Selling Latin America: A Problem in International Salesmanship. What to Sell and How to Sell It
Part 6
Cocoa is largely grown in Ecuador, the bean being of a high grade, rich in color and fats. Strange to say, practically none of the chocolate of commerce is made here, the crude dried bean only being exported. In 1912 $7,653,505 of this article alone was exported, chiefly to Europe, despite the fact that we, as a nation, are the largest users of chocolate.
Forty million one hundred and forty-three thousand four hundred and fifty-two pounds of tagua or ivory nuts worth $936,511 were exported in the same time, most of it going to Germany to be made into buttons; one German village has fourteen factories elaborating this product into the finished article of commerce.
Panama hats are made by individuals, collected by jobbers, and exported, this trade in 1912 amounting to $1,372,051.
More than $1,000,000 worth of rubber was exported in 1913, and in the same time coffee to the value of $783,787, most of which went to Chile.
The total exports in 1912 amounted to $13,717,884, as against $10,652,843 imports, the leading articles being boots and shoes, candles, ready made clothes, crockery, drugs, food stuffs (flour and canned goods), hats, hardware, machinery, oils, paper, perfumes, textiles, wines and liquors.
I cannot refrain from repeating that Ecuador, due to the prevalence of disease, is passed over by most travelers and as a consequence there is little competition, and one is sure of doing business here if his product is appropriate.
A small license or fee is one of the legal requirements to sell goods in this country, but is more honored in the breach than the observance.
These towns should be made:
_Population_ Guayaquil 80,000 Quito 80,000 Cuenca 35,000 Riobamba 18,000
There is but one city in the Galapagos group of islands, namely Floriana. They are unworthy of any attention from a commercial standpoint.
Ecuador is reached most directly from Panama in about three days. Travelers going to Peru or Panama from any of its ports are detained in quarantine and have their baggage disinfected. This rule is strictly observed. Freight should be sent via any line to Colon or Panama for trans-shipment as there are but few direct boats. From San Francisco the Kosmos Line of Hamburg formerly maintained a bi-monthly direct service which may be resumed after the war. The West Coast Line from New York has irregular sailings via the Strait of Magellan, carrying only freight; the voyage takes about three months as the ships drop off cargo en route.
X COLOMBIA
Columbus on his fourth trip of discovery to the New World was the first European to sight Colombia. He sailed along the coast during September, 1502, but did not undertake to land. Alonso de Ojeda in 1508 obtained a patent from the Spanish crown and after repeatedly repulsing the warlike Indians, secured a foothold at Cartagena, which place he proceeded to fortify. Others with warrants from the King of Spain also entered the territory, ultimately subjugating the Indians and establishing the capital at Bogota in 1538.
The province was called New Granada and was governed by a Viceroy until 1810 when a revolutionary movement deposed him, and on December 17, 1819, the Republic of Colombia was born. Under the guidance of Simon Bolivar, Venezuela and Ecuador joined with Colombia in forming a union of these republics, which could not be held together after the death of the founder, in 1830. On the dissolution of this body of states, the Republic of New Granada came to light November 17, 1831, this title being changed to the United States of Colombia in 1863.
Colombia covers an area of 438,436 square miles, and like the United States enjoys the unique advantage of having a coast line on two oceans—the Caribbean Sea to the northwest being part of the Atlantic and the Pacific on the south and west. Ecuador and Peru form her southern boundary, Brazil and Venezuela are on her eastern frontier, while Venezuela stretches across much of her northern limits, and the Republic of Panama is the only land on the west.
Colombia is a land of mountains, plateaus and wide plains. To the east and south are large areas of level ground known as “_llanos_,” or “_selvas_,” covered with grass and tropical growths including virgin forests. This section has enormous rainfalls, is very warm, unhealthful and sparsely populated, in fact, has hardly been explored. There are three different mountain systems running northeast and southwest, between which are rich, luxuriant valleys, capable of great agricultural possibilities. These mountains contain many extinct volcanoes, of varying altitude, one being 18,000 feet high.
The climate ranges from tropical to temperate, Bogota, the capital, having a uniformly cool and spring-like temperature throughout the year, due to its elevation of 8600 feet. In the lowlands, and especially along both coasts, the heat is oppressive and far from salubrious. This is also true of much of the low-lying interior country. The cities on both coasts are notably unsanitary.
Colombia claims a population slightly in excess of 5,000,000, but I doubt if it really has 4,000,000. About one-tenth of the inhabitants are pure white and there are 200,000 wild Indians, living primitively under tribal chiefs, nominally under the control of the local government. The remainder are mixtures of white, black and Indian in varying proportion, over 300,000 of whom are negroes and mulattoes. Little can be hoped for from the majority of these people owing to their poor source of origin and the climatic conditions which surround them.
The Government recognizes the doctrine of states rights, and is republican in form with the usual branches, judicial, legislative and executive. A President with two Vice-Presidents represent the executive control, and the legislative body is composed of a Senate and House of Representatives.
The mountainous topography of Colombia has had much to do with the scarcity of railways, rendering them expensive in construction and owing to the great distance between possible termini, likely to make them profitless ventures. There are about 650 miles of railroads in Colombia, many of them supplemental to river transportation, or connecting ports with interior towns. It is doubtful if this condition will ever alter materially.
The trade of Colombia is carried chiefly on the Magdalena River, which is 1060 miles long with a swift current, and navigable to Honda, a city 600 miles from Barranquilla at its mouth. A marine railway, around the rapids at Honda, allows small steamers to go about 200 miles above this inland port. Goods intended for Bogota usually go via rail from Puerto Colombia to Barranquilla, a distance of about sixteen miles, and are then transferred to the stern wheeler, wood-burning, river steamers for all the world like those which navigate the Mississippi. A trip from Barranquilla or from Cartagena to Bogota takes via the Magdalena River from ten to fourteen days, according to the stage of water in the river and includes steamboat, railway and muleback travel. In making this trip the traveler is advised to take tinned food and bottled mineral water.
Travel through Colombia at best is difficult, the roads are bad and the hotels miserable. Goods intended for Bogota have six trans-shipments from the ocean to their destination—an argument for good packing.
The Atrato River, which rises in the foothills of the Andes and empties into the Gulf of Darien, an arm of the Caribbean Sea and which England threatened to make into a canal connecting the two oceans if not given special privileges in the Panama Canal, is navigable for about 225 of its 350 miles. The largest river on the Pacific side is the San Juan, being navigable for 150 of its 200 or more miles. The rivers emptying into the Amazon are navigable for canoes and lighters, but are so remote and in such a sparsely populated region as to be negligible quantities in this connection.
Agricultural experts estimate that only one-third of Colombia is susceptible of cultivation, the eastern part being swampy and the high mountain lands incapable of sustaining any growth, especially at an elevation of 13,000 feet. The belt of coast lands with the plateau regions can be made highly productive.
Coffee is perhaps the largest crop grown, in 1913 the output being nearly 55,993 tons valued at $16,777,908, practically all of which came from the Cauca Valley, and nearly all taken by the United States.
Some cotton is grown, of a particularly long fibre, and this industry could be easily developed into a larger one.
Due to the work of the United Fruit Company of Boston, which maintains banana plantations near Santa Marta and Cartagena, the growing of this staple fruit is enlarging into a great business, owing to the fact that the soil and climatic conditions are ideal for its propagation. In 1913, $1,996,999 worth of this fruit alone was shipped.
Rubber to the extent of $736,427, tobacco valued at $442,461, most of which went to Germany, ivory or tagua nuts worth $754,708 and Panama hats to the extent of $1,174,641 were shipped in 1913. These industries are susceptible of a greater increase.
The cattle-raising business could be materially developed in some sections of the country which now grazes about 3,000,000 head. The breeding of goats could be done profitably. Hides to the value of $2,661,721 were exported last year, the United States taking by far the greater portion. Some 30,000 alligator skins are sent annually to the leather markets of Europe and America.
Excellent hard, cabinet and dye woods are to be found toward the interior, but the poor transportation facilities retard the development of trade in this field.
Colombia’s chief wealth is in her mines. There is much gold, also iron, silver, lead, copper and coal. In the production of platinum this country ranks next to Russia. Petroleum is found and the petroleum industry is rapidly assuming large proportions. Practically all the emeralds of the world to-day come from Colombia, this precious stone being worth more per carat than diamonds. The government controls the exploitation of emerald mines, leasing them to operators. The chief groups of mines are the Muzo, the Coscuez, the Chivor and the Cuincha, the first named having a yearly output of 262,548 carats of the first water, 467,690 of the second, 22,700 of the third and 17,800 of the fourth class. The Chivor group, it is estimated, is capable of producing $500,000 worth of these stones per year.
Gold to the value of $6,634,914 was exported in 1913. Its production increases annually. About $1,000,000 worth of silver and $600,000 worth of platinum were shipped abroad in 1913.
Colombia is presumably on a gold standard, having as its unit of value a _peso_ or dollar equal in value to the American one. As a matter of fact, however, the currency in circulation is an inconvertible paper dollar, which fluctuates in value according to the stability of the government. I have seen it take three hundred of these dollars to equal one of ours. Now a paper dollar is worth about one cent gold. Business transactions are usually done in United States dollars or English pounds.
Much of the business of Colombia is in the hands of the Germans who maintain houses at the port towns and branches at other trade centers in the interior. The English are the next largest investors, followed by the French.
Colombia in 1913 imported goods to the value of $28,535,780 and exported products worth $34,315,252. Of these amounts the United States shipped her 27 per cent., Great Britain 20 per cent. and Germany 14 per cent. Colombia shipped us 55 per cent. of her products, to Great Britain 16 per cent. and to Germany 9½ per cent. Expressed in figures we bought from Colombia $18,861,880 and sold her $7,629,000. It is obvious that we should do a much larger trade with the country, especially when it is practically next door to us. Our trade with her in textiles now is $1,500,000 against England’s $3,500,000. In this one line we should be able to make a 100 per cent. increase.
Colombia exports coffee, gold, emeralds, platinum, rubber, tagua nuts, hides, skins, feathers, bananas, hats, and requires textiles, foodstuffs, flour, kerosene, railway supplies, hardware, machinery, medicines, paper, metals, wines and liquors.
While Colombia _per se_ does not impose a tax in order to do business within her territory, many of the municipalities do. This problem is a matter that can generally be adjusted with the leading police official of the city.
The chief cities are:
_Population_ Bogota 150,000 Medellin 72,000 Barranquilla 50,000 Cartagena 40,000 Manizales 35,000 Sonson 30,000 Pasto 28,000 Aguadas 27,000 Cali 27,000 Ibague 25,000 Palmari 24,000 Neiva 22,000 Monteria 21,000 Yarumal 21,000 Cucuta 20,000 Bucaramanga 20,000
Travel is tiresome, cities hard to reach, samples difficult to carry. The country can be thoroughly covered by calling on the trade in Barranquilla, Cartagena, Bogota, Santa Marta, Rio Hacha, Medellin and Bucaramanga. The larger business houses are located at these points and have branches in the smaller cities, to which goods are shipped, and with which they are in close contact.
Colombia may be reached directly from the United States by the United Fruit Company’s ships which stop at all ports on the Caribbean Sea, or one may go direct to Colon and there transship to some vessel, of which there are many plying along the coast.
Buenaventura and Tumaco are the largest ports on the Pacific coast and are in weekly connection with Panama through the medium of small steamers.
XI VENEZUELA
Venezuela was discovered by Columbus on his third voyage to America August 1, 1498, at the time of his visit being the home of more than 150 different tribes of warlike Indians, who resisted to their limit the attempts made by Spain to conquer them and explore the country. In 1520, Cumana, on the coast of the Caribbean Sea, was founded and is the oldest European settlement in this hemisphere. The Indians, however, kept up a continuous warfare against the invaders, being gradually pushed into the interior while the conquerors established themselves along the coast in towns fortified to resist invasion from the buccaneers who paid them many visits.
An attempt at independence was made in 1718, which was suppressed. Although quasi loyal to the Spanish crown, there were many abortive attempts at revolution, which finally assumed definite form in 1810 when the citizens of Caracas revolted openly, and declared Venezuela independent July 5, 1811. Spain, however, put down this uprising and reestablished its authority, maintaining control of the colony until August 7, 1819, when Simon Bolivar defeated the Castilian army, and made Venezuela one of the three States of Greater Colombia. With the breaking up of this alliance Venezuela became absolutely independent September 22, 1830.
Venezuela is situated in the northern tip of South America with a northwestern boundary of 2000 miles on the Caribbean Sea. To the east she is bounded by British Guiana, on the south by Brazil and the west by Colombia, a total area of 393,976 square miles, although it is really doubtful if the exact extent of the country is known, especially along the Brazilian frontier. It is as large as Illinois, Indiana, Ohio, Michigan, Wisconsin and Iowa.
There are three different mountain regions in Venezuela—a continuation of the Andes—the Coastal Range and the Parima Range, between which are many high plateaus. The mountain ranges reach an altitude of nearly 10,000 feet, while the highest plateau is about 6000 feet.
Owing to the mountain systems, Venezuela is divided into three climatic zones: the tropical extending along the coast and up into the valley through the center of which flows the Orinoco River, the semi-tropical zone to be found in the llanos or broad plains or plateau between the mountain ranges, and the temperate zone along the sides of the mountains on which is grown the famous coffee for which the country is noted.
The United States of Venezuela is a federal union with a republican form of government, the States, of which there are 20, being entirely autonomous in their internal affairs. The executive power is vested in a President and two Vice-Presidents, and the legislative in two houses—a Senate and a Chamber of Deputies.
While the official estimate of the population is 2,743,000, it is doubtful if the country has 1,500,000 inhabitants. There are about 400,000 semi-nomadic Indians, the remainder being of mixed blood, part Indian, part negro, part white, or a mixture of all three. Pure white and pure negroes are comparatively few. There are perhaps 20,000 Europeans engaged in business and located in the larger cities, the countries represented in the order of their population being Germany, Italy, France, Spain, England and a very few Americans.
In the northwest of the country is situated Lake Maracaibo, 370 miles in circumference, covering an area of 8000 square miles, and navigable over its entire surface. This lake is accessible to the Caribbean Sea by a strait 34 miles long and varying from 8 to 12 miles in width. Its channel permits the entrance of ocean-going vessels of 5000 tons or less.
The fluvial systems of Venezuela are numerous, there being about 70 rivers navigable for shallow-draft boats for over 6000 miles, the third largest river in the world—the Orinoco—with its many tributaries contributing some 4000 miles of this distance. About 600 miles up this river is situated the town of Ciudad Bolivar, formerly known as Angostura, where the bitters of that name were first made. Regular lines of ocean-going vessels and steamboats run to this inland port, the river being navigable for smaller vessels to San Fernando de Apuri, where the Apuri River joins it over a thousand miles from its mouth. It drains a territory of over 370,000 square miles. Other navigable rivers are the Meta, the Portuguesa, the Yaracuy, and the Escalante. Along the coast of Venezuela there are about 50 harbors and 32 ports.
For its size there are few railways in Venezuela, the total mileage being about 550, and the chances are that it will be many years before there will be any marked activity in this field, due to the topography of the country, its lack of population and its tendency to revolutions. Some idea of the conditions confronting the engineer may be had when I state that the German railway from Caracas to Valencia, a distance of 111 miles, is cut through the mountains in 86 different tunnels and passes over 212 bridges, often coming out of a tunnel on a bridge and into a tunnel again. Every time a revolution started some of its bridges were blown up or tunnels blocked. The English road from La Guaira to Caracas, a distance of 23 miles, has nowhere 50 feet of straight track and goes up the mountain its entire length at a gradient of 4 per cent. The road from Valencia to Puerto Cabello, a distance of 33 miles, owned by an English company, requires a rack and pinion supplemental track to negotiate some of its climbs.
There are no manufactured products exported from this country. The few things elaborated within its confines, matches, candles, shoes, beer, alcohol, sugar and the like, are for local consumption.
The chances are that its people will always be pastoral in their pursuits. Its coffee and cocoa are world famous and form a large proportion of its exports, about 25 per cent. of its population being engaged in this line. In 1912, $15,137,994 worth of coffee was exported, two-fifths of this going to the United States and the remainder to Germany. “Caracas” cocoa is famous, most of the product going to France, which in 1913 imported $2,305,475 worth of this article alone.
Tonka beans, used in flavoring extracts, are shipped to the United States, which bought $137,156 worth of them in 1913.
This country is rich in dye woods, cabinet and hard woods, but the great distance of the forests from the seacoast retards this industry.
“Ballata,” an inferior rubber, much used in the arts and found in the forests bordering the Orinoco and its tributaries, formed an important article of export, $1,767,259 worth being shipped abroad in 1913.
One of the largest asphalt deposits in the world, covering 1000 acres in extent, is to be found in the State of Bermudez. This is owned by an American company and is practically all exported to the States, $294,184 of the $303,589 shipped last year going to America, and the remainder of $9,405 to England.
Venezuela, due to its vast grassy, well-watered plains, is destined to become one of the world’s greatest cattle-producing countries, and is capable of supporting many million heads. It is estimated that there are more than 2,000,000 goats and 3,000,000 head of beef cattle in this land to-day. Four slaughter-houses adapted to ship frozen meat to Europe were opened and seemed to be on the verge of success when governmental interference closed them.
Hides to the extent of $1,010,636 and goatskins to the value of $365,447, came to the United States from this country in 1913. Feathers, horns, wild animal skins, deer skins and fish-sounds are also large items of export.
The extent of the mineral wealth of Venezuela is unknown, but the chances are that it is exceedingly rich in such deposits. It is certain that there is gold, silver, copper, iron, tin, sulphur, asphalt, coal, lead, petroleum, phosphates, manganese and caolin. One gold mine between the years 1871–1890 yielded $25,000,000. I have seen many Indians bring bottles of gold dust to stores to trade for supplies. There is undoubtedly much gold to be found in the country and the man with determination and enterprise who will follow this clue is sure to get rich returns.
The Island of Margarita, off the coast of Venezuela, and owned by the Republic, produces the finest of pearls and mother of pearl. Other islands off the coast are rich in guano and phosphate rock.
Venezuela is on a gold basis, the _bolivar_, equalling almost 20 cents in our currency, being the unit of value. The _peso_, according to which bills of the country are reckoned, consists of four _bolivars_, and is a fictitious coin not existing in reality. The “_peso fuerte_,” or five-_bolivar_ piece, is a regular silver coin.
The bulk of the business of Venezuela is handled by the Germans, although the United States takes most of its exports, with France second, Germany third and England fourth. German merchants are all over the country, the Italians also are much in evidence.
In 1912, the latest data available, Venezuela exported goods to the value of $25,260,908 and imported articles worth $20,568,940.
She purchases agricultural implements, arms, ammunition, bags for coffee and cocoa, beer, butter, canned goods, confectionery, chemicals, drugs, medicines, flour, glassware, iron-ware, lard, leather, oils, paints, paper, perfumery, railroad material (chiefly from Europe), wall-paper, wines, textiles, cotton and woolen goods, shoes, hats, and exports coffee, cocoa, hides, skins, horns, feathers, dye woods, tonka beans, gold, pearls, guano, phosphate rock, fish-sounds and ballata.