Chapter Vii Industrial Enterprises of United States Citizens in Hispanic America
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CHAPTER VII INDUSTRIAL ENTERPRISES OF UNITED STATES CITIZENS IN HISPANIC AMERICA William wheel right and steam na'.igation in the Pae,fic—Unitcd States steamship lines to Hispanic-American ports—wheelwright as a railway promoter in South Amer- ca—Henry Meiggs as a railway contractor in Chile and Peru—The Madeira and Mamoi-é Railroad—The railroad from Guayaquil to Quito—The Panama Railroad Company—Yankee railway enterprise in, Mexico—Americau international telegraph companies—United States mining companies in Mexico, Central America, Peru, Chile. and Bolivia—Asphalt and petroleum companies in northern South Amenca—The banking facilities of the United States in Hispanic America—The American Interna- tional Corporation—Grace and Cornpany—United States investments In Hispanic. American countries—The construction of the Panama Canal The story of the industrial enterprise of United States citi- zens in Hispanic America is interwoven with the commercial relations between the United States and that vast region. At various points that story is connected with attempts of citizens of the United States to establish steamship lines between Hispanic-American states and other countries. Some notable achievements of Yankees have been the construction of rail- roads in different sections of Hispanic America. United States citizens have attempted to bind North and South Amer- ica closer together by laying submarine cables. In recent years they have established colossal mining plants in Mexico and South America. They have also planted in South America branches of United States banks—banks which seem destined to perform most valuable functions by promoting relations be- tween United States investors and the peoples of Hispanic America. Such manifestations of the industrial enterprise of citizens of the United States in Hispanic America this chapter will consider in some detail. Those citizens evidently helped to make known to the peoples of Hispanic America certain inventions and appliances that had 233 234 HISPANIC–AMERICAN RELATIONS promoted commerce and industry in the United States. The independence of Mexico had scarcely been established when a citizen of the United States named James S. Wilcox was ac- corded the exclusive privilege of introducing steam pumps for use in the mines of that country.' According to the Venezuelan historian, Manuel Landaeta Rosales, the first steamship that navigated the waters of South America was used by Samuel Glover, a citizen of the United States, upon Lake Maracaibo in 1826.' An account of steam navigation in South America—as well as the history of railroad transportation—is inextricably linked with the name of William Wheelwright, a native of Newbury- port, Massachusetts. Wthen a mere lad Wheelwright became a sailor; and in 1828, while acting as captain of a merchant vessel, he was wrecked upon the coast of South America near Buenos Aires. During his sojourn in that city he became inspired with the ideas of Bernardino Rivadavia, who wished to establish a port at Ensenada, to encourage European immigration, and to promote communications between the Argentine seacoast and theAndes.3 On June 16, 1824, Wheelwright was commissioned consul of the United States at the port of Guayaquil, Great Colombia'; his appointment was confirmed by the Senate on January 10, 1825,' and he served in that capacity for several years. He afterwards settled in Valparaiso and engaged in the coasting trade on the Pacific shores of South America. It was during this epoch of his life that Wheelwright conceived the idea of navigating the Pacific Ocean by steam vessels. To republics upon the Pacific this enterprising Yankee directed appeals for concessions which might enable him to carry out his plan. In 1885 Wheelwright said: By the experience which I have acquired during many years of resi- dence in Spanish-American countries I am intimately convinced of the I Cokcci6n de loo, decrcs p ardenta quo he' txpedido to sohna,,a junla provisional gubernalita del vnperio montana, p. 120, Garcia imperial do Moire, November 10, 182: 'Laudneta Rosales, "Contribucióc, del pueblo norte-americano Lila libertad y pro- greso de Venezuela," in Diana do Caracas, Caracas, July 2, 1896 Alberdi. La 'ida p los trabo,jos istdustridcs do William Wheelwright en In AmErica del Sur, pp 88-45. State Department MSS. Dispatches to Consuls, vol. se Senate Exenot.rc Journal, vol. in, pp. 399. *04. INDUSTRIAL ENTERPRISES 235 immense profit which commerce and agriculture will receive through a continuous, rapid, and secure communication among neighboring states and by the establishment of a route of transit for Europe by way of Panama. Among the maritime countries which are most jealous of the progress of their coasting trade are England and the United States where steamship communication has had such protection that new lines of commerce and industry have been opened and great and beneficial results have been produced. To initiate the projected operations I propose to run two steam vessels touching at all the principal ports upon the Pacific coast from Valparaiso to Panama For the encouragement of his project Wheelwright sought the monopoly of steam navigation upon the Pacific coast of the South American republics for ten years, his steamers to enjoy the privileges of their respective merchant vessels. It appears that as early as 1835 lie presented his project to the Government of New Granada. 8 Certain it is that by a law of August 25, 1835, Chile granted him the desired concession in those ports which were open to her own merchant vesscls.° Soon after- wards General Santa Cruz granted him the same concession in ports of Bolivia and Peru.'° With those pledges from South American states Wheelwright proceeded to England. In 1838 he published in London a booklet entitled Statcnwnts and Documents relative to the Establishment of Steam Navigation in the Pacific. The Times discussed the projected Pacific Steam Navi- gation Company and published excerpts from Wheelwright's booklet." This booklet included statistical tables and docu- ments as well as reports of meetings of British residents and merchants in Lima and Callao. Wheelwright thus demon- strated that the establishment of a steamship line between England and South America would reduce the period required for communication between England and the coasts of Peru and Chile from four months to thirty or forty days—an improvement in transportation which would greatly stimulate commerce with South America." • Alberdi, Whed wright, pp 91-93. 'Ibid., p 85 • Ibid. p 83 'Anguita, I..cyes tie Chile, vol. i. p 232; sec furthe, ibid. pp 267,303,304, 336 IC (\Vbeelvrightl. Statements and Doeunie,its relaiwe to the Establishment of Steam Nar(gatton tn the Pacific, pp 39-42. • The Times, February 0, 1838, • twheelwrigltI, lip. 5.6 HISPANIC—AMERICAN RELATIONS Largely because of the interest which the project of Wheel- wright created in London a royal charter was soon granted to the Pacific Steam Navigation Company. Under the direction of the projector two steamships, the Glide and the Peru, were built in Bristol. With those vessels Wheelwright proceeded through Magellan's Strait. On October 15, 1840, he anchored at Valparaiso where he was received with much enthusiasm. His Argentine biographer, the publicist Juan Bautista Alberdi, enthusiastically declared that this achievement of "the noble soldier of industry" deserved as much applause as Balboa's discovery of the Pacific Ocean. In November, 1840, the Peru anchored in the port of Callao where she was visited by Agustin Gamarra, the Peruvian president, who hailed Wheelwright's achievement as the precursor of other agencies of civilization." The first steamships were thus brought to the Pacific shores of South America through the enterprise and perseverance of a citizen of the United States. Some time afterwards, by virtue of a decree of the congress of New Granada, Wheelwright ex- tended the steamship service to Panama." As the voyages of the steamships were much delayed by lack of coal, Wheelwright sought for coal deposits and found them in southern Chile." Today the Pacific Steam Navigation Company is the best monument to the memory of its first manager upon the Pacific coast of South America. Many years passed after Wheelwright brought steamships to Panama before there was a line of steamers plying directly be- tween the United States and South American ports. The only steamships under the flag of the United States which have plied regularly between New York City and Venezuelan ports were established by the "Red D" Steamship Company. That company sent its first steamship, the Feliciana, from New York to Venezuela in November, 1859. Its earliest ships were chartered German vessels which within ten years were replaced by steamers built in the United States for use in the trade with U Alberdi. Wheelwright, pp 118-27 " lEnd., pp 162-434; Rivas, Rdae,ones intanafionale g entre Co!o,ntna p j, E,tados Unidas. p. 96 Alberdi, JVhecl wright. pp 188, 181 INDUSTRIAL ENTERPRISES 237 South America. in 1888 the vessels of the "Red D" Company were making about thirty voyages per year. At that time the company received from the United States Government a little over six thousand dollars annually for the transportation of the mail, besides a nominal allowance for similar service by the Government of Curaçao. By 1890 this company had nine steamships in the South American service, its main line ran from New York to the Dutch island of Curaçao, thence to Puerto Cabello in Venezuela, and thence to La Guaira, the port of Caracas. The vessels returned over the same route. A branch line was established between Maracaibo and Curaçao making regular connections at that island with the main line for New York.' The first steamships flying the flag of the United States in the ports of Brazil were dispatched by John Roach, in 1877 that shipbuilder had secured a ten year contract with the Brazilian Government for the transportation of mail from Brazil to the United States at the rate of about six thousand dollars per voyage.