Bolivia Offers Vast Sum for Railway Development
(CVpyrlght. V. A, by Prank 1. 'mi :r:it-r.)
. ASH I N IT 'N, 1'. '.. Junu
"AI (Special Correspondence "f
! h,.,.. - -1,11 million uoii.HS gou.tf
I" Kglng!
v.- ten nilKion gold dollnsl
That I wh.it Bolivia l icmly to give to
Atnciican capitalists toward Hie building of
railroad In niw of tin- rUli.nt inlicr.il
counti iuM of the South Ann rle.in continent.
The IO,hi.iii Is in cash. UinHl.i has ac
quired it l.y selling to Br.i.ll a territory as
big as thn stuto of Missouri, at the head
watrs of 0110 of tho u il. nt n K s of tho
iinuioti. pr.-sldcnt Paniio and (he Bolivian
Congress hiivo agreed that the .noney na'M
be ucd for the development of tlip rcpub
Uc, nnd today Senor Ignaclo CuMeroii. who
was formerly secietary of tho treasury of
Bolivia, Ih In the fulled States for the
purpose of making thn arrangements. He
has had an audience with President ltooso
velt and has established a Bolivian million
here at Washington.
I met Senor Calderon some years ngo
during my stay In Bolivia, lie was then
tho chief hanker of La Tar,, the prln ipal
city of llollvla, and wo had some business
dealings together. I met tilm again last
night and talked with him concerning his
mission. Said he:
"I have come to tho I'nlted States to In
terest mmio of your capitalists In the rail'
road development of Bolivia. Our govern
ment nan $10,000,000 In gold to put Into the
Investment, and wo offer It on more ad
vantageous terms, I venture, than any ever
proposed by any other government. What
we want Is to contract with a syndicate of
capitalists, strong1 enough to carry out tho
undertaking-, whether It costs $12,000,000 or
$15,010,000 or more. Wo will put In our $10,
000,000 without charge, asking1 no Interest
therefor, and will guarantee tho syndicate
per cent annually upon every dollar It In
vests beyond that As to tho profits above
the 6 per cent guaranteed they will be
divided according to a mutual agreement
between tho Bolivian government and the
syndicate. Supposing the net profits to be
SO per cent, which I think not unlikely, an
even division of the surplus of 14 per cent
Would pay my government 7 per cent and
the syndicate 7, giving tho syndicate with
the original 6 per cent a net profit of 13 per
cent. I do not say that that would bo the
arrangement mado, but wo should be glad
to make a contract greatly to the advan
tage of the syndicate. What we offer Is a
sure 6 per cent loan upon railroad property
costing $10,000,000 niore than tho amount in
vested, and the Interest also guaranteed by
the government and payablo out of Its
revenues."
"Do you expect to have trouble In plielng
this contract, Senor Calderon?" I asked.
T do not know," replied thn Bolivian
minister. "I shall first try the Pnlti d States,
and If your capitalists do not want it shall
then go to Germany, Franco or England. I
have had assurances that It can bo easily
handled In London, Purls or Berlin. Indeed
there are Ioodon parties who would bo glad
to tako tho contract Just now. I should
prefer, however, to deal with American
capital and with Americans. Tour people
are moro aggressive and more pushtng.
Tou hnve a republic, as we have, and our
sympathies are with you rather than with
Europe, There Is a vast amount of Ameri
can capital now awaiting profitable Invest
ment, and we have ono of the rh h. st
countries of the world and want It de
veloped. I think our Interests aro ul'o
gother with the United States In this mat
ter If we can make tho proper deal."
"Just where are the railroads which you
want to build, Senor Calderon?" I asked.
"I can show you best by laying them oat
upon the map," said the minister, as he
placed a chart of South America before
me. "Here Is Bolivia, a country more than
ten times as big as your state of New
York, shut off from the ocean by the de;ert
lands of Chllo and Peru and bounded on
the other side by the richest parts of Brazil
and the Argentine republic. The country
Is chiefly made up of the high plateaus and
mountains of the Andes, which aro ileh In
all sorts of minerals and are valu.it, le also,
for agriculture and stock raising. On the
northwestern boundary lies Lake Tltlcnca,
great Inland sea In tho tops of tho Andes,
now reached by & railway from Mo;iendo
On the Pacific coast of Peru. Farther over
are the headwaters of the Benl river, about
the cataracts of which Braxil has Just con
tracted to build a railroad which will give
Bolivia access to the Madeira and down
that river to the Amaxon and the Atlanllo
ocean. On the southeast Is the Argentina
republic, with railroads almost to our
boundary, and on the south and west Ct lie,
with a railroad 600 miles long, connecting
some of our richest mineral regions with
Antof&gnsta, That ruilroad now crosses
the Chllewn desert and gnns Inland to Oruro
about SO miles from I .a Pas.
"We already have a railroad from the
Southern side of Iuke Tit learn to 1-a Pas.
Lake Tltlcaca has a good steamship serv
ice and goods are now brought to Mollendo
and thence carried up the mountains by
ran to Iake Tltlenra, and acres that lake
by sUamr r and thence by road to Ia Pax.
We now propose to build a railroad from
La Psa to Oruro connecting that city with
' . I
fcsy- .-fJ
m
. ...... 1. .
fUESIDEN'l' TANIrt) OF BOLIVIA.
tho present railroad system going down to
tho Pacific.
"Wo sluill also build branch lines from
T:yunl to Potusl, one of the richest minoral
regions of the glotm, and another line to
Tuplra to connect with tho Argentine sys
tem. These lines will be comparatively
short, but they will give an outlet to svune
of tho richest tin, copper, gold and silver
deposits of South America. As It Is now
the Antofagasta lino, which relies almost
entirely upon ore for ltd trafllc, pays good
dividends, and these lines will do far bet
tor, as they will have all sorts of traffic.
"The Tupizn branch will give Bolivia and
I'eru un outlet to tho Atlantic, and they
will complete Hie railroad connection from
Peru to Buenos Ayres. Then by a short
sea ride of two days one can go from Lima
to the seaport of Molltndo and thence by
rail, with the exception of the short ride
across Lake Titloaea, down through Bo
livia to tho great railroad system of th?
Argentlno republic. The extension will
form a part of the Intercontinental railway
and would be a groat step toward Its com
pletion. "Another road proposed Is from Oruro to
Cochabamba, one of our largest cities,
whence an extension might tako it to the
headwaters of tho Mamora river, another
tributary of the Amaxon.
"Tho Mamora nnd the Benl unite to form
the Madeira Just beyond tho boundaries of
Bolivia. This road to Cochabamba would
pass through a rich agricultural country,
which Is now Inaccessible as far as export
ts concerned because of tho great cost of
transportation. When It Is done we shall
be able to grow our own flour Instead of
Importing it, as wo are now doing, from
California and Chile. It would also opon
up rich mineral deposits."
"What would be the cost of such roads,
Senor Calderon?" I asked.
"They can be built more cheaply than Is
generally supposed," replied the Bolivian
minister. "Take the railroad from Iike
Tltlcaca to IjH Pax, which was laid down
within the lust three or four years. That
load was built by the government. Presi
dent Pnndo originated and completed It. A
government road la usually more expensive
than one built by private parties; never
theless President PriuIo built this out of
the government recnues at the same time
ho was engaged In the exi n-lve trouble
with Braxil. Tho road Is Jjst about fifty
miles long and Its cost was about fl.",,ir0 a
mile. It actually cost $MO,oon le-s than the
engli.eers estimated It would eijst. The
country there Is comparatively lvcl, and
this Is the rature of much of the high
lands of Bolivia. The ro. from I-n Pax
to Oruro goes over sin. liar country anil It
could be built ax cheaply. The other lines
proposed pass through a rough r territory,
but they might be built at double the cost
of the line from the lake to Ii Pnx and
still pay a big profit."
"llow long would the new systt m be, all
told, Henor CaMcron?' I a.-ked
"It would be In the n Igtiboi ho.id of Mi
aUles; X Judge about WO kilonuters. At a
cost of 5,000 a mile it would take only
$12,;00,000 to build It, and of this we are
ready to put in $10,000,000 without charge.
The system might cost moro and still give
a great profit to the Investors. It might bo
extended if It is thought best What wo
want is a syndicate strong enough to take,
this contract and carry It through whether
it costs $12,000,000 or $0,000,0i:O.
"We aro ready to guarantee 6 per cent
Interest on the additional sum required,
whatever it may be. We do this to develop
the country, Ixlievlng that far moro than
any amount we spend will come back to
us in our mat rial and industrial growth."
"I suppose, lliero would bt some oppor
tunities for the lnyestors outsldo this orig
inal contract, Senor Calderon?" said I.
"Yes, I should say thero would bo con
siderable profit," replied the minister from
Bolivia. "A construction company would
have to 1m formed to carry out tho work of
the parent company, and this company
would probably put In Its estimates for
building on such a basis that there would
be a profit In tho construction of tho roads,
and besides there would be enormous pos
sibilities In investing In the mines and
other properties along the roads."
"What character of minis are now pay
ing best In Bolivia, Senor Calderon?"
"Tho greatest profits are now made In
copper and tin. Our tin mines are of
enormous value and there are great pos
sibilities in undeveloped tin. Bolivia Is the
chief tin country of tho world. It supplies
more tin than any other.
"The mining Is different from almost any
other mining. Oold, silver. Iron and cop
per can bo found almost anywhere, but
tin Is comparatively rare. I do not know
of any other region In South America
which produces tin. You have no tin mines
of value in this country. There ar some
in the Malay peninsula, and one or two
Islands of the Dutch East Indies. Austra
lia and Tasmania also produce small
amounts, bu the tin of tho world Is now
coming from Bolivia. There are deHHlts
scattered throughout the mountains there.
Indeed, tin and silver are found In a strip
of country running north and south about
1,500 miles and east and west 200 miles.
There Is some tin along Tike Tit'eaea,
some near Oruro, and they are now min
ing tin In the silver mountain of Potest.
The tin occurs In coinbln.itl.in with tr.m
other metal, often carrying rllver with It
There nilrnnds will open up the tin regions
and will, we hope, result In tin ore being
shipped direct from Bolivia to tho United
States."
"How do we gtt our tin ore now, Senor
Calderon?"
"You pay a half dojjen profits upon It
to foreign merchants and mnniif:ieiir.rK,n
was the reply. "In fhe :lrst plic-. a s
mined In Bolivia by foreign on pit 1. far
rleil to the seacnast upon 'in lnnlish rail
road and thence taken to Kncl.ind and
flerm my to be smei-l v south,
about the Strait of Micelle: .- r.tp Horn
and up uerosa the Atlm e t : in. milling
worka Vtora there it 's thlppod back rvrr
the Atlantic to the United States. Tosj
axe the chief Un coiuutnors of the wcrMl
and you should get your ore direct Tosj
will surely do so whoa the Panama caaaj
Is completed."
"Is not the silver of Bolivia about mlne
out 7"
"No. We have vast quantities of sllvej
In our mountains, notw.'tlistasdloz we hax
produced a largo part of the Bllver of I hi
world. The silver mountain of Polr-st
which will be reached by one of tn
branches from Oruro, hus already yloidt
almost $3,000,000,000 worth of silver. W
have other great silver deposits, but &
present silver Is low aud It d?s not ia
to work many of the mines. The tltuatt
Is such that the mining Is almost impcaw
lble without large capital, owing to th
eoet of getting the ore oit to the iau
road. When the roads ar built tho emal)
mlivers will make mon-jy and there will M
an enormous development."
How about the copper mines?"
We have some very celebrated oneSL
Among the best so far discovered are thos
Of Corocoro, near tho Desaguadero rive
The oro hore Is so soft and ductile that It
Is sent to Eiurope for use In making Jewelry
and notions. Thoso mines are as rich In
copper as Potosl Is In silver. It is said
that an American syndicate has bought
them, and if so It has h very valuabb)
property. The mines are not fur from
Lake Titicaca, and they will bo tapped by
the railroad which we promiso to build
with this money from La Paz to Oruro.
At present tho copper ore Is taken by the
river to Ijuko Titicaca and thence sent
flown tho Andes by railroad to Mollendo."
MIave you much gold?"
"Yes. There Is gold scattered throughout
tho different parts of Bolivia. We have
placer mines and Quartz mines, and some
In the territories to bo opened up by these
railroads."
"How about this Acre territory which you
have sold to Brazil?"
"Wo lost that country largely through
our dealings with an American syndicate,"
said Senor Calderon. "The territory is fas
from the seat of government, and It Is a
difficult country to control. It has soma
of tho head waters of the Amazon In it
and it includes valuable rubber territory.
The American syndlcato was to pay the
Bolivian government a certain amount fo
the light to administer tho country, ua far
as the collection of its revenues was con
ccrned. It had certain rights of develop
ment and Its members expected to make a
great deal out of the exploitation of its
rubber and other possibilities. It had at
tho same timo tho right to police the region
and to keep order, under tho direction of
Bolivia. There was no intention of giving
up tho country, and its administration was
entirely subordinate to that of Uio Bolivian
government.
"Shortly after the concession was
granted, however, Brazil became alarmed
at tho possibility of this territory being
acquired by the United States. Hotheads
among tho Brazilian statesmen proclaimed
that this was tho beginning of a movement
which would result In South America being
absorbed by the Yankees, and as a result
of their agitation tho Brazilian govern
ment insisted that the country must be
sold to them. There was much trouble
about the matter, and wo finally agreed
to sell out for 2,000,000 upon certain con
ditions. This J,0UO,0aO is the sum we have
now to Invest in railroads. Among the
conditions Is one that Brazil shall build a
railroad about the cataracts of the Ma
deira and the Benl, thus giving tis an
outlet to tho Amazon. Another Is that they
are to give us access to the Paraguay
river; so that, all told, while we were op.,
posed to selling the territory, it may in the
end be good for the rest of the country."
FRANK O. CAKPI3NTHIC
The Spirit of the West
Why do mockers call It the "Woolly
West?" This is a question that must go
unanswered, for there Is no answer to
be found In any mind. A wooly man la
not unknown in any of the haunts of n.en
and some professors have met him In the
class room.
"Explain the pessimism of EeelesLastesv"
said the profsssor of a not far distant uoU
verslty.
"I do not understand the question," ana
swered the foot ball giant
"What Is the difficulty?
"I don't know what the question means.'
Tou know what Kcclcsiastcs means?'
"O, yes, ;tid the ruptain of elevens; H
Is a book In the Blb!e."
"Then it must be pessimism that troubtrsj
you suggested the amazed (he was young)
professor.
"That's It; that's It" bubbled the onto
apult
h , you must know that; you cannot
b Ignorant of that You know the words
peatdiulHin and optimism, do you not? Pes
simlsm; you certainly know what they
nie.m?"
"O. yes," replied ha of the wetl-greaved
shins; "I know what they mean, but I
can t tell them apui i."- Henry Loomls fse.
son In Harpers' Magazine.
