CHAPTER XII

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British fire apparatus—Story of a British installation—Coffee and sugar machinery—Cane-mills—Fawcett, Preston and Co.'s installations—High reputation enjoyed by British firms—United States coffee equipment—German competition—Methods of German commercial travellers—Openings for British trade—Effect of Panama Canal—A libel upon Salvador manufacturers—Salvador Chamber of Commerce.

picturesque

View of the picturesque town of Marcala.

There are, on the other hand, certain classes of machinery and appliances of British manufacture which can be met with not only in practically every part of the world, but which no amount of foreign competition would seem to seriously affect. Among these specialized manufactures may be included, coffee and sugar machinery and fire-engines. The latter stand, indeed, quite alone as effective and universally known features of British construction, and I do not in any way exaggerate when I state that in no part of the world to which I have been—and that is equivalent to saying "everywhere upon the face of the habitable globe"—have I failed to see some kind of fire-extinguishing apparatus, old or new, of British manufacture. In the Central American States the reputation of such appliances stands very high, as was exemplified at the time of one of the several serious conflagrations which have afflicted San Salvador, and which occurred some four years ago, when a great portion of the capital city was for a time in jeopardy of destruction. One of the principal churches was actually destroyed, and this so affected the people that the Government determined to invest in fire-engines and necessary appliances.

As soon as this determination became known, the officials were inundated with the catalogues of manufacturers from Germany, France, the United States, and other countries. An emissary from America even came down personally from the States to canvass for the order; but the reputation of the British fire-apparatus was strong and its general effectiveness was generally recognized, so that the Government did not hesitate in its decision to follow Mr. Mark J. Kelly's advice to award the order to a Greenwich firm. A larger type of the Merryweather steam-engine, with a very complete outfit for the firemen, has since been added, through the instrumentality of the same gentleman.

Further proof of the utility of the English engines was afforded later on, when yet another serious and disastrous fire occurred in San Salvador, the work, it is believed, of an incendiary, with the result that an entire block of fine buildings, including the National Theatre, was burned to the ground. It is admitted by everyone that but for the services rendered by the fire-engines, and not a little also by the heroic work of the local brigade, the greater portion of the city, in all probability, would have been destroyed. It is the intention of the authorities, I understand, to further increase the effectiveness of the service by ordering more hose and additional salvage appliances.

In conversation with the former President of the Republic, General Fernando Figueroa, upon one occasion, he paid an eloquent tribute to the excellence of British machinery of all kinds. He has had, it may be mentioned, some experience of the manufactures of other countries as well as of our own. He mentioned to me the fact that he recollected at one time that many British manufactures, not only of machinery, were to be met with largely in Salvador, and that the names of several of the large importing firms and store-keepers in many of the other cities of the State were British. To-day there are but five or six English houses to be found in Salvador. On the other hand, as previously pointed out, one meets with many German names, these ubiquitous and enterprising trade rivals having firmly established themselves in the Republic, as they have also succeeded in doing in Guatemala and Costa Rica.

In regard to coffee and sugar machinery, of which mention has already been made, this trade is split up between the two houses of John Gordon and Co., of London, and Marcus Mason and Co., of New York. Both make excellent apparatus for the purpose of treating the berry and cane, the Germans in this particular direction finding but very little favour even among their own people. I visited several of the large fincas or estates, where both coffee and sugar are treated, and in all such instances the properties were either owned or being managed by Germans. In all cases the machinery was either British or American, and in a number of instances both were freely employed.

Upon inquiry, I was informed that the sugar machinery turned out by German manufacturers in the majority of cases is too complicated and delicate for practical purposes, and that it needs an expert mechanician—a decidedly rara avis in this part of the world—to understand the apparatus or to carry out the necessary repairs when things go wrong. In all of the factories visited by me the equipment, with the exception of the boilers and some of the vertical donkey-engines for feeding them, came either from Great Britain or the United States of America.

One excellent testimonial to the superiority of British machinery was afforded at the Laguna Finca, belonging to Herr FÉdor Deininger, who, as may be assumed from his name, is a German proprietor. Here I found a complete sugar-manufacturing plant, consisting of cane-mill, liquor pumps and tanks, defecators, juice-heaters, clarifiers and evaporators, steam eliminators, filters, and, indeed, everything but the centrifugals, which alone were of German construction, had been provided by the Liverpool firm of Messrs. Fawcett, Preston and Co., Limited, of the Phoenix Foundry. The date upon this installation is "1867"; and Herr Deininger, the present owner of the factory, who acquired it from his uncle, Herr Bogen, some twenty years ago, declares that it is quite unnecessary to replace the installation, "as it is still working most satisfactorily." Of this I, indeed, assured myself by personal observation. I venture to believe that this is an altogether unique instance of a sugar-machinery installation, erected over forty-three years ago, and which has been in constant operation during that time, day by day, Sundays included, being found in a sufficiently sound and workable condition as to need nothing more serious than an occasional replacement of a small part or a temporary stoppage for overhauling.

In Salvador there are several cane-mills of quite recent construction throughout, and in most instances these are the manufactures of Messrs. Fawcett, Preston and Co., Limited, who, it would appear, have erected similar installations in many other parts of the world, since I have come across them in Southern Brazil, Cuba, India, and the Argentine. The cattle-mills, which are peculiarly adapted for this country, where oxen are used everywhere and for all purposes of road-hauling, are made with three horizontal rolls, secured upon strong gudgeons, running in adjustable gun-metal bearings, supported and held in place by two massive head-stocks bolted to a strong bedplate. This latter extends under the rolls from one side of the mill to the other, serving as a juice-pan attached to it. There is also fitted an upright shaft, turning in a footstep secured to the mill bedplate, and in a pedestal bolted to an entablature, supported by four pillars, which form part of the head-stocks. To this upright shaft is keyed a bevel-wheel, which gears into another keyed upon the toproll gudgeon. In addition to the bevel-wheel, the shaft is provided with ironwork for carrying wooden steps for the hitching of oxen, horses, or mules.

Of recent years Messrs. Fawcett, Preston and Co., Limited, have introduced an improved type of Rousselot cane-mill, by which the returner-bar and knife are reduced to the smallest dimensions by a special patented arrangement of bringing the side-rolls as close together as the top cap-bolts will admit. These latter are inclined vertically to one another, and the effect of this arrangement is to reduce the width of the knife, and consequently the friction of the cane passing over it, and also economizing the power and consumption of fuel necessary to drive the mill. The special feature of the Rousselot patent is to be found in this improvement—that is to say, that the strain is taken off the cast-iron head-stock by through bolts, which secure against the breakage of the head-stocks. Greater ease is also found both in the erection and the taking down of the mill. These rolls are made of a special mixture of cast-iron, selected as the best to withstand the wear and tear to which they are necessarily subjected. The gudgeons are of the best hammered scrap-iron, and are forced into the rolls by means of hydraulic pressure, while, in addition, the rolls are keyed on to the gudgeons. All the head-stocks, mill-bottom, and crown, are of cast-iron.

Yet another improvement which this firm have introduced into their sugar machinery is in connection with the juice-heaters. These now consist of three cylindrical heaters of a compound type, with Chapman's patent steam separator, and which are fixed horizontally side by side, being so connected that while any one of the three is out of use for cleaning or repair, either of the other two can be worked as a high-pressure or finishing heater, and the other as a low-pressure heater, thus economizing considerable fuel. The steam separator worked in connection with these heaters economizes about 8 per cent. of the steam required in the multiple effect apparatus for evaporating the cane juice, since by this arrangement the steam that would otherwise flash off from the superheated juice into the atmosphere and be lost is collected and conveyed to the heating drums of the multiple effect, and so utilized for the evaporation of a corresponding amount of water from the juice. Improvements are also to be observed in connection with the subsiding defecators, the steam eliminators, bag-filters, the apparatus known as the "Coffey" still.

Reference has been made above to the vogue which British-made coffee machinery, and especially that of Messrs. John Gordon and Co., of London, has had in the Latin-American States. So far as Salvador is concerned, I understand that this class of product stands in serious danger of being ousted from the market by American competition. While it is generally admitted that none better than British machinery for coffee, rice and cocoa can be obtained, the very success of these manufactures seems to an extent to have resulted in a slackness to obtain further orders, and the field, thus neglected, and always most carefully watched, is being occupied by the Americans. I am informed, for instance, that to-day fully 65 per cent. of the coffee machinery to be found in Salvador is of American make, and that fresh orders are being despatched frequently for further supplies. I also learn that no British traveller in this class of machinery has been seen in Salvador for fully five or six years, while, on the other hand, the largest of the United States manufacturers has an agent, in this case a young German speaking Spanish fluently and possessing a very pleasant manner, who is continually travelling up and down the country, visiting the different fincas at which, apparently, he is always welcome, submitting drawings, plans, and estimates for improvements and new installations.

Moreover, this young man is an expert mechanic, and most skilful in effecting repairs and alterations to machinery and plant installations. It is not at all difficult to understand how such an individual makes headway with the kind-hearted and hospitable Salvadorean estate owners, and how he succeeds, not alone in obtaining orders from them for their coffee and other machinery, but in introducing German manufactures of other kinds; for your German traveller is always open for business, and, indeed, appears to live for very little else. Thus, it would seem, unless some "move" is made by British manufacturers of coffee and rice machinery in this part of the world, at no distant date the trade will be snatched from them; and that once done, nothing will probably succeed in bringing it back again. Lost ground of this character is seldom recovered, and it may be hoped that those manufacturers who are mostly concerned will take the hint here conveyed, and set out to put their neglected houses in order. The coffee industry of Salvador is the most important of all its exports, and its pursuit is the mainstay of the country. In 1910 the value was $5,130,404, out of a total export trade of $7,294,602.

Among the British goods which I have more particularly noticed to be well displayed in the retail stores are chemical preparations and drugs. The Salvadoreans, like most Latin-Americans, are large users of all kinds of patent medicines; and although a great many of these come from the United States, those of British manufacture are not at all poorly represented. Such articles as Eno's Fruit Salt, Apollinaris and Apenta Water, Pears' Soap, Odol, and many of the better-known vegetable pills, are to be found here—except Cockle's, which are a very difficult drug to obtain, although in my opinion one of the most efficacious. The chemists' shops are full of all kinds of other drugs and patent medicines, and apparently the proprietors conduct a remarkably good trade.

Relative to the trade of pharmacy, a new law is proposed which will regulate the practice of this trade, and which will create a Faculty of Pharmacy and Natural Sciences, to which all chemists and druggists, whether native or foreign, operating in the country, must belong. In default of membership in this faculty, a special licence will have to be taken out for pharmaceutical practice.

Drugs, medicines, and perfumery to the value of $82,676 were imported in 1910.

In regard to British wines and spirits, these are hardly ever seen except in the houses of the few British residents who may have imported a small supply for their own use. The total value of victuals, wines and spirits, however, is not inconsiderable, amounting in 1909 to about 12,748,249 kilos, representing a value of £179,431, which, however, contrasts with 15,689,307 kilos, or a value of £211,819, for the previous year. The wheat, rice, cereals and breakfast foods, which are not as well known here as in other parts of Latin-America, come from the United States, which also send here by far the greater part of the lard, tallow, dairy produce, sweetmeats, and dried and smoked meat and fish. The United Kingdom shares in the salt trade, but this is only small.

I am of opinion that a better trade could be done by exporters of British beers and liquors, which would be purchased here to a more considerable extent. The number of cafÉs and restaurants is increasing, and the tendency of the inhabitants, especially in good times, is to dine from home. Although beer is brewed, it is more the beverage of the workers than of the well-to-do.

In regard to the tobacco and liquor trades carried on in Salvador, a record of the progress and management is maintained by means of the regulations which have been introduced covering the operation of cigar and cigarette factories and of breweries and bottling establishments in the Republic. This control has been in vogue since June of 1909. Proprietors of these establishments are required to furnish to the proper authorities a sworn statement as to the capacities of their plants, the number of the operatives employed, etc. The analyses previously ordered for wines and liquors is also extended to beers, both manufactured and imported.

In regard to the duties on wines and canned goods, imported liquors pay a duty of 50 cents; heavy and white wines, 25 cents; and old table wines, 5 cents—per quart bottle. Canned goods pay 10 cents per kilo (=2,204,622 pounds). These duties are in addition to Customs charges.

What effect will the completion and opening of the Panama Canal have upon Salvador and other Central American countries? I have often 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 Central America after the completion of the great waterway is a practical certainty; but I do not consider that there will be any such considerable augmentation, nor that the difference will be so prodigious, in regard to results, as some 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 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 expansion; 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 time more and more reckless, in their foreign investments, 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 the value and extent of British foreign investments. In regard to the return which their investments bring them also, they have, on the whole, proved far less fortunate. In all probability, British foreign holdings in South and Central America to-day approach the sum of £500,000,000 (=$2,500,000,000), and upon this gigantic amount of capital they earn a fair average of 51/8 per cent. per annum, allowing for the higher and the lower rates of interest paid, and which amounts to anything between 25 per cent. and 35 per cent. on some land shares, and the modest 41/2 per cent. and 43/8 per cent. earned upon railway debentures. I also include in this return some "bad eggs" among a very diversified list of investments.

I should say, on the other hand, that American foreign investments would 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 probably two-tenths in enterprises in Canada. American foreign investments are, in a large measure, tributary to great concerns located in the United States, which have their agents in foreign countries looking after their local interests. From this considerable invested amount it would be impossible to estimate a higher return than 23/4 or 3 per cent.; for while many of the investments—such as the Standard Oil interests in Mexico and the many banking interests in Cuba, Panama and other countries—yield often a sensational amount of profit, so much capital has been lost through rank speculation and dishonest management, and so little sound judgment has been displayed in the matter of sound original selection, that a considerable portion has been irretrievably 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 connection with some of the railways of Costa Rica, Guatemala and Ecuador, so that what has been made on the one hand has, to an appreciable extent, been lost on the other.

Thus I do not anticipate any very pronounced rush of American capital into Central America merely because the Canal will have become un fait accompli. On the other hand, the United States trade and commerce must feel benefit from the speedier means of transport. Already the United States control 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 J. Pierpont Morgan Syndicate, Honduras will also shortly be taking about 80 per cent. of the United States goods as well as accepting nolens volens the loan of United States capital.

It is, however, the Republics of Ecuador, Peru, 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, I particularly remarked the arrangements which were being organized to handle this anticipated additional trade with all efficiency and despatch. American agents were busy opening-up new branches or appointing local representatives to handle the goods destined to be consigned in increased quantities; German houses, already established, were also arranging their houses and remodelling their order-books to deal with the expected reorganization of North American trade, all of which proves that a very substantial belief exists in the approaching trade "boom" consequent upon the opening, in 1915, of the Panama Canal.

What attention are British manufacturers and British agents paying to this all-important question? This is very easily answered—None!

The first place in the Imports from European countries into Salvador is given to cotton-manufactured goods, nearly the whole of which, I may again point out, come from Great Britain. In 1906, out of a total of $4,000,000, which represented the value of the imports, cotton goods figured for $1,500,000, or 30 per cent. of the total. Of this $1,500,000, Great Britain was responsible for $974,964, which represented woven goods, in addition to $141,328 representing the value of thread. The United States came second on the list, with textiles valued at $409,072, and thread $2,885, although in the list of this classification America was outranked by both Germany and France, which sold thread to Salvador to the value of $8,349 and $4,160 respectively. These two countries exported textiles to Salvador to the amount of $32,199 and $71,890 respectively, while Italy figured for $54,952.

El Parque BarrÍos.
One of the most beautiful public resorts in Central America.

In this class of goods, practically the same relative status of countries has been maintained on the Import list of the Republic since the year 1876; but it is noteworthy that the position of cotton imports has, in the intervening period, declined no less than 50 per cent. of the total; on the other hand, the value of cotton thread destined for use in the mills of the country has increased fivefold since 1901, while mixtures of woollens, linens and silks have also advanced in value. This is to be explained by the fact that more woollen and cotton mills are gradually being erected in the Republic, and that a great amount of encouraging success is attending their operations. The skill of the native weavers, the improvement of the quality of the cottons, and the industrious lives of the inhabitants, are all factors which have led the Government to consider the advisability of encouraging the growth of the required supply upon a more comprehensive scale. Already, indeed, the Government have commenced, offering export bounties for the surplus stock, with a view to stimulating the culture.

In this connection it is difficult to understand how any intelligent writer, who claims to have visited Salvador with his eyes open, could have published such an utterly misleading and untruthful statement of fact as that which appears in a book entitled "Central America," from the pen of Mr. Frederick Palmer, F.R.G.S., who upon p. 112 of that volume declares that "the only manufactures are from an occasional hand-loom." Mr. Palmer does not inform his readers how many days or hours he remained in Salvador, but apparently they were insufficient to enable him to make himself even superficially acquainted with the industrial conditions of the Republics. He devotes exactly eleven and a half pages out of a total of 340 to this country, and upon nearly each one of these pages he indulges in either an exaggeration or in a misstatement, sometimes in both.

An important factor in the trade relations existing between Great Britain and the Republic of Salvador is found in the Salvador Chamber of Commerce in London (Incorporated), which was established upon the initiative of Mr. Mark J. Kelly, F.R.G.S., in February, 1903, and duly incorporated under licence of the Board of Trade. It will be remembered that the President of the Salvadorean Chamber of Commerce in San Salvador, as well as being its Founder, is SeÑor Don Miguel DueÑas, Sub-Secretary of State for Agriculture. The first President of the Chamber was Mr. C. S. S. Guthrie, of 9, Idol Lane, London, E.C., with Mr. C. Rozenraad, President of the Federation of Foreign Chambers of Commerce in the United Kingdom, as Vice-President. The objects of the Association are to promote the trade, agriculture and industry of Salvador with the British Empire; to keep members informed and acquainted with all matters in connection with the trade of Salvador; and to promote study upon all questions relating to the various international Conventions which concern the trade between Salvador and Great Britain, as well as to act as commercial arbitrators at the request of interested parties, and exclusively in commercial disputes, where the interests of Salvador trade are at stake. The Chamber numbers some forty members, composed of merchants of London and other parts of the United Kingdom doing business with Salvador. Upon his resignation of the chairmanship of the Salvador Railway, Mr. Guthrie also resigned from the Chamber of Commerce, and, at the urgent request of the Council of the Chamber, Mr. Kelly, who with characteristic modesty had refrained from allowing himself to be elected as the first President, accepted the post (which is a purely honorary one), and is now the President of the Chamber.


                                                                                                                                                                                                                                                                                                           

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