NOTES AND COMMENT NOTES ON THE EARLY TELEPHONE COMPANIES OF LATIN AMERICA

Yankee inventors and financiers of the original telephones were a farseeing and energetic group. Men like Alexander Graham Bell, Fred­ eric Allen Gower, Gardiner G. Hubbard and his nephew Charles Eustis Hubbard, William H. Forbes (son-in-law of Ralph Waldo Emerson), Thomas A. Edison, Jr., Henry S. Russell, and Theodore Newton Vail made vigorous efforts to send their new means of communication speedily to all parts of the world. These men and their allies were the telephone pioneers in most of Europe and Latin America. In the late 1870’s they introduced their telephones into England, France, and Switzerland; before the middle of the next decade they carried them to Belgium, Holland, Denmark, Sweden, Norway, Russia, and Portugal. Their chief agency of pro­ motion in Europe was the International Bell Telephone Company, organized in 1880. The parent organization for promotion in Latin America was the Continental Telephone Company, but its efforts were soon superseded by the Tropical American Telephone Company. In collaboration with subsidiary and associated companies, these two cor­ porations installed the first public telephone exchanges in practically every country in Latin America. The Continental Telephone Company, a Massachusetts corporation, received its charter on January 7, 1880. It was organized by William H. Forbes, Henry S. Russell, George L. Bradley, Theodore N. Vail, Charles Eustis Hubbard, and Charles Emerson. Its main office was in Boston. The Tropical American Telephone Company, a New Jersey corporation chartered on November 1, 1881, also had its principal office in Boston; and it was organized by approximately the same group. Henry S. Russell was its president; its vice president was J. H. Howard and its secretary-treasurer was Charles W. Jones. After obtaining from Bell and his various associates control of their various patents for export and use in Latin America, the Continental Telephone Company established a few companies in Latin America and then ceded its rights to Tropical American, which promptly continued the task of introducing telephones into the neighboring countries. The following is a list of the principal telephone companies existing in Latin

Downloaded from http://read.dukeupress.edu/hahr/article-pdf/26/1/116/748630/0260116.pdf by guest on 27 September 2021 America in 1885, ten years after Bell received his first patent in the United States. The approximate date of the organization of each is given in parentheses. 1. The Electrical Company of Cuba (1883)1 2. The Mexican Telephone Company (1882) 3. The West India Telegraph and Telephone Company (1883?)2 4. The Colombia and Panama Telegraph and Telephone Company (1883?) 5. The National Electricity Company (1883)3 6. The West Coast Telephone Company (1884)4 7. The United Telephone Company of the River Plate (1883) 8. The River Plate Telephone and Electric Light Company (1882)5 9. The Uruguayan Telephone Company (1884) 10. The Union Telephone Company of Brazil (1884) 11. The Inter-Continental Telephone Company (1883)6 12. The Guatemalan Telephone Company (1885) In a few cases the companies included in this list were not the first organizations to set up public exchanges in the countries where they were operating in 1885. The two located in Brazil had been preceded by the Telephone Company of Brazil, organized by the Continental Telephone Company in 1880, and the Urban Telegraph Company, which, under the management of Morris N. Kohn, installed a few telephones in 1882. Three small exchanges had been established in Buenos Aires in 1881, at least two of them by citizens of the United States, before the two Argen­ tine companies in the list, Numbers 7 and 8, began operations. The Chilean Edison Telephone Company, organized by citizens of the United States, had been operating, though rather inefficiently, for four years before the West Coast Telephone Company opened its first exchange. Most of the twelve companies in the list were owned and operated by citizens of the United States. The British participated in the owner­ ship and management of those established in Argentina and Uruguay. Guatemalans had small investments in the Guatemalan company, and a few Uruguayans may have invested in the Uruguayan company. The list has been taken from a two-page sheet published in 1885 by 1 This may represent a reorganization of another company set up in 1881, the Cuba Telephone Company. 2 This company held rights in Puerto Rico, Haiti, and the Dominican Republic. 3 This organization, operating in Brazil, seems to have consolidated with Number 10 in 1885 or shortly thereafter. 4 Principal operations in Chile, but the company established an exchange in Guayaquil in 1885 and another in Lima in 1888. 6 Operating in Montevideo. 6 Operating in Venezuela.

Downloaded from http://read.dukeupress.edu/hahr/article-pdf/26/1/116/748630/0260116.pdf by guest on 27 September 2021 the Tropical American Telephone Company. Another list7 published by the same corporation in 1890 or shortly afterward adds three8 more tele­ phone companies, namely: 1. The Venezuela Telephone and Electrical Appliance Company, Ltd. 2. The Domingo Electric Company 3. The United River Plate Telephone Company, Ltd. The first and third of these were British companies, organized in 1890 and 1886, respectively. The second probably was established by citizens of the United States. For the most part, the history of the telephone in Latin America remains to be written. Between 1921 and 1925 Victor M. Berthold published five pamphlets (New York: American Telephone and Tele­ graph Company) sketching briefly the history of both the telegraph and the telephone in Argentina, Brazil, Chile, Uruguay, and Colombia; but little else of much significance has appeared. The correspondence of the diplomats and consuls of the United States gives surprisingly little sys­ tematic attention to the subject. Annual reports of Latin-American ministers or secretaries of communications contain useful data, but those for the earlier period are not readily available. Publications of the various telephone companies operating in Latin America, their pro­ spectuses, annual reports, and such like, are among the best sources; but they are difficult to locate. Any information regarding files of these company publications will be greatly appreciated by the writer. J. Fred Rippy. The University of Chicago.

NOTES ON AN EARLY ATTEMPT TO ESTABLISH CABLE COMMUNICATION BETWEEN NORTH AND SOUTH AMERICA The completion of the trans-Atlantic cable in 1866-1868 was the inspiration for various attempts to establish such means of communica­ tion elsewhere. Several South American countries were concerned with such attempts. The late 1860’s and early 1870’s witnessed in Peru much discussion of a cable that should connect that country with Panama and with other pos­ sible cables from that point.1 Lima’s El nacional, on June 21,1868, made ’ The two lists, neither of which is dated, were obtained through the courtesy of Arthur H. Cole of the Baker Library, Harvard University. • Really four, including the Guatemalan Telephone Company; but I have placed it on the other list because this company was in existence in 1885.

1 The International Ocean Telegraph Company, under concession from Florida and Spain, laid a cable in 1867 from Punta Rassa, in Florida, to Habana. In 1870 connections

Downloaded from http://read.dukeupress.edu/hahr/article-pdf/26/1/116/748630/0260116.pdf by guest on 27 September 2021 mention of a projected cable that was to run from New York to Aspin­ wall on the Isthmus of Panama, via Habana and Jamaica. The same newspaper, on August 6 of the following year, referred to the proposal of a certain Mr. Ross to lay a submarine cable from Callao to Panama. The editor stated that various others had made similar proposals. Again, on November 6,1869, El nacional reported that Don Mariano Felipe Paz- Soldan (of a very prominent Peruvian family) had just returned from Europe with a plan for the Callao-Panama telegraph line almost finished; half the capital was to be supplied by the London India Rubber Gutta Percha and Telegraph Works Company. Another Lima periodical, La patria, on November 8, 1872, reported that Messrs. Dartnell and Mac- bean had solicited support from the national congress in constructing a cable line from Callao to San Francisco in the United States. Various newspapers, El comercio and others, together with the two mentioned above, in issues of March, 1874, and later, contain references to the subject of such a cable. Some years ago in Peru, the writer, while investigating the activities of Henry Meiggs, came across a series of letters that relate to a proposed telegraph-cable line to connect New York City with Callao, Peru. Though the line failed of being realized at the time, the work then done seems to have been a prelude to the line later constructed. The letters afford some interesting insights into the methods at that time in vogue for the carrying through of such international projects.2* 1 Henry Meiggs, who was to have been a prime mover in the operation, was a North American who had been in South America since the mid- ’fifties and had achieved a resounding reputation as a contractor and railroad builder prior to 1873.3 After twelve years in Chile, where he had dramatically completed the Valparaiso-Santiago Railway and, pre­ sumably, amassed a fortune, he had gone up to Peru early in 1868. There he devoted the remaining ten years of his life to encouraging and assist­ ing in the grandiose scheme of public works that was projected and

were made with Jamaica and Panama. Puerto Rico and Trinidad were soon brought in. By 1873 Western Union had secured control of the International Ocean Telegraph Com­ pany, William Orton becoming president under the reorganization made at that time (Alvin F. Harlow, Old Wires and New Waves (New York and London, 1936), p. 300). 1 These letters are, or were in 1937, among the Meiggs Papers in the possession of the Peruvian Corporation in its Lima offices. They were sometimes referred to as the “Wat­ son Papers” from the fact that Charles H. Watson was president of the corporation that succeeded to Meiggs’s interests on his death late in 1877. The author takes this oppor­ tunity of expressing his appreciation of the courtesy of Mr. Hixson, director of the Peruvian Corporation, and Mr. Hill, his secretary, in permitting him to make use of the papers and in facilitating his doing so. 3 For a brief sketch of Meiggs’s activities, see Watt Stewart and H. F. Peterson, Builders of Latin America (New York and London, 1942), pp. 245-257.

Downloaded from http://read.dukeupress.edu/hahr/article-pdf/26/1/116/748630/0260116.pdf by guest on 27 September 2021 initiated in the republic. In 1873 the reputation of Meiggs was at a high point, and it was quite logical that were a railway, a canal, a cable thought of for any portion of Latin America, this famous contractor should be asked to execute it. The project of the cable originated, it seems, with Simon Stevens, a New York capitalist who was president of the Tehuantepec Railway and Canal Company.4 Stevens’ first contact with Meiggs had been made with the object of inducing him to undertake a task much more ambi­ tious than the construction of a mere cable line. Late in 1872 Stevens had sent an emissary to Meiggs in the person of Hector Chauviteau to offer him “the construction of the Railway, Carriage road, Telegraph line and Canal” of Stevens’ company across Tehuantepec.6 Chauvi­ teau had gone all the way to Santiago, Chile, to see Meiggs, the con­ tractor being then on a visit to Chile, where he still had business interests, as well as two sons. But Meiggs, not in good health at the time, and, moreover, considerably embarrassed financially by his many Peruvian commitments, deferred a decision.6 In his reply to Chauviteau’s letter reporting on his mission, Stevens declared: I will wait for Mr. Meiggs as long as possible, for I find that the probability of his taking up the matter has already reached California, and is arousing immense enthusiasm n his favor there as well as here, and deservedly so.7 Among these letters is one written by John C. Fr&nont. “The Path­ finder” had evidently been informed of the railway-canal project and of the effort to secure Meiggs’s services in realizing it. Perhaps he was asked to assist in propagandizing it. His letter is interesting chiefly as testifying to Meiggs’s fame in his native land (where his reputation had not always been unblemished) and as expressing an attitude toward Latin America which, regrettably, was at that time too common in the United States: 4 The reader should recall that the Gadsden Purchase Treaty of 1853 contains a stipula­ tion to the effect that the United States should enjoy the right of transit by the Isthmus of Tehuantepec with right of protection. 6 Chauviteau to Stevens, New York, January 28, 1873, in Meiggs Papers. • Ibid. 7 New York, February 12, 1873, in Meiggs Papers. The stationery on which this letter is written is remarkable. At the head of the note-size folder is a very elaborate cut, depicting the eagle, serpent, and cactus, with oak and olive branches, of the Mexican national coat of arms. Across the eagle’s breast appears a partly unrolled map of the Western Hemisphere, showing most of North America and the Caribbean Sea with Central America and half of South America; the coasts of Europe, Africa, and Australia also are shown. Tehuantepec is, of course, at the center and from it radiate lines that indicate routes of travel in the North Atlantic and the Pacific in case the canal be completed. The proposed route of the Tehuantepec railway likewise is shown.

Downloaded from http://read.dukeupress.edu/hahr/article-pdf/26/1/116/748630/0260116.pdf by guest on 27 September 2021 Pocaho, near Tarrytown, Sunday 9th February [1873] My dear Mr. Stevens, I have been quite pleased to learn that Mr. Meigs [sic] may undertake the contract for your Tehuantepec enterprise. I hope he will. I knew of him in California and since have followed his successful course in grappling with the crude civilization of the South American coast and forcing our Progress into it. His railroads there were in every sense up-hill work. He certainly has Americanized Chili and Peru and is a striking instance of how the energy and force of one man can impress itself upon a State. I really hope you will have his aid—he has the energy and the will and the clear head to direct them and the- prestige of splendid success—all of which are needed for Tehuantepec. When you write him please say for me that if he undertake this work he will stand the prominent figure in Mexican progress as he already is in that of the South Pacific. I could not see you yesterday but will in a day or two. Yours truly, . J. C. Fremont. Before Meiggs had had time to decide on the railway-canal proposi­ tion, he was approached by Stevens about a different, though somewhat related, matter. In a letter dated “New York, February 12th 1873,” Stevens wrote him, in part, as follows: Last week, in a conversation with Mr. Cyrus W. Field, of Cable Telegraphic fame,. and with Mr. Wm. Orton, President of the Western Union Telegraph Co., and with Mr. Archibald, British Consul Gal. in New York, a discussion was had upon the importance of uniting by telegraphic cables, the Isthmus of Tehuantepec directly with the United States and South America, at Lima. The project was readily admitted to be, not only feasible but valuable. Further investigation demonstrated the great need of having the project put into execution; con­ sequently I prepared some statistics, to not only illustrate, but to maintain the soundness of our premises, a copy of which I have the pleasure to enclose herewith, as a memorandum, accompanied by a map showing definitely what is desired. I propose therefore, that you memorialize the Peruvian Government to grant a con­ cession to Henry Meiggs and Simon Stevens, and to such persons as may hereafter become associated with said Henry Meiggs and Simon Stevens, to lay a telegraphic cable from Callao to the Isthmus of Tehuantepec, in Mexico, and to have the exclusive right to lay and work the same for fifty years, and to connect said cable with such other points on the coast of Mexico, Central America, and South America, as concessions therefore [sic], may be hereafter obtained. However, it might become preferable to ask for a concession on the precise terms of one that, I learn, was granted to parties who proposed to lay a cable to Panama, or to negotiate with those parties [probably Dartnell and Macbean, mentioned above] to consolidate with us, and thereby become a success, which they are not now, nor is there a probability of their becoming so, without the cooperation of our friends. It is claimed that if this project is carried into effect, all the South American Govern­ ments, whose Independence Spain has never yet acknowledged, can have telegraphic communication with the United States and with Europe without going through the cen­ sorship of Spanish officials in Cuba. We propose a branch line from Punta Arenas in Costa Rica, to Panama. This project being carried out, our railway and ship canal project would become con­ nected with commercial centres of not only North and South America, but with all Europe,.. as the United States and Europe are connected with India by cable via Suez.

Downloaded from http://read.dukeupress.edu/hahr/article-pdf/26/1/116/748630/0260116.pdf by guest on 27 September 2021 You are doubtless aware that all cable telegraphic enterprises have, at the outset, government subsidies. Mexico, the Central and South American Republics will, each of them doubtless, be willing to give a fair annual subsidy for ten years, conditioned that each will have the right to telegraph over these lines at the regular rates, preferentially over private business, gratis, to the extent annually, of the amount of their subsidies. The united subsidies, properly proportioned among the respective governments of North, Central and South America ought, for ten years, to be equal to 5% per annum on the cost of construction, estimated at $1,500 per mile, in complete working order It is the impression here, in cable circles, that this project is, par excellence, prefer­ able to all others. If you can obtain subsidized concessions from the South American Governments, I will undertake to procure concessions from the Central American and Mexican Governments. We should be allowed five years in which to lay the cables. Should such concessions be obtained Mr Cyrus Field assures me that he can and will contract to lay the cable within two years. I am authorized by Mr Field and Mr Orton to say to you, that if their names will add strength to the project, you may add theirs to your own, as additional concessionaries. Since commencing this letter, I have received a note from Mr. Archi­ bald, the British Consul General, which I enclose to you, introducing you to the British Minister at Lima, and asking his cooperation in our telegraph matters if he can con­ sistently be of any service to you. With this letter, Stevens sent a lengthy document entitled, “Mem­ orandum: Project for a Pacific coastwise Telegraph Cable from Salina Cruz, on the Isthmus of Tehuantepec, to Peru, in South America, touch­ ing at Guatemala, San Salvador, Honduras, Nicaragua, Costa Rica and Panama, in connection with a Coastwise Cable from Minatitlan, north­ ward to Galveston (Texas), via Vera Cruz, Tuxpan, Tampico and Matamoras, accompanied with a Map.” Tables of distances in the “Memorandum” reveal that from Brownsville, Texas, to the mouth of the Coatzcoalcos on the Isthmus of Tehuantepec was reckoned at 560 miles; from Salina Cruz to Panama, 1,500 miles; and from Punta Arenas, Costa Rica, to Callao, 1,450 miles, making a total distance of 3,650 miles. Other tables of statistics list the areas, population, and the products of the various Central American states. One paragraph of the report runs: The different Republics, commencing with Mexico and ending with Peru, ought to grant concessions and exclusive right for 20 years, and pay an annual subsidy to the company for a certain time, say 10 or 15 years, the governments paying subsidies having the right to send messages for official business, at tarif rate, to the extent of the amount of the subsidies paid. The subsidies to be obtained from Central America may not be so large as those to be paid by South America, because they have not so large a commerce, but still it may be possible, by a proper action, to obtain from them some cooperation to aid in furthering the accomplishment of the proposed undertaking. The nature of the “proper action” mentioned is suggested by two other letters of the series. One is headed and dated, “British Consulate General. New York, February 12/73,” is marked “Private” and reads:

Downloaded from http://read.dukeupress.edu/hahr/article-pdf/26/1/116/748630/0260116.pdf by guest on 27 September 2021 My dear Mr Stevens, I enclose you a letter of introduction of Mr. Meiggs to our Minister at Lima. I am not personally acquainted with Mr Jerningham, but I do not doubt he will do all he con­ sistently can to aid your project—as our (I mean British) commercial interests will be advantaged by the new route. A vastly more important matter than this Tehuantepec Telegraph is the Tehuantepec R. R. and canal. The time has fully arrived when this great work should be carried out. The rapidly increasing commerce of the Pacific Ocean,—which would be increased ten­ fold by the construction of a ship canal at the isthmus of T—, loudly calls for the con­ struction of this important work. I think you said that Mr Meiggs had interested, or was about to interest himself in this undertaking. Whoever shall complete it will be a benefactor to the whole world;—will realize the grand dreams of Columbus, and eclipse the fame of Lesseps. There is, in my mind, no comparison whatever between the world wide importance and value of a Canal between the Pacific and the Mexican gulf—and one between the Red Sea & Mediterranean. The former will be the great work of the age. Wishing you every success in these undertakings, I am my dear sir Yours very truly E M Archibald The other letter, enclosed in an envelope directed to “The Honour­ able W. G. S. Jerningham, &c. &c. &c, British Legation, Lima,” and of equal date, runs as follows: Dear Sir, At the request of Mr Stevens of this City, the President of the Tehuantepec Railway & Ship Canal Company, I beg leave to introduce to you Mr. Henry Meiggs, whose name in connection with extensive engineering works in South America is, doubtless, already known to you. Mr. Stevens [“Smith” crossed out] & Mr. Meiggs are desirous of obtain­ ing from the Peruvian Government a concession for the laying of a Submarine Telegraphic Cable from Lima to the Isthmus of Tehuantepec—-to be connected, at Galveston, with the United States system of Telegraphs, and with the Atlantic Cables. The delay and difficulty in laying the telegraphic cables from Colon to Jamaica, and the peculiar objections to the transmitting of telegrams through Cuba, subject to the censorship of the Government of that Island, render desirable the establishment of an alternate and more direct means of communication between Peru and the United States and Europe. If you can consistently afiord Mr. Meiggs any assistance in supporting his application to the Peruvian Government, you will thereby indirectly promote British Commercial interests which will be benefitted by the Proposed [“project” crossed out] means of telegraphic communication,—and confer a favor upon Mr Stevens, at whose instance I write this, as well as upon Dear Sir, Yours very truly, E. M. Archibald. An additional letter of Consul General Archibald, relating to the cable, may be quoted. It is dated February 19, 1873, and is directed to Stevens: My Dear Sir, You ought to obtain a subsidy of at least 875,000 in gold,—as part should be con­ tributed by Chile, if not by other S. A. Governments.

Downloaded from http://read.dukeupress.edu/hahr/article-pdf/26/1/116/748630/0260116.pdf by guest on 27 September 2021 For the establishment of the short line of cable (short in comparison of the proposed one) from S. Thomas to Demerara the West India Islands—or rather six of the principal ones, pay, in all, a subsidy of $70,000 a year for ten years—by Demarara §15,000, Trinidad $15,000 and Barbadoes $15,000; the others the balance. Though this is not known to have been the case, it may be that the concession which the Peruvian government granted on November 13, 1873, for the laying of a cable from Paita, Peru, to Panama,8 may have been owing to the efforts of Meiggs and the persons whom Stevens and Archibald had attempted to inspire to action. However, the attempt to unite North and South America by cable was, at this time, not successful. Meiggs was on the verge of bank­ ruptcy from 1874 to the time of his death and was in no position to undertake a new venture. Peru’s finances were in a very bad condition. Presumably, the other countries concerned were not flourishing finan­ cially, for it is to be remembered that 1873 and the years immediately following saw a worldwide financial depression. The general situation was not favorable to the success of such an international project as that of Stevens and his associates, and their efforts were in vain. It is significant, however, that when, early in the 1880’s, direct cable connection with South America was finally effected, the line followed almost exactly the route which Stevens and his associates had planned. The cable was the work of James A. Scrymser and not of Simon Stevens.9 The preparatory work of Stevens may well have been of much value to the successful operators. Watt Stewart. New York State College for Teachers, Albany. 8 El comereio (Lima), August 5, 1874. 3 Harlow, op. cit., p. 301. The line was extended to Valparaiso in 1890 (ibid).

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