Industrial and commercial South America

Railways

Even more than in Argentina the railways have been developed by British capital. The first concession in 1865 was for a road from Montevideo to the Rio Negro. Construction has been more expensive than on the plains of the neighboring Republic, on account of rolling country and the many bridges required, over 300. There is a single tunnel, in the Department Rocha. Happily all of the railways are of the same gauge, the standard, 4 feet 8¹⁄₂ inches. The length of those in operation is 1680 miles, the greatest in proportion to area of any country in South America.

The Central Uruguay, with its extensions, is the main line from which most of the others branch. The original ran from Montevideo to the Rio Negro in the centre of the Republic, from which it was prolonged to the northern border at Rivera. In May, 1917, closer connection was established with Sant’ Anna, across the Brazilian border, and sleeping car service to São Paulo in 4¹⁄₂ days, which should shortly be 3¹⁄₂. The prolongation is called the Northern Extension. The Eastern Extension starts at Toledo, 16 miles from Montevideo, diverging to San Ramón, Nico Peréz, and Melo, with a branch from Nico Peréz, to Treinta y Tres, 311 miles in all. The Western Extension runs from San José on a branch of the Central, to Mal Abrigo and Mercedes. From Abrigo a line goes to Rosario and Puerto del Sauce, and from Rosario on to Colonia, altogether 211 miles.

Other roads are the Midland and the Northwestern, the former connecting with the Central near the Rio Negro, passing west to Paysandú, then north to Salto, while the Northwestern runs 113 miles from Salto to Cabellos, then northwest to the corner of the Republic, there connecting by an international bridge across the Cuareim River with Quarahim, Brazil, and its Great Southern Railway running northward. At Salto there is considerable interchange of traffic with Argentina through Concordia opposite, an important railway junction and city. At Cabellos connection is made with the Uruguay Northern, another road running to the Brazilian Boundary, the terminus San Eugenio.

The Uruguay East Coast Railway with 78 miles of road, starting from Olmas on the Central Uruguay runs to Maldonado. Much of the traffic is to the seaside resorts, Puente del Este and Piriápolis; there is also considerable freight for the Montevideo market, of agricultural and pastoral products and fish. An extension northward from San Carlos to Rocha is authorized. The road has been purchased by the Government. A line from Durazno on the Central to Trinidad, begun by the Farquhar-Pearson Syndicate as part of a line designed to cross the country diagonally from Colonia to the Brazilian border, was taken over by the Government, which has in view the securing of a system of State railways. Besides building the 31-mile line from San Carlos on the East Coast Railway it intends purchasing the 23-mile line from Rocha to the port Paloma. Further needed construction is planned by the Government as soon as may be practicable.

Aeroplane service is to be installed by a British company from Montevideo to Rio de Janeiro and Pernambuco, and aerial postal service is planned for the interior.

Resources and Industries

Stock raising is by far the leading industry, as is evident from the fact that in 1917 nearly 98 per cent of the exports were of stock products. Of the 44 million acres devoted to livestock and agriculture the latter occupies hardly 5 per cent. In 1603, 100 cattle and two herds of horses were brought into the country; the cattle increased so rapidly that at one time they were killed for their hides, as more recently in Paraguay. Since 1860 when Durham bulls were imported and stock breeding began, much advance has been made in quality. Herefords, Devon, a few Polled Angus and others have also been imported; some for dairy purposes, as Swiss and Flemish. In 1917 the cattle numbered about 8,000,000. The best estancias have sheds to house pedigreed stock, they plant trees and have cattle dips. Societies encourage scientific breeding and the Government subsidizes agricultural shows. One estancia of 60,000 acres has 15,000 cattle, 20,000 sheep, some horses, and pays dividends of 16-25 per cent on a capital of £120,000. Another company with 40,000 acres and a capital of £40,000 pays dividends of 14-20 per cent. At least 20,000 acres are devoted to dairy farming; 50,000 pounds of butter are made monthly, and both butter and cheese are exported. The best of apparatus is employed.

Sheep, imported from Argentina in 1608, flourish to the number of 11,700,000; the varieties of Merino, Lincoln, Romney Marsh are found among others, the English breeds being preferred.

Horses of good quality are raised, 570,000, both light and heavy, but few in comparison to the cattle. There are 300,000 pigs, a few mules, 16,000, and 12,000 goats.

Meat Packing. In 1754 the first meat salting plant was established but the true pioneer dates from 1786. Others followed. There are now 13 besides seven factories for preserving meat and two frigorificos. The slaughter season is from November to January. The meat for saladeros is separated from the bones, dried 4-6 days in the sun, and then salted. It is arranged in four grades according to fat or lean; the fat meat is sent to Brazil, the lean to Cuba and elsewhere.

Of frigorificos the Swifts own one, and exported to Europe in 1915 and 1916, each, over 700,000 frozen quarters of beef and 100,000 chilled; also mutton and lamb. The Frigorifica Uruguaya shipped nearly 44,000,000 pounds of beef to Europe in 1916 and over 2,000,000 pounds of mutton. The total export of animal products shipped in 1916 was worth $73,000,000. A model slaughter house and cold storage plant is in prospect. A new one for wool washing has a capacity of 132,000 pounds daily. Saving in freight cost and immunity from deterioration are thereby attained.

The Liebig Extract of Beef Company, with extensive holdings in and near Fray Bentos and with a total capitalization of £2,000,000 usually pays 20 per cent dividends on the ordinary shares; 5 per cent in 1916. They use the best of meat, and their Oxo capsules and Lemco have a world-wide reputation. They own and rent in Uruguay, Argentina, and Paraguay 1,120,000 acres.

In spite of strikes and labor troubles the livestock industry has brought prosperity to the country, with record prices for beef, mutton, hides, and wool, thus greatly increasing land values. The cattle are pastured on the natural long thick grass, very little alfalfa being cultivated. Hogs, hens, bees, and silkworms are raised. The seal industry and fisheries are important.

Agriculture

The agricultural products are insufficient for the use of the country although 2,000,000 acres are in cultivation. About 900,000 acres are in wheat, 700,000 in corn, 128,000 in flax, 100,000 oats, some barley and canary seed. In 1916 agricultural exports were valued at $1,500,000. Among other crops are tobacco, which is especially promising, linseed, alfalfa, sugar cane, some cotton, potatoes, etc. Viticulture is quite extensive, American grapes growing better in the south, and French and Italian in the north. Other fruits, oranges, olives, apples, pears, cherries, peaches, and melons flourish.

Forestry

Forestry is encouraged so far as planting is concerned; about 1,000,000 acres are in natural forest land. Millions of trees have been planted on land not otherwise useful. The supply of wood in future will be greatly increased and there may even be export.

Minerals

Minerals are of some importance and may become of more. The country is believed to contain considerable wealth in gold, silver, coal, marble, jasper; and in other minerals and semi-precious stones, including amethyst and topaz. There is little export save sand, stone for paving, and similar articles.

Gold. The chief gold fields are in the Department Rivera near Cuñapiru not far from the Brazilian border. A district 35-40 miles long and 7 wide contains auriferous reef with gold 5 ounces to the ton; if deep the prospect is limitless. A modern English plant is now getting out gold. Bars worth $4000 were exported in 1915. Four hundred mines have been denounced in the Department. Enormous quantities of manganese are in the neighborhood. Gold is found also in Minas, Salto, and Tacuarembó.

Copper exists in quantity in Cerro Largo, Maldonado, Minas, Paysandú, and Salto. Iron, silver, slate, gypsum, asbestos, lead, etc. may be exploited later. Even greatly needed coal of fair quality has been found in Montevideo, Santa Lucía, and especially in Cerro Largo where it seems promising, though no working of minerals is sufficiently developed to present decisive results. Indications of petroleum have been noted at the north, the strata coming in from Brazil.

Manufactures

Naturally manufacturing save for home consumption is of slight importance, except of products of the pastoral industry, as of dairies and of meat extract. For home use there are 115 flour mills, 45 others, as of hardware, soap, macaroni; 1 sugar factory, 3 starch, 1 cement, 4 breweries. Many of these are in Montevideo. The Government proposes the construction of chemical factories for the production of sulphuric, nitric, carbolic, and acetic acid, glycerine, benzol, alcohol, sulphuric ether, etc., and a powder and explosive factory; these to cost over $2,000,000, material and machinery to enter free of duty.

An important project of the Government is the development of water power from the cataracts of the Uruguay River, which will be equivalent to 3,000,000 tons of coal per annum. Two dams are planned, one movable and one fixed, with canals by which 419 miles of river will be open to navigation from the lower section. Irrigation is included in the project, and 37,000 acres near Montevideo are to be irrigated as an illustration. Fifteen cities have authorized work in connection with this project.

Investments

Aside from the development of hydro-electric power and the construction of public works of various kinds including railways, it is probable that agriculture and fisheries present the most favorable openings, with good possibilities also in manufacturing industries, stone cutting, and mining. Stock raising is already pretty well developed.