The San Francisco Call. Newspaper, November 12, 1905, Page 9

wIRTZ st ESES W N B B » HY doesn’t Ban Francisco do & larger business with entral and South Amer- C. W. Sturdevant repeats end then says, “That answer. Our mer- give as long time ayment of accounts "as do, and so the foretgmer s. Of course it i3 not as ight sound, for credit ned by various consid- sencing the volume and di- trade to urdevent is in charge of the department of the Pa- Museum, and he speaks in an intimate in the He of the far of this colder . , as proud of of Peru and Chile as of ues, “the great n that our merchants have od neither. the people s they sought to serve. ave made a careful study of the others make very takes In consequence of their formation. For example, many s o0 Central American dealers are babit of crating their shipments recisely as if they were intended for a Burope: port where are all the best facilities for handling and trans-shipment. “But in Central America there is very e business at the ports except the mere loading and unloading of cargoes. The cities of commercial importance are located inland where the climate is cooler and more bealthful, and to these citles ments of goods must be trans- ferred. BSometimes there are rallroads, but usually there are only the mule trains to handle freight, and that is where the importance of right packing comes .n, “The cases must be small and compact weighing not more than 150 poun they may be swung one on each side of e burros, 30 pounds making a oad glish shippers are so careful on s point iust very often they have the packing cases fitted with special handles or loops by which they can the more easily be swung Into position 1f & shipper sends down a great case of erockery of rough glassware, weighing half & ton or mere, it has to be repacked ét the port of entry. That means loss by reakage and theft, ana inferior crating further breakage en route, so that the purchaser finaily s the order s short many hich he wants an allowance. er weeks for his complaint to e exporter, the malls all going York, and for the exporter to retusal of the claim, ime @oes not soften his eanwhile the sixty or ninety day" as expired and he has to pay e he has an opportunity e stock. He has had to pay and import charges arrived, so the entire that the mext order is the goods wil he can t will where to allow six months dcaiers in this rices they get enabling ke these liberal adjust- merchants do not of- terms to the Central rican buyers is that, 23 they distrust them— it of one or more un- es that might have th ee ded w care. s a glamour surrounding & nice ¥ order that affects the entire fiice force of ne receiving firm, from to the errand boy. imposing letterhead, the m of the lines of goods Landled, the telegraphic code word and LN J PN ABE all the details that give to the bit of paper its substantial appearance. So as promptly as possible the shipment is made, and when payment is not forth- coming the services of the American Consul are invoked. IHe reports in duw time . that the ‘importer’ {s -insolvent or has removed to a pew fleld, and was not entitied to credit in the first place. ealizing the difficulties of collect- ng by the long und expersive legal pro- cesses of the little republic, the mer- chant pockets his loss ‘and makes his next export quotation for cash against shipping papers. When he doesn't get the order he doesn’'t worry much, be- cause he feels that at least he has npt lost anything. “As a matter of fact there are well- established,” reputable. firms’ throughous &t Central &nd South America Who ars entitled to extreme consideration, ‘and it is not hard to find thein out. “Central American wants are very simple. The- people are either very rich or pitiably poor, so there is no mid- dle class—the great buyers in most countries, Nevertheless they Iimport yuantities of mining and industrial ma- chinery, sewing machines, hardware, glassware, canned goods, paper, leather, hams, whisky and wines, The United States has a good share of this trad. and, though more goes to New York and the Easter: cities than comes San Francisco, the proportion can changed by careful work on the part of our people. A great many dealers here seem to consider the Central Amer- ican trade only when they deplore the fact that this city gets so little of it.” “Perbaps there are so many of thesa’ difficulties, special adjustments and concessions, they do not feel the busi- ness down there is- worth while,” I offer. “But it is worth while,” Mr. rde- vant insists, “and other nations give it their attention with profit. Some of our ocommission men have succeeded splendidly in handling coffee, hard- woods and the fruits from that sec- tion, sending down a ‘general line of merchandise in exchange, and they find as few complications, relatively, as In their domestic trade. The reason Is t they understand the markets and the people. Material prosperity is on the increase and a higher standard of living will open new markets for our goods. In Nicaragua, for example, the Government recently granted a conces- sion covering the use of waterfalls of the Tipitapa River for electric energy, and a new raflroad is planned for early construction. The Tehuantepec Rall- way will be opened this year and there are abundant evidences that the little republics are making rapld progress in es.” to th all “Will the Panama canal—,"” I begin. “In my judgment,” says Mr. Sturde- vant, “the canal and its bullding will terd to make conditions in the whole of Central America more settled and when it is finished SBan Francisco will have a short cut to the eastern coun- tries of South America. But that is in the future and just now we should be paying more attention to the coun- tries on the west slope. One thing the canal will mean to us—a market for our redwood. California redwood Is the ideal timber for use in the bulld- ings to be constructed by the Govern- ment throughout the canal zone, for its fiber resists destruction by the ants and other insects better than any other wood. Our lumber interests have se- cured good contracts already and there will be others as the work progresses. “In South America there is practic- plly no limit for the business if we want to go after it The countries along the Pacific are most progressive, notably Peru and Chile. It would sur- prise you to see what handsome cities they have, what imposing public build- ings, libraries, parks and monuments. The Governments of these two coun- tries are on sound financial footing and their citizens, the Yankees of South America, are forging ahead at a rapid rate. “Chile’s climate, you know, is not un- like our own, and her agricultural YL OADING NITRE AT O TRANSFLEL &) 7o SAETPS T SN RoIDSTEAD N W THE SAN FRANCISCO SUNDAY CALL. . N s preducts are about the same as Cali- foriia’s. A good many years ago, when our attention was devoted entirely to mining, a large part of the flour used here was shipped from Chile, and that country now supplies {ts neighbors with grains and cereals. It happens that a failure of their wheat crop this vear gives us a chance to come to their relief and every ship making South American ports from the north carries a goodly share of our wheat and flour. “It must be admitted that exasper- ating situations do sometimes develop, made the more difficult to bear by rea- son of the impossibility of getting at them cuickly. “For .example. city sent down .seven cases ®f ‘aifferent brands, which were to be turned over. to his traveling salesman When he should arrive in that eity. He sent them in caresf the importing house that has handled\his business there, in: structing them' that all charges should be paid by themselves and draft made on him for the amouat. s “The total value of the small samples was about 315 here in San Francisco and you may imagine the feelings of the ship- per when his bank advised him of a draft for $187 25, drawn by the’Guayaquil firm. Of course he accepted it and we have had an interesting time figuring over the schedule of charges for disem- barkation, import dutles, wharfage, health board, almshouse, storage, muniei- pal tax, gang at custom-house, manifest, stamp tax and so on. One of the most remarkable things is the storage charge in custom-house until Oétober 30, while the goods were in possession of consignee on September 27. “There is some mistake about this and we ehall get-it stralghtened out, but meanwhile it is more than trying. “Altogether, however, the difficulties to be met in the markets of these southern countries are as nothing compared with problems San Francisco has solved in other directions, though they may bring us to a full stop along that line of growth unless careful action is taken by our commercial bodies. We cannot expect to win solely by virtue of the advantages mature has given us.' From the accompanying illustration of Valparaiso, Chile's’ greatest port, It is plain that they who dwell therein have shown due regard for solidity and beauty in building the city. They are not yet content, however, for new plans for im- provement of the water front have been accepted by the Government, plans in- volying the expenditure of more than $13,- 000,000, and when these are accomplished Valparaiso will have facilities for serv- ing expeditiously all vessels engaged in the South Pacific trade. ’ A concession permitting the construc- tion of an electric rallway between Val- paraiso and Saptlago has been granted and there really seems no limit“to the schemes of Improvement that are being undertaken throughout the country. The recent treaty entered into by Bo- livia and Chile, fixing deflnltely( the boundaries over which there has ‘been so much trouble in times past, provides, also, for the construction of rallways to facilitate their commercial interchange. Indeed, so general is the activity in raflway building in the South American countries we are promised that befors a great while the dream of a transcon- tinental line will be realized by connect- ing already existing roads in Brazil, Ar- gentina, Boliyia and Chile. At Callao, Peru's chief port, the great wharves that were built and controlled in monopoly by a French syndicate for a term of years are soon to revert to the Government, in accordance with the provisions of the original charter, and other wharves and docks may then be built by independent companies. These are already projected, some of them, and will become another factor of the com- mercial growth of an important center. According to J. B. Havre, widely ex- perienced in trade with the Latin-Ameri- can republics, the'bounds of San Fran- cico’s business with these peoples is set by our inability to handle their products in exchange. “If,” sald Mr. Havre, “San Francisco could make use of the wool and dry hides from the pasture lands of the south, the copper from Bolivia, or of the crude rub- ber that is so valgable a product of the northern countries, our exchange would immedtately feel the strong upward lift. for eur goods, for the trade of nations, like the trade of individuals, is a matter of exchange. “England and Germany s&nd Eastern United States buy from South America as.well as sell there and so the bulk of to Guayaquil, Meuador, D N LT TG WMERIQS BEE SO - A liquor dealer of this g&g{nplefl miniaturespotties - ,any specifications that seem unreason- R el A% & VR R IR RS ANNRR AN THLE HOST IHPORZTANT PorRr <8 RGCIFLC SOorra” AMERICA tne business is handled in those markets, notwithstanding the fdct that we are so very much nearer and should, by every logic of location, have our share. When manufacturing engages the attention of a larger part of our people we will be able to’use the products of South Ameri- ca and to compete more sharply with other trade centers for the South Ameri- can business. “Our lumber and salmon find extensive sale throughout the south, while in Ecuador, Bollvia and Colombia, there is or may be developed a demand for every- thing we have to sell. Ecuador is al- ready one of the most profitable fields for the business enterprises of the United States and, though our food products and fruits there come into competition with those of Chile, ours are easily superior and when the price is right they find ready market. ‘“‘Never believe the tales that are told of an unwillingness on the part of South Americans to deal with Yankees.' The old proverb, ‘Trade knows no flag,’ al- ways proves its truth and the nation that offers to these buyers the best value for the price asked is the nation that will have their orders. “Too great emphasis cannot be plaged on the short-sighted policy which has led American manufacturers to indicate te foreign buyers what they should order ia a given line. In cottons, and I am in- clined to say that about four-fifths of the imports of South America is in the line of cotton cloth, drill, etc., Manchester and Hamburg have almost a monopoly of the business, notwithstanding the fact that the United States can compete sat- isfactorily im quality and price. But the New England mapufacturer cannot un- derstand why it is necessary to have an even ‘yards in the plece, nor why a combination of red and yellow, as per le that is hideous in his eyes, should seem more to be desired by the South American than any artistic pat- tern of blue and white, popular in our own markets. “He doesn’t consider himself bound by able and fantastic and subsequent orders g0 to manufacturers in other countries, ‘who are less arbitrary in their rulings as to what the population of “the tr(’p(c- shall wear. “This is, by the way, not only so far as our own city is concerned, but it is typleal of an almost national character- istic and so deserves mention.” “It 1s now flve years,” sald Lendal M. Gray, manager of the Kosmos Steam- ship Company’'s interests here, “since our boats began making San Francisco in connection with South American trade. Prior to that time we had come only a8 far north as Guatemala and that seemed a long run from Hamburg. For a year and a half this city was the terminus and we sent out one vessel in six weeks and later one every month, but it was not always posesible to get and we have so increased our facilities that we are now operating on a fort- nightly schedule out of San Francisco, except during the coffee season, when one of our steamships turns back at Guatemala loaded for Europe. “We couldn't possibly maintain that service for this city alone and the way our cargoes are divided will show why. “The Abydos, sailing October 31, car- rled 2550 tons of freight from the sound and 550 tons from San Fran- cisco, The Anubis, the first boat in No- vember, carries 4228 tons out of the sound country and only 880 from this port, “The only reason the shipments from the north ‘are heavier than our own would seem to be that the lumber, grain and flour, their greatest pro- ducts, are well marketed in the Central and South American republics and are ZHECAL CENTRAIL AIMERZCAN full cargoes even when running so in- frequently, and, as some of our patrons ‘were anxious n‘ ship grain and lumber from the Pu Sound country direct to South America, we made a trial ex- on of our service to that place. “It speédily proved a very wise move [ to be had in regular, heavy cargoes, The truth of the matter is that if we did not have these consignments this end of our service would spell financial loss. “If another reason were needed for maintaining Seattle our terminus it is found in the fact that water for the home voyage there costs us practically nothing, as against $200 or more per vessel here supplied, and that coal there costs us less than one-half what it does here. “We want to do everything possible to assist our merchants in getting the business of the south and have been carrying flour and wheat for $2 per ton less to South American ports than we regularly receive for the same freight to Mexican and Central Amer=- ican ports. This has epabled our peo- ple to compete with New York deal- ers in those markets and has been a de- ciding factor In bringing to San Frane eisco and the Puget Sound citles an enormous business in these foodstuffs.” “Are there special difficuities jn caring for the Central and South American trade—difficulties that do not beset & transportation in other ser- vice?” I ask. “Indeed thers a: replied Mr. Gray, “and it will be a good thing for us all, shippers and steamship people alike, when governmental affairs down there become quite stable. “The governments have direct charge of the ports and frequent changes of pelley are worse than trying. We have suffer- ed a great deal of annoyance and delay from quarantine regulations, which re- quire that all vessels be fumigated when entering the port of a new country. We are held up for this three times on each trip, whether north bound or south bound. However, health conditions are so much company Sy S S P tmproved we are having, and expect for the future, less trouble from this source. “The cost of handling cargoes, beth in time and money, is increased by the fact that the ports rarely have wharfage for the sea-going vgssels, which must, there- fore, be anchored from one to three miles out in the roadstead and transfer freight to lighters that come alongside. The crates, kegs and what-not are tumbled out ‘upon each other and roll abeut deing plenty of damage fo these cases not strong enough to stand the strain, and the whole thing has to be gone through with agaln at the landing proper. “By the burning of the large business center of Antofogasta, one of the lead- ing Chilean ports for shipment of copper and nitrate of seda, last June, our bus- imess was seriously interrupted for a time, but other temporary ports were opened while the work of rebuilding was under way and we are now able to load and dischgrge freight with dispated. “Improvements in the service? Yes, In- deed. In the last year we have bought or bullt several mew boats and Director Overweg, who came out from Hamburg last spring. has advised us he expects to run a new steamer of a type especially suited to passenger traffic. That part o our seryice is greatly on the incremse.”