be brought into
much-needed railway communication. The Corporation
hold the choice of constructing this railway at any time
within three years after the completion of the survey,
and the survey has not been made yet. Engineers are,
however, now en route to undertake it, and I believe

228 PERU OP THE TWENTIETH CENTURY
that the Corporation will have the line built and in
running order before very long.
A railway is also projected in connection with the
navigable waters of the Amazon River, a preliminary
contract for which has been entered into with a German
syndicate, of which the well-known firm of Arthur
Koppel, Berlin, is the head. This construction may
serve to regenerate the port of Paita, and would open
up the immense northern territory of Peru, which at
present is practically a desert, so far as population is
concerned. The port of Paita (see previous Chapter) is the safest
of the Republic's ports on the West Coast. By connect
ing it with the navigable River Maranon (otherwise the
Amazon), direct communication will be obtained with
Europe via Para. The distance of the route from Paita
to Maranon will be about 700 kilometres. The sum of
£3,000,000 is mentioned as that which will be expended
upon the construction ; but I fancy that this will be
insufficient, and it may have to be augmented by
another 10 per cent.
The advantages arising to the trade of the Republic
from such a railway would include an additional outlet
for its European commerce, the easy transport of supplies
to Iquitos from the coast, and a journey to Liverpool
via Para of eighteen days' duration, instead of fifty
days ! Naturally, the Government is very desirous
of seeing such a route opened ; and the President, in
discussing the project with me upon more than one
occasion, evinced the liveliest interest in its completion,
which, if it merely depends upon His Excellency's wishes
and efforts, will undoubtedly be consummated.
In anticipation of the completion of the Panama
Canal in 1915, this railway, to be built from Iquitos, on
the Upper Amazon, to the northern Peruvian port of
Paita, has already been compared in importance to the

RAILWAYS 229
Cape to Cairo Railway, for it will undoubtedly put the
rich rubber-growing region of equatorial South America
within twelve days, via Panama, of New York. Besides
this, a vast district in Upper Peru, a country destined to
be one great wheat-field, will be opened up.
The Government of the Republic has granted the
concession, and guarantees interest at the rate of 6 per
cent, annually on the capital invested, besides giving the
concessionaires more than 3,000,000 acres of fertile land
on either side of the line. And a significant point is
that the new railway is to be built with German capital,
the concessionaires being, as mentioned, of that nation
ality. The entrance of German capital into the field of
railway investment in South America is an evidence of
a new policy, of a wider outreaching, on the part of
Germans, and doubtless they will continue to push
forward in various ways, besides trading, in the vast
southern continent.
When Mr. Henry Meiggs, the well-known American
railway engineer, built his great and famous railway into
Andean Peru, his engineers performed some remarkable
work, and took the line over an elevation of 16,000 feet.
The new railway will not have to go so high, for it will
avail itself of a great depression in the Andes where the
highest point is about 7,000 feet ; and, if a tunnel
through the mountains is made, as is contemplated, the
elevation will be reduced to 5,000 feet.
The Department of Fomento have recently authorized
a survey of a new railway from the City of lea, in the
Department of the same name, to the village of El
Molino. The railway development of South America, consider
able as it is in some regions, is really in its infancy, and
there remains to be accomplished work that will keep
engineers and capitalists busy for more than a century.
The reward will be great, for a continent that will easily

230 PERU OF THE TWENTIETH CENTURY
support 800,000,000 people, a continent of surpassing
natural wealth, is to be exploited in the interest of pro
gressive civilization. Railways in South America will,
moreover, make for political stability, which is always
an important consideration.
The Lima railways are among the oldest-established
foreign enterprises in Peru, the original Company
owning them having been in existence for nearly fifty
years. The Company was registered in 1865 to acquire
and work two railways of about nine miles each, held
under concessions from the Peruvian Government, the
term of the concession for one line being for ninety-
nine years, from 1851, after which it reverts to the
Government ; while for the other line it is held in per
petuity, and there being no monetary guarantee at
tached to either concession. Latterly the Company has
been realizing some portion of its possessions, having
disposed of its Encarnacion property for the sum of
£30,730, of which £2,250 has been applied in purchasing
the redemption of debenture stock, leaving a balance of
£28,480 under the conditions of the trust deed for a
further redemption of stock. This redemption relieves
the net revenue account from the corresponding charge
of interest, and increases the amount available for
distribution on the shares.
I may point out that this Encarnacion sale was only
arrived at after considerable difficulty, and its consum
mation was at one time imperilled, owing to the unsettled
conditions prevailing in Peru, and the negotiations had
to be temporarily abandoned. The Company is still left
with the two sections of the railway which are leased
to the Associated Electrical Companies (Lima Light,
Power, and Tramways Company), under which arrange
ment a sum of £15,000 is received per annum. The
Lima Railways Company has also been fortunate in
getting rid of a serious competitor upon the Chorillos

RAILWAYS 231
section of its line, through the purchase of this competing
business by the Associated Electrical Companies (its own
lessees) above referred to.
The gross receipts for the year ending June 6 last
were £15,905, while the expenses came to £2,077 in
Lima, and to £1,489 in London. When all charges had
been deducted, the net profit amounted to £5,811 Is. 5d.,
which, added to the former balance of £1,872 9s. 4d.,
left a sum available for dividend of £7,683 10s. Alto
gether, 3s. 6d. per share, being equivalent to If per cent.,
was paid to the proprietors free of income tax, and the
small sum of £683 10s. has been carried forward. There
is every chance of the present year proving sufficiently
successful to enable the directors hereafter to declare
a dividend of 2 per cent. — an earnest of better things to
come — all of which may be regarded as proof of an im
proved condition of things. It may be accepted that
the prospects of the Lima Railways are particularly
bright at the present time.
The Lima Light, Power, and Tramways Company
(Empresas Electricas Asociadas) is a Company formed
under the laws of Peru, and it works the following
group of lines : Ferrocarril Urbano de Lima, which is
an electric tramway of about 33 kilometres of single
track, running through the principal streets of Lima —
the number of passengers carried last year exceeding
17,000,000— and the Tranvia Electrica de Lima y
Chorillos, a light electric railway, about 25 kilo
metres of single track, running in conjunction with the
above-mentioned Urban tramway, and connecting the
city and its suburbs, Miraflores and Barranca, with the
seaside resort of Chorillos. Last year it carried over
3,000,000 passengers. The Ferrocarril Electrico de
Lima y Callao, which is a light electric railway of about
3 kilometres of single track connecting Lima with
Callao, the principal port of the country, and serving

PERU OF THE TWENTIETH CENTURY
also the town of Callao and its small suburb La Punta
(the passengers carried last year exceeding 3,300,000),
is likewise comprised within the group ; as are also La
Compania Nueva Tranvia Electrica, which is a tramway
built to compete with the Tranvia Electrica de Lima y
Chorillos, but which, as stated above, was bought out
by the Empresas Electricas Asociadas — the number of
passengers carried last year exceeding 800,000 ; the Lima
Railway Company, Ltd., an English concern, which has
leased its business to the Lima Light, Power, and
Tramways Company, and which runs a line from Lima
to Chorillos ; and, finally, La Empresa Electrica de
Santa Rosa (Electric Light Company of Santa Rosa),
which owns the power-stations, supplying electric
current required for the tramways, railways, lighting,
etc., of Lima, Callao, and Chorillos, and their suburbs.
It will thus be seen that this Company has a solid and
valuable property, and, if I except the Lima Gas Com
pany, it has no competitors. As a matter of fact, even
this latter concern cannot be recorded as a competitor,
since the greater part of the share capital is held by the
Lima Light, Power, and Tramways Company, who thus
control the charges made. In regard to the financial
condition of the enterprise, it may be said that the share-
capital outstanding amounts to £1,350,003, together
with an issue of £1,200,000 of 5| per cent, first mortgage
debenture stock.
The North- Western Railway of Peru holds a conces
sion, dated December 12, 1906, for the construction of
a railway from Lima to Savan via Huacho, with branch
lines to the ports of Huacho and Chancay, both of
which are situated upon the Pacific Coast of Peru, in
the Province of Lima. There can be no doubt about the
ultimate value of such a railway, for the main line will
run from the capital to a rich and hitherto undeveloped
district, The total length of the main line, which is

RAILWAYS
to be a 3-feet gauge, is to be 253| kilometres (158| miles),
with the necessary double tracks and sidings. The
ports of Chancay and Huacho are to be connected with
the main line by short branch lines, the length of that
to Chancay being 12J kilometres, and that to Huacho
120 kilometres. At both these ports suitable station
accommodation is to be provided for the efficient
handling of the traffic. Construction work was com
menced towards the end of 1909, and by September 30,
1910, some 71 kilometres of earthworks had been com
pleted, including three-fifths of the surface work of the
whole line. Since then further considerable progress
has been made, while the bridge over the River Huacho
has been erected, as well as the bridge over the River
Chancay. This latter construction has eight spans of
15 metres each, and is altogether an excellent piece of
work. The capital of the Company is £600,000, divided into
ordinary shares of £1 each, and there is a first mortgage
debenture issue amounting to £996,600. The Company
is in the enjoyment of an annual guarantee from the
Peruvian Government for thirty years of £49,830. The
Government has not only consented to pay this, and
which amount covers entirely the interest on the deben
tures, but has undertaken to make good losses incurred
during the thirty years referred to in the working of the
railway. I think this act may be regarded as a proof
of the abundant goodwill entertained by the Peru
vian Government to foreign enterprises of a reputable
character. The Cerro de Pasco Railway is a line constructed
primarily for the purposes of the important mining
company bearing the same name. It has a length of
82 miles, and crosses the famous Juan Pampa, or plain,
one of the most interesting spots in South America,
and, moreover, of historical interest, inasmuch as it was

234 PERU OF THE TWENTIETH CENTURY
the battleground of Simon de Bolivar, where he and his
army and the allied army, composed of Peruvians and
all the various neighbouring countries, defeated the
Spaniards on August 6, 1824. A description of the
town of Cerro de Pasco will be found in Chapter XXII.
A railway from the Pacific Coast to the Ferrobamba
mines may be constructed in the near future. The
London Company owning the mines, which are situated
in the Province of Cotobambas, Department of Apuri
mac, came to loggerheads with the Southern Railway
management, which has the only line running anywhere
near the mines, because they could not agree upon the
terms under which the extension from the Cuzco
terminus and the mines at Ferrobamba should be built,
and the rates to be charged for carrying down the ore
to the coast (at Mollendo). Thus the Company, if it re
mains in English hands, will build the line on its own
account. It is suggested that the starting-point shall
be at the port of Lomas, and that the line shall then
traverse the wild and desolate pampa of that name —
and where absolutely nothing in the way of traffic can
be expected — following along the left bank of the Acari
River to the Amato ranch, cross the river, and continue
to San Pedro, in the Province of Lucanas. Thence it
will pass through the Quilcota pampa, and proceed to
the town of Pampachirri, Province of Andahuailas,
descending the canyon at that point, and touching at
Talavera on the Apurimac River, again crossing the
river and reaching Ferrobamba. The entire distance
from Port Lomas to the mines would be about 100
leagues (300 miles), and the maximum grades are
estimated at from 3 to 3| per cent.
Although, as indicated, passing through unproductive
territory for a portion — the greater portion — of the
route, the railway would, on the other hand, touch
near the coal deposits of San Pedro, San Juan, Chilques,

Remarkable Sand Dune, near La Joya (on the Southern Railway).

-» \Z '-'¦'1

Waves on the back of a Sand Dune (passed on the Southern Railway)

RAILWAYS 235
and San Crist6bal, all in the Province of Lucanas.
Likewise it would pass through the gold, silver, and
copper mines of Querobamba. The estimated cost of
the railway is $6,000,000, say £600,000.
Should the strong American syndicate, which already
holds practical control of the Ferrobamba mines, acquire
them eventually, the line will still be constructed.
An important new undertaking is the Peruvian
Pacific, or, as it is known locally, the Chimbote-Recuay
Railway, a length of about 168 miles in connection with
an English Company — the Chimbote Coal and Harbour
Syndicate, Limited (see p. 223). The first section of the
line was to have been completed and opened by July,
1909, but for some reasons the work was stopped, and
the line is still incomplete. In this matter the Govern
ment behaved uncommonly well, and much more
liberally than many — I might even say, most — Latin
Governments would have done under the same circum
stances. As the terms of the contract were by no
means complied with, the concession ipso facto became
null and void ; but so far from acting upon this advan
tage, the Government not only continued the conces
sion and renewed it from time to time, but returned to
the concessionaire, Mr. F. J. Shafer or his successors, a
considerable portion of the amount which had been
deposited as caution money. No doubt the line will be
finished by someone at some time, since its completion
means opening up some very rich coalfields, as well as an
entirely new agricultural and wheat-growing area of land.
The three extensions which the Peruvian Corporation
have now in hand — viz., the Sicuani-Cuzco, the Oroya-
Huancayo, and the Yonan-Chilete, to all of which I
have already made some reference — will be built, I
understand, well within the estimated prices, which
amounted for the three undertakings to something over
£1,127,000. The estimated price was £1,130,000.

CHAPTER XVIII
Shipping — Principal ports — Panama Canal effect — Steamship lines —
Improved foreign services — Freight — Peruvian Steamship Company
line — Bates in force — Further new routes — Coastal services —
Government subsidies — Benefits from American railway connection
— British shipping — Latest statistics — Port of Callao — Iquitos —
Docks — Railways — The town.
In spite of its immense coastline, extending over 1,200
miles, the Republic of Peru cannot be said to be possessed
of more than three good ports, and these are rather
in the nature of open roadsteads — namely, Paita, Callao,
and Pisco. There are also the ports of Pacasmayo,
Trujillo, Salaverry, and Eten, and a number of small
inlets at which vessels of a certain tonnage are in the
habit of calling at regular intervals.
The principal Pacific ports for the collection of cus
toms dues are as follows : Paita, Eten, Pacasmayo,
Salaverry, Callao, Pisco, Mollendo, and Ho.
The northern shores are mainly long and melancholy-
looking stretches of rocks and sand, while, in the
southern part, one sees high promontories rising ab
ruptly from the shore, the waters of the numerous inlets
having an average depth of 100 to 120 metres. Owing
to the absence of good harbours, the large ocean-going
boats must lie outside, where there is an almost con
tinual and sometimes aggravating swell, becoming upon
occasions so violent as to prevent the lighters and small
boats from approaching the vessels. Thus, it is most
desirable that there should be some substantial amount
of capital found for the construction of good harbours,
and I am glad to say that something practical is being
236

SHIPPING- 237
done, and by a British concern, to improve the landing
and loading facilities at the important port of Mollendo.
Of this enterprise I speak more fully when I talk of the
undertakings connected with the Peruvian Corporation
(see p. 199).
There can be no question that, with the completion
of the Panama Canal, which event may reasonably be
looked for by the stipulated time — namely, January of
1915 — there will be an immense increase in the South
American West Coast trade. All the ports from Panama
downwards will participate in this revival of coastwise
activity, and it is satisfactory to observe that the more
intelligent portion of the trading and shipping com
munity in Europe is fully alive to the possibilities which
will open up before them, with the result that arrange
ments are being made to increase the number of vessels
calling, as well as to improve the services generally.
Compared to the existing Pacific services between
San Francisco and Panama, mainly in the hands of the
Pacific Mail Steamship Company, one of the most
autocratically managed and most deservedly unpopular
lines to be found in the Southern Hemisphere, the lines
south of Panama are no doubt regarded as exceptionally
good. But if they be judged by any other standard of
merit I am afraid that some would be found lamentably
wanting, both in regard to efficiency, punctuality, and
the charges which the practical absence of competition
enables them to levy upon shippers and passengers
alike. A change is now coming over the situation,
however, for which, as I have said, the impending open
ing of the Isthmian Canal is directly responsible.
The principal business men of Peru have also been
active in the matter of providing additional steamship
service, and of recent years a number of the most
prominent and wealthy among them formed a local
company known as the " Compania Peruana de Vapores

238 PERU OF THE TWENTIETH CENTURY
y Dique del Callao." The subscribed capital is £300,000,
but the Company had authority from the Supreme
Government to issue bonds up to an additional £350,000,
all of which has been or will be expended upon buildmg
a fleet of thoroughly up-to-date vessels, which will be
capable of meeting the present and prospective demand
of the coastwise traffic, and yet yielding a fair commercial
profit to its incorporators.
The Company are no longer working upon the basis
of the published tariffs of existing lines as a maximum
charge for passengers and freights, but are making their
own rates both for passengers and freight. No sooner
was the new Company formed than it met with the
cordial support of nearly all the commercial community,
as well as that large class of passengers who are con
tinually passing up and down the coast, and most of whom
have at some time or other suffered from the rapacity
and incapacity of some of the existing steamship lines.
Early in August of this year (1911) the Company
proposed to establish a fortnightly fast service between
Panama and Valparaiso that will make the voyage
between Callao and Panama in ten days, under the six-
day quarantine regulations now in force, and when a
four-day limit can be given them the Company propose
to reduce the time to eight days. About the be
ginning of next year the Company hope to give a weekly
fast service. This will reduce the time between Val
paraiso and New York to thirteen to fourteen days
either way. The new service will so reduce the time
between New York and Buenos Aires, via Valparaiso
and the Transandine Railway, that all the mails for
Argentina will be forwarded via the Isthmus, Valparaiso,
etc., in sixteen to eighteen days, whereas at present the
quickest route, by the new " Highland Line," is one of
twenty-three days.
One of the first actions of the newly-formed Company

SHIPPING- 239
was to order a floating self-docking dock, and, after a
good deal of competition between contractors in Europe
and the United States for the construction of it, this
dock was built by Messrs. Swan, Hunter, Wigham,
Richardson and Company, Limited, of Wallsend-on-
Tyne, England. The stormy voyage to South American
waters has gone down into history as one of the most
remarkable on record, and it needs no further comment
in testimony to the solidity of the dock's construction.
The passage through the Straits of Magellan and its
eventual arrival at Callao on March 2, 1909, would form
a subject for an interesting and exciting Clark Russell
romance. The dock is a conspicuous success, and is
capable of lifting a ship weighing 7,000 tons in two hours.
The charges made for the services of the floating dock
are as follows :
Steamers of 400 tons or over : first day, 45 cents per
gross ton ; for each of the following four days, 33| cents
per ton ; for each subsequent day, 22J cents.
Sailing vessels of 400 tons and over : first day on dock,
27 cents per gross ton ; each of the four following days,
13| cents per ton ; and each subsequent day, 11 cents
per ton.
Tonnage in all cases is gross registered tonnage, and
is charged for in accordance with " Lloyd's Register."
Special rates are in force for docking war-vessels,
steamers and sailers under 400 tons gross register.
The steamers built for this Company, which enjoys
an annual subsidy from the Peruvian Government of
£30,000 for twenty-one years from 1910, are admirably
suited to the West Coast trade. They were originally
intended to make the voyage from Callao to Panama
and vice versa under four days, but a quicker passage
is actually on record. At present there are several
steamers, each 400 feet long over all, 46 feet beam, and
23 feet 9 inches depth of hold, with gross tonnage of

240 PERU OF THE TWENTIETH CENTURY
3,800. The boilers have been constructed to burn oil
fuel, but these have not proved as satisfactory as was
hoped, and experiments with them are still being carried
on. The vessels are fitted with turbine engines of
sufficient power to give an average speed of 18 knots
at sea with loaded ship, and to carry 120 first-class and
100 second-class, together with the usual number of
deck passengers. I understand that as high a speed
as 21 knots has actually been attained, but the commer
cial speed at which they will be run is 16 knots. The
builders of these vessels are Messrs. Cammell, Laird and
Company, Limited, of Birkenhead.
This Company now possess the five fastest boats on
the West Coast of South America, the fleet being as
follows : Mantaro (put on the route in February, 1911),
Urubamba (put on in March), Pachitea (about June),
and the new Huallaga (in place of the vessel bearing the
same name, which was burnt in July, 1910), which is
expected to be on the line about the month of October
of this year. A fifth vessei belonging to the same
Company is the Ucayali, which was one of the first to
be constructed. I may mention that the insurance
upon the Huallaga which was lost, and which was
covered for £105,000, was paid in full.
According to the latest agreement made by the
Government, a subsidy is to be paid annually to the
Peruvian Steamship Company for the use of the five
new boats which have been constructed, and which are
to be converted, as it may become necessary, into five
auxiliary cruisers, thus greatly increasing Peru's naval
power in the event of war.
The other principal steamship companies which are
doing business on the West Coast are the Pacific Steam
Navigation Company, Limited, of Liverpool (now
amalgamated with the Royal Mail Steam Packet Com
pany), and the Compania Sud-America de Vapores, of

SHIPPING 241
Valparaiso. These concerns have long worked hand- in-
hand, arranging their sailings in such a way as to make
alternative calls at all the ports between Panama and
Callao, and between Callao and Valparaiso ; while the
vessels of the first-named Company proceed to Europe
through the Straits of Magellan.
Another West Coast line is the Kosmos Company, a
German concern, but one which has for years past built
up for itself a reputation for unpunctuality, which is
little less than discreditable, the sailing dates being a
subject pour rire owing to frequent and erratic changes.
There has been practically no dependence to be placed
upon the departure or arrival dates of Kosmos boats, and
much inconvenience as well as occasional pecuniary
losses have been suffered by those who have had faute
de mieux to use them.
The amount of competition for freights on the West
Coast was very keen before the advent of the Compania
Peruana, and in the present state of affairs there is
scarcely sufficient freight to go around. The freight
charges also are still sufficiently high to keep shippers
from booking space very much in advance, the hope
always existing that rebates or rate- cutting of some kind
or other will be offered by one Company in order to
filch away the carrying business from another. The
same kind of cut-throat competition has been observed
in regard to the Central American ports, where the
Pacific Mail Steamship Company, the Hamburg- Ameri
can Steamship Company, and the Kosmos Line are, and
for some years past have been, in keen competition.
There is yet another line of German steamships,
known as the Roland, which, like those of the Kosmos,
make monthly voyages to European ports (Havre,
Antwerp, Hamburg, and Bremen), as well as to the
Straits of Magellan. These steamers make runs, more
or less punctually, along the whole western coast of the
16

242 PERU OF THE TWENTIETH CENTURY
Pacific Ocean, proceeding northwards as far as San
Francisco, calling at Panama and the principal Central
American and Mexican ports. The steamers of the
Merchants' Line also serve the Peruvian coast trade as
far as the eastern ports of the United States. The two
British Companies, the Booth Line and the Red Cross
Steamship Company, carry a good deal of the inter
national trade for the Peruvian region of the Amazon
River, despatching one of their steamers monthly from
Liverpool and another from New York to the Peruvian
port of Iquitos. The Japanese Steamship Company,
" Toyo Kison Kaisha," and a Chinese Company conduct
the service from Callao direct to the prmcipal ports of
Japan and China, carrying the mails for the East.
There are several companies of minor importance
which carry on a more or less regular service with small
steamers up and down the coast of Peru.
The Lamport and Holt and Gulf Line steamers call
regularly at Callao from Liverpool and Cardiff, pro
ceeding with cargo to Guayaquil, in Ecuador. The
Merchants' Line (or New York and Pacific Steamship
Company), owned by Messrs. Grace Brothers of London,
New York, Valparaiso, and Lima, as well as the Barber
Line, have a regular service from Chilian and Peruvian
ports to New York. Sailing vessels which arrive at
Callao generally bring grain or coal from Australia,
grain and lumber from Puget's Sound, and general cargo
from Europe ; but this class of craft is gradually diminish
ing, and Callao is ceasing to be a sailing-ship port.
It is not without interest that shippers on the West
Coast of South America have heard of the proposed
new route with its connection at Buenos Aires and
overland to the Pacific, to be undertaken by the Pacific
Steam Navigation Company, which has determined
upon taking this bold step after about ten years'
meditation.

SHIPPING 243
There are those in Peru who remember clearly the
days when the east and west coasts of the South Ameri
can continents were literally " seas asunder," and while
some of these have not visited Europe from the day they
arrived in Peru, some thirty and forty years ago, they
are none the less interested in the promised evolution
of shipping arrangements in which they are likely to
participate to the fullest extent. To-day the drills and
picks of the engineer have pierced the Cordilleras in
one direction, and are rapidly proceeding to pierce it in
another ; while, as I write, a scheme is being discussed
for the construction of a railway to run from Iquitos,
in Peru, to the Pacific Coast by way of a tunnel through
the Northern Andes.
Iquitos is a Peruvian port situated some 2,600 miles
up the River Amazon from the coast, but in the most
northerly portion of this Republic. It has a popula
tion of about 12,000, and its chief export is rubber.
Steamers, drawing up to 23 feet, make monthly trips to
Iquitos from the Para end, occupying nearly thirty days
between Para and that port, most of the boats belonging
to the lately disbanded British concern known as the
Amazon Steam Navigation Company, Limited.
In July last a new concern, called the Amazon River
Steam Navigation Company, was registered, with a
capital of £300,000, and which purchased from the old
company a great part of its flotilla. None of the names
of directors upon the old Board are found upon that of
the new ; consequently, one may assume that the last-
mentioned enterprise is an entirely independent one.
The head office, instead of being in London, will be in
Para, with a branch office at Iquitos.
At Iquitos there is a floating mole, alongside which
the shallow-bottom stern-wheel steamers plying on the
River Amazon can moor ; and it is now suggested that
one termmus of the railway should be placed here and

SHIPPING

245

Department of Loreto passes through the Iquitos
Customs, while a thriving trade is carried on between
the small river steamers bringing up consignments of
rubber from, and taking back supplies to, ports as far
away as Para in Brazil (a distance of nearly 2,650 miles).
Among the British lines of steamships which travel here
are the Booth Line, of Liverpool, bimonthly trips being
made between England and Peru ; the Iquitos Steamship
Company, Limited, of Liverpool ; the Red Cross Line,
which runs monthly steamers ; and some New York
" tramps." All seem to do a flourishing trade.
The total tonnage of British shipping during 1909
amounted to 15,104 registered tons, as compared with
11,927 tons during 1908. There were twelve steamers
of 13,868 tons for Liverpool and other European ports
and two steamers of 1,236 tons for New York. The
exports from Iquitos consist of hides, vegetable ivory,
tobacco, Panama hats, and par excellence rubber. Alto
gether for the year mentioned (the last figures officially
certified as accurate) the export trade amounted to
2,552,066 kilogrammes, as against 2,385,152 kilogrammes
in 1908. The importance of Iquitos as a Customs collect
ing-station may be seen from the following figures for 1909 :

Number.

Value.

Duties.

Importation (packages)
Exportation (kilogrammes)...

285,642
2,522,066

£573,270
£951,956

£89,811£60,260

When the railway — already commenced — to connect
the Pacific Coast with the Upper Ucayali River is com
pleted, the importance and prosperity of Iquitos will be
doubled. This line starts from Cerro de Pasco, to which
point a line already exists (see p. 226), and reaches the
river at Pucalpa, about four days' journey above Iquitos
by steamer. Vessels of about 200 to 300 tons, but of

246 PERU OF THE TWENTIETH CENTURY
light draught, can reach here at any time of the year.
The line should be open for traffic next year (1912).
As for public buildings, Iquitos has its unambitious
share. There are a capital public hospital, a college,
and a small but very comfortable little theatre, con
structed of corrugated-iron sheets, and which will accom
modate 1,000 people. I cannot, however, compliment
the Municipality upon the general condition of the
streets, which are always uneven and badly paved, and
frequently anything but clean. But with the growmg
prosperity of the town these drawbacks will no doubt
disappear. Anyone who remembers Panama five years
ago, and who sees it now, will recognize what can be
done with a tropical town when the authorities are
willing and capable.
Another matter of importance in connection with the
Peruvian coastal service is a new weekly express itine
rary, which has been established on the Southern Railway
between Mollendo and La Paz, which will eventually con
nect with the steamships calling at Mollendo, and greatly
facilitate the arrival and departure of Atlantic-bound
vessels — an innovation which will work advantageously
for those firms having headquarters at Callao and Lima.
These, however, are not the only notable addi
tions made or contemplated in connection with South
American transportation. The opening of the Panama
Canal, and the termination of construction of the railway-
line down from New York along the East American
coast to Buenos Aires, are to have a rival in the Old
World itself in the contemplated line of railway down
the West Coast of North Africa, the completion of
which will be of incalculable advantage to South America,
bringing it within three days' journey of the Old World.
The new project, it is proposed, will have its origin
at Gibraltar, where the European railway systems will,
by means of a 10-mile car ferry, cross the Straits of

SHIPPING 247
Gibraltar and connect with new railroad about to be
built, starting at that point in North Africa, and ex
tending down along the coast to either Bathurst or
Dakir, both of which ports would make a suitable ter
minus for the railway. The distance from Gibraltar to
Bathurst is less than 1,900 miles, and from Bathurst to
South America across the Atlantic is a further 1,500,
making a total of 3,400 miles ; and the entire journey
would occupy from five to six days. The scheme is
being planned by a Spanish company, and, on account
of national rivalry and jealousy, usual in undertakings of
this description, it has been decided to give it an inter
national aspect. The estimated cost to carry out the
contemplated scheme will reach £27,000,000.
Owing to the deterrent factors which have already
been referred to, the maritime traffic carried on by Peru
for the last few years has been decidedly unsatisfactory ;
and while, perhaps, showing a limited advance upon
that of the previous years, it falls far short of what one
might expect of a country occupying so fine a coastal
position and with such magnificent productive resources.
There can be little question that in a few years' time the
arrivals and sailings from the port of Callao, which is
bound to feel the beneficial effects of the Panama
Canal more than any other port in South America,
will mark a decided advance, and will serve to probably
double the commercial and shipping figures of to-day.
Glancing at the statistics which were provided for
1905 and 1906, it seems that Great Britain was at that
time far ahead of all other countries in regard to the
tonnage of the steamers coming to Callao. In the latter
year — namely, 1906 — the arrivals showed for Great
Britain 507,309 tons, and the sailings 502,876 tons, her
nearest competitor being Germany, with 172,063 tons
arrivals, and 182,608 tons sailings. Chile came third,
with 168,272 tons arrivals, and 170,070 tons sailings.

248 PERU OF THE TWENTIETH CENTURY

Both France and Norway showed considerably higher
results than the United States, which, indeed, marked a
most astonishing falling off in both arrivals and sailings.
In 1905 the United States recorded 9,450 tons arrivals,
and 8,708 tons sailings ; while in 1906 these fell away to
3,420 tons, and the sailings to 2,678 tons.
It is interesting to Britishers to know that the United
Kingdom still occupies the prmcipal position in shipping,
the British vessels touching at the port of Callao amount
ing to more than double those of any other country.
Of late years Germany has entered into keen competi
tion with the coasting service of this port, Teutonic
boats making a fortnightly call from Valparaiso and
intermediate ports to Callao, and vice versa, and having
introduced a through service, with an immediate cut of
50 per cent, on the old rates. The following figures will
give an idea of the shipping at Callao for the years 1908-09,
which, unfortunately, are the latest figures available.

Nationality.

British :
SteamSailing
Chilian :
Steam
Sailing
German :
SteamSailing
French, steam...
Dutch, steam ...
Norwegian :
Steam
Sailing
United States, sailing.
Japanese, steam
Peruvian, coasting

1908.

Vessels. Tonnage.

Total

239 5
108 4
81 3
10 1

469

626,190 9,672
186,554 2,046
269,387 5,138
32,242 2,588

977
5,476
9,442
6,719

1909.

Vessels, j Tonnage.

1,156,331

250 6
109 2
83 1
11

45
6
3
4

741,547 10,549
194,680 140
285,441 1,457
34,097

9,420
6,333
4,137
10,154 3,245

484

1,301,200

SHIPPING

249

For the year 1909 the British steam-vessels which
entered and cleared in the foreign trade of the port of
Callao were as follows :

Steam Vessels Entered.

With

Cargo.

In Ballast.

Total.

From—

Vessels.
Tonnage.
Vessels.
Tonnage.
Vessels.
Tonnage.
United Kingdom
71
229,317
2
130
73
229,447
Coastwise
35
86,620
5
3,666
40
90,286
Argentina
—
—
1
2,948
1
2,948
Chile ...
57
148,672
12
17,168
69
165,840
China ...
1
3,222
—
—
1
3,222
Colombia
1
2,999
—
—
1
2,999
Ecuador
9
25,662
—
—
9
25,662
Mexico ...
—
—
1
244
1
244
Panama
27
64,287
—
—
27
64,287
United States .
23
58,174
—
—
23
58,174
Total
224
618,953
21
24,156
245
643,109
Those vessels which cleared during the same period
amounted to an aggregate of 209, representing 583,774
tons of cargo, of which the United Kingdom claimed
thirty vessels, with a tonnage of 121,699. Of the
vessels in ballast, and which amounted to an aggregate
of thirty-six, with a tonnage of 59,153, there were no
British bottoms. Of the twenty-five sailing-vessels
which entered, nine were of the United Kingdom, with
a tonnage of 14,287 ; and eleven were Australian, with
a tonnage of 15,319. Of sailing-vessels clearing with
cargo there was only one, and that belonged to native
owners. Looking at the comparative list of the shipping of all
nationalities which entered and cleared in the foreign
trade of the port of Callao, for the period mentioned
(1909), there were 224 British vessels out of a total of
496, which represented an aggregate of 618,953 out of
the total tonnage of 1,161,732.
250 PERU OF THE TWENTIETH CENTURY
The port of Callao, which is one of the most important
on the West Coast of South America, receives, on an
average, some 400 steamers and 1,020 sailing-ships in
the course of each year, in addition to an immense
number of native-owned smaller craft devoted to the
coasting trade. On balance, there are always anchored
in the port some twenty steamers and forty sailing-
vessels. The port is provided with a fine dock, which
at the same time serves as a wharf, and bears the name
of Muelle Darsena. The inside measurements of this
wharf are 250 metres in length by 250 metres in width,
covering a surface of more than 50,000 square metres.
One of its side- walls is projected a further 180 metres
in length, and provides an additional dock, while the
whole is connected with the shore by means of a bridge
constructed upon iron rails, and extending 900 metres in
length. Previous to the arrival of the self-docking dock,
which I have described already, there had been in use a
floating dock, which admitted vessels of 25 feet draught
and 500 tons displacement, as against the new dock,
which will lift a vessel weighing 7,000 tons in two hours.
Next to Callao, the most important port for British
vessels is Mollendo, and here, out of a total of 460 steam-
vessels, representing a tonnage of 275,339, the British
claimed 74,547 tons. In regard to sailing-vessels with
cargo, the British and the United States stood on a par
so far as the number of vessels was concerned ; but the
former represented a total tonnage of 10,549, as against
4,137 of the United States. The sailing-vessels clearing
from this port were very few, numbering only four with
cargo, and twenty-two in ballast ; and out of these the
British claimed eight, with a tonnage of 15,481, and the
United States six, with a tonnage of 4,137.
The Customs receipts at this port in 1910 amounted
to £797,867, the largest sums collected in one month
being £84,343 in June.

SHIPPING 251
It is from Mollendo that practically all of the Peru
vian rubber is shipped from the Pacific side, and the
commerce carried on is of great importance. For the
past year (1910) the shipments in this product alone
were as follows : Peruvian rubber, fine, 1,680 quintals
(1 quintal = 100 pounds), or, say, about 84 tons ; Concho,
4,164 quintals, or about 208 tons ; Bolivian rubber, of
all classes, 280 tons. The export trade from Mollendo,
which has been worked up with some energy in opposi
tion to the shipments via Iquitos and Para to Europe,
is not likely to be benefited by the imposition of the
import duty of 8 per cent, ad valorem which came into
force on July 1 last (1911) (see Appendix). Attempts
were made to induce the Government to modify this
tax, but unavailingly. No tax, however necessary, has
been imposed by any Government upon any single
article, but petitioners have been found to demand its
withdrawal. Sydney Smith, the great wit and essayist,
was right when he declared that there are men " who
prefer any load of infamy, however great, to any pressure
of taxation, however light."
Improved shipping facilities at the coastal ports of
Peru comprise the construction of a new port in the
Matarami Bay, north of Islay, and a railroad connecting
it up with Mollendo, and thus with the Mollendo-Are-
quipa Railway branch of the Southern Railway. The
Peruvian Corporation have this matter in hand, and a
period of three years in which to carry it out. The port
of Iquitos is already experiencing much advantage from
a recently opened line from that port to Motonacocha.
Incidentally, it may be mentioned that this line is one
of the most picturesque, and the station to which it
runs one of the most popular in the vicinity of Iquitos.

CHAPTER XIX
Textile trade — Kaw materials — Cotton production — Capital employed —
Woollen factories — Matches and flour — Japanese competition —
Striking enterprise — Lima Electrical Trust — Sugar machinery —
Copper-mines machinery — Waterworks equipment — Taxation of
commercial travellers — Correspondence between Birmingham
Chamber of Commerce and Foreign Office — Irrigation enterprise and
machinery.
Although Peru has of late years undoubtedly made a
decided advance as a manufacturing country, it is
hardly likely for some years to do much more than use
up its own raw materials ; but these it should be enabled
to turn out in fairly large quantities. I cannot see that
the Republic can ever become practically independent
of foreign manufactures, as, for instance, Mexico is
becoming. The textile industry is, however, one of the
few exceptions, and already a considerable difference
in the amount of imports from Great Britain, Germany,
and the United States of America in regard to cotton,
linen, and woollen goods, is to be noticed. The raw
material is produced locally, both cotton and wool, and
the qualities are in most cases quite equal to the best
American or Egyptian that I have seen. For some
hundreds of years wool and cotton stuffs of primitive
manufacture have been woven in the country, but the
introduction of modern looms has resulted, as it has
done in India, Mexico, and elsewhere, in the establish
ment of a number of factories, most of which are doing
uncommonly well.
I believe that the first loom erected in Peru for the
weaving of cotton goods was in 1874, a woollen factory,
252

MANUFACTURES 253
however, having preceded it by some seven years.
To-day there are seven or eight manufactories of cotton
goods, five out of which are established upon the out
skirts of the capital, and the others at Arequipa. The
largest establishment is known as the Forga, and at the
present time it is making all classes of grey goods. The
same sort of stuff is being produced by the Malatesta
Mill at lea, where there are 100 looms ; by the Pro-
greso, with 200 looms ; the San Jacinto, with 100 looms ;
the Victoria, with thirty-three looms ; the Vitarte, with
359 looms ; while the Inca Cotton Mill turns out, with
its 450 looms, all kinds of bleached goods. There are
no printed cotton goods produced in the country,
owing to the expense of introducing the costly pattern-
rollers and the limited market for such classes of manu
factures. The principal supplies of these goods still
come from Manchester, which stands a long way up on
the Imports List. The United States, however, have
come forward in a remarkable manner as a producer of
cheap and attractive-looking prints, the natives of all
these Latin-American countries preferring such articles
on account of their brilliant colourings and generally
prettier designs to those of any other country.
How greatly the cotton industry has progressed in
Peru may be judged from the fact that but five years
ago the total trade amounted to between £250,000 and
£300,000, whereas for the past eighteen months it has
reached £1,200,000 exported.
From the figures which have been supplied to me,
but for the accuracy of which I do not vouch, there are
being produced in Peru to-day some 35,000,000 yards
of stuff from the native looms, principally of grey
domestics, which are in good demand, not only in the
markets of Peru, but also in those of Bolivia, mainly
on account of the raw material of which these goods are
made being of a much higher quality than that usually

254 PERU OF THE TWENTIETH CENTURY
employed. The factories are also turning out in greatly
increased quantities ravens-duck, drills, cashmeres,
towelling, etc., but up till now there has been no attempt
to make madapollams. As a consequence of this acti
vity in native manufacturing circles, the importation
of grey domestics from Great Britain, Germany, and
the United States are diminishing proportionately. In
1909, cotton textiles were imported to the value of
£493,885, and woollen goods to the value of £201,624.
The total capital, much of which is foreign, invested
in these establishments may be placed conservatively at
£500,000. In all probability, this sum will be materially
added to during the present coming years, since there
are several factories about to be erected in different
parts of the country. The machinery employed is
almost exclusively British, since it is recognized that
the cotton and woollen machinery from Manchester
and the neighbourhood is the best and most efficient
to be met with anywhere. Such firms as Brooks and
Doxey, Limited ; Hetheringtons ; Josiah Angove ; Bar
low ; and Piatt Brothers cannot be excelled. Their
looms and spindles may be seen installed in every part
of the world, from India to Japan, and from China to
Peru. There are only four woollen factories at present in
the latter country, the most modern being the Santa
Catalina, in the. Marangani District of Cuzco. Here are
also produced blankets and counterpanes of plain
colours, while plant and machinery exist for the turning
out of woollen shirtings, underclothing, etc. Some 800
employes find occupation here all the year round.
There is but one paper-making plant, and this limits
its production to brown paper and ordinary kinds. An
immense amount of such material is used here, especially
in the Government printing offices, which are continually
engaged upon official publications. I know of no Re-

Cerro Azul : Factory belonging to the British Sugar Company, Ltd.

It J'-*

San Miguel Copper Mine, Morocociia (on the Central Railroad)

MANUFACTURES 255
publican State which turns out such an amount of
useful official literature as Peru ; and the existence of
an extraordinary number of newspapers, daily, weekly,
and monthly, causes the supply of paper often to run
very short. Paper manufacturers may take a note of
this fact, and, by availing themselves of this intimation,
form a new and important business connection with Peru
for their manufactures. The value of imported paper
in its different forms amounted in 1909 to £116,319.
There are two match factories, but the quality of the
matches produced is poor. The importations into the
country show very little diminution since the factories
were established, the principal sufferer being the Match
Company of Chicago, under whose auspices the Lima
establishment was founded. Various soap and candle
factories exist in different parts of the country, the
demand for the last-named articles being extremely
large, as in most Catholic countries. The candle in
dustry is heavily protected. Perfumery is not made to
any extent, although very generally used by both sexes,
the increase in imports under this head from the United
States, Germany, and France, with a small amount from
Great Britain, showing up strongly. The value of the
perfumery imported in 1909 was £30,406, and of ordinary
soaps £24,931.
Under the protection of differential duties, there have
been established in Peru several flour-mills, most of the
equipment coming from the United States, and some
from Messrs. Simons and Sons, of Manchester. Much
excellent wheat is grown, and of late shipments of Peru
vian wheat have been sent down the coast to Chile.
But a considerable importation is also being carried on
— namely, from California and Australia. The Santa
Rosa Mills are about the best equipped in the country,
and here are turned out large quantities of flour of a
high class ; while the factory of Arthur Field and Com-

256 PERU OF THE TWENTIETH CENTURY
pany, another American enterprise, produces biscuits.
There are also lard manufactories, the annual consump
tion amounting to some 5,000 tons, much coming from
the United States. All the same, over 30,000 fat hogs
are sacrificed annually towards this total consumption
of lard. Numerous tanneries are established, but the
processes employed are old and ineffective. There is
room for a thoroughly up-to-date establishment of this
kind. Of breweries there are also several, the prmcipal
one being that of the Backus and Johnston Company,
which, originally started in 1879 by two enterprising
Americans, is now the property of an English Company.
The enterprise has been the scene of a wholesale, and
no doubt wholesome, clearing-out process, the entire
staff being given some few years ago the " order of the
boot," and a completely new one installed. The results
have been eminently satisfactory, for, instead of losing
money, as was formerly the case, the brewery is now
coming it. The installation is practically all American,
but some modern boiling-vats and other machinery —
notably, the ice-making plant — are German.
In this Republic, as elsewhere in South America, old-
established houses are meeting with serious competition
from the enterprising and ubiquitous Japanese. A
notable instance of this is to be recorded in relation to
the Backus and Johnston Brewery above referred to.
Almost from the commencement of the Company's
career it had obtained its bottles from Germany, it being
impossible to manufacture glass in Peru owing to the
absence of the necessary sand and other ingredients.
Some two years ago the Company received an offer from
a Japanese factory to make any kind and number of
glass bottles suitable for the beer brewed by the firm,
and at a price which would " defy competition." The
Company somewhat sceptically invited the Japanese to
submit samples and prices, and in the course of a very

BREWERIES 257
few weeks these latter arrived. They proved to be not
only admirably made, but of such a novel design as to
enable the bottles to be packed as closely as sardines,
and in the same manner — " head to tail." Thus, break
ages are almost unknown, the percentage, I understand,
being less than one-quarter of 1 per cent. The glass is
remarkably clear, tough, and smooth on the exterior.
The price works out, inclusive of all packing in strong
wooden cases, and as neatly made as the bottles them
selves, with freight from Yokohama to Lima, at just
20 per cent, less than the German price. Inasmuch as the
brewery is using, even in its slack season, some 100,000
bottles a month, and in the course of the year uses over
2,000,000 bottles, the immense saving effected is clear.
The Japanese factory has now received the entire bottle
custom of the Backus and Johnston Brewery Company,
notwithstanding the fact that the manager of the con
cern is a German, with the natural prejudice of all
Teutons in favour of his own countrymen's manufac
tures. Perhaps one of the greatest fields of industry opening
up in Peru to-day is that in connection with electricity,
and here I foresee an immense opportunity for manu
facturers of electrical plant and equipment. Some two
or three supply companies already exist, but they can
only be regarded as the pioneers of a commercial and
industrial movement at present in its infancy. The
initial enterprise established here was the Santa Rosa,
with a well-equipped plant at about twenty-three miles
from Lima, which city it supplies with light and power.
The plant is capable of producing 10,000 kilowatts,
which is equivalent to 13,500 horse-power, but not much
more than one half of this amount is being supplied at
the time of writing. Practically the entire plant has
been provided by the General Electric Company, of
Schenectady, New York. The same firm are responsible 17

258 PERU OF THE TWENTIETH CENTURY
for the equipment at the Cerro de Pasco Mines — an
American enterprise — and I am given to understand
that several other important contracts are in contempla
tion with the same Corporation.
The recent — or comparatively recent — formation of
the Electrical Trust in Lima spells a specially active
campaign in all matters of electrical traction and motive
power for factories, etc. The Trust is the outcome of a
combination — the Santa Rosa Company, the English
Railways Company, and the Lima Tramways Company
— all of which are now working under one central
management, instead of, as before, cutting one another's
throats in frantic competition. The total capital of this
concern is $21,000,000,* or, in English equivalent,
£2,100,000. It is to be hoped that the Trust, being
formed upon the same basis as the other United States
combinations, will carefully eschew all the bad, and
retain only the good, points of those unpopular institu
tions. There is one thing certain, and that is the South
American public is not at all likely to submit tamely to
extortion or tyranny of any kind. It has a sharp but
effective way of dealing with impositions, whether they
emanate from their own rulers or from foreign capitalists.
The result of attempting any kind of bullying or arro
gance upon the part of a public Company, as was wit
nessed in Bogota, Colombia, when the United States-
owned tramway Company sought to play the tyrant,
is usually a " bad break " for that particular Company.
The Latin-Americans are not quite so tame in these
matters as are their northern brethren.
Manufacturers of sugar machinery, of mining equip
ment, and of railway supplies, should keep a careful eye
upon the industrial development of Peru, which is
likely soon to be in the market for large quantities of
these as well as other supplies. The Republic is prac-
* 1 sol=2s., or 50 cents. (U.S.A.).

ELECTRICAL COMPANIES 259
tically free from debt ; its immense natural riches are
attracting the attention of capitalists in both Europe
and the United States, and the spirit of enterprise
among the people themselves is awakening to an alto
gether remarkable extent.
With regard to sugar machinery, I may repeat that
out of the forty or fifty different coastal plantations
which exist, and the majority of which are doing ex
tremely well, not one has as yet installed a complete and
up-to-date mill. The largest of these factories still
retains machinery which bears the stamp of over thirty
years ago, but the second largest mill has of late sent
an order to Glasgow (Messrs. J. McNeill and Sons,
Limited) for a complete eleven-roller mill. It is not too
much to say that at least one-third of the remaining
factories would be open to introduce modern machinery
and plant if proper representations were made on the
part of manufacturers, and if drawings, specifications,
and prices for plants, delivered erected on the ground,
were submitted. Peru, indeed, offers almost a virgin
field for manufacturers of sugar machinery, and the
demand for installations is growmg as steadily as the
industry itself, which to-day is probably more prosperous
and more stable than at any time of its existence (see
pp. 149-156).
As I have attempted to show in these pages, there are
few countries in the world more naturally adapted to
sugar culture than Peru, and the circumstances of its
manufacture upon the scene of its growth are naturally
much in its favour. All the irrigation is artificial, which
is likewise to some extent an advantage, since, while
additional labour and expense are involved, the plants
being watered or left dry as occasion and discretion
may dictate, it does away with all losses from an excess
or otherwise of rain. For this reason the cutting of the
cane takes place in the valleys on the coast without in-

260 PERU OF THE TWENTIETH CENTURY
terruption during the whole twelve months of the year.
Thus, the mills are continually running, and, unlike the
case of Brazil, for instance, where the machinery is
lying idle for nine out of the twelve months, there is
work all the year round. All classes of sugar are made
— molasses, brown, granulated, and white — the qualities
being, in my judgment, as fine as are to be found any
where in the world. That the output has grown steadily
during the past few years can be seen from the figures
which are given on p. 157.
According to Mr. Caesar Broggi, the Director of the
Governmental Experimental Station, the total produc
tion for 1910-11 can be estimated at 165,000 tons
=£1,000,000. It will be observed that serious and successful efforts
are being made to increase the cultivation of sugar in
Peru, and there should be, therefore, an excellent oppor
tunity for those firms which make a speciality of sugar
machinery to extend the range of their business here.
Of the existing plants, many — indeed, I may say most —
are of an antiquated type, and a really animated and
energetic representative might succeed in inducing many
of the mill-owners to introduce more modem and effec
tive machinery. Such firms as John Gordon, of London,
and John Mason, of New York, both of whose manu
factures are to be met with in all parts of Central America
and in Brazil, are very little known out here, the best-
patronized manufacturers seeming to be the Liverpool
firm of Fawcett, Preston, and Company, Limited, some
of whose sugar machinery I have seen working, after
being in constant use for between forty and fifty years.
But equally favourable opportunities exist in Peru in
connection with other industries. For instance, the
Ferrobamba Copper Company, Limited, which owns
some remarkably rich copper deposits in the Province of
Cotabambas, Will in a short while be requiring a plant

BRITISH OPPORTUNITIES 261
and equipment valued at £350,000, and which will in
clude a complete smelting plant, a powerful steam shovel,
electric traction, and transportation equipment and
material for a contemplated construction of some
250 miles of railroad from the mines to the coast. The
Company is, at the time of writing, a British one, and
would, so long as it remained under entire British control,
give preference, as I understand, to British manufacturers
of all kinds of supplies and equipment. But it is pos
sible that American control may come about hereafter,
in which event, very naturally, all necessary equipment
and material would be purchased in the United States
(see p. 234).
Another Peruvian undertaking which will shortly be
in the market for equipment and supplies will be the
Arequipa Electric Tramways Company, an enterprise
which is about to be floated on a sufficient but modest
capital (probably in Paris), to bring about the organiza
tion and amalgamation of the present horse tramways,
electric-lighting plant, and telephones for the whole city
(the second largest and most important in the Republic)
and neighbourhood. It is intended to equip the system
with the most modern type of cars, and to buy such in
the most favourable markets. British manufacturers
will have thus an opportunity of competing for a con
tract valued at some £380,000.
Yet a further enterprise offering opportunities for
contractors and manufacturers is the construction of
waterworks for the city of Arequipa, as well as a com
plete system of drainage for the town. For this, British
contractors would be doubtless preferred to any others,
since the principal South American Repubhcs generally
have adopted British waterworks installations, and in
all such cases with complete success. Contractors may
be strongly urged to communicate at once with Seiior
Berninzoni, of the Banco Italiano, Arequipa, Peru, who

262 PERU OF THE TWENTIETH CENTURY
is one of the principals concerned in all of the above-
mentioned Arequipa undertakings, and who is personally
strongly in favour of employing British co-operation in
carrying out their development.
I may say also that there is an opening for light rail
ways upon some of the existing sugar estates, of the
Decauville and Kerr- Stuart type. As more estates are
opened up and the planting area extended, as it is being
day by day, there will be a great deal of this light-
railway plant and equipment required.
Another branch of industrial progress which is to be
noted in Peru is the irrigation of the country, and here
there is a good chance of meeting with orders from the
Peruvian Government and private corporations alike.
While the country is possessed of a magnificent river
system, including as it does the incomparable Amazon,
Apurimac, the Urubamba, the Mantaro, the Maranon,
the Huallaga, the Madre de Dios, the Morona, the
Pastaza, and an extensive list of others, they are only
partly navigable and are of a torrential character,
running too swiftly and too deep down in their beds to
be of present use agriculturally. Thus, irrigation upon
an enormous scale is and will be hereafter resorted to.
Already I hear of a vast Government enterprise of this
nature, and which, if carried into effect, will necessitate
a considerable outlay upon pumping and distributing
machinery. The Government authorities are always open
to consider any scheme or suggestion dealing with such
matters, and manufacturers may take careful note of this.
Apart therefore from the opportunities to which I
have referred as existing with regard to the introduction
of modern machinery and equipment in sugar mills,
there is a unique chance to-day for manufacturers of
irrigation machinery and light railways, with their rolling-
stock equipment, suitable for various estates. There is a
pronounced demand for ploughs worked by a traction

San Luis, from Casa Blanca.

f ' ¦ ',rf ' '¦

V ' .: " — — -

Callao Dock: S.S. "Ucayali" of the Peruvian S.S. Co.

INDUSTRIAL OPENINGS 263
engine. The results of the several trials which have
been made already in this direction have, I understand,
proved disappointing. The ditch-diggers which have
been introduced have also shown various results more
or less satisfactory. Some of the planters are using
discs on their ploughs instead of shears, and many of
them claim to have achieved fairly good results. Others
employ markers on the double-mould board plough,
which lays off the furrows, thus dispensing with a man
and a team of oxen. What is also required very urgently
upon Peruvian sugar estates is a successful weeder, the
type now employed being found very unsatisfactory.
Indeed, upon the majority of plantations there is needed
a completely new and up-to-date installation of agricul
tural implements, such as may be found in other
countries for other crops. Generally speaking, however,
those sugar-estate equipments, where found, show a
preponderance in favour of Scottish mill machinery,
American locomotives and cane waggons, with British
ploughs and weeders. The smaller agricultural imple
ments, for the most part, come from the United States ;
and there are several prominent firms established in
Lima which act as agents for the American manufac
turers — such, for instance, as the houses of Duncan, Fox
and Company ; W. R. Grace and Company ; and E. Hum
phreys and Company.
Although Peru must be regarded as a country where
exceptional taxation is in force, on account of financial
necessities, it will, upon comparison, be found less seri
ously handicapped in this respect than certain European
countries — Italy, for instance. The economic condi
tions of the Republic demand imposts of some kind.
Wherever possible, these have been made as little oner
ous to foreigners as necessity would permit.
In the month of May last year (1910) the Government
of Peru proposed to impose a tax of £50 upon commer-

264 PERU OF THE TWENTIETH CENTURY
cial travellers visiting that country, and a strong protest
was at once made by the Birmingham Chamber of Com
merce, and which drew the attention of the Foreign
Office to the proposal, at the same time requesting that
an objection should be lodged by the British Govern
ment. Sir Edward Grey replied that the proposal, " as he
understood it," was to impose a special contribution of
£50 (and not £100, as his correspondent put it) for six
months upon travellers representing firms not already
established in Peru ; and, he added : " The question of
addressing representations on the subject was under the
consideration of the British Government."
It is scarcely necessary, perhaps, to add that the
question never went beyond the unsatisfactory stage of
" consideration " ; and, as a matter of fact, it was never
raised diplomatically between the British Government
and the Government of Peru. A sequel may be found
in the following letter, which the Foreign Secretary
courteously addressed to me on July 1 last in reply to
my inquiries on the subject : Foreign Office, July 1, 1911.
SlE, With reference to your letter of the 24th ultimo,
asking for information as to the tax which it was proposed
last year should be levied on foreign commercial travellers in
Peru, I am directed by Secretary Sir E. Grey to say that your
statement, "that he informed the Birmingham Chamber of
Commerce in November last that he was in communication
with the Peruvian Government on the question," appears to
be based on a misapprehension. The only letter on the sub
ject from this office to the Birmingham Chamber of Commerce
was dated May 14, 1910, and stated that, according to the
information in Sir E. Grey's possession, the tax had not been
imposed; though a Bill then before the Peruvian Congress
provided for the levying of a " special contribution " of fifty
pounds for a period of six months on commercial agents

COMMERCIAL TRAVELLERS 265
visiting Peru, if they did not represent firms already established
in that country.
I am to add that Sir E. Grey is not aware of the fate of the
Bill, but he believes that it was dropped. Further inquiry is,
however, being made. I am, Sir, etc., Lewis Mallet.
Those who are interested in this matter — and there
should be many — would do well to peruse the various
articles which have appeared from time to time dealing
with the regulations for commercial travellers in foreign
and Colonial countries in the editorial columns of the
British Trade Journal — a publication which is of the
utmost value to all who are interested in the country's
industrial progress. This useful publication has upon
frequent occasions since 1890 dealt with the subject,
when a commercial traveller, who was acting as a corre
spondent for that journal, was arrested in Sweden.
The Government has also issued from time to time
various Blue-books, giving copies of the regulations in
force, and these might also be consulted with equal
advantage.

CHAPTER XX
Peruvian Trade and Panama Canal — Probable effect — Preparation by the
United States and Germany — British indifference — Trade marks
forgeries — Peruvian Government precautions — Opportunities for
protection — British Empire League assistance — Foreign firms
registered — Irrigation undertakings — Future development.
What effect will the completion and opening of the
Panama Canal have upon Peru and the five Central
American countries ? I have frequently been asked
this question, and perhaps this is as good a place as any
in which to answer it. That capital from North America
will flow more abundantly into Peru after the com
pletion of the great oceanic waterway is a practical
certainty ; but I do not consider that there will be any
such augmentation of new industries, or that the differ
ence in investments will be so prodigious in regard to
results, as some enthusiastic critics imagine. For many
years to come the United States, with its great area and
its many undeveloped resources, will need more capital —
much more, indeed, than it can conveniently find from
among its own people ; that is to say, it will have to
borrow from Europe in addition to saving all that it can
on its own account. The old world has nowadays
fewer opportunities for industrial and commercial ex
pansion ; money is comparatively cheap ; and all new
countries on the other side of the Atlantic offer the
inducement of higher interest.
How much of this investment will be made with
purely American money ? The Yankees are certainly
becoming more and more enthusiastic, and at the same
266

FOREIGN CAPITAL 267
time more and more reckless, in their foreign invest
ments, and especially in regard to Latin-American
countries. Nevertheless, they have a long way to go
before in actual figures they can in any way approach
British foreign investments. In regard to the returns
which their investments bring them also, they have
on the whole proved far less fortunate. In all proba
bility British foreign holdings in South and Central
America to-day are well near the sum of £500,000,000
($2,500,000,000), and upon this gigantic amount of
capital they earn a fair average of 5|- per cent, per
annum, allowing for the higher and the lower rates of
interest paid (and amounting to anything between the
25 and 35 per cent, on some land-shares), down to the
modest 4J and 4f per cent, upon Railway Debentures,
and reckoning also the cases where no return is made
upon investments.
I should say, on the other hand, that American foreign
investments do not amount in the aggregate to more
than £200,000,000 ($1,000,000,000), and of this at least
seven- tenths are invested in the Republic of Mexico
and two-tenths probably in Canada. American foreign
investments are in a large measure tributary to those
great concerns located in the United States, which
maintain their agents in foreign countries engaged upon
looking after their interests. From this considerable
amount it would be impossible to estimate a higher
return than between 2f and 3 per cent., for while many
of the investments — such as the Standard Oil interests
in Mexico and the many banking concerns in Cuba,
Panama, and other countries — yield a sensational
amount of profit, so much original capital has been lost
through rank speculation, and even more through dis
honest management, while so little judgment has been
displayed in the matter of sound selection, that a con
siderable portion of original capital has been irretrievably

268 PERU OF THE TWENTIETH CENTURY
lost. This has been the case in the Sonora district of
Mexico (especially in the Cananea Copper Mines) ; in
the gold and silver mines of Guanajuato, and in con
nection with the railways of Costa Rica, Guatemala, and
Ecuador, so that what has been made on the one hand
has, to an appreciable extent, been almost entirely lost
on the other.
Thus I do not anticipate any very pronounced " rush "
of American capital into Peru or the neighbouring
Republics merely because the Panama Canal will have
become un fait accompli. On the other hand, the United
States trade and commerce must derive an immediate and
lasting benefit from the speedier means of transport.
Already the United States control 30 per cent, in
Peruvian imports, 60' 8 per cent, of the importations
into Mexico, and 89 per cent, into Panama ; something
over 70 per cent, into Costa Rica, and about 60 per cent.
(increasing year by year) into Guatemala. With the
active assistance of the Washington Government, in
conjunction with the compulsory financial " assistance "
forced upon them by the Morgan Syndicate, Honduras
will also shortly be receiving about 80 per cent, of United
States goods, as well as much United States capital.
It is, however, the Republics of Peru, Ecuador,
Bolivia, and Chile which will become better markets
for the United States through the medium of the Panama
Canal ; and while I was travelling recently upon the
West Coast of South America I observed the arrange
ments which were being made to handle this anticipated
increase of trade with all efficiency and despatch.
North American agents were busy opening up new
branches or appointing local agents to handle the goods
intended to be consigned in increased quantities.
German houses, already established, were also rearranging
their branches and remodelling their order-books to
deal with the expected increase in North American

TRADE-MARKS 269
trade, all of which proved that a very substantial belief
exists in the approaching trade " boom " consequent
upon the opening in 1915 of the Panama Canal.
What attention were or are British manufacturers
and British agents paying to this all-important question ?
That question is very easily answered — none !
One of the greatest difficulties which British manu
facturers have had to face in South and Central America
has been the wholesale forgery of trade-marks, a practice
which has been going on for many years almost, if not
entirely, unchecked. Upon several occasions and from
different parts of Latin-America I have called the
attention of manufacturers, through the medium of the
daily and weekly press, to the existing state of affairs ;
but, beyond expressing a mild kind of indignation at
such proceedings, those individuals most concerned
seemed to have taken no steps whatever to prevent this
fraudulent practice.
Not only are manufacturers seriously affected, but the
purchasing public are also deceived and cheated by a
usage which has become as general as it has long been
discreditable. It was satisfactory, however, to find recently that at
length some effort promised to put an end to this
long - existing abuse. It was gratifying to South
American importers of British manufactures to learn of
the meeting which was held in London on March 16
two years ago to take steps to register a British Empire
trade-mark. If the decision arrived at does not die
of inanition (and I have not heard of any striking
success having attended the project), as is not improbable
nor without precedent for efforts of this kind, the steps
proposed should prove of great benefit to British trade,
especially in South America, where many of the best-
known British-made articles are continually being copied
and the best-esteemed trade-marks forged.

270 PERU OF THE TWENTIETH CENTURY
It speaks well for the Republic of Peru that as long
ago as two years, without any suggestion emanating
from outside sources, the Government of this Republic
took steps to protect both the selling and purchasing
public from the frequent imitation and falsification of
foreign brands and trade-marks. In a special message
the Supreme Government authorized all the Consulates
having offices in the capital to accept directly from the
owners of trade-marks applications for protection by
registration. The importance of this movement principally appealed
to those firms who are without any direct representative
in Peru. The passing of the new decree enables them
to register their trade-marks without the intermediation
of any third party, and with but very little expense
and even less trouble. It may be mentioned that the
Office of Industries, which is a sub-department of the
Minister of Public Works, takes entire charge of the
matter of registration, and sees that the necessary
certificate, properly made out, can be handed over to
the applicant. There is but one other stipulation to be
observed, and that is that applicants for registration
of trade-marks must make their requests written in
Spanish. Those manufacturers who are unacquainted
with the language can readily obtain from any transla
tion agency a sufficiently accurate translation of their
application, and this need only be forwarded through
their Consulate Office to the Minister of Public Works
at Lima. The fees for the registration are moderate
enough, being as follows : £ s. d.
For registration, including certificate ... ... 2 10 0
For official publication in newspapers ... ... 0 8 0
For necessary stamp paper  0 1 7
or a total of a little less than £3. The various Consu
lates are instructed to receive and to attend to all
claims and complaints arising from the imitation or

Port of Mollendo. Old Wharf.

The Port of Mollendo : Mole and Breakwater in connection with
the Southern Railway.

TRADE-MARKS 271
falsification of registered trade-marks. The Peruvian
Government undertakes to prosecute, and in the event
of a conviction being obtained, to punish all violators of
registered trade-marks and patents entirely at its own
cost, without calling upon the owners of such trade
marks or patents for any contribution (see Appendix).
It would seem that the Executive Council of the
British Empire League, which was responsible for the
meeting above referred to held in London, had merely
in mind the protection of manufacturers within the
British Empire, and appeared to have left out of its
consideration the many hundreds of manufacturers
with houses in the Central and South American States,
or shippers who carry on an important export business
with these countries. If, as it was stated, it be eminently
desirable that " a working basis should be found on
which the Colonial manufacturers should share the
benefits of a British mark," is it not equally desirable
that foreign purchasers of goods, presumably British
made, should not be deceived and defrauded, as has been
the case for many years past ? It would surely be
within the province of the officers of the Register of
British Manufacturers to take under the wing of their
protection importers of British goods in the Latin-
Americas. That such a movement would meet with
the support and co-operation of all business men in
those countries I have not the slightest doubt ; and I
would further suggest that the heads of foreign houses
in these States be invited to co-operate, and some of
them might even be requested to join the General
Advisory Council, or act as corresponding members.
In_ any case, Peru is entitled to consideration and
recognition for having been the first among the South
American Republics to move in the direction of pro
tection to foreign manufacturers doing business in this
State. Already a large number of foreign firms have

272 PERU OF THE TWENTIETH CENTURY
availed themselves of the Government's suggestion, and
each monthly issue of the official Boletin de la Direccion
de Fomento contains several pages of illustrated de
scriptions, and applications for registration, of trade
marks, together with some admirably printed photo
graphic reproductions of firms' labels. These are
inserted entirely without charge to the owners. Among
foreign firms who have availed themselves of this
protection are many American houses, a large number
of German firms, and several British houses. Among
the latest establishments which have taken out patent
registrations are the following : W. R. Grace and Co., of
Lima ; V. Rigaud, of Paris ; Cavallero Hermanos, of
Arequipa ; Campodonico and Ventura, of Lima ; L. I. J.
Dittesheim, of Switzerland ; El Progreso, of Lima ;
Debernardi Hermanos, of Lima ; Manuel G. Masias, of
Lima ; Romeo Marchand and Co., of Lima ; Compania
Shinola, of New York ; Santos Cabrerizo, of Lima ; Juan
Silva y Denegri, of Lima ; The Cook and Berheimer Co.,
of New York ; Eley Brothers, Ltd., of Middlesex ;
American Gramophone Company, of Bridgeport ; Reckitt
and Son, Ltd., of London ; A. Dammert and Co., of Lima ;
A. W. Wills and Son, of Birmingham ; Borden's Con
densed Milk Co., of New York.

CHAPTER XXI
Guano industry — Early history — Bemarkable return— Nitrate competi
tion — Unworked deposits — Salt — Annual production — Petroleum —
Principal districts — Early discoveries — Lobitos Oil-fields — Cocaine
manufacture — Various processes followed — Difficulties encountered.
The history of the guano mdustry is interesting from
at least two points of view — one so far as it relates to its
influence upon the former opulence of Peru (before the
war of 1884 with Chile), and the other from the present
position of the trade which is carried on in it. Where
does the guano come from, and what does the name
mean ? " Guano," which is the Spanish rendering of
the Quechua word " huanu," meaning excrement, is
collected from a group of small islands known as the
Chinchas, and which are located close to the coast of
Peru. They appear to have been first exploited about
1840 by a firm of Peruvian merchants, who, having tested
the substance as a fertilizer, sent a large consignment
of it to England. Two years later the new agricultural
assistant " caught on," and an immense trade soon
sprang up. The interest of the Government was then
aroused, and a special Commission was despatched to
examine the islands and find out how much of the
precious deposit existed.
I am informed by one who was — and still is — con
siderably interested in the Peruvian guano trade, that
some of the islands which had apparently been inhabited
by penguins, divers, cormorants, cranes, gannets, flamin
goes, and numerous other seabirds, were at that time
over 200 feet deep in this material. The estimate
273 18

274 PERU OF THE TWENTIETH CENTURY
formed of their possible yield was 12,376,100 effective
tons. For sixty years they had continued to produce
ever - increasing supplies, and taking the Chincha
group in conjunction with other small detached groups,
several millions of tons of the stuff have been shipped to
Europe alone.
By 1877 it was estimated that fully 10,000,000 out of
the original 12,376,100 tons had been taken away, and
to-day the whole amount which Peru can collect and
export annually does not exceed 60,000 tons, while
perhaps half as much — 30,000 tons — are used locally
as manure. When first sent to Europe the guano
fertilizer was disposed of at a fixed price ; but later
on buyers demanded a certified analysis, and prices
depended upon the nature of this. The prevailing price
which it fetches may be put at 19s. each unit per cent.
per ton for the nitrogen, and 2s. 4d. on the same basis
for the phosphoric acid. Some cargoes from Peru yield
up to 11 per cent, nitrogen.
The deposits are only worked for one-half of the year,
so as to leave the birds who provide it undisturbed to
breed. The Government grants licences to work the
deposits from April to October inclusive, but the
exclusive right to export up to 2,000,000 tons has been
granted to the Peruvian Corporation, Limited, who
have enjoyed the privilege since the year 1890. During
the several years that the Corporation have been
working the islands they have exported about 1,100,000
tons of guano, each year showing a decline upon its
predecessor. Last year (1910) the Corporation sold
abroad 61,000 tons, which was less than the previous
year by 23,000 tons.
About two years ago a native Company was formed,
called La Compania Administradora del Guano, and
managed to secure permits from the Government to
work the deposits for the purpose of supplying local

GUANO TRADE 275
requirements ; but it soon came to loggerheads with the
Peruvian Corporation, and the Government was then
forced to intervene, deciding, with Solomonic sagacity,
that the Corporation should be privileged to work all
deposits north of Callao, and the Company all deposits
south of that port, with the exception of the Ballestas.
The Government, in order to encourage the consump
tion of guano in the country's agricultural industry, and
to facilitate the delivery of the fertilizer to consumers
direct, and without the intervention of middlemen,
authorized the small local Company referred to.
The returns from the guano deposits commence to
figure in the Government's revenue accounts from about
the year 1840. In the first seven years only about
289,000 tons were exported, the direct sale of which
produced some $2,700,000. The results were considered
unsatisfactory, so an arrangement was arrived at with
Messrs. Antony Gibbs and Co., of London, in January of
1847, to undertake the sale of the consignments for
account of the Government. Several other European
capitalists came into the deal, and altogether the sales
were soon run up to 250,000 tons. Year by year the
quantity increased, and indirectly brought Peru into
financial relations with some of the most prominent
capitalist groups, who afterwards took a practical
interest in the country's monetary condition.
Between the years 1851 and 1854 the amount of
guano exported amounted to 1,624,252 tons, which
yielded the Government the sum of $16,838,600. The
annual sales now totalled 300,000 tons, thus leaving
the revenue with several millions of dollars " to play
with." By 1867 over 7,000,000 tons of guano had been
taken away, and the Treasury was over $220,000,000
in pocket. All these millions, however, disappeared in
reckless extravagance, and not a little through dishonest
management ; and even when the annual sales went up,

276 PERU OF THE TWENTIETH CENTURY
as they did in 1868, to 400,000 tons, the country was
still plunged hopelessly in debt. Later on, as mentioned
above, the Government, acting under legislative
sanction, sold a definitive block of 3,000,000 tons of
guano, granting to the purchasers (the Peruvian Cor
poration) the exclusive privilege of selling the article.
In course of time came the discovery of the equally
beneficial agricultural manure of nitrate, which proved
a formidable rival of the guano, the sales of which com
menced to go steadily down. But more misfortune
remained, and it seemed as if Peru's lucky star had
indeed set. The war with Chile resulted in the loss of
both her nitrate and some of her most valuable guano
deposits. Since then other guano islands have been
exploited, and the country still finds the returns from
the exports of the manure acceptable ; but the cream
has gone, and only skimmed milk remains. Fortunately
for Peru, which perhaps does not know even yet what
extraordinary riches the territory contains, the mining
wealth of the country is destined to prove an excellent
substitute for the vanishing guano revenues, and no
despoiler can come and rob her of that. The total value
of the guano exported in 1909, as recorded at the
Customs Houses, was £155,224.
The mining of salt is a monopoly, the business being
carried on by the National Salt Company. During the
last year (1910) this undertaking sold no less than
8,923,336 kilogrammes of salt, 1 kilogramme being equal,
it may be remembered, to 2*204622 pounds. At present
the Company works about 100 different deposits
scattered about the country, the total value of the
output averaging between £90,000 and £95,000. The
following statistics will serve to show how the industry
has prospered during the past ten years : In 1903 the
value sold amounted to £38,044 ; in 1904, £53,462 ; in
1905, £61,294; in 1906, £64,726; in 1907, £81,223;

OIL-FIELDS 277
in 1908, £86,694 ; in 1909, £87,294 ; and in 1910, £93,238.
For the first six months of the current year (1911) a
further considerable increase has taken place.
The exploitation of the whole of the salt-mines of Peru
meant, on the other hand, to the Government a revenue
of nearly £220,000 for the year 1910.
Among all the excitement which prevailed in London
about two years ago in connection with the " oil boom,"
few of the " boomers " seemed to be aware that in Peru
is found not only the finest quality, but probably what
will turn out to be one of the largest quantities of oil in
the world. The mineral is found in the three northern
districts of Tumbes, Piura, and Lambayeque. In nearly
all cases the discoveries have been made on or near the
sea-coast. The knowledge that the oil exists is certainly
not of recent date, for as far back as 1692 we read of the
Spanish Crown ceding the entire rights of working
certain petroleum deposits to one Grandino, a Captain
in His Catholic Majesty's Army. Apparently it was
worked with some excellent profit, for it seems to have
been handed down as an extremely valuable asset from
generation to generation until it reached the hands of
Senor Diego de Lama, who found it so profitable that
he eventually divided the property into thirteen different
parts among his children. One of these portions, cover
ing the estates of Parinas and La Brea, became the
property of Mr. Herbert Tweddle in 1888, from whom it
was purchased by the London and Pacific Petroleum
Company. The Nepitas, or Talara, Oil-fields were discovered
several years ago. They are situated about forty miles
from the coast, in the direction of Paita — considered to
be the best port on the West Coast — and they are now
the centre of some active operations. Talara has a
well-sheltered little harbour of its own, and is connected
therewith by a sixteen-mile narrow-gauge railway. Some

278 PERU OF THE TWENTIETH CENTURY
twenty-five miles inland is another very promising for
mation, consisting of a black and extremely adhesive
material of an asphaltum nature. Very little has been
done with this as yet. The Zorritos field lies about
twenty-four miles to the south of Tumbes, and was dis
covered by De Lama in 1862. For many years it proved
a costly failure, but the present owners seem to have
been more fortunate, or are more intelligent, in working
the deep sand, no fewer than fifty producing wells being
found there.
The production of crude oil amounts to 11,000 tons
annually ; 500,000 gallons of kerosene and 100,000 gallons
of gasoline were refined in 1910. This year, I understand,
the owners expect to add at least 10 per cent, to their
output. The territory owned by the Company is an
extensive one, amounting to the original 750 acres at
Zorritos, and an additional 2,700 acres at Cabo Blanco,
just north of the property belonging to the Lobitos
Company. The latter field was discovered in 1901 by the surveyors
sent out by the Peruvian Corporation, but it was only
some four years later that the property was found to be
payable. The Corporation sold out its interests to the
present owners, the Lobitos Oil-fields, Limited, who have
152 wells, including forty-two which were drilled at the
time that the transfer of the property took place. Of
these, ninety-two were producing oil at the end of last
year (1910). The total depth drilled over the same
period was 44,055 feet, giving an average of approxi
mately 17 J feet drilled per string per working day. The
year certainly was not a fortunate one for the Company,
the net results being 3,882 tons less than for the pre
ceding year. Nevertheless, the net increase seems to
have been higher at 24s. lid. per ton, as against 20s. 8d.
The net profits for the year amounted to £4,778.
Further and fuller reference to the Lobitos Oil-fields,

COCAINE MANUFACTURE 279
Limited, will be found under the heading of " Foreign
Companies " (see Chapter XXIV.).
Cocaine is another very remunerative manufacturing
industry carried on in the Republic, and the plant from
which it is decocted is found in the environs of Cuchero
and upon the stony summit of Cerro de San Cristobal.
It is also cultivated extensively in the wild but very
moist climate of the Peruvian Andes, at from 2,000 to
5,000 feet above the sea.
The extraction of cocaine from the leaves of the coca-
plant as carried out up-country is not by any means
an up-to-date process. It is, however, the only method
available to the farmers at the present time, as, owing
to the distance from any seaport or railway-station, they
find it much the cheaper way to extract the cocaine at
the point at which it is grown than to export the leaves
in bulk. The only means of communication between
the various ports and railways is by the pack-mule, and
however crude the arrangement may seem, it is no doubt
the best way out of the difficulty. When the means of
communication are improved, the method of the extrac
tion will improve also. At the present time to manu
facture 1 kilogramme of cocaine, 200 kilogrammes of
coca-leaves are required. The extraction is carried out
in three operations : (1) Maceration, (2) intermediate
precipitation, and (3) final precipitation. The three
processes are carried out in the three parts of it, num
bered I., II., and III. respectively.
Under compartment No. I. there are four tanks
marked. In these the coca-leaves are placed. The pans
are acidulators in which water and sulphuric acid are
mixed in the proportion of 1,000 grammes to 5 grammes.
This mixture is run off into one tank, sufficient of the
solution being admitted at a time to cover the top of the
leaves. Here it is allowed to remain for twenty-four
hours, at the end of which time the liquid is run off into

280 PERU OF THE TWENTIETH CENTURY
another tank, and another supply of acidulated mixture
is admitted into the first tank. The mixture is again
allowed to remain for another twenty-four hours, when
this is again drawn off into a third tank, the contents of
the first being drawn off anew into the second one, and
again a fresh supply of acidulated mixture being ad
mitted into the first tank. This process is repeated until
the first tincture at the end of four days is drawn off,
the first tank then being charged with a fresh quantity
of leaves ; the others each in turn. After the end of four
days the initial charge is ready, and every twenty-four
hours thereafter whilst the plant is in operation the same
quantity will be available. After leaving the last tank,
the tincture is conveyed to a strainer, which takes away
all particles of dust, etc. From this strainer the
tincture is run off into cylinders. This ends the macera
tion process. The tincture is now ready for the inter
mediate precipitation.
This is carried out in another compartment, No. II. The
boilers contain a solution of carbonate of soda (salino-
meter, 60°), and are connected by a line of pipes con
trolled by valves to the cylinders. The tincture now
being in the cylinders, the valves are opened and the
precipitation commences. Tests are continually made
of this process. A small quantity of the mixture is
taken out and strained through a funnel, in which is
placed some filter-paper. The tincture filters through
and passes down into a receiver, leaving the cocaine on
the top of the paper. The liquid is then tested by the
addition of ammonia, which indicates if the slightest
trace of cocaine remains. If no cocaine is precipitated
it shows that the quantity of the carbonate is correct ;
but if there is, the proportion of carbonate is altered till
the desired result is obtained.
The precipitating operation completed, the next step
in the process is the addition of a certain quantity of

COCAINE MANUFACTURE 281
petroleum. After this is added, the whole is slowly
stirred with a funnel-shaped beater having a per
forated bottom. Great care has to be taken that the
beater does not rise above the oil. The stirring is
continued for a period of from three to four hours, and
at a very slow rate, so that no bubbles are produced, the
production of which would cause a great deal of waste.
The oil which now contains the cocaine is run off into
the washer, and is there washed with clean water— abso
lutely free from acids. This having been done satis
factorily the water is poured off, and a fixed percentage
of the oil is taken for test. To this is added varying
quantities of acidulated water in the proportion of
3 grammes of acid to 1,000 grammes of water. The
proportion which is found to give the best precipitation
is applied in the same proportion to the bulk of the oil
in the washer. The oil and acidulated water are then
stirred vigorously for from thirty to forty minutes, and
the mixture is then allowed to rest fifteen minutes.
The acidulated water, or liquid cocaine, is then drawn
off and poured into the vessels.
In compartment No. III. the final precipitation is
effected. A test is again taken of the liquid in a similar
manner to that previously described/only in this case,
instead of the acid, use is made of carbonate of soda in
varying proportions, so as to discover which gives the
best results. After this has been ascertained, the whole
of the liquid cocaine is treated with carbonate taken
from the vessels. It is then left to settle for twelve
hours, at the end of which time it is passed through a
strainer, with large quantities of distilled water to wash
away the residue of the carbonate, and it is then placed
in the press. Pressure being applied, all water is driven
off, the result being a white paste of cocaine, which is
within 87 to 93 per cent, of purity. This operation is
carried out daily, and an average of 1 kilogramme

282 PERU OF THE TWENTIETH CENTURY
( = 2-204622 pounds) is obtained every twenty-four
hours. At times the cocaine, instead of being white, is of a
brownish colour. This shows an inferior quality of
leaf, and in this case a further operation is needed to
improve the colour and quality. The paste is dissolved
again in strong acidulated water in the proportion of
5 grammes of sulphuric acid to 100 grammes of water.
More water is added as the paste is dissolved, until a
proportion of 3 grammes of acid to 1,000 grammes of
water is obtained. It is again precipitated with car
bonate, put back into the washer with oil, and stirred
for three hours, at the end of which time the water is
drawn off. A solution of acidulated water is again
added in proportion of 10 grammes of acid to 1,000 of
water. This is kept stirred for two minutes, and finally
removes the gums, which cause the brown colour ; but
at the same time a proportion of the cocaine is lost.
The cocaine is then treated as before. The colour is
improved, but the weight is decreased, which makes the
process wasteful.
The number of workmen in a plant of this size varies
from three to five. All the channels for tincture and
carbonates have open tops, owing to the trouble that
would be caused by obstruction with closed pipes, the
carbonates and tinctures solidifying and causing stop
pages. The water used must in all cases be filtered.
The approximate cost of producing 1 kilogramme of
cocaine by this process is £11 — say £5 per pound. The
cost, however, varies with the price paid for the coca-
leaves, which is always changing.
Cocaine was exported from Peru in 1909 to the value
of £60,287.

1 : .* *,»

The Port of Mfjia . near Moilendo. On the Plaza.

Embarking Peruvian Troops on the Central Railw/

CHAPTER XXII
Mining — Spanish greed — Mineral districts — Sierra region — Numbers of
claims— Working companies and output — Labour conditions — Mining
code — Gold and silver mines— Copper deposits — Cerro de Pasco —
British indifference — "Ophir of the West" — Cerro de Pasco town —
Various minerals found — Coal — Mining for foreigners — Unnecessary
scare from United States of America.
There are many authorities — Professor Baron Hum
boldt and Sir Arthur Helps among them — who aver that
the Spaniards were not led merely by a thirst for gold
in connection with their conquests of South America,
and who attribute their invasions at least equally to
the pious desire of spreading the Holy Catholic faith !
I am afraid, however, that those who read the history
of the Conquestadores carefully will be unable to share
in the altruistic views of the two distinguished writers
whom I have mentioned. Whatever may have been the
original intention of the Spanish invasion of South
America, there cannot be any question that, once there,
the conquerors devoted the whole of their efforts and the
whole of their powerful resources to securing as much
treasure as they could steal from the poor natives or
themselves win from the earth ; and since they were, as
we know, religious fanatics of the worst kind, it seems
only fair to assume that the spreading of their own
religion among the natives was practically throwing
" a sop to Cerberus," or, in other words, offering a tribute
or premium to the Almighty in order to obtain absolu
tion for their hideous and wholly unnecessary crimes
against humanity.
° 283

284 PERU OF THE TWENTIETH CENTURY
Although the Spaniards were the first to pursue mining
in Peru with anything like a system, there is abundant
evidence that the Incas knew well how to obtain the pure
gold from the auriferous rocks with which their country
abounded and still abounds ; but whence they learned and
how they practised the art of amalgamation and refining
the gold are not very clear. The immense quantities of
both gold and silver ornaments which they manufactured,
and numbers of which still exist, show, however, that if
much gold must have been lost in the process of treat
ment, a vast amount of it was still preserved. Unfortu
nately, space will not permit of my quoting in these
pages, as I feel greatly tempted to do, the records of
the discovery and working of the prmcipal mining dis
tricts under the Incas and the Viceroyalty, a subject
which forms a highly instructive and intensely interest
ing chapter of the history of those periods. My present
and more prosaic task is to briefly consider the physical
features of the mining industry of this richly endowed
country. As I have previously mentioned, there are three dis
tinct regions in Peru — the coastal, the mountain, and
the forest. The first is an arid and wide-spreading zone
where little or no rain falls. There are no mines here, if
one excepts the petroleum deposits and the sulphur-
mines located upon the northern coastal plains. In the
forest region there are also but few indications of any
great mineral wealth, although here are found a few
widely separated deposits of gold-bearing quartz and
placer gravel on the border of the forest region in the
southern part of the country.
The great mineral wealth of Peru lies in the sierra or
mountain region, and, as is not uncommon with Nature
when she bestows great riches upon humanity, she has
placed them in almost inaccessible places, and has ren
dered the task of gathering them as difficult and as

MINERAL WEALTH 285
dangerous as possible. The most valuable mines in
Peru are those situated at an altitude of from 8,000 to
12,000 feet, and to reach which, until the advent of the
railway, steep and tedious mountain trails had to be
crossed., and every pound of equipment and machinery
carried laboriously and slowly, packed in small sections,
upon the backs of draught mules, to the mines, where
they were put together.
Some few years ago, when the official list of mining
claims was issued, there were nearly 10,000 claims listed ;
and out of these nearly 1,200 were being worked by
160 different native and foreign-owned companies.
The mineral production of the Republic includes coal,
crude petroleum, gold, silver, copper, lead, bismuth,
nickel, mercury, sulphur, borax, antimony, molybdenum,
and salt, the working of the latter being a monopoly of
the Peruvian Government. According to such mineral
statistics as are available, there were at this time in
operation twenty-four lixiviation plants, seventeen
amalgamation plants, thirteen smelters, three lead
smelters, three concentration plants not connected with
smelters, two smelting and bessemerizing of copper
plants, two petroleum refineries, and one sulphur re
finery. Of the smelting plants the more important are
the smelters of the Cerro de Pasco Mining Company,
which have a capacity of 500 tons per day ; the Backus
and Johnson smelter at Casapalca, with a capacity of
150 tons per day ; and the Huaracaca smelter, situated
on the road to Cerro de Pasco, which has, with concentra
tion and amalgamation, a capacity of 100 tons per day.
These different smelters are all easily accessible on
account of the Central Railway almost passing their
doors ; but there are a number of smaller smelters which
are so far away from existing railways as to have proved
anything but successful ; with the advent of branch
lines, however, such as are contemplated, the majority,

286 PERU OF THE TWENTIETH CENTURY
if not the whole, of these furnaces would come actively
into operation.
Usually speaking, there is sufficient labour for the
mines available ; this is performed by Indians and the
mixed native races. They are found quite obedient
and docile, but usually very ignorant, and they are
prone to indulge too much in keeping their numerous
saints' days, to which they cling as tenaciously as the
Indians of Mexico, who celebrate as many as 200 saints'
days in the year. On the other hand, many of them
own small patches of land, and these they industriously
cultivate ; at certain times of the year they will dis
appear, generally without notice, in order to till or reap
according to the season; but they almost invariably
return after these operations are completed.
The daily pay of a common labourer ranges from
20 centavos to 1 sol (5d. to 2s.), while in the smelting
and concentrating sheds it ranges from 60 centavos to
1 sol 20 centavos (Is. 3d. to 2s. 5d.), and in the ore-
packing sheds from 40 to 50 centavos (9d. to Is.) per
ton per kilometre.*
The Peruvian Government has naturally done — and
is doing — much to foster the mining industry, in view
of the substantial revenue which it obtains — and will in
a few years' time enjoy — from it. In 1876 the School
of Mines was established, and has proved useful to the
industry, some exceptionally brilliant young students
having distinguished themselves, not only in the Re
public, but in other parts of the world. In 1901 a new
Mining Code was promulgated, and this gave a fresh
impetus to the development of mining. The new Code
affords additional facilities for acquiring mining pro
perties, ample liberty in working them, and absolute
* A good deal of information regarding the physical features and mining
industry of Peru may be found in a pamphlet by Mr. George I. Adams, of
Washington, -D.C., U.S.A., being extracts from a paper read before the
American Institute of Mining Engineers, February, 1908.

MINING 287
security in their possession. The importation of
machinery, as well as the fixtures and tools used for
mining, is exempt from Customs duties, as are also coal,
timber, dynamite, quicksilver, and other materials
necessary (see Appendix).
The Peruvian Mining Code, which may be purchased
in a complete form at a very reasonable price, declares
that any individual may acquire mining properties with
the number of claims (pertenencias) desired from one to
sixty. A pertenencia is the unit in mining properties,
as it is in Mexico, Colombia, Venezuela, and other
Spanish - speaking countries, and measures 200 x 200
metres, and thus covers an area of 40,000 square
metres in the case of coal, petroleum and gold placers,
platinum, tin, etc. ; but in all other mining properties
the pertenencia measures only 200 x 100 metres =
20,000 square metres. For every pertenencia the
owner must pay to the Government a tax of $15.00
(£1 10s.) each half-year, or £3 per annum.
The administration of all questions and the settlement
of all disputes in relation to the mining industry remain
in the hands of the Government, which is assisted in its
decisions by a Superior Mining Council and by " Delega-
ciones " and " Diputaciones," appointed by the mining
districts. The Department of Encouragement and
Public Works is the executive, having control of all
mining matters ; and it acts up to its name admirably,
literally " encouraging " in every possible and legiti
mate manner both mining and other enterprises,
whether undertaken by natives or foreigners, which
can in any way redound to the advantage of the country
generally. Gold is found in veins of ferruginous quartz, generally
accompanied by other metals, such as silver and copper ;
but it is also found in the form of nuggets, or in the
alluvial deposits and in the sand which is brought down

288 PERU OF THE TWENTIETH CENTURY
by the mountain streams during the freshets. Silver
is found in practically every part of the vast Andean
region, and there is scarcely a single defile, however small,
in the whole of this enormous area in which veins of
silver more or less rich — but frequently unworkable on
account of their remoteness from a railway and the diffi
culties of mule transportation — cannot be found. The
white metal is generally encountered mixed with lead
or copper, and frequently with both. In Peru alone I
have seen the curious ore called cascajo, which, although
having no metallic brightness, owing to the oxide of
iron which it contains, is nevertheless frequently found
to be very rich in silver, as well as in copper ores. It is
this character of rock which is met with principally in
the mining districts of Cerro de Pasco.
The best-known mining ranges for production of silver
are : Hualgayoc ; Salpo ; Calle j on de Huaylas, in the
north ; Cajatambo, Huarochiri, Yauli, Cerro de Pasco,
Huallanca, and Castro- Virreina, in the centre ; Lucanas,
Puno, Lampa, Cialloma, in the south.
In no country will copper be found in greater quan
tities, nor in more remarkable combinations and forms,
than in Peru. The veins actually of copper contain this
metal with a small proportion of silver and a yet smaller
ratio of gold. Although it may be met with in Chimbote,
lea, and Lomas, it is at Cerro de Pasco that the red
metal is found in the greatest abundance and of the
greatest richness, the deposit being an accumulation of
copper, silver, gold, and lead ores, with various other
minerals in a lesser degree.
Early in 1902 a certain J. Haggim, with some others,
became interested in this region, and they acquired the
mines referred to at an extremely reasonable price,
which, however, did not prevent them from bringing
out a Company to work them with an authorized capital
of $60,000,000 (£12,000,000). Of this large but still

MINING 289
necessary sum nearly $30,000,000, (£6,000,000) have
been already expended in the purchase of the mines,
construction of the railroad, smelters, office buildings,
and other development expenses. All these construc
tions show evidence of first-class work, a remark which
may also be applied to the shaft-house, warehouses, and
yards ; while the Esperanza Club House, which has been
erected for the use of the many American employes
engaged by the Company, is one of the most comfortable
edifices of its kind, and, indeed, it need be in view of
the absolute lack of recreation or outside amusements
and resources that the town of Cerro de Pasco offers.
The mining plant is one of the most complete and
efficient that can be seen in any part of the world, and
I regret that lack of space prevents me from describing
it in further detail.
How the British capitalist, through nervousness or
ignorance, and often through both, allows golden oppor
tunity to slip from his grasp, is shown in the case of the
Cerro de Pasco mines. These mines were offered by
their discoverer — a man named Bennett, now dead — to
the firm of N. M. Rothschild and Son, of New Court,
St. Swithin's Lane, and it seemed at one time as if they
were likely to take them. But the spirit of cautiousness,
so commendable upon some occasions and so deplorable
upon others, overcame the desire to do a good stroke of
business ; and, the Rothschilds withdrawing at the last
moment, the Americans, ever ready to " smell " a good
bargain, came in, and to-day the famous Cerro de Pasco
is a North-American enterprise, managed by Americans,
equipped with American machinery, and finding occupa
tion for several hundreds of American engineers and
employes. And all of this, but for poor judgment and
worse timidity, might have been British ! In 1907 Cerro
de Pasco mines shipped 10,000 tons ; in 1908 they shipped
15,000 tons ; and this year (1911-12) it is expected they
19

290 PERU OF THE TWENTIETH CENTURY
will ship something like 35,000 tons, and eventually
50,000 tons per annum of copper ores.
But for the magnificent output from Cerro de Pasco
mines, it is very doubtful whether the Central Railway
of Peru — that stupendous enterprise known as the " rail
way in the clouds," and which cost the British investor
the huge and unproductive sum of £5,000,000 to build
and equip — could be run at all ; for its mainstay is, and
always has been, the ore from the Cerro de Pasco mines ;
so that if the British capitalist has lost the chance of
owning the mines, he has at least the consoling privilege
of carrying its output, or a part of it, until the Company
— as is possible — builds a railway of its own.
Yet, if we have lost the chance of this splendid pro
perty, there are others existing which are, in all prob
ability, as desirable. The whole of this region of the
Andes is fabulously wealthy in all kinds of minerals,
the veins actually of copper containing this metal with
a small proportion of silver and traces of gold. The
arsenical and antimonial sulphurets are found in great
abundance in this district, as well as in others such as
Chimbote, lea, and Lomas, and they are at the present
time the object of considerable exploitation in these
mining centres. Copper, however, is but one out of
several minerals which are to be found — and found in
immense quantities — in this well-named " Ophir of the
West." I have written nothing of the rich deposits of ala
baster, porphyry, marble, and a jade which is better
than any to be found in the old temples of Rome and
Greece. I should say, from what I have seen and what
I have heard about the minerals of Peru, that there is
hardly one of the known kinds but can be found some
where or other in this country. Upon looking at some
records made up within the past few years, I observe
that the metric tons mined in 1905 amounted to 165,256,

MINING 291
while in 1903 the amount had been only 105,072 tons.
The commercial value had also risen to $1,828,531, as
against $1,382,080 for the same periods.
The present condition of the mineral and metal in
dustries of the Republic is indicated in the subjoined
figures :— Exports : (1907) kilos, 59,939,937, value
£P1,972,929 ; (1908) kilos, 47,482,648, value £P1,601,227 ;
(1909) kilos, 40,809,037, value £P1,638,180.
Many of the mining towns in Peru, as in Mexico,
present a gloomy, rather dilapidated, and otherwise
unattractive appearance to the foreigner, who is
accustomed to the brightness of many other, and
especially North American, mining centres; but Cerro
de Pasco certainly takes rank as one of the most de
pressing. The town itself was established some three
centuries ago, and is one of the oldest mining towns in
the New World, its population being over 10,000, and
its elevation some 12,000 feet above the level of the sea.
It has, since the seventeenth century, been a centre of
mining activity ; in fact, as the legend says, " since a
shepherd found some curious metal in the bed of the
fire he had lit to protect himself from the cold and the
damp." The town, although quaint in appearance, is
decidedly unpleasant as a place of residence, owing to
its uncleanliness and general decayed condition. The
inhabitants seem to be among the less careful of
personal appearance of any of the natives to be found
in Peru, and the various stenches which emanate from
the streets would put to the blush the " seventy- two
different stinks " which are supposed to distinguish
Cologne. In fact, Coleridge's description of that city might
well have been written about Cerro de Pasco :
" In Koln, a town of monks and bones,
And pavement fang'd with murderous stones,
And rags and hags and hideous wenches,
I counted two-and-seventy stenches."

292 PERU OF THE TWENTIETH CENTURY
Nevertheless, that one may live there with safety in
regard to one's health is proved by the fact that the
British Consul, Mr. Stone, has resided in Cerro de Pasco
for thirty years, and seems to all outward appearances
to be as hale and hearty as ever.
Lead ores are abundant, being found frequently in
the veins of argentiferous galena. The most notable
are the mines in Yauli, Huarochiri, Chilet, Pallasca,
Huari, Canas, and Recuay.
Quicksilver deposits are found in the Department of
Huancavelica, notably in the famous and historical mine
of Santa Barbara, which was worked to great profit in
the Colonial period.
Tin is not very often encountered, and where it is
found the deposits are of no industrial importance.
Iron is more plentiful, but it has not hitherto been the
object of systematic industrial exploitation. It is found
in fairly large quantities in the districts of Calca and
Lares, where beds exist with a grade of 80 per cent.
Nickel is abundant in the district of San Miguel, in
the Province of La Mar. Sulphur is not only found in
all the extinct volcanoes, but also in the form of extensive
beds near to the sea.
Bismuth occurs in various parts of the country,
particularly in the Department of Junin, where a bed of
bismuth-ochre has been discovered with a grade of
40 per cent, of bismuth. Mica has recently been dis
covered on the coast, in the Department of Piura.
Borax occurs in important beds in the Departments of
Arequipa, Moquegua, Tacna, and Puno, and the Central
Railway's line passes through a large bed of this mineral.
Molybdenum has been exploited for the past seven years
in the Province of Jauja, where the deposits contain, in
the form of sulphuret of molybdenum, from 20 to 30 per
cent, of the metal.
One day — and that day is not far distant -the vast

B
H

o

MINING 293
deposits of coal in Peru will be worked, and worked
profitably. Practically all the representatives of the
anthraconites are found — anthracite, pitcoal, lignite,
and peat ; while in Cuzco I have been shown some of the
coal-beds of Tonquini, which contained whole trunks of
trees perfectly carbonized. A private museum in Cuzco
which I also visited contained an extraordinary collec
tion, comprising not only samples of coal, but specimens
of all the minerals found in Peru. The museum belonged
to an old Peruvian gentleman of eighty years of age, who
was willing to spend hours, and even days, with anyone
who cared to listen to him describing his treasures ; and
who would slowly toddle around his small room (measur
ing 30 by 40 feet), which contained, however, exhibits —
so he assured me — worth nearly £100,000, with perfect
contentment. Of the deposits of petroleum and salt I speak more
fully in another portion of this volume (see p. 276, 277).
I have observed from time to time in various publica
tions, and especially in Consular Reports, that certain
writers consider Peru to be an unfavourable country for
emigration ; and some among them — the American
Consul-General at Callao, for example — have expressly
warned foreigners from coming to the Republic. In
justification for the tendering of this advice a great many
so-called facts are set forth, which, although not untrue
in themselves, might well apply to almost every country
on the face of the earth, and more particularly to Great
Britain and the United States. The last-named
authority to whom I have above referred, for instance,
says inter alia : " There is no work to be had for
Americans at Mollendo, nor in the interior, nor at the
mines, nor anywhere in the mining sections. If they
come without money they will have great difficulty in
gettmg away to some more profitable country, and
would be apt to suffer severely in the meantime."

294 PERU OF THE TWENTIETH CENTURY
From my own observations I am quite unable to
endorse these statements, my experience being that
when I required some very ordinary clerical assistance
in the form of a shorthand-writer and typist, I found it
practically impossible to obtain one, and discovered
subsequently that the demand for such assistance was
invariably larger than the supply. The same remark
applies to mining, different managers informing me that
they were generally very short of foreign labour, and that
any man who was worth his salt could readily find
employment. This was abundantly testified to by the
large number of young Americans who were employed
at the Cerro de Pasco and other mines, although their
Consul-General avers that " they can find no employ
ment anywhere."
I thoroughly endorse the recommendation that it is
inadvisable for anyone in mercantile, mining, in edu
cational, clerical, or other lines of commercial life to
proceed to Peru without having previously secured a
guaranteed position in some respectable concern ; but
is not this a suggestion which might, and does, apply to
practically every other country ? By issuing such a
scare-report as this the American Consul-General at
Callao is scarcely rendering good service either to his
own country or to the Republic to which he is accredited,
for it may serve to keep away a great many young and
enterprising men who would otherwise do extremely
well in a country just on the verge of its commercial and
industrial development — one which offers exceptional
guarantees for personal safety, which has an undeniably
equitable climate, and where foreigners are made
especially welcome. Personally, I would far rather take
my chance of finding casual employment and a courteous
reception in applying for it here than in either New
York, Chicago, or London.
It would also be seen from perusing the following

EMPLOYMENT AT MINES 295
extracts how strangely the observations made by Mr.
William Henry Robertson, the zealous and well-meaning
United States Consul-General in Callao, compare with
some remarks expressed by Senor Don Felipe Pardo,
Envoy-Extraordinary and Minister-Plenipotentiary for
Peru to the United States, and by Professor David
Kinley, Director of the School of Commerce of the
University of Illinois, one of the delegates of the United
States to the last Pan-American Conference held at
Buenos Aires. Both are at least as responsible authori
ties as Mr. W. H. Robertson. Senor Felipe Pardo
observes : " Among the countries of South America,
Peru perhaps offers the best return for your capital.
Her ports are less than 1,000 miles from the Canal, her
waters are truly Pacific, her climate is temperate. . . .
American capital could be advantageously invested."
He also spoke eulogistically of the mines, some of which,
world famous to-day, have been developed with American
capital. How could this have occurred had the United
States Consul's recommendations to stay away prevailed
generally, and his warnings taken seriously by those to
whom they were addressed ?
Now let us see what Professor David Kinley has to
say : " I deprecate our lack of knowledge and adapta
bility to South American ways of doing business. We
far too often send down men who cannot speak the
language. This is a waste of time, money, and good
temper. You cannot do business with a man unless you
talk to him. You may get all the interpreters you like,
but he will not catch your meaning, and you cannot catch
his."

CHAPTER XXIII
Callao — Early history — Physical aspects — Climate — Suburbs — Sanitary
improvements — Chosica — La Punta — The volcano of Misti — City of
Arequipa — Early history — Earthquakes — Hospitality of the inhabi
tants — Buildings — Banks — Tramways — Electrical equipments — Life
in Arequipa — Cuzco — Ruins — Modern city life.
There is probably no more genuinely interesting city
in Peru, nor one which is more famous for the romance
attaching to it, than Callao, which, historically speaking,
is as ancient as Lima itself. Having withstood many
sieges by pirates, in which encounters it came off usually
by no means best, Callao was compelled to capitulate
to the earthquake of 1746, which was accompanied by
a tidal wave, the combination of disasters resulting in
the entire place being destroyed. It is recorded that
both the town and port disappeared from view, and
there is nothing left to tell the tale but a few traditions
more or less to be relied upon. In 1867 Callao ex
perienced a second seismic shock, which, although less
disastrous in its results, nevertheless proved bad enough.
Callao was founded in the year 1537, two years after
the foundation of the city of Lima, and in 1671 we read
of its population being " considerable," and, indeed, so
important was its trade that the title of " city " was
conferred upon it. For many years it remained the
centre of Spanish colonial commerce, and so much
wealth was piled up in its warehouses that the cupidity
of the famous British pirate Drake was excited, and in
1578 he descended upon the coast, seized several
merchant vessels in Callao Harbour, and appropriated
296

CALLAO 297
the booty. Then it was that the Viceroy, Count del
Villar, considered that it was high time to fortify the
place ; and forthwith he proceeded to do so. How well
he succeeded is proved by the fact that when in 1624
the place was again attacked, this time by the Dutch
pirate, Heremati Clerck, with eleven ships, 240 guns,
and 1,600 men, the enemy was beaten off with compara
tive ease. History records that Clerck took his defeat
so much to heart that he died of grief, but it is not
chronicled that the good people of Callao expressed any
very deep regret nor that they went into mourning.
From this time onward Callao seemed to thrive and
fructify ; its population increased, and many handsome
buildings, including one convent, seven temples, and a
whole range of Government and commercial offices, went
up ; but unfortunately they also went down, for the
earthquake of 1746, as already observed, completely
destroyed the city, some 6,000 of its inhabitants perishing
in the catastrophe at the same time. The survivors,
with that extraordinary pluck which characterizes the
Latin- Americans in the face of terrible seismic disasters,
at once proceeded to rebuild the city, and to fortify
the port with castles and bastions, provided with 150
pieces of artillery of different calibres. The military
garrisons played an important part in subsequent
political wars, and this fort was the last bulwark of
Spanish power in South America. When in 1826 Peru
was declared an independent State, Callao became its
principal port.
It cannot be said that the first impressions of Callao are
particularly favourable. Landing at the Muelle Darsena
in small boats, the steamers usually taking up their
berths after passengers have been landed, one is con
fronted by a maze of narrow and irregular streets, the
houses in which appear to be somewhat badly ventilated,
and the paths leading to them usually dusty or dirty.

298 PERU OF THE TWENTIETH CENTURY
The average height of the city is 2-30 metres above the
level of the sea, the difference as regards the city of
Lima being a height of 145 metres. There are practically
two towns, the " old " and the " new," the modern
portion being a short distance north of the original
town, while the older portion occupies the centre, and
comprises the many crooked streets already referred to.
Between the two portions there is a large open area
where some broad and handsome avenues have been laid
out at right angles. At present, however, there have
been only second-rate edifices erected upon them. An
excellent, if not too frequent, service of trams runs
between Callao and Lima, a distance of seven miles,
the time occupied on the journey being from twenty to
thirty minutes.
That Callao is not increasing in popularity as a place
of residence is proved by the large number of merchants'
houses which have closed their doors, the occupants
removing their domiciles to Lima. Scarcely a dozen
prominent firms now have separate offices at the port,
such as there are being merely those which are used by
tally- clerks and for the ordinary business relating to
the receiving and discharging of cargo. The tramcars
arriving at Callao in the morning and leaving for Lima
in the evening are usually crowded to excess with clerks
and workpeople, reminding one forcibly of the appear
ance of the " Tubes " in London, or of the " L " Railway
in New York during the same hours of the day. At
night the streets of Callao are given up to the inevitable
prowling cat and the sleepy, bemuffled policeman.
When it is dull and hazy at Lima, and that is for one-
half of the year, the sun can always be reckoned upon
as shining brilliantly at Chosica, situated at a distance
of but thirty miles from Lima. Beautifully located at
the foot of verdant and bushy hills, amid most fascinat
ing scenery, this delightful little place is a favourite

CALLAO 299
retreat for the Limonians. The summer season syn
chronizes with the hideous winter months of Europe and
the United States, and no greater comparison can be
drawn between beauty and desolation, between comfort
and discomfort, for residents than these different
localities situated at almost opposite extremities of the
world. There is a very pleasant but small hotel, and
also several handsome private residences. If I were
asked to recommend any particular place of residence
among them I should be inclined to mention the
Sanatorium, which, although possessing an unattractive
name, is really a very agreeable place in which to pass a
few days ; at any longer period I should hesitate.
To the left of the port of Callao, within a few minutes'
ride, there is the small and attractive suburb at present
of modest dimensions only, called La Punta, or " The
Point," an apt name, inasmuch as the land consists of a
small peninsula forming part of the bay, and facing the
island of San Lorenzo. The social season lasts from
December to May, during which months the place is
fairly well patronized by the people of Lima, who can
reach La Punta by direct street-cars, which make the
run in twenty minutes. A few new houses have been
erected this year in addition to the Eden Hotel, which,
if not elaborate in design, at least enjoys an attractive
sea- view.
A new era of prosperity dawned for Callao in 1900,
when, upon the recommendation of the Institute of
Civil Engineers in London, Mr. E. J. Rumsby, M.I.C.E.,
was sent out to Peru to make plans and give estimates
for a complete system of water-supply and drainage.
In spite of its being the second most important city in
the Republic and having a population amounting to
nearly 35,000 inhabitants, Callao for many years had
been left in a dirty, insanitary condition ; it is in some
parts dirty still, but insanitary no longer.

300 PERU OF THE TWENTIETH CENTURY
The Supreme Government gave its consent to the
cleansing programme in 1901 ; the money to build the
waterworks, and later on the drainage-works, amounting
to £42,000, was found, and the first part of the under
taking was completed and put into use in 1904.
About twenty-four miles of piping are laid down in
Callao, the head works of the water-supply being situated
5 kilometres above the town at a place called Chivato,
from which there is a drop of considerable depth. The
main-supply pipes, made of cast-iron, are 21 inches in
diameter, diminishing gradually until they reach the
diameter of the street laterals (5 inches). The amount
of supply is 30 gallons per head per diem, for 50,000
people. The static head in the town mains equals 80 feet,
affording an average pressure of 38 pounds to the
square inch. Nearly the whole of the houses in Callao
have been connected up, and although the rates are
deemed rather high — there are many people who think
that they should be provided with water for nothing ! —
general satisfaction with the service is expressed.
The sewerage system forms the second part of the
scheme, and this is making such excellent headway that
in all probability it will be in full operation before these
lines are in the printer's hands. Mr. Rumsby, the
engineer in charge, has made provision for a population
of 60,000, or almost double that of which Callao boasts
to-day. The town is divided into three zones, the
sewerage system being so conducted that at all states
of the harbour tide the outlets of the discharge pipes
are completely submerged, thus assuring a thorough
diffusion into the sea. The works were commenced in
the month of February, 1907.
Arequipa is both the name of the Department and
that of the Capital. The former lies along the Pacific
Coast from latitude 15° to 17° 20' south, the entire

AREQUIPA 301
population amounting to about 200,000. A large
number of volcanoes exist here, some extinct, others
occasionally active, among the latter being the beautiful
Misti (also called " Arequipa "), which reminds one in
appearance very much of Fujiama, in Japan. We see the
same perfectly shaped cone, the same majestic propor
tions, and the same awful grandeur which its calm,
changeless dignity produces. Its height is 20,320 feet
above the sea, and its head is ever under snow. The
last eruption took place in 1839.
It would occupy several volumes to afford my readers
anything like a practical idea of what the chief Peruvian
cities are like, and I can only hope to say something very
brief of a few among them. Already I have spoken in
an earlier chapter of Lima and Callao ; I would now
speak, I fear but sketchily, of Arequipa, the third most
important centre in Peru, and one of the seats of Spain's
great colonization power.
The city of Arequipa lies at the foot of the superb
volcano, and buried in a fertile valley. It is divided into
separate districts — Santo Domingo, San Francisco, La
Merced, San Agustin, and Miraflores. The population
probably exceeds 38,000. The city is typically Spanish,
all the streets being laid out at right angles ; the houses
are mostly one-storied, with ugly flat roofs — the best
kind of edifice no doubt for a place so often visited by
earthquakes as Arequipa, which had serious visitations
in 1582, 1609, 1784, and 1868.
I have, however, seen some really handsome houses
in this city, but they were probably the residences of the
Spanish grandees of those Colonial days, when all labour
was forced, and most material either stolen or acquired
for practically nothing. The principal material used
for the walls is a soft magnesium limestone. The houses
have several inner-courts, or patios, and the rooms have
handsome moulded ceilings. Arequipa is a University

302 PERU OF THE TWENTIETH CENTURY
town ; it has a public library ; several academies ; it is
the seat of a bishopric, and it supports several news
papers. Electric tramcars will soon be traversing its
streets, and already some very commodious and sub
stantial public and private buildings have replaced the
old and unattractive houses of later Colonial days.
The Chief Depot of the Mollendo-Arequipa Railway
(Southern Railway Company) is here, and the general
manager, Mr. H. A. McCulloch, occupies one of the most
pleasant residences in the city, he and his charmmg
wife being the most popular, as they are certainly the
most hospitable, among the foreign residents.
Lima was not the first city in Peru to be founded by
Francisco Pizarro, as so many historians tell us. I
satisfied myself that at least one town dates from an
earlier period — San Miguel de Piura, which was actually
commenced by the Spaniards in 1530. Even Trujillo is
older than Lima, for whereas the latter was founded in
January, 1535, the former dates from 1534. Then came
Arequipa in 1540, Ayacucho, Huamanga, and Potosi in
1542, and the city of La Paz — both now comprised in
the Republic of Bolivia — in 1549. Cuzco, the beautiful
Inca capital which Pizarro occupied in 1534, of course
had already existed some centuries before.
Arequipa seems to have been a place of some conse
quence even in its earliest known days, since we read of
it sheltering, in 1553, Francisco Hernandez Giron, one
of Pizarro's captains, who broke out into rebellion
against him, and collected a formidable army to resist
the Conqueror's authority. It is only those who have
made the long and tedious journey from Mollendo to
Arequipa and vice versa by train, who can realize and
appreciate the physical pluck and endurance of those
Spaniards who marched in their heavy, cumbersome
armour, and without any of the commissariat (so neces
sary upon a journey of this kind) from Arequipa to Lima,

Cuzco : A Street showini; old Inca Masonry and Pillar of Spanish Architecture.

AREQUIPA 303
in order to give battle to Pizarro ! In the end Her
nandez Giron found it best to retire before the armed
arrays against him ; and finally he was arrested, tried,
condemned, and beheaded on December 18, 1554. But
he was a glorious " man," and one of the bravest soldiers
who ever lived and died.
The population of Arequipa is under 40,000, the city
being the centre of a very rich and influential community.
It boasts a Bishop's palace, a Prefect's palace, handsome
courts of justice, and it is the centre of a large military
division. A considerable commerce is carried on with
Great Britain and Germany, in such articles as leathers,
rubber, copper, gold, and wool. Imports are received
from Germany, Great Britain, France, the United
States, and Italy. Germany has almost completely
supplanted England in some of the soft goods formerly
supplied. There are some English houses established
in the city, but a great many more German. Several
local factories do a large home and foreign trade, the
most important, perhaps, being the property of the
firm of M. Forga and Sons, and situated near Huaico,
a cotton factory containing a full equipment of British-
made cotton-spinning machinery with German electrical
plant. The factory cost the sum of £100,000 to build
and equip, and it turns out practically all classes of
white prints.
The Arequipa banks are in some cases branches,
and in others independent institutions, but are mostly
very successful undertakings. The two most important
are the Banco Italiano, with branches in Lima, Callao,
Chincha, Alta, and Mollendo ; and the Banco Aleman
Transatlantico. The Banco del Peru y Londres has
a very large branch here also. It was established in
1895 by uniting two institutions known as the Banco
del Callao and the Sucursal (Branch) in Lima of the
London Bank of Mexico and South America. The

304 PERU OF THE TWENTIETH CENTURY
first named had an initial capital of £200,000, which was
subsequently increased to £770,000.
The Banco Italiano was founded in Lima in 1889, with
a capital of £200,000. The reserve fund amounts to-day
to £90,000. The shares of £10 each are quoted at £14,
the dividends paid amounting to 22 per cent, in 1906,
26 per cent, in 1907, 13 per cent, in 1908, 8 per cent, in
1909, and 20 per cent, in 1910.
The Banco Aleman (Deutsche Ueberseische Bank)
is a branch of the Lima establishment, which is again
merely a branch of the Berlin office. The nominal
capital is Ms. 30,000,000 (£1,500,000), and there are
twenty-four different branches throughout South
America. This institution has done an immense service
in furthering German trade and commerce. In this
respect it stands almost alone among the monied estab
lishments upon the South American Continent.
The Electrical Company, a local undertaking, was
founded in Arequipa some few years ago to construct
light and power works, and eventually to run an electric
cable car service. The concern has, especially latterly,
proved very successful. The power is taken from the
magnificent falls and river at a place called Charcani.
The Company lights the whole town, supplying both
the municipality, the factories, and private consumers.
The local Tramway Company may one day, and not
a far distant one either, blossom into an undertaking
of some importance. It was established in 1874 with
the small capital of £10,000, and has passed through
many different hands at many different times, finally
becoming the property of the Credito Urbano de
Arequipa. This institution came to financial grief, and
the tramway fell into the hands of its creditors, who
are now working the concern more or less — I am rather
afraid less— satisfactorily. Nevertheless, the number
of passengers continue to increase, the figures being:

AREQUIPA 305
1907, 614,317; 1908, 825,565; 1909, 1,052,854. The
whole rolling-stock consists of some twenty-three open
or closed cars, the service being a five-minute one
through the day, and the whole length of line a little
more than 11 kilometres. The annual profits amount to
£3,200, or, say, 32 per cent, upon the amount of the
present capital invested.
The people of Arequipa are intensely attached to
their city, and there is no small amount of rivalry —
perfectly good-natured rivalry, bien entendu — between
this ancient city and more modern Lima. Residence in
the former is decidedly agreeable from a climatic point
of view, and most of the luxuries of latter-day civilization
are obtainable. One may pass several weeks in this
city as a visitor without becoming in any way bored ;
the kindness of the inhabitants, the courtesy of the
officials, and the general air of prosperity which the place
possesses render a sojourn there among the most pleasant
of the traveller's experiences in the Republic of Peru.
The Harvard University have erected a fine astrono
mical observatory a short distance from the city of
Arequipa, upon the slope of the majestic Misti. This
institution is now some twenty years old, and was
originally intended to facilitate the taking of observa
tions at the highest possible altitude above sea-level. The
institution, which is fully and even elaborately equipped
with all the latest scientific apparatus, is under the direc
tion of Mr. Frost, a distinguished Harvardian scholar
and scientist. The Government have always taken the
keenest interest in the proceedings at the Observatory,
and offer every encouragement to the staff to persevere
with their studies.
Cuzco — the Imperial City of the Sun — the ancient
capital of the Inca Empire, is chiefly interesting for what
it was, rather than what it is. Verily its ancient glory
has departed, and where once the sacrificial altar reared
20

306 PERU OF THE TWENTIETH CENTURY
its gruesome pyramid to the skies, now stand endless
church towers, some of them monstrosities of ugliness,
others types of beautiful Spanish-Moresque architecture.
I do not know precisely how many churches are owned
by Cuzco ; but they certainly cannot number fewer
than threescore.
It is the surrounding territory of the town, however,
which will claim the first attention and enrapture the
mind of the visitor who is at all interested in the history
of the wonderful people who, but four centuries ago,
inhabited this city. The numerous ruins which exist,
the curious formations of which often completely puzzle
the observer as to what particular use they were
originally devoted ; the remarkable character of the
architecture, solid and sensible, often composed of gigantic
slabs of rock so artfully welded together — and without
the use of a shred of mortar — as to present the appear
ance from a short distance of a solid whole ; the huge
plazas, or public squares, in which the Incaic celebrations
took place — all of these impress the visitor as strongly,
and produce a feeling of melancholy as profound, as
the ruins of ancient Egypt, the remains of the Toltecs
in Mexico, and the vast deposits which have been left
by the former inhabitants of Anuradhapura and Polon-
naruwa in Gey Ion.
To-day the electric light illumines the straight and
regular streets of Cuzco ; trams — primitive and uncom
fortable, but still tramways — perambulate the thorough
fares ; a railway-station, located a mile or so from the
town, fills the quiet air with locomotive whistling, and
the shunting of heavy goods waggons can be heard
both night and day. The telegraph and the telephone,
fresh fish and meat of the best quality, a profusion
of fruit, and the choice of many comfortable modern
dwellings make Cuzco a by no means unpleasant place
in which to reside occasionally.

CHAPTER XXIV
Foreign companies — The Peruvian Corporation — Relations with the
Government — Lima Railways — Peruvian Amazon Company — Putu
mayo scandals — United States' recognition of Peru as possessing
territory — Position of the Company — Lobitos oil-fields — Backus and
Johnson Brewery — Peruvian Cotton Manufacturing Company.
The aggregate of foreign capital which has been from
time to time invested in Peru cannot be to-day much
less than £60,000,000, if one considers the several large
and important undertakings which such an amount
represents. British, North American, German, and a
small proportion of French capital has found its way into
the Republic, which in the coming years is destined to
receive a considerable augmentation.
The Peruvian Corporation, Limited, is an institution
which is probably unique both in regard to its origin and
its position, offering an example of a huge financial
association charged with the double trust of protecting
the interests of some thousands of foreign shareholders,
whose money is invested in Peru, and conducting the
management of a number of important transportation
and commercial enterprises in such a manner as to please
its shareholders, satisfy the public, and content the
National Government.
The difficulties, dangers, and disappointments atten
dant upon such undertakings can well be understood,
and the necessity for steermg a course which shall
satisfy all alike is apparent. How that course has been
negotiated in the past and with what amount of success,
the records of the Corporation plainly show. That its
307

308 PERU OF THE TWENTIETH CENTURY
career has been a somewhat exacting, and at times
almost a discouraging one, may be admitted. Such a
delicate position as that occupied by the management
in Peru must command some sympathy, and the Cor
poration's many critics are apt to overlook the inherent
difficulties which of a necessity exist.
It would be idle to deny that, some years ago, strained
relations existed, and continued for some time, between
successive Peruvian Governments and the Corporation.
The latter had been charged in those turbulent days
with " showing a lack of clear-sightedness, with ob
struction, and with displaying a want of sympathy, as
well as failing to realize the precise objects with which
it was originally formed." These were the complaints
lodged by certain Peruvian critics, at least ; and some
allowance must no doubt be made for the natural
irritation of those patriotic souls who find a masterful
and determined and extremely powerful foreign in
stitution dominating the entire national transportation
arrangements of the Republic, and occupying the always
unpleasant and frequently dangerous position of usu
fructuaries. The same irritation prevailed in Mexico
so long as the Central Railway remained under North
American control, and ceased only — and even then not
entirely — when the National Government purchased
the principal interest and assumed the direction. Con
sidering the extremely onerous situation in which
the Peruvian Corporation has been placed during the
long period of its existence, the wonder is not that there
should have been some, but that there should not have
been more, friction with the Government and the
public of Peru.
The progress of the Corporation during the past
twenty odd years may be gauged from the figures which
are available. From 1890 to 1891, for instance, the net
receipts in sterling amounted to £91,771 lis. 3d., while

PERUVIAN CORPORATION 309
for 1891-92, the receipts went up to £137,816 14s. 8d. In
the next three years they slid back, however, mounting
again in 1895-96, only to fall back once more in 1897 ;
but from that time onward the receipts seemed to have
shown a steady, if not a sensational, increase until
1908, when they amounted to £263,203 19s. 5d. For
the year 1908-09 there was experienced a slight diminu
tion, partly due to a decrease in the guano income, and
partly to increased fixed charges, which, however, had
been to some extent counterbalanced by an increase
in the railway net receipts. For the periods mentioned
the railways contributed not less than £228,247 5s. 3d.,
as against £105,745 14s. 9d., or an increase of
£22,501 10s. 6d.
With the exception of their land colony, which showed
a small debit of a little over £5,000, the whole of the
undertakings in the hands of the Peruvian Corporation
proved remunerative for the year ending June 30, 1910,
a profit for the twelve months of £285,177 being shown.
For the railways and navigation there was an increase in
net income of over £93,000, but, on the other hand, there
was a reduction of revenue from guano of nearly £38,000.
It is interesting to compare statistics of this Corpora
tion since 1890 with those of present date, so far as net
receipts in sterling are concerned. From 1890-91 these
receipts amounted to £91,771 lis. 3d., while for 1909-10
they figured at £333,559, or over 200 per cent, increase.
The net receipts for the last twelve months are the
highest in the history of the Corporation, but by no
means so in regard to the working expenses, which,
upon three previous occasions, at least, were greatly in
excess of last year's figures.
The question of the rate of exchange has played a
momentous part in the Corporation's prosperity. Some
twenty years ago, when it first took over the different
important businesses which it has since conducted, the

310 PERU OF THE TWENTIETH CENTURY
rate of exchange stood at 37 pence per sol, from which
it steadily declined to 22f pence for 1896-97, datmg
from which period it crept slowly upwards ; but it has
never exceeded 24J pence, and now stands at about
24^ pence. There is no reason to suppose, with the im
proving prospects of Peru, that the rate of exchange will
go any lower, but that, on the contrary, it may even
moderately advance. The railways, steamship services,
guano trade, and other enterprises which are conducted
wholly or partially by the Peruvian Corporation, are
referred to fully under the different chapters which deal
with these subjects.
Under these same chapters, which I have devoted
to transportation matters, some account of the various
lines owned and the business done by the Lima Railways
Company, Limited, will also be found. The financial
conditions of the concern covering the transactions of
the past year (1910) call for further mention here. The
statement is favourable from a double point of view,
since it shows that not only have the receipts in
Peru augmented from £13,828 4s. lid. in 1909 to
£15,905 17s. lOd. in 1910, but that the expenses
declined from £2,287 19s. 4d. to £2,077 12s. lid., the
not inconsiderable saving of £210 6s. 5d. being thus
recorded — and the net receipts mounting from
£9,134 Is. 8d. to £13,828 4s. lid. It must be borne in
mind that the Company is quite a young one, and still
of but modest proportions ; but it possesses all the
elements for expansion, and a few years hence it should
have a very different kind of balance-sheet to put forward.
A dividend of 2 per cent, is not a magnificent one to
pay, it is true ; but it may be accepted as an earnest of
what the future has in store. In the meantime let the
shareholders remember the advice of Horace : " Quid
sit futurum eras, fuge quserere : et quern fors dierum
cunque dabit, lucro appone."

The ancient Inca City of Cuzco (one-half only is shown).

PERUVIAN AMAZON COMPANY 311
Regrettable as were the revelations contained in
expose of the slavery conditions prevailing at the
Putumayo estates of the Peruvian Amazon Company,
Limited, and seriously as they reflected upon the
conduct of certain of the Company's officials in whom
there had been placed much mistaken confidence, three
noteworthy facts have come to light. Firstly, every
credit must be given to the Editor of Truth for the
thoroughly earnest manner in which he attacked the
scandal, and for the efforts which he made — and made
successfully — to put an end to the hideous cruelties
perpetrated upon the Peruvian peons. Secondly, the
British Government also, for once in a way, did bestir
itself, for Mr. (now Sir) Roger Casement, formerly
H.B.M. Consul at Para, Brazil, was sent from Rio de
Janiero, where he is the British Consul-General, to report
upon the conditions of things. Although there has been
no public issue of the report which he made to the
Foreign Office (and in connection with which service
he no doubt received his honour at the King's hand
last June), I am in a position to state that Sir Roger has
confirmed in almost every particular the terrible charges
which were brought against the local management of
the Peruvian Amazon Company, and which, therefore,
altogether vindicates Truth in having been the means of
exposing the atrocities committed.
Thirdly, praise should not be withheld from the
Directors of the Company, who stood loyally by their
employes until they were completely satisfied of their
unworthiness ; then they repudiated and dismissed them
without hesitation or compunction. Finally, the Peru
vian Government, immediately that their attention
was called officially to the infamy in existence — and they
could not interfere with a foreign-owned and foreign-
managed concern until so appealed to — instituted
prompt and vigorous steps to arrest and prosecute those

312 PERU OF THE TWENTIETH CENTURY
who were responsible for the offences mentioned. Nor
have their efforts proved unavailing.
It has to be borne in mind that the position of the
Peruvian Government was a doubly difficult one.
Putumayo, where the trouble arose, is in the most remote
and most inaccessible of the Departments of the Republic,
and the particular property of the Peruvian Amazon
Company, Limited, is so situated that it is practically
impossible for the central administration, located at
Lima, to maintain anything like a careful watch upon —
or, indeed, to have any official cognizance at all concern
ing — what may be proceeding so many hundreds of
miles away in a wild and untravelled virgin country.
The Government, moreover, have, as indicated, no legal
right to interfere in the internal management of a foreign
corporation, unless and until their attention is drawn
through the usual diplomatic channels — as was done in
this case by the British Foreign Office — to what is com
plained of. Immediately such notice was given, the
necessary steps to bring about intervention were taken.
More than this could not have been asked.
But a second and more serious obstacle confronting
the Government of Peru was the outstanding question
between the Republic and the sister State of Colombia
regarding the rightful ownership of the District in which
the Company's lands are situated. For many years
the question of ownership has been in debate, and
obviously it would have been highly improper for Peru
to have sent any armed force (even if it had been re
quested to do so) to a place which might — but certainly
does not — belong to Colombia.
In the month of December, 1909, the Consul-General
for Colombia in London (Senor Francisco Becerra)
made a public declaration before a notary to the effect
that the " Republic of Colombia reserves its rights over
the region of the Putumayo, which belongs to it, and

PERUVIAN AMAZON COMPANY 313
that consequently the lands (of the Peruvian Amazon
Company, Limited) cannot be exploited until the for
malities prescribed in such cases by Colombian Law
be fulfilled." The property in question covers an area
of about 12,000 square miles — that is, to-day it is larger
than Belgium, which has but 11,373 square miles, and is
about one thirty-ninth part of the size of the Republic
of Colombia.
The Government of Peru have certainly no reason
to feel anything but satisfaction at the outcome of this
Ion g-standirg dispute, since they have been now formally
and irretrievably recognized by the United States of
America as the rightful proprietors of the Putumayo
district. If this recognition was not intentional or
deliberate, it is none the less definite and complete.
The circumstances leading up to the denouement are
as remarkable as they are interesting. It was urged by the
Peruvian Amazon Company, Limited, that the serious
charges brought against their management in Peru were
the outcome of malice upon the part of one W. C. Har-
denburg, who, failing to obtain from the Company the
trifling sum of £7,000, which he claimed for " loss of
luggage and personal inconveniences sustained while
travelling through their territory," communicated the
sensational revelations to Truth, and which, when pub
lished, caused so much comment.
Whatever rights Mr. Hardenburg may have had —
and, in any case, a claim for " £7,000 " for lost luggage
seems about as tenable as the late lamented Paul Kruger's
£2,000,000 for " moral and intellectual damages " — the
Company declined to satisfy his request. He then ap
pealed through his Government — the United States of
America — for assistance, reducing his claim (I believe)
to £4,000, still, it will be observed, a strictly moderate
one ! In the end, the Government of Peru, which, be it
observed, was the authority addressed, and not the

314 PERU OF THE TWENTIETH CENTURY
Government of Colombia — met Mr. Hardenburg's claim
by paying to him through the United States authorities
the sum of £500 in full compensation.
While the Government of Peru did not, and do not to
this day, in all probability, believe that Mr. Hardenburg
ever had in his possession any luggage worth the sum of
" £500," nor, indeed, raised any question concerning the
real value of the property alleged to have been lost in
Putumayo, they very shrewdly — and, to my mind, very
diplomatically — paid the above - mentioned compensa
tion ; and by so doing they received the official recogni
tion of the United States Government (which counts in
a dispute of this kind) as the Sovereign owners of the
territory in question. The success of the movement is
unquestionable and the method of conducting it incon
trovertible. It is also significant that while a good deal of the
Chairman's (Mr. J. Russell Gubbins) attention was given
up at the shareholders' meeting (held on December 31,
of 1909) to the charges made in the newspaper referred
to, very little — and that little of less consequence — was
uttered about the matter in the course of the last pro
ceedings (December 16, 1910), and we may therefore
believe that the " Devil's Paradise " and " A British-
owned Congo" — as the Company's estates were dubbed —
have either ceased to exist, or have been very considerably
improved in regard to the management.
What the shareholders were much more interested in
hearing was that the Company had made a profit of
£35,365, which, although not large enough to afford a
dividend, was better than the previous year, when
nothing whatever was earned. The shareholders have
not as yet been presented with those golden thousands
which they were led to expect in the original prospectus.
If I remember rightly, the accountants declared that the
business being done " averaged profits for the year

LORITOS OIL-FIELDS 315
(1906-07) about £61,000"; and the anticipated profits
for the year 1907-08 " were not likely to be less than
£84,000." How very much less they actually proved
to be I have shown.
At an extraordinary general meeting held on Sep
tember 13 last (1911), it was decided to liquidate
voluntarily, and to reconstruct the company.
Great hopes were at one time entertained with regard
to the Lobitos Oil-fields, to work which a London
company was formed at the end of 1908. Unfortu
nately, progress has not been by any means rapid, nor
have the results achieved come up to expectations. For
the first year 42,653 tons of crude oil were produced, the
shipment being 36,131 for the same period ; for the second
year the production amounted to 57,226 tons, and ship
ments to 52,789. For 1910, however, the amount of oil
produced was 3,882 tons less than the production for
1909, but, on the other hand, the " net operating in
come," to use the curious verbiage employed in the
Directors' report, was £1 4s. lid., as compared with
£1 0s. 8d. per ton for the previous year. This should
be considered a very excellent average per ton, as even
in East Virginia, where the best results are admittedly
obtained, the profit rarely exceeds £1 10s. per ton. For
the first six months of the current year, 1911, the output
has been 23,995 tons, a decrease of 4,547 tons as com
pared with the corresponding period in 1910. It seems to
me that expenses of working are altogether very high,
and that too much money is being spent upon unneces
sary development.
A probable reason, moreover, for the decline in the
production in this Company's fields is the fact that the
attention of the management on the fields has been too
much deflected from the production of oil from the
shallow wells to the work of sinking a number of deep
wells ; and, additionally, that the old, shallow wells,

316 PERU OF THE TWENTIETH CENTURY
which have been worked for some time, are now becoming
exhausted. The Backus and Johnson's Brewery Company, Limited,
which has been in existence for about twenty years,
enjoyed a better twelve months for 1910 than it had
known for several years, the gross profits amounting to
£26,618 18s., and leaving the Directors with the sum of
over £20,000 for distribution in the shape of net profits.
It is not at all improbable that within a short time the
Directors may decide to pay off the 7 per cent. Income
Debenture Stock, which was raised at a time when
additional capital was very difficult to obtain, and when
the management of the concern at Lima was at its very
worst. The Income Debenture Stock can be redeemed
at any time at 105 per cent, by giving six months' notice.
There is only £57,000 worth of this stock issued, and as
it stands in the market to-day at 93-96, a purchase
would prove a very profitable enterprise, since the in
vestor would obtain nearly 6 per cent, for his money,
and would realize a profit of £10 or £12 per share when
the Debentures were paid off. The financial position of
the Company is now so strong that the Directors would
be able to raise any further money they may require at
a considerably lower rate of interest than 7 per cent.
At the end of July last (1911) the cash books, both in
London and in Lima, showed a balance in hand exceed
ing £21,000, which proves that there is more money
available than is actually required for the running of the
business. For many years the ordinary shareholders have not
received anything in the way of dividends, and there is
an accumulation of nearly 94 per cent. — equal to £102,575
in arrears. This year a beginning has been made in paying
off something of these, and 1 per cent. — not a particu
larly large proportion — has been distributed among the
shareholders, who are entitled to receive— when earned

PERUVIAN COTTON COMPANY 317
— 7 per cent, per annum. The Founders' shares, of
which there are but 100, and which are entitled to a pro
portion of the residue of profits, have received nothing
since 1891, and it will probably be some years before
they receive anything again.
The Peruvian Cotton Manufacturing Company,
Limited, which is practically an offspring (or shall I say
protege, of the Peruvian Corporation ?), had a very suc
cessful year for 1909-10, the dividend paid a few months
ago greatly exceeding that of any previous twelve
months. The nominal capital of the Company is
£100,000, and of which only £80,000 has been issued.
There are no debentures, and no other class of securities
than the Ordinary shares, while the Reserve Fund
amounts to £30,000. On the other hand, the Company,
which is also affiliated with the Inca Cotton Company,
have subscribed £20,000 out of the total of £55,000 of
Debentures raised for the purpose of providing ad
ditional machinery for that Company. The Peruvian
Cotton Manufacturing Company has been enabled this
year to pay a dividend of 8 per cent, free of Income Tax,
and to carry forward over £2,300 to next account. The
net profit earned amounted to £13,662.

APPENDIX
Immigration — Concessions and concessionaires — Colonies and settlements
— Lands (montana) and forests — Civil rights of foreigners — Landed
property of foreigners — Property of deceased foreigners — Foreign
trade-marks — Registration of trade-marks — Mining (summary) ex
tracts from certain laws — Colonists arriving — New rubber tax (1911)
— Accidents to workmen — Insurance of workmen — Workmen's com
pensation. Immigration Laws.
All foreigners (with the exception of the Chinese) have the
right of entry into Peru, and they enjoy the same security
and privileges as those granted to Peruvian subjects, while
they have full liberty to buy, sell, or transfer their goods
as they may think fit.
An Executive decree was issued on May 14, 1909, prohibit
ing the entrance into Peru of Chinese immigrants having
less than £500 in cash. Chinese emigrants en route to Peru
at the time of or before the issuance of the decree were
excepted from the effects thereof. Towards the close of
1909, the Government put into force rules by which the
promiscuous entry of Chinese manual labourers was re
stricted, and at the same time it passed laws for the aliena
tion of public lands, so that the promotion of colonization
and the stimulation of immigration into the country of a
more desirable class of immigrants would be facilitated.
Laws Relating to Concessionaires.
For the purpose of attracting capital to enterprise, and
also of removing it from abroad, the Government of Peru
has been accustomed to granting favourable concessions to
those who will undertake the development of works of public
improvement. These concessions carry with them an obliga
tion to build works and the right to enjoy the profits of
318

CONCESSIONAIRE LAWS 319
them under certain conditions. The contractor deposits a bond
with the Government as a pledge of his intention to pro
ceed with the construction which is the subject of the
agreement. Generally a concession, to be effective, must be
ratified by a Constitutional Congress; but that body has
clothed the Executive with the right in certain cases to grant
concessions for the public benefit without first obtaining Con
gressional sanction. The Congress of 1891 authorized the
Supreme Government to grant concessions in accordance with
the terms of certain contracts already made. This wise pro
vision, especially in the interests of agriculture, promises to
Peru the highest form of development of which the country
is susceptible in that class of wealth which secures the most
stable foundation to the State.
The development of the agriculture of the north has been con
sidered so essential to the prosperity of Peru that some ex
tremely advantageous provisions have been incorporated in the
concessions relating to these regions. Thus, where the work is
declared to be for the public weal and advantage, every
landowner whose land is accessible to the waters of irrigation
must pay the water-rent, whether he takes the water or not.
The land and crops, also all capital invested in the estate, are
made security for the payment of rents, and may be seized to
satisfy them. An equitable arrangement has been devised, by
which the fertile lands of the pampas may be " expropriated "
by paying a nominal price.
Colonies and Settlements.
The first legislative measure regarding the establishment of
Colonies or Settlements was enacted by the Peruvian Congress
in 1898, and was modified and improved by the laws of
1909 and 1910. By these Acts the Executive is authorized to
make use of certain vacant lands for colonization, either by
Peruvians or foreigners coming to the country with the
intention of becoming residents, provided such foreign residents
follow a trade or industry. State lands may also be con
ceded to individuals or corporations to encourage public
works, such as road-making, irrigation works, or railway
building. The coastal lands are largely privately-owned or
are in the bands of native communities whose possession
dates back to the ancient Chimu civilization, and was recog-

320 PERU OF THE TWENTIETH CENTURY
nized in turn by the Incas and the Spanish conquerors ; these
community lands rarely change hands. State-lands of the
coast region may be sold or granted upon terms based upon
the extent to which their use will benefit the country.
Montana Lands.
On May 29, 1908, the President of Peru issued a decree
abrogating all previous decrees and resolutions of a general
character concerning the exploitation of leased lands in the
" montana " containing timber, rubber trees, and other similar
products, the improper exploitation of which had become
prejudicial to the interests of the nation. The decree re
mained effective until the proposed law on the subject
which pending the action of Congress, was enacted, and
the proper rules and regulations issued governing the oper
ation of these lands. Concessions granted and contracts
entered into in accordance with the laws in force at the time
they were made were not affected by this decree. Money paid
into the Public Treasury on account of application under
consideration at the time of the issue of the decree was re
funded to the parties interested.
Montana lands may be now obtained by the applicant
at the rate of 50 cents (U.S.) ( = 2s.) per hectare (1 hectare =
2"4711 acres), not oyer 1,000 hectares being granted to any
one person without special Legislative sanction. Such grants
are in perpetuity, depending, as in mining grants, solely upon
the prompt payment of the annual tax, which in this case is
2£ cents ( = 5d.) per hectare. Non-payment for one year
is sufficient cause to cancel the title.
Civil Rights for Foreigners.
The legal condition of foreigners as regards civil rights in
Peru is the same as that of natives. The 32nd Article of the
Constitution now in force says : " The laws protect and oblige
all persons equally, and the civil rights are independent of the
quality of the citizen." This general and ample principle,
laid down in the fundamental chart of the Republic, proves
that in Peru the civil rights of all persons are respected with
out any distinction of nationality, and that all those who
inhabit the country are under the protection of its laws.

LANDED PROPERTY 321
Landed Properties op Foreigners.
Any foreigner can acquire landed property in Peru, and can
dispose of it at will ; in general, everything concerning landed
property is amply guaranteed by the Peruvian laws. Thus it
is that the 28th Article of the Constitution expressly declares
that every foreigner can acquire, in accordance with the laws,
landed property in the Republic, possessing in everything
relating to that property the same rights as the Peruvians
enjoy. Thus foreigners can dispose of their property by all
the methods which the law permits, on the necessary celebra
tion of any contracts permitted by the laws, without any further
obligation than what is laid down in the Code and special laws.
Special dispositions expressly authorize foreigners to
denounce mines, obtain concessions of mountain and rubber
lands upon the same conditions as Peruvians, subject, of
course, to the dispositions in force, which affect the one
just the same as the other.
In accordance with the dominant principle in the Peruvian
legislation, landed property in Peru is subject to the law of its
situation, whatever may be the nature and condition of the
owner. In order to guarantee the property and the consequent
free disposal of it without fear of there arising, or of there
being put forward at any time, any special claims against a
property acquired in accordance with the law, there has been
recently established in the Republic the Registry of Landed
Property, in which this is inscribed with the name of the
actual owner, the manner in which it has been acquired, any
encumbrances which may exist, and any prescriptive rights
which may limit the free disposal of it.
Property of Deceased Foreigners.
The Civil Code expressly recognizes on behalf of all foreigners
the right to dispose of their property by will. In the case of
the death of a foreigner without having made a will, and if
there be no legal heirs, the mode of procedure consists in
immediately placing the property under the control of the
Consular representative of the nation to which the deceased
foreigner belonged. An inventory is then taken and the
property is liquidated, the balance, if any, being handed over
to the legal heirs, through the intervention of the representa- 21

322 PERU OF THE TWENTIETH CENTURY
tive or Consul of the nation to which the deceased belonged.
It is worthy of note that no payment can be made to the heirs
until the expiration of six months after the notice of the death
has been given. Foreign Trade-Marks.
In order to protect the frequent imitations and falsification
of foreign brands and trade-marks, and, at the same time, to
facilitate manufacturers and dealers in foreign countries
securing their goods by registering their trade-marks in Peru,
the Government has, in a recent Message, authorized all the
Consulates of certain importance to accept directly from
owners of trade-marks the " solicitude " (application) of same.
This is of more importance principally to those who lack any
connection in this country, as the passing of this new decree
will enable them to register their marks without intervention
of a third party and without the least trouble, because both
the Consulates and the Office of Industries, which is a depend
ency of the Ministry of Public Works, will take charge of the
matter until the proper certificate can be handed over to the
applicant's solicitor. The only drawback, however, is found in
the fact that the " solicitudes " for the registering of trade
marks must be made out in Spanish; but, fortunately,
nowadays, a translation is a matter that can be done practi
cally everywhere with no great difficulty.
The fees for the registration are quite moderate, and are as
follows : £1 10s. for registration, including certificate,
8s. for the publication in newspapers,
Is. 7d. for stamped paper,
which makes a total of less than £3 for the whole service.
The Consulates will be also bound to receive and attend to
all claims and complaints in the event of imitations and falsi
fications, and the Peruvian Government will prosecute and
punish all violators of the patents without charging anything
to the interested parties.
For the adequate protection of the proprietary rights in
trade-marks registered in Peru, the President of the Republic,
on September 10, 1909, formally decreed that —
On the last day of each month the Division of Industry

TRADE-MARKS 323
of the Department of Fomento shall issue a statement cover
ing such trade-marks as have become void through expiration
of the ten-year guarantee granted by Peruvian law. Said
trade-marks shall not be renewed to other than the previous
owner in less than three months from the publication of the
statement referred to, unless so requested by the proprietor.
Each mark requires a separate registration, but slight
modifications of registered marks may be permitted, pro
viding publication of the same, with modifications, be made
for five consecutive days in El Peruano.
If two requests for the registration of the same mark are
received at the same time, preference is to be given to the
foreign applicant who had first made use of it. In case it had
not been previously applied, the native owner shall have
preference. If both applicants are native or foreign, preference
shall be given to the one who first established the industry to
which the trade-mark referB.
For the presentation of a claim before the Ministry of
Fomento in regard to falsification or imitation of a trade
mark, it is not necessary that it be made by the manufacturer
himself. Any manufacturer or consumer who considers him
self injured by the falsification or imitation is empowered to
denounce and prosecute.

SUMMARY.
Mining Laws.

The Mining Laws of Peru are well-planned and are fairly
administered. Very briefly put, they provide that the owner
of the soil has title to slates, sandstones, building stones
generally, gypsum, sand-potter's earth, earth containing mag
nesium and aluminium, and peat and phosphates. When
found on Government lands the Government may either work
them or issue a concession to work them. Guano, salt
deposits, and salt-water wells are State property. Nitrates,
borates, and alkaline salt deposits of mineralized or fossilized
substance can be acquired by petition or denouncement, as
<jan also water, slags, or tailings. Mining property is
irrevocable so long as the mining-tax is paid, and perpetual
as common property.

324 PERU OF THE TWENTIETH CENTURY
The unit of the mining claim, or the pertenencia of 100 by
200 metres, is 2 hectares of 4'94 acres, in the form of a
prismatoidal solid of indefinite depth. In placers, coal and
petroleum deposits, the pertenencia measures 200 X 200
metres, or 9'88 acres. A concession may embrace up to 60
pertenencias. Prospecting and exploration concessions are
granted in size from 60 to 600 pertenencias, but one person
or company may obtain several such concessions. These
are granted for one year, but the term may be extended
for another year. A small tax of 2s. per hectare per annum
is paid on prospecting grants. Mining concessions pay £3
per pertenencia per annum, payable half-yearly. Non-pay
ment during three successive half-years cancels the title, but
arrears may be paid before that time, with 50 per cent, fine
for any part of a half-year overdue, and 100 per cent, for
that a full year overdue. {See further reference under
Chapter IV.)
Any Peruvian citizen or foreigner capable of owning
property in the Republic may acquire mining property,
excepting certain officials having to do with the issue of titles
or local administration, and also excepting employes, who are
not permitted to denounce mines situated within 10 kilo
metres of the nearest point to their employer's property. The
right exists of expropriation of surface-area for necessary
buildings, shafts, etc. Mining Code.
Until 1900 the old Spanish Code (the " Ordenanzas ") was
in force, greatly modified by several laws passed at different
periods. This Code, being antiquated, did not contemplate
the conditions met with in modern mining, and lacked unity
on account of the many alterations introduced. The actual
Mining Code is a decidedly liberal one, making the acquisition
of mines both an easy and an inexpensive matter. This Code,
which became effective January, 1901, comprises the follow
ing chapters :
I., On Mining Property ; II., Prospecting and Exploration ;
III., Unit of Measure, Extension and Form of Mining Con
cessions; IV., On Mining-Taxes; V., On Mining Administration
and Jurisdiction; VI., On Persons Capable of Acquiring Mining
Property; VII., On the Proceedings to be Observed in Petition of

MINING CODE 325
Claims ; VIII., On the Relations between the Concessionaire of
a Mine and the Owner of the Soil ; IX., On the Relations between
Mine-Owners ; X., General Adits for Exploitation, Transport,
Drainage, and Ventilation ; XI., Concessions for Reduction
Works, of Land for their Construction, and of Water ; XII.,
On Rights of Ways; XIII., Mining Companies; XIV., On
Mortgage and other Contracts ; XV., On Technical Function
aries ; XVI., Mining Lawsuits ; XVII., Expropriation and
Indemnification ; XVIIL, Transitory Dispositions. {See further
reference under Chapter VI.)
A short summary of the most important of the chapters
above referred to is given hereunder :
Chapter I. : On Mining Property. — This chapter specifies
what kind of mineral or fossilized substances may be obtained
in accordance with the actual Code ; those which belong ex
clusively to the owner of the soil ; and those which are
not the subject of petition.
The owner of the soil has exclusive title to all silicious
rocks, basalt, calcareous soil and rocks, serpentine, marble,
alabaster, porphyry, jasper, and generally all analogous
building and ornamental materials ; gypsum, sand, marls,
kaolin, emery, argillaceous and fullers' earth, earth-contain
ing pyrites, aluminium and magnesium, steatite, calcareous
phosphates and peat. All these substances are deemed to
be of common profit when found on State or city council's
lands, the Government or those corporations . being em
powered to regulate their working or to issue special conces
sions. Guano, salt deposits, and salt-water wells are considered
State property.
Nitrates, borates, and alkaline salt deposits are subjected to
special laws.
All other deposits of mineralized or fossilized substance
can be obtained by petition in accordance with the proceed
ings of the Code.
Water, slags, tailings, and waste can also be acquired by
petition. Mining property legally acquired is irrevocable, and as
perpetual as common property. The only cause for can
cellation of title is the non-payment of the mining-tax.
{Chapter IV.)

326 PERU OF THE TWENTIETH CENTURY
Chapter II. : Prospecting and Exploration. — Special con
cessions are granted for the purpose of prospecting and
exploring. Each concession can embrace from 60 to 600
claims, and the same person or company can obtain several
concessions of that kind, so as to cover all the land required.
These concessions are only granted for one year, but the
period can be extended for another year. A small tax of
1 sol Peruvian (2s. or $0.50 gold) per hectare per annum has
to be paid.
Chapter III. : Unit of Measure, Extension and Form of
Mining Concessions. — The "claim," or pertenencia, is the unit of
measure for mining concessions, and except in the cases men
tioned later on, is considered as a prismatoidal solid of rect
angular base with an extension of two hectares (approximately
five acres) having one side of 200 metres and the other of 100,
measured horizontally in any direction which the petitioner
may point out, and of indefinite depth in the vertical direction.
In placers, coal and petroleum deposits, and the analogous
ones of gold, platinum, tin, etc., a claim embraces 4 hectares
(approximately 10 acres), the base being a square with sides
of 200 metres.
The mining concession applied for by the petitioner may
embrace any number of claims up to sixty.
The other articles of this chapter deal with the grouping
of claims, and the spaces smaller than one claim (demasias)
remaining between concessions.
Chapter IV. : On Mining-Taxes. — All mining concessions
shall pay an annual tax of 30 sols (£3) for every claim
(pertenencia) included within their perimeter. The payment
shall be made in two equal parts, one every six months,
the first term ending on June 30 and the second on De
cember 31. The non-payment of the contribution during
three half-years causes the cancellation of the title to the
property, but before the expiration of those three half-years
the arrears may be paid with a surcharge of 50 per cent.
for that part unpaid a half-year, 100 per cent, for part
unpaid for two half-years, and, of course, none for the third.
Chapter V. : On Mining Administration and Jurisdiction. —
The administrative and economical mining control corresponds :
To the Executive power represented by the respective De
partment ; to the Superior Mining Council ; to the Territorial

MINING CODE 327
Deputations; and to the functionaries or authorities who
may represent them.
There are Territorial Deputations or Delegates in all impor
tant mining districts, whilst in places where neither Deputa
tion nor Delegation exists, their attributes are discharged by
the judge of the lower court of the province.
The territorial mining functionaries above indicated, who
may be foreigners, decree and decide upon everything re
specting concessions, possession, and measurement of mines
within their jurisdiction. They attend to the formation
and registration of the titles of mining concessions, and act
as superior mining police in the prevention of accidents.
They determine in a lower court, sitting with the powers
of a private judge, all mining litigation with respect to
concessions, measurements, etc., as well as disputes between
employer and labourer. They are assisted by a mining
engineer, surveyor, or an expert. From the decisions of the
territorial mining functionaries, appeal may be made to the
Supreme Government or to the Supreme Court of Justice, as
the case may be.
Chapter VI. : On Persons Capable of Acquiring Mining Pro
perties. — Any Peruvian citizen or foreigner capable of owning
property in the Republic may acquire mines in the form
established under the present Code, excepting the function
aries directly intervening in the formation of the mining-
titles or exercising local authority. Employes and mining
labourers cannot acquire mining property by means of
denouncement unless it be for their employers, except in
places located at more than 10 kilometres' distance from the
nearest point to the latter' s property.
Chapter VII. : On the Proceedings to be Observed in Mining
Petitions. — Any person or company wishing to acquire a mine
in accordance with the Code shall apply in writing to the
Deputation or Delegate, mentioning his name, his nationality,
and abode, and affording a description of the mine asked for,
so that it may be recognized with certainty at any moment ;
adding the name he may wish to give it, the provisional
number of claims whose assignment he desires, and the name
of the neighbours or nearest contiguous mine-owners. He
will pay the sum of 5 sols ( = 10s.) as rights of denouncement
at the time of the presentation of his petition.

328 PERU OF THE TWENTIETH CENTURY
The Deputy Delegate, or Secretary, inscribes the denounce
ment in the Register, and gives to the petitioner a certificate
of the petition indicating all the particulars, as well as the
day and hour upon which the said petition was submitted.
Within three days the Delegate shall issue a decree respecting
the denouncement, and shall cause the respective advertise
ments and placards to be published. The admission of a
denouncement by the Delegate gives the right of occupation
provisionally of the solicited claims from the date of their
inscription in the Delegation Register. No other denounce
ment respecting the same ground, water, slags, mine dumps,
or deposits will be admitted, should no petition against the
concession have been presented.
Within thirty days following the official registration of the
petition, this is to be advertised by means of placards in the
Delegation's office doorway, and in the newspaper published
at the place of residence of the Delegation, as well as in that
in the Capital of the Republic, designated for that purpose by
the Superior Mining Council.
Possession shall be applied for after the expiration of the
third month and before the end of the fifth month. During
these five months objections can be made, examined, and
decided upon. The possession is given on the ground by the
Delegate, assisted by the Secretary and the official engineer
or surveyor, who measures the land, stakes the claims, and
presents a report accompanied by a full plan. The titles thus
completed are sent to the Mining Department for approval,
and after that the mine is inscribed in the General Mining
Register. Articles 141, 142, 143 to 151 deal with the water-supply
and concessions for generating power. They are extremely
reasonable, and there is no tax on these concessions.
It is not deemed to be necessary to deal with any of the
other chapters of the Mining Code ; what has been set forth
previously is sufficient to demonstrate how easily mines can
be acquired in the Republic of Peru in accordance with
prevailing terms of the Code.
The Supreme Government, through the Department of
Fomento (Promotion), directly supervises the adjudication
of mining concessions of all classes, and the Minister of
Fomento has in his charge the formation of the " Padron

MINING CODE 329
General de Minas," which is the official Register for the
inscription of all concessions.
The importation of machinery, supplies, tools, etc., for use
in mining operations, is exempt from Custom House duties,
and the same is the case in regard to coal, lumber, dynamite,
mercury, and all material necessary for the construction and
maintenance of roads.
In 1902 the Corps of Mining Engineers was created for the
purpose of the further development of Peruvian mines by
exploring and making known, by means of Commissions, new
mineral districts, describing also the geological formations
and magnitude of the lands explored. The results of these
important works are published in special pamphlets profusely
illustrated with photographs and maps, and which may be
obtained, usually without charge, but at any rate, at a very
small price, from the Government of the Republic at Lima,
Peru ; or by communicating with the Bureau d'Information
de la Republique de Peru, 6, Boulevard de la Madeleine, Paris.
Law relating to Colonists Arriving.
A Presidential Resolution, dated June 17, 1910, was issued,
through the Ministry of Fomento (Promotion), concerning
sanitary measures for the protection of the health of those
who come as colonists. The resolution states that in all con
tracts of companies or individuals with the Government to
establish colonies, the following regulations must be complied
with :
First. — Colonists, before embarking, must be examined by a
physician selected by the Peruvian Consul, who will give
health certificates, which the Consul will legalize free of
charge. Second. — Those who have passed this examination must then
be vaccinated.
Third. — The Peruvian maritime sanitary regulations must be
complied with during the passage from port of origin to Peru.
Fourth. — On arrival, colonists will have to present their
certificates to the Medical Inspector boarding the vessel.
Fifth. — The contractors are obliged to engage a physician and
to supply medicines, as their contract declares.
Articles six, seven, eight, and nine refer to the location of the
colonists' houses on dry land, with an ample running water-

330 PERU OF THE TWENTIETH CENTURY
supply near by, and with doors and windows properly
protected by wire-screens.
Tenth. — A hospital, also wire-screened, must be established
in each colony, with a pharmacy, containing the necessary
drugs and remedies.
Eleventh. — The colony physician will not only have charge of
those who are ill, but also of the general hygiene of the com
munity ; the inspection of food and drink ; and the prevention
of infectious diseases, particularly of those most frequent in
tropical regions. He must be supplied with the necessary
medicines and apparatus, and also attend to the vaccination
and re-vaccination of the colonists.
New Rubber Tax.
By Executive Decree, dated May 10, 1911, a new law
governing the exportation tax on crude rubber was promul
gated. It provides that all rubber exported (Jebe fino; sernambe
de jebe ; caucho ; and sernambe de caucho) shall pay an 8 per
cent, ad valorem tax, based on the quotation prevailing on the
Liverpool Market. Settlement of this tax may be effected in
exchange on London, Paris, and New York at ninety days'
sight at the rate of exchange ruling on the day of exporta
tion. Law in Connection with Accidents to Workmen,
Promulgated on January 20, 1911.
The employer is responsible for all accidents caused to his
workmen and employees whilst performing their duties in
respect of the following industries :
Production and transmission of electric, steam, gas, or other
kind of power-producing mechanical energy ; electric or gas-
lighting services ; fixing, repairing, and dismantling of electric
or lightning conductors; fixing, maintenance, and repairing
of telegraph and telephone lines; naval construction and
repairing ; construction, repairing, maintenance, and working
of railways, bridges, and roads; land-transportation and
water-transportation on the rivers or lakes, provided it is done
by mechanical traction ; agricultural work, where other than
human power is utilized, only in respect of the workmen
exposed to the danger of the engines ; loading and unloading

WORKMEN'S COMPENSATION 331
wharf-companies, with mechanical apparatus worked by other
than human power ; mines, where more than thirty-five men
are employed ; building, repairing, and demolition companies ;
factories, workshops, and industrial establishments. In works
carried out for account of the Government the contractor will
be the only person responsible.
This Law only refers to workmen and employees in receipt
of not more than £120 per annum.
All employers of any kind of industry, and no matter what
the salary of the victim, are obliged to render medical aid to
their employees in regard to the accidents which may occur to
them. When the accident causes death the employer is obliged
to pay the funeral expenses, and deposit an amount equal to
two months' salary of the victim.
Indemnification .
The workmen and employees who have been the victims of
accidents have a right to the following indemnifications :
(1) If absolutely and permanently incapacitated, to a payment
for life equal to 33 per cent, of the annual salary ; (2) if
partially and permanently incapacitated, to a payment for
life equal to 33 per cent, of the difference between the salary
which was paid previous to the accident and the inferior
salary which would be received on account of the accident ;
(3) if absolutely and temporarily incapacitated, to a payment
equal to 33 per cent, of the salary he was in receipt of, at
the time of the accident, during the time that he cannot work ;
(4) if partially and temporarily incapacitated, to a sum equal
to 50 per cent, of the difference between the salary previous
to the accident and the inferior salary he would receive until
completely cured; (5) in the event of death the employer is
obliged to make certain payments to the relatives of the
victim ; (6) the indemnities will be increased by 50 per cent, if
the accident is caused by the lack of the respective protective
apparatus. Insurance.
The employer may insure, individually or collectively, his
employees without making any deduction from their wages,
instead of paying the indemnifications referred to, provided

332 PERU OF THE TWENTIETH CENTURY
the amount which the victim receives is not less than that
stated in this law.
The Executive will form an Insurance Company, guarantee
ing the interest of 8 per cent, per annum on a capital of
£20,000, to be employed exclusively in insuring against
accidents to workmen and employees.
Consular Regulations.
Packages must be plainly marked with either a stencil or a
brush. A Consular invoice, in quadruplicate, is necessary, and
must be made in Spanish.
Goods may be consigned either direct or to order.
Callao is the only port where explosives, firearms, revolvers,
etc., may be landed, unless special permit has been obtained
by consignee.
The Consul keeps one copy of the bills-of-lading and three
copies of the Consular invoice.
The gross weight, in kilogrammes, should be marked on
every package (1 kilogramme = 2 -2046 pounds), and must
correspond with the gross weights stated in bills-of-lading
and Consular invoices.

Peruvian Cabinet Changes, September, 1911.
Upon the eve of going to press with the final pages of this
volume, notification has been received of important changes
in the Peruvian Cabinet, and I am indebted to Senor Don
Eduardo Lembcke, the Charge" d' Affaires of the Legation and
Consul-General for Peru in London, as well as to Senor Don
Carlos Larrabure y Correa, Chief of the Oficina de Informa-
ciones Imigracidn y Propoganda del Gobierno del Peru, at
Paris, for the following list of the new Ministry :
Prime Minister and Minister of Justice and Public Instruc
tion : Senor Dr. Agustin Ganoza.
Minister for Foreign Affairs : Senor Don German Leguia y
Martinez. Minister of Home Affairs and Police : Senor Dr. Juan de
Dios Salazar y Oyarzabal.
Minister of Finance and Commerce : Senor Dr. Agustin
de La Torre Gonzales.

PERUVIAN CABINET 338
Minister for War and Marine : Senor Don Juan Manuel de
La Torre.
Minister of Industry ("Fomento"): SeSor Dr. Daniel Castillo.
Dr. Agustin Ganoza, President of the Cabinet and Minister
of Justice and Public Instruction, was born at Trujillo, and
he had previously served under President A. B. Leguia as
Minister of Government. He has also acted with great
distinction as President of the Chamber of Senators, where he
has sat as representative of the Department of La Libertad.
The eminent career of Senor Don German Leguia y
Martinez, Minister of Foreign Affairs, has already been given
in the earlier pages of this volume (see pp. 26, 27, Chapter III.).
Dr. Juan de Dios Salazar y Oyarzabal, Minister of Govern
ment and Police (Minister for Home Affairs, etc.), is a
famous lawyer, and sits as Deputy in the House of Congress
for Jauja, where he was born. He has filled several im
portant public positions, and latterly was Secretary of the
Junta Electoral Nacional (National Electoral Council).
Dr. Agustin de La Torre Gonzales, Minister of Finance
and Commerce, is also a prominent lawyer connected with
the Supreme Courts of Justice at Lima, and formerly acted
as Minister upon several occasions. He is also an ex-President
of the High Court of Exchequer.
Don Juan Manuel de La Torre was born at Cuzco, and
represents one of this Department's electoral divisions in
the House of Deputies. He haB acted with conspicuous
ability as President of this last-named Chamber during the
Preliminary Council sittings held this year.
Dr. Daniel Castillo, Minister of Industry (" Fomento "), is
a highly distinguished advocate, born in Lima, and sits in
the House of Deputies as representative of the Province of
Pomabamba.

ESTIMATES FOR THE YEAR 1912.
Revenue  £P3,209,237
Expenditure  2,879,924
Surplus  329,313
The Revenue is estimated as follows : Customs (maritime),
£P201,582; Customs (rivers), £P260,000 ; Contributions,
£P669,550; monopolies, £P601,957; fiscal wharfs and
piers, £P14,859; various rentals, £P194,289; telegraphs,

334 PERU OF THE TWENTIETH CENTURY
£P30,000; posts, £P97,800; Contributions (Peruvian),
£P12,000 ; Bureau of Deposits and Consignments, £P6,500 ;
Cereal Deposits at Bella Vista, £P10,700; and stocks
£P1110,000.
RESUME OF PERU'S COMMERCE FOR THE THREE YEARS
1908-1910 INCLUSIVE.

1910.

1909.

1908.

ExportsImports

£P.
6,408,282
4,631,280

£P.
6,492,670
4,298,627

£P.
5,478,9415,311,973

11,039,562

10,791,297

10,790,914

IMPORTS.

Year.

Via the Amazon.

Via the Pacific.

£P.

£P.

1902 

250,928

3,816,615

1903 

298,285

4,940,698

1904 

570,683

4,803,954

1905 

560,027

4,370,772

1906 

639,724

3,797,669

1907 

715,797

3,786,655

1908 

371,275

3,485,096

1909 

482,012

3,177,355

Among articles imported into Peru during 1909, having a
value in excess of £P10,000, were the following: Minerals
and metals, £P566,741 ; textiles (cotton), 493,885; steam
boats, 274,248 ; wheat, 269,067 ; textiles (woollen), 201,624 ;
mineral coal, 194,101; lumber, 192,502; machinery and
parts, 171,953 ; drugs, 146,885 ; stones and earth, 133,825 ;
paper, etc., 116,319; flax and jute, 93,663; rice, 84,015;
unspecified articles, 79,401 ; foodstuffs, 78,502 ; wines and
liquors, 75,993; petroleum, 58,929; textiles (silk), 57,358;
boots, 55,854; wax candles, 51,773; thread, 49,063; pre
served and dry fish, 44,450; vegetables and vegetable sub
stances, 41,387 ; hats, 39,270 ; cereals, 38,852 ; oil (other
than petroleum), 35,775; perfumery, 30,406; preserved
butter, 30,124 ; arms and accessories, 29,518 ; fruits, 29,108 •
carriages, 27,892; instruments and apparatus, 27,654; pre-

1911 STATISTICS

335

served milk and cream, 26,939 ; ordinary soap, 24,931 ; fresh
and preserved meat, 24,260 ; paints and varnish, 24,019 ;
rope, 23,799; dyes, 22,120; jewellery, 22,034 ; salt, 16,152 ;
biscuits, 16,059 ; tobacco, 15,270; sugar, 14,762 ; sweets and
confectionery, 10,611.
The Customs Revenue for 1909 amounted to £P4,298,627,
as follows :

Customs House.

Value of Imports.

Per Cent.

CallaoIquitos 
Mollendo 
Salaverry 
Paita 
Eten 
Pacasmayo ...
Pisco... ... 
Ilo 
Leticia 
Buena Vista
From other Customs

£P.
2,709,321 477,468473,914 182,565134,791110,344106,671 86,626 8,306
4,544 2,0092,068

63-03 11-1011-03 4-25 3-142-562-482-200-200-110040-04

4,298,627

100-00

It is with considerable satisfaction that British readers will
observe that England occupies the premier place upon the
list of imports into the Republic. The figures stand as follows :

Country.

Value of Imports.

Per Cent.

England 
United States
Germany 
Belgium France Chile 
Italy ...
Australia 
Hong-Kong ...
Spain...
Ecuador 
East Indies ...
Portugal 
China Other Countries

£P.
1,567,898 846,127687,233247,325 195,597 182,202150,711117,864 90,92152,51933,982 31,84328,80920,24545,369

36-47 19-7315-98 5-754-53
4-23 3-502-74 212 1-22
0-79 0-74
067 047 1-06

4,298,627

100-00

336 PERU OF THE TWENTIETH CENTURY

If the various totals of Peru's trade with Great Britain,
including England and her Colonies and India, be added, we
find that the considerable total of £P1,808,526— or, say,
42-07 per cent, of the whole of the Republic's foreign Import
Trade — is reached.
The principal imports from Great Britain have included :
Textiles of cotton, textiles of wool; coal; machinery and
accessories ; explosives ; hemp and jute and manufactures ;
drugs; stones and earth ; yarn and thread ; vegetable products;
boots and shoes ; hardware ; wines and liquors ; milk and
dairy products ; paper and manufactures ; rice.
The principal imports from the United States have included :
Machinery ; wood ; vehicles ; tar, pitch, etc. ; drugs ; stones and
earth ; lard ; paper and manufactures ; hardware ; arms and
ammunition ; oils ; textiles (cotton, wool, silk, and others) ;
meats ; breadstuffs, etc. EXPORTS.

Customs House.

Value of Exports.

Per Cent.

£P.

Callao 

1,516,009

23-35

Iquitos

1,029,708

15-85

Mollendo

591,593
9-12
Paita 
461,881
7-11
Salaverry
456,278
7-02
Pisco ...
371,546
5-72
Eten 
307,927
4-74
Tambo de Mora
247,772
3-81
Cerro Azul . . .
188,719
2-90
Supe 
185,544
2-85
Huanchaeo ...
169,287
2-60
Talara
146,623
2-25
Agencia Aduanera
122,239
1-88
Huacho
118,507
1-82
Chancay
88,063
1-35
Samanco
71,849
1-10
Chimbote
67,036
103
Casma
63,244
097
Puno ...
51,382
0-79
Pacasmayo . . .
51,159
0-78
Madre de Dios
40,724
0-62
Santa
32,536
0-50
Huarmey
28,524
0-44
Lomas
23,770
0-36
Other Customs Houses
60,657
0-94
6,492,670
100-00
1911 STATISTICS

337

As with the Imports, so with Exports, does England stand
first in the Republic's trade, as the following analysis of the
commerce for 1909 (the latest information which is available)
clearly proves :

Country.

Value of Exports.

Per Cent.

England United States 
Chile 
France 
Germany ... 
Bohvia
Japan ... 
St. Lucia (B.W.I.) 
Spain... ... 
Belgium ... 
Other Countries

£P.
2,672,540 1,495,622 851,544539,140
350,092
203,038 88,038
70,36644,383
42,192
137,447

41-17 23041311 8-305-393131-321-08
0-68
0-64 214

6,492,670

100-00

The subjoined articles exported relate to values exceeding
£10,000 in each case : Cotton, corn, and cotton waste,
£P1,245,599; sugar, 1,159,099; rubber and resin, 1,134,557;
metals, 1,037,592 ; minerals, 600,588 ; wool, 394,346 ; guano,
155,224; petroleum, 151,676; hides and dried hides, 131,497;
hats, 92,800 ; cocaine, 60,287 ; rice, 59,908 ; cotton goods,
36,850 ; vegetable plants, 31,701 ; vegetables and vegetable
substances, 22,206 ; coffee, 16,087 ; live animals, 12,941 ;
unspecified articles, 12,397 ; manufactured metals, 10,554.

INDEX

Acari, 234
Accidents to workmen, 330-332
Acomayo, 41
Adams, Franklin, 21
Adams, Mrs. Harriet C, 21
Agricultural machinery, 147, 263
Agriculture, 146-192, 319
National School of, 33, 95, 103
Almagro, Diego de, 1, 12, 14
Amazon, 3
Amazon and Pacific Railway, 194
River, 3, 4, 6, 12, 80, 128, 187,
221, 227, 228, 243, 262
Steam Navigation Com
pany, 243
Amazonas, Department of, 40, 41,
182
American Bridge Company, 200
Amity, Treaty of, 17
Ancachs, Department of, 40, 41,
187
Ancon, 118, 160, 206-208, 226
Ancon Railway, Lima, 96, 226
Andahuailas, 41, 234
Andes, 3, 7, 226, 229, 243, 279, 288
Anglo-American Church, 134
School, 97
Anglo-Peruvian Debt, 68
Angove, Josiah, 254
Anta, 41, 180
Antimony, 285
Antofogasta - Bolivia Railway, x,
219, 220
Apucanachuay, 8
Apurimac, Department of, 40, 41,
234
River, 234
Aquiri River, 6
Arbitration Award, King of Spain,
17
Area, superficial, 41, 42
Arequipa, Bishop of, 137, 142, 144,
145, 302
Cathedral, 142-145, 302

338

Arequipa, city of, 7, 8, 21, 43, 56,
123, 198, 199, 201, 203, 205,
261, 262, 292, 300-305
Department of, 3, 40, 51, 178,
187, 300
Electrical Company, 304
Tramway Company, 304, 305
University, 93, 301, 303
Argentina, 13, 17, 18, 60, 81, 103,
180, 195, 249
Arica, vii, 31, 160
Arica-La Paz Railway, x, 203, 204
Arica and Tacna Railway, 68
Armaments, 50
Arms and accessories, 334
Army, 48-53
Army and Navy, 30, 48-53
Art and literature, 98-103
Assurance companies, 24
Asylums, 115
Atahualpa, 11
Athenffium, Lima, 33, 101
Atocsayco, 179
Australia, 242
Australian wheat, 187
Aviation, 63, 64
League, 64
School of, 63, 64
Ayacucho, city of, 302
Department of, 40, 41, 110,
178, 180
Aymara Indians, 13
Aztecs, 12, 14
Backus and Johnson's Brewery,
256, 316
Balboa, Vasco Nunez de, 1
Baldwin Locomotive Works, 214
Balta, Jose, 148
Balta, President, 70
Bank, Deutsche, 304
Bank, German Transatlantic, 73,
87, 88, 303
Italian, 87, 88, 261, 304

INDEX

389

Bank, London, of Mexico and South
America, 75, 87, 88, 303, 304
National City, of New York, 75
of Peru and London, 75, 87,
88, 303
Banks, 71, 73, 75, 87, 88, 89, 261,
303, 304
Savings, 87, 88
Banque de Paris, 73
Banque Franijais, 73
Barber Steamship Company, 242
Bard, Dr. H. E., 98
Barley, 187
Barlow, 254
Barranco, 117
Basadre, Dr. Enrique C, 26, 29,
30
Beans, 122
Beauclerk, William N., 36
Beetles, 10
Belgium, 335, 337
Bella Vista, 118
Benevolent Society, Lima, 115
Berninzoni, Senor, 261
Bielovucich, Juan, 64
Billinghurst, William, 119, 120
Bingham, Professor Hiram, 20
Birmingham Chamber of Com
merce, 264
Biscuits, 256
Bishop .Blair, 133, 134
Bishoprics, 137
Bismuth, 285, 292
Blair, Bishop, 133, 134
Blume, J. C. F., 96
Board of Health, 32, 54
Lima, 56
Medical, 55
of Vaccination, 55
Bolivar, Sim6n, 16, 113, 234
Bolivia, 8, 13, 17, 18, 24, 60, 62,
181, 182, 188, 192, 203, 217, 268,
337
Bolognesi, Colonel, 111
Booth Steamship Company, 248
Borax, 285, 292
Boundaries, 8, 16
Boundary Commission, 19
disputes, 17
Limits Section, 33
Boves, 16
Braggi, Cesar, 148
Brazil, 8, 17. 18, 60, 81, 103, 149,
184, 190, 192, 195, 260
Breweries, 256, 316
Bridges, railway, 200, 201,208-210,
213, 214, 226
Brills, 216

British capital, vii
Consul, 292
Consul General, 36, 124, 125,
311
locomotives, 214-216
manufacturers, 149, 152, 214-
216, 254. 259, 261, 269
register of, 271
British Trade Journal, 265
Broggi, Caesar, 260
Brooks and Doxey, 254
Bubonic plague, 54
Buenos Aires, 56, 62
Cab fares, 113
Cabinet, Peruvian, 332-33t!
Cable companies, 60
Cajamarca, city of, 56, 57
Department of, 40, 178, 180
Calca, 292
Caldaron, Dr. F. G., 95
Caldera, ix
Californian wheat, 187
CaUao, Bank of, 87
Department of, 40
port of, 6, 8, 55, 64, 80, 81, 117,
118, 160, 193, 195, 206-208,
236, 238, 239, 241-244, 247-
250, 294-300, 332, 335, 336
Cammell, Laird and Co., 240
Canal, Panama, viii
Canas, 178, 180
Candauio, Don Carlos y, 34
Candamo, President, 24, 194
Candarave, 7
Candles, 225, 334
Cane-sugar cultivation, 161, 163,
167
Capital, British, vii
foreign, vii
invested in railways, 197
Capitals, 41
Carabyllo, 227
Caraz, 223
Carceres, President, 73
Cardiff, 242
Casalpaco, 224
Casapalta smelter, 285
Cascajo, 288
Casement, Sir Roger, 311
Casrna, 336
Castillo, Dr. Daniel, 333
Castilloa Elastica, 8
Catay, 6
Cathedral, Arequipa, 142-145
Lima, 110, 138, 139 -
Cathedrals, 110, 138, 139, 142-145
Cattle, 178, 180

340 PERU OF THE TWENTIETH CENTURY

Cavero, Dr., 29
Central Railway, ix, 194, 195, 206-
211, 224, 225, 227, 285, 290, 292,
308
Cerro Azul, 160, 175, 336
Cerro de Pasco mines, 92, 224, 258,
285, 288-291
Railway, 226, 233, 245
town, 56, 123, 234, 291,
292
Chailley, Henri, 64
Chala, 160
Chamber of Commerce, Birming
ham, 264
Lima, 102
Chancay, 160, 175, 227, 232, 233,
336
Chanchamayo, 184
Charge- d' Affaires and Consul-
General, 34
Charities, 115, 116
Charles V. of Spain, 12, 15, 94
Chaupiohaca, 210
Chavez-Dartnel, Jorge, 63
Chichayo, 41, 183
Chilchas Indians, 12
Chile, vii, 13, 18, 23, 60, 62, 81,
174, 180, 182, 184, 187, 195,
242, 247, 248, 249, 255, 268,
335
war with, 23, 29, 43, 46,48, 66,
100, 117, 118, 119, 273
Chilete- Yonan Railway, 235
Chimbote, 160, 288, 290, 336
Chimbote Coal and Harbour Syndi
cate, 235
Chimbote-Reeuay Railway, 235
Chimbote - Tablones Railway, 195,
223
China, 184, 242, 249, 254
Chincha Islands, 69, 274
Chinese, 42, 128, 318
exclusion of, 128, 318
Chira River, 3
Chorillos, 117, 118, 230, 231
Chosica, 208, 298
Chumbivilcas, 180
Chunchos, 21
Church, Anglo-American, 134
English, in Peru, 134, 135
Churches, 110, 115, 131-145
riches of, 140, 141
Cigars and cigarettes, 185
Cinnabar, 226
Civil Code, 321, 322
rights of foreigners, 320, 321
Clement, Colonel, 51
Clerck, Heremati, 297

Climate, 5, 108, 109, 129, 161, 163,
185, 244, 298, 299
Coal, 234, 285, 287, 293, 326
Coast-line, 1, 3, 5, 236
Coca, 181, 182
Cocaine, 182, 279-282, 336
Cockfield, W., 204
Cocoa, 182, 215
Code, mining, 286, 287, 323-330
Coffee, 337
Coinage, 90-92
Colombia, 9, 17, 19, 60, 66, 249,
258, 287, 312, 313
Consul-General of, 312
Col6n, 60
Colonies and settlements, 319, 320
Colonists, laws of, 329, 330
Commerce, foreign, vii
Commercial travellers, 263-265
Compania Sud-America de Vapores,
240
Companies, insurance, 83, 84, 85,
86
Concessionaire laws, 318, 319
Concessions, mining, 324, 325
Conference, Pan-American, 295
Congress, 44, 75, 78, 79, 190, 194,
319-320
Conquerors, Spanish, 11
Conquest of Peru, 1, 2
Conscription, 50
Constitution, 43
Consular regulations, 332
reports, 37, 292
Consul, British, 292
Consul-General, British, 36, 124,
125, 311
Japanese, 125
Peruvian, New York, 38, 102
United States, 36, 293-295
Contamana, 6
Convencion, 41, 184
Convention of 1905, 17
Copiap6, ix
Copper, 215, 224
Cordillera, 4, 7, 8
Corn, 336
Coropuna, 7
Corporation, Peruvian, ix
Corps of Mining Engineers, 329
Cortez Hernan, 12
Costa Rica, 268
President of, 23
Cost of living, 121, 122, 124
Cotobambas, 234
Cotton, 125, 171, 178, 224, 252-254,
336
Experimental Station, 175

INDEX

341

Cotton-seed, 175, 176
Council, Superior Mining, 328
Court sittings, 43
Creusot, 74
Cricket, 130
Cuba, 149, 267
Customs House, 66-68, 78-81, 244,
245, 250, 255, 276, 287, 329, 335,
336
Cuzco, City of, 21, 56, 198-200, 202,
205, 226, 227, 234, 293
Department of, 8, 40, 178, 181,
184, 187
Debt, Anglo-Peruvian, 68
internal, 66, 67, 74, 75
public, 65, 74, 83, 195
Urribarren, 68
Delimitation Commission, 17, 19
Demarcation Treaty, 17
Departmental Boards, 45
Department, Postal, 57, 60, 61, 62,
63
Departments, political, 40, 41
Deputies, 45, 190
Des Gras, Charles Louis, 35
Deutsche Bank, 73, 74, 304
Devil's Paradise, 314
Diplomatic representatives, 34, 35,
36
Diseases, 54, 55, 56
District Councils, 45, 83
Districts, 41
military, 51
mining, 287, 288, 292
sheep, 178
Docks, 239, 250, 297
Domestics, 123
Dos de Mayo, Battle of, 29
Drake, Francis, 296
Drugs, 334
Duncan, Fox and Co., 263
Dynamite, 287
Earthquakes, 8, 108, 109, 118, 185
Ecuador, 13, 16, 17, 19, 24, 31, 60,
62, 220, 242, 244, 268, 335
Education, 93-96, 97, 98
Minister of, 30
primary, 98
Educational Commission, 97
Edwards, Senor Agustin, 31
Ego-Aguirre, Dr. Julio, 27, 28, 34
Egyptian wheat, 186
El Alto, 198, 212, 216
Electrical industry, 257-261, 303
trust, 258

Emigrants, 124, 125, 126, 127, 128,
129
Empire, Inca, x, 12, 13
Employment, 123-126, 127
English Commercial School, 97
Church in Peru, 134, 135
language, 98
Estimates, 333, 334
Eten, port of, 80, 183, 236, 335, 336
Europeans, 42
Exchange, rate of, 309, 310
Expenditure, national, 78, 79
Experimental Station, Sugar, 148,
260
Cotton, 175
Exploration parties, 18, 19, 20, 21, 22
Explorers, women, 20, 21
Exports and imports, viii, 81, 147,
148, 174, 176, 177, 181, 188, 190,
245, 274, 282, 290, 834-337
Factories, 176, 181, 252-255
Falkland Island, 133, 178
Fauna, 9
Fawcett, Colonel, 18
Fawcett, Preston and Co., 158,
159, 260
Feehan, J. H., 209
Ferrenafe, 183
Ferrobamba, 234, 235, 260
Filibusters, North-American, 16
Finance Minister, 31, 74, 75, 78,
332, 333
Finances, 25, 65-81, 89
Fish, 9, 122, 334
Flax and jute, 334
Flora, 9
Flores, Dr. Antonio, 30
Flour, 255
Fomento (Promotion) Department
of, 32, 33, 102, 174, 229, 272
Minister of, 32, 33, 102, 229, 333
Ministry, 174, 229, 323, 328,
329
Foodstuffs, 334
Football, 130
Foreign Affairs, Minister of, 26, 31,
33, 332
capital, vii
commerce, vii, 81
Office, 264, 265, 312
trade-marks, 322, 323
Foreigners' civil rights, 43
property of deceased, 321
Forests, 3, 8, 10
Forga, M., and Sons, 303
France, 81, 97, 174, 181, 185, 248,
303, 335, 337

342 PERU OF THE TWENTIETH CENTURY

Freights, 122, 199, 203, 209, 215,
220-224, 257
French Military Mission, 48
Fresh meat, 122, 335
Frontiers, 8, 16
Fruit, 9, 334
Ganoza, Dr., 29
Ganoza, Dr. Agustin, 332
Gasco, Pedro de la, 12
Gauges, 193, 196, 198, 207, 213
General Electric Company (U.S.A.),
216, 257
Geographical Society, Lima, 33, 42,
100
Royal, 18, 20
Washington, 33
Germans, 12, 268
German Transatlantic Banks, 73,
87, 88, 303
Germany, vii, 81, 174, 181, 185, 247,
248, 303, 335, 337
Gibbs, Antony, and Co., 275
Giron, Francisco, 302, 303
Gold, 234, 284, 285, 290
Gonzales, Dr. Agustin de La Torre,
332, 333
Gordon, John, 260
Government, 43, 44, 45
local, 45
Grace Brothers, 242
Grace, W. R., and Co. 75, 263, 272
Gradients, 200, 201, 207, 213, 234
Granada, kingdom of, 12
Grau, Admiral, 111
Great Britain, vi, vii, 181, 303, 335,
337
Grey, Sir Edward, 264
Guadalupe National College, 29, 33
Guafiape, 6
Guano, 3, 5, 68, 148, 163-166, 270,
273-276, 323, 325, 336
" Guano Affair," 73, 74
Guaqui, 4, 198
Guaqui-La Paz Railway, ix, x, 195,
212, 220
Guatemala, 268
Guatemoc, 12
Guayaquil, 242, 244
Gubbins, J. Russell, 314
Gulf Line Steamship Company, 242
Habich, Dr. Edmundo N. de, 32,
33
Hachatayhua, 7
Hague Tribunal, 17
Hamburg, 190

Hamburg- American Steamship
Company, 241
Harris, Sir Edward, 35
Harvard University Observatory,
12,95
Hauck, Ottomar von, 128
Health, Board of, 32
Helps, Sir Arthur, 283
Hetheringtons, 254
Hides, 180, 181, 215, 245, 336
Higginson, DonEduardo, 38, 39, 102
Historical Institute, 33, 101
Hogs, 256
Holdich, Sir T. H., 18
Home Affairs, Minister of, 44, 332
and Police, Minister of, 332
Honduras, 60, 268
Hope, Pierce, 217
Horse-racing, 129
Hospitality, 114, 302
Hospitals, 115, 330
Hotels, 121, 300
House-rents, 122
Howard, Henry Clay, 35
Huacho, 160, 227, 232, 233, 336
Huallaga River, 4, 128, 262
Huanachuco, 181
Huancabamba, 41, 184
Huancavelica, Department of, 40,
41, 226
Huancayo -Oroya Railway, 235
Huancayo Railway, 194, 197, 206,
207, 208, 209, 226
Huanchaco, 336
Huanta, 181
Huanuco, city of, 56
Department of, 40, 41, 146, 147,
181
Huara, 227
Huarmey, 336
Huaynaputina, 7
Huggim, J., 288
Humboldt, Baron von, 283
Humphreys, E., and Co., 263
Hydrographic Office, 22
lea, city of, 56, 253
Department of, 40, 41, 43, 229,
288, 290
Igaraparana River, 6
Ilo, port of, 9, 55, 80, 236, 335, 336
Immigrants, 42
Immigration laws, 319
Imports and exports, viii, 81, 147,
148, 170, 181, 183, 184, 187, 253,
255, 334-337
Inambari River, 20, 190
Inca Cotton Company, 317

INDEX

343

Inca Empire, x, 12, 13
ruins, 306
Inclan, Colonel, 29
Independence, War of, 15, 66
Indian races, 13
Information Bureau, Paris, 33, 34,
35, 329
Insects, 10
Institute, Historical, 33, 101
Technical and Industrial, 102
Insurance, 82, 83, 84, 85, 86, 331,
332
companies, 83, 84, 85, 86
Investments, British, 267, 289, 307
United States, 266-268, 288, 307
Iquitos, port of, 51, 62, 80, 190, 227,
228, 243, 246, 251, 335, 336
Steamship Company, 245
Irrigation, 148, 161-163, 183, 186,
259, 262, 319
Islands, 3, 5, 6
Islay, Province of, 95
Italian Bank, 88, 261, 304
Italy, 97, 176, 263, 303, 335, 337
Jaen, 41, 182, 184, 185
Jamaica, 147
Japan, 147, 242, 248, 249, 254, 337
Japanese, 42, 124, 125, 126, 127,
256, 257
Consul-General, 125
Steamship Company, 242
Jauja, 41, 292
Jerningham, Hon. W. G. S., 36
Jerome, Lucien Joseph, 36, 37
Jeveros, 184
Jimenez, President Ricardo, 23
Jockey Club, 108, 129
Jones, V.C, Captain H. M., 36
Juliaca, 20, 198 201
Junin, Department of, 40, 178, 180,
292
Justice, Minister of, 30, 332
King of Spain's Arbitration Award,
17
Kinley, Professor, 295
Klinge, Gerardo, 175
Koppel, Arthur, 228
Kosmos Company, 241
Labare, 6
Labour, 123, 177, 186, 190, 285, 286,
293, 318, 327, 330-332
Lake Titicaca Service, 195, 198,
212, 219
La Libertad, Department of, 40, 94,
178

Lama, Diego de, 277, 278
La Mar, 41, 292
Lambayeque, Department of, 3, 23,
40, 41, 183, 277
Lamport and Holt Steamship Com
pany, 242
Lancashire Dynamo Company, 216
Land, 186, 192
Landed property, 321
Land law, 43, 318-320
registry of, 321
La Paz, ix, x, 198, 246
La Punta, 117, 118, 299
Lares, 292
Larrabure y Correa, Dr. Carlos, 33,
332
Larrabure y Unanue, Dr. Eugenio,
27, 33, 96
La Torre, Don. J. M. de, 333
Lauri-Cocha Lake, 4
Law administration, 42, 43, 44
Laws, immigration, 42
mining, 323-330
Lead, 285, 292
Legation, British, 35
Peruvian, 34
United States, 36
Leguia, President Augusto B., 17,
23-26, 34, 57, 102, 176, 228
Leguia, Don E., 34
Leguia y Martinez, Dr. German, 26,
27, 332, 333
Lembcke, Don Eduardo, 34, 332
Lembcke, Don R. E., 34
Library, National Public, 100, 117
Light railways, 262
Lima-Ancon Railway, 96, 226
Athenaeum, 33, 101
Benevolent Society, 115
Board of Health, 56
Chamber of Commerce, 102
City of, 14, 16, 38, 62-64, 107-
120, 123, 146, 147, 193, 195,
206-208, 226, 232, 242, 257,
296
Department of, 40, 51, 93
electric trams (new), 232
Gas Company, 232
Geographical Society, 33, 42
Light, Power, and Tramways
Company, 230-232
Mayor of, 119, 120
Limantour, Jose Y., 25
Lima Railway, 230, 310
suburbs, 116-118
Tramway i Company, 231, 232
Water Company, 76
University, 33, 93, 102

344 PERU OF THE TWENTIETH CENTURY

Lim6n, port of, 6
Literature and art, 98, 103
Littoral Provinces, 40
Liverpool 147, 190, 228, 242, 245,
260, 330
Loans, 65-76
Lobitos Oil-fields, 278, 315, 316
Lobos de Adentro, 5
Lobos de Afuera, 5
Lockey, Joseph B., 94
Locomotives, British, 214-216
Lomas, district of, 288, 290
port of, 234, 336
London, 294
Bank of Mexico and South
America, 75, 87, 88, 303, 304
Looms, 252, 253, 254
Loreto, Department of, 19, 21, 33,
40, 41, 185
Los Andes, 57
Lucanas, 41, 234, 235, 288
McCulloch, H.A., 204, 205, 302
Machinery, 147, 149-156, 168, 169,
175, 176, 183, 187, 258, 259,
262, 263, 334
agricultural, 147, 263, 334
cotton, 175, 176, 303, 334
flour, 187
mining, 258, 285, 334
rice, 183, 334
sugar, 149-156, 168, 169, 258,
259, 262
McKnight, Joseph P., 95
McNeil, J., and Sons, 156, 158-160,
259
Madera River, 4
Madre de Dios River, 6, 20, 190,
227, 262
Magellan, Straits of, 239, 241
Maize, 122, 187
Manchester, 254, 255
Mantaro River, 262
Manufacturers, British, 149, 152,
214-216, 254, 259, 261
Marafion River, 46, 128, 188, 221,
228, 262
Marine Sanitary Service, 55
Markham, Sir Clements, 12, 13
Mason, John (New York), 260
Matches, 255
Matto, Dr., 33
Meat, 122
Medical Board of Health, 55
Medicine, National College of, 29
School of, 116
Meiggs, Henry, 229
Mercantile Exchange, 102

Merchants' Line, 242
Mercury, 285
Mexico, 12, 60, 100, 146, 189, 195,
242, 267, 268, 286, 287, 291
Mica, 292
Military Academy, 50, 52
Military districts, 51
law, 50
Mills, cotton, 252-254
sugar, 149-153
Minerals, 226, 227, 284-295
Mineral wealth, 283, 290 295
Mines, 227, 234, 235, 284-295
School of, 286
Mining Code, 286, 287, 323-330
Council, Superior, 328
districts, 287, 288, 292
Engineers, Corps of, 329
laws, 323-330
machinery, 258, 285, 334
Minister of Agriculture, 148
of Finance, 31, 74, 75, 78
of Foreign Affairs, 26, 31, 33
of Home Affairs and Police, 44
of Justice, 30
of Promotion (Fomento), 32,
33,96
Ministry, 26-32, 44
Mint, National, 92
Miraflores, Battle of, 23, 29, 117
Miranda, Francisco, 15, 16
Missionaries, 131-133, 137
Mission, French Military, 48
Misti volcano, 301, 305
Mollendo, port of, 80, 95, 190,
198-201, 219, 234, 236, 237, 246,
250, 251, 293, 335, 336
Molybdenum, 285, 292
Monopolies, 276, 285
Monroe Doctrine, v
Montana, 3, 8, 10
Montes, Colonel, 218
Moores, Lieutenant C. G., 229
Moquegua, Department of, 7, 40, 41,
292
Morales, Dr., 29
Morales, General, 16
Morgan Syndicate, 268
Morkill, W. L., 205, 223, 225
Morococha, 206-208, 224
Morona River, 6, 188, 262
Moss, Rev. A. M., 134
Mountains, 7
Municipal Boards, 51
Council, Lima, 75, 76, 119
Nanson, Lieutenant M. R., 20
Napo River, 6

INDEX

345

Narrow gauge railways, 196
Nasca, 3
National City Bank of New York,
75
College of Guadalupe, 29
of Medicine, 29
Guard, 51
Mint, 92
Public Library, 100-117
School of Agriculture, 33, 95-
103
Tax Collecting Company, 76,
77, 78, 79, 185
Navigation of rivers, 3, 6, 7
Navy, 46, 47, 48, 57
Navy and Army, 30, 46, 47, 48
Nepitas, 277
Newspapers, 255
New York, 190, 238, 242, 245, 260,
294, 330
New York and Peru Steamship
Company, 242
Nicaragua, 60
Nickel, 285, 292
Nitrates, 167, 276, 323, 325
North- West Railway of Peru, 232,
233
Norway, 248
Observatory, Arequipa, 305
Ocean currents, 5
Oil, 9, 175, 277, 278, 334
cotton-seed, 175
fields, 277, 278
olive, 9
Olea europcea, 8
Olives, 8
Ontaneda, Captain J. M., 22
Orellana, 12
Organization, sanitary, 54, 55, 56
Oroya-Huancayo Railway, 235
Oroya Railway, 194, 197, 206 208,
226, 227
Otuzco, 181
Oyanguren, Don Enrique, 31, 74,
75
Oyarzabal, Dr. Juan de D. S. y,
332
Pacasmayo - Guadalupe Railway,
195, 221, 222
port of, 57, 80, 160, 236, 335,
336
Province of, 41, 183
Pacific Mail Steamship Company,
237
Steam Navigation Company,
240

Paez, 16
Page, Mr., 209
Paita-Piura Railway, 195, 220, 221
port of, 55, 80, 221, 228, 236,
277, 335, 336
Palma, Ricardo, 100, 146
Panama, 1, 2, 31, 60, 174, 229, 237-
239, 241, 242, 246, 249, 267
Canal, viii, 35, 128, 188, 237,
238, 246, 266-268
Pan-American Conference, 295
Union, 21
Paper, 254, 255
Para, port of, 228, 243, 245, 311
rubber, 190
Parcels Post, 62
Pardo, Felipe, 295
Pardo, President Manuel, 52, 68, 70,
71, 158
Paris Information Bureau, 33, 34,
35 329
Parks, 107-109, 111-114
Pastaza River, 188, 262
Paucartambo River, 4, 8
Peckett, Bristol, 214
Perene Colony, 195
Perfumery, 255, 334
Permanent E xposition of Machinery,
102
Peru and London, Bank of, 75, 87,
88, 303
conquest of, 1, 2
Peruvian Amazon Company, 311-314
Cabinet, 332-333
Corporation, ix, 4, 72, 73
Cotton Manufacturing Com
pany, 195, 317
Pacific Railway, 235
Salt Company, 78
Steamship Company, 46, 237-
240
Petroleum, 277, 278, 285, 293, 324,
326, 334
Physical features, 1-6
Pierola, President Nicolas de, 48,
53
Pisco, 80, 160, 236, 335, 336
Pisco-Ica Railway, 69, 195
Pitt, William, 15
Piura, city of, 56
Department of, 3, 40, 51, 176,
277, 292
River, 3
Pizarro, Francisco, 2, 11, 12, 14,
100, 109, 110, 139, 302
Pizarro, Gonzalo, 12
Pizarro, General Jose R., 30
Piatt Brothers, 254

346 PERU OF THE TWENTIETH CENTURY

Police, 114, 298, 332
Population, 3, 41, 42, 95, 110, 299,
303
Ports and harbours, 3, 6, 8, 55, 57,
80, 95, 160, 190, 198-201, 219,
221, 228, 234-237, 243, 245, 246,
250, 251, 277
Portuguese, 12
Postal Department, 57, 60-63
Posts and telegraphs, 57, 59-63
Potosi, 92
Prado, President, 71
Prescott, 12
Press, the, 60, 63, 88, 99, 104-106
Private railways, 197
Processions, public, 141 145
Pro-Marine Association, 30
Promotion (Fomento), Department
of, 32, 33, 102, 174, 229,
272
Ministry of, 32, 33, 102,
174, 223, 229, 328, 329
Property, landed, 321
of deceased foreigners, 321
Provinces, 41
Littoral, 40
Provincial councils, 45, 46
Public Debt, 65, 74, 83
Works, Ministry of, 270, 287,
323
worship, 131-145
Puno, Department of, 4, 40, 178, 180,
198, 288, 292
Punta Gruesa, Battle of, 29
Puriis River, 6
Putumayo River, 6
rubber estates, 311-314
Quechua, 13
Querobamba, 235
Quesada, Gonzalo, 12
Quicksilver, 287, 292
Racing, horse-, 129
Railway construction, new, 226-235
Lima, 230
Railways, viii, ix, x, 193-235, 243
Arica and Tacna, 68
capital invested in, 197
light, 262
Recuay, 223
Red Cross Steamship Company, 242,
245
Registry of landed property, 321
Regulations, Consular, 332
Religion, 131-145, 283
Rentals, 122

Representatives, Diplomatic, 34, 35,
36
Resources, industrial, vii
Revenue, National, 77, 78, 276, 333,
334
Rice, 122, 182, 183, 184, 336
machinery, 183
Rimac River, 3
Rio de Janeiro, 62
Rivers, 3, 4, 5, 6, 128
navigation of, 3, 6, 7
Road-bed, 207
Roads, x, xi
Robertson, William Henry, 37, 295
Rolling-stock, railway, 160, 202,203,
214-216, 226, 261-262, 263
Rosele, Captain C. F. G., 22
Rothschild, N. M., and Son, 289
Royal Geographical Society, 18, 20
Mail Steam Packet Company,
240
Rubber, 8, 125, 126, 188-192, 226,
243, 244, 245
production, 191
Ruins, Inca, 306
Rumsby, E. J., 299, 300
Sailing vessels, 239, 248, 249
Salaverry, 80, 236, 335, 336
Railway, 195
Salt, 276, 277, 285, 293, 323, 325,
335
Salt Company, National, 78,276,277
Salt revenues, 80
Samanco, 160
San Crist6bel, 235
San Francisco, 237, 242
Sanitary organization, 54, 55, 56,
329, 330
San Lorenzo Island, 6
San Marcos, University of, 32, 93,
94, 100
San Martin, 16, 113
Department of, 40, 41, 182
San Miguel district, 292
Santa, 3, 334
Barbara estate, 150, 155
River, 3
Savan, 232
Savings Bank, 87, 88
Scenery, 7
School, Anglo-American, 97
English Commercial, 97
of Agriculture, National, 33, 95,
103
of Commerce (Technical), 95
of Medicine, 116
of Mines, 286

INDEX

347

Seasons, 108, 109, 129, 161, 163
Senate, 45
Sewerage, Callao, 300
Shafer, F. J., 235
Shearing, 178, 179
Sheep, 177-179
districts, 178
Shipping, 4, 46, 55, 236-251
Shops, railway, 203
Siam, 184
Sicuani-Cuzco Railway, 235
Sierra, 3, 4
Silver, 235, 284, 285, 288, 290
Simons and. Sons, 255
Smallpox, 56
Smelters, 285
Soap, 176, 188, 255
Soldiers, 48, 52
Sotil, Lieutenant, M.A., 22
Southern Railway, ix, x, 195, 198-
205, 227, 234, 246, 251, 302
Spain, 98, 99, 100, 335
war with, 15, 16, 48, 69
Spaniards, 42, 185
Spanish conquerors, 11
rule, x
Sports, 129, 130
Standard gauge railways, 196
Standfast, Rev. W. D., 97, 184
State railways, 197
Stations, railway, 199, 208, 212, 213
Steamships, 4, 46, 55, 236-251
Storms, 5
Suburbs of Lima, 116, 117, 118
Sucre, 16
Sugar, 122, 125, 126, 260, 335, 336
crop, 157
cultivation, 146-149, 161-168
estates, 150, 155, 157, 158, 159,
160, 166, 197, 262, 263
Experimental Station, 148
exports, 147, 222, 223
extraction of, 155, 156
machinery, 149-156, 168, 169,
258, 259, 262
mills, 149-153
Sullivan, S. H., 36
Sulphur, 285, 292
Supe, 160, 227, 336
Swan, Hunter, Wigham, and
Richardson, 239
Swayne, Henry, 155
Tacna, Department of, vii, 3, 29,
31, 40, 43, 181, 292
Talara, 277, 336
Tambo de Mora, 160
Tarma, 227

Taxation, 147-190, 264, 265, 287,
320, 322, 323, 325, 328, 330
Tax Collecting Company, National,
76-79, 185
Tax, rubber, 330
Technical and Historical Institute,
102
Board of Valuations, 102
Telegraph and posts, 57, 59, 60, 61,
62,63
Telegraphy, cost of, 59, 60
wireless, 46, 57, 58
Telephone companies, 56
Telephones, 56
Temperature, 5
Textiles, 252-254, 334
Theatres, 102, 103
Tielio, 206, 207, 208
Timber, 227
Tin, 215, 292
Tirapata, 20
Titicaca, Lake, 3, 21
Tobacco, 184, 185, 245, 335
Toltec, 13
Tonquini, 293
Toppin, Captain H. S., 20
Track, railway, 193, 195, 197, 198
Trade-marks, 269, 272, 322, 323
Tramways, 261, 298, 302, 304, 306
Trans-Andine Railway, 221
Transports, 47
Treaty of Amity, 17
Trees, 8
Tres Cruces, 8
Trujillo, 3, 56, 236, 302
Railway, 195, 222, 223
University, 93
Tumbes, Department of, 40, 41,
184, 277
River, 3
Tunnels, 209, 243
Tutupaca, 7
Tweddle, Herbert, 277
Ubinas, 7
Ucayali River, 3, 4, 6, 188, 227, 245
United Kingdom, vi, vii, 181, 249,
252, 254, 255
United States, vii, viii, 15, 19, 98,
152, 164, 173, 174, 176, 177, 181,
214-216, 242, 248, 249, 254, 255,
256, 261, 263, 268, 303, 313, 314,
335, 337
University of Arequipa, 93
of Cuzco, 93, 95
of Lima, 33, 93, 94, 102
of San Marcos, 33, 93, 94, 100
of Trujillo, 93

348

PERU OF THE TWENTIETH CENTURY

Urcos, 227
Urribarren Debt, 68
Urubamba River, 262
Uruguay, 103
Vaccination Board, 52
National Institute, 56
Valparaiso, 238, 241, 242
Valuation, Technical Board of, 102
Vandergehm, George, 96
Vegetables, 334, 337
Venezuela, 9, 12, 15, 287
Viacha, 213, 220
Villaran, Dr. L. F., 95
Villar, Count del, 297
Vilmorin, M., 187
Volcanoes, 7
Wages, 123, 177, 294
War and Marine, Minister of, 30,
333
War of Independence, 15

Waterways, 3
Waterworks, Callao, 299, 300
Wealth, mineral, 283, 290-295
Wheat, 185-187
Wiese, Don Guillermo, 46
Winds, 5
Wireless telegraphy, 46, 57, 58
Women explorers, 20, 21
Woodroffe, Colonel O. J., 19, 20
Wool, 179, 180, 252-254
Woollen factories, 181
Workmen, accidents of, 330-332
Wright, Mrs. Robinson, 21
Yavari, 6
Yonan-Chilete Railway, 235
Young Men's Christian Association,
102
Yucumani, 7
Yunga Indians, 13
Zorritos, 278

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