GUATEMALA

The Country of the Future

GUATEMALA
The Country of the Future
A MONOGRAPH
BY CHARLES M. PEPPER

WASHINGTON, D. C.
1906

CONTENTS.

LIST OF ILLUSTRATIONS.

PUBLIC OFFICIALS.

President and Cabinet.

Señor Don Manuel Estrada Cabrera,
President of the Republic.

Señor Don Juan Barrios, M.
Minister of Foreign Relations.

Señor Don Juan J. Argueta,
Minister of Government and Justice.

Señor Don José Flamenco,
Minister of Public Improvement (Fomento).

Señor General Don Luis Molina,
Minister of War.

Señor Don Guillermo Aguirre,
Minister of the Treasury.

Señor Don J. Antonio Mandujano,
Minister of Public Instruction.

MINISTER AND CONSULS IN THE UNITED STATES.

Señor Don Jorge Muñoz,
Envoy Extraordinary and Minister Plenipotentiary,
Highlands, Washington, D. C.

Joaquin Yela,
Consul General, 2 Stone St., New York City.

D. Kingsland,
Consul General, 1521 N. 11th St., St. Louis, Mo.

Felipe Galicia V.,
Consul General, 421 Market St., San Francisco, Cal.

C. Morton Stewart, Jr.,
Consul General, Baltimore, Md.

Julio Novella,
Consul General, P. O. Box 1374, New Orleans, La.

Shirley Crawford,
Consul, Louisville, Ky.

Gustavo Niederlein,
Consul, Philadelphia, Pa.

Edwin R. Heath,
Consul, 218 Rialto Bldg., Kansas City, Kans.

Benjamin Preston Clark,
Consul, 92 Water St., Boston, Mass.

Vicente J. Vidal,
Vice-Consul, Pensacola, Fla.

Manuel Maria Sama,
Consul, Mayaguez, P. R.

M. Merrow,
Consul, Galveston, Texas.

Andres J. Balliet,
Consul, Seattle, Wash.

Ormond W. Follin,
Consul, San Diego, Cal.

UNITED STATES MINISTER AND CONSULS IN GUATEMALA.

Leslie Combs,
Envoy Extraordinary and Minister Plenipotentiary,
Guatemala City.

Alfred A. Winslow,
Consul General, Guatemala City.

William Owen,
V. & D. Consul General, Guatemala City.

Carl G. Heitman,
Consular Agent, Champerico.

Edward Reed,
Consular Agent, Livingston.

Samuel Wolford,
Consular Agent, Ocos.

Frank Sims Swan,
Consular Agent, San José de Guatemala.

CHAPTER I. A Brief Description.

The Republic of Guatemala, which name is derived from the Indian word "Quanhitemallan," signifying "land covered with trees," has been described as the privileged zone of Central America. This is because of its resources, its climate, and its accessibility.

The country is easily reached from all directions through its seaports on both the Pacific and Atlantic Oceans and through its rapidly growing system of railways. From California, from the neighboring ports of other Central American countries and from Panama there is regular and reliable steamship service on the Pacific coast. On the Atlantic or Gulf side from New York, New Orleans, Galveston and Mobile there is frequent steamship service, while there is also connection at Colon with English and German lines. The steamers on the Pacific coast connect at San José with the Guatemala Central Railway, which affords easy means of arriving at the capital city and the great coffee-raising districts. These are reached by the branch to Mazatenango, which forms a junction with the Occidental Railway between Champerico and San Felipe. On the Atlantic side is Puerto Barrios, which will derive additional importance from the early completion of the Northern Railway and which will place New Orleans within five days or less of Guatemala City, Chicago six days, and New York seven days. Besides the means of communication afforded jointly by the steamship lines and the railroads at an early date there will be complete and uninterrupted railway communication with St. Louis and other points of the Mississippi Valley through Mexico. The means of communication and transportation are given more fully later on.

Geographically the Republic of Guatemala is the heart of intertropical America. It is the most northern part of Central America, in shape like a polygon, with the southern side the longest. It lies approximately between north latitude 13° and 42' and 17° and 49', and between 88° and 10' and 92° and 30' longitude west of Greenwich. Its area is 50,600 square miles—the greatest length from north to south being 360 and from east to west 390 miles. The Pacific coast line with indentations is nearly 400 miles and the Atlantic line about 150 miles in length.

Striking Physical Aspects.

In its physical aspects Guatemala is a country of mountains, tropical forests, lakes and rivers and coast plains. It was described by Humboldt more than one hundred years ago as extremely fertile and well cultivated, and this description holds good to-day, though there are vast areas of rich agricultural land yet open to profitable cultivation and only awaiting immigration to develop their richness.

The Guatemalan Andes consist of three minor mountain systems. These are the northern zone, chiefly of denuded cones, 1,500 to 2,000 feet in height, with plains lying between them; the central zone consisting of ranges and chains running east and west with many marked elevations rising from 7,000 to 14,000 feet; and the southern zone consisting of eruptive chains which culminate in many notable volcanic peaks, some of which are more than 14,000 feet in height. These are known as the Cordilleras and they parallel the Pacific Ocean.

There are three river systems emptying respectively into the Gulf of Mexico, the Atlantic and the Pacific. Some of the streams flowing into the Gulf of Mexico are navigable by steamboats of light draught.

Of the Atlantic tributaries the principal rivers are the Sarstoon, the Motagua and the Dulce; the latter empties into the Gulf of Honduras. Navigation is possible on the Motagua for about 75 miles from the mouth. The rivers flowing into the Pacific include the Paz, the Suchiate, and the Patulul. These have their sources in the Andean Cordilleras or the neighboring highlands. There is also the Michatoya which is navigable for small boats to its confluence with the Maria Linda. Generally speaking, a few of the rivers on the southern coast might be made navigable for short distances with boats of very light draught.

Guatemala has a series of inland lakes which include Izabal, Atitlan, Amatitlan, which are capable of steam navigation; Peten, Ayarza and Guija. The largest of these is Lake Izabal, which is 58 miles long by 12 miles in width and which has its outlet through the Dulce River into the Gulf of Honduras.

The cities and municipal districts having a population of 10,000 and upwards are as follows:

The Handsome Capital City.

Guatemala, the capital, is the largest city in Central America. The location is unusually healthy, being 5,000 feet above sea level. The city is laid out on a splendid scale with many fine avenues and parks. It is improving its system of tramways by changing to electricity as the motor power. The public buildings are especially notable. Among the principal ones are the Palaces of the Government, the Presidency, the Legislative Power, the Judicial Power, the Municipality, and the Archbishopric; the Cathedral and other magnificent churches; the Ministry of Public Improvement (Fomento), the Mint, the Conservatory of Music, the general offices of accounts, of police, and of liquors and internal revenue; the custom-house, the national institutes of young men, of young ladies and of the native race, the first of which is provided with a meteorological observatory; the schools of law, medicine, engineering, polytechny, and arts; the children's college and a large number of public schools; the Colon theatre; the registry of real estate, the national printing-office, the post-office, the National Museum; the military hospital, and the general hospitals, the asylums for the insane and for convalescents and invalids; the central and the Calvary markets; the penitentiary and the artillery, cavalry, and Guard of Honor and San Francisco barracks; San José and Matamoros forts, and a very large number of other imposing edifices. The American Club, which has several hundred members, mostly citizens of the United States, occupies fine quarters.

Some of the parks, plazas, and public drives are adorned with very beautiful marble or bronze statues. Among the principal ones are the bronze monument of Christopher Columbus in the central park and the marble one of the same historic personage in the garden of the Colon Theatre; that of General J. Rufino Barrios and that of Don Miguel Garcia Granados in the boulevard of the Reforma; and that of Friar Bartolomew de Las Casas in the campus of the Institute of the Indian race. The last three statues are of bronze.

The seaports of Guatemala are of a varied character. Their value grows every day because of the increased commerce that is resulting from the development of the country under the industrial policies of President Estrada Cabrera. On the Atlantic the leading ports are Livingston, Izabal, Santo Tomas, and Puerto Barrios. Of these Puerto Barrios is easily first. It lies at the extremity of the Gulf of Amatique, is spacious and is well protected against winds. As the terminus of the Guatemalan Northern Railway it is assured of a very extensive trade both in exports and in imports. Puerto Barrios is not only a receiving and distributing center for Guatemala, but also for a considerable portion of the neighboring Republic of Salvador, which has no port on the Atlantic.

The chief ports on the Pacific side are San José, Champerico, and Ocos. By far the largest amount of business is done through the port of San José, which is the terminus of the Guatemalan Central Railroad. It has extensive quays and other facilities for navigation.

Ocean Transportation Facilities.

Guatemala is well supplied with ocean transportation facilities, several of the steamship companies receiving aid from the government. On the Pacific coast there is the Pacific Mail which maintains a regular fortnightly service with extra vessels during the coffee season and which touches at the ports between San Francisco and Panama. The German line known as the Kosmos puts the Guatemalan ports in communication with the West Coast of South America as well as with the ports of California and Mexico. It carries both passengers and freight. There are also numerous small coasting vessels. It is probable that service will be resumed by the various Chilean lines which formerly proceeded to San Francisco, touching at Guatemalan and other ports, but which of recent years have not gone north of Panama. All the vessels have excellent passenger accommodations.

From the Atlantic ports there are ships engaged in the fruit trade with New York and Boston, some of which carry passengers. Usually, however, passengers prefer to travel by way of New Orleans or Mobile, from either of which cities every Thursday there is a vessel plying directly to Puerto Barrios. The most complete service is that maintained by the United Fruit Company.

In view of the growing development on the Atlantic slope and of the commerce which is certain to result there is an excellent opportunity for an increased steamship service with the ports of the United States. The time could be greatly lessened with advantages both in the transportation of freight and in the benefit to passengers. The policy of the government towards steamship lines both as relates to port charges and to other measures is a most liberal one and every inducement is offered to engage in furnishing additional facilities, which will shorten the time between the different points and increase the frequency of communication.

Growth of Railroad System.

The railway system of Guatemala under the administration of President Estrada Cabrera is certain to be the most useful means of developing the country. Every encouragement is given to capital to engage in railroad enterprises. The general plan includes both an interoceanic railroad and links in the intercontinental or north and south lines. No measure of President Estrada Cabrera's administration has been of greater importance than his action in securing the completion of the Northern Railway, which will be open for traffic throughout its entire length by the end of 1906. This places the capital and the whole interior of the country in direct communication with Puerto Barrios and insures a very heavy decrease in the cost of freight both for the agricultural exports and for the merchandise and other imports. The line runs from Guatemala City to El Rancho and thence to Puerto Barrios. At various times concessions were given for building the different sections, but circumstances caused many of them to be almost abandoned.

In the face of repeated discouragements President Estrada Cabrera took up the subject with resolute spirit and with the sanction of the National Assembly made a contract with a syndicate of which the principals were Sir William C. Van Horne, the celebrated railroad man, who completed the Canadian Pacific Railway in the face of monumental difficulties and who subsequently built the Cuba Central Railway; and Minor C. Keith, of the United Fruit Company, who for a third of a century had been identified with various successful enterprises in Central America. Subsequently the Guatemala Central Railway took a share in the enterprise and also German banking and coffee interests. Under the contract no export duty is to be laid on agricultural exports transported over the railroad except coffee and the Company is given the right to fix its passenger and freight charges on a gold basis. There were many engineering difficulties to be overcome, the chiefest of which was the bridging of the Motagua River. The material for this railway construction was imported principally from the United States, the rails from Maryland and the bridgework across the Motagua and other rivers from Pittsburg.

The importance of this Northern Railway to the development of Guatemala is incalculable. It insures the opening up of a very rich country which means a great addition to the exports of Guatemala and it also should bring a large immigration because of the facilities for easy communication and access to the markets of the United States which it will afford. With the operation of the Northern Railway in connection with the Guatemala Central, the country will have a through railway line from the Atlantic to the Pacific ocean, 270 miles in length. While the interior development is the chief benefit of this through railway system, it is not unlikely that during the years that must pass until the Panama Canal is completed some of the international traffic which cannot be accommodated on the railway line across the Isthmus will find a cheap and expeditious passage across Guatemala.

On the Pacific slope the leading railway system is the Guatemala Central. It was built by C. P. Huntington and is one of the best railroads anywhere south of the Rio Grande. Though of narrow gauge the roadbed was laid for standard gauge, and this change can be made at any time. Unlike most foreign railways the Guatemala Central maintains the American system of checking baggage. Its main line and branches cover the coffee-raising districts of the Pacific coast section of Guatemala. The Occidental Railroad has about 50 miles of track and the Ocos line 20 miles. Both of these are on the Pacific slope.

Comprehensive Railway Policy.

It is worth knowing that while the interoceanic line approaches completion Guatemala is making decided progress in the links of the Pan-American or intercontinental north and south trunk line. From a junction with the Northern a branch will run south to Zacapa and ultimately will be extended into Salvador. Towards the north there is only a section of 30 miles to be completed in order to prolong the Guatemalan system to Ayutla on the border of Mexico and this will be done as soon as the extension of the Mexican lines to the boundary are completed. These extensions are to be finished within two years, so it may reasonably be said that by the end of 1907, if not sooner, a through railway journey will be possible from San Francisco, Chicago, or New York to the capital of Guatemala. The importance of this railway building was shown by Senator Stephen B. Elkins, the chairman of the Senate Committee on Interstate Commerce, in a speech made at the dinner given the Pan-American Railway Committee by the Hon. H. G. Davis. In his speech Senator Elkins said that the freight on coffee, which now approximates $20 per ton or $1,000 on a carload of 50 tons, would be cheapened till it came down to $250 per carload, or $5 per ton.

"The railways of Guatemala are regulated by the provisions of the Commercial Code and by the general railway law known as Decree No. 566, dated February 1, 1898. By the terms of this decree persons or companies seeking franchises are required to submit the plans to the Department of Fomento; when indorsed by that Department the sanction of the Council of State is sought, and finally the approval of the National Legislature. All contracts celebrated by the executive power have to be approved by the National Legislature. The contracts may be with designated individuals, with persons acting for others, or for companies that are to be formed.

"Concessions can be granted with subsidy or without it, guaranteeing or not the capital which may be invested, with an interest proportionate to the product. The Government shall include in the estimates the share of pecuniary responsibilities required for fulfilling the obligation contracted.

"The State may exempt the enterprise from the payment of every class of contributions, from the use of stamped paper and fiscal dues, for the time which it may consider just or opportune, but in every instance the exemptions shall be specified in the contract.

"The right of eminent domain or expropriation for the benefit of grantees holding franchises is enforced. The Government also undertakes to procure uniformity in the gauge and the rails.

"The Government offers every inducement to promote the extension and development of railroads in the country. The best evidence of its policy toward legitimate and genuine capital is shown in the terms of the contract for the completion of the Northern Railroad.

"The engineering difficulties of railroad construction in Guatemala are not grave, as the lines skirt the foothills of the great agricultural regions. The immense natural resources, consisting of the products both of the tropical and the temperate climates, such as coffee, sugar, tobacco, the cereals; the vast pasturage for live stock; the undeveloped timber industries, and the unexploited mines, all open up prospects for profitable traffic."

In addition to its railways Guatemala seeks to maintain a complete system of highways or cart roads. Among the most important cart roads which have recently been built or are now under construction, are those from the capital to San Juan Sacatepequez, San Pedro and San Raymundo. There is also a cart road between Huehuetenango and Quezaltenango; one from Coban to Quiche which will join the departments of the north with the rich western section of the Republic; from Totonicapan to Quiche; that between Ovejero and Trujillo, which will place in communication the departments of Jutiapa and Jalapa; that from Tumbador to San Marcos; that from Solola to Panajachel; that from Chicacao to Nahualate; and finally the highway from San Jeronimo and Rancho San Augustin, which will join the department of Baja Verapaz with Zacapa. All these roads serve as new arteries for the development and the enlargement of commerce and agriculture and this has been the special care of President Estrada Cabrera, who has provided the means for opening, wherever possible, the necessary ways of communication.

Distances between the capital city and the principal points of the country are as follows:

Postal and Cable Service.

The means of facilitating intercourse both among its own people and with the outside world has always been encouraged by the government of Guatemala.

The Republic is a member of the International Postal Union. It has an excellent post-office service, both foreign and domestic. Complete information is given in the Postal Code of the Republic. During the last year the number of pieces of mail received in all the offices of the Republic was nearly 5,000,000, while the mail matter transmitted amounted to 3,653,000 separate pieces. The telegraph and telephone are nationalized and are controlled and operated by the Government, though there are also some private telephone lines in the capital. The national telegraph lines have a total length of about 5,300 kilometers, 3,290 miles, and the telephone lines of 500 kilometers, 310 miles. The number of telegrams transmitted in a given year was 1,106,832. The Government is constantly constructing new lines both for telegraph and telephone service. At the present time there are nearly 200 telegraph offices and about 100 telephone offices. The rates both for telegraph and telephone messages, which are payable in Guatemalan currency, are quite moderate. A telegram of 10 words to any part of the Republic costs about 5 cents in gold. The long distance telephone service is at the rate of about 15 cents for a five minutes' conversation.

The cable service is maintained by the Central and South American Telegraph Company, whose main office is at San José. The following are the charges per word in gold:

CHAPTER II. A Progressive President and His Policies.

Guatemala in order to fulfil its destiny as the country of the future must be assured of stable and progressive government hospitable to foreign capital. To insure these things it is necessary to have the right man at the head of affairs. No one now questions that Guatemala possesses this advantage in the person of Manuel Estrada Cabrera, whose term as President will not expire till 1911.

The best test of any public man entrusted with the responsibility of government is the opinion of disinterested foreign observers whose position gives them the opportunity to judge. This opinion was voiced by Mr. Leslie Combs, the American Minister Plenipotentiary to Guatemala, on the occasion of a New Year's reception by President Estrada Cabrera (1905), when the diplomatic corps called on the President in a body. Speaking for himself and for his colleagues of the Diplomatic Corps Minister Combs on that occasion said:

"Upon such an occasion as this criticism or compliment would alike be out of place, but it may be permitted to mention the wonderful development in Mexico in the past ten years, the great work now in hand to the south and to predict that Guatemala in material wealth and well-being has a great future before her. We hope this will be realized in your next administration and that this year will distinctly mark its advent.

"The wise base their hopes of the future upon their experiences of the past and we look to the peace and order maintained by your administration in the past seven years as a guarantee that your people may expect as much in those that are to follow.

"We remember that called to your position of responsibility by a tragedy you have firmly held the authority with which you have been entrusted. We remember that by the diplomatic settlement of 1902, by arbitration and negotiation, you have settled all the foreign claims of importance against your government and have given rise to not one yourself. We remember that hardly had the ashes cooled after the terrible disaster of Santa Maria when railway spikes were being driven to its base and the Mazatenango Railway opened, that the Northern Railway contract seems to guarantee the completion of that highway to the Atlantic at an early date.

"These achievements in a period of depression, in the face of natural phenomena of almost unparalleled destructiveness, warrant the hope that conditions may enable you to direct the destiny of Guatemala still further along on the highway to that position all hope she may one day occupy. A noble field lies before you. That you may be able to occupy it to the greatest advantage of your country is our earnest wish."

The tribute from Minister Combs, as will be noticed, especially emphasizes President Estrada Cabrera's qualities as a man of achievement. That is the keynote of his character, to do something for his country.

President Estrada Cabrera is a civilian executive. His public life has been that of a lawyer eminent in his profession.

Support of Liberal Principles.

In his participation in public affairs President Estrada Cabrera always has supported liberal principles. It was therefore natural that he should be prominent in the councils of the Liberal party and should become the leader of that organization. His career has been one to familiarize him with all the departments of the government. He served as Secretary of Government and Justice, and it was while, holding this position that in order to investigate a land controversy he went out into the wilderness himself and spent several weeks going over the sections concerning which he desired to be fully informed. The result was that this controversy which had been in dispute for a long term of years was finally settled in the manner most equitable and just for the parties interested. This is the way President Estrada Cabrera works when the interests of the State are involved.

In 1898 when President-General José Maria Reyna Barrios was killed, Mr. Estrada Cabrera was Primer Designado, the position which corresponds to vice-president in the United States and under which he became acting President until an election could be held. At that election he was chosen President by a substantially unanimous vote. An indication of his public policies was given by him when he outlined his programme on coming into the responsibility for the government of Guatemala during the interim which he served in the character of Primer Designado. On that occasion he said:

"My administration will be brief and of a temporary character, but not for that reason shall it be left for History to demand of me a strict account of my acts during this period. I declare in the most solemn manner before my fellow citizens that I wish to hand back the beautiful standard of my country without stain. I desire that the Constitution, the sacred repository of our liberties, be not soiled in my hands. My hope is that all of my compatriots may enjoy the life and public liberties that are rightfully theirs. I wish that all the guaranties may protect them in the moment when they approach the ballot boxes to cast their vote for the person to whom it will be given to direct the destinies of our common country."

It was after this declaration and after several months' experience under President Estrada Cabrera's administration that in September, 1898, the people chose him to fill out the full presidential term and then in 1904 re-elected him for the term which will expire in 1911.

When President Estrada Cabrera became charged with the full responsibility of power in 1898, Guatemala was in the midst of political complications and of a very severe industrial crisis. His first labor was to insure political tranquillity. When this was accomplished he gave all his energies and his talents to developing the resources of the country and to the improvement of public administration. From this point a recent writer, confirming the eulogy of Minister Combs, said:

"Guatemala now enjoys unalterable peace. Her progress is most notable and instead of investing the public funds exclusively in swords and cannons there have been instituted the annual festival of Minerva, the most splendid work of Estrada Cabrera as ruler and as patriot, arousing in this manner in the people the desire for instruction and fostering by all possible means the material progress of the country; giving facilities and opening new ways to traffic and commerce; nourishing industries, science and the arts; beautifying the cities and villages; affording to all the advantages of modern improvements and spreading the knowledge of hygiene among the masses."

A Record of Achievement.

In a general way the administration of President Estrada Cabrera has been described as the political emancipation and the administrative emancipation. The former topic will be considered in the explanation of Guatemala's international relations. The administrative reforms which President Estrada Cabrera has introduced are numerous. He has reduced in a large measure the public debt and has paid almost entirely the recognized foreign claims incurred by previous administrations, has given marked impulse to the construction of highways, bridges, and other public works; has systematically fostered agriculture; has reformed and liberalized the Civil Codes and Proceedings; has extended the system of posts, telegraphs, and telephones; has established patriotic celebrations of an industrial, agricultural, literary and scientific character; has reorganized the army and the branch of military hygiene, has enacted rigorous measures of quarantine against yellow fever, smallpox, and the bubonic pests; has enlarged considerably the public schools and the charitable institutions by constructing the fine Asylum for Invalids and Convalescents which bears his name: has improved the fiscal systems of the municipalities by bringing them to a modern basis, and has secured special advantages in supplying them with light, water, and other municipal necessities.

Generally it further may be said that Guatemala owes to President Estrada Cabrera:

The rehabilitation of her railway system.

The stability of the legal regimen.

Important reforms in land holdings in the interest of the small land owners.

The institution of closer relations with all the nations of the world and especially with the United States.

The restoration of public credit.

A satisfactory immigration policy.

The re-establishment and reorganization of the public school system, and a great variety of other measures which form a solid foundation for the continued development of the country.

Popular Education Promoted.

People in the United States who believe in the "Little Red School House" as the basis of good citizenship cannot fail to appreciate how thoroughly President Estrada Cabrera has made primary education a part of his policy. In the midst of his many measures for the material development of the country he never has lost sight of the moral advancement which comes from the school. He believes in education also as the very best means of creating and fostering the national patriotic spirit. During his first term he published a decree relating especially to the education of the youth of the country. He fixed the last Sunday of October of each year for the celebration of a popular festival throughout the Republic consecrated exclusively to commemorate the education of the youth of the country and requiring that all the directors, professors, teachers, and scholars of all the schools take part in it. This was known as the Festival of Minerva. It is a sentimental recognition of the value of education, and is the complement of the practical steps which have been taken. One of his first measures on coming into the presidency in 1898 was to decree the reopening of the public schools. From that time he exerted himself constantly to elevate their standing by providing them with the best facilities, by reorganizing them in conformity with the most modern plans, and in a word by encouraging their extension and their progress in every sense.