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I 


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•  •  ••  • 


special  Aesnti  Series  No,  212. 


DEPARTMENT    OF    COMMERCE 

^C,^  BUREAU  OF  FOREIGN  AND  DOMESTIC  COMMERCE 

~  JUUUS  KLEIN,  DbMtor 


SPECIAL  AGENTS  SERIES— No.  212 


VENEZUELA 


A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK 

WITH  A  CHAPTER  ON  THE  DUTCH  WEST  INDIES 


BT 


P.  L.  BELL 

Trad*  Commlssioi 


PRICE,  $1.00  (Buckram) 

Sold  by  the  Superintendent  of  Documents,  Government  Printing  Office 

Washington.  D.  C. 


WASHINGTON 
GOVERNMENT  PRINTING  OFFICE 

1922 


CONTENTS. 


? 


Letter  of  submittal xv 

Introduction .  1 

General  economic  position 1 

Language 2 

Weights  and  measures 3 

Currency 3 

Postage 5 

Telegraph,  cable,  and  wireless  service 6 

Geography,  topography,  and  climate 9 

Geographic  position — Area  and  boundaries 9 

Topography 9 

Mountain  groups 9 

River  systems i 12 

The  great  plains ' 14 

Climate  and  rainfall . _: 15 

Population  and  living  conditions ; 17 

Statistics  of  population 17 

Lack  of  immigration 17 

Centers  of  population  and  commercial  districts 18 

Racial  characteristics 21 

Indian  tribes.^ 21 

The  Negro  element 22 

y        Foreign  colonies 22 

Economic  and  social  conditions 23 

Purchasing  power  of  the  population 24 

Living  conditions 24 

Residences  of  wealthier  classes 25 

Servants  and  wages 26 

Rents 26 

Cost  of  food 26 

Miscellaneous  expenses 27 

Homes  of  the  poorer  classes 27 

Resorts  and  amusements  in  Caracas  district 28 

Conditions  in  small  towns  and  on  ranches  and  llanos 28 

/    Progressive  tendencies 29 

^     Commercial  development 31 

Labor  conditions 32 

Education^ . 35 

National  finance , 37 

Nationkl  Treasury , 37 

Venezuela's  position  as  stated  by  Minister  of  Finance 37 

National  budget  for  1920-21 42 

Agriculture 43 

Zones  of  production — 43 

Lack  of  peculation  in  agricultural  areas 44 

m 

411588 


IV  '  CONTENTS. 

Apiculture — Conttnued.  Pige. 

Govemmental  efforts  for  improvement  of  agriculture 44 

Use  of  agricultural  macliinery 45 

Introduction  of  tractors 45 

Duty  on  agricultural  equipment r ^_.  46 

Statistics  of  imports. 46 

Promising  field  for  American  sales 47 

Principal  agricultural  products 48 

Goifee 49 

Importance  and  general  character  of  industry 49 

Prices  and  grades— 50 

Statistics  of  exports .«_  51 

Effect  of  coffee  market  on  general  economic  conditions 52 

Cost  of  production 54 

New  areas  of  coffee  trees  set  out 54 

Movement  for  better  distribution  of  crop 55 

Effect  of  exchange  situation 55 

Cacao 55 

Tobacco 58 

Grades  of  Venezuelan  tobacco 58 

Production  and  domestic  consumption 59 

Export  statistics 61 

Local  cigarette  factories 62 

Venezuelan  market  for  American  cigarettes 63 

Cotton 64 

Sugar 67 

Rice 67 

General  phases  of  agriculture — Exportation  of  foodstuffs 69 

Land  laws  of  Venezuela .- 70 

Colonization  contract  made  in  1920 71 

Regions  suitable  for  development - 74 

Regulations  governing  concessions  for  lumbering ^ 75 

Law  on  forests  and  waters 75 

Government  aids  to  agriculture 75 

Fiber  resources 76 

Tanning  materials 77 

Mining 79 

General  survey  of  resources  and  operations 79 

Legislation  and  regulations — Bureau  of  Mines 80 

Mining  code 80 

Course  of  mining  development 80 

Decree  of  September  19,  1914 80 

Regulation  of  October  9,  1918 ^ 81 

Aspects  of  activity  in  oil  and  coal 81 

Capitalization  of  certain  companies 82 

Ownership  and  control  of  miscellaneous  minerals 82 

Acquisition  of  mining  claims  other  than  coal  or  oil 82 

Acquisition  of  mining  claims  by  foreigners 84 

Right  of  discovery 84 

Size  and  form  of  claims 84 

Free  ground  between  claims 85 

Term  of  concession  title _  85 

Mineral  deposits  of  free  public  use 85 

Causes  of  cancellation  of  title  or  concession 85 

Water  rights 86 


COKTENTB.  V 

Mining — Continued.  P«b«. 

Payments  to  the  Government * 86 

Formation  of  mining  companies 87 

Right  to  prospect  and  explore  for  minerals 87 

Magnesite  deposits  of  Margarita  Island 88 

Petroleum ^ J 92 

LfOcation  of  oil  fields — Quality  of  deposits 92 

Difficulties  retarding  development 94 

Competition  between  British  and  American  interests 94 

Caribbean  Petroleum  Co. 95 

Colon  Development  Co . : 98 

Venezuelan  Oil  Concessions  (Ltd.).: 98 

British-Controlled    Oilfields    (Ltd.) 99 

Bermudez    Co. 100 

Paujl  Concession : 100 

Compafffa  Petrolea  del  Tachira ^^ 101 

North  Venezuelan  Petroleum  Co.   (Ltd.) 101 

Maracaibo  Oil  Exploration  Co 101 

Colombian  Petroleum  Co 101 

Venezuela  Oilfields  Co.  (Ltd.) 102 

British  Equatorial  Corporation  (Ltd.) - 102 

Various  American  companies ^ 102 

Oil  land  not  under  concession 102 

Refinery  at  Curacao__ 103 

Petroleum  law  of  Venezuela 103 

Taxes — Future  of  industry 104 

Live  stock  and  cattle  raising 106 

Survey  of  development 106 

Oattle-raising  areas  of  the  country ^ 106 

Climate  of  the  llanos 107 

Feed  for  the  cattle:  Natural  grasses,  etc 108 

General  conditions ^ 108 

Exports  of  cattle  from  Venezuela. 109 

Foreign  investment  in  cattle  in  Venezuela^ 110 

Venezuelan  salted  meat  in  Trinidad ^ 111 

Fishing  industry 113 

Manufacturing 115 

Caracas  and  commercial  district 118 

General  considerations 118 

City  of  CJaracas 118 

Location — Physiography  of  surrounding  country : 118 

Area  and  population 119 

Climate . 119 

Attractive  appearance  of  city — Character  of  buildings 119 

Sanitary  measures  instituted 119 

Public  water  supply — Sewerage  system 120 

Bridges^ — Parks — ^Theaters — Hospitals 121 

Foreign  colony 122 

Hotels  and  pensions 122 

Communication  facilities  in  city 123 

Railways  of  Caracas  and  vicinity 124 

Caracas  &  La  Guaira  Railway 124 

Central  Railway  of  Venezuela —  .^ 126 


VI  CONTENTS. 

Caracas  and  commercial  district — Continued. 

Railways  of  Caracas  and  vicinity — Contlniied.  Trnge. 

Gran  Ferrocarril  de  Venezuela 127 

Macuto  Coastline  Railway 128 

Proposed  new  lines 128 

Roads  and  highways  of  Caracas  district 128 

Effect  of  topography . 129 

Enumeration  and  description  of  roads 130 

Notes  concerning  Great  Western  Highway : 133 

Mountain  and  coast  trails . ^ ^^ 133 

Port  of  La  Guaira 135 

Location — Climate — Population 135 

Suburbs  of  Maiquetia  and  Macuto 135 

Character  of  harbor 136 

Wharves,  piers,  and  warehouses 136 

Cargo-handling  capacity  of  the  port 137 

Fuel  for  steamers — Facilities  for  repairs 138 

Industries  at  La  Guaira 138 

Steamship  service 139 

Port  regulations  regarding  passengers  and  their  baggage 139 

Statement  of  tonnage  movement — Imports  and  exports 140 

Port  of  Carenero 142 

Location  of  port — Character  and  products  of  territory  served 142 

Carenero  Railway : 142 

Harbor  of  Carenero 143 

Imports  and  exports  at  Carenero  and  Higuerote 144 

Coastal  region  east  of  Carenero 144 

Points  west  of  La  Guaira — Plans  for  new  seaport 144 

Port  of  Ocumare  de  la  Costa 145 

Commercial  territory  tributary  to  Caracas 145 

Port  of  Guanta  and  city  of  Barcelona 146 

Guanta,  Barcelona  &  Naricual  Railway 146 

Harbor  conditions  at  Guanta — ^Exports  and  coastwise  traffic 147 

Coal  fields  of  Naricual 148 

Extent  of  coal  zone — Important  veins  discovered 148 

Analysis  and  characteristics  of  Naricual  coal 149 

Cost  per  ton,  placed  on  board  at  Guanta 150 

Coal  mines  at  Unare . 150 

Formation  of  Naricual  fields 150 

Official  report  on  mines  owned  and  operated  by  Government 151 

Coal  deposits  outside  of  Naricual  basin 152 

General  description  of  **  Oriente  "  territory 153 

Roads  and  highways  of  Cumana-Carupano  district 156 

Port  of  Cumana 157 

Development — Population — Industries 157 

Cumana  &  Carupano  Pier  &  Tramway  Co 158 

Harbor  and  port  works  of  Cumana 159 

Navigation — Imports  and  exports 160 

Port  of  Carupano 161 

Harbor  and  port  works 161 

Navigation — Imports  and  exports 163 

Rio  Caribe — Cristobal  Colon — Cano  Colorado 164 

Statistics  of  coastwise  traffic 164 

Venezuelan  Navigation  Co 165 

Commercial  position  of  Caracas 166 


cx)NTBNxa  yn 

Caracas  and  commercial  district — OontinQed.  Pmi». 

Methods  of  trade,  credit  terms,  and  progresslTe  tendencies 167 

Industries  of  Caracas  and  vicinity 170 

Produce  for  Caracas  market 170 

Sngar  industry — 171 

Dairying 1 171 

Miscellaneous  manufactures — XBases  of  YeneBuelan  industry 172 

National  cement  factory 172 

Rope  and  sack  factory 173 

Olass  factory 173 

National  match  factory :— •. 173 

Chocolate  and  candy  factories 173 

Breweries — ^Tiling,  mosaic,  and  cement-pipe  factory 174 

Cigarette  factories ^-_ 174 

Cotton  factories 174 

Shoe  shops — ^Furniture  shops — Biiscellaneous  activities 175 

Wearing  apparel 176 

Manufacture  of  soap 177 

Tanning ! 177 

Liquor  factories — Starch  factories — Machine  shops  and  foundries-  178 

Companies  listed  on  Caracas  Bourse 178 

Industrial,  professional,  and  conmaerdal  statistics 179 

Maracalbo  conmierclal  district 181 

Location  and  territory 181 

Topography _ 183 

Climate 184 

Health   conditions ^ 185 

Population :  Distribution  by  States,  districts,  and  capitals 186 

Cities  and  towns — Commercial  distribution  and  trade  routes 187 

Maracalbo 187 

Other  towns  in  State  of  Zulia 189 

Towns  and  routes  in  State  of  Tachira 189 

Towns  and  routes  in  State  of  Merida 191 

Towns  and  routes  in  State  of  Trujillo 192 

Economic  possibilities  of  Andean  States 192 

Characteristics  of  inhabitants 192 

Living  conditions — Modern  improvements , 193 

Travel   conditions . 193 

Freight   costs . 195 

Effect  of  road  building  on  markets  for  goods 196 

Salesmen's   routes ,^ 196 

The  port  of  Maracalbo 197 

Ocean  steamship  service 197 

Lake  boats 197 

Harbor  and  dock  improvements 198 

Coastwise  traffic  of  Maracalbo 198 

Cucuta,  Colombia,  and  its  trade  with  Maracalbo 198 

Agriculture  in  Maracalbo  district 200 

Area  of  cultivation 200 

Coffee 201 

Grades  and  prices 201 

Distribution  of  production 202 

Exports  from  Maracalbo 203 

Coffee  production  and  market  conditions,  1920-21 204 


Vm  COlSrTBNTS* 

Maracaibo  commercial  district — Continued. 

Agriculture  in  Maracaibo  district — Continued.  Ptge. 

Cacao ^  205* 

Sugar 206 

Survey   of  development 2Q6 

Sugar  estates  and  their  production  in  1920 206 

Effect  of  high  and  low  prices = 209 

Corn 209 

Wheat - 210 

Potatoes 210 

Fruits r. ^ 210 

Coconuts - 210 

Rice 210 

Hat  fiber — 210 

Cotton i. 211 

Hides  and  skins 211 

Forest    products 21 2 

Mining-'--^ 213 

Asphalt    resources ^ 213 

Coal    mining i 214 

Deposits  on  island  of  Toas;. 214 

Deposits  of  River  Limon  district 214 

Proposed  coal  port  of  Castilletes 217 

Railways _ 217 

Gran  Ferrocarrll  de  La  Ceiba 218 

Gran  Ferrocarrll  del  Tachira 218 

Ferrocarrll  de  Santa  Barbara  a  El  Vigia 219 

Outlook  for  future 220 

Industries 221 

Banking 222 

Foreign  bank  branches 1__  223 

American  Mercantile  Bank 223 

Banco  de  Maracaibo 224 

Banco  Comercial  de  Maracaibo 224 

Aspects  of  recent  banking  business 224 

Business  houses  and  commercial  methods 225 

Foreign  trade  of  Maracaibo ' 227 

Trade  by  countries 228 

Principal  exports 228 

Exports  invoiced  for  United  States 229 

Statistics  of  imports 230 

Importations  by  parcel  post — Coast  traffic 231 

Conclusions  and  recommendations 232 

Puerto  Cabello  and  Valencia  commercial  district 233 

Location  and  territory 233 

Topography  and  climate , , 233 

Characteristics  of  inhabitants 235 

Population:  Distribution  by  States,  districts,  and  capitals 235 

Cities  and  towns — Commercial  distribution  and  trade  routes.' 237 

Valencia 237 

Montalban 239 

Nirgua 239 

Yaritagua 240 

San  Felipe 240 


COKTENTS.  IX 

Puerto  Cabello  and  Valencia  commercial  district — Continued. 

Cities  and  towns — Commercial  distribution  and  trade  routes — Con.  Page. 

Guigue -.^^ 240 

Towns  east  of  Valencia 240 

Towns  in  State  of  Cojedes..-. 240 

Guanare  and  Barinas 241 

Barquisimeto —  241 

Coro  and  Capatarida 242 

Puerto    Cabello 242 

Tucacas  and  Chichiriviche 243 

La  Vela  de  Coro 245 

Agriculture : 246 

Area  of  cultivation 245 

Labor  conditions 247 

Excess  production  and  future  increase - 248 

Methods  of  cultivation 250 

Cotton 251 

Rice 252 

Tobacco 253 

Coffee 254 

Cacao 255 

Other  agricultural  products 256 

Forest  products 257 

Mining  and  petroleum '—  257 

Copper 257 

Gold - 259 

Petroleum 259 

Coal 259 

Manufacturing  Industries 261 

Factories  of  Puerto  Cabello 261 

Factories  of  Barquisimeto 262 

J<>actories  of  Valencia 262 

Cottonseed-oil  industry 263 

Live  stock 264 

Transportation 266 

Puerto  Cabello  and  Val«icia  Railway 266 

Bolivar  Railway 268 

Coro  and  La  Vela  Railway 269 

Highways 270 

Trails 271 

Waterways 271 

Statistics  of  foreign  trade 271 

Commercial  methods 1 273 

Extent  of  trade  and  volume  of  business 274 

Tendency  of  trade  with  United  States 276 

Ciudad  Bolivar  commercial  district 278 

Location  and  territory i 278 

Topography 278 

Survey  of  Territory  of  Amazonas 281 

Climate — Flood  stages  of  lower  Orinoco 284 

General  survey  of  State  of  Bolivar__j 285 

Ciudad  Bolivar 286 

River  port  of  San  Felix 287 

Falls  of  the  Caroni — Water-power  rights  and  related  projects 288 


X  CONTENTS. 

Ciuaad  Bolivar  commercial  district — Continued.  Page. 

Transportation . 289 

River  transportation 289 

Foreign  steamer  service 291 

Overland  transportation 291 

Agriculture ^ 294 

Live-stock  industry 296 

Food  products  exported  to  Trinidad 297 

Mining 297 

Geology  of  district 298 

History  of  Guayana  gold  fields 298 

**E1  Callao"  gold  mine : 301 

Gold-mining  companies 803 

Labor  conditions  in  gold  fields . 304 

Methods  prevailing  in  industry 305 

Gold  production  in  Ciudad  Bolivar  district  by  companies— 305 

Iron  deposits  of  Imataca 305 

Forest  products 307 

Fine  hardwoods 307 

Rubber__ 309 

Areas  of  production 309 

Methods  and  conditions  of  industry 310 

Exports  of  rubber 314 

Balata 314 

Methods  and  conditions  of  industry 314 

Exports  of  balata 317 

Price  quotations 318 

Future  of  industry 318 

Chicle 318 

Conditions  of  industry 318 

Exports  from  Ciudad  Bolivar — ^American  imports  from  all 

Venezuela  - 319 

Tonka  beans    (sarrapia) 319 

Cebadilla 320 

Balsam  of  copaiba 321 

Other  forest  products,  not  exported r 322 

Angostura  bark 322 

Quina 322 

Sarsaparilla 322 

Ipecac 323 

Kapok •  323 

Vegetable  waxes,  etc , 323 

Trade  in  hides  and  skins Jt 323 

Aigrette  plumes 324 

Kinds  of  birds 324 

Development  and  character  of  industry 325 

Progress  of  breeding * 326 

Process  of  collecting  plumes 326 

Seasons  of  exportation 327 

General  notes 327 

Statistics  of  exports 328 

Commerce  and  trade  of  Ciudad  Bolivar  district 328 

Banking__^ 329 

Commercial  methods 329 


OOKTEKxa.  XI 

Ouidad  Bolivar  commercial  district — CJontinued. 

(Commerce  and  trade  of  Gindad  Bolivar  district — Continued.  Page. 

Volume  of  trade 330 

Futmre  aspects  of  trade  with  Giudad  Bolivar 331 

Transportation « 832 

Ocean  steamship  service -,..-. * 332 

Lines  touching  at  Venezuelan  ports 332 

Gompetitive  freight   rates   and   combination   to  control   ocean 

freight , ' ^^  334 

Venezuela's  trade  with  New  Orleans 335 

Railways - 336 

Extent  and  character  of  lines — Freight  and  passenger  rates 336 

Total  cargo  movement . : 337 

Extensions  and  new  construction 337 

Competition  from  cart  roads..^ ^ 338 

Railway  laws ^ 339 

List  of  lines—Technical  data— Capitalization 340 

National  system  of  highways 346 

Development  of  road-bulldlng  program 346 

Great  Western  Highway 347 

Great  Eastern  Highway - 347 

Lists  of  roads 348 

Highway  legislation 350 

Funds  allotted  to  road  construction 350 

Road-bulldlng  specifications — ^Method  of  construction — ^Materials 

used -__ 350 

Use  of  a  road-making  machinery 352 

Venezuela  as  an  automobile  market : 354 

Shipments  of  motor  vehicles  from  United  States  to  Venezuela 354 

Market  fluctuations 355 

Average  prices  of  cars  and  trucks  imported 355 

Total  imports  of  automobiles 355 

Customs  duties , 356 

Agencies ^ 356 

European  competition - 356 

Taxes  Imposed  by  Government  on  trucks  and  cars 357 

Foreign  trade , 358 

Totals  for  Venezuelan  commerce 358 

Export  figures : 359 

Import  figures 361 

Venezuelan  commerce  during  1917,  1918,  and  1919 364 

American  trade  with  north-coast  countries 367 

Summary  of  Venezuelan  trade  conditions  In  1920 !__  367 

Unfavorable  financial  condition 368 

Effect  of  exchange 369 

Outlook  for  future ! 369 

Parcel-post  trade 370 

Banks  and  banking 374 

Lists  of  native  and  foreign  Institutions 374 

Bank  of  Venezuela 874 

Bank  of  Caracas 376 

Bank  of  Maracaibo , , 378 

Commercial  Bank  of  Maracaibo 378 

Deschanel  International  Corporation 378 

Hollandsche  Bank  voor  West-Indie , 378 

Character  of  business  carried  on  by  native  banks 379 


XII  CONTENTS. 

Banks  and  banking — Continued.  FaKe. 

Progress  of  banking  system. 379 

Business  of  foreign  banks '. 379 

Factors  affecting  banking  activities 1 380 

Handling  of  drafts 380 

Gold  and  silver  coin  in  Venezuela 380 

Interest  paid,  banking  methods,  etc_j 382 

Effect  of  foreign  bAnks 382 

Stamp  taxes  in  connection  with  drafts 383 

Banking  laws  of  Venezuela - 383 

Banks  of  deposit 384 

Banks  of  issue 385 

Mortgage  and  real-estate  banks 386 

Recent  banking  legislation 386 

Tariff  system  and  regulations  on  import  trade 387 

General  character  and  purpose  of  tariff  system 387 

Articles  admitted  free  of  duty 387 

Treatment  of  imports  from  various  countries 389 

Translations  of  tariff  law  available 389 

Method  of  imposition  of  import  duties 390 

Classification  of  goods  for  duty  purposes 390 

Dutiable  weight 390 

Surtaxes 390 

Dutiable  value 391 

Examples  of  calculation  of  duties 391 

Special  regulations  on  certain  imports 392 

Explosives  and  firearms 392 

Pure-food  regulations 392 

Pharmaceutical  products 392 

Sanitary  preparations  and  equipment 393 

Internal  taxes  on  tobacco  and  liquors : 393 

Shipping  instructions  and  customs  regulations 394 

Consular-invoice  regulations  and  fees 394 

Warnings  for  preparation  of  shipments  and  documents 395 

Bills  of  lading — Insecurity  of  "  to  order  "  shipments 396 

Shipments  by  parcel  post ^ 397 

Customs  entry  of  imports 398 

Customs  penalties  for  irregularities 399 

Appeals  possible  against  certain  customs  penalties 400 

Need  for  greater  care  by  American  exporters 400 

Commercial  travelers*  regulations 401 

Customs  treatment  of  samples  and  advertising  matter ; 401 

Commercial  practices  and  requirements 403 

Slight   specialization   in   merchandising — Tendency   toward   modern 

methods 403 

Services  of  export  commission  houses 403 

Necessity  for  personal  representation 404 

Territory  of  agents 404 

Credits ^ 405 

First  orders — The  getting  and  holding  of  trade 406 

Means  to  attain  proficiency 407 

Negligent  factories 407 

Proper  packing  for  Venezuela 408 


ooKTEim.  xni 

Ck>nimercial  practices  and  requirements — Continued.  tm&. 

Damage  caused  by  careless  handling 409 

Importance  of  registration  of  trade-marks 410 

Legal  registration  of  drugs  and  patent  medicines ^ ; —  411 

Registration  of  foreign  companies ! 411 

•    Registration  of  typewritten  documents 412 

Effective  methods  of  advertising . , 412 

Trade-promotlve  efforts  of  Venezuelan  Government  and  citizens 414 

Markets  for  specific  classes  of  merchandise 416 

Bags  and  sacks 416 

Canned  goods 417 

China,  glass,  and  enameled  ware 419 

Dairy  and  meat  products 420 

Drugs,  medicines,  and  other  chemicals 423 

Gloves 424 

Hardware,  tools,  and  other  steel  products 425 

Hats  and  hat-making  supplies 427 

Liaces  and  embroideries _ 428 

Optical  goods 429 

Rubber  goods ! 430 

The  Dutch  West  Indies 432 

Location,  area,  and  population 432 

Administration ^ 432 

Topography  and  climate 1__ 434 

Characteristics  of  Inhabitants !_  435 

Language 435 

Weights  and  measures 436 

Postage  and  parcel  post 436 

Currency 436 

Rates  of  exchange 437 

Banks  arid  banking ; 438 

The  port  of  Wlllemstad 440 

Industries  and  resources 1 441 

Live  stock 441 

Fishing — 442 

Salt  Industry 442 

Panama-hat  industry.! : 442 

•*  Curacao  "  liqueur 442 

Mining  and  minerals 442 

Agriculture 443 

Markets  for  specific  classes  of  merchandise 444 

American  fiour,  corn  meal,  and  lard _ 444 

Meats,  canned  goods,  etc 444 

Manufactured  goods,  drugs,  and  chemicals 445 

Building    materials — Machinery 445 

Motor  vehicles _ 445 

Petroleum 446 

Commercial  significance  of  Curacao — c 447 

Extent  and  character  of  trade 449 

Foreign-trade  figures 452 

Statistics  of  imports 452 

Exports  from  Curagao  to  United  States 453 

Ships  entering  Curagao 454 

Textile  trade 454 

Tariff 454 


XrV  COKTBNTS. 

The  Dutch  West  Indies — Continued.  Pasii. 

Accommodations  for  travelers 455 

Cable  and  wireless  service 456 

Monographs  and  trade  lists  relating  to  Venezuela :»  457 

Department  of  Commerce  monographs 457 

Trade  lists  available 457 

Index 459 


ILLUSTRATIONS. 


Fio.  1.  Central  University  of  Venezuela,  Caracas facing—  i 

2.  "Colegio  de  Nifias"    (Girls'  Seminary)   in  El  Paraiso  district, 

Caracas facing—  36 

8.  Bird*s-eye  view  of  Caracas,  looking  south facing—  37 

4.  View  of  La  Guaira facing.^  37 

6.  Map  showing  Venezuelan  petroleum  deposits 93 

6.  Interior  of  paper  mill,  Maracay facing—  116 

7.  Caracas- Valencia  Highway :  Macadam  work  near  Caracas-facing—  117 

8.  Map  showing  commercial  territory  tributary  to  Caracas— facing—  120 

9.  Avenida  del  Paraiso,  Caracas facing—  128 

10.  Private  residence  in  Caracas facing__  129 

11.  "Lactuario"  (creamery)  at  Maracay facing—  144 

12.  Port  of  Ocumare  de  la  Ck)sta facing—  145 

13.  Map  of  Maracaibo  commercial  district 182 

14.  Map    showing    commercial    district    of    Puerto    Cabello     and 

Valencia , facing—  234 

15.  "Telares"  (textile  mill)  in  Valencia facing__  238 

16.  Interior  of  packing  house,  Puerto  Cabello facing—  239 

17.  United  States  consulate,  Puerto  Cabello facing—  .   260 

18.  Water-front  scene,  Puerto  Cabello facing—  261 

19.  Map  showing  commercial  district  of  Ciudad  Bolivar facing—  278 

20.  Map  showing  islands  of  Curacao,  Bonaire,  and  Aruba,  in  Dutch 

West  Indies 433 

21.  General  map  of  Venezuela facing_«  458 


LETTER  OF  SUBMITTAL, 


Department  or  Commerce, 
Bureau  of  Foreign  and  Domestic  Commerce, 

Washington^  December  i,  1921. 

Sir:  There  is  submitted  herewith  a  handbook  of  the  Republic  of 
Venezuela,  with  an  additional  chapter  on  the  Dutch  West  Indies,  of 
which  the  principal  island,  Curagao,  has  close  commercial  relations 
with  the  ports  of  the  Venezuelan  littoral.  The  author  is  P.  L.  Bell, 
a  trade  commissioner  of  this  Bureau,  and  the  book  is  similar  in 
general  plan  and  treatment  to  his  commercial  handbook  of  Colombia, 
Special  Agents  Series  No.  206. 
EespectfuUy, 

JuMus  Klein, 
Director  of  Bureau* 
To  Hon.  Herbert  Hoover, 

Secretary  of  Commerce. 


NoTB. — ^All  conyersions  from  bolivars  to  dollars  in  this  handbook  have  been 
made  at  the  normal  rate  of  $0,193  to  the  bolivar. 

XVI 


VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 


INTRODUCTION. 


GENERAL  ECONOMIC  POSITION. 


Of  all  the  South  American  Republics  none  is  more  worthy  of  study 
by  American  interests  than  Venezuela,  not  only  for  trade,  but  as  a 
new  field  for  the  development  of  ijatural  resources,  raw  material,  and 
engineering  projects.  There  are  difficulties  to  be  encountered,  but, 
unlike  some  other  Latin  American  countries,  Venezuela  possesses  a 
number  of  excellent  natural  harbors  along  its  coast,  from  which  enor- 
mous areas  of  level  open  land  are  easily  accessible,  with  a  certain 
degree  of  transportation  facilities.  In  many  places,  too,  the  dis- 
tances are  not  great  nor  the  terrain  very  difficult  to  the  rich  and 
undeveloped  lands  lying  just  to  the  south  of -the  low  Coast  Range 
and  extending  from  the  Orinoco  delta  on  the  east  to  the  Venezuelan 
Andes  on  the  west. 

The  country  lacks  sufficient  native  population  for  the  development 
of  agriculture  on  a  large  scale  in  all  its  favorable  regions,  but  the 
two  great  resources  of  the  country  that  are  the  objects  of  immediate 
development — cattle  and  petroleum— :do  not  call  for  the  amount  of 
labor  required  by  general  agriculture. 

The  "llanos"  or  "pampas"  lie  south  of  the  Coast  Range  from 
east  to  west  for  approximately  650  miles,  from  the  headwaters  of  the 
Rio  Apure  in  the  Venezuelan  Andes  eastward  to  the  Eio  Vagre,  the 
dividing  line  of  the  Orinoco  delta  country,  and  have  an  average  mean 
depth  of  200  miles  from  the  line  of  the  Coast  Range  south  to  the 
Rio  Apure  in  the  western  half  and  to  the  Orinoco  in  the  eastern  half. 
This  area,  containing  approximately  130,000  square  miles,  has  been 
compared  to  the  great  pampas  of  Argentina,  although  conditions  are 
more  tropical.  If  the  regions  of  the  Ventuari  and  the  plains  of 
Sarari  are  included,  the  total  cattle  range  area  would  be  156,610 
square  miles. 

One  foreign  oil  company  has  drilled  86  wells,  many  of  them  pro- 
ducing; one  refinery  is  in  operation,  and  there  are  so  manj'^  indica- 
tions of  petroleum  in  many  parts  of  the  country  that  conditions 
already  border  on  an  oil  "boom." 

Minmg  is  in  its  infancy,  although  Venezuela  has  to  its  credit 
several  large  producers.  Gold  and  copper  are  the  principal  metals. 
Large  deposits  of  good  coal,  easily  accessible  to  the  coast,  are  found 
in  the  extreme  western  central  coast  region  and  to  the  east.  They 
have  received  considerable  attention  from  the  Government  and  sev- 
eral foreign  companies.  In  Venezuela  is  also  found  one  of  the 
largest  and  best  iron-ore  deposits  in  the  world.  High-grade  asphalt 
occurs  in  large  quantities  in  the  Orinoco  delta  region.  Other  im- 
portant mineral  resources  include  sulphur,  magnesia,  kaolin,  etc. 


79747*— 22- 


^  Z  VENEZUEIA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Venezuela's  exports  of  coflfee,  cacao,  hides,  forest  products,  etc., 
can  not  be  increased  materially  without  an  increase  in  the  present 
population.  Industry  was  greatly  stimulated  during  the  war  by  the 
high  prices.  There  are  now  two  paper  mills  (none  existed  before)  and 
several  new  cotton  mills  and  sugar  mills,  besides  numbers  of  small 
shops  that  make  articles  formerly  imported  from  Europe  and  the 
.  United  States. 

Another  effect  of  war  conditions  was  the  increase  in  the  produc- 
tion of  native  cotton,  lard,  and  cereals.  The  production  of  corn  in 
1918  was  sufficient  to  permit  exportation  to  the  United  States  and 
to  Cuba,  and  there  were  heavy  shipments  of  lard  also  to  the  latter 
country. 

Prior  to  the  war,  except  for  imports  of  certain  classes  of  cotton  tex- 
tiles, foodstuffs,  cement,  typewriters,  sewing  machines,  and  other 
American  specialties  in  which  Europe  does  not  compete,  the  main 
channel  of  trade  and  importation  had  been  with  European  coun- 
tries, principally  Germany,  the  United  Kingdom,  and  France.  These 
countries  had  for  many  years  made  a  careiul  study  of  the  merchan- 
dise requirements  of  Venezuela,  backing  their  efforts  with  long  credit 
terms  for  the  sale  of  their  products  and  facilitating  the  marketing  of 
Venezuela's  exports. 

With  the  outbreak  of  the  war,  and  with  their  former  trade  channels 
entirely  or  partly  cut  off,  Venezuelan  merchants  were  forced  to  turn 
to  the  united  States  to  fill  the  demands  of  their  trade,  and  they  have 
increased  their  purchases  in  the  American  markets  to  an  enormous 
extent.  But  representatives  of  European  business  houses  held  their 
ground  in  Venezuela  during  the  war  remarkably  well ;  many  have  re- 
turned to  the  country  since  peace  has  been  declared,  eager  to  take  up 
the  old  relations  and  to  develop  them ;  and,  as  a  rule,  Venezuelan  im- 
porters have  found  it  difficult  to  understand  conditions  that  devel- 
oped in  the  United  States  during  the  war  period  as  a  result  of  the 
world's  demand  for  goods  and  materials,  and  are  looking  forward  to 
the  renewal  of  trading  with  Europe.  At  present,  however,  the  gen- 
eral trade  influence  is  still  strongly  American,  and  with  the  increasing 
visits  of  Venezuelan  business  men  to  the  United  States  and  the  great 
volume  of  business  during  and  immediately  following  the  war,  Amer- 
ican interests  have  gained  a  marked  advantage,  which  can  be  perma- 
nent if  they  realize  in  time  the  danger  of  competition  from  Europe 
after  its  return  to  normal  conditions  of  production  and  commerce. 

To  retain  this  trade  with  Venezuela  and  to  increase  it,  the  keynote 
should  be  an  intensive  cultivation  of  the  personal  relation  with 
Venezuelan  business  men;  better  attention  to  the  commercial  pos- 
sibilities and  industrial  enterprises  that  need  only  capital,  ingenuity, 
and  ability;  and  a  close  and  detailed  study  of  the  potentianties  oi 
the  country.  Study  of  the  merchandise  needs  and  requirements  and 
attention  to  the  details  of  exporting  are  absolutely  essential.  Amer- 
icans who  display  an  ihterest  in  Venezuela  will  be  met  more  than 
halfway  by  Venezuelan  business  men. 

LANGUAGE. 

All  correspondence  should  be  in  Spanish  unless  otherwise  indicated. 
Catalogues,  price  lists,  etc.,  should  be  in  Spanish. 


INTRODUCTION.  8 

WEIGHTS  AND  MEASURES. 

The  metric  system  of  weights  and  measures  is  used  in  Venezuela 
and  is  the  oflScial  system.  AH  quotations  and  other  data  should  be 
given  in  metric  units.  American  catalogues  containing  weights  and 
measurements  in  the  English  system  should  always  include  metric 
equivalents.    This  matter  is  very  important. 

CURRENCY. 

Venezuela  possesses  a  stable  currency  based  on  gold.  The  monetary 
unit  since  1879  has  been  the  bolivar,  divided  into  100  centimos  and 
weighing  0.32258  grams  of  gold  0.900  fine,  or  0.291032  grams  of  pure 
gold,  the  exact  equivalent  of  the  French  franc,  9^  d.  British  money, 
or  $0,193  United  btates  currency.  The  par  value  of  the  United  States 
dollar  in  terms  of  Venezuelan  currency  is  5.18262  bolivars.  Existing 
coinage  consists  of  gold,  silver,  and  nickel  in  pieces  as  follows :  GolcL 
20  bolivars ;  silver,  5, 2^,  2, 1, 0.50,  and  0.25  bolivars ;  nickel,  0.125  and 
0.50  bolivars.  All  coins  are  now  subordinated  to  the  bolivar  as  the 
unit  of  the  system,  although  several  old  Venezuelan  coins  of  gold  and 
silver  survive,  each  with  a  distinct  name  puzzling  to  newcomers.  A 
nominal  unit,  the  "  peso,"  equal  to  4  bolivars,  was  formerly  much  used 
in  commercial  transactions.  The  word  "  peso  "  still  survives  in  con- 
versation, particularly  among  the  countrv  people — also  the  old  Span- 
ish terms  "  real "  (0.50  bolivar) ,  "  medio  "  (0.25  bolivar) ,  "  cuartillo  " 
(0.125  bolivar),  and  "centavo"  (0.05  bolivar),  though  the  use  of  the 
bolivar  is  compulsory. 

All  foreign  gold  coin  is  legal  tender  at  rates  fixed  by  law  in  Janu- 
ary, 1912,  as  follows : 

Franc  (French)  =1  boUvar. 
Peseta  (Spanish)  =1  bolivar. 
DoUar  (American)  =5.20  bolivars. 
Pound  sterling  (British)  =  25.25  bolivars. 
Mark  (German)  =1.25  bolivars. 

The  Government  offices  are  compelled  by  law  to  receive  and  pay  the 
20-franc  gold  pieces  of  France,  Belgium,  Italy,  Switzerland,  at  the 
rate  of  20  bolivars  each ;  Spanish  gold  "  onzu,  onza  patriotica.  Cen- 
tral American  or  Colombian  onza  at  80  bolivars;  Grerman  double 
crown  or  20-mark  piece  at  24.75  bolivars ;  double  condors  of  Colombia 
at  100  bolivars;  Mexican  onza,  weighing  33.700  grams  0.875  fine,  at 
100  bolivars ;  Spanish  Isabelina  of  25  pesetas  at  25  bolivars ;  English 
sovereigns  at  25.25  bolivars ;  and  United  States  $20  gold  pieces  at  104 
bolivars — penalties  being  prescribed  for  noncompliance  with  the 
terms  of  this  decree.  Gold  coin  is  much  in  demand,  especially  in  the 
large  cattle-raising  regions  of  the  llanos,  where  quantities  are  hoarded 
ana  withdrawn  from  circulation.  Largely  on  tnis  account  gold  coin 
commands  a  premium  ranging  up  to  2  per  cent  and  lately  as  high  as  3 
per  cent  on  account  of  contraband  exports  induced  by  the  exchange 
situation.  Silver  is  freely  used  for  pay  rolls,  etc.,  for  the  laborers 
employed  in  Venezuela. 

Bank  notes  are  issued  by  the  Bank  of  Venezuela  and  the  Bank  of 
Caracas,  both  of  Caracas,  and  two  banks  in  Maracaibo.  Bank  notes 
circulate  less  and  leas  freely  as  the  distance  from  the  cities  of  issue 


4  VENEZUELA :  A  COMMERCIAL  AND  IN  '^USTRIAL  HANDBOOK. 

increases,  and  they  are  difficult  to  dispose  of  in  the  interior,  where 
strong  preference  for  gold  persists.  Certain  banks  possess  the  privi- 
lege of  issuing  notes  against  a  gold  reserve,  but  these  are  not  legal 
tender  outside  of  the  State  in  which  the  banks  are  established.  Amer- 
ican bills  are  usually  worth  from  one-half  of  1  per  cent  to  1  per  cent 
under  the  buying  rate  of  exchange.  They  are  not  good  for  general 
circulation,  but  are  usually  accepted  in  the  larger  stores  of  the  coast 
cities  at  5  bolivars  to  the  dollar. 

Venezuela  is  one  of  the  seven  Latin  American  countries  in  which 
gold  coin  is  in  actual  use,  and  as  a  rule  it  has  steadily  maintained  a 
par  rate  of  exchange. 
'    The  following  points  are  covered  by  the  Venezuelan  monetary  law : 

Gold  coins  of  all  kinds  may  be  freely  imported^  but  special  permis- 
sion from  the  Government  is  required  for  exportation.  Silver  money 
can  be  neither  imported  nor  exported  without  such  permission.  No 
money  of  any  kind  is  allowed  to  be  sent  through  the  mails,  either 
local  or  foreign.  As  no  money-order  system  exists  in  Venezuela, 
transfers  of  money  from  one  part  of  the  country  to  another  are 
usually  made  through  orders  on  banks  or  commercial  houses. 

An  Executive  decree  of  January  16,  1912,  prohibited  the  importa- 
tion of  gold  coin  lacking  in  weight  and  fineness  under  the  Venezuelan 
law.  All  imported  coins  were  to  be  minutely  inspected  by  the  Gov- 
ernment assayer,  and  upon  those  lacking  the  required  fineness  and 
v/eight  a  heavy  fine  was  to  be  imposed.  Perforated,  worn,  or  smooth 
gold  coins  are  prohibited. 

According  to  the  constitution  of  1914,  no  legislative  or  executive 
power  nor  any  authority  of  the  Republic  could  issue  paper  money 
nor  declare  a  forced  circulation  of  notes.  The  capital  of  the  banks 
then  permitted  to  issue  notes  was  as  follows:  Bank  of  Venezuela, 
12,000,000  bolivars;  Bank  of  Caracas,  6,000,000  bolivars;  Bank  of 
Maracaibo,  1,250,000  bolivars. 

The  Government  did  not  hold  itself  responsible  for  the  issue  of 
such  notes,  although  according  to  the  banking  law,  chapter  20, 
article  60,  banks  of  circulation  were  required  to  have  as  guaranty  a 
gold  reserve  fund  equal  to  one-fourth  of  their  capital.  This  could 
not  be  released  except  in  exchange  for  bank  notes  in  case  of  a  crisis 
(provided  that  the  sum  be  restored  within  one  year).  Banks  were 
permitted  to  issue  notes  to  an  amount  double  their  capital,  on  the 
condition  that  the  sum  represented  by  the  notes  be  guaranteed  by  its 
third  part  in  metal  (art.  80). 

The  acceptance  of  bank  notes  was  not  obligatory  (art.  22).  No 
depreciated  fiduciary  medium  was  allowed  to  exist  in  Venezuela. 
There  is  no  conversion  office. 

While  the  currency  is  on  a  gold  basis  and  the  finances  of  the  country 
are  in  a  sound  and  prosperous  condition,  the  rising  price  of  silver 
presents  to  the  Government  a  serious  problem  in  connection  with  its 
subsidiary  coinage. 

Venezuela  has  $10,000,000  in  silver  coins  in  circulation.  Because 
of  the  growth  of  commerce,  a  constantly  greater  amount  is  needed. 
During  the  harvest  seasons  silver  has  gravitated  to  the  harvesting 
sections,  returning  later  to  the  28  agencies  of  the  Bank  of  Venezuela. 
During  the  last  fiiree  years  the  return  of  silver  has  been  lessening. 


the  number  of  bank  notes  guaranteed  by  gold  has  greatly  increased, 
and  it  is  feared  that  the  silver  currency  may  disappear  from  circula- 
tion. Venezuela,  in  proportion  to  its  population,  needs  more  silver 
coin  than  most  other  countries  because  the  use  of  checks  and  bank 
notes  is  not  so  general. 

The  bank  notes  of  the  four  national  banks  of  issue  in  Venezuela 
are  exchangeable  for  gold  or  silver  on  presentation  at  any  of  the  28 
agencies  or  the  Bank  of  Venezuela. 

POSTAGE. 

Venezuela  uses  Postal  Union  rates.  Articles  are  classified  as  let- 
ters, post  cards,  printed  matter,  commercial  papers,  samples  of  mer- 
chandise, and  not  as  first-class  matter,  secona-class  matter,  etc.  The 
rates  from  the  United  States  to  Venezuela  are  as  follows:  Letters 
and  other  sealed  matter,  5  centsNfor  each  ounce  or  fraction,  and  3 
qents  for  each  additional  ounce  or.  fraction  thereof;  post  cards, 
single,  2  cents;  post  cards,  double  (reply),  4  cents;  printed  matter,* 
1  cent  for  each  2  ounces  or  fraction  thereof;  commercial  paper,^  6 
cents  for  each  10  ounces  or  less  and  1  cent  for  each  additional  2 
ounces  or  fraction  thereof ;  samples  of  merchandise,^  2  cents  for  first 
4  ounces  or  less,  and  1  cent  for  each  additional  2  ounces  or  fraction 
thereof ;  registration  fee,  10  cents  in  addition  to  regular  postage. 

The  postage  rate  on  packages  sent  by  parcel  post  is  12  cents  per 
pound,  or  fraction  thereof.' 

The  Venezuelan  customs  tariff  assesses  duty  on  the  weight  of  the 
merchandise  imported ;  in  only  a  few  cases  is  an  additional  ad  valorem 
duty  assessed.  The  packing  is  generally  included  in  the  weight  of 
the  merchandise.  Each  kind  of  goods  is  placed  in  a  separate  class, 
and  the  duty  is  fixed  according  to  its  weight  and  class. 

Venezuela  having  adopted  the  metric  system,  everything  is  weighed 
in  kilos.  A  kilo  is  equal  to  2.173  Spanish  pounds  and  2.2046  avoirdu- 
pois pounds. 

Since  the  decree  of  September,  1918  (see  p.  397),  the  regulations 
governing  parcel-post  imports  have  been  amended  to  include  a  re- 
quirement that  before  the  package  is  delivered  the  addressee  must 
agree  to  accept  responsibility  for  the  declaration  of  the  contents  of 
the  package  and  for  the  payment  of  all  duties  and  of  all  fines  that 
may  be  imposed  for  errors  made  in  drawing  the  accompanying  docu- 
ments. As  this  written  acceptance  has  to  be  given  to  the  customs 
authorities  before  the  addressee  has  had  any  opportunity  of  first  ex- 
amining the  package  or  its  contents  or  the  documents  attached,  ad- 
dressees of  parcel-post  shipments  conmionly  refuse  to  receive  them 
unless  previous  arrangements  have  been  made  with  the  senders. 
Great  care  should  be  exercised,  therefore,  in  the  preparation  of  all 
parcel-post  shipments  to  Venezuela,  the  best  course  being  to  obtain 

^  The  maximum  size  is  45  centimeters  In  any  direction,  except  that  rolls  may  be  76 
centimeters  long  if  not  more  than  10  centimeters  in  diameter  (1  centimeter=0.39  inch). 
The  weight  limit  is  2  kilos. 

3  Samples  must  not  consist  of  salable  matter  nor  include  manuscript  other  than  the 
usual  coihmercial  information.  Weight  limit.  850  grams.  length  limit,  30  centimeters ; 
width,  20  centimeters ;  and  depth,  10  centimeters ;  except  that  in  form  of  roll  package 
may  measure  30  centimeters  in  length  and  15  centimeters  in  diameter. 

>  For  fees  and  other  conditions  on  shipment  of  parcel-post  packages  to  Venezuela,  see 
p.  397. 


6 


TEXEZUEIA:  A  OOMMEBdAL  AHD  OTDUSTBIAIj  KAHDBOOK. 


detailed  instmctions  frmn  the  persMis  to  whcxn  they  are  to  be  sent 
and  to  follow  soch  instmctions  to  the  letter.  Parcel-post  shipments 
should  never  be  made  without  advising  the  addressee  separately  and, 
if  possible,  giving  him  a  full  description  of  the  goods  sent  and  copies 
of  the  accompanying  documents.  Five  centimos  per  day  is  charged 
for  storage,  beginning  five  days  after  the  receipt  for  payment  of 
duty  by  the  addressee. 

The  Venezuelan  Postal  Administration  has  informed  the  United 
States  Post  Office  Department  that  ^  war  materials  **  should  be  added 
to  the  list  of  articles  specially  prohibited  in  the  parcel-post  mails  to 
Venezuela.  It  is  also  stated  tnat  anv  number  of  packages  desired 
may  be  received  bv  the  same  person  in  Venezuela  by  the  same  steamer, 
provided  the  weight  of  each  package  does  not  exceed  5  kilos  (11 
pounds). 

The  following  table  shows  the  Venezuelan  postal  rates*  foreign  and 
domestic: 


Letters  vei^ung  20  gEuns  or  less. 

Letters  mi^iiiic  more  than  20  smns,  for  each  20  gnms  in  ezeess 

PoFt  cards,  «inc^ 

Printed  matter  wei^iins  not  over  50  grams 

Samples  weighing  not  orer  100  grams 

Cwiiiimcial  papers  weighing  not  orer  250  nams 

Papers,  samples,  or  priced  matter,  for  eacn  50  grams  e: 


Packages  of  samples  must  not  exceed  350  grams  in  wieight,  and 
those  of  coffee  for  Italy  can  not  exceed  100  grams.  The  cost  of 
certification  of  parcel-post  packages  for  export,  inclusive  of  advice 
of  arrival,  is  0.50  bolivar,  and  a  return  receipt  of  delivery  is  obtained 
for  0.25  bolivar  extra.  Newspapers  of  Venezuela  are  carried  free  of 
charge  and  foreign  newspapers  as  printed  matter. 

The  urban  service  rates  are  as  follows : 

B«Uvar. 

Letters  weiring  20  grams  or  fraction  thereof 0. 10 

Post  cards,  single .05 

Post  cards,  in  sealed  envelopes i  .  10 

Post  cards,  in  envelopes  but  not  sealed .05 

I*rinted  matter,  not  over  100  grams  ?n  weight .05 

Newspapers,  domestic  or  foreign,  each .05 

R^stration,  with  receipt  for  delivery .25 

The  weight  of  packages  of  commercial  samples  must  not  exceed  250 
grams  and  the  weight  limit  of  all  first-class  matter  is  2  kilos. 

TELEGRAPH,  CABLE,  AND  WIRELESS  SERVICE. 

The  Venezuelan  telegraphs,  which  are  owned  and  operated  by  the 
Government,  have  9,358  ^lometers  of  wire  (1  kilometerr=0.62  mile) 
and  215  stations,  of  which  67  are  important  towns  and  centers  of 
population.  Sates  are  fixed  according  to  the  number  of  words  con- 
tained in  messages  to  be  transmitted  by  telegraph  and  are  not  regu- 
lated by  the  distance  served. 


8  YENEZUEIA:  A  COMMEBCIAL  AKD  INDUSTRIAL  HANDBOOK. 

There*  are  four  wireless  telegraph  stations  now  in  operation  in 
Venezuela,  these  being  located  at  La  Guaira,  Puerto  Cabello,  Maracay, 
and  Maracaibo.  Additional  stations  are  under  construction  at  San 
Cristobal  and  in  the  Federal  District.  These  are  all  of  3J  or  6  kilo- 
watt capacity,  and  the  equipment  is  largely  of  American  manu- 
facture. 

About  20  other  5-kilowatt  land  wireless  sets  are  to  be  installed  as 
soon  as  possible  by  the  Government,  but  it  is  doubtful  whether  this 
service  will  be  used  commercially.  It  will  have  the  effect,  however, 
of  releasing  the  telegraph  from  the  present  congestion  of  official 
messages. 


GEOGRAPHY,  TOPOGRAPHY,  AND  CLIMATE. 

GEOGRAPHIC  POSITION— AREA  AND  BOUNDARIES. 

Venezuela  is  in  the  northern  part  of  South  America,  between 
latitude  0°  46'  and  12^  26'  N.  and  longitude  69°  36'  and  73°  20'  W. 
Its  area  is  1,020,406  square  kilometers  (1  square  kilometer =0.386 
square  inile),  equiyalent  to  more  than  the  aggregate  area  of  Texas, 
Kentucky,  Tennessee,-  Alabama,  Mississippi,  and  Louisiana.  It  is 
bounded  on  the  north  by  the  Caribbean  oea :  on  the  south  by  Brazil 
and  Colombia ;  on  the  east  by  Brazil,  British  Guiana,  and  the  Atlantic 
Ocean;  and  on  the  west  by  Colombia. 

TOPOGRAPHY. 

Venezuela's  coast  line  measures  3,020  kilometers  (1  kilometer=0.62 
mib)  and  has  32  harbors,  60  small  bays,  and  many  coves,  besides  the 
lakes  of  Maracaibo  and  Tacarigua  and  the  estuary  of  the  Orinoco. 
This  coast  line  and  the  Orinoco  River  alone  would  make  Venezuela 
important.     From  the  coast  there  are  three  natural  inlets  to  the 

?lains  and  mountains  of  the  interior.  One  is  from  the  harbor  of 
'uerto  Cabello  via  San  Felipe  and  the  Abra  de  Altar,  communicat- 
ing with  the  foot  of  the  Venezuelan  Ande^  in  the  west  and  with  the 
high  plains  of  the  headwaters  of  the  Bio  Apure,  the  principal  affluent 
of  the  Orinoco.  There  is  another  such  inlet  by  way  of  Barcelona  on 
the  eastern  coast,  through  which  the  great  plains  of  the  northeastern 
area  are  accessible.  The  third  is  tne  great  delta  of  the  Orinoco, 
approached  from  the  Atlantic  Ocean  and  the  Gulf  of  Paria, 

Venezuela  is  divided  into  three  zones — ^the  mountains,  the  plains, 
and  the  forests.  The  four  main  topographic  divisions  are:  (1) 
The  Guiana  Highlands,  including  all  that  part  lying  south  and  east 
of  the  Orinoco  toward  Brazil;  (2)  the  great  central  area  of  the 
llanos,  or  plains,  which  extend  for  660  miles  east  and  west  and 
are  bounded  by  (3)  the  northeastern  branch  of  the  Great  Andine 
Chain,  which  comes  up  from  Colombia,  and  (4)  in  the  northwest  of 
the  country  a  low-lying  region  around  Lake  Maracaibo.  All  these 
divisions  lie  wholly  within  the  tropical  zone  and  their  main  features 
are  uniform,  but  each  includes  somewhat  varying  types  of  land 
surfaces. 

MOUNTAIN  GROUPS. 

The  important  mountain  groups  comprise  the  Andes  to  the  west, 
the  Coast  Range  extending  along  the  Caribbean  Sea  throughout  the 
main  central  area,  and  the  Guiana  Highlands,  or  Parima  Ranges, 
southeast  of  the  Orinoco  delta.  The  branch  of  the  Colombian 
Andes,  called  the  Cordillera  Oriental  in  Colombia,  which  penetrates 
the  western  limits  of  Venezuela  at  the  Paramo  of  Tama,  an  im- 
portant mountain  group  3,606  meters  in  height  (1  meter=:3.28  feet^, 
forms  ohe  western  boundary  of  the  country  with  Colombia  and  extends 
in  a  pronounced  range  toward  the  north,  ending  in  the  Peninsula 

9 


10        VENEZUELA :  A  CTOMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

of  Goajira.  This  range  sends  off  another  branch,  which  extends  in  a 
'northeasterly  direction  south  of  Lake  IVJaracaibo  and  rises  in  great 
peaks  in  the  regions  of  Merida  and  Trujillo,  falling  off  toward  the 
northeast  and  disappearing  at  El  Altar,  In  this  range  are  found  the 
highest  peaks  of  Venezuela — ^La  Corona,  with  two  peaks  4,850  and 
4,882  meters  high,  Piedras  Blancas  of  4,760  meters,  and  other  peaks 
of  great  height.  This  spur  of  the  Andes  in  Venezuela  is  linked  to  the 
Caribbean  Uoast  Bange  by  the  Segovia  Highlands,  possessing  the 
main  features  of  a  table-land  which  extends  in  a  broad  belt  through 
the  States  of  Lara  and  Falcon. 

Beyond  El  Altar,  along  the  coast,  the  mountains  of  the  Coast 
Range  begin,  descending  rather  abruptly  to  the  Caribbean  Sea.  At 
about  the  center  of  this  part  of  the  Coast  Range,  just  to  the  south  of 
it,  is  Lake  Valencia,  near  -the  center  of  the  most  productive  agri- 
cultural district  of  Venezuela.  The  main  peaks  of  this  section  of 
the  Coast  Range  are  the  Pico  de  Naiguata  (2,765  meters)  and 
the  Silla  de  Caracas  (2,367  meters).  This  range  terminates  abruptly 
at  Cape  Codera,  near  the  port  of  Carenero.  To  the  east  of 
Cape  Codera  there  is  a  shallow  indentation  in  the  coast  line  reach- 
ing as  far  as  Barcelona,  the  land  rising  evenly  toward  the 
interior  and  forming  a  plain,  which  makes  one  of  the  natural  en- 
trances from  the  coast  to  the  interior  of  the  country.  The  Coast 
Range  again  rises  near  the  city  of  Barcelona,  extending  east  and 
northeast  and  including  the  entire  peninsulas  of  Araya  and  Paria. 
Within  these  mountains  the  lagoons  of  Campoma  and  Putucual  are 
located.  The  principal  elevations  of  the  Paria  section  of  the  Coast 
Range  are  Pico  Turumiquire  (2,600  meters),  San  Bonifacio  (1,560 
meters),  Cerro  Purgatorio  (1,550  meters),  and  Tataracual  (1,460 
meters). 

In  the  region  of  Caracas  are  two  main  lines  of  hills  known 
locally  as  the  Serrania  Costanera  and  the  Serrania  Interior,  with 
the  V  alley  of  Caracas  lying  between  the  ridges ;  but  in  the  neighbor- 
hood of  Barcelona  and  Cumana  and  throughout  the  Paria  Peninsula, 
this  division  is  not  so  pronounced.  Toward  the  end  of  the  Paria 
Peninsula  the  range  does  not  rise  above  975  meters. 

On  the  northern  or  coast  side  the  Coast  Range  is  drained  by  many 
small  but  precipitous  mountain  streams,  which  are  dry  durmg  the 
dry  season,  as  a  rule.  On  their  southern  side  these  mountains  are 
the  headwaters  for  many  small  tributaries  of  the  Orinoco.  The  plain 
between  Carenero  and  Barcelona  is  drained  toward  the  sea  by 
numerous  small  streams  throughout  its  northern  half,  but  toward  the 
Orinoco  to  the  south  over  its  southern  half. 

The  Segovia  Highlands,  ranging  from  460  to  1,070  meters  in  ele- 
vation, are  best  defined  in  the  State  of  Lara,  in  the  region  of  its 
capital,  Barquisimeto.  This  plateau  is  dry  and  barren,  with  cactus 
vegetation,  and  suggests  the  general  features  of  the  dry  bed  of  an 
ancient  lake,  interspersed  with  low  hills.  North  of  Barquisimeto 
there  are  low  ranges ;  the  most  important  are  the  Cordillera  de  Bara- 
gua,  Agua  Negra,  and  San  Luis,  the  last-named  being  the  largest 
and  extending  for  177  kilometers  parallel  to  the  Coro  coast  and 
overlooking  the  Gulf  of  Venezuela. 

In  the  interior,  extending  from  the  foot  of  the  Venezuelan  Andes 
on  the  west  to  the  delta  of  the  Orinoco  on  the  east,  and  from  the 


OEOGBAPHT,  TOPO(»tAPHT,  AKD  GLtlCATB.  11 

sooiheni  side  of  tiie  Coast  Range  on  the  north  to  the  Orinoco  on  the 
souths  are  the  plains  of  Venezuela,  measuring,  roughly,  from  east  to 
west  650  miles,  and  from  north  to  south  200  miles,  llie  plain  area 
proper — the  drainage  hasins  of  tiie  Apure  and  Orinoco  Rivers — ^i& 
estimated  to  contain  225,000  souare  kilometers ;  and  if  there  is  added 
the  great  extensions  toward  tne  south  as  far  as  the  great  southern 
tributaries  of  the  Orinoco,  the  Meta  and  the  Arauca  Rivers,  the  total 
area  is  800,000  square  kilometers.  However,  for  practical  purposes 
to-day,  this  latter  region  is  not  considered  as  belonging  properly  to 
the  plains,  since  the  country  to  the  south  of  the  Apure  and  Orinoco 
is  heayUy  timbered,  except  far  to  the  west  along  the  Rio  Meta, 
while  the  northern  plains  are  mostly  open  and  coyered  with  long 
natural  grasses. 

These  northern  plains  drain  toward  the  Apure  throughout  their 
western  half  and  toward  the  Orinoco  throughout  their  eastern  half, 
the  slope  being  gradual  from  the  southern  side  of  the  Coa^  Rane:e 
to  the  Orinoco  River.  The  average  elevation  above  sea  level  is  only 
about  650  feet  in  the  central  portion,  and  during  the  rainy  season 
the  rivers  overflow  their  banks  and  spread  for  miles  over  the  main 
valleys.  These  overflow  areas  are  called  "pampas."  (A  more  de- 
tailed description  of  these  plains  will  be  given  in  the  chapter  on  cat- 
tle, as  this  great  leyel  accessible  area  constitutes  one  of  Venezuelans 
greatest  assets  for  the  production  of  beef  cattle.) 

The  delta  of  the  Orinoco  extends  from  the  Rio  Vagre,  which 
divides  it  on  the  north  from  the  plains,  to  the  Carosimia,  which  flows 
east  and  west  and  is  the  main  outlet  of  the  Orinoco.  This  region 
is  leyel  and  is  composed  of  low  lands  subject  more  or  less  to  heavy 
oyerflow  from  the  many  channels  of  the  great  river  which  drains 
into  them.  The  entire  region  is  heavily  timbered  with  tropical 
growth. 

South  and  east  of  the.  Orinoco  lie  the  Guiana  Highlands,  which 
include  all  of  that  vast  and  more  or  less  unexplored  portion  of  Vene- 
zuela lying  along  the  right  bank  of  the  Orinoco  and  around  its  head- 
waters. This  area  is  primarily  one  huge  plateau  about  1,000  feet 
or  more  in  height,  from  which  rise  a  few  pnilcipal  -mountain  ranges 
with  some  peaks  over  8,000  feet  high,  while  smaller  chains  of  hills 
link  up  the  larger  ranges  or  groups.  The  highest  ground  is  found 
on  the  Brazilian  frontier,  beginning  at  Mount  Roraima  (8,500  feet), 
where  the  boundaries  of  Venezuela,  British  Guiana,  and  Brazil  meet. 
This  main  range  then  extends  to  the  west  and  south,  in  the  Sieiras 
Pacaraima  and  Parima,  to  the  headwaters  of  the  Orinoco  near 
Esmeraldas.  From  the  Roraima  Range  the  Orinoco-Cuyuni  water- 
shed extends  northward  within  Venezuela  along  the  Sierras  Rincote 
and  Usupamo  and  the  Highlands  of  Puedpa  5)  the  Sierra  Piacoa, 
and  thence  southeast  along  the  Sierra  Imataca  to  the  British  limits 
again.  The  Sierra  Maigualdia  forms  the  watershed  between  the 
Caura  and  the  Ventuari. 

This  entire  area,  which  amounts  to  some  204,600  square  miles,  is 
well  watered  by  the  upper  Orinoco,  which  here  flows  from  south  to 
north,  and  the  Rio  Ventuari  and  other  great  tributaries,  the  Cuchi- 
vero,  Caura,  Aro,  Caroni,  and  their  affluents.  Large  as  these  rivers 
are,  they  are  so  broken  by  rapids  and  so  subject  to  alternate  floods 
and  extreme  low  water  that  travel  along  them  is  possible  only  in 


12        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANpBOOK. 

small  canoes  and  other  portable  craft;  and  even  then  their  passaizte 
is  fraught  with  danger. 

Save  for  the  districts  in  the  immediate  neighborhood  of  the  Ori- 
noco and  other  scattered  areas,  the  whole  region  is  covered  with 
dense  tropical  forests  containing  all  the  varied  natural  products  of 
the  South  American  tropics. 

The  Guiana  Highlands  represent  not  only  the  oldest  rock  forma- 
tions in  Venezuela  but  also  the  most  ancient  land  surfaces  in  the 
world,  offering  many  analogies,  from  a  geological  point  of  view, 
with  the  highlands  of  Scotland.  The  great  elevated  platform  from 
which  rise  the  peaks  and  mountains  of  the  Guianas  appears  every- 
where to  be  composed  of  similar  rocks,  gneisses,  hornblendes,  schists, 
and  ^anites,  all  containing  evidences  of  great  geological  antiquity, 
and  IS  considered  by  scientists  as  being  more  or  less  equivalent  m 
age  to  the  oldest  members  of  the  Archaean  system.^ 

The  surfaces  covered  by  the  various  mountain  systems  of  Vene- 
zuela are  as  follows:  Venezuelan  Andes,  57,600  square  kilometers; 
Sierra  Perija  (toward  the  Goajira  Peninsula),  12,000  square  kilome- 
ters; ranges  of  Coro,  40,200  square  kilometers;  central  Coast  Range, 
44,000  square  kilometers ;  eastern  Coast  Range,  15,000  square  kilome- 
ters; total,  168,800  square  kilometers. 

These  different  mountain  groups  inclose  extensive  areas  that,  in 
separate  hydrographic  bottoms,  collect  the  rainfall,  or  water  result- 
.  inl  from  Miration,  and  carry  it  to  the  small  rivers.  These  flow 
into  the  principal  rivers  which  give  the  basins  their  names.  The 
Andes  limit  the  water  flowing  into  Lake  Maracaibo,  the  Coast 
Ranges  the  water  passing  directly  to  the  sea  and,  on  the  south,  to 
the  Lake  of  Valencia.  The  great  area  to  the  south  is  drained  by 
the  Orinoco,  with  its  principal  tributary,  the  Apure,  and  the  Rivers 
Negro  and  Cuyuni. 

RIVER  SYSTEMS. 

The  Orinoco  rises  in  the  summits  of  the  Parima  Range  and  flows 
in  a  general  northerly  direction  for  about  half  of  its  length,  turning 
directly  east  at  the  point  of  its*  junction  with  the- Apure,  coming 
from  the  Venezuelan  Andes.  Near  its  hea^dwaters  in  the  region  of 
Esmeraldas  it  is  connected  with  the  Rio  Negro,  which  flows  into 
the  Amazon,  by  a  shallow  canal  called  the  Casiquiare.  It  is  possi- 
ble during  high  water  to  travel  by  canoe,  except  for  a  few  portages, 
from  the  mouth  of  the  Orinoco  upstream  an.d  then  down  the  Amazon. 
Farther  to  the  north  and  near  the  boundary  with  Colombia  (now  in 
dispute),  in  the  region  of  San  Fernando  de  Atabapo,  the  Orinoco 
is  joined  by  the  Ventuari,  which  drains  the  eastern  region  of  the 
Guiana  Highlands,  and  also  the  Rio  Guaviare  (the  latter  junction 
being  at  the  town  of  San  Fernando  de  Atabapo)  and  the  less  impor- 
tant Rio  Inirida.  Still  farther  to  the  north  the  Orinoco  is  joined 
by  the  Vichada,  also  coming  from  the  plains  of  Colombia  to  the 
east  near  the  town  of  Maipure.  The  great  Rio  Meta  flows  into  the 
Orinoco  at  a  point  called  San  Carlos  Viejo,  a  rubber  camp,  and  from 
this  point  the  Orinoco  continues  to  the  north  by  northeast  to  the 
point  of  its  junction  with  the  Apure  River. 

^  For  more  detailed  geological  history  of  Venezuela,  see  "  Venezuela,"  by  Leonard  V. 
Dalton,  pp.  38  to  46. 


GEOGRAPHY,  TOPOGRAPHY,  AND  CLIMATE.  13 

The  general  course  mentioned  as  being  to  the  north  is  in  reality 
a  great  bend,  first  to  the  eaat  to  San  Fernando  de  Atabapo,  then 
north  to  Maipure,  and  then  northeast  to  the  Apure.  Before  reach- 
ing the  Apure  the  Orinoco  receives  the  waters  of  two  smaller  tribu- 
taries, which  also  come  from  the  Southern  Venezuelan  Andes,  the 
Rios  Capanaparo  and  Arauca,  the  latter  being  the  larger  and  more 
important.  The  Arauca  and  the  Apure  rise  in  the  Colombian  Andes 
very  near  each  other.  The  principal  affluent  of  the  Apure  is  the  Eio 
Portuguesa,  which  drains  the  great  area  south  of  Lake  Valencia 
and  Barquisimeto  and  joins  the  Apure  at  the  town  of  San  Fernando 
de  Apure.  Another  northern  tributary  of  the  Apure  is  the  Rio 
Guarico,  which  flows  directly  south  from  the  Caracas  hills. 

After  its  junction  with  the  Apure,  the  Orinoco  receives  many  small 
streams,  which  drain  the  great  plains  lying  along  its  northern  bank, 
but  none  is  important  until  the  delta  country  is  reached,  where  the 
dividing  line  is  the  Rio  Vagre,  This  is  not  properly  a  river,  but  a 
great  "  cano,"  or  channel,  connecting  the  Orinoco  with  the  Gulf  of 
Paria,  and  in  reality  one  of  the  largest  discharges  of  the  Orinoco 
proper. 

On  the  southern  side,  after  leaving  San  Fernando  de  Apure,  the 
*  Orinoco  is  joined  by  the  Rio  Caura,  an  unimportant  stream,  and  then 
by  the  large  Caroni  which  flows  into  it  near  Barrancas,  east  of  Ciu- 
dad  Bolivar.  The  Caroni  gives  access  to  the  forest  region  south  and 
east  of  the  delta  of  the  Orinoco  and  dr^s  the  southeastern  portion 
of  the  country. 

From  Barrancas  the  principal  outlet  of  the  Orinoco  is  called  the 
Rio  Gorosimia,  which  flows  directly  east  into  the  Atlantic  Ocean. 
The  Corosimia-Orinoco  is  navigable  for  steamers  of  1,500  tons  as  far 
as  Ciudad  Bolivar.  In  the  great  lowlands  of  the  delta  there  are 
numerous  channels  and  rivers,  so  called,  all  carrying  the  waters  of 
the  Orinoco  into  the  Atlantic  or  the  Gulf  of  Paria. 

The  Caribbean  coast  line  has  no  important  or  navigable  rivers, 
with  the  exception  of  the  lowlands  of  Coro-La  Vela,  south  of  the 
Peninsula  of  Jraraguana,  where  there  are  networks  of  tiny  streams 
forming  swamps. 

Innumerable  small  streams  drain  into  the  great  basin  of  Lake  Mara- 
caibo  in  the  extreme  western  part  of  Venezuela.  Two  large  navi- 
gable rivers  flow  from  the  south  and  southwest  into  Lake  Mara- 
caibo — the  Rio  Escalante,  navigable  for  small  steamers  as  far  as 
Santa  Barbara,  the  rail  point  for  Merida.  and  the  Rio  Catatumbo, 
which  is  joined  by  the  Rio  Zulia  coming  from  the  Colombian  Andes 
near  Cucuta  and  navigable  for  small  river  steamers  as  far  as  Puerto 
Villamizar,  the  rail  point  for  Cucuta  in  Colombia.  The  Rios  Zulia 
and  Catatumbo  form  the  means  of  communication  between  the  im- 

?ortant  producing  regions  of  Cucuta  in  Colombia  and  Maracaibo  in 
enezuela. 

Farther  to  the  north,  alon^  the  western  side  of  Lake  Maracaibo, 
there  are  several  important  rivers  (El  Limon,  Palmar,  and  Apon), 
navigable  for  the  canoes  of  the  natives.  The  valley  of  the  Rio  Limon 
contains  large  and  good  deposits  of  coal. 

The  Orinoco  is  2,373  kilometers  in  length  (1  kilometer=:0.62  mile) 
and  is  navigable  for  1,930  kilometers  from  the  Atlantic  Ocean.  River 
steamers  from  Ciudad  Bolivar  can  ascend  the  river  as  far  as  the  town 


, 


14        VENEZUELA:  A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

of  San  Fernando  de  Apure,  on  the  Eio  Apure,  but  with  difficulty 
during  the  season  of  low  water  from  December  to  June.  There  are 
1,059  rivers  and  streams,  230  of  which  flow  into  the  Caribbean  Sea 
and  200  into  Lake  Maracaibo.  Among  the  rivers  of  less  importance 
are  the  Uribanta,  Guanare,  Sarare,  Masparro,  Masparrito,  Santo 
Domingo,  and  Cojedes.  There  are  counted  4  rivers  of  the  first  order. 
26  of  the  second  order,  and  12  of  the  third  order,  as  belonging  to 
the  Orinoco  system.  The  following  table  shows  the  length,  navigable 
course,  drainage  area,  and  sources  of  the  most  important  rivers : 


Orinoco... 

Apure 

Guaviare.. 

Meta 

Caroni 

Cuyuni... 
Rio  Negro. 


Rivers. 


Length. 


Kilometers. 

2,373 

1,187 

663 

902 

892 


Navigable 
course. 


KUomeUrB. 
1,930 
1,006 


898 
782 


Area 
drained. 


Square 

kUometen. 

530,097 

128,000 

37,280 

111,600 

56,800 

158,109 

100,359. 


Sources. 


Parima. 

Merida. 

Nueva  Granada,  Colombia. 

Colombia. 

Parima. 

Roraima. 

Colombia. 


THE  GREAT  PLAINS. 


The  most  important  of  the  accessible  undeveloped  regions  of  the 
country  are  the  great  plaiilS  stretching  from  east  to  west  north  of 
the  Orinoco  and  Apure  Rivers,  which  are  suited  to  cattle  raising; 
the  rich  alluvial  region  east  of  Lake  Maracaibo,  and  the  rich  agri- 
cultural region  around  Lake  Valencia. 

On  account  of  the  sparse  population  and  the  scarcity  of  labor  in 
the  country,  any  large  development  in  agricultural  production  can 
not  be  looked  for  without  immigration ;  and  since  the  war  there  are 
many  difficulties  in  the  way  of  any  great  number  of  colonists  going 
to  Venezuela  or  to  other  like  countries  of  South  America.  This 
fact  leaves  the  great  llanos  as  the  most  important  factor  of  develop- 
ment and  production  of  additional  wealth  for  Venezuela.  Cattle 
do  not  require  the  same  amount  of  labor  as  general  agriculture  and 
Venezuelan  ports  of  shipment  for  cattle  (Puerto  Cabello  and  Quanta) 
are  a  week  to  10  days  nearer  American  and  European  ports  than 
the  great  beef-shipping  ports  of  Argentina.  The  development  of 
the  stock-raising  industry  will  make  Venezuela  of  international  im- 
portance, and  as  wealth  is  thus  acquired  the  other  resources  of  the 
country  will  be  exploited. 

Although  these  great  plains  are  "  open  range  "  covered  with  nat- 
ural grasses  suitable  for  cattle  feeding,  conditions  in  general  are  not 
those  of  the  pasture  lands  of  Argentina.  The  Venezuelan  climate 
is  much  more  tropical;  tropical  diseases  are  prevalent,  and  the  river 
valleys  are  subject  to  overflow  during  high  water.  The  higher  lands 
to  the  north  along  the  foothills  of  the  Coast  Range  generally  lack 
sufficient  water  during  the  dry  season  (December  to  June),  but  much 
could  be  done  by  the  development  of  water  from  wells,  dams,  etc. 

(See  also  chapters  on  cattle  raising  and  petroleum.) 


GEOGRAPHY,  TOPOGRAPHY,  AND  CLIMATE. 


15 


CLIMATE  AND  ilAINFALL. 

Venezuela  lies  wholly  within  the  Torrid  Zone.  The  branches  of 
the  Andes  that  cross  the  country  in  the  western,  part,  the  Coast 
Banges,  and  the  elevations  farther  south,  give  the  country  a  very 
varied  climate — climate  in  this  part  of  the  world  being  more  a  mat- 
ter of  elevation  than  of  latitude.  At  sea  level  and  at  elevations  up 
to  3,000  feet  above  sea  level  the  climate  is  tropical;  from  3,000  to 
5,000  feet,  semitropical ;  at  7,000  feet,  ideal  in  temperature;  at  9,000 
feet,  cold  and  damp.  The  perpetual  snow  line  is  at  16,000  feet,  and 
some  of  the  western  peaks  of  only  14,000  feet  show  considerable  snow 
nearly  all  the  year  round. ' 

There  are  two  seasons — the  dry  and  the  rainy — varying  with  the 
elevation  and  topography  of  the  country,  but  in  general  well  defined 
and  fairly  constant.  Generally  speaking,  for  the  more  inhabited 
regions  oi  the  country,  the  rainy  season  lasts  from  the  beginning  of 
May  to  the  beginning  of  November,  not  much  rain  occurring  during 
the  rest  of  the  year.  In  some  years  the  rainy  season,  especially  in 
the  Caracas  Valley  and  district,  does  not  begin  until  the  month  of 
June  and  at  times  the  heavy  rains  last  until  the  end  of  November. 
During  the  spring  there  are  heavy  drizzles,  lasting  for  about  two 
weeks,  which  are  very  beneficial  to  the  growth  of  small  fruit,  corn, 
beans,  etc. 

The  hottest  months  are  March,  April,  and  May,  and  it  is  moist 
and  warm  during  the  rainy  season.  The  coldest  months  are  Decem- 
ber, January,  and  part  of  February,  when  maximum  low  average 
temperatures  of  41°  to  43°  F.  may  be  registered  in  some  of  the 
smaller  towns  of  the  Andes.  At  Caracas,  the  capital,  922  meters 
above  sea  level,  the  average  maximum  low  temperature  is  48°,  the 
annual  average  temperature  of  67.1°  and  with  the  maximum  average 
high  temperature  90°.  Along  the  coast  and  in  the  low  lands  of  the 
Maracaibo  basin  and  interior  river  valleys  the  maximum  high  aver- 
age is  97°,  and  the  temperature  falls  to  an  average  of  64°  to  68° 
during  the  dry  season. 

The  rainfall  varies  with  the  elevation  and  topographical  formation 
of  the  region.  Throughout  the  Caribbean  coast  it  generally  amounts 
to  more  than  1  meter  (3.28  feet).  In  some  places,  such  as  at  Puerto 
de  la  Cruz,  about  80  kilometers  west  of  La  Guaira,  it  amounts  to  2 
meters,  but  in  Caracas  the  annual  precipitation  is  only  800  milli- 
meters (1  millimeter  =  0.03937  inch).  The  following  table  shows 
the  rainfall  (average^  for  the  difFerent  months  in  Caracas,  in  Merida 
(in  the  Venezuelan  Andes,  at  an  elevation  of  1,600  meters),  and  in 
Maracaibo,  second  city  of  the  Republic,  on  Lake  Maracaibo.  At 
these  points  meteorological  stations  have  been  maintained  by  the 
Government  for  some  time. 


Months. 


January.. 
February, 

March 

April 

May 

June 

July 


Caracas. 

Merida. 

Mara- 
caibo. 

Inches. 
0.98 
.26 
.71 
1.60 
2.80 
3.93 
4.55 

Inches. 
4.13 
2.93 
5.17 
5.15 
7.21 
9.17 
5.26 

Inches. 
0.03 

1.13 
1.46 
4.38 
2.51 

Months. 


August 

September. 

October 

November. 
December.. 

Total 


Caracas. 


Inches. 
4.19 
3.55 
3.88 
3.44 
1.91 


31.89 


Merida. 


Ifiches. 

7.19 

6.20 

11.46 

10.98 

1.24 


76.09 


Mara- 
caibo. 


Inches. 
4.29 
2.26 

9.76 

2.87 

.41 


29.10 


16        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

The  climate  of  the  entire  Maracaibo  Basin,  more  especially  that 
part  lying  to  the  west  of  Lake  Maracaibo,  is  considerably  influenced 
by  the  proximity  of  the  arid  region  of  the  Goajira  Peninsula-  The 
rainfall  of  the  region  lying  to  the  south  and  east  of  the  Orinoco  is 
especially  heavy,  as  it  is  also  in  the  delta  north  of  the  main  outlet 
of  the  river. 

The  hurricanes  of  the  Antilles  hardly  ever  reach  the  coast  of 
Venezuela  with  sufficient  force  to  do  any  great  amount  of  damage; 
they  are  felt  mainly  as  heavy  ocean  swells.  The  prevailing  winds 
are  northwest  and  southeast.  The  velocity  seldom  exceeds  18  meters 
per  second,  or  about  40  miles  per  hour,    ' 

The  open  llanos,  while  free  from  the  dense  tropical  vegetation  of 
the  areas  south  of  the  Orinoco,  as  a  rule,  are  hot  and  tropical.  The 
best  climatic  locations  in  the  cattle  country  proper  are  the  slopes 
of  the  coast  ranges,  at  an  elevation  of  about  3,000  feet. 

The  best-developed  agricultural  region,  around  Lake  Valencia,  is 
also  hot,  and  tropical  (useases  are  rife.  Workmen  from  the  higner 
towns  of  the  western  interior  or  from  Caracas  are  difficult  to  obtain 
and  hold  in  this  region  on  account  of  the  prevalence  of  malaria. 
The  sugar  plantations  of  the  Maracaibo  Basin  are  noted  in  the  coun- 
try for  the  extreme  tropical  climate  and  tropical  conditions.  Even 
the  Goajira  Indians,  natives  of  the  region  to  the  west  of  the  lake, 
suffer  from  regular  'epidemics  of  mala?ia  during  the  latter  part  oi 
the  rainy  season.  Any  extensive  development  m  agriculture,  such 
as  cotton  or  sugar-cane  planting,  would  have  to  be  undertaken  with 
full  attention  to  sanitation  and  medical  service  on  a  scale  with  the 
work  contemplated.  This  expense  must  be  taken  into  consideration, 
as  well  as  the  prevalent  anemia,  which  detracts  from  efficiency  in  all 
lines  of  work.  The  investment  in  sanitation  and  medical  educational 
methods  is,  of  course,  high,  but  it  has  proved  necessary  in  the  Troj^ics 
and  more  than  repaid  by  the  maintenance  of  a  sufficient  working 
force  and  the  general  increased  physical  ability  of  the  men  engaged 
in  the  field  work.  The  natives  of  the  country,  born  and  raised  in 
these  same  tropical  regions,  are  not  immune  to  malaria,  but  suiTer 
from  it  in  latent  form.  Neither  is  West  Indian  labor  (Negro)  im- 
mune, although  less  subject  to  the  more  pronounced  form  of  malarial 
fever.  In  connection  with  the  effect  of  climatic  conditions  on  labor 
in  general,  it  may  be  well  to  add  here  that  meas^ures  taken  to  improve 
the  diet  of  persons  engaged  in  heavy  labor  in  the  Tropics  have  re- 
sulted in  increased  efiiciency.  The  principal  needs  are  fresh  vege- 
tables and  cereals  and  improvement  in  methods  of  preparing  food. 


POPULATION  AND  LIVING  CONDITIONS. 

■     STATISTICS  OP  POPULATION. 

According  to  the  Government  estimate  as  of  December  31j  1917,  the 
population  of  Venezuela  was  placed  at  2,841,318  (including  about 
325,000  Indians),  or  about  2.8  per  square  kilometer  (7  per  square 
mile).  In  comparison  with  other  coiuatries  the  annual  increase  in 
population  is  sUeht.  The  largest  cities  are  Caracas,  officdaUy  credited 
with  86,798  inhabitants ;  Valencia,  with  64,861 ;  and  Maracaibo,  with 
48,480.  Caracas  is  generally  supposed  to  have  at  least  100,000  people, 
including  the  small  Tillages  of  the  immediate  surrounding  country 
and  the  suburbs.  The  following  table  shows  the  population  from 
1905  to  lf>09,  together  with  the  natural  increase  and  the  increase  by 
immigration : 


Y«i». 

population. 

Nataral 

is:- 

TaMI 

2  weios 

m 

11 

■f 

S* 

LACK  OF  IMMIGRATION. 

Spontaneous  immigration  is  lacking,  although  it  is  necessary  to 
develop  the  agricultural,  mineral,  and  other  resources  of  the  country. 
That  this  immigration  should  be  from  near-by  countries  is  im- 
possible, for  Colombia,  Brazil,  and  Central  America  are  confronted 
witlfthe  same  difficulty.  On  the  other  hand,  the  question  of  food 
for  European  immigrants  is  serious,  as  the  robust  European  requires 
four  times  as  much  as  does  the  native  Venezuelan  of  the  agricultural 
districts,  and  the  amounts  of  wheat,  oils,  wines,  etc.,  to  which  the 
European  is  accustomed,  are  not  easily  procured  in  Venezuela.  The 
small  immigration  that  does  exist  is  onset  by  emigration.  The  sit- 
uation appears  not  to  have  improved  much  since  the  war  period,  but 
the  latest  census,  that  of  1918,  is  not  yet  complete.  In  1918  emigrants 
numbered  6,841  and  immigrants  6,153 ;  in  1919  emigrants  12,879  and 
immigrants  12,433. 

Since  1909  the  yearly  increases  in  population  have  been  as  follows ; ' 
1910—28,091;  1911—30,310;  1912—11,797;  1913—24,650;  1914— 
24,988;  1915—12,904;  1916—9,589;  1917—20,359;  1918—8,308;  1919— 
20,590. 

In  1894  a  central  board  of  immigration  was  formed  by  decree  of 
the  Ministerio  de  Fomento  (Development),  with  subordinate  boards 
throughout  the  Republic.     Immigrants  were  to  be  introduced  into 


18        VENEZUELA :  A  COMMERCIAL  AHD  INDUSTRIAL  HANDBOOK. 

the  country  by  means  of  contracts  with  societies  and  companies  or 
with  the  State  governments,  to  be  contracted  with  as  colonists  on 
waste  lands  or  under  the  direct  supervision  of  the  Government.  Un- 
desirable persons  were  to  be  excluded;  others  were  to  have  their 
expenses  paid  by  the  Gk)vemment  and  to  have  portions  of  Govern- 
ment lands  assigned  to  them.  Such  immigrants  could  not  be  held  to 
service  by  contractors  for  more  than  four  years;  and  the  maximum 
period  was  less  for  artisans  and  industrial  workers,  actual  money 
being  paid  for  the  services.  Occupied  lands  could  be  paid  for  after 
four  years,  and  a  clear  title  would  be  given  by  the  Government  if 
the  settler  showed  sufficient  industry.  A  certain  amount  was  to  be 
set  aside  in  the  national  budget  for  all  immigration  projects,  and 
Venezuelan  consular  officers  in  foreign  countries  were  to  act  as  immi- 
gration agents. 
The  first  European  immigration  to  Venezuela  after  the  war  took 

Slace  in  August,  1920,  when  6  Spanish  immigrants  arrived  at  La 
ruaira,  proceeding  to  Maracay  to  engage  in  aOTicultural  work.  One 
month  later  another  party  of  17  Spaniards  and  men  from  the  Canary 
Islands  arrived  at  La  Guaira,  who,  with  one  or  two  exceptions,  were 
all  would-be  farmers.  All  these  new  men  were  immediately  con- 
tracted for  by  wealthy  landowners  of  the  Maracay  and  Valencia 
districts. 

In  September  10  German  immigrants  arrived  at  La  Guaira,  one  of 
them  having  his  wife  and  two  children  with  him.  This  party  had 
among  their  numbers  six  agriculturists,  one  shoemaker,  one  machinist, 
one  mechanic,  and  one  paperhanger  and  decorator.  In  December, 
1920,  38  more  European  immigrants  arrived,  some  of  them  being 
Belgians. 

On  September  30,  1920,  the  Venezuelan  Government  approved  a 
contract  providing  for  colonization  by  Germans  of  a  tract  of  land 
containing  70,000  hectares  (1  hectare=2.47  acres)  lying  along  the 
northern  boundary  of  the  State  of  Monagas  in  the  extreme  eastern 
part  of  the  country.  The  colony,  which  was  to  be  composed  of  a 
minimum  number  of  100  families,  was  to  get  40,000  hectares,  and  the 
contractor  promoting  the  colony  was  to  receive  the  remaining  30,000 
hectares.  It  is  planned  to  bring  over  to  Venezuela  German  immi- 
grants who  had  experience  in  Africa  prior  to  the  war  and  who  under- 
stand tropical  conditions.  The  conditions  of  the  concession  provide 
for  a  town  site  for  the  colony,  buildings  for  housing,  etc. 

The  Government  lands  alienated  during  1917-18  amounted  to 
18,716  hectares,  of  which  4,286  hectares  was  suitable  for  agriculture 
and  14,430  hectares  for  stockraising.  By  States  these  allotments 
were  as  follows:  Bolivar,  10,939  hectares;  Sucre,  2,598  hectares; 
Lara,  2,291  hectares;  Merida,  1,215  hectares;  Anzoategui,  1,098 
hectares;  Zulia,  575  hectares. 

CENTERS  OF  POPULATION  AND  COMMERCIAL  DISTRICTS. 

Most  of  the  population  of  Venezuela  inhabits  the  highlands  and 
rich  interior  valleys  along  the  Caribbean  coast  and  the  higher  lands 
in  the  Venezuelan  Andes  to  the  west  of  the  States  of  Trujillo, 
Tachira,  and  Zulia.     The  most  densely  populated  district  is  the 


POPULATION  AND  LIVINQ  CONDITIONS. 


19 


Federal  District,  with  the  capital,  Caracas,  which,  with  an  area  of 
only  1,930  square  kilometers,  contains  136,648  people,  or  70.8  persons 
per  square  kilometer  ^.386  square  mile).  The  next  most  populous 
region  is  the  State  of  Carabobo,  where  the  density  is  43.9  per  square 
kilometer.  The  rich  agricultural  region  of  Valencia  is  in  Carabobo, 
which  is  connected  with  the  capital  by  the  Great  Railway  of 
Venezuela.  Toward  the  west  the  important  centers  of  Maracaibo, 
Trujillo,  Merida,  and  San  Cristobal  are  located,  with  Barquisimeto 
the  next  most  important  town  west  of  Valencia  after  Puerto  Cabello. 
Except  Barquisimeto,  all  the  towns  of  the  western  mountain  region 
named  are  accessible  only  through  Maracaibo,  which  is  the  ocean 
shipping  point  for  the  Western  Andean  region,  as  well  as  for  the 
Cucuta  district  in  Colombia. 

The  following  table  shows  the  area  of  the  Federal  District  and  the 
States  and  Territories  of  Venezuela  and  their  population  according 
to  the  census  of  1891  and  an  estimate  of  December,  1917.  This  infor- 
mation was  obtained  from  the  Memoria  del  Ministerio  de  Fomento 
for  1918,  but  several  necessary  corrections  haye  been  made  in  the 
population  per  square  kilometer. 


AdministratiTo  di^lsioiiis. 


Federal  Discrict. 

Ansoategiii 

Apuro 

AraRtia. 

Bolivar 

Carabobo 

Cojedes 

Falcon 

Guarico 

Lara 

Merida 

Miranda 

Monagas 

Nueva  Esparta.. 

Portuguesa 

Sucre 

Taohira 

Trujttlo 

Yaracuy 

Zamora 

Zulia 

Amazonas 

Delta- Ama  euro.. 


Total  for  country. 


Area 

(square 

kilometers). 


1,930 
43,300 
76,600 

5,8«1 
238,000 

4,309 
14,800 
24,800 
66.100 
19:800 
11,300 

7,950 
28,900 

1.270 
15,200 
11,800 
11,100 

7,400 

7,100 

35,200 

65,500 

281,700 

40,200 


1.020,400 


Population. 


Census, 
1891. 


n3,204 

134,064 

22,937 

99,151 

55,744 

165, 156 

87,935 

139,110 

183,930 

189,624 

88,522 

141,446 

74,5a3 

40,197 

96,045 

92,030 

101.709 

146,585 

86,844 

62,696 

150,776 

45,097 

7,222 


2,323,527 


Estimated 

December, 

1917. 


136,648 
161.703 

30,008 
118,685 

60.938 
193,234 
104.424 
170,154 
^20,488 
233,152 
115,537 
175,810 

90,439 

62,431 
114, 496 
118.160 
136,088 
185,624 
102,351 

75,329 
186,579 

45,097 
9,243 


2,844,618 


Population 
per  square 
kilometer. 


70.8 

3.7 

0.4 

20.3 

0.3 

43.9 

7.1 

6.9 

3.3 

11.8 

10.2 

22.1 

3.1 

41.3 

7.5 

10.0 

12.2 

26.1 

14.5 

2.1 

2.8 

.2 

.3 


2.8 


The  following  table  shows  the  principal  cities  of  Venezuela,  with 
their  population  according  to  the  census  of  1891,  and  their  lines  of 
commercial  communication.  These  cities  are  also  the  State  capitals, 
and  the  States  in  which  they  are  located  appear  after  the  names  of 
the  cities.  A  more  detailed  description  of  transportation  routes  may 
be  found  in  the  section  on  transportation. 


■VENEZUELA !  A  OOMMEBCIAI,  AND  INDUSTRIAI.  HANDBOOK. 


CltlBS. 

'r- 

OiuBimiDlaUonRMtBi. 

Biroel       (A       lMUi> 

H,08» 
■  »,1« 

8,16a 
i3,m 

7,7*6 

is,ew 

i:JS 

11,471 

16,797 

10.  Ml 

10,817 

M'740 

Port  of  OoBntato  Barcelona  Hy  ODinta  Railway. 

By  rlTer'steunei  Irom  Clndid  BoUybt,  up  Orin 
and.ApuTBKlTera.    Trip  can  be  made  Tjy  au 

San  Fenundo  de  Apnn  (Apace) 

oco  and 

B                              .1  not  o^ar  IJSOO  tons  throuRh 
Pi                              ralllroin  Puerto  Cabello. 

R                              UVeto.    F^ort  port  oidy. 

I  Puerto  Cabefio  by  coaatwiiie  v 
Pi                              leoda.    Blihway  not  complete 

« In  dry  senEon. 
Bi                              om  port  of  TncBcae,  wbloh  1 

t!  transshipped  Irom  Tnnto  Ci 
ir                              Id  from  port  ot  M^acalbo 

Barbara,  oienoe  by  rail  to  i'l  Viiria,  Uience  by  pa 
to  Merida.    Wagon  road  not  completed. 

(Sntral  Railway.    Commcrrially  tributary  to  C 
By  schooner  up  Cano  San  Juan  to  Guaraplche 
Cu.itoms  at  Cano  Colorado.    Thence  hy  flat  bi»t 

Schooners  to  port  ot  Pampalar,  Inland  ot  Marnrite 
PacktralnrlaBoeonoIrtm.Trl.Ullo. 

I^nlrados  on  Rio  Catatumbo.    Thrace  ov 
Feirocarril  de  Tachlra  to  end  nFllne  at  La  Uraca 
^  road  to  Ban  Cristobal.      Husin(sa  headqua 

Importi  transshipped  Irom  MaracaJbo  by  laic  ste 
lake  port  ol  La  Ceiba,  thence  by  rail  to  Mota 

ssa."*  — "■™"^'-"*"' 

Pacfcmuleand  wagonrcadtrom  Aroaon  branch  o 

Butorosd.wblchisnot  a«  yet  used  for  merchan 
Imports  transahlpped  by  coastwise  steamers  from 

Pack  mule  (rom  either  Trutillo  or  Mcrida. 
Steamers  from  New  York  via  Curacao  and  coast 

VcneEuela.    Only  small  boats,  a;  draft  Is  limlti 

leetoverbaratr^oulhoflake. 

Ciudad  BoHTBtTBollTBr) 

delta  of 

ckmnlB 

Oamian  de!  Tuy  (Mlreiid«). . .,. 

SUS?f:SK!-^«-.: 

SdajB) 

r  rrui 
thenOB 

an,  and 
not  yet 

H 

The  following  table  shows  the  population  (census  of  1891),  alti- 
tude, mean  annual  temperature,  and  death  rate  in  ldl2  of  the  prin- 
cipal cities  of  Venezuela: 


CiUea. 

'iss" 

Altttude. 

nuaite'm- 

Death  rate 
per  1,000. 

io;s97 

a.ieo 

72.  m 

16,  jM 

Meter: 

■! 

18 
1,041 

90.0 
BB.J 

Si 

J4.3 

„„,„.„.  ...o«..  .».,...„ 

UVloMcU... 

16.1 

POPOTiATION  AND  UVUTG  COWDmONS. 


21 


Cities. 


COBSOXEKAB  AND  ouuKA  HiOHLANDfr— Continued 

Merida 

Bocono 

San  Felipe 

TruJiUo 

Ocumare  del  Tuy 

Los  Teques 

Quacipati ., 

LLANOS  AND  OBINOCO  VALLEY. 

Ciudad  Bolivar 

Maturin 

Aragua  de  Barcelona 

San  Carlos.. 

Ouanare 

Calaboto 

San  Fernando  de  Apure 


Population 

(census  of 

1801). 


13,306 

13,333 

10,817 

10,481 

7,745 

6,916 

3,062 


17,535 

15,634 

15,680 

10,159 

9,051 

8,159 

6,605 


Altitude. 


2£eUri. 

1,641 

1,814 

345 

800 

310 

1,171 


38 
74 
110 
150 
183 
100 
73 


Mean  an- 
nual tem- 
perature. 


Difreea. 
66.3 
69.8 
83.4 
77.0 
83.4 
57.3 
86.0 


84.3 
80.6 
83.0 
81.5 
83.4 
84.3 
86.0 


]!)eath  rate 
per  1,000. 


31.3 
33.0 
30.0 
41.3 
39.3 
18.8 
31.3 


37.5 
13.5 
30.9 
33.0 
13.5 
35.1 
34.6 


RACIAL  CHARACTERISTICS. 


INDIAN  TRIBES. 


Along  the  northwestern  frontier  and  the  less  accessible  regions  far 
to  the  south  and  southwest  there  remain  in  Venezuela  several  Indian 
tribes  that  preserve  their  aboriginal  customs.  In  general,  the  Indians 
have  been  absorbed  by  intermarriage  with  the  Spaniards.  The  most 
j)owerful  tribe  is  that  of  the  Goajiras,  whose  territory  extends  from 
the  Rio  Hacha  in  Colombia  throughout  the  Goajira  Peninsula  into 
the  Maracaibo  Basin  of  Venezuela,  where  there  are  a  number  of 
villages  along  the  western  shores  of  Lake  Maracaibo.  The  Goajiras 
are  a  strong  and  warlike  race  and  have  successfully  resisted  all  at- 
tempts at  subjugation  for  centuries.  They  are  mainly  a  pastoral 
people,  possessing  herds  of  cattle  and  goats.  They  also  have  fairly 
well-tended  fields,  which  are  worked  by  the  women.  Potatoes,  corn, 
manioc,  and  yucca  are  grown,  and  also  the  plantain  and  banana,  but 
not  cacao  nor  coffee.  The  Goajiras  are  said  to  belong  ethnologically 
to  the  great  Carib  group ;  but  they  have  maintained  their  position, 
while  the  related  tribes  that  also  came  from  the  Caribbean  Islands 
have  been  driven  southward  or  absorbed  by  the  white  races.  The 
Goajiras,  besides  having  cattle  and  goats,  also  raise  very  good  range 
horses  and  are  expert  horsemen.  During  recent  years  these  Indians 
have  been  coming  into  the  villages  of  Lake  Maracaibo  in  increasing 
numbers  and  many  of  them  become  good  workmen  and  are  emplojred 
on  the  sugar  estates  along  the  lake  and  in  and  about  Maracaibo. 
Numbers  of  servants  employed  in  houses  in  the  city  of  Maracaibo  are 
(joaiira  Indian  women. 

About  30  other  tribes  have  been  classified  in  Venezuela,  and  their 
remnants  still  inhabit  the  forests  along  the  Rivers  Caroni,  Parana, 
and  Caura  and  in  the  regions  of  the  irpper  Orinoco  and  its  tributaries, 
notably  the  Ventuari.  The  Andine  Indians  are  ^ill  among  the  best- 
formed  and  most  intelligent  aboriginal  natives  of  Venezuela  and 
retain  many  of  their  native  industries  such  as  the  cultivation  of  corn, 
manioc,  and  yucca ;  the  manufacture  of  fibers  from  the  moriche  palm 
for  cloth,  or  simple  earthenware',  and  the  like.  The  river  Indians 
make  very  good  hammocks,  which  are  brought  down  the  rivers  by 


^2        VENEZUELA :  A.  CX)MME9GIAL  AND  INDUSTRIAL  HANDBOOK. 

the  rubber  traders.  For  weapons  they  use  the  bow  and  arrow  and 
the  blowpipe  with  poisoned  arrows,  treated  with  the  concentrated 
congealed  sap  of  Strychnos  toxifera^  called  "  curare."  All  are  skill- 
ful canoemen,  fishermen,  and  hunters.  During  colonial  times  Spanislk 
priests  jpenetrated  the  Guiana  and  Orinoco  regions,  even  establish- 
ing Indian  missions  as  far  up  the  Orinoco  as  JEsmeraldas,  near  its 
headwaters.  Now  this  territory  is  almost  unknown  except  to  a 
few  bands  of  rubber  hunters.  With  the  exception  of  the  Goajiras 
and  those  living  along  the  lower  Orinoco,  the  Indians  of  Venezuela 
have  little  contact  with  civilization  and  their  numbers  are  said  to  be 
much  less  than  is  generally  supposed. 

THE  NEGRO  ELEMENT. 

Until  1854  N©gro  slaves  were  imported  into  Venezuela.  In  Vene- 
zuela, as  in  other  Spanish- American  countries,  there  has  been  a 
fradual  mixture  of  the  three  elements — Spanish,  Indian,  and  Negro, 
'he  Negro  infusion  is  more  pronounced  throughout  the  coast  regions ; 
in  the  Andean  region  to  the  west  the  Negro  has  not  penetrated  to 
.  any  great  extent,  the  blood  being  Spanish  and  Indian  and  the  people 
of  very  different  type  from  those  of  the  coast  towns.  To-day  the 
mixture  of  Indian  and  Negro  is  still  going  on,  there  being  consider- 
able immigration  from  the  West  Indies ;  many  West  Indian  Negroes 
are  found  in  all  the  coast  towns.  The  better  class  of  the  people 
of  Venezuela  are  made  up  of  the  descendants  of  the  old  Spanish 
families,  in  many  cases  mixed  with  Indian  bloo.d. 

FOREIGN  COLONIBS. 

Caracas,  Maracaibo,.and  Ciudad  Bolivar,  the  principal  commercial 
cities,  have  fairly  large  foreign  colonies  composed  of  Germans, 
Syrians,  Spanish  and  Moroccan  Jews,  a  few  Italians,  French,  Eng- 
lish, and  Americans — the  last  beingless  numerous  at  present  than  the 
representatives  of  other  nations,  TThe  largest  representation  is  that 
of  the  Germans,  who  have  been  in  the  country  for  years  engaged  in 
trade ;  the  largest  commercial  houses  are  German,  The  Syrians  are 
all  in  the  dry  goods  trade;  many  have  large  stores  and  are  heavy 
importers  of  textiles  and  general  merchandise.  French  and  Italians 
are  in  trade,  principally  in  fancy  dry  goods,  styles,  clothing,  etc. 
The  English  colony  represents  the  managerial  forces  of  the  British 
harbor  and  railway  companies  and  banks,  the  public  utility  corpora- 
tions, such  as  the  Caracas  Tramways,  and  the  cattle  and  meat-packing 
industry.  There  are  also  several  large  British  commercial  houses 
doing  a  general  commission  and  merchandising  business.  There  are 
a  few  American^  in  trade,  and  the  establishment  of  Americaja  branch 
banks  has  brought  many  more  Americans  into  Venezuela  in  recent 
years.  Many  Americans  are  also  in  the  country  districts,  princi- 
pally in  the  Maracaibo  petroleum  region,  engaged  in  oil  work.  About 
60  Americans  are  in  the  Maracaibo  regipn,  and  the  number  is  rapidly 
increasing. 

,  All  foreigners  are  well  received  in  Venezuela  and  take  part  in  all 
social  life,  and  there  is  a  free  field  in  business;  in  fact,  foreigners 
receive  many  special  attentions  ^d  are  objects  of  special  consider- 
ation throughout  the  country  as  a  rule.  The  most  powerful  foreign 
influence  is  German.    German  x^ominercial  Houses  have  long  been  es- 


POPULATION  AND  UYUSfOt  OONmnONS.  28 

tablished  in  the  country,  and  Germans  have  permanently  identified 
themselves  with  the  people  by  intermarriage  with  some  of  the  oldest 
and  best-known  Venezuelan  iamiliea  The  lar^st  railway  in  the 
country  was  built  by  German  capital  and  is  still  operated  by  the 
Germans,  and  the  largest  commercial  houses  are  German.  After  the 
close  of  the  war  many  young  Germans,  formerly  connected  with  Ger- 
man business  houses  in  different  parts  of  Venezuela,  returned  to  the 
country  to  take  up  their  employment  and  again  identify  themselves 
with  the  business  and  social  life  of  the  peopk. 

German  firms  in  Venezuela  did  not  feel  tne  restrictions  imposed  by 
the  war  as  in  other  Latin  American  countries.  They  were  able  to 
continue  their  business  in  some  fashion  and  collect  great  quantities 
of  cacao,  hides,  and  coffee,  which  were  held  and  sold  at  very  high 
•prices  just  after  the  armistice.  The  very  export  restrictions  worked 
m  their  favor  by  forcing  them  to  hold  export  products  until  after  the 
armistice,  when  much  higher  prices  were  obtained. 

The  foreign  colony  of  Caracas  is  made  up  as  follows :  Americans,  75 
^banking,  petroleum,  trade) ;  Germans,  125  (trade) :  Porto  Ricans,  25 
(trade) ;  Syrians,  30  (trade) ;  Italians,  45  (trade) ;  French,  30  (trade, 
tailoring,  etc.) ;  English,  40  (trade,  public  utilities,  cattle,  etc.) .  This 
estimate  of  the  foreign  colbny  does  not  take  into  account  transients 
nor  traveling  salesmen. 

Ciudad  Bolivar  has  a  small  foreign  colony,  its  commerce  being 
principally  in  the  hands  of  Syrians,  Corsicans,  and  traders  from  the 
West  Indies. 

In  the  Maracaibo  region  and  in  Cucuta,  Colombia  (tributary  to 
Maracaibo),  the  Germans  constitute  the  most  numerous  and  influential 
foreign  group,  there  being  approximately  60  Germans  of  permanent 
residence  in  tnese  two  places,  all  engaged  in  trade.  Some  of  the 
largest  Venezuelan  houses  in  Caracas  and  Maracaibo,  the  two  great 
trading  centers  of  the  country,  are  either  owned  or  controlled  by 
German  interests. 

ECONOMIC  AND  SOCIAL  CONDITIONS. 

As  in  other  Spanish-American  countries,  most  of  the  people  im 
Venezuela  (estimated  at  70  per  cent  of  the  total)  receive  low  wages 
and  have  low  purchasing  power.  This  class  is  composed  of  the 
people  whose  blood  is  Indian  and  Negro,  the  latter  predominating 
in  the  coast  regions. 

There  is  a  numerically  small  middle  class  in  whose  veins  flows  a 
greater  percentage  of  Spanish  blood  and  who  are  the  artisans, 
craftsmen,  etc.,  of  the  country  and  often  occupy  important  clerical 
positions.  Next  in  number  come  the  we<|lthy  people,  who  are  bank- 
ers, merchants,  professional  men,  and  the  governing  class,  many  of 
them  direct  lineal  descendants  of  the  old  Spanish  colonial  families. 
Many  of  this  class  are  educated  in  Europe  or  the  United  States. 

Prior  to  the  war  the  foreign  contact  of  this  upper  class  was  largely 
with  Europe,  principally  France  and  Germany;  the  schools  of  medi- 
cine attended  were  French,  and  the  engineering,  mechanical,  and 
commercial  schools  German.  Durinjpi  the  war,  Venezuela,  like  other 
Spanish-American  countries,  was  K>rced  to  seek  supplies  in  the 
IJnited  States,  and  Venezuelan  business  men  visited  the  United 
States  in  greater  numbers  than  ever  before.    The  result  has  been  a 


24        VBISTEZUELA: :  ▲  OOMMEBOIAL  AIH)  INDUSTBIAIi  HiLNDBOOK. 

better  acquaintance  and  a  sincere  liking  and  admiration  for  Ameri- 
can institutions  and  methods.  The  Mecca  for  the  Venezuelan  trav- 
eler is  no  longer  Paris,  London,  or  Hamburg,  but  New  York,  and 
youn^  men  are  being  sent  to  the  United  States  in  increasing  numbers 
for  higher  education  and  instruction  in  the  sciences.  Over  half  of 
the  people  of  the  better  class  that  one  meets  in  Venezuela  are  either 
talking  about  their  recent  trip  to  New  York  and  the  United  States 
or  are  planning  to  go  there  in  the  near  future  for  a  tour,  business, 
or  education.  American  works  on  engineering  subjects  are  begin- 
ning  to  be  seen  in  increasing  numbers  in  the  bookstores. 

PURCHASING  POWER  OF  THE  POPULATION. 

Taking  the  high  year  of  1920,  and  placing  th^  total  population 
at  the  estimated  figure  of  2,844,618,  and  the  total  imports  of  foreign 
merchandise  of  all  kinds  at  308,751,964  bolivars  ($59,589,129  at  par) 
for  the  same  year,  the  per  capita  purchase  of  JEoreign  goods  and 
materials  amounted  to  108.54  bolivars,  or  $20.95  (at  par).  This, 
is  a  high  average  as  compared  with  other  Latin  American  countries 
where  similar  conditions  obtain. 

Of  the  total  population,  as  has  been  said,  70  per  cent  possess  a 
very  low  purchasing  power.  Estimating  this  70  per  cent  of  the  peo- 
ple as  numbering  1,990,000  in  round  figures,  whose  purchasing  power 
for  foreign-made  goods  c^an  not  be  placed  higher  than  $3.60  per  year, 
it  will  be  seen  that  the  percentage  taken  by  the  smaller  middle  and 
ifpper  classes  is  fairly  high,  denoting  prosperity  and  a  high  per- 
centage of  consumption  of  imported  goods  of  many  kinds.  Exports 
for  1920  amounted  to  168,038,854  bolivars  ($32,431,499),  or  59.07 
bolivars  per  capita,  equal  to  $11.40.  The  per  capita  {production  of 
exportable  products  and  per  capita  consumption  of  foreign  goods  are 
considerably  higher  in  Venezuela  than  in  either  Colombia  or  Ecuador. 

Three  factors  contribute  to  the  higher  per  capita  production  of 
Venezuela  as  compared  with  the  neighboring  Republics:  (1)  The 
proximity  and  easy  access  of  the  rich  interior, lands  to  the  coast  and 
the  seaports;  (2)  better  individual  effort,  evidenced  by  the  many 
small  articles  of  local  manufacture;  (3)  exports,  averaging  about 
$560,000  annually,  that  originate  in  the  Gucuta  region  of  Colombia 
and  are  exported  through  Maracaibo  as  Venezuelan  exports. 

The  largest  centers  oi  consumption  of  foreign  goods  are  Caracas, 
Valencia,  and  Maracaibo.  Caracas  is  the  commercial  distributing 
center  fch*  the  rich  Valley  of  Caracas  and  the  country  to  the  south 
and  southwest  and  also  to  the  east  as  far  as  Maracay ;  Valencia,  for 
the  productive  agricultural  and  cattle^raising  region  of  the  States 
of  Carabobo  and  i  aracuy ;  and  Maracaibo  for  the  entire  Andean  re- 
gion, including  the  populous  centers  of  San  Cristobal,  Merida,  and 
Trujillo  and  also  the  Cucuta  district  of  Colombia.  Both  Caracas  and 
Valencia  have  a  considerable  manufacturing  industry  also.  Ciudad 
Bolivar  is  the  trading  center  for  the  Orinoco  Valley  and  its  forest 
products  of  rubber,  balata,  chicle^  balsams,  tonka  beans,  etc.,  and  also 
of  hides  and  gold. 

LIVING  CONMTIONS^ 

< 

Unlike  the  neighboring  Bepublic  of  Colombia,  as  a  general  thing 
Venezuela  does  not  present  a  very  wide  division  of  property,  the  rule 


FOPUIiATION  AND  UVINO  OONBITIOKS.  85 

being  large  landed  estates.  This  is  especially  true  of  the  central  part 
of  the  country  around  the  capital,  and  also  in  the  Valencia  region. 
To  the  west,  in  the  Andes  of  Tachira  and  Trujillo,  there  are  many 
small  coffee  and  cacao  planters. 

RESmSNCES  OF  WBALTHIER  CLASSES. 

All  the  centers  of  population  present  great  contrasts  in  manner  of 
living.  The  capital,  Caracas,  possesses  a  great  number  of  "splendid 
suburban  residences,  veritable  palaces,  surrounded  by  beautiful  gar- 
dens and  grounds.  The  interiors  of  these  residences  and  of  those  of 
the  wealthier  class  in  the  city  proper  are  very  fine,  containing  not 
only  modern  conveniences  but  many  evidences  of  culture  and  art. 
The  prevailing  taste  is  French^  not  English  nor  American.  The  great 
"sala,"  or  formal  parlor,  is  always  like  a  formal  French  drawing- 
room,  with  high  ceiling,  heavy  hangings,  heavy  laee  curtains  with 
tapestry  overdrapery,  upholstered  furniture  and  porcelain  statuettes, 
great  French  gilt  pier  mirrors,  and  the  like.  The  monthly  expenses, 
including  food,  servants,  electric  light,  telephone,  etc.,  average  2,000 
bolivars  ($386)  for  an  establishment  of  this  kind  in  a  better  residen- 
tial district  of  the  city.  This  estimate  allows  for  five  servants — cook^ 
laundress,  housemaid,  dining-'room  maid,  and  nurse  girl.  If  an  auto- 
mobile is  kept — and  many  of  the  wealthy  families  have  car& — its  cost 
and  the  chauffeur's  salary  are  extras;  few  drive  their  own  cars.  Fees 
for  doctors,  lawyers,  etc.,  are  considerably  higher  in  the  larger  cen- 
ters of  Venezuela  than  in  the  United  States. 

All  the  larger  cities,  especially  Caracas,  have  drives  in  the  suburbs 
where  are  found  the  homes  of  the  rich  merchants,  professional  men, 
and  members  of  the  Government.  These  houses  are  detached  and  are 
surrounded  by  gardens,  sometimes  protected  from  the  street  by  high 
masonry  walls,  but  more  often  set  off  only  by  an  ornamental  iron 
fence  set  on  a  brick  or  cement  coping.  These  houses  are  modem  in 
construction  and  architecture,  the  better  ones  being  built  of  rein- 
forced concrete  with  steel  framing  or  native  kiln  brick  (unpressed). 
The  brick  houses  are  stuccoed.  Wall  paper  is  used  in  the  parlors, 
and  the  dining  room  and  bedroom  walls  are  painted,  often  in  fancy 
designs  and  rather  too  vivid  colors.  There  are  usually  enough  win- 
dows and  doors  for  good  lighting  and  ventilation,  except  in  the  back 
rooms  and  kitchens. 

Even  in  the  better  houses  no  stoves  are  used  except  for  cooking. 
Heating  appliances  are  unnecessary  on  account  of  the  semitropical 
climate  in  Caracas  and  the  low  country.  The  kitchens  are  equipped 
with  a  masonry  arrangement  for  burning  wood  charcoal.  This  is 
the  universal  fuel;  it  is  brought  in  from  the  neighboring  country  in 
small  mule  carts  and  on  burros  by  charcoal  vendors,  who  go  from 
house  to  house  making  deliveries.  In  Trujillo,  Bocono,  and  Merida, 
where  the  higher  elevation  and  proximity  to  the  snow-capped  moun- 
tains make  the  winter  months  much  cooler,  the  houses  are  still  built 
on  the  old  Spanish  plan,  with  central  "  patioj'^  or  court,  and  no  in- 
terior heating  is  provided,  although  the  evenings  in  November,  De- 
cember, January,  and  February  are  chilly. 

The  old-style  houses  used  as  residences  in  the  older  part  of  the 
cities  are  all  of  the  old  Spanish  colonial  architecture  with  the  central 
patio.    There  is  usually  the  main  room  (the  sala),  in  front  on  th^ 


26        VENEZUEIA :  A  COMBCEBOIAL  AND  INDUSTRIAL  HANDBOOK. 

street;  then  a  small  reception  room,  roofed  but  open  to  the  patio, 
with  the  bedrooms  on  one  side  and  the  dining  room  just  back  of  the 

{>atio;  then  come  the  kitchen,  sometimes  a  servant's  room  off  the 
atter,  and  the  bath  and  laundry  under  a  separate  roof  on  one  side  of 
the  back  patio,  which  also  contains  the  "aljibe"  for  storing 
water  for  domestic  purposes,  washing,  etc.  These  houses  contain  7 
to  10  rooms,  two  or  three  bedrooms  being  over  the  dining  room  in  the 
rear  and  overlooking  the  back  patio.  These  upper  rooms  are  the 
most  desirable,  as  they  are  more  nearly  free  from  dampness  in  the 
rainy  season  and  have  much  better  light  and  ventilation;  most  of 
the  lower-story  rooms  have  no  other  opening  than  the  door  leading 
out  to  the  patio,  and  are  dark  and  damp  even  on  bright  days.  It  is 
difficult  to  secure  a  good  room  for  an  office  in  the  old  residence  dis- 
tricts of  Caracas,  on  account  of  the  lack  of  sufficient  light,  unless 
artificial  lighting  is  installed  and  used  during  the  day. 

SERVANTS  AND  WAGES. 

Servants  are  plentiful  and  very  cheap.  The  best  are  Martinique 
Negro  or  mulatto  women,  or  Negroes  from  Barbados,  Trinidad,  or 
Jamaica.  The  Martinique  women  are  famed  as  good  cooks  and  the 
majority  are  bright  and  intelligent.  Domestic  service  is  the  princi- 
pal outside  occupation  of  the  poorer  classes.  Numbers  of  girls  and 
women  are  also  employed  in  the  cigarette  factories.  A  cook  receives 
86  to  60  bolivars  ($6.75  to  $11.60)  per  month;  a  first-class  laundress 
who  can  do  starched  collars,  shirts,  etc.,  receives  about  $6  per  month ; 
a  maid  or  a  nurse  girl,  about  $4  per  month.  The  cook  does  the 
marketing  also,  from  a  fixed  allowance  in  money  every  day,  the  din- 
ing-room maid  getting  and  serving  the  petit  dejeuner.  As  a  rule, 
each  child  in  a  wealthy  family  has  its  own  nurse. 

RENTS. 

In  Caracas  a  furnished  residence  containing  parlor,  three  rooms, 
dining  room,  and  kitchen  downstairs  and  three  rooms  upstairs,  lo- 
cated in  a  fairly  good  neighborhood,  rents  readily  for  an  equivalent 
of  $150  per  month  on  a  six-months'  lease.  Nothing  desirable  of  this 
size  could  be  obtained  unfurnished  for  less  than  $100  per  month. 
Rents  are  lower  in  the  interior,  but  the  houses  are  not  so  good  and 
nearly  always  lack  modern  conveniences. 

COST  OF  FOOD. 

First-class  boarding  houses,  or  pensions,  which  are  used  by  trav- 
elers more  than  the  poor  hotels,  charge  for  room  and  table  board  14 
to  24  bolivars  ($2.70  to  $4.63)  per  day,  or  for  the  more  desirable 
rooms,  like  those  in  the  upper  floors,  as  high  as  40  bolivars  ($7.72). 
The  cost  of  the  average  daily  food  supply  for  a  family  of  six  people 
with  four  servants  amounted  to  31.&0  bolivars  ($6.15)  in  August, 
1920,  the  items  being  as  follows : 

Bolivan. 

1  fish,  weighing  about  li  pounds 3.  50 

1  Wlo  ports 5. 00 

8  kilos  potatoes ^ 2. 40 

9  eggs 3.  00 

1  aguacate  (aUigator  pear) 0.50 


FOPUIATIO:Br  AND  IJ¥INO  OOKDITIOHS.  27 

BoUyftni. 

1  kilo  beef  roast 1 5. 00 

6  oranges 1 1. 00 

1  dozen  bananas 0. 50 

3  plantains 0. 50 

1  dozen  peaches  (for  dessert) ^ . , -^_  0.75 

Vegetables 1.00 

Lard i 1. 00 

Salad  materials — ^ ^ ^ 0. 75 

4  dozen  wheat-flour  rolls 4. 00 

li  Uters  milk 1. 50 

Coffee  for  three  meals 1. 50 

Total 81. 90 

MI8CEIXANE0U8  EXPENSES. 

Electric-light  bills,  payable  twice  a  montH,  would  run  about  160 
bolivars  ($30.90)  per  month.  The  telephone  costs  15  to  20  bolivars 
($2.90  to  $3.85)  per  month.    Commercial  service,  of  course,  is  higher. 

'^OMES  OF  TttE  POOBEE  CLA88E& 

The  poorer  classes  live  in  small  houses  of  two  or  more  rooms  in  the 
poorer  quarter  of  the  city  and  are  finding  conditions  more  and  more 
difficult  as  prices  of  necessities  continue  to  advance  in  all  parts  of  the 
country.  These  smaller  houses  have  no  electric  light,  piped  water^ 
or  other  conveniences.  Water  usually  has  to  be  carried  from  public 
fountains  in  the  street.  Recent  sanitary  regulations  in  Caracas, 
which  have  been  followed  by  similar  regulations  in  the  capital  cities 
of  the  Slates,  require  property  owners  to  use  only  cement  for  floors 
and  to  install  water  piping,  modem  toilets,  and  water  tanks  of  metal 
with  hinged  covers  and  forbid  the  use  of  thatched  roofing.  The  high 
cost  of  i^aterials  and  modem  fixtures  for  the  repairs  made  necessary 
by  this  law  works  a  hardship  upon  small  house  owners  who  have  ac- 
quired their  property  under  dimculties,  since  there  is  no  Government 
agency  to  help  small  property  owners  with  long-time  loans. 

There  is  strict  sanitary  inspection  in  Caracas  and  some  of  the 
larger  cities  of  the  Stated.  Heavy  fines  are  imposed  for  open  garbage 
cans,  uncovered  water  tanks,  and  all  collections  of  dirt.  Every  house 
is  entered  by  two  inspejctors  periodically.  In  Caracas  garbage  and 
refuse  are  collected  in  covered  autotrucks,  Ford  chassis  being  used, 
equipped  with  pressed-steel  covered  bodies.  With  the  completion  of 
the  extensions  to  the  aqueduct,  now  inadequate  to  supply  the  city  with 
water,  and  of  the  new  cement  sewerage  system  that  is  under  rapid 
construction,  malaria  and  typhoid  should  almost  disappear  from 
Caracas.  At  present  the  city  water  can  not  be  used  without  danger. 
Distilled  water  is  served  in  the  better  hotels,  pensions,  and  private 
houses.  A  campaign  is  being  carried  on  by  the  Government's  Sani- 
tary Department  against  the  house  fly,  which  is  a  terrible  pest  in 
Caracas  and  the  surrounding  country.  The  great  difficulty  encoim- 
tered  is,  of  course,  ignorance  of  sanitation.  However,  all  agencies, 
including  the  church,  are  cooperating  for  popular  education  in  this 
subject.  Pure  milk  is  distributed  gratis  to  tnose  who  can  not  pay  and 
flytraps  are  sold  at  cost  to  the  general  public. 

In  the  poorer  houses  the  furnishings  are  of  the  simplest — a  few 
locaUy  made  chairs,  a  rough  table  or  two,  and  canvas  cots  or  perhaps 


38       VENEZUELA  :  A  GOMKEBOIAI.  AND  nmUSTBIAL  HANDBOOK. 

wooden  bed,  a  small  fancy  mirror  or  two,  and  a  few  cheao  colored 
prints.  Imported  furniture  and  house  furnishings  are  used  only  by 
the  wealthy.  Good  local  shops  are  found  where  excellent  furniture 
is  made  out  of  the  native  hardwoods.  Several  shops  specialize  in 
fancy  upholstered  furniture,  also  made  locally,  the  covering  ma- 
terials being  imported  from  France  and  the  United  States. 

RESORTS  AND  AMUSElfENTS  IN  CARACAS .  DISTRICT. 

The  resorts  near  Caracas  are  the  seaside  hotel  at  Macuto,  connected 
with  Caracas  by  automobile  highway  and  the  La  Guaira  Railway, 
which  is  operated  by  electricity  from  La  Guaira  to  Macuto  (4^  kilo- 
meters). The  trip  is  usually  made  by  automobile  over  the  highway, 
which  winds  and  twists  down  the  piountain  to  sea  level,  the  round 
trip  (the  same  day^  being  made  for  150  bolivars  ($29).  The  bathing 
is  not  good.  The  notel  accommodations  are  fair  but  the  food  is  not 
so  good  as  in  Caracas.  The  main  attraction  is  the  large  cement- 
paved  promenade  along  the  water  front. 

The  town  of  Los  Teques^  27  kilometers  from  Caracas  by  either  the 
Gran  Ferrocarril  de  Venezuela  or  automobile  road,  has  an  elevation 
of  some  425  feet  more  thin  Caracas,  being  situated  in  the  hills  of  the 
Coast  Range  at  about  3,800  feet  above  sea  level.  It  is  an  attractive 
village  of  about  6,000  people  and  there  are  many  fine  "  villas  "  where 
the  wealthy  families  of  Caracas  ^  to  spend  the  summer  (rainy-season) 
months.  There  is  a  park  here  laid  out  by  the  railway  company  (Gran 
Ferrocarril  de  Venezuela);  ind  excursions  are  run  over  the  railway 
from  Caracas  over  Sunday.  Many  parties  make  the  trip  by  automo- 
bile over  the  highway,  the  distance  being  just  under  30  kilometers 
from  the  center  of  Caracas.  The  only  hotel  in  Los  Teques  is  the 
La  Suisa,  but  there  are  a  few  pensions.      .     . 

Public  carriages  and  automobiles  for  hire  in  Caracas  are  good  and 
the  charges  reasonable.  A  first-class  carriage  can  be  hired  for  6 
bolivars  ($1.16)  per  hour  and  a  seven-passenger  car  costs  20  bolivars 
($3.86)  per  hour  in  and  about  Caracas.  One  of  the  principal  diver- 
sions is  to  drive  on  the  "  Paraiso  "  in  the  late  afternoon. 

'Spanish  theatrical  companies  come  to  Caracas  frequently,  and 
there  are  four  good  moving-picture  theaters  in  the  city.  There  are 
also  bullfights  on  Sunday  artemoons  all  the  year  round.  There  are  a 
number  of  good  tennis  courts  in  the  environs,  and  a  new  golf  course  is 
being  worked  out  by  members  of  the  foreign  colony.  Horse  racing  in 
the  National  Hippodrome  goes  on  during  the  fall  and  winter  months. 

CONDITIONS  IN  ^SVALL  TOWNS  AND  ON  JtANCHBS  AND  LUINOS. 

On  the  farms  and  ranches  of  the  interior  and  in  the  many  small 
towns  and  villages,,  living  conditions  are  primitive  among  the  lower 
classes.  Towti  nouses  are  built  of  adobe  or  soft  brick  and  the  better 
ones  have  either  tiled  or  flat  roofs,  but  most  of  them  are  palm- 
thatched.  On  the  outskirts  houses  are  made  of  wattled  poles  plas- 
tered with  mud',  being  mere  huts,  often  of  only  one  room,  the  simple 
cooking  being  done  in  tjie  open  air  under  a  small  lean-to  roof  at- 
tached to  theTiouse.  The  houses  on  the  lar^e  ranches  and  haciendas 
occupied  by  the  peons  (laborers)  are  of  this  class,  of  huts ;  the  men 
build  them  themselves,  using  only  the  machete  for  the  entire  job. 


POPULATION  AND  I^IVIJffG  GONDIXIONS. 


S9 


These  classy  are  large  consumers' of  impoFted  and  domestic  oottim 
cloth,  drills,  etCj  which,  except  medickie8f  cheap  perfumes^  ribbons, 
and  other  simple  ornaments,  and  the  universal  machete^  are  about  the 
only  articles  oi  foreign  manufacture  purchased.  Another  important 
exception  is  the  sewing  machine.  It  is  quite  a  surprise  to  the  traveter 
to  find  a  new  foot-power  machine  uJdder  a  thatched  roof  in  sonfe 
out-of-the-way  mountain  or  plain  village  of  only  a  few  families. 
These  machines  are  often  brought  in  on  mule  back  smd  are  usually 
purchased  on  the  installment  plan  fromonei  of  tibe  maaDkv  agenciefi. 
Hand-power  sewing  machines  also  are  fairly  common  ana  are  often 
preferred  on  account  of  their  small  bulk  and  ea^  transport  from 
place  to  place.  • 

In  the  ^reat  llanos,  where  the  principal  industry  is  cattle  raising, 
the  primitive  living  conditions  can  not  always  be  taken  as  an  indica- 
tion of  the  people's  wealth.  O^ly  gold  coin  is  accepted  by  the  Uaneros 
for  their  cattle;  they  refuse  paper  money  of  all  kinds  and  take  very 
little  silver.  This  gold  coin  is  hoarded,  and  a  Uanero,  dressed  lite 
his  peons  or  cowboys,  may^  have  thousands  of  dollars  in  gold  buried 
somewhere  about  his  premises.  The  men  of  the  great  plains  are  keen 
traders,  very  suspicious  of  all  new  things  and  ideas  they  do  not 
understand,  and  constitute  a  class  by  themselves  in  Venezuela.  Gold 
has  been  hoarded  for  years  in  the  llanos  and  there  is  no  way  of  esti- 
mating this  constant  drain  from  circulation. 

With  the  advances  being  made  in  education  in  Venezuela,  together 
with  the  prosperous  condition  of  the  country  due  to  the  high  prices 
obtained  for  exports  of  coffee,  hides,  and  cacao,  during  and  lust  after 
the  war,  the  people  are  progressing.  Their  per  capita  production  is 
already  higher  than  that  of  either  Colombia  or  Ecuador,  and  year 
by  year  they  wiU  be  greater  consumers  of  imported  materials  and 
articles. 

PROGRESSIVE  TENDENCIES. 

The  wealthy  Venezuelan  has  traveled,  knows  one  or  more  lan- 
guages (usually  French  or  English  or  both)  and  has  a  good  idea  of 
Euroj)e  and  of  the  United  States.  Those  engaged  in  commercial 
pursuits  are  keen  observers  of  foreign  markets  (quick  to  take  ad- 
vantage of  changes  in  New  York,  London,  or  Hamburg  quotations), 
experts  on  exchange,  and  keen  traders,  knowing  well .  their  own 
markets  and  local  and  national  conditions.  Commerce  has  suffered 
in  the  past  from  the  effects  of  revolution  iand  internal  political  strife, 
but  over  10  years  of  peace  and  security,  combined  with  the  sound 
financial  condition  of  the  Government,  have  accomplished  wonders 
for  the  development  of  trade. 

The  mechanics  and  artisans,  the  small  shopkeepers,  clerical  as- 
sistants, etc.,  constitute  the  middle  class.  Many  of  the  younger  men 
have  worked  in  shops  and  factories  in  the  United  States  or  in  Europe, 
and  are  fair  mechanics.  For  example,  one  was  found  in  Caracas 
who  could  make  parts  of  the  delicate  mechanism  of  a  kodak  shutter 
and  even  adjust  the  timing  apparatus.  There  are  several  good 
garages  in  Caracas,  Valencia,  Barquisimeto,  and  Maracaibo,  where 
repairs  are  made,  lathe  work  being  done  and  broken  parts  replaced 
with  new  ones  kept  in  stock.  The  electric-light  companies  use  native 
linemen,  installation  men,  etc.,  about  the  only  foreigner  being  the 


80        VBNEZUBIA :  A  OOMMEBGIAL  AND  INDITSTRIAIi  HANDBOOK. 

supermtend«nt  in  charge  who  has  trained  his  employees.  A  great 
step  forward  has  been  made  with  the  recent  establishment  in  Caracas 
of  a  manual  training  school. 

In  Caracas,  Valencia,  and  Maracaibo  one  can  hardly  enter  any  of 
the  large  retail  stores  without  being  addressed  by  some  clerk  in 
English.  Nearly  all  the  young  men  of  Venezuela  are  studying 
English. 

The  lack  of  sufficient  population  makes  increased  production  of 
agricultural  products  for  export  impossible  without  better  organiza- 
tion on  the  part  of  the  landowners  and  the  adoption  of  modem 
methods  with  the  use  of  tractors  and  other  machinery.  Many  of  the 
landowners  understand  this  condition  and  are  much  interested  in  the 
machinery  question.  The  Valencia  district  has  some  forty-odd  gaso- 
line farm  tractors  (Fordsons)  in  use,  and  still  greater  progress  in 
this  line  is  evident  for  ttie  near  future.  Gasoline  from  the  native 
refinery  in  the  Maracaibo  district  (San  Lorenzo)  costs  60  cents  per 
gallon  in  Caracas  or  Valencia,  but  increased  production,  at  present 
impossible  on  account  of  the  lack  of  means  for  cheap  coastwise  trans- 
portation, would  reduce  this  price.  If  gasoline  could  be  obtained  at 
about  30  cents  per  gallon,  the  use  of  gas  tractors  would  prove  eco- 
nomically possible  on  a  larger  scale.  Enough  automobiles  have  al- 
ready been  imported  to  insure  a  supply  of  men  trained  in  handling 
these  tractors  for  farm  use.  The  ranch  owners  have  had  two  very 
prosperous  years  and  are  investing  their  surplus  in  new  and  more 
modem  equipment.  The  rich  agricultural  region  of  Valencia  is 
capable  of  large  production  of  cereals  and  cotton,  though  at  present 
its  yield  is  just  aoout  sufficient  to  supply  the  domestic  demand  and 
leave  a  small  surplus  of  corn  and  some  lard.  With  increased  produc- 
tion, it  could  do  a  large  business  in  foodstuffs  with  the  important 
islands  of  the  West  Indies. 

Venezuela  merchants  are  very  progressive.  The  daily  and  weekly 
papers  are  used  freely  for  large-scale  advertising,  show  windows  are 
good,  and  the  stores  are  increasing  their  use  of  glass  showcases  and 
modern  fixtures  for  displaying  merchandise.  The  older  buildings  are 
being  remodeled  for  stores  on  a  much  more  modern  plan,  furnishing 
better  lighting  during  the  day.  In  short,  on  everjr  hand  there  is  felt 
a  spirit  of  advancement,  i^rinting  work  and  lithography  in  the 
larger  cities  is  on  a  par  with  the  best  seen  in  South  America,  and 
Caracas  boasts  one  oi  the  largest  and  most  modern  paper  and  print- 
ing plants  of  the  continent.  Venezuela  also  has  two  paper  mills, 
among  the  first  of  their  kind  in  South  America. 

The  two  prosperous  years  following  the  war  have  given  the  coun- 
try new  commercial  life  and  stimulus.  Business  in  general  was  at 
its  height  early  in  1920  and  improvements  of  all  kinds  were  under 
way.  Education  is  being  modernized  along  practical  lines.  Banking 
has  been  brought  up  to  a  high  standard  with  the  establishment  of 
foreign  banks  m  the  country  since  1917  and  with  trade  facilitated  and 
actually  created  thereby.  Venezuela  may  be  termed  one' of  the  most 
advanced  of  Latin  American  countries. 

Improvements  of  many  kinds  are  being  planned  by  the  Govern- 
ment, which  has  a  large  gold  surplus  to  make  these  plans  effective 
The  highway-construction  program  of  Venezuela  is  the  most  ex- 
tensive ever  undertaken  in  Latin  America  by  any  nation.    The  west- 


POPULATION  ANl>  mVING  CONDITIONS,  81 

em  central  highway  from  Caracas  to  San  Cristobal  is  1,000  kilo- 
meters long;  at  present  it  is  about  half  completed  and  the  work  is 
progressing  rapidlv.  Twenty-four  wireless  sets  are  being  installed 
at  strategic  points  for  rapid  internal  communication,  and  the  bids  are 
out  for  a  transatlantic  set,  which  will  reach  all  the  European  capitals 
and  the  United  States,  as  well  as  Buenos  Aires  in  South  America. 
The  modern  concrete  sewerage  system  of  Caracas  is  about  50  per 
cent  completed  and  the  aqueduct  is  being  extensively  repaired  and 
extended.  Few  streets  of  Caracas  remain  to  be  pavea  with  concrete. 
The  electric  street-railway  system  of  the  capital  is  adequate  for  its 
present  needs,  and  extensions  into  the  surrounding  country  are  aiding 
materially  in  the  city's  expansion.  The  example  of  the  capital  is 
being  followed  by  the  other  cities  of  the  country.  Many  small 
towns  of  Venezuela  have  electric-light  service ;  and  telephone  service 
is  being  extended  even  to  the  ranches  and  small  villages  of  the  in- 
terior, although  most  of  these  lines,  except  the  Caracas  system  and 
those  of  the  (rovemment,  are  local  private  enterprises.  Concessions 
have  been  granted  for  the  construction  of  railways  to  open  up  the 
great  coal  fields  of  the  west  and  to  give  access  to  the  rich  gold  fields 
of  the  El  Callao  region  toward  the  Guianas  from  Ciudad  Bolivar. 

The  policy  of  the  administration  is  one  of  strict .  economy  in 
Government  expenditures,  prompt  service  of  the  internal  and  inter- 
national debt,  and  practical  constructive  measures  for  the  develop- 
ment of  commerce  and  the  natural  resources  of  the  country.  The 
Ministry  of  Foreign  Belations  has  sent  a  number  of  commercial 
attaches  to  the  large  capitals  of  the  world,  and  this  ministry  is  also 
publishing  a  weekly  bulletin  (Boletin  Comercial  e  Industrial)  con- 
taining commercial  and  industrial  information  and  data  of  interest 
to  commerce.  The  Government  is  also  much  interested  in  the  de- 
velopment of  the  cattle  industry.  Experimental  dipping  pens  are 
under  construction  at  Maracay;  and  it  is  only  a  question  of  time 
when  dipping  of  aU  live  stock  will  be  made  compulsory  throughout 
the  country  to  combat  the  fever  tick  and  other  diseases  that  now 
cause  considerable  loss  and  damage.  Mention  should  also  be  made 
of  the  establishment  in  1917  of  the  Government  agricultural  station 
near  Caracas  and  of  the  new  one  near  Maracay,  where  good  work 
is  being  done  in  practical  demonstration,  the  circulation  of  seed,  and 
the  reclamation  of  waste  lands.  One  of  the  agricultural  experts 
of  the  United  States  Department  of  Agriculture  was  contracted 
with  for  this  work.  Twenty- four  French  airplanes  were  purchased 
by  the  Venezuelan  Government  during  1920.  A  new  deepwater 
harbor  on  the  Caribbean  is  being  planned  by  the  Government  at  a 
point  most  accessible  to.  the  cattle  lands  of  the  llanos  to  the  south  | 

of  Valencia  and  Maracay. 

Certain  reforms  have  been  pilt  into  effect  concerning  the  import 
tariff,  which  has  also  been  translated  officially  into  English  for  the 
assistance  of  exporters  to  Venezuela.  Other  tariff  changes  beneficial 
to  commerce  are  being  considered. 

COMMERCIAL  DEVELOPMENT. 

There  are  enough  importing  houses,  wholesalers,  and  large  retail 
merchants  to  take  care,  of  the  merchandise  demands  of  the  people  ^ 

in  all  sections  and  local  competition  is  very  keen.    The  country  is  | 


82        TENEZX7EIA:  A  COMMBBCIAL  AISTD  INDUSTKIAIi  HANDBOOK. 

visited  by  ni^nbers  of  trayeling  salesmen,  principally  American, 
English,  and  Gennan,  the  lai^  named  very  numerous  and  active 
recently.  A  larae  number  of  new  American  exporting  firms  are 
sending  men  to  Venezuela,  and  several  new  resident  offices  for  trade 
representation  are  being  established,  especially  in  Caracas  and  Mara- 
caibo.  The  banking  facilities  are  more  than  adequate  for  the  needs 
of  the  country  and  are  the  principal  factors  in  foreign-trade  develop- 
ment on  a  permanent  basis. 

In  considering  the  future  of  trade  with  Venezuela,  it  may  be  pre- 
dicted tbB,t  steady  business  with  the  country  will  be  a  matter  of 
attention  to  the  details  of  exporting,  such  as  packing,  billing,  pack- 
ing lists,  declarations,  markmg,  credits,  etc.;  and  most  important 
of  all,  the  intensive  cultivation  of  the  personal  relation. 

Venezuela's  volume  of  production  for  export  can  not  be  materially 
increased  without  immigration  or  the  application  of  machinery  to 
industry.  Immigration  on  any  large  scale  is  impossible  under 
present  world  conditions  without  Asiatic  immigration,  which  is  not 
acceptable.  The  solution,  then,  is  machinery  for  agriculture.  In 
the  meantime  Venezuela's  market  is  subject  to  seasonal  conditions 
having  to  do  with  the  volume  and  price  of  the  coffee  and  cacao  crops 
and  the  price  of  hides.  The  eastern  part  of  the  country,  tributary 
commercially  to  Ciudad  Bolivar,  is  dependent  upon  the  exports  and 
prices  obtained  for  rubber,  balata,  chicle,  and  other  forest  products. 
The  extension  of  the  cattle  industry  in  the  eastern  llanos  as  far  as 
the  edge  of  the  delta  country,  with  the  establishment  of  the  new 
packing  house  at  Barrancas,  is  doing  much  to  develop  trade  in  this 
region,  and  the  opening  of  tiie  old  gold  fields  in  and  about  the 
famous  old  mines  of  El  Callao  to  the  southeast  of  the  Orinoco  delta 
country  will  still  further  stimulate  trade.  An  electric  line  is  planned 
for  the  development  of  this  rich  gold-producing  region,  which  would 
make  that  part  of  the  country,  at  least,  less  dependent  upon  the 
fluctuations  of  the  coffee,  rubber,  and  cacao  markets. 

LABOR  CONDITIONS. 

Except  for  domestic  servants  and  operatives  in  the  cigarette  and 
textile  factories  of  the  larger  cities,  labor  is  scarce  in  all  parts  of 
Venezuela,  especially  the  more  developed  agricultural  regions,  such 
as  Valencia.  JPetroleum  companies  find  great  difficulty  in  recruiting 
sufficient  unskilled  labor  for  the  work  of  the  oil  fields.  The  popula- 
tion seems  to  gravitate  to  the  larger  cities,  where  there  is  a  plentiful 
supply  of  domestic  servants  and  cigarette  and  textile  workers.  The 
seaports  also  have  sufficient  workers  for  handling  cargoes,  their  num- 
bers being  recruited  from  the  West  Indian  immigrants  numbering 
6,000  to  11,000  Negroes  annually.  ♦  This  immigrant  population  is, 
however,  more  or  less  floating  in  character.  The  Negroes  speak  a 
number  of  languages  more  or  less  fluently  in  a  sort  of  patois  and  are 
well  acquainted  with  most  seaports  of  the  Caribbean  coast  and  of  the 
islands.  While  good  workers,  they  do  not  like  to  go  into  the  interior 
and  can  not  be  held  on  haciendas  for  any  length  of  time,  preferring 
the  seacoast. 

At  La  Guaira  stevedores  average  40  cents  per  hour,  with  60  cents 
for  overtime,  but  at  Puerto  Cabello  and  Maracaibo  the  rates  are 


POPULATIOK  AND  LIVING  COKDITIONS.  38 

lower,  being  1  bolivar,  or  $0,193,  per  hour  in  the  latter  port.  Com- 
mon laboreris  receive  an  average  wage  of  3  to  4  bolivars  per  day  in  the 
interioi*,  and  on  farms,  especially  in  the  llanos  and  Andean  regions, 
wages  average  about  25  per  cent  less.  It  is  not  easy  to  get  laborers  to 
go  from  one  place  to  another  or  to  get  them  to  do  work  to  which  they 
are  not  accustomed.  Along  the  coast  it  is  easy  to  make  a  living  by 
fishing  and  cultivating  a  small  patch  of  coconuts  or  bananas  or  sugar 
cane.  Efforts  to  absorb  some  of  the  surplus  labor  of  Caracas  in  the 
agricultural  fields  of  Valencia  and  Maracay  have  failed  on  account 
of  the  climatic  conditions,  the  men  from  the  higher  altitude  getting 
malaria  badly  and  returning  to  Caracas  after  a  short  time.  The  Lake 
Maracaibo  region  of  the  west,  the  vicinitv  of  Caracas,  and  the  low 
lands  of  the  coast,  the  llanos,  and  the  Valencia-Maracay  districts 
have  a  bad  name  among  the  men,  and  they  can  hardly  be  induced 
to  go  there  even  by  offers  of  higher  wages. 

Wages  vary,  depending  upon  the  supply  of  labor  in  any  given 
place.  The  Department  of  Public  Works  adopted  the  following 
schedule  in  1917  for  wages  per  day  and  this  has  also  been  adopted  for 
all  railway  and  construction  work  by  the  larger  companies:  Over- 
seers, 8  to  10  bolivars  ($1.54  to  $1.93) ;  masons,  6  to  8  bolivars  ($1.16 
to  $1.54) ;  carpenters,  6  to  8  bolivars  ($1.16  to  $1.54) ;  foremen  (in 
charge  of  common  labor),  5  to  6  bolivars  ($0.97  to  $1.16) ;  laborers, 
3  to  4  bolivars  ($0.58  to  $0.77) ;  boys,  1.50  to  2  bolivars  ($0.29  to 
$0.39).  Owing,  however,  to  the  building  of  a  number  of  fine  houses 
in  the  suburbs  of  Caracas  and  other  large  cities,  the  great  amount  of 
Government  road  work,  and  the  construction  of  the  new  aqueduct,  as 
well  as  the  forced  remodeling  of  many  old  dwellings  to  comply  with 
the  new  sanitary  regulations,  labor  has  been  scarce  during  the  last 
two  years,  especially  skilled  labor,  such  as  carpenters,  painters,  and 
masons,  and  the  wages  paid  have  sometimes  been  more  than  25  per 
cent  in  advance  of  the  figures  given. 

The  number  of  working  hours  per  day  is  nine— four  in  the  morning 
and  five  in  the  afternoon.  In  almost  every  industry,  and  more  espe- 
cially in  agricultural  work,  the  "  tarea,"  or  task  system,  is  used.  To 
each  man  is  assigned  a  certain  amount  of  work  per  day,  the  allotments 
being  fixed  by  custom.  When  finished  with  his  assignment,  the  peon 
can  either  leave  the  work  for  the  day  or  do  extra  work  for  which 
additional  payment  is  made. 

There  are  no  labor  unions  or  laws  protecting  workmen  against 
accident.    Industrial  insurance  is  unknown. 

The  only  serious  strike  was  that  of  the  men  of  the  La  Guaira  Har- 
bor Corporation  and  of  the  La  Guaira- Caracas  Railway  in  1918, 
caused  by  the  failure  of  these  companies  to  increase  wages  in  pro- 
portion to  the  rapidly  advancing  cost  of  living.  The  strike  was  soon 
won  by  the  men  and  wages  were  raised  by  approximately  25  per  cent. 
This  action  involved  an  increase  in  the  operating  expense  of  the  com- 
panies of  about  5  per  cent  and  amounted  to  an  average  annual  total 
of  51,571  bolivars  ($9,953). 

Negro  labor  is  recruited  in  Barbados,  Trinidad,  and  the  Guianas 
for  the  gold  fields  of  the  El  Callao  region  and  for  the  asphalt  deposits 
of  the  Bermudez  district  in  the  delta  region.  A  plentiful  supply  of 
good  labor  from  Martinique,  Jamaica,  and  other  West  Indian  islands 

79747'— 52 i 


84        TENEZTTEIA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

could  be  obtained  for  any  large  undertaking,  such  as  the  construction 
of  a  railway,  new  docks,  or  harbors.  In  the  Maracaibo  Basin  region, 
labor  is  also  recruited  from  the  Goajira  Indians  living  to  the  west 
of  the  lake  in  Venezuela  and  Colombia.  A  number  of  these  Indians 
are  now  employed  in  the  sugar  plantations  at  the  southern  end  of 
Lake  Maracaibo,  where  climatic  conditions  are  verjr  bad  and  tropi- 
cal diseases  prevalent.  The  old  system  of  peonage  still  exists  to  some 
extent  in  the  outlying  regions,  though  it  is  illegal. 


EDUCATION. 

Venezuela  possesses  a  well-equipped  Government  department  of 
public  instruction.  Primary  education  is  free  and  compulsory.  It 
is  maintained  by  the  Nation,  State,  or  municipality.  The  latest  rec- 
ords show  that  there  are  1,500  elementary  schools  in  Venezuela,  with 
an  attendance  of  60,000.  The  establishment  of  rural  schools  in  the 
neighborhood  of  factories  has  been  urged  recently  for  the  benefit  of 
the  working  classes.  Migratory  rural  schools  of  this  nature  have 
been  already  introduced  into  I'rujillo  by  Federal  authorities,  and 
industrial  schools  have  been  started  in  Mamo,  El  Encantado,  an^ 
Caracas  by  municipal  and  State  authorities. 

There  are  102  secondary  schools,  58  for  boys  and  38  for  girls,  the 
others  admitting  both  sexes.  These  may  be  grouped  into  federal 
colleges  and  normal  schools,  annexed  to  the  federal  schools  located 
in  Valencia  and  Caracas.  There  are  34  national  schools  of  higher 
education,  and  21  such  schools  subsidized  by  the  Government.  Two 
German  schools  and  one  Spanish  school  are  located  in  Caracas. 

Venezuela  has  six  national  universities — Central  University  of 
Carcacas,  Merida  or  "Los  Andes,"  Valencia,  Maracaibo,  Ciudad  Boli- 
var, and  Barquisimeto.  The  universities  have  faculties  of  political 
science,  medicine,  philosophy,  literature,  and  pharmacy,  each  of 
which  courses  requires  six  years  for  completion  except  pharmacy, 
which  takes  two. 

There  are  also  commercial  schools  in  Caracas,  Maracaibo,  Ciudad 
Bolivar,  Carupano,  and  Puerto  Cabello;  a  school  of  engineers  in 
Caracas,  a  school  of  naval  instruction  at  Puerto  Cabello,  and  the 
Simon  Bolivar  School  of  Political  Science  at  San  Cristobal,  as  well 
as  schools  of  natural  science,  music,  declamation,  modern  languages, 
etc.  An  Academy  of  Languages  and  a  National  Seminary  for  His- 
tory are  in  operation.  Caracas  has  a  Catholic  Seminary  for  Theol- 
ogy and  Canonical  Jurisprudence,  a  Polytechnic  School,  a  National 
Library,  and  a  National  Museum.  An  astronomical  observatory  is 
connected  with  the  School  of  Engineering,  and  a  Pasteur  Institute 
has  been  established. 

During  recent  years  Caracas  has  incorporated  departments  for  en- 
gineering works  and  the  administration  of  budgets,  improved  the 
laboratories  in  physics,  mineralogy,  geology,  botany,  and  zoology, 
enlarged  the  library,  and  improved  the  school  of  medicine.  The 
School  of  Arts  and  Crafts  for  men  at  Caracas  is  destined  to  be  of 
great  utility  and  practical  importance,  having  already  enrolled  501 
students.  Cartographical  work  in  the  preparation  of  maps  is  par- 
ticularly noteworthy.  The  meteorological  stations  in  Merida,  Mara- 
caibo, and  Calabozo  have  also  rendered  signal  service. 

35 


86        VENEZUELA !  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

The  following  table  shows  the  number  of  schools,  according  to 
type,  in  the  years  1909  and  1918: 


Instniction  of  first  grade. 


Federal 

SUte ; 

Municipal.. 
Prlvatft 

Total 


Number  of  schools. 


1900 


1,004 
146 
226 
150 


1,526 


1918 


829 
246 
216 
118 


1,408 


Pupils  enrolled. 


1909 


31,850 
4,723 
7,564 
4,011 


48, 148 


1918 


25,623 
6,736 
7,876 
6,280 


46,515 


The  budget  for  the  fiscal  year  1920-21  was  4,328,181  bolivars 
($835,339),  representing  an  increase  in  expenditure  for  educational 
work.  New  schools  have  been  provided  for  at  the  rate  of  about  40 
per  year,  nearly  all  with  one  teacher  and  for  primary  instruction. 

A  number  of  girls'  and  boys'  schools  are  conducted  by  the  various 
Religious  orders  in  Venezuela,  these  schools  obtaining  about  50  per 
cent  of  the  children  of  school  age,  especially  those  of  the  middle 
class  who  are  able  to  pay  the  tuition  fees  charged.  Most  of  the  re- 
ligious schools  where  higher  grades  are  taught  are  called  "  colegios  " 
and  receive  boarding  students  for  the  school  term.  These  schools  are 
recognized  as  preparatory  schools  for  the  Federal  universities  and 
also  for  the  special  schools  estAolished  by  the  Government,  although 
the  Government  does  not  contribute  to  their  support  as  is  the  case  in 
Colombia. 

Young  Venezuelan  engineers  educated  in  the  universities  of  Cara- 
cas are  in  charge  of  the  highway  construction  work  that  is  being 
carried  out  on  a  large  scale  and  are  fairly  successful  in  meeting  the 
peculiar  topographical  and  climatic  conditions. 


special  Agents  Series  No.  212. 


FIG.  3.— BIRD'S-EYE    VIEW    OF   CARACAS.  LOOKING   SOUTH, 


VIEW    OF    LA   GUAIR 


NATIONAL  FINANCE. 

NATIONAL  TREASURY. 

The  duties  of  the  National  Treasury  include  the  receipt  of  the 
national  revenue,  the  guarding  of  all  funds  pertaining  to  the  Treas- 
ury, the  making  of  payments  authorized  by  the  budget,  the  receipt 
and  custody  of  fiscal  specie  and  its  delivery  to  fiscal  administrators 
(art.  72).  All  officers  intrusted  with  the  collection  or  investment 
of  national  funds  form  a  part  of  the  Treasury  Service  (art.  73), 
with  a  central  office  in  Caracas  (art.  74). 

In  order  to  receive  and  make  payments  on  accounts  for  the  Treas- 
ury, there  has  been  created  an  Auxiliary  Bank  of  the  Treasury, 
necessarily  nationlEil,  responsible  and  with  sufficient  resources  to 
g:uarantee  the  Government  a  sufficient  credit  and  to  sustain  the  neces- 
sities of  the  Treasury.  Orders  for  payment  are  drawn  directly  by 
the  Minister  of  Finance  (art.  80),  and  the  bank  is  subject  to  the 
jurisdiction  of  the  examining  board  and  Federal  tribunals  (art.  82). 

The  General  Accountant's  Office  functions  in  Caracas  with  the 
object  of  centralizing  all  accounts.  There  are  two  divisions,  tlie 
board  of.  centralization  and  the  board  of  examination,  each  presided 
over  by  a  responsible  auditor,  subject  to  the  Minister  of  Finance 
(arts.  83-86). 

Double-entry  accounts  are  maintained  by  all  offices,  each  being 
obliged  to  keep  a  journal,  a  ledger  and  inventory,  etc.,  in  which  every 
operation  either  actively  or  passively  affecting  the  Treasury  must  be 
registered  (art.  188).  All  accounting  offices  must  send  to  the  board 
of  centralization,  within  the  first  eight  »days  of  each  month,  copies 
of  the  books  showing  the  values  on  the  last  day  and  all  facts  necessary 
for  centralization  (art.  198). 

VENEZUELA'S  POSITION  AS  STATED  BY  MINISTER  OF  FINANCE. 

Following  is  a  translation  of  excerpts  from  the  introduction  to  the 
annual  report  of  the  Venezuelan  Minister  of  Finance  for  the  calendar 
year  1920,  submitted  to  the  National  Congress  on  April  29,  1921 
(1  bolivar=$0.193) : 

The  work  of  the  Treasury  Department  for  the  year  1920  gives  further  proofs 
of  the  labor  to  fulfill  the  administrative  program  by  which  Gren.  Juan  Vicente 
Gomez  has  further  advanced  the  Republic.  On  one  side,  the  prosperous  situ- 
ation of  the  public  Treasury,  and,  on  the  other,  the  organization  of  fiscal 
branches — ^in  its  legislative  aspects,  in  its  internal  regulations,  and  in  its  prac- 
tical functioning — form  the  two  principal  subjects  treated  of  in  this  report,  of 
which  the  present  summary  gives  the  most  important  features. 

The  just  appreciation  of  the  economic  conditions  of  the  country  with  respect 
to  legislation  on  duties  and  taxes;  the  most  convenient  means  to  increase  the 
public  fortune;  and  the  most  spontaneous  collaboration  of  the  citizens  in  ful- 
fiUing  their  financial  obligations — these  are  not  the  only  elements  that  regulate 
the  stream  of  tax  money  and  direct  it  into  such  channels  as  will  fill  the  coffers 
of  the  Treasury;  it  is  the  methods  of  collection,  learnedly  and  faithfully  ap- 
plied, that  will  make  secure  the  amount  of  the  internal  revenue.  Of  all  these 
methods,  the  most  efficient  has  been  definitely  established  in  uur  Treasury, 
beiQg  that  of  the  direct  and  immediate  delivery  by  the  taxpayer  to  the  Treasury 

37 


38        VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

of  the  sum  due  for  taxes  or  public  services,  which  sum  the  administrator  of 

national  revenue  liquidates  according  to  the  provisions  of  the  law  of  each  tax. 

This  method  was.  applied  during  the  year  to  all  taxes,  with  the  exceptiuii  of 

that  of  the  national  telegraphs,  which  is  still  collected  in  the  old  way  through 

the  same  administrative  office,  with  its  own  account  separate,  to  be  delivered  to 

the  National  Treasury;  there  was  also  excepted  from  the  modem  system  of 

liquidation  the  consular  tax  up  to  the  middle  of  1920,  since  it  was  the  consular 

service  law  of  the  26th  of  June,  1920,  that  included  it  in  the  new  legal  regime  of 

national  revenues.    All  other  taxes  during  the  year  have  been  regulated  by  the 

present  system  of  prior  liquidation  or  by  that  of  revenue  stamps,  which  is  used 

by  those  branches  whose  functions  especialy  require  this  method.    In  this  way 

there  has  been  turned  in,  as  the  income  from  the  national  taxes  in  the  year 

1920,  the  sum  of  104,887,330  bolivars,  a  sum  never  before  reached  in  pur  financial 

annals,  even  when  it  is  compared  with  the  income  of  the  10  years  previous, 

which,  despite  the  economic  confusion  occasioned  by  the  European  war,  ^vere 

the  most  pleasing  for  our  finances.    The  revenue  movement  is  shown  below, 

deducting  the  sums  of  4,821,353,  .^,633,687, 100,000,  and  5,300,000  bolivai-s,  which, 

in  the  years  1911, 1912, 1915,  and  1919,  respectively,  corresponded  to  the  amounts 

incorporated  with  the  income  as  the  result  of  the  accounts  of  the  national  mint 

(entirely  accidental  receipts,  which  can  not  be  included  in  the  regular  product 

of  the  national  revenues.)  : 

Bolivai'8. 

1910 52, 845, 988 

1911 65, 100,  679 

1912 73, 180, 001 

1913 58, 421,  713 

1914 57, 376,  243 

1915 56,  039, 546 

1916 71, 050,  728 

1917 63,  763,  010 

1918 50, 171,  534 

1919 73, 617,  728 

1920 104, 887, 330 

It  is  seen  that  the  annual  average  in  the  years  between  January,  1910,  and 
December,  1919,  is  a  little  over  62,000,000  bolivars ;  thus  the  annual  average  has 
been  exceeded  by  more  than  42,000,000,  and  the  1919  return  by  more  than 
81,000,000.  In  the  year  1920  the  internal-revenue  tax  amounted  to  38,349,053 
bolivars,  which  is  2,000,000  lefes  than  the  sum  of  40,396,195  bolivars,  the 
product  of  the  tax  in  1920 — a  palpable  demonstration  of  the  fact  that  the 
steady  increase  obtained  by  the  administration  of  this  tax  is  on  a  firm  footing, 
and  that  it  promises  to  be  for  the  Treasury  a  secure  and  sufficient  fund  to 
offset  the  sudden  fluctuations  of  the  income  from  customs  duties.  Following 
is  the  comparative  table  of  these  incomes  for  the  last  10  years,  with  th5 
above-mentioned  mint  accounts  omitted: 


Years. 

Consular  and 
customs  fees. 

Internal 
revenue. 

Years. 

Consular  and 
customs  foes. 

Internal 
revenue. 

1911 , 

Bolivars. 

50,392,962 

56,601,680 

44,230,823 

38,366,193 

34,900,419 

Bolivars. 
14,707,718 
16,578,322 
14,190,891 
19,010,049 
21,139,128 

1916 

Bolivars. 

44,486,946 

35,274,902 

20,736>003 

35,268,675 

64,491,135 

Bolivars. 
26,563,782 
28,488,108 
29,435,531 
38,349,053 
40.396.195 

1912 

1917 

1913 

1918 

1914 - 

1919 

1915 

1920 

CRISIS   IN    YEAR    1920. 

The  sum  of  64,491,135  bolivars,  produced  by  the  customs  fees  in  1920,  is  an 
increase  as  unexpected  as  it  was  extraordinary  in  a  year  of  universal  economic 
crisis.  From  that  crisis  Venezuela  was  not  excepted,  but  by  uniting  the  forces 
of  the  people  and  those  of  the  Government  we  resisted  it,  and  thus  during  such 
a  serious  period  we  maintained  our  vigor,  the  same  vigor  by  which  we  obtained 
our  prosperity  and  eluded  danger;  and  when  that  crisis  still  threatens  to  in- 
TOlve  us  in  the  general  upheaval,  the  merchant  redotibles  his  efforts  to  sustain 
his  credit  and  the  .Government  evolves,  continuously  and  wholeheartedly,. ad- 
ministrative plans  to  stimulate  and  multiply  all  national  activities. 


H 


NATIONAL,  FINANOBS. 


89 


This  crlcds  which  hangs  over  us  and  the  civilized  world  should  he  noted  in  our 
economic  history  as  an  act  of  Providence  for  the  industry  and  commerce  of  the 
Republic;  its  origin,  its  development,  and  the  situation  which  it  created,  care- 
fully considered,  will  demonstrate  that  such  influence  is  important  in  the  evo- 
lution of  riches  and  national  revenues.  Our  foreign  commerce  is  not  uni- 
form; that  is,  we  do  not  export  to  one  country  in  the  same  or  even  approxi- 
mately the  same  amount  in  which  we  import  its  manufactures — from  which  it 
follows  that  in  the  annual  movement  of  commerce  we  are  subject  to  opposing 
influences  whose  effect  does  not  always  equalize  or  turn  in  our  favor  the  balance 
of  commerce.  In  1918  the  customs  duties,  whose  average  annually  had  been 
43,500,000  bolivars,  declined  to  20,736,003  bolivars  because  European  commerce 
sent  no  merchandise  to  our  ports,  the  United  States  suspended  also  the  sending 
of  many  of  the  articles  that  it  was  accustomed  to  export  to  us,  and,  on  the  other 
hand,  the  price  of  our  export  products  was  lower  and  the  demand  small.  In 
1919  the  victory  of  the  Allies  gave  the  world  an  unforeseen  prosperity,  produced 
mostly  by  the  hope  that  with  the  coming  of  peace  there  would  also  come  a 
recovery  from  the  losses  occasioned  by  war.  Europe  and  the  United  States 
sent  us  then  a  huge  quantity  of  merchandise.  The  customs  duties  reached  the 
sum  of  35,268,675  bolivars,  and  the  price  of  our  export  products  rose  in  a  gratify- 
ing manner,  and  nearly  the  whole  annual  production  could  be  disposed  of.  The 
internal  revenue  reached  38,349,053  bolivars — the  total  public  revenue  reaching 
the  sum  of  73,617,728  bolivars.  In  1920  the  European  nations  had  already  com- 
pleted their  financial  program  with  the  object  of  replacing  the  losses  of  the 
war,  which  program  consisted  in  buying  only  the  absolute  necessities  and  in 
selling  the  largest  possible  amount  of  merchandise.  The  prices  of  coffee,  cacao, 
hides,  and  other  of  our  products  fell  rapidly,  and  the  demand  was  almost  nil. 
At  the  same  time  the  productive  centers  of  Europe  and  the  United  States  filled- 
all  the  Venezuelan  orders  that  they  had  refused  during  the  war  and  those  that 
had  been  given  when  the  armistice  was  signed.  Venezuelan  commerce  then  had 
to  prepare  warehouses  for  the  large  quantity  of  unexpected  merchandise,  and 
to  raise  funds  to  pay  customs  duties  and  drafts  for  the  foreign  creditors.  The 
merchandise  was  not  left  in  the  warehouses  nor  the  foreign  cretlitors  left  un- 
satisfied. The  mercantile  situation  of  that  year  was  dominated  by  the  United 
States,  for  from  that  country  came  half  of  our  import,  but  the  United  States 
bought  from  us  the  lesser  part  of  our  export,  thus  causing  the  huge  rise  of  the 
dollar  and  the  consequent  depreciation  of  other  moneys,  since  the  United  States, 
besides  being  the  creditor  of  Europe  to-day,  as  it  is  in  the  case  of*  Venezuelan 
commerce,  has  come  to  be  also  the  liquidator  of  our  banking  business,  and 
perhaps  of  that  of  all  Spanish  America.  The  following  data  concerning  the 
decline  of  exportation  in  1920,  the  increase  in  importation,  the  commerce  with 
the  United  States  and  other  nations,  the  variation  in  the  price  of  our  national 
products,  and  the  increasing  value  of  the  dollar  will  show  at  a  glance  the  real 
causes  of  our  mercantile  crisis: 

FOREIGN  TRADE. 


Years. 

Imports. 

Exports. 

Years. 

Imports. 

Exi)ort8. 

1919 

Bolivars. 
177,173,811 

Bolivars. 
258,712,028 

1920: 

From  (or  to)  other 
nations 

Bolivars. 
156,438,735 

Bolivars, 

1920: 

From  (or  to)  the 
United  States.. 

152,313,229 

80,638,461 

87,400,393 

Total  for  1920... 

308,751,964 

168,038,854 

PRICES  PER  100  KILOS  OP  EXPORT  PRODUCTS. 


Montlis. 

Coffee. 

Cacao. 

Hides. 

Balata. 

1919: 

JftHtiftry .   _     . 

Bolivars. 
180 
200 
.210 
210 
230 
280 
300 
300 

Bolivars. 
140 
160 
180 
180 
220 
260 
280 
280 

Bolivars. 
260 
300 
310 
320 
350 
380 
380 
450 

Bolivars. 
583 

Febmarv 

626 

March 

635 

April..-. 

652 

May 

670 

JVtlP^ -.r,                  . -.-.--'       -- 

780 

July 

765 

August 

7» 

I 

I 


■VENEZUELA :   A  COMMBBCIAL  AND  INDUSTRIAX.  HANDBOOK. 


Moalha, 

c--. 

c^. 

Hld«8. 

Bolata. 

mt— Contluaed. 

i 

230 

S 

110 

Bolicar: 

ns 

110 

130 

120 
ZOO 

i 

Bollnri. 

a 
s 

3B0 

1 
a 

BoUtart. 

MM; 

The  sale  of  Venezuelan  products  in  forelgii  countries  being  paralyzed  and 
Tenezuelan  commerce  being  Hooded  with  unwanted  goods,  it  seemed  as  If  It 
might  be  necessary  to  abandon  such  merchandlee  ]n  the  customs  warehouses, 
return  it  to  the  sender,  or,  in  the  last  resort,  to  sell  It  to  realize  customs  duties, 
because  it  was  logical  that  with  such  a  condition  would  come  general  poverty 
,  and  great  trouble;  but  it  did  not  turn  out  thus,  the  progressive  impulse  given 
to  the  country  by  the  Chief  ot  the  National  Rehabilitation  continued,  the 
national  industries  flourished  and  gave  employment  to  thousands  of  workmen, 
public  works  were  extended  and  carried  out  for  the  welfare  of  the  country, 
the  Government  increased  its  expenses  up  to  78,000,000  bolivars  {that  ia  to  say, 
14,000,000  more  than  the  previous  year),  monetary  circulation  was  quiciiened,  the 
activity  of  ail  branches  of  commerce  vras  redoubled,  merchants  and  business 
men  united  their  forces  In  atrouK  solidarity,  and  in  this  way  the  serious 
effects  of  the  crisis  were  resisted. 

THE  INTEBNAL  BCVENTJB. 

The  rapid  fluctuations  of  the  customs  duties,  which  depend  more  on  foreign 
commerce  than  on  Venezuelan,  brought  about  the  decision,  starting  In  1914,  to 
make  the  internal  revenue  tiie  largest  and  most  certain  source  of  income  of 
the  Treasury.  This  end  has  to  a  large  extent  been  attained,  since  from  1915 
the  increase  of  the  principal  sources  of  the  internal  revenue  has  been  constant, 
as  will  be  seen  from  the  following  table  for  the  past  10  years: 


Years. 

CluarettM. 

Stamps. 

Liquois. 

Sail  deposits. 

no 

134 

■» 
00 

SB 

i 

lbs 
isa 

OS 

M 

Bo, 

J 
S 

...r.. 

i 

6, 

It  can  be  seen  tliat  since  1015  and  1916  the  position  of  the  internal  r 
has  completely  changed,  and  that  since  that  time  the  increase  has  been  constant, 
reaching  the  total  of  40,396,195  bolivars  in  the  crisis  year  of  1920— two  millions 
larger  tban  for  the  year  1919.  This  ia  due  to  the  legal  regime  and  to  the 
Internal  organization  ot  the  service  of  each  branch  of  the  revenue.  The  laws 
and  regulations  with  rMpect  to  stamps,  cigarettes,  liquors,  salt  deposits, 
stamped  paper,  and  Inheritance  taxes  were  not  made  offhand,  but  as  the  result 
of  long,  patient  study  and  observation  of  the  different  peculiarities  of  each 


NATIONAL  TINANCB.  41 

soaree  of  rerenne,  ftttar  havliig  ellmfaiBtecl  the  "  TentAag,"  m  fatal  system  wblch 
fron)  the  time  of  tbe  Colony  up  to  the  present  reform  consumed  In  longer  or 
Mliorter  periods  ttie  greater  part  of  our  revenue  retama.  As  regards  the  or- 
gftnizatioD  of  tbe  administrative  service  for  each  source  of  revenue,  there  was 
minute  and  continuous  labor,  frotn  the  placing  of  tbe  employee  in  the  branch 
where  he  could  render  the  best  service  to  the  elaboration  of  the  detailed  In- 
struction to  be  followed  In  the  administration  of  each  branch  of  the  revenue 
service.  In  this  ivay  the  Internal  revenue  has  increased  each  day;  its  total 
product,  which  In  1911  was  about  14,750,000  bolivars,  exceeded  40,250,000  in 
1820;  tbe  Income  from  its  principal  branches,  whltdi  tn  1911  was  a  little  less 
than  12,000,000  bolivars,  exceeded  32,000,000  in  1920.  Tliere  follows  the  com- 
parative table  of  all  the  Internal  revenue  In  the  two  years  mentioned : 


Hems. 

mi 

■«. 

IWnu. 

Iflll 

1890 

'\3) 

'      1 
S 

BoUmr,. 

305; noo 
i,a5e;3Si 

Bolivar,, 

llsOSiSM 

U,T07,718 

This  Increase  of  more  than  25,000,000  bolivars  in  10  years  shows  th&t  iu 
fiscal  niatters  we  have  progressed  more  during  that  time  than  In  the  Hrst  him- 
dred  years  of  the  Republic. 


uqxnDATioN  or  i 

The  zeal  with  which  the  Ministry  of  Hacienda  has  attendee!  tbe  services  of 
the  public  debt  will  be  an  honor  to  the  government  of  tbe  rehabilitation.  It 
has  not  only  paid  regularly  tbe  Interest  on  the  various  titles,  but  also  has 
canceled  bonds  of  the  debt  and  paid  those  wlilch  in  a  long  succession  of  years 
constituted  a  large  an'i  onerous  burden  to  the  Be^Uibllc.  During  the  last  10 
years  the  current  debts  have  decreased  to  the  extent  of  61,303,547  bolivars,  as 
Is  shown  in  the  following  comparison  between  the  current  bonds  of  January  1, 
1911,  and  those  in  circulation  on  December  31,  1920: 

[1  bolirar— t0.19.<t.1 


Items. 

,^,.m.. 

Dm.  31, 1920 

BoUvata. 
2  071480 

io;70!;m8 

m,g;i;g7s 

^^'h 

192,800, 80» 

In  this  cancellation  tbe  following  amounts  are  not  included — 9,106,470  bolivars 
appropriated  during  that  pwiod  to  pay  the  protocols  of  Washington ;  4,712,000 
bolivars  to  cover  the  accruemmt  on  the  rallwav  from  Puerto  Cebello  to 
Valencia;  the  sum  ot  3,000,000  bolivars,  with  which  the  French  claims  were 
settled;  the  amounts  of  1,925.474  bolivars  and  1,542,065  bolivars  with  which 
the  American  Critchfield  and  Manao  claims  were  paid,  and  other  administra- 
tive accruements. 

Besides  maintaining  honestly  the  nation's  credit,  the  present  regime  ad- 
ministers the  public  debt,  following  strictly  the  provisions  of  tbe  law  of  June 
11,  1915,  that  created  this  service  tn  accordance  with  the  modem  financial 
principles  established  to-day  in  the  most  advanced  nations,  by  which  all  mat- 
ters relating  to  the  pecuniary  liabilities  of  the  nation  can  be  solved  publicly 


42        -TBNEZDEIA :  A  COUMEBOUL  Aim  UTDVSIBUl^  HAin>BOOK. 

BDd  In  accordance  with  universal  right.  One  of  the  most  Important  iworlsions 
of  the  law  of  public  credit  Is  that  which  refers  to  the  cancellation  of  coupons 
and  allowance  of  Intereet,  expreesed  as  follows  by  articles  20  and  32 : 

"  Six  months  after  the  beginning  of  the  renewal  of  tbe  National  Conaolldated 
Internal  Debt  at  8  per  cent  per  annnm,  the  holders  who  present  bills  for 
exchange  shall  not  receive  interest  coupons  until  after  the  oiontb  following  the 
one  in  which  the  exchange  takes  place."  "  The  Interest  on  the  debt  Is  outlawed 
Id  five  rears,  reckoned  trwa  the  date  when  It  becomes  payable." 

NATIONAL  BUDGET  FOR  1920-21. 

Following  is  a  statement  of  the  Venezuelan  budget  for  the  12 
months  from  July  1, 1920,  to  June  30, 1921: 

BSSUUB  or  EXPENDITURES. 


Ilemi. 

Bollrara. 

DoUara. 

It»m>. 

Bolivan. 

Dollars. 

sjsssrrsBg 

i2,i«e,K» 

l,ra7,3H 

ie,ssa,80s 

B.SOO.IW 

1,348,110 

371,950 

13,350,733 

I,1U,6B3 

Baputmeat     of     PabllD 

6,318,420 
1,328,181 

I.S05,SS. 

Cepartnunt  ol  BKleuda 

RwUflOkUauii  oltha  budget 

DifSSiiTOiid 

S7,eflO,171 

11, 188,313 

n&ii'""'". 

B8,S38.«0 

11,»7,M0 

ID  ba  expended  In  tbe  aerrice  of  the  public  debt,  boUi  torelgn  debt  and  Internal  debt. 
ESTIM-^TK  OF  POSSIBLE  BSVBNUB. 


Itemi. 

Bolirara. 

DoUais. 

Items. 

B^Mvais. 

Dollara. 

ImpSt  dutie>  by  pwral 

14,000,000 

700,000 
4,410,000 

1,«37,S00 
10,000 

looooo 

Z:Z 

110,000 

i,a.s 

'«:oa) 

!:S:a 

320,000 

380,000 

3,703,000 

136,100 
851,130 

3H,e37 

1,030 
40,330 

11 

IS 

ii 

1,417,500 
73,340 

N 
T 

T 

i 

It 

LtiSiesr™::.-:::: 

is 
11 

420,  cm 

■Ssss 

1 

300,010 

70  000 

100,000 

i.Z 

30,700 

103,390 
21,230 

National  sunai  o(  UJ  per 

24;  135 

1«,300 

"floods In  transit"  chargB. 
BtangaongoodtlntraDalt. 

laSSiHbiVi.^-.::: 

Is;  MO 

11,S«S 

StSWdi.;::: 

3>» 

KffiS."'.'-:'-:::: 

1,100 

Eiamlnation  lax 

Agiicultuial     eipeclmeDt 

TobMBoand  clgaretl*  tax. 

Order  olthe  UberatDi 

SO, 612,000 

AGRICULTURE. 

ZONES  OP  PRODUCTION. 

The  agricultural  zones  of  Venezuela  cover,  in  round  numbers, 
300,000  square  kilometers  (1  square  kilometer=:0.886  square  mile) 
extending  from  the  margin  of  the  delta  of  the  Orinoco  to  the  east, 
to  the  boundary  with  Colombia  on  the  west,  and  from  the  Caribbean 
Sea  on  the  north  to  the  Apure  and  Orinoco  Rivers  to  the  south. 
South  of  these  two  rivers  are  great  areas  of  very  productive  land, 
which  is  as  yet  inaccessible  for  commercial  purposes  and  sparsely 
populated. 

Climate  and  soil  are  matters  of  elevation  and  topography  in  South 
America.  In  Venezuela  every  type  and  kind  exists,  from  the  semi- 
arid  lands  of  the  Segovia  Highlands  in  the  region  of  Barquisimeto  to 
the  high  elevations  of  the  Venezuelan  Andes,  where  wheat  and  po- 
tatoes are  grown,  and  to  the  tropical  conditions  of  the  lower  Orinoco 
and  parts  of  the  Caribbean  coast.  In  the  lower  basin  of  Lake  Mara- 
caibo  sugar  cane  grows  in  profusion,  while  just  back  of  this  low 
tropical  jcountry,  to  the  south  and  east,  is  found  the  coffee-producing 
region  of  the  Andes  (Trujillo  and  Merida)  at  elevations  of  3,000  to 
6,000  feet,  with  wheat  and  Temperate-Zone  products  on  the  higher 
levels. 

The  district  that  has  received  the  most  attention  in  Venezuela  and 
is  the  most  developed  agriculturally  is  the  basin  of  Lake  Valencia, 
in  the  State  of  Carabobo,  lying  to  the  west  of  Caracas  and  inland 
from  Puerto  Cabello.  This  region  produces  all  the  raw  cotton  needed 
for  the  domestic  mills  of  the  country  and  sufficient  corn  and  beans 
to  allow  quantities  to  be  exported.  The  high  prices  obtained  for 
products  during  and  following  the  war  have  greatly  stimulated  agri- 
culture all  over  the  country,  especially  in  this,  rich  region,  where 
modem  methods  are  being  introduced  and  native  energy  and  capital 
attracted.  The  prevailing  difficulty  is  the  lack  of  labor,  which  holds 
this  region  back  in  spite  of  its  proximity  to  two  domestic  markets 
and  to  the  seaport  of  l^uerto  Cabello  for  export,  railway  transporta- 
tion being  already  provided  by  the  Puerto  Cabello- Valencia  Bail- 
way,  and  a  system  of  fairly  good  cart  roads. 

The  great  forest  and  plain  areas  of  the  eastern  portion  of  the  Re- 
public around  the  commercial  center  of  Ciudad  Bolivar  are  unde- 
veloped agriculturally;  and,  prior  to  the  war,  they  even  imported 
foodstuffs  for  the  support  of  the  workers  in  rubber,  balata,  chicle,  and 
other  forest  products.  During  the  war  the  Venezuelan  Government 
carried  on  a  campaign  of  agricultural  production,  with  the  result 
that  the  Ciudad  Bolivar  region  is  now  self-sustaining  in  the  matter  of 
foodstuffs. 

Except  the  higher  levels  of  the  Western  Andes  of  Venezuela  in 
the  regions  of  Trujillo  and  Merida,  and  small  coffee  areas  among  the 
hills  of  the  northern  Coast  Range,  the  agricultural  districts  of  Vene- 
zuela may  be  classed  generally  as  tropical.    Climatic  conditions  are 

43 


44        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

somewhat  better  in  the  Lake  Valencia  Basin  than  in  the  Maracaibo 
sugar-cane  districts  along  the  southern  shores  of  Lake  Maracaibo. 

LACK  OF  POPULATION  IN  AGRICULTURAL  AREAS. 

The  agricultural  areas  easily  developed  in  Venezuela  are  un- 
doubtedly sufficient  to  supply  tne  needs  of  a  population  many  times 
greater  than  the  present.  About  20  per  cent  of  the  population  is 
engaged  in  agricultural  work.  The  numbers  are  about  evenly  di- 
vided between  the  workers  in  coffee  and  cacao  plantations  and  those 
engaged  in  producing  domestic  foodstuffs  and  cptton.  An  increase  in 
population  is  necessary  before  any  great  increase  in  production  can 
be  hoped  for ;  but  modern  methods  and  machinenr,  after  a  period  of 
education  and  experience,  will  undoubtedly  give  Venezuela  an  excess 
sufficient  to  allow  exports  of  corn,  beans,  lard,  etc.,  to  the  Canal  Zone, 
Cuba,  and  other  islands  of  the  West  Indies,  and  perhaps  to  the  Unitea 
States,  in  the  event  of  favorable  prices  such  as  those  obtained  during 
the  war. 

A  factor  in  the  prevailing  scarcity  of  labor  in  the  agricultural  dis- 
tricts is  the  gradual  congregation  of  the  people  in  the  larger  towns 
and  cities,  to  which  they  are  attracted  by  better  living  conditions  and 
diversions  not  found  in  the  country  districts.  There  is  a  surplus  of 
cheap  labor  for  the  factories  of  the  cities,  but  a  lack  of  men  for  the 
farms  and  plantations. 

Agriculture  in  Venezuela  received  a  setback  in  1914  on  account  of 
the  lack  of  ocean  tonnage  for  the  exportation  of  coffee,  cacao,  and 
other  products.  The  production  of  sugar,  corn,  beans,  and  cotton  has 
been  increased  to  a  very  considerable  extent  since  that  year. 

GOVERNMENTAL  EFFORTS  FOR  IMPROVEMENT  OF  AGRICULTURE, 

Agricultural  education  has  received  considerable  attention  from  the 
Government,  the  need  for  the  adoption  of  machinery  and  better  meth- 
ods being  manifest.  On  November  3,  1917,  the  National  Government 
authorized  the  establishment  of  an  agricultural  experim^t  station ;  a 
site  was  selected  near  Caracas  and  the  services  of  an  American  ex- 
pert from  the  United  States  Department  of  Agriculture  obtained. 
The  management  of  this  station  is  under  the  Ministry  of  Fomento 
(Development),  and  about  $200,000  annually  is  being  invested  in  this 
work  by  the  Government.  Since  1917  another  experimental  station 
has  been  established  near  Maracay.  where  conditions  are  similar  to 
those  in  the  Valencia  agricultural  district. 

A  study  has  been  made  of  the  indigenous  products  of  the  country, 
and  considerable  work  has  been  done  on  a  survey  of  the  many  forest 
products.  Among  notable  discoveries  is  that  of  a  rubber-proiiucing 
plant  heretofore  unexploited  in  Venezuela.  The  main  purpose  of 
these  station^  is  to  determine  the  agricultural  methods  and  products 
best  adapted  to  the  country.  The  work  also  includes  experiments  in 
forestry  and  conservation  of  natural  resources.  Among  the  activities 
are.  the  analysis  of  soils,  distribution  of  seeds,  publication  of  educa- 
tional pamphlets,  etc  The  station  near  Maracay  also  maintains  a 
department  for  veterinary  research  and  study  of  animal  diseases 
peculiar  to  the  country. 


AGRIOULTURE.  46 

USE  OP  AGRICULTURAL  MACHINERY. 

In  the  Valley  of  Caracas  modern  methods  are  employed  in  intensive 
cultivation.  American  plows,  harrows,  disks,  etc.,  are  in  daily  use, 
but  the  available  area  is  limited  to  the  narrow  valley,  hardly  large 
enough  to  supply  the  needs  of  the  capital  of  90,000  people.  Work 
animals  are  oxen  and  the  native  ^^  Spanish  "  mule,  vigorqus  but  small 
and  too  light  for  plow  work  in  heavy  soils. 

INT90DUCTI0X  OF  TRAtTOBS. 

The  Valencia  district  possesses  large  areas  of  level  land  and  many- 
well-developed  "haciendas"  (large  farms)  devoted  to  the  cultivation 
of  cotton,  corn,  and  beans.  Light  plows  have  been  used  for  years,  but 
it  is  only  since  the  outbreak  of  the  war  that  modem  machinery  has 
had  the  attention  consistent  with  the  demands  for  production.  En- 
couraged by  high  prices,  the  owners  of  rich  tracts  of  land  have  pur- 
chased equipment  liberally  and  are  experimenting  with  machinery 
heretofore  unknown  to  the  district  and  country.  Nearly  all  the 
American  gasoline  tractors  are  represented  by  agents  in  Caracas  and 
Valencia,  and  forty-odd  American  tractors  were  sold  in  Caracas  dur- 
ing the  first  half  of  1920.  The  success  of  the  American  automobile 
in  Venezuela  and  the  increasing  use  of  the  motor  truck  have  inspired 
general  confidence  in  the  light  American  farm  tractor  also. 

The  main  difficulty  relative  to  the  introduction  and  use  of  ma- 
chinery in  Venezuela  is  found  in  the  people's  ignorance  of  ma- 
chinery, necessitating  a  slow  process  of  eaucation  on  the  land  itself ; 
but  landowners  engaged  in  developing  their  properties  are  forced  to 
import  machinery  and  all  sorts  of  labor-savinff  equipment  on  account 
of  the  prevailing  scarcity  of  labor  on  the  land. 

This  movement  is  seen  in  the  recent  sales  of  American  tractors.  Up 
to  the  spring  of  1919  no  tractors  were  in  use  except  a  few  caterpillar- 
type  machines,  which  were  employed  for  transport  work  by  the  oil 
companies  in  the  Maracaibo  district.  Two  or  three  farm  tractors 
had  previously  been  imported  for  agricultural  work,  but  the  ma- 
chines were  never  actually  used,  probably  because  there  was  no  agent 
to  give  service  in  the  way  of  demonstration  and  repairs,  etc.  In 
March,  1919,  the  first  American  tractors  were  imported,  and  to  date 
(August,  1920)  50  machines  of  this  type  are  in  use  in  Venezuela  as 
follows:  Federal  District,  Miranda,  Aragua,  Carabobo,  Yaracuy,  and 
Lara,  43 ;  San  Fernando  de  Apure,  1 ;  Barcelona,  1 ;  Maracaibo  Lake 
District,  6.  The  only  other  American  tractor  in  use  for  farming  is 
one  caterpillar-type  machine  in  Cagua ;  two  more  of  these  machmes 
have  been  ordered  and  are  in  transit.  A  representative  of  another 
tractor  is  now  in  Caracas  with  a  machine  giving  practical  field  dem- 
onstrations near  the  city. 

Foreign  tractors  are  represented  by  the  Fiat  of  Italy,  the  agent  stat- 
ing that  several  machines  have  been  shipped  to  Venezuela  and  that 
one  has  been  sold. 

Most  of  these  tractors  are  beine  used  in  sugar-cane  cultivation, 
with  both  disk  and  mold-board  plows.  They  also  haul  a  28-inch 
disk  harrow. 

Gasoline  costs  70  to  80  cents  per  gallon  in  the  Caracas  and  Valencia 
districts,  coming  from  the  domestic  refinery  of  the  Caribbean  Petro- 


46        VENEZUELA :  A  COMMBBOIAL  AND  INDUSTRIAL  HANDBOOK. 

leum  Co.,  located' at  San  Lorenzo  on  Lake  Maracaibo;  and  tractors 
can  not  compete  with  cheap  native  labor  when  gas  costs  over  30 
cents  per  gallon.  The  reasons  given  for  the  high  price  of  gasoline 
are  the  lack  of  transportation  facilities  suitable  for  petroleum  prod- 
ucts  and  the  small  capacity  of  the  refinery. 

DUTY  ON  AGRICULTURAL  EQUIPMENT. 

The  duty  on  tractors  and  some  classes  of  agricultural  machinery 
and  implements  is  0.05  bolivar  ($0.00965)  per  kilo  of  gross  weight. 
The  import  duty  on  a  small  tractor  comes  to  about  $12. 
.    Agricultural  implements,  machinery,  and  materials  coming  under 
the  Tree  list  of  the  Venezuelan  tariff  are  as  follows: 

AU  chemicals,  etc.,  used  for  disinfection,  extermination  of  insects  or  harm- 
ful animals  such  as  rats,  rodents^  etc.^  and  machinery  or  apparatus  for  their 
application. 

Barbed  wire  for  fencing;  mesh  wire  for  fencing,  the  mesh  measuring  not 
less  than  3  centimeters  square,  and  other  fencing  wires;  staples  of  a  length 
not  exceeding  2i  centimeters  and  of  3  miUimeters  caliber. 

Rice  classifiers  and  polishers,  etc. 

Serums,  etc.,  for  inoculation  of  live  stock. 

Machetes,  with  horn  handles,  for  agricultural  use. 

Windmills  and  well-drilling  machinery. 

Live  plants,  seeds,  and  bulbs /or  agriculture. 

Bridges  and  their  accessories  when  used  for  agricultural  transport. 

AU  repair  and  replacement  parts  for  agricultural  machinery. 

Animal,  vegetable,  and  chemical  fertilizers  of  all  kinds  used  for  agricultural 
purposes. 

Cotton  seed. 

The  following  machinery  and  utensils  for  agriculture:  Stump  puUers,  plows 
and  gang-plows,  cultivators,  classifiers,  washers,  decorticating  machines,  pol- 
ishers, rakes,  harrows,  driers,  separators  and  thrashers,  hoes,  picks,  shovels, 
machetes  with  or  without  wooden  handles,  :ixes,  pruning  tools  of  all  kinds, 
seeding  machinery,  coconut  cleaners,  defiberators,  corn  shelters,  etc.;  cotton 
gins  and  cleaners,  fertilizer  distributors,  manure  forks,  automatic  pulverizers, 
baling  presses,  oilseed  presses,  cacao  driers  and  other  cacao  machinery,  har- 
vesters, etc. 

STATISTICS  OF  IMPOSTS. 

The  imports  into  Venezuela  of  agricultural  implements  and  barbed 
wire  during  1917, 1918,  and  1919  were  as  follows : 


Articles  and  countries. 


Agricultural  implements 

United  States 

United  Kingdom . . . . 

Spain 

Wire,  barbed 

united  States 


1917 


$41,058 

32,612 

6,130 

2,316 

66,010 

63,523 


1918 


1132,437 
73,800 
68,124 


31,855 
25,623 


1919 


1279,478 
148,322 
116,631 
3,489 
247,637 
243,509 


With  the  stimulus  to  agriculture  given  by  the  prosperous  conditions 
obtaining  during  the  war  and  the  year  following  the  armistice,  buy- 
ing of  agricultural  implements  and  machinery  has  been  increased. 

The  imports  of  agricultural  implements  and  machinery  shown 
above  for  1919  were  divided  as  follows  (values  in  Venezuelan  cur- 
rency) : 


AGRICUIiTURE. 


47 


[lboUT»r>^80a93.] 


Customhouses  and 
countriffi  of  origin. 

Bolivars. 

Customhouses  and 
countries  of  origin. 

Bolivars. 

Customhouses  and 
countries  of  origin. 

Bolivars. 

LaOuaira: 
France 

280 

9,284 

244,658 

413,277 

Puerto  Cabello— Con. 
United  States 

Total 

144,344 

Puerto  Sucre: 
Trinidad 

9,090 

Spain 

United  States 

Total 

1,144 

tJnlted  Kingdom. . . 
United  States 

378,615 

Ciudad  Bolivar: 
Netherlands 

10,234 

1,300 
17,069 
43,557 
89,966 

La  Vela: 
United  Kingdom. . . 

Cristobal  Colon: 
Trinidad 

Total 

667,499 

Trinidad  . .  • 

10,032 

Maracaibo: 
Netherlands 

2,115 

8,455 

54,332 

108,036 

United  Kingdom.... 
United  States 

Total 

PpaiTi  X 

15,134 
135 

Ifnited  Kingdom.'..^ 
United  States 

151,902 

United  States 

Total 

Carupano: 
NflilhArlandji 

6,565 

1,931 
17,896 
11,583 

15,269 

Total 

172,038 

Fampatar: 
TrlSdad 

Trinidad 

Puerto  Cabello: 

101 

340 

233,830 

United  Kingdom.... 
United  States.....^. 

• 

Total * 

3,606 

Italy 

Grand  total 

Spain 

1,44S,070 

Imited  kingdom. .. . 

37,976 

PROMISING  FIELD  FOR  AMERICAN  SALES. 

The  agricultural  region  of  the  States  of  Carabobo,  Aragua, 
Miranda,  Yaracuy,  aiid  Lara,  and  the  Federal  District  is  easily  ac- 
cessible from  either  Puerto  Cabello  or  Caracas  and  forms  one  im- 
mense territory  capable  of  large  development,  which  is  hindered  only 
by  lack  of  sufficient  labor.  Most  of  the  farms  are  large  estates,  the 
owners  of  which  are  much  interested  in  new  implements,  machin- 
ery, and  methods.  Heretofore  the  means  of  introduction  of  machin- 
ery has  been  practically  limited  to  catalogues  and  advertisements  in 
the  magazines  dedicated  to  Latin- American  trade,  although  native 
houses  are  securing  new  agencies  recently,  and  one  American  agency 
is  very  active.  American  manufacturers  of  agricultural  equipment 
should  send  to  Venezuela  men  experienced  in  tropical  agriculture, 
with  sample  equipment  to  demonstrate  the  utility  and  value  of  the 
equipment  on  the  ground,  the  demonstrator  staying  in  a  given  dis- 
trict during  the  first  crop  season  and  directing  the  work.  Stocks 
of  repair  and  replacement  parts  are  necessary.  Local  agents  left 
in  charge  should  be  encouraged  to  train  men  for  the  service  division 
of  their  sales  department  for  agricultural  equipment.  Without  this 
demonstration  work  no  great  increase  in  sales  of  American  equip- 
ment in  Venezuela  can  be  expected.  The  demand  and  necessity  for 
such  equipment  in  Venezuela,  given  the  conditions  already  explained, 
make  the  expense  of  such  work  well  worth  while.  Only  practical 
men  should  be  sent  to  the  field  for  demonstration  work,  pireferably 
men  experienced  in  the  Tropics. 

For  repair  work  men  can  be  recruited  from  the  ranks  of  the  many 
Venezuelans  who  go  to  the  United  States  every  year  to  work  in  the 
factories  and  industrial  plants  and  return  to  Venezuela  after  a  year 
or  so  to  work  in  garages,  railway  shops,  cotton  factories,  etc.  The 
point  is  that  the  landowners,  while  possessing  the  means  with  which 
to  pay  for  new  equipment,  know  very  little  about  its  practical  utility 
and  have  to  be  shown ;  also,  the  selling  force  will  have  to  organize 
service  facilities  and  take  care  of  the  business  all  tha  way  through. 


48        VENEZUELA :  A  COMMEBCIAL  AKD  INDUSTRIAL  HANDBOOK. 

PRINCIPAL  AGRICULTURAL  PRODUCTS. 

The  principal  agricultural  products  of  Venezuela  are  coffee,  cacao, 
sugar,  tobacco,  cotton,  corn,  beans  and  peas,  and  wheat.  All  kinds 
of  vegetables  are  grown  for  local  consumption,  and  also  both  Torrid 
and  Temperate  Zone  fruits.  Apples  and  peaches  are  found  in  the 
hills  near  Caracas  and  in  the  Western  Andean  region  around  Trujillo 
and  Merida. 

Of  the  exportable  fruits,  the  banana  is  the  most  important,  though 
only  about  $100,000  is  invested  in  the  banana  industry  commercially, 
possibly  because  the  general  scarcity  of  labor  would  make  it  neces- 
sary to  recruit  from  the  West  Indies.  Venezuela  possesses  large 
areas  adjacent  to  seaports  that  are  suitable  for  banana  cultivation, 
but  are  not  yet  used  for  this  purpose. 

The  other  products  produced  m  sufficient  quantity  to  allow  of  ex- 
portation are  coffee,  cacao,  corn,  beans,  and  sugar. 

As  has  been  said,  production  in  Venezuela  can  not  be  increased 
without  an  increase  in  the  population  or  the  general  adoption  of 
better  methods  of  cultivation  and  modern  labor-saving  devices. 
Good  educational  work  is  being  done  in  Venezuela  by  the  magazine 
La  Hacienda,  published  in  Caracas.  Unfortunately,  the  illiteracy 
of  the  mass  of  the  population  precludes  any  general  national  benefit 
from  this  source. 

Sufficient  cotton  and  tobacco  are  grown  to  support  the  domestic 
factories,  and  increased  production  of  these  two  staples  will  be 
sufficient  to  take  care  of  an  expanded  home  demand-  Lack  of  labor 
precludes  an  excess  of  production  above  domestic  needs.  During  the 
war,  when  high  prices  attracted  speculation  in  exportable  products, 
com,  beans,  sugar,  and  tobacco  were  exported,  out  the  resulting 
domestic  shortage  showed  itself  in  inflated  prices  for  these  staples. 
At  one  time  in  1919,  before  the  new  crop  came  in,  tobacco  frcwn 
Cuba  and  Jamaica  was  cheaper  in  Venezuela  than  the  domestic 
product. 

Venezuela  possesses  great  areas  suitable  for  agriculture  that  are 
easily  accessible  from  the  coast  and  connected  wim  seaports  by  rail- 
v/Hys;  and,  while  conditions  are  those  generally  obtaining  m  the 
Tropics,  the  fertility  of  the  soil,  the  abundance  of  rainfall,  and 
proximitj'  to  foreign  markets  offset  the  disadvantages  to  a  great 
extent.  Certain  areas  of  Venezuela  could  be  made  as  productive  as 
the  best  regions  of  Cuba  and  Porto  Rico  if  the  necessary  elements 
of  labor,  capital,  and  organization  were  provided,  to  develop  sugar, 
tobacco,  rice,  and  cotton  on  a  large  scale.  This  is  being  done  on  the 
sugar  lands  of  the  south  shore  of  Lake  Maracaibo,  where  labor  is 
recruited  from  the  Indians  of  the  Goajira  Peninsula  and  tiie  Mara- 
caibo region.  Eesults  and  profits  have  been  so  good  here  that  a 
considerable  increase  in  native  investment  in  sugar  estates  can  be 
looked  for  in  the  near  future  if  prices  arc  maintained  at  a  high  level. 
Other  sugar  estates  also  are  being  enlarged  and  developed,  owing  to 
the  high  price  of  sugar.  The  encouraging  factor  is  the  increasing 
purchase  of  tractors  and  other  modern  machinery. 

Cuba,  Martinique,  Trinidad,  Curasao,  and  other  islands  of  the 
West  Indies  furnish  a  ready  and  close  market  for  all  present  surplus 
products,  and  with  increased  production  the  Panama  Canal  Zone 
could  be  included  for  foodstuffs,  transportation  facilities  being  ample. 


AGRICULTURB.  49 

At  present  considerable  trade  is  carrier!  on  in  small  schooners  of 
60  to  120  tons'  burden ;  but  the  tra<le  is  unorganized  and  dependent 
upon  local  market  conditions,  v/hich  vary  as  the  crop  seasons  of  each 
island  are  good  or  bad. 

Curasao  has  a  large  population  supported  bv  industry,  such  as  hat 
making  and  trading.  The  island  is  practically  barren  and  does  not 
produce  food  in  sufficient  quantities  lor  the  people.  Merchandise  is 
exchanged  for  foodstuffs  from  the  mainland  of  Venezuela.  The 
same  is  true  of  the  Venezuelan  islands  of  Margarita,  Coche,  and 
Cubagua,  which  exchange  pearls  and  dried  fish  for  merchandise. 
Cuba  and  Martinique  and  also  Guadaloupc  take  Venezuelan  cattle, 
hogs,  com,  beans,  and  cacao. 

The  natives  of  Curasao  are  good  boat  builders  and  their  small 
schooners,  noted  for  their  fine  appearance  and  sailing  qualities,  are 
found  in  everj'  port,  large  and  small,  of  the  West  Indies  and  the 
Caribbean  mainland.  The  Venezuelan  trade  with  Curasao  is  the 
best  organized  and  constitutes  the  greatest  asset  of  the  Dutch  island. 
(For  further  details  of  this  trade,  see  report  on  CuraQao.) 

COFFEE. 

IMPORTANCE  AND  GENERAL  CHARACTER  OF  INDUSTRY. 

The  cultivation  of  coffee  began  near  the  present  site  of  Caracas 
in  1784  when  the  first  seeds  were  brought  from  Martinique.  To-day 
the  number  of  coffee  trees  in  Venezuela  is  estimated  at  260,000,000. 

Recent  statistics  place  Venezuela  in  the  third  rank  among  coffee- 
growing  countries,  next  to  Colombia.  In  1919  Colombia  produced 
1,360,000  sacks  for  export  and  Venezuela  1,000,000  sacks.  The  Vene- 
zuelan exports  came  from  the  following  districts:  Maracaibo  dis- 
trict, 500,000  sacks  (including  amounts  received  from  Cucuta,  Co- 
lombia);  Puerto  Cabello  district,  300,000  sacks;  Caracas  district, 
200,000  sacks  (shipped  from  La  Guaira). 

There  are  25,000  coffee  plantations  in  Venezuela,  covering  an  area 
of  200,000  hectares  (1  hectare=:2.47  acres)  and  valued  at  80,000,000 
bolivars  ($16,000,000).  Unlike  Colombia,  where  coffee  plantations 
are  usually  small,  containing  not  over  40,000  trees,  Venezuela  has 
many  large  plantations  in  the  hands  of  wealthy  owners.  One  coffee 
estate,  for  example,  contains  20,000  hectares.  The  picked  berry  is 
brought  down  from  the  hills  by  aerial  trams,  and  the  driers  handle 
150  sacks  every  12  hours.  This  is  one  of  the  largest  coffee  estates  in 
Venezuela  and  is  located  just  east  of  Puerto  Cabello  in  the  Coast 
Range.  Export  shipment  is  made  from  the  small  port  of  La  Cruz 
to  fit  Guaira.  This  plantation  has  been  developed  by  a  system 
whereby  the  natives  clear  and  plant  small  areas  for  the  owner  of  the 
land  under  contract  to  deliver  the  crop  on  a  share  basis  or  to  sell 
the  planted  area,  with  the  crop  on  it,  directly  to  the  plantation  at 
an  agreed  price. 

Coffee  is  grown  in  many  parts  of  the  country.  It  does  well  at 
elevations  of  500  to  2,000  meters,  and  even  higher,  in  Venezuela. 
The  better  grades  come  from  the  elevations  of  6,000  feet  or  over, 
but  they  are  of  slower  growth  and  lower  productivity.  The  entire 
Coast  feange   and  the   Western   Andean  region   are   suitable   for 

79747**— 22 5 


50        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

ooflfee  wherever  there  is  a  sufficient  layer  of  top  soil  and  moisture. 
The  three  principal  regions  of  production  are  Maracaibo,  which  ex- 
ports the  coflfee  produced  in  the  districts  of  San  Cristobal,  Trujillo, 
and  Merida ;  Puerto  Cabello,  which  exports  the  coflfee  grown  in  the 
Coast  Kange  to  the  east  and  west  and  farther  inland;  and  Caracas 
(La  Guaira);  which  exports  the  coflfee  grown  in  the  central  region  of 
the  Coast  Range  inland  from  La  Guaira. 

Coflfee  trees  Dear  fully  within  four  years  after  planting  from  the 
seed  and  live  for  an  average  of  50  years.  The  average  production  per 
tree  is  estimated  at  one-eighth  of  a  kilo  for  each  crop.  Two  pickings 
take  place  each  year,  but  the  first  one,  in  October  and  November,  is 
very  light,  the  large  harvest  being  in  December,  January,  and  part  of 
February.  However,  the  season  for  picking  the  coflfee  varies  with  the 
elevation  and  local  climatic  conditions,  trees  at  elevations  of  over 
3,000  feet  bearing  at  least  one  month  later  than  those  on  lower  areas. 

The  small  plantation  owners  sell  their  coflfee  "  in  pergamino  " — ^that 
is,  with  the  inner  sac  remaining  around  the  double  bean — ^to  the  deal- 
ers and  large  plantation  owners,  who  have  machinery  for  shelling 
and  cleaning  the  bean  in  this  condition.  Most  large  plantations  have 
well-equipped  plants  consisting  of  pulpers,  shellers,  and  driers  for 
handling  coflfee  direct  from  the  pickers. 

The  importance  of  co^ee  in  Venezuela  can  not  be  overestimated. 
In  the  rough  mountainous  regions  of  the  country  it  grows  on  the  steep 
slopes  where  nothing  else  of  value  could  be  produced.  Its  planting 
and  cultivation  demand  little  labor  or  skill,  there  being  no  plowing  or 
other  cultivation  other  than  chopping  out  the  larger  weeds  with 
machetes  once  or  twice  a  j^ear.  The  larger  trees  found  on  the  ground 
are  left  as  shade  for  the  coflfee  plants,  and  in  the  region  of  Caracas 
and  Valencia  bananas  are  planted  to  serve  the  double  purpose  of 
shading  the  tender  young  coflfee  plants  and  furnishing  an  additional 
income  to  the  planter.  Women  and  children,  as  well  as  men,  are  used 
for  picking  in  the  harvest  season. 

In  1919  coflfee  and  cacao  constituted  nearly  three-fourths  of  the  ex- 
ports of  Venezuela,  and  upon  the  successful  marketing  of  the  coflfee 
and  cacao  crops  depend  the  prosperity  of  the  country.  The  principal 
market  is  the  United  States,  but  during  the  war  this  outlet  was  prac- 
tically closed  and  the  Spanish  and  Italian  markets  soon  became  over- 
stocked. Low  prices  and  lack  of  ocean  tonnage  curtailed  production, 
and  the  1918  harvest  came  on  with  large  stocks  left  over  and  in  stor- 
age from  1917.  The  chief  suflferers  were  the  owners  of  coflfee  estates, 
who  depend  upon  advances  from  commission  houses  on  the  crops. 
The  commission  houses  were  unable  to  finance  the  coflfee  in  storage 
without  assistance  from  the  banks. 

PRICES  AND  GRADES. 

In  November^  1918,  following  the  armistice,  coflfee  began  to  ad- 
vance in  price  m  New  York  owing  to  the  demand  for  reexport  to 
Europe,  which  had  been  without  new  supplies  of  coflfee  during  the 
war.  Venezuelan  grades  advanced  rapidly  from  an  average  of  11 
cents  per  pound  in  New  York  to  as  high  as  26  and  even  28  cents  per 
pound  by  May,  1919.  Venezuelan  coflfee  growers  and  dealers  reaped 
a  rich  harvest  at  these  prices.  Old  established  German  firms,  doing 
a  general  commission  and  mercantile  business  and  acting  as  private 


AGRICULTURE. 


51 


bankers  with  the  policy  of  helping  the  planter  of  the  interior  directly 
p.nd  handling  his  products  of  export,  had  been  forced  to  receive  large 
amounts  of  coffee  from  their  clients  at  low  prices  and  during  the 
war  were  unable  to  move  the  coffee  thus  received.  In  Maracaibo  and 
Cucuta  the  congestion  became  so  great  that  rooms  in  private  houses 
had  to  be  rented  for  storage  purposes.  The  removal  of  the  enemy 
trading  restrictions  came  on  the  rising  market,  and,  instead  of  a  loss, 
the  coffee  thus  collected  by  the  larger  German  firms  of  Venezuela 
represented  an  enormous  profit.  A  factor  in  the  high  prices  of  1919 
w^as  the  partial  destruction  of  the  Brazilian  crops  by  frosts  in  the 
preceding  year. 

Prices  and  grades  of  Venezuelan  coffee  are  lower  than  those  of 
Colombia  but  much  better  than  those  of  Brazil.    When  Colombian 

?*ades  are  selling  for  an  average  price  of  28  cents  per  pound  in  New 
ork,  Venezuelan  grades  are  wortn  around  26  and  27  cents  per  pound 
and  the  heavier  Brazilian  grades  (Santos  and  Bahia)  around  10  and 
11  cents.  Venezuelan  grades  are  classed  with  the  Colombian  and 
Central  American  "  suaves,"  or  mild  grades,  and  are  most  used  by 
coffee  roasters  for  blending  with  the  heavier  Brazilian  coffees. 

The  Venezuelan  coffees  are  known  as  Maracaibo,  Caracas,  and 
Puerto  Cabello,  although  there  is  little  distinction  in  grade,  quality 
depending  not  upon  the  region  but  upon  the  elevation  and  the  care 
used  in  cultivation  and  classification  for  market. 

The  following  prices  were  quoted  in  New  York  in  August,  1920, 
for  the  different  grades  of  Venezuelan  coffee: 

Maracaibo :/  Cents. 

Cucuta  Excellent ' 13^ 

Cucuta  Good 12f 

Trujlllo 101 

Cucuta,  Shelled 15f 

Bocono 12i 

Merida 13J 

La  Gualra : " 

Caracas 10^-11 

Caracas  Superior 14  -16 

Puerto  CabeUo:  * 

Puerto  Cabello 101-11 

Puerto  Cabello  Superior 13  -15 

STATISTICS  OF  EXPORTS. 

The  following  table  shows  the  quantity  and  value  of  coffee  ex- 
ported from  the  principal  ports  of  Venezuela  during  1920,  with  the 
chief  countries  of  destination: 


[Kilo»  2.2046  pounds;  bolivar -SO.  193.) 


Countries. 


LaOoaira 

Canary  Islands.. 

Curacao 

France 

Italy, 

Martinique 

Netherlands 

Spain 

Xmited  Kingdom 
United  States.... 


Kilos. 


12,949,312 
192,547 
175,405 

5,112,855 

76,080 

435,979 

470, 734 

2,338,147 
740,534 

3.406.571 


Bolivars. 


25,505,910 

337,225 

185,599 

9,633,097 

121,728 

674,926 

1,133,784 

4,433,751 

l,598,d31 

7,386,019 


Countries. 


Maracaibo 

Curacao 

France 

Netherlands 

Spain 

United  Kingdom 

United  States.... 
Puerto  Cabello 

Belgium 

Canary  Islands.. 


Kilos. 


39,021,189 

2,660,055 

912,756 

123,467 

23,695 

40,367 

35,250.929 

27,218,339 

12,200 

47.768 


Bolivars. 


63,038,333 

5,016,508 

1,591,942 

339,860 

61,607 

110,114 

56,803,422 

67,720,417 

24,400 

99,046 


^  Immediate  shipment. 


>From  stocks. 


52        VENEZUELA :   A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 


Countries. 

Kilos. 

Bolivars. 

Countries. 

Kilos. 

Bolivars. 

Puerto  Cabello— Contd. 
Cuba 

52,931 

1,146,321 

11,379,133 

81,300 

2,374,060 

4,430,416 

961,681 

6,728,024 

1,116,919 

1,066,883 

35,949 

11,087 

127,342 

54,041 

87,688 

1,867,224 

24, 196, 495 

148,500 

6,860,125 

9,304,400 

1,804,614 

13,318,047 

1,670,094 

1,575,627 

67,313 

23,854 

309,402 

162,123 

Ciudad  B  livar— Contd. 
TrinMftd 

15,466 
56,175 
1,031,482 
13,200 
959,150 
19,860 
30,000 
87,607 
20,503 
59,461 

22,322 

Curasao 

United  States 

Puerto  Sucre 

121,641 

FrRPCft ......... T .  . 

2,148,301 

Italy 

Curasao 

33,0OO 

NetneHands  -  - , . . 

Franc©     -  -  r -  x , 

1,»70,897 

Spain 

Netherlands 

51,636 

Ifnited  Kingdom 

United  States 

United  States........ 

Other  ports 

76,  GOO 
136,111 

C^nipano-  - .  ... 

Curasao 

32,  446 

K^raic© 

qVinirlfvl             

101,  088 

Wnf  tinrlaTtH  q 

Total 

X^  V  I>11C1  IcUlUo  .......... 

United  States 

81,552,190 

151. 428. 568 

Ciudad  Bolivar 

Curasao. .  .• 

The  United  States  received  45,482,786  kilos  of  Venezuelan  coffee 
in  1920,  valued  at  77,727,983  bolivars  ($15,001,501),  or  nearly  56  per 
cent  of  the  total  quantity  exported  and  51  per  cent  of  the  total  value. 
The  total  exports  in  1920  amounted  to  1,359,203  sacks  of  60  kilos 
and  were  valued  at  $29,225,714  at  the  par  rate  of  exchange. 

Practically  all  the  coffee  exported  in  1920  was  of  the  1919  crop, 
since  the  coffee  crop  starts  to  move  in  December  and  the  first  heavy 
shipments  take  place  in  January.  Prices  obtained  for  the  1919  crop 
averaged  well  above  20  cents  per  pound  in  New  York  and  resulted, 
in  the  greatest  influx  of  wealth  ever  experienced  in  Venezuela,  stimu- 
lating business  and  industry  and  bringing  on  an  era  of  unparalleled 
prosperity.  The  first  of  the  1920  crop  was  moved  at  fairly  high, 
prices  but  on  a  declining  market. 

EFFECT  OF  COFFEE  MARKET  ON  GENERAL  ECONOMIC  CONDITIONS. 

Upon  the  volume  and  market  prices  of  coffee  and  cacao,  the  two 
great  export  staples  of  Venezuela,  depends  the  economic  condition 
of  the  country  for  the  year.  If  the  coming  crops  are  reported  to  be 
good  the  buying  of  foreign  merchandise  is  brisk  in  anticipation  of 
a  heavy  demand  immediately  following  the  harvest  in  the  interior ; 
if  crops  are  light  or  foreign  market  prices  low,  commerce  in  general 
is  affected,  buying  of  goods  is  slow,  and  the  entire  country  suffers. 
Venezuela  possesses  other  resources  sufficient  for  domestic  consump- 
tion, but  depends  upon  the  exports  of  coffee  and  cacao  for  its  foreign 
trade  balance  year  by  year.  The  American  exporter  interested  in 
extending  trade  relations  with  Venezuela  will  do  well  to  keep  in 
touch  with  and  study  coffee  and  cacao  crop  and  market  conditions 
and  govern  his  efforts  in  this  market  accordingly. 

The  situation  in  the  middle  of  1920  illustrates  the  important  bear- 
ing of  the  coffee  market  on  general  conditions.  Coffee  prices  gradu- 
ally fell  back  almost  to  pre-war  normal  levels  by  the  end  of  August, 
i.  e.,  to  about  half  of  the  prices  obtaining  during  1919.  Importers 
were  heavily  stocked  in  anticipation  of  another  year  of  high  prices. 
Buying  from  the  interior  became  very  light  and  large  stocks  in 
many  cases  were  sacrificed  to  obtain  cash  with  which  to  meet  bills 
for  goods  purchased  during  the  high  prices  of  the  spring  months. 
Holders  of  coffee  stocks  did  not  sell  on  the  local  markets  because 
they  hoped  for  a  market  reaction  which  could  not  reasonably  be 
looked  for  in  1920  given  light  buying  from  Europe  and  heavy  ship- 


AGRIcra^TURE.  63 

mtBnts  from  Brazil.  The  situation  was  greatly  aggravated  by  the 
high  rate  of  exchange  for  the  dollar,  a  13  per  cent  premium  being 
registered  in  the  first  week  of  September,  and  by  the  general  re- 
striction of  credits  in  anticipation  of  a  dull  season  in  general  busi- 
ness and  commerce.  Another  factor  was  the  restriction  of  com- 
mercial credits  in  the  United  States  and  the  refusal  of  the  New 
York  export  commission  houses  to  accept  coflFee,  cacao,  and  hides 
from  Venezuela  on  consignment,  with  advances,  as  was  formerly 
customary. 

Local  coffee  prices  are  governed  by  New  York  quotations  (less 
commissions),  land  and  ocean  freights,  cleaning  and  washing  charges, 
and  the  price  of  money. 

Prices  in  the  Caracas  market  at  the  end  of  August,  1920,  were  as 
follows:  Small  sales  of  first  grade  (cleaned)  at  72. bolivars  ($13.90) 
per  100  pounds  (46  kilos).  Offers  of  75  bolivars  ($14.47)  per  100 
pounds  were  not  being  accepted  by  holders  of  stocks  or  for  future 
deliveries.  "Trillados"  were  quoted  at  64  ($12.35)  and  "Pasilla" 
at  56  bolivars  ($10.81),  according  to  class  and  grade.  Few  sales  were 
made,  the  tendency  being  to  hold  for  an  increase  in  price  in  spite  of 
reports  of  heavy  Brazil  shipments  and  slow  demand  in  New  York 
for  the  "  suave  '^  (mild)  grades  of  Colombian  and  Venezuelan  coffees. 

By  November  30, 1920,  prices  ofi  the  New  York  market  for  various 
grades  had  fallen  to  the  following  quotations : 

Maracaibo  :  Cents  per  pound. 

TrujUlo 9f-10 

Bocono , lOf-lOi 

Tovar - ' lOi-lOi 

Merida — 

TrUlado llf-ll| 

Descerezado llf-13i 

Cucuta-r- 

Descerezado > lli-13i 

Choice  grade 13^-141 

Caracas : 

TriUado 9M0 

Descerezado 11^-13 

Puerto  CabeUo: 

TriUado ^—    9^-10 

Descerezado 10  -12 

About  5,000  sacks  of  Maracaibo  coffees  were  received  and  sold  in 
New  York  during  October,  but  the  leftover  stocks  of  Caracas  and 
Puerto  Cabello  grades  were  reported  small  and  of  poor  quality,  with 
the  market  demand  very  light.  Commission  houses  were  finding  it 
increasingly  impossible  to  place  coffee  on  "futures"  (future  de- 
livery), and  a  still  further  decline  was  predicted  on  account  of  the 
expected  heavy  arrivals  from  Brazil  and  the  doubt  that  the  United 
States  would  be  able  to,  absorb  all  the  coffee  offered.  The  active 
coffee  market  in  New  York  at  the  end  of  1919  and  during  the  first 
half  of  1920  was  due  to  the  demand  from  Europe,  which  had  been 
without  new  stocks  of  coffee  since  the  beginning* of  the  war,  and  to 
the  partial  failure  of  the  Brazilian  crop  m  1918,  due  to  frost.  The 
demand  from  Europe  on  the  New  York  market  was  limited  in  the 
latter  part  of  1920  by  Europe's  inability  to  pay. 

In  November,  with  the  picking  season  rapidly  approaching,  coffee 
planters  were  offering  their  output  in  Caracas  at  60  bolivars  ($11.58) 


54        VENEZUELA :  A  COMMERCIAL  AKD  INDUSTRIAL  HANDBOOK. 


fo 


er  quintal  (101.4  pounds),  but  local  prices  had  already  declined  be- 
ow  that  figure,  affected  by  the  further  tendency  to  decline  in  New  York 
and  also  by  the  credit  stringency  prevailing  throughout  the  countty. 
Money  was  then  worth  at  least  10  per  cent  at  the  banks  and  much 
more  from  private  sources,  and  a  great  deal  of  the  liquid  capital  of 
the  country  was  already  tied  up  in  crop  advances,  foreign  exchange, 
and  merchandise  purchased  at  the  high  prices  of  the  spring  of  1920. 
There  was  not  enough  money  in  the  country  to  finance  the  40  per 
cent  of  the  previous  year's  crop  that  was  still  on  hand  (held  by 
speculators,  who  had  purchased  it  at  high  prices,  averaging  around 
120  bolivars,  or  $23.16,  per  quintal,  during  the  coffee  boom  of  1919) 
and  also  the  coming  new  crop — not  to  mention  the  demands  on  capital 
from  all  the  other  mdustries  of  the  country. 

Late  in  December  it  became  apparent,  contrary  to  predictions,  that 
the  United  States  would  be  able  to  absorb  most  of  Brazil's  crop,  and 
the  coffee  market  reacted  slightly  (a  fraction  of  a  cent  per  pound) 
but  enough  to  encourage  the  growers  and  to  keep  the  speculatoi*s 
firm  in  their  decision  to  hold  their  1919  stocks  as  long  as  they  could 
carry  them  on  borrowed  monev.  During  this  period  representatives 
of  American  coffee  buyers  in  the  country  began  to  renew  their  offers 
at  the  lower  prices;  but  the  general  decision  of  the  growers  and 
owners  of  old  stocks  was  to  hold  their  coffee  whenever  possible,  in 
expectation  of  better  prices  in  1921. 

COST  OF  PRODUCTION. 

Prior  to  the  war  coffee  growers  estimated  the  cost*  of  production  of 
one  quintal  (101.4  pounds)  of  cleaned  and  washed  coffee  ready  for 
export  and  "  ex  warehouse  "  Caracas  at  28  bolivars  ($5.40).  In  1919 
this  figure  had  increased  to  42  bolivars  ($8.11) ,  owing  to  the  increased 
charges  for  labor,  cartage,  etc.,  and  the  rains  that  made  the  season 
very  late. 

It  cost  about  2  bolivars  ($0.39)  in  1919  to  lay  down  one  quintal 
(10.14  pounds)  of  coffee  from  warehouse  in  Caracas  to  warehouse  in 
La  Guaira  for  ocean  loading.  To  this  figure  must  be  added  the  load- 
ing charges  of  the  La  Guaira  Harbor  Corporation  of  27.50  bolivars 
($5.21)  per  metric  ton,  and  the  ocean 'freignt,  plus  handling  charges, 
warehousing,  and  commissions  in  New  York  or  European  ports. 

The  cost  of  living  was  beginning  to  decrease  in  Venezuela  in  De- 
cember, and  wages  thus  became  more  adequate  for  the  people.  With 
t^e  gradual  return  to  normal  after  the  period  of  speculation  induced 
by  tne  high  prices  for  products  of  export  during  1919,  production 
costs  will  be  lower,  even  without  smy  material  decrease  in  wages, 
already  low  enough.  With  present  prices  in  New  York  at  about  the 
pre-war  level,  and  even  given  the  1919  figure  of  cost  of  production, 
the  Venezuelan  coffee  planter  can  take  care  of  his  existing  planta- 
tions, increase  them,  jiarvest  his  crops,  and  make  a  reasonable  profit ; 
but  there  is  no  wide  margin  left  for  the  speculator. 

NEW  AREAS  OF  COFFEE  TREES  SET  OUT. 

Considerable  new  areas  were  set  out  to  coffee  trees  in  1919  and 
1920,  this  development  of  the  industry  being  brought  about  by  the 


AGBICTJLTUBB.  55 

prosperity  of  those  years  and  the  high  prices  for  the  product ;  but 
these  trees  will  not  reach  full  bearing  for  three  to  five  years  from 
date.  In  the  meantime,  market  or  climatic  conditions  may  still  fur- 
ther affect  the  total. 

MOVEMENT  FOB  BETTER  DISTBIBUTION  OF  CBOF. 

In  January,  1921,  warehouses  of  Willemstad,  Curasao,  were  already 
beginning  to  be  filled  with  Venezuelan  coffee,  brought  over  from 
Maracaibo  by  the  many  small  schooners  plying  in  that  trade;  this 
coffee  was  to  be  held  in  Curasao  until  better  market  conditions  pre- 
vailed. 

The  Venezuelan  Government  is  alive  to  the  effect  on  coffee  prices 
of  the  congestion  of  the  New  York  market  during  the  shipping  sea- 
sons ;  and  through  its  commercial  agents'  offices  recently  established 
in  New  York  and  the  principal  capitals  and  commercial  centers  of 
Europe  it  is  endeavoring  to  bring  about  a  better  distribution  of  the 
coffee  crop.  The  New  Orleans  market  was  to  be  investigated  with 
this  end  in  view  and  as  one  of  the  prospective  markets  much  nearer 
to  Venezuela  than  any  other  coffee  port. 

EFFECT  OF  EXCHANGE  SITUATION. 

A  high  premium  for  the  dollar  in  Venezuela  benefits  the  coffee 
exporter,  as  he  is  paid  for  his  product  in  dollars,  which  he  can  sell 
at  a  higher  rate  in  Venezuelan  money  and  so  get  more  for  his  product. 
One  of  the  hoped-for  means  of  relief  from  the  high  premium  com- 
manded by  the  dollar  late  in  1920  was  the  effect  on  exchange  that 
the  offering  of  the  drafts  in  payment  of  the  1920-21  coffee  crop 
would  have  in  Venezuela.  However,  low  prices,  subnormal  crop,  and 
the  tendency  to  hold  the  product  for  better  prices  later  on  in  1921 
militated  against  the  full  effect  of  any  such  benefit  to  the  exchange 
situation,  at  least  during  the  first  half  of  1921. 

CACAO. 


The  natural  cacao  (called  Theobrovia  edendo^  meaning  "edible 
food  of  the  gods")  is  a  seed  from  a  tree  indigenous  to  the  soil  of  i 

Venezuela,  which  possesses  one  of  the  best  cacao  zones  in  the  world. 
Cacao  is  second  in  importance  among  the  exports  of  Venezuela  ship-  | 

ments  of  this  product  averaging  300,000  bags  annually,  as  follows:  3 

La  Guaira,  175,000  bags;  Puerto  Cabello,  50,000  bags;  Carupano,  \ 

75.000  baffs.  ^ 

The  cacao  tree  requires,  for  full  development  and  profitable  crops,  - 

a  temperature  of  80°  F.  (27°  C),  a  moist  climate,  well-drained  land,  I, 

and  shade.  When  the  land  is  cleared  for  cacao  planting  the  larger 
trees  are  left  for  the  purpose  of  affording  shade  to  the  tender  cacao 
plants.  The  cacao  plant  is  much  more  delicate  than  the  coffee  shrub, 
being  subject  to  plant  disease,  principally  occasioned  by  the  gray 
moth. 

The  regions  of  cacao  production  in  Venezuela  are  distributed 
throughout  the  Coast  Range  from  west  of  Puerto  Cabello  to  Carenero 
and  iSand  as  far  as  the  hills  of  the  llanos  south  of  Caracas,  occurring 


1 1 


66        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

affain  in  the  Coast  Range  east  of  Barcelona  and  around  Carupano. 
The  average  elevation  is  3,000  feet  above  se^  level.  Cacao  is  also 
found  in  considerable  areas  in  the  lower  levels  of  the  Western  Andes 
in  the  Trujillo,  Merida,  and  Lake  Maracaibo  districts.  The  Caracas 
district  has  the  heaviest  production,  shipping  three  times  as  much 
cacao  as  any  other  district  in  the  country ;  plantations  are  given  more 
attention  in  the  way  of  protection  and  cultivation,  and  Sie  care  of 
the  cacao  itself,  after  picking,  is  scientifically  carried  out. 

About  200  cacao  trees  are  planted  to  each  hectare  (2.47  acres). 
They  require  from  five  to  seven  years  (according  to  elevation  and 
local  conditions)  to  reach  full  bearing,  when  two  crops  a  year  are 
produced,  ripening  in  June  and  December;  the  pods  containing  the 
cacao  bean  depend  directly  from  the  bark  of  the  tree  on  the  trunk 
and  branches.  Generally,  all  trees  produce  small  quantities  through- 
out the  year,  but  the.  two  main  harvests  are  as  stated.  The  average 
life  of  the  cacao  tree  is  about  40  years,  during  which  time  the  two 
crops  yield  about  550  to  675  kilos  (1  kilo=2.2046  pounds)  per  hectare 
(2.47  acres) -^as  a  high  average  yield  under  the  best  conditions.  The 
cacao  bean  is  held  in  an  efongated  pod  ribbed  like  a  muskmelon, 
yellow  and  red  in  color,  but  turning  purple  when  it  is  ripe.  Each 
pod  contains  16  seeds.  After  picking,  the  pods  ferment  and  burst 
open  with  the  heat  in  a  few  days,  when  the  seeds  are  shelled,  washed, 
and  packed  for  shipment.  Unlike  the  coffee  bean,  cacao  can  not  be 
stored  in  a  moist  climate  for  any  length  of  time  on  account  of  fermen- 
tation. Cacao  drying  sheds  are  built  with  movable  roofs,  which  can 
be  quickly  placed,  over  the  drying  beans  in  case  of  rain  or  damp 
nights. 

Two  grades  of  cacao  are  grown  in  Venezuela — the  "  crioUo,"  which 
is  the  native  cacao,  and  the  "  trinitario,"  which  was  originally  im- 
ported from  the  island  of  Trinidad.  The  "  crioUo  "  grows  best  in 
the  small  valleys  near  the  sea,  where  the  temperature  is  warm  and 
moist.  This  kind  is  of  very  high  grade.  The  "  Chuao  plantation  " 
produces  a  still  finer  grade  which,  on  account  of  its  sweetness  and'high 
oil  content,  commands  an  exceptionally  hiffh  price,  principally  in 
France.  The  total  investment  in  cacao  in  Venezuela  is  estimated  at 
62,000,000  bolivars  ($12,400,000).  Roughly,  the  average  annual  ex- 
ports of  cacao  from  Venezuela  total  10,000  tons,  valued  at  $2,000,000. 
The  lack  of  sufficient  labor  and  the  influx  of  the  rural  populations  to 
the  cities  preclude  an  increase  in  production  on  any  considerable 
scale  for  some  time  to  come. 

Puerto  Cabello  shipped  in  1917  a  total  of  6,285,558  pounds,  valued 
at  $853,758.  France  was  the  principal  buyer  of  Venezuelan  cacao 
prior  to  1914.  Puerto  Cabello  cacao  exports  fell  off  in  1918,  amount- 
ing to  only  4,470,000  pounds,  valued  at  $441,160,  of  which  the  United 
States  received  3,745,258  pounds,  valued  at  $367,649. 

To  show  the  relative  value,  by  countries  of  destination,  of  Vene- 
zuela's exports  of  cacao,  the  latest  available  statistics,  covering  the 
year  1919,  are  given  in  the  following  table : 


AGRICULTURE. 


57 


[Kilo- 2.2046  pounds;  boUvar-IO.igs.] 


Ports    of   shipment    and 
countries  of  aestlnation. 


nOM  LA  OUAIRA. 


Canarr  Islands... 

CoIomDia 

Curacao 

France 

Italy 

Martinique 

Netherlands 

Porto  Rico 

Spain 

Trinidad 

United  Kingdom , 
United  States 


Total. 


FROM  MARACAIBO. 


Curacao 

Netherlands 

Spain. , 

United  Kingdom . 
United  States 


Total 

FROM  PUEBTO  CABELLO. 


Aruba 

Bonaire 

Curasao 

France 

Netherlands 

Spain 

United  Kingdom . 
United  States 


Total. 


Kilos. 

Bolivars. 

33,700 

47,180 

24,400 

34,160 

131,700 

187,264 

2,339,172 

4,514,106 

115,  £25 

221,543 

95,380 

163,418 

929,399 

2,440,935 

2,404 

3,360 

^'^S'S5 

1,464,220 

322,000 

450,800 

1,933,957 

4,459,112 

3,071,346 

6,571,471 

10,122,470 

20,557,569 

21,604 

64,377 
28,948 

12,866 

6,000 

13,500 

3,131 

9,071 

383,927 

861,882 

427,528 

967, 778 

96 

130 

45 

80 

96,337 

143,903 

42,100 

117,880 

157,095 

408,837 

576,485 

1,208,287 

765,436 

2,004,020 

1,248,006 

2,894,024 

2,885,600 

6,777,161 

Ports    of   shipment    and 
countries  of  destination. 


FBOM  aUDAD  BOLIVAB. 

Trinidad 

FROM     BARRANCAS     (ORI- 
NOCO  DELTA). 

Trinidad 

FROM  CARUPANO  (EASTERN 
COAST  RANGE). 

France 

Italy 

liartinique 

Netherlfmds 

Trinidad 

United  Kingdom 

United  States 

Total 

FROM  RIO  CARIBE. 

France 

Trinidad 

Total 

FROM  PUERTO  SUCRE. 

United  States 

FROM     CRISTOBAL     COLON 
(EASTERN  COAST  RANGE). 

Trinidad 

Grand  total 


Kilos.. 


61,204 


238,612 


2,000,163 

12,000 

3,000 

314,861 

256,384 

69,900 

454,466 


3,110,774 


120,460 
215,386 


335,846 


2,050 


2,654,861 


19,838,945 


BoUvara. 


122,408 


548,279 


3,416,421 
21,600 
4,500 
713,298 
416,967 
139,030 
977,036 


5,688,852 


216,828 
360,218 


677,046 


1,537 


3,845,938 


39,086,568 


Of  the  cacao  exports  in  1919,  according  to  the  above  Venezuelan 
figures,  the  United  States  received  6,159,796  kilos,  valued  at  11,- 
306,960  bolivars  ($2,182,048),  France  took  a  total  of  4,601,896  kilos, 
valued  at  8,265,236  bolivars  ($1,696,190),  the  next  largest  buyers  of 
this  Venezuelan  product  being  the  United  Kingdom  and  Spain,  in 
the  order  named. 

According  to  official  United  States  statistics,  this  country  pur- 
chased from  Venezuela  in  1920  cacao  to  the  amount  of  16,381,647 
pounds,  valued  at  $3,478,286.  ' 

As  compared  with  coffee,  cacao  requires  more  care  in  planting, 
cultivation,  and  handling  of  the  crop  after  picking,  the  product  being 
much  more  delicate  and  subject  to  fermentation,  moid,  and  other 
damage  from  dampness  and  heat./  More  labor  and  a  heavier  initial 
expenditure  are  required  than  in  the  case  of  coffee.  For  these  rea- 
sons coffee  receives  more  attention  from  growers  in  Venezuela,  where 
climate  and  soil  in  easily  accessible  places  are  ideal  for  its  cultivation. 
Exports  of  both  cacao  and  coffee  could  be  greatly  increased  if  more 
capital  were  to  be  invested  and  labor  secured  from  outside  sources. 
The  cultivation  of  cacao  has  the  advantage  of  requiring  less  ma- 
chinery for  the  preparation  of  the  bean  for  export. 

The  Venezuelan  tariff  allows  the  free  entry  into  the  country  of 
drying  machinery  for  cacao,  the  evident  intent  of  the  schedule  being 


58        VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HAITdBOOK. 

free  entry  of  all  cacao-working  machinery.  Imports  of  cacao  ma- 
chinery into  Venezuela  have  averaged  about  $200,000  per  annum  in 
the  past. 

TOBACCO. 

Tobacco  was  introduced  into  Venezuela  by  the  Spaniards  from 
the  West  Indies  in  early  colonial  times,  being  most  successfully  culti- 
vated in  the  Provinces  of  Capadare,  Yaritagua,  Merida,  Cumanacoa, 
Guanape,  Guaribe,  and  Barinas.  Very  good  tobacco  is  also  grown 
near  Cumana,  that  from  Guaracho  being  considered  exceptionally 
good.  In  modern  times  tobacco  is  also  grown  in  commercial  quanti- 
ties in  the  Federal  District  and  Quebrada  Seca,  in  the  State  of 
Aragua,  and  near  Valencia,  in  the  region  of  Guacara. 

The  tobacco  plant  thrives  best  in  the  humid  and  deep  soils  of  the 
small  valleys.  It  requires  six  months  for  maturity,  as  a  rule,  and 
needs  great  care. 

Prior  to  the  war  some  tobacco  had  been  exported  from  Venezuela, 
chiefly  to  Cuba,  where  it  was  mixed  with  Cuban  tobacco  and  used 
for  the  manufacture  of  Cuban  cigarettes. 

The  principal  classes  and  grades  of  Venezuelan  tobacco  are  dis- 
tinguished according  to  the  districts  in  which  they  are  produced,  as 
follows:  Maturin,  Capadare,  Salon,  Golfero,  Guaribe,  Cocorote, 
Cumana,  Quebrada  Seca,  and  Guaracho.  Other  grades  of  lesser  im- 
portance are  grown  near  Urachiche,  Guanape,  Orituco,  Paya,  and 
Tovar.  Similar  grades  are  produced  in  widely  separated  parts  of 
the  country,  as  climate  and  soil  conditions  are  matters  of  elevation 
rather  than  latitude  in  Venezuela. 

GRADES  OF  VENEZUELAN  TOBACCO. 

"  Maturin  "  is  produced  in  the  State  of  Monagas,  in  the  region  of 
the  town  of  Maturin.  It  was  in  this  region  and  that  of  Barinas,  in 
the  State  of  Zamora,  that  tobacco  was  first  grown  in  Venezuela  by 
the  Spaniards.  Maturin  is  the  heaviest  producer  of  tobacco,  and  this 
grade  is  the  best  known  in  foreign  markets.  Since  early  times  the 
cultivation  of  tobacco  has  steadily  decreased  in  the  Barinas  district, 
while  it  has  increased  in  that  of  Maturin,  from  which  latter  source 
the  principal  supply  of  tobacco  for  domestic  manufacture  has  been 
drawn.  Maturin  tobacco  is  classed  as  "  Principal "  or  "  Covering," 
"  Half-tree,"  and  "  Sprouts."  Each  package  for  export  weighs  25 
to  35  kilos  (1  kilo=2.2046  pounds)  and  is  wrapped  in  banana  leaves 
tied  with  agave  cord.  It  is  distinguished  by  the  fact  that  the  leaves 
are  light  in  weight  in  comparison  with  their  bulk,  and  that  the 
tobacco  is  of  medium  strength,  of  good  aroma,  and  keeps  in  good 
condition  for  a  period  of  two  years  before  losing  its  strength. 

"  Capadare  "  is  of  better  quality  than  "  Maturin,"  maintaining  its 
strength  for  three  years  or  more  after  packing.  The  kind  known 
locally  as  "  Mirimire  "  (from  the  Capadare  region)  is  of  still  better 
aroma  and  quality.  Its  weight  in  proportion  to  its  bulk  is  greater 
than  that  of  "  Maturin,"  and  it  does  not  burn  as  fast  as  the  latter. 
*'  Capadare  "  is  packed  in  jute  bags  of  46  kilos  each  and  is  graded 
as  No.  1  and  No.  2. 

"  Salon  "  has  a  very  fine  aroma  and  very  fine,  light  leaves  of 
lighter  color  than  other  Venezuelan  tobaccos,  and  it  is  used  mostly 


AGfelCtTL'TUKE. 


5d 


for  the  outer  wrapping  of  the  better  grade  of  native  cigars.  This 
tobacco  burns  well  and  is  known  by  foreign  buyers  as  "  Cover," 
"  Inner  Cover,"  and  "  Core."  These  three  grades  or  classes  are 
packed  separately  in  jute  packages  weighing  about  40  kilos  each 
for  export. 

"  Golfero  "  comes  from  the  region  of  that  name  on  the  shores  of 
the  Gulf  of  Cariaco,  State  of  Sucre,  near  Cumana,  where  Cuban  seed 
has  recently  beep  introduced  and  a  superior  grade  of  leaf  produced. 
This  tobacco  has  strength,  aroma,  and  a  good  flavor,  and  burns  well. 
It  will  last  two  years  after  packing.  Packages  for  export  are 
wrapped  in  banana  leaves  and  weigh  from  20  to  35  kilos.  It  is 
classed  by  foreign  buyers  as  "  Principal,"  "Half -tree,"  and  "  Sprouts." 

"  Guaribe  "  is  strong,  heavy  in  relation  to  its  volume,  and  does  not 
burn  well.  It  is  used  as  a  mixture  in  domestic  cigarette  manufac- 
ture, to  maintain  the  strength  for  some  time.  Packages  are  wrapped 
in  jute  and  weigh  40  to  48  kilos  each. 

"  Cocorote  "  has  a  delicate  leaf,  light  in  weight  and  of  considerable 
strength,  being  used  mostly  in  the  manufacture  of  domestic  cigars 
and  classified  as  "  Cover,"  "  Inner  cover,"  and  "  Core."  Packages  are 
wrapped  in  native  agave-fiber  covering  and  weigh  approximately  40 
kilos  each  for  export. 

"Cumana,". also  from  the  region  of  the  Gulf  of  Cariaco,  near  the 
port  of  Cumana,  may  be  classified  in  the  same  way  as  the  "  Golfero." 

"  Quebrada  Seca  "  has  light  weight  and  strength  but  is  little  used 
for  cigarettes,  being  consumed  in  a  cheap  grade  of  strong  domestic 
cigar. 

"  Guacharo  "  also  comes  from  the  Gulf  of  Cariaco  region  near  the 
Guacharo  Caves,  where  the  soil  has  a  heavy  impregnation  of  bat 
guano.  This  tobacco  is  considered  the  best  produced  in  Venezuela; 
the  leaf  is  small  and  delicate  and  much  in  demand  bv  manufacturers 
of  the  better  grade  of  cigars.  The  quantity  produced  is  too  small  to 
permit  its  use  in  domestic  cigarette  manufacture.  The  entire  Gua- 
charo crop  is  packed,  without  classification,  in  packages  weighing  20 
kilos,  wrapped  in  banana  leaves,  and  tied  with  native  agave  cord.  An 
outer  covering  of  jute  is  then  added  for  better  protection  of  the  fine 
leaf. 

PRODUCTION  AND  DOMESTIC  CONSUMPTION. 

The  total  production  of  tobacco  in  Venezuela  is  calculated  at  ap- 
proximately 4,000  tons  per  year,  from  various  distinct  districts  and  of 
varying  quality,  as  follows  (1  metric  tonz=2,205  pounds) : 


Metric  tons. 

Maturin 1,  500 

Capadare 1, 000 

Salom 300 

Golfero 1, 100 

Guaribo 100 


Cocorote 

Quebrada  Seca. 
Guacharo 


Metric  tons. 

300 

50 

3 


Total 4, 353 


Of  these  tobaccos  the  superior  grades,  which  command  the  high- 
est prices,  are  those  from  the  districts  of  Golfero,  Capadare,  Salom, 
and  Maturin,  producing  the  best  grade  of  leaf  in  the  country,  which 
is,  in  turn,  divided  into  three  classes — first,  second,  and  third — and 
used  as  the  base  for  the  mixtures  entering  into  the  elaboration  of  the 
better  grades  of  native  cigarettes. 


60       VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 


1918 :  Kilos. 

First  half 217, 000 

Second  half 2,532,000 

1919 : 

First  half 230,000 

Second  half 382,000 


The  cigarette-manufacturing  industry  of  Venezuela  uses  each  year 
no  less  than  1^00,000  kilos  (1  kilo=2.2046  pounds)  of  tobacco,  con- 
suming about  30  per  cent  of  the  first  three  grades  mentioned,  the  rest 
of  the  tobaccos  used  being  of  second  and  tmrd  class. 

The  domestic  manufacture  of  cigars  takes  about  1,000,000  kilos  of 
tobacco,  which,  added  to  the  consumption  in  the  making  of  the  native 
cigarettes,  amounts  to  about  one-half  of  the  country's  production  of 
tobaccos,  leaving  the  other  half  for  exportation. 

The  average  price  of  Venezuelan  tobacco  (considering  the  various 
districts  of  production  and  classes  of  leaf)  may  be  said  to  be  about 
3  bolivars  ($0.58)  per  kilo. 

Venezuelan  exports  of  tobacco  from  1915  through  1919  are  shown 
below: 

1915 :  KiioB. 

First  half 43, 000 

Second  half 297, 000 

1916: 

First  half 281, 000 

Second  half 193,000 

1917: 

First    half 45,000 

Second  half 79,000 

The  actual  present  consumption  of  cigarettes  in  the  Republic  is 
more  than  4,000  boxes^per  month,  each  box  containing  100  dozen 
packages  of  10,  12,  14,  and  16  cigarettes  each.  In  some  districts  of 
the  country  only  the  types  containing  12,  14,  and  16  cigarettes  are 
purchased  by  the  public  in  large  quantities,  the  Federal  District 
being  the  largest  consumer  of  the  higher  grades  containing  only  10 
cigarettes  in  each  package.  This  last-mentioned  grade  is  ruinous  for 
the  manufacturers  under  present  conditions  on  account  of  the  hieh 
cost  of  the  better  grades  of  tobacco,  the  low  prices  obtained  for  the 
better  grades  of  cigarettes,  and  their  limited  consumption.  A  stand- 
ardization of  this  grade  by  agreement  between  the  various  factories 
has  not  been  brought  about  on  account  of  the  keen  competition  exist- 
ing in  the  industry,  involving  special  discounts  to  the  distributing 
trade  and  a  heavy  advertising  expense. 

Some  method  of  standardization  would  be  very  beneficial,  but  the 
first  step  would  necessarily  be  the  introduction  of  uniformity  in  the 
types  having  14  and  16  cigarettes  per  package,  to  be  sold  at  retail  at 
0.37i  and  0.50  bolivar  ($0,072  and  $0,096)  per  package,  respectively, 
which  would  make  the  wholesale  prices:  Type  of  14  per  package,  16 
bolivars  ($3.09)  per  ring  of  4  dozen  packages;  type  of  16  per  pack- 
age, 20  bolivars  ($3.86)  per  ring  of  4  dozen  packages. 

A  plan  that  would  involve  control  of  the  raw  material  has  been 
suggested  to  the  cigarette  manufacturers  of  the  country.  A  contract 
is  proposed  between  the  manufacturers  and  the  capitalists  interested 
in  the  business. 

Tobacco  production  in  Venezuela  varies  with  the  conditions  of  the 
season  and  the  demand  for  the  product.  The  following  data  on  pro- 
duction are  approximate  and  are  taken  from  averages  for  the  five 
years  1914  to  1919,  being  valuable  principally  as  showing  the  propor- 
tion of  production  of  each  class  of  leaf  per  district.  (The  tons  given 
are  metric  tons  of  2,205  pounds  each.) 


AGRICULTURE. 


61 


Maturin.—lyOOO  tons  of  "  Principal,"  "  Half -tree,"  and  "  Core  "  in  the  follow- 
ing proportions :  "  Principal,"  20  per  cent ;  "  Half -tree,"  30  per  cent ;  "  Core,"  50 
per  cent. 

Capadare. — 700  tons :  First  quality,  40  per  cent ;  second  quality,  60  per  cent. 

Salon. — 250  tons :  "  Outer  leaf,"  20  per  cent ;  "  Inner  leaf."  30  per  cent ; 
"Core,"  50  per  cent. 

Oolfero.— 700  tons:  "Principal,"  20  per  cent;  "Half-tree,"  30  per'  cent; 
"  Core,"  50  per  cent. 

Guaribe. — 100  tons:  Equal  proportion  of  the  three  classes. 

(7ocoro*e.— 300  tons:  "Principal,"  20  per  cent;  "Half-tree,"  30  per  cent; 
"Core,"  50  per  cent.     ("Cumana"  is  included  in  "Golfero.") 

Guaracho. — ^200  tons  of  one  class  only. 

The  grades  of  lesser  importance,  such  as  "Urachiche"  and 
''  Guanape,"  are  included  in  the  respective  amounts  given  for  Cocorote 
and  Guaribe.  Those  of  Orinoco,  Paya,  and  Tovar  are  not  taken  into 
consideration  on  account  of  the  very  small  production. 

The  total  value  of  tobacco  exported  from  Venezuela  in  1917 
amounted  to  237,000  bolivars  ($45,741)  and  in  1918  to  more  than 
4,000,000  bolivars  (about  $800,000). 

The  total  amount  of  capital  invested  in  tobacco  cultivation  in 
Venezuela  is  estimated  at  10,000,000  bolivars,  or  approximately 
$2,000,000. 

Caracas  market  quotations  for  September  15, 1920,  gave  the  follow- 
ing prices  for  domestic  leaf  (on  the  basis  of  46  kilos=100  pounds) : 

Maturin :  Bolivars  per  100  pounds. 

"  Principal " 185 

"  Seconds  " 120 

"  Sprouts  " 70 

Salon : 

"Capa  Fina"    ("Outer") 280 

For  cigarettes 260 

Second  class 140 

Third  class 110 

Capadare : 

First  grade 240 

Second  grade 120-150 

Guaribe : 

First  grade .._  160 

Second  grade 100-110 

EXPORT  STATISTICS. 

Tobacco  exports  from  Venezuela  amounted  to  126  metric  tons  in 
1917,  valued  at  119,774  bolivars  ($23,116)  while  exports  for  1918  were 
2,751  metric  tons,  valued  at  3,179,903  bolivars  ($613,721),  going  piin- 
cipallj'  to  Cuba  and  France. 

Figures  for  the  year  1919  (the  latest  available  statistics)  show  the 
following  exports  of  tobacco  by  countries  of  destination : 

[Kilo>»  2.2046  pounds;  bolivar-IO.lO^.] 


Ports  of  shipment  and  coun- 
tries of  destination. 

Kilos. 

Bolivars. 

Ports  of  shipment  and  coun- 
tries of  destination. 

Kilos. 

Bolivars. 

FROM  LA  GUAKA. 

t 

Bonaire:  Leaf 

10 
4,436 

361 
489 
338 

25 
2,662 

1,950 
2,450 
1,230 

FROM  LA  GUAiRA— continued. 

France: 

Cigarettes 

4,055 
35,748 

89 
17,744 

Clftnarv  Islands*  Leaf 

19,759 

Ciiracao: 

uifrars 

Leaf 

29,808 

Martinique: 

Clears 

CiiTArAttAS 

1,000 

Leaf 

Cigarettes 

83,832 

62 


VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 


Ports  of  shipment  and  coun- 
tries of  destination. 


FROM  LA  GUAiRA — continued. 

Netherlands:  Leaf 

Spain:  Leaf 

Trinidad: 

Cigarettes 

Leaf 

United  Kingdom:  Leaf 

Total 

FROM  MARACAIBO. 

United  States:  Leaf 

FROM  PUERTO  CABELLO. 

Aruba:  Mangifactured  tobacco 
Bonaire: 

Cigars 

Leaf 

Manufactured,  n.  e.  s 

Curasao: 

Leaf 

Manufactured,  n.  e.  s 

Netherlands:  Leai 

Total 

FROM  CnJDAD  BOUVAR. 

Trinidad: 

Cigarettes 

Manufactured,  n.  e.  s 

-    Total 


Kilos. 


223,496 
10,680 

450 

75 

188,352 


485,611 


Bolivars. 


564^818 
8,544 

2,100 

45 

361,329 


Ports  of  shipment  and  coun- 
tries of  destination. 


1,077,772 


4,592 


9,184 


125 

80 

5 

80 
■  155 

40 

360 

90 

1,722 
90 

18,884 

3,465 

970 

30,803 

21,061 

35,808 

117 
60 

1,350 
1,000 

177 

2,350 

1 

FROM  CARUPANO. 

France:  Leaf 

Netherlands:  Leaf 

Trinidad:  Leaf 

Total 

FROM  CRISTOBAL  COLON. 

Trinidad:  Leaf 

FROM  OTHER  PORTS. 

Various  destinations:  Leaf 

Totals  by  classes: 

Cigars 

Cigarettes 

Leaf 

Manufactured,  n.e.s. 

Qrand  total ;. . 


Kilos. 


82,124 

17,300 

5,521 


Bolivars. 


80,967 


18,238 


409 


455 

22,855 

611, 735 

430 


635,475 


103, 750 
49,557 
10,503 


105,363 


15,059 


991 


2,990 

109,491 

1, 192, 133 

2,140 


1,306,764 


The  manufacture  of  domestic  cigarettes  is  one  of  Venezuela's  most 
important  industries,  and  from  it  the  Government  derives  one  of  its 
principal  sources  of  internal  revenue.  This  tax  yielded,  in  the  year 
1918,  6,430,139  bolivars  ($1,241,017),  which,  with  the  additional  im- 
port duty  of  56,586  bolivars  ($10,921)  on  imported  cigarettes,  gave 
the  Government  a  total  net  revenue  from  this  source  of  6,486,726 
bolivars  ($1,496,787) .  The  tax  is  1  centimo  (1  bolivar=zlOO  centimos) 
on  every  cigarette — collected  by  means  of  the  stamped  paper  that  is 
furnished  to  the  manufacturers  by  the  Government. 


LOCAL  CIGARETTE  FACTORIES. 


There  are  13  cigarette  factories  in  Caracas  which  are  operated  by 
private  capital  under  the  supervision  of  the  Ministry  of  Finance. 
Two  of  these  factories  are  very  large  and  modern  in  every  respect. 
La  Industrial  Cigarrera  has  a  capital  of  1,000,000  bolivars  and  was 
established  in  1917,  the  management  being  Italian.  The  other  large 
factory  is  that  of  the  Union  Fabril  Cigarrera,  with  a  capital  of 
3,125,000  bolivars  ($603,125)  and  was  established  in  1911.  The  prin- 
cipal stockholders  are  Venezuelans  and  Germans  long  resident  in  the 
country.  The  Union  Fabril  Cigarrera's  bonds  are  quoted  at  40  per 
cent  and  the  stock  at  3  bolivars  ($0.58)  per  share.  The  Industrial 
Cigarrera  stock  is  quoted  at  25  bolivars  ($4.82). 

There  is  very  keen  competition  betwen  the  domestic  tobacco  manu- 
facturers, and  considerable  sums  are  being  spent  in  advertising  and 
propaganda  work.    Many  different  brands  are  being  put  out  by  each 


AGRICULTURE.  63 

factory,  and  the  importation  of  paper  for  the  fancy  packages  makes 
a  rather  large  item. 

The  market  has  reached  the  stage  of  absolute  saturation  at  home, 
and,  unless  means  can  be  found  to  export  this  manufactured  product, 
no  great  development  can  be  looked  for  without  an  increase  in  the 
number  of  native  consumers.  The  lack  of  population  also  holds  back 
the  production  for  export,  which  could  be  made  a  very  considerable 
source  of  wealth  for  the  country  if  labor  were  more  plentiful,  as  soil 
and  climate  conditions  are  ideal  in  several  regions  of  the  country,  and 
there  can  be  no  doubt  that,  with  better  and  more  scientific  methods, 
the  very  best  grades  of  leaf  tobacco  could  be  produced  for  export  in 
many  places  in  Venezuela. 

VENEZUELAN  MARKET  FOR  AMERICAN  CIGARETTES. 

In  the  spring  of  1919  the  following  report  was  forwarded  from 
Caracas  by  American  Minister  Preston  McGoodwin  and  was  pub- 
lished in  Commerce  Reports : 

Amorican-made  cigarettes  have  become  popular  In  Caracas  and  elsewhere 
in  Venezuela.  This  demand,  which  is  now  noticeable  to  the  most  casual 
observer,  was  brought  about  regardless  of  the  fact  that  there  has  been  no 
advertising  or  other  formal  campaign,  and  also  despite  the  exceedingly  high  price 
charged  for  these  products.  Not  a  dollar  has  been  expended  for  advertising, 
either  by  local  dealers  or  through  advertising  agencies  in  the  United  States. 
As  to  the  prices,  which  are  fixed  arbitrarily,  as  on  all  other  articles,  whether 
imported  or  of  native  manufacture,  a  package  which  retails  in  the  United 
States  fol"  15  cents  sells  in  Venezuela  for  45  cents;  those  that  are  standard  at 
25  cents  retail  in  Caracas  for  60  to  75  cents. 

Nearly  every  man,  woman,  and  child  in  Venezuela  over  9  years  of  age  smokes 
cigarettes,  yet  Americans  have  never  cultivated  this  trade,  and  American 
cigarettes  were  not  introduced  until  about  1917;  then  they  were  stocked  by 
retailers  in  small  and  insufficient  quantities.  Egyptian  and  other  British- 
made  cigarettes  were  not  introduced  untU  July,  1918,  and  during  the  latter 
part  of  that  year  English  companies  began  making  an  effort  to  cater  to  the 
trade.  In  the  opinion  of  three  Caracas  dealers  with  whom  the  subject  has 
been  discussed,  a  slight  effort  upon  the  part  of  American  manufacturers 
through  the  American  import  and  export  and  commission  firms  recently  organ- 
ized in  Venezuela — as,  for  example,  W.  R.  Grace  &  Co.,  G.  Amsinck  &  Co., 
Gaston,  Williams  &  Wigmore,  and  the  American  Trading  Co. — especially  if 
accompanied  by  an  advertising  campaign,  would  result  favorably.  These 
informants  pointed  out  that  the  demand  his  already  been  created  in  Venezuela 
for  the  blended  cigarettes  which  contain  a  portion  of  Egyptian  tobacco  and  are 
of  moderate  price.  The  cheaper  grades  of  American  cigarettes,  made  almost  if 
not  entirely  of  Virginia,  Carolina,  or  Kentucky  tobaccos,  are  said  to  be  too 
strong. 

It  is  very  necessary  that  American  cigarettes  should  be  packed  in  tins. 
Dealers  unanimously  and  vigorously  assert  that  they  are  compelled  to  keep 
small  stocks  and  charge  what  they  frankly  admit  are  exorbitant  prices  because 
American  cigarettes  are  packed  only  in  fragile  pasteboard  boxes — even  con- 
tainers for  50  and  100  are  pasteboard — and  they  mildew  within  a  month  after 
arrival.  To  my  personal  knowledge  repeated  efforts  have  been  made  by  mer- 
chants in  the  Tropics  to  induce  American  cigarette  manufacturers  to  follow 
the  example  of  English,  Spanish,  and  Dutch  makers.  In  this  connection  I 
bought  on  the  same  day  two  containers  of  American  and  English  cigarettes, 
of  50  each,  both  popular  brands.  The  American  cigarettes  were  in  a  very 
handsome  and  expensive  cushioned  paper  box,  lined  with  silver  paper.  The 
dealer  informed  me  that  these  cigarettes  were  received  three  weeks  before, 
and,  because  of  the  exposure  to  the  sea  and  the  humidity  of  the  Tropics,  they 
w^ere  already  moldy  and  slightly  discolored.  On  the  other  hand,  the  English 
cigarettes  were  in  a  tin  box,  and  I  found  that  of  11  brands  of  English  cigarettes 
now  on  sale  in  Caracas  all  are  in  tin  containers,  securely  sealed,  and  with  small 
patent  openers  attached.  In  this  manner  they  will,  of  course,  keep  fresh  indefi- 
nitely. 


64        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 


An  American  firm  exporting  tobacco  products  mailed  a  copy  of 
the  above  report  to  its  traveling  salesman,  who  happened  at  the  time 
to  be  in  Porto  Eico.  He  went  immediately  to  Venezuela  and  sold 
one  order  amounting  to  $10,000,  which  represents  a  greater  quantity 
of  cigarettes  than  were  ever  imported  in  any  one  year,  and  other 
orders  aggregating  an  amount  greater  than  the  total  importations 
of  cigarettes  for  the  last  five  years.  As  a  result  of  data  supplied  to 
his  firm  by  this  traveling  salesman  regarding  the  cigarette  industry 
in  Venezuela,  it  is  possible  that  this  commercial  report  ,will  bring 
about  even  more  important  results. 

The  American  cigarette  is  steadily  increasing  in  popularity  in 
Venezuela,  especially  in  Caracas,  where  many  of  the  better  known 
brands  are  now  being  sold.  American  qigarettes  are  now  sold  at 
wholesale  at  Curasao,  Willemstad  being  a  free  port. 

Foreign-made  cigarettes  were  not  common  in  Venezuela  until  1918. 
Imports  of  cigarettes  in  1919  were  as  follows : 

[kllo=2.2046  pounds;  bolivar=  $0,193.] 


Ports  of  entry  and  countries 
of  origin. 


LaGuaira: 

Cuba 

Netherlands 

Spain ^. 

Trinidad 

United  Kingdom 

United  States... 
ICaracaibo: 

United-States. . . 


TCilos. 

Bolivars. 

760 

17,717 

53 

968 

192 

958 

355 

3,156 

38 

893 

336 

4,723 

543 

7,612 

Forts  of  entry  and  countries 
of  origin. 


Puerto  Cabello: 

Cuba 

United  States 

Ciudad  Bolivar: 
United  States 

Total 


Bolivars. 


• 

Import  duty  into  Venezuela  on  foreign-made  cigarettes  and  manu- 
factures of  tobacco  is  placed  at  10  bolivars  ($1.93)  per  kilo  (2.2046 
pounds)  of  gross  weight,  plus  the  internal  stamp  revenue  of  1  centimo 
per  cigarette.  This  duty  is  not  excessive  on  such,  a  product,  and  the 
prices  of  foreign  cigarettes  in  Venezuela  should  be  lower.  Whole- 
salers charge  at  the  rate  of  1.50  bolivars  ($0.29)  per  package  to  the 
local  retailers,  who  charge  2.50  bolivars  ($0.48)  per  package. 

COTTON. 

Cotton  is  a  natural  product  of  Venezuela,  was  first  cultivated  in 
1782,  and  became  important  during  the  Civil  War  in  the  United 
States.  After  that  time  and  up  to  within  the  last  20  years  the  in- 
dustry had  declined  on  account  of  the  low  prices,  and  the  industry  was 
gradually  abandoned.  In  1800  the  exports  of  cotton  were  450  metric 
tons  (1  metric  ton=2,205  pounds)  a  year,  in  1850  300  metric  tons,  and 
in  1888  only  57  metric  tons.  In  1913  Venezuela  exported  267.3  metric 
tons  of  raw   cotton,  valued  at  280,600  bolivars    ($54,156). 

Cotton  grows  in  nearly  all  of  the  warm  regions  of  Venezuela,  but 
the  best  results  have  been  obtained  in  the  otates  of  Garabobo  and 
Aragua,  which  to-day  produce  54  per  cent  of  the  entire  yield  of  the 
country.  Sufficient  cotton  has  been  produced  in  Venezuela,  since  and 
during  the  war,  to  supply  the  domestic  mills,  while  prior  to  that  time 
quantities  had  to  be  imported  from  the  United  otates  despite  the 
import  duty  of  3,43  cents  per  pound  on  raw  cotton.    On  account  of  the 


AGRICULTURE.  65 

lack  of  sufficient  labor  there  is  little  likelihood  that  cotton  will  become 
an  important  item  of  export  from  Venezuela.  In  1912-13  the  port  of 
La  Guaira  exported  some  200  bales,  of  which  about  half  went  to 
Germany. 

In  1916  cotton  received  considerable  attention  in  the  Maracaibo 
Basin  and  the  Andean  State  of  Tachira,  where  an  excellent  grade  of 
strong  white  cotton  was  produced^  giving  30  per  cent  of  clean  fiber. 
The  yield  near  Maracaibo  was  estimated  at  40,000  quintals  (1  quin- 
tal=100  poimds)  for  1916,  the  first  planting  having  taken  place  five 
years  previously.  That  same  year  the  Caribbean  State  of  Sucre  took 
measures  to  increase  the  cotton  production  of  the  suitable  lands  along 
the  shore  of  the  Gulf  of  Cariaco;  seed  was  distributed  and  every 
means  used  to  increase  production  for  the  domestic  market. 

The  Venezuelan  staple  is  long  and  silky  and  about  1^  inches  long. 
The  seed  is  sown  at  the  same  time  as  corn  and  beans,  during  the  month 
of  July,  and  the  cotton  is  picked  at  the  end  of  November  or  the  be- 
ginning of  December,  according  to  the  season  and  rainfall.  The  corn 
or  beans  are  planted  between  the  rows  of  cotton,  and  in  many  cases 
these  crops  pay  for  the  expenses  of  cultivating  and  harvesting,  or,  at 
least^  planting  and  cultivation.  Picking  often  continues  until  the  end 
of  March. 

In  1918  the  States  of  Zulia,  Trujillo,  and  Merida  (the  Maracaibo 
Basin)  produced  between  2,500  and  3,000  bales  of  600  pounds  each, 
principally  near  Maracaibo,  where,  on  account  of  climatic  and  labor 
conditions,  it  is  impossible  to  increase  production  to  any  great  ex- 
tent. In  the  city  of  Maracaibo  there  are  three  small  gins,  namely, 
those  of  Cosino.Hermanos  ("La  Mota"),  Angel  Ma.  Quintero  ("La 
Paulina"),  and  Julio  A.  Afiez  y  Cia.  ("  La  San  Antonio"). 

During  the  war  high  prices  greatly  stimulated  cotton  production, 
and  this  was  also  aided  by  the  Government,  which  distributed  cotton 
seed.  Incomplete  figures  of  production  are :  Valencia  district — 1908, 
254  metric  tons;  1912,  3,002  tons;  1915,  1,130  tons;  1916,  1,223  tons; 
1917,  1,931  tons.  Portuguesa  district— 1916,  605  metric  tons;  1917, 
1,944  tons.  These  figures  do  not  represent  the  entire  production  and 
are  for  seed  cotton.  Locusts  are  disastrous  at  times  and  are  respon- 
sible for  the  drop  in  production  in  the  Aragua  and  Carabobo  regions, 
indicated  in  the  1912-1915  reports.  The  climate  and  the  soil  is  better 
suited  to  growing  the  upland  varieties  than  sea-island  or  Egyptian. 

In  1919  a  careful  survey  of  cotton  growing  in  Venezuela  showed 
an  approximate  total  yield  of  7,000  metric  tons  in  the  seed.  Two  and 
three-fourths  quintals  of  raw  cotton  are  required  to  obtain  100 
pounds  of  clean  fiber.  This  represents  an  average  of  28.5  per  cent 
of  the  cotton  in  the  seed,  making  the  production  of  clean  cotton  equal 
to  1,995  metric  tons. 

This  cotton  is  produced  in  the  following  regions:  States  of 
Aragua  and  Carabobo,  1,077,300  kilos,  or  54  per  cent;  States  of  Lara 
and  Portuguesa,  279,300  kilos,  or  14  per  cent;  State  of  Zulia  (Mara- 
caibo), 359,100  kilos,  or  18  per  cent;  eastern  States,  279,300  kilos,  or 
14  per  cent;  total,  1,995,000  kilos. 

The  prices  paid  for  domestic  cotton  have  fluctuated  during^  the  10 
years  1910  to  1920  between  70  and  150  bolivars  ($13.50  and  $29)  per 
100  pounds.    The  high  figure  of  150  bolivars  was  paid  during  the  last 

79747^—22 6 


66 


VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 


half  of  1919  as  a  result  of  the  high  price  of  cotton  in  the  United 
States.  The  total  production  of  1919 — 1,996,000  kilos  of  clean  cot- 
ton— was  sold  at  the  high  rate  (average)  of  3.25  bolivars  per  kilo,  or 
$0,285  per  pound,  the  total  value  being  6,483,750  bolivars  ($1,296,750) , 
making  this  product  rank  next  to  coffee  and  cacao  in  importance  for 
the  country.  Venezuelan  cotton  is  classified  as  No.  2 ;  Egyptian  cot- 
ton is  classified  as  No.  1.  The  cotton  produced  in  the  country  is  of 
very  fine  grade  of  fiber,  but,  on  account  of  the  lack  of  care  in  picking 
and  handling,  a  uniform  length  is  not  obtained  and  it  is  therefore 
given  a  lower  grade  than  the  medium  grades  from  the  United  States, 
being  worth  on  an  average  only  28.5  cents  per  pound  when  cotton  in 
the  United  States  sold  for  34  to  38  cents  per  pound.  The  State  of 
Zulia  (Maracaibo  region)  produces  the  best  grades  of  fiber  in  Vene- 
zuela, but,  on  account  of  the  rough  and  unfinished  kind  of  cloth 
made  by  the  domestic  mills  and  the  inability  to  classify  the  fibers 
properly,  this  advantage  is  lost. 

Seed  is  generally  replanted  every  year.  The  entire  investment  in 
cotton  planting  in  Venezuela  is  estimated  to  be  about  1,000,000  boli- 
vars, or  nearly  $200,000  United  States  currency.  Plows  and  culti- 
vators are  now  being  used  by  nearly  all  of  the  larger  cotton  planters 
in  the  Valencia  district,  and  the  steady  increases  in  the  purchases  of 
gas  tractors  will  be  a  powerful  factor  in  increasing  the  annual  pro- 
duction of  the  country. 

The  following  are  the  most  recent  figures  on  cotton  production  in 
Venezuela  from  official  sources,  covering  the  year  1920 : 


states.  Kilos. 

Anzoategui 50, 000 

Aragua 1,044, 432 

Carabobo 2, 453, 200 

Cojedes 9, 800 

Falcon 627, 000 

Guarlco . 198, 000 

Lara 125, 000 


States.  Kilos. 

Miranda 35, 000 

Monagas 30,  000 

Sucre - 230, 000 

Trujillo 600 

Yaracuy 460, 000 

Portuguesa 50, 000 

Zulia 1, 840, 000 


As  a  result  of  the  conditions  brought  about  by  the  war,  Venezuela 
is  now  an  exporter  of  fats;  domestic  cottonseed-oil  factories  have 
been  started,  and  the  product  competes  with  the  cottonseed-oil  articles 
imported  from  the  United  States  and  also  with  Italian  and  Spanish 
olive  oils.  In  1920  experimental  shipments  of  refined  cottonseed-oil 
products  were  made  to  Porto  Rico,  but  it  was  !found  that  the  Vene- 
zuelan product  could  not  compete  with  the  refined  products  of  simi- 
lar character  from  the  United  States.  Also,  there  remained  in  the 
country  a  surplus  of  refined  oil  from  the  preceding  year  (1919),  the 
domestic  consumption  not  being  sufficient  to  utilize  all  of  the  do- 
mestic product,  of  which  the  greater  amount  is  used  in  soap  making. 

There  is  one  cottonseed  oil  mill  in  Cumana,  one  in  Caracas,  four  in 
Valencia,  and  two  in  Puerto  Cabello,  the  total  average  annual  pro- 
duction of  pressed  and  refined  oil  being  given  as  2,00.0,000  kilos  (1 
kilo=2.2046  pounds). 

(For  details  concerning  the  cotton  factories  and  oilseed  mills, 
the  reader  is  referred  to  the  several  district  reports  beginning  on 
p.  118.) 

Imports  of  cottonseed  oil  into  Venezuela  have  always  been  small, 
amounting  to  $1,647  in  1912,  of  which  the  United  States  shipped  by 
far  the  largest  amount,  with  Germany  the  only  other  competitor. 


AGBICULTUEB. 


67 


Imports  of  olive  oil  totaled  more  than  $200,000  per  year  before  the 
war  and  the  development  of  Venezuelan  refining  of  cottonseed  prod- 
ucts. In  1912  Venezuela  took  olive  oil  to  a  total  value  of  $208,646,  of 
which  Italv  furnished  $62,502  worth,  Spain  $109,307,  arid  France 
$9,761,  with  Germaiiy,  the  United  States,  and  the  Netherlands  fur- 
nishing small  amounts  to  make  up  the  total.  In  1916  olive-oil  imports 
were  valued  at  $191,784,  with  Spain  leading;  and  in  1918  the  amount 
was  only  $87,931,  with  Spain  still  leading.  In  1919  the  value  was 
$109,710.  The  reduction  m  imports  of  this  article  was  due  to  war 
conditions  and  also  to  the  supplanting  of  the  imported  article  by  the 
domestic  refined  cottonseed  product.  By  the  end  of  1920  only  the 
finer  grades  of  olive  oil  were  being  imported,  put  up  in  bottles  and 
small  tins. 

SUGAR. 

Venezuela's  exports  of  sugar  (including  "papelon")  for  the  years 
1917,  1918,  and  1919,  according  to  Venezuelan  figures,  are  shown  in 
the  following  table : 

[Metric  ton»  2,205  pounds;  bolivar»  $0,193.] 


Countries  of  destination. 


Total  exports 

Curasao 

Netherlands.. 

Spain 

United  States 


1917 


Metric  tons. 


15,370 


Bolivars. 


6,685,109 


9,235 

23 

161 

5,940 


4,157,283 
11,810 
86,626 

2,411,129 


1918 


Metric  tons. 


U,996 


8,527 

55 

1 

6,275 


Bolivars. 


5,481,140 


3,292,880 

23,455 

644 

1,741,904 


1919 


Metric  tons. 


17,383 


5,586 

117 

87 

8,297 


Bolivara. 


7,848,372 


2,673,438 
46,864 
85,615 

3,432,073 


Note.— Shipments  to  Cura^^ao  come  from  Maracalbo.  the  lai^est  sugar-producing  region  of  the  country 
and  are  intended  for  ultimate  transshipment  to  the  United  States.  The  above  table  does  not  show  heavy 
shipments  of  brown  sugar  ("papelOn")  that  were  made,  during  the  years  given,  to  the  United  Kingdom. 

The  following  table  shows  the  imports  of  cane  sugar  to  the  United 
States  from  Venezuela  during  the  calendar  years  1918,  1919,  and 
1920,  according  to  official  American  statistics : 


Years. 


1918 
1919 
1920 


Pounds. 


16,511,375 

12,351,618 

8,827,667 


Value. 


1746,485 

666,585 
1,176,844 


(For  details  of  sugar  production,  the  reader  should  consult  the 
chapters  on  the  several  commercial  districts,  beginning  on  page  118.) 


RICE. 


After  corn,  rice  is  the  great  food  staple  of  the  people  of  the 
country,  as  in  other  tropical  lands  of  Latin  America.  From  1913 
to  1919  Venezuela  has  imported  an  average  annual  amount  of  rice 
estimated  at  5,985,123  kilos  (1  kilo=2.2046  pounds).    In  1918  and 


68        VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

1^19  imports  of  rice  into  the  country  decreased  on  account  of  the 
inability  of  the  sources  of  supply  to  take  care  of  the  world's  demand 
and  also  on  account  of  the  increasing  domestic  production  in  the 
country  itself.  Prices  for  rice  in  Venezuela  had  tripled  since  the 
outbreak  of  the  war.  It  was  worth,  on  an  average,  0.29  bolivar 
($0,056)  per  kilo  in  1913,  and  had  increased  to  0.87  bolivar  ($0,168) 
in  1919.  The  imports  in  1913  cost  the  country  1,719,884  bolivars 
($331,841)  and  in  1919,  2,295,649  bolivars  ($443,060). 

The  total  production  of  rice  in  Venezuela  for  1920  was  estimated 
at  about  500,000  kilos,  which  represents  approximately  one-sixth  of 
the  domestic  demand,  despite  the  fact  that  there  are  in  Venezuela 
many  localities  and  great  areas  of  land  very  suitable  for  rice  cultiva- 
tion. The  native  rice  is  also  a  better  grade  (in  spite  of  the  crude 
methods  employed  in  its  cultivation  and  preparation  for  market) 
than  the  "  Siam  Usual "  brand  ordinarily  imported.  The  great  dif- 
ficulties of  the  industry  are  the  facts  that  the  rice  areas  are  far  re- 
moved from  the  large  centers  of  consumption  and  that  their  climatic 
conditions  are  bad  and  their  population  sparse.  These  conditions 
permit  importers  at  La  Guaira  (Caracas)  and  Puerto  Cabello,  as 
well  as  Maracaibo,  to  offer  the  imported  article  at  very  advantageous 
prices. 

It  has  been  found  that  the  native  seed  soon  deteriorates  and  that 
the  seed  known  as  "Honduras"  has  given  the  best  results  in  the 
country,  being  of  the  "upland"  variety,  growing  at  elevations  of 
1,000  to  3,000  feet,  and  even  higher,  wherever  there  is  moist  alluvial 
soil.  The  method  of  cultivation  is  very  simple,  and  the  production 
:s  from  100  to  120  for  1,  while  the  common  seed  formerly  used  gives 
only  from  60  to  80  for  1.  There  is  a  demand  for  small  rice-cleaning 
sets  in  the  country,  including  the  small  ovens  for  drying. 

(For  details  of  rice  production,  annual  imports  by  ports,  etc.,  the 
reader  is  referred  to  the  chapters  on  the  several  commercial  districts, 
beginning  on  p.  118.) 

Imports  of  rice  into  Venezuela  for  the  two  pre-war  years  1913  and 
1914,  by  countries  of  shipment,  were  as  follows,  according  to  Vene- 
zuelan figures : 


Total  imports 

United  States 
Great  Britain . 

France 

Germany 

Netherlands .. 


16,281 

9,734 

307 

106,088 

150,986 


63,630 
17,934 
10,856 
86,922 
196,052 


As  a  result  of  the  general  dislocation  of  the  customary  trade  routes 
brought  about  by  the  war,  the  rice  trade  gravitated  to  New  Orleans, 
where  dealers  were  active  in  taking  care  of  the  Latin- American  mar- 
ket for  this  staple,  handling  American  rice  and  also  rice  imported 
from  Asia. 

The  following  table  shows  the  exports  of  rice  from  the  United 
States  to  Venezuela  during  four  recent  years,  according  to  official 
United  States  statistics: 


AGRlCULrDRE. 


Years. 

Pounds. 

Value. 

B,  111,231 

rear 

190:796 

The  falling  off  of  rice  exports  to  Venezuela  from  the  United  States 
during  1918  was  due  to  the  restrictions  of  exports  durinc  this  coun- 
try's participation  in  the  war  and  also  to  the  increased  home  pro- 
duction of  Venezuela. 


The  agricultural  zone  of  Venezuela  covers  approximately  300,000 
square  kilometers  (1  square  kilometer=  0.385  square  mile),  includ- 
ing all  kinds  of  soil  and  variations  in  climate,  according  to  the  loca- 
tion and  elevation.  In  the  fiscal  year  1918  the  country  exported 
52,000,000  bolivars  (more  than  $10,000,000)  worth  of  agricultural 
products,  representing  an  investment  of  more  than  230,0(X1,000  boli- 
vars ($44,400,000). 

A  recent  survey  of  the  agricultural  wealth  of  the  country  by  the 
Bureau  of  Commerce  of  the  Ministry  ai  Foreign  Affairs  showed  the 
following  investment: 

Bollvare. 

Coffee 80, 000, 000 

Cacao 62, 000, 000 

Susar-cane TiT,  000,000  • 

Tobacco 10, 000, 000 

Rubber 10, 000. 000 

Cotton 1,000,000 

Exclusive  of  the  exports  of  the  two  great  staples  of  the  country — 
coffee  and  cacao — Venezuela  has  been  able  during  the  war  to  export 
quantities  of  beans,  com,  and  peas  to  the  United  States,  as  well  as 
to  increase  its  customary  exports  of  grains  to  the  West  Indies,  prin- 
cipally Curasao  and  Bonaire.  This  trade  was,  of  course,  attracted 
by  the  general  shortage  of  food  grains  brought  about  by  war  condi- 
tions, with  the  resulting  high  prices,  and  did  not  always  represent 
an  actual  surplus  over  and  above  domestic  needs  of  the  country,  as, 
on  account  of  these  exports,  the  food  staples  of  the  country — brown 
sugar,  com,  and  beans — ^became  scarce  and  high  in  price,  and  this 
constituted  an  added  burden  on  the  people  of  the  country. 

La  Guaira  shipped  1,774,597  pounds  of  beans  to  the  United  States 
in  1917,  valued  at  $68,690.  For  the  same  year,  corn  shipments  from 
all  ports  to  the  United  States  totaled  19,850,647  pounds,  valued  at 
$490,855 ;  and  during  1918  Venezuela  sent  5,535,510  pounds  of  corn 
to  the  United  States,  valued  at  $143,025.  The  country's  total  exports 
of  com  in  1917  were  13,595  metric  tons,  valued  at  2,859,176  bolivars 
($551,821),  and  in  1918  a  total  of  15,905  tons  were  exported,  valued 
at  3,987,698  bolivars  ($769,626).  In  1918  Curasao  received  6,408 
tons,  Trinidad  4^277  tons,  the  United  States  2,568  tons,  and  Cuba 
1,146  tons.  During  1918  exports  of  beans  and  peas  totaled  746  tons, 
valued  at  334,133  bolivars   ($64,488),  of  which  the  United  States 


70        VENEZUELA :  A  CX)MMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

received  12,502  bushels  of  beans,  valued  at  $31,012,  and  4,794  bushels 
of  peas,  valued  at  $14,691.  In  1917  shipments  of  beans  and  peas  to 
the  United  States  had  been  even  greater,  totaling  20,052  bushels, 
valued  at  $48,446. 

The  condition  at  the  time  of  the  1920  fall  harvest  was  that,  with 
the  exception  of  the  usual  demand  from  the  West  Indies  (principally 
Curasao ),  the  foreign  market  for  the  surplus  production  of  corn 
and  beans  had  ceased  with  the  return  to  normal  conditions  follow- 
ing the  war.  Corn  and  beans,  and  even  sugar,  could  no  longer  be 
exported  to  the  United  States  and  compete  with  domestic  prices  in 
this  country.  However,  the  lack  of  ram  in  the  eastern  part  of  the 
country  had  caused  a  partial  crop  failure  in  that  section,  and  the 
large  surplus  of  the  largest  producing  center  of  the  Valencia  dis- 
trict had  a  prospective  outlet  by  coastwise  shipment  to  Barcelona, 
Cumana,  and  Carupano.  All  over  the  country  domestic  prices  on 
all  staple  food  products  were  being  materially  reduced. 

LAND  LAWS  OF  VENEZUELA. 

Venezuela  has  an  area  of  approximately  394,000  square  miles  and 
a  population  of  about  2,800,000  people.  It  is  one  of  the  least  de- 
veloped countries  of  South  America.  The  population  is  increasing 
very  slowly  and  for  all  practical  purposes  may  be  considered  station- 
ary, as  the  increase  by  immigration  is  just  about  equaled  by  emigra- 
tion from  the  country,  despite  the  efforts  of  the  Government  to  at- 
tract foreign  immigration  for  the  development  of  the  country's  agri- 
cultural resources. 

According  to  the  land  laws  of  July  4,  1912  (now  in  force,  with 
the  exception  of  certain  amendments  having  to  do  with  more  recent 
legislation  on  petroleum  and  coal  lands,  forest  areas,  etc.),  the  public 
lands  of  the  Republic  belong  to  the  States  and  Federal  Territories, 
but  their  administration  and  alienation  are  functions  of  the  Federal 
Executive.  P.ublic  lands  may  be  sold,  leased,  granted  gratuitously, 
or  conceded  to  railway  enterprises,  or  permission  may  be  given  to 
exploit  them  for  their  natural  products — except  forest  lands,  whose 
conservation  may  be  deemed  convenient  or  desirable  by  reason  of 
public  utility ;  those  destined  for  municipal  commons  (parks) ;  lands 
set  aside  for  colonization  by  foreign  immigrants,  or  tor  the  use  of 
the  uncivilized  natives  (Indians) ;  and  those  within  certain  distances 
of  the  sea,  of  lakes,  of  rivers,  and  of  salt  springs  or  deposits. 

Any  Venezuelan  or  foreigner,  in  the  enjoyment  of  his  civil  rights, 
may  buy  or  lease  public  lands.  Certain  public  officials,  as  well  as 
foreign  Governments,  are  prohibited  from  buying  or  leasing  such 
lands,  nor  can  foreign  Governments  obtain  permission  for  the  ex- 
ploitation of  them  for  the  natural  products,  or  for  railway  purposes. 

The  maximum  area  that  can  be  sold  to  any  one  person  is  as  follows : 
First-class  agricultural  land,  100  hectares  (1  hectare=2.47  acres) ; 
second-class  agricultural  land,  200  hectares ;  first-class  grazing  land, 
2,500  hectares;  second-class  grazing  land,  5,000  hectares.  In  case, 
however,  the  full  amount  granted  has  all  been  cultivated,  an  appli- 
cant can  be  granted  an  additional  amount.  First-class  agricultural 
land  can  not  be  sold  for  less  than  40  bolivars  ($7.72)  per  hectare, 
second-class  agricultural  land,  25  bolivars  ($4.82)  per  hectare;  first- 
class  grazing  land,  2,000  bolivars  ($386)  per  square  league  (2,500 


AGEICULTURE.  71 

hectares) ;  and  second-class  grazing  land  1^00  bolivars  ($232)  per 
square  league. 

In  the  case  of  a  corporation  legally  constituted  in  the  Republic, 
the  President  is  empowered  to  increase  the  amount  of  land  sold  if 
he  deems  it  for  the  best  interests  of  the  nation. 

Anyone  desiring  to  acquire  public  lands  must  make  application  in 
writing  to  the  governor  of  the  State  in  which  the  lands  are  situated, 
who  will  forward  the  application  to  the  land  commissioner  of  the 
district;  and,  if  there  is  no  opposition,  the  survey,  valuation,  and 
classification  of  the  land  is  ordered  by  the  Minister  of  Fomento 
(Development).  When  finally  approved  by  the  Ministry  of  Fo- 
mento, a  deed  is  issued  to  the  interested  party  on  the  payment  of 
the  price,  which  may  be  made  in  bonds  of  the  national  internal  con- 
solidated debt,  or  their  equivalent  in  cash  at  the  current  market 
price.  The  deed  must  then  be  recorded  in  the  register's  office  of  the 
district  in  which  the  lands  are  located.  (The  bonds  of  the  national 
internal  consolidated  public  debt  could  be  purchased  in  1920,  at  the 
time  of  the  writer's  investigation,  at  a  discount  of  about  30  per  cent.) 

The  President  of  the  Eepublic  is  authorized  to  lease  public  lands 
for  a  term  of  15  years,  at  the  rate  of  4  bolivars  ($0.77)  per  hectare 
per  annum  for  first-class  agricultural  land;  1  bolivar  ($0.19)  per 
hectare  for  second-class  agricultural  land;  100  bolivars  per  annum 
for  first-class  grazing  land  per  25  square  kilometers  ($19.30  per 
annum  for  8.65  square  miles) ;  and  75  bolivars  ($14.47)  per  annum 
for  the  same  area  of  second-class  grazing  land. 

The  lessee  must  cultivate  at  least  one-third  of  the  area  leased  dur- 
ing the  first  five  years,  and  must  establish  himself  thereon  not  later 
than  one  year  after  date  of  the  lease.  No  person  can  lease  in  one 
concession  more  than  5,000  hectares,  but  corporations  may  be  allowed 
a  greater  amount. 

Persons  desiring  to  lease  public  lands  must  present  their  appli- 
cations to  the  governor  of  the  State  in  which  such  lands  are  located, 
and  must  pay  the  costs  of  survey  and  other  necessary  expenses. 

Public  lands  may  also  be  granted  gratuitously  to  a  person  already 
occupying  such  lands  as  have  been  cultivated  oy  him  or  bjr  his  an- 
cestors, in  case  such  lands  are  contiguous  to  those  he  occupies. 

Permits  may  be  granted  for  one  year  for  the  exploitation  of  public 
lands  for  the  purpose  of  securing  rubber,  ffums,  fruits,  and  other 
natural  products.  A  license  will  oe  issued  tor  each  1,250  hectares, 
varying  in  cost  from  10  to  300  bolivars  ($1.93  to  $57.90). 

COLONIZATION  CONTRACT  MADE  IN  1920. 

A  contract  has  been  made  between  the  Venezuelan  Government 
and  a  native  of  Germany  for  lands  in  the  State  of  Monagas  totaling 
73,000  hectares  (1  hectare  =  2.47  acres),  of  which  40,000  hectares  are 
destined  for  the  uses  of  a  colony  and  30,000  hectares  are  ceded  to  the 
contractor  for  50  years,  with  an  additional  3,000  acres  for  the  con- 
tractor near  Maturin,  the  chief  town  of  the  region.  The  hills  to  the 
north  are  very  well  suited  to  cacao  and  coffee  cultivation,  while  the 
level  southern  part  is  suitable  for  tobacco,  corn,  cotton,  and  sugar 
cane.  There  are  abundant  natural  grasses  for  cattle  feed.  It  is 
thought  that  this  recent  colonization  concession  is  part  of  a  plan  for 
the  control  of  the  cattle-raising  and  meat-packing  industry  of  Vene- 


72        VENEZUELA :  A  COMMERCIAL  AKD  INDUSTRIAL  HANDBOOK. 

zuela.  There  is  given  below  a  translation  of  the  contract  (copies  of 
the  Venezuelan  law  of  immigration  and  colonization  and  of  th.e 
Venezuelan  land  laws,  to  which  reference  is  made  in  the  contract, 
may  be  examined  upon  application  to  the  Bureau  of  Foreign  and 
Domestic  Commerce,  mentioning  exhibit  No.  43635) : 

Between  the  Minister  of  Fomento  (Development)  of  the  United  States  of 
Venezuela,  sufficiently  authorized  by  the  Federal  Executive,  on  the  one  part, 
and  Mr.  Emil  Zimmerman,  of  legal  age,  a  native  of  Germany  and  resident  of 
Caracas,  in  the  following  known  as  "  the  contractor,"  on  the  other  part,  tlie 
following  contract: 

Abticle  1.  The  Federal  Executive,  by  virtue  of  the  powers  granted  by- 
articles  94  and  98*  of  the  law  of  immigration  and  colonization,  concedes  to 
the  contractor  the  right  to  mark  out  limits,  within  one  year  from  the  date  of 
publication  in  the  Official  Gazette  of  the  law  approving  this  contract,  of  a 
section  or  lot  of  land  of  40,000  hectares  (98,841.6  acres)  of  public  lands 
destined  for  colonization  by  German  immigrants,  which  lot  of  land  shall  be 
selected  within  the  following  zone: 

On  the  north,  a  line  parallel  with  the  boundary  of  the  State  of  Sucre,  distant 
1  kilometer  (0.62  mile)  from  the  boundary  throughout  its  extent;  on  the 
east,  the  boundary  of  the  district  of  Acosta,  continuing  to  the  town  of 
Sabaneta ;  on  the  south,  a  line  starting  from  the  said  town  of  Sabaneta,  running 
to  the  middle  of  the  course  of  the  River  Taguaya,  continuing  thence  toward  the 
east,  passing  through  Guanaguana  and  San  Francisco,  and  from  there  to  the 
division  of  the  waters  south  of  the  Rio  Colorado,  to  a  point  8  kilometers  soutb 
of  the  source  of  the  said  river;  on  the  west,  a  line  starting  from  the  above 
point  and  leading  directly  north  to  within  1  kilometer  of  the  boundary  of  the 
State  of  Sucre. 

Aet.  2.  The  contractor  shall  present  within  two  years  the  plan  that  he 
selects,  drawn  by  an  authorized  engineer  or  land  surveyor. 

Aet.  3.  The  contractor  obligates  himself: 

(a)  To  carry  out  the  subdivision  of  the  tract  at  his  own  expense. 

(&)  To  establish  thereon  at  least  100  German  agricultural  families  within 
two  years. 

(c)  To  donate  to  each  of  the  first  100  families  a  lot  of  25  hectares  (61.77 
acres)  of  land  suitable  for  agriculture  and  10  hectares  (24.71  acres)  more  of 
the  same  class  of  land  for  each  son  over  10  years  of  age,  in  conformity  with 
articles  74,  78,  and  80  of  the  above-mentioned  law. 

To  this  end,  and  also  with  the  object  of  authorizing  him  (the  contractor)  to 
make  sales  referred  to  in  the  following  article,  there  is  considered  as  effected, 
by  virtue  of  this  contract,  the  alienation,  in  favor  of  the  contractor,  of  all  the 
lands  of  the  lot  or  section  contracted  for,  under  the  condition  of  forfeiture 
expressly  stipulated  in  article  7. 

(d)  To  construct,  on  the  land  destined  for  the  purpose,  a  building  embody- 
ing the  conditions  stipulated  in  article  72  of  the  above-mentioned  law  (Ley  de 
ImigraciCn  y  Colonizacidn). 

(e)  To  give  to  each  family  free  lodging  during  one  year. 

(/)  To  proportion  to  the  immigrant  colonists  who  ask  for  them,  as  an 
advance,  agricultural  instruments  and  tools,  draft  and  breed  animals,  seed 
and  maintenance  for  one  year  at  least,  not  charging  for  these  advances  other 
than  the  actual  cost  plus  20  per  cent  and  simple  interest  of  10  per  cent  per  an- 
num on  all  such  sums.  However,  in  no  case  is  the  contractor  obligated  to 
advance  to  any  one  family  more  than  1,(X)0  bolivars  ($193  at  par). 

(g)  Not  to  require  reimbursement  of  these  advances  except  in  five  equal 
annual  payments,  which  shall  begin  at  the  end  of  the  second  year. 

(h)  To  allow  the  intervention  of  the  Colony  Office  in  the  contracts  made 
with  the  colonists,  the  object  being  to  prevent  infraction  of  the  law  on  the 
matter. 

(i)  To  subject  himself  to  the  laws,  decrees,  and  resolutions  relating  to  the 
administration  and  development  of  colonies. 

(k)  To  pay,  on  his  own  account,  all  the  expenses  of  ocean  passage  and 
other  expenses  from  the  port  of  embarkation  to  the  port  of  debarkation  of 
the  immigrants,  including  their  transportation  to  the  colonies,  subject  to  the 
compensation  established  in  articles  8  and  9  of  this  contract;  and,  finally,  to 
respect  the  rights  of  third  parties. 


AGRIOTJLTtTEB.  73 

Aw.  4.  The  sale  of  the  pieces  of  land  not  donated  and  of  hullding  lota 
shall  be  made  by  the  contractor  in  conformity  with  the  law  of  immigration 
and  colonization,  the  proceeds  of  such  sales  being  devoted  to  the  purpose  speci- 
fied in  article  104  of  the  said  law. 

Abt.  5.  Also,  the  contractor  obligates  himself  to  comply  with  article  96  of 
the  law  of  immigration  and  colonization  and,  in  general,  to  comply  with  all 
of  the  dispositions  pertinent  to  this  contract. 

Art.  6.  This  contract  shall  endure  for  10  years,  dating  from  the  publication 
of  the  law  by  which  it  is  approved ;  that  is,  the  said  term  is  conceded  to  the 
contractor  in  order  that  he  may  fulfill  all  the  duties  that  he  hereby  assumes, 
except  where  a  shorter  term  may  be  expressly  stipulated  with  respect  to 
determined  obligations. 

Abt.  7.  Upon  the  expiration  of  the  period  of  10  years  to  which  the  foregoing 
article  refers,  the  coptractor,  if  he  shall  have  complied  with  the  obligations 
which  he  is  assuming,  shall  have  all  the  benefits  enumerated  In  article  101  of 
the  law  of  immigration  and  colonization,  but  the  contractor  shall  lose  in  fact 
and  in  law  the  ownership  of  the  lands  upon  which  the  conditions  outlined  in 
paragraphs  2  and  3  of  article  101,  above  mentioned,  have  not  been  fulfilled, 
and  also  the  title  to  the  lots  sold  or  donated  to  those  colonists  who  have  not 
fulfilled  the  conditions  under  whi^b  these  were  conceded. 

The  Federal  Executive  shall  assume  the  administration  of  the  lands  which, 
by  virtue  of  the  foregoing  dispositions,  return  to  the  category  of  public  lands. 

Abt.  8.  In  compensation  for  the  expenses  assumed  by  the  contractor,  accord- 
ing to  paragraph  k  of  article  3  of  this  contract,  the  Federal  Executive  concedes 
to  him  in  usufruct  for  50  years  a  tract  of  public  lands  of  30,000  hectares 
(74,131.2  acres),  which  he  shall  select  within  the  zone  delineated  as  follows: 

On  the  west,  a  line  starting  from  Sabaneta  and  running  north  to  the  eastern 
boundary  of  the  district  of  Acosta,  and  following  this  boundary  line  to  within  1 
kilometer  of  the  boundary  of  the  State  of  Sucre ;  on  the  north,  the  line  parallel 
with  the  boundary  of  the  State  of  Sucre  (distant  1  kilometer)  to  the  Cano 
(Slough)  San  Juan;  on  the  east  and  south,  the  Cano  San  Juan  to  the  mouth 
of  the  Rio  Asagua,  following  this  river  to  its  source  and  from  there  to 
Sabaneta. 

Moreover,  the  contractor  shall  receive  in  usufruct  for  50  years  a  tract  of 
3,000  hectares  (7,413.12  acres)  of  lands  around  or  near  the  so-called  Laguna 
Grande  to  the  east  of  Maturin,  capital  of  the  State  of  Monagas. 

The   contractor  shall  present  to  the  Minister  of  Fomento  the  respective 
topographical  map  of  these  two  lots  witiiin  the  same  period  indicated  in  article  * 
2  of  this  contract. 

Abt.  9.  At  the  termination  of  the  period  of  50  years  above  mentioned,  the 
contractor  shall  be  the  proprietor  (owner)  of  all  the  lands  conceded  according 
to  article  8  of  this  contract  that  are  planted  with  major  crops  or  trees  of 
fine  woods. 

Abt.  10.  The  exploitation  of  the  natural  products  of  the  lands  referred  to 
in  this  contract  shall  be  governed  by  the  legal  regulations  applicable  to  lands 
that  are  private  property,  and,  in  consequence,  the  Federal  Executive  can  not 
contract  with  any  third  party  for  their  exploitation. 

Abt.  11.  This  present  contract  shall  be  submitted  for  approbation  of  the 
National  Congress  in  the  next  sessions,  so  far  as  concerns  the  agreement  for 
alienation  of  public  lands,  but  if  the  contractor  should  immediately  bring 
in  immigrants,  these  and  the  contractor  shall  enjoy  the  rights  that  chapter  4 
of  the  law  of  public  lands  (Ley  de  Tierras  Baldias  y  Ejidos)  grants  to  the 
occupants. 

Abt.  12.  As  the  Federal  Executive  does  not  advance  any  sum  to  the  con- 
tractor, by  reason  of  this  contract,  he  is  exempt  from  the  bond  (surety  deposit) 
referred  to  in  paragraph  10  of  article  94  of  the  law  of  immigration  and  coloni- 
zation. 

Abt.  13.  This  contract  may  be  transferred,  but  not  without  previous  per- 
mission of  the  Federal  Executive ;  if  it  be  acquired  by  a  foreign  company,  such 
company  must  establish  in  Venezuela  its  legal  residence. 

Abt.  14.  All  debts  and  controversies  of  any  nature  whatsoever  which  may 
arise  from  this  contract  and  which  can  not  be  amicably  settled  by  the  contract- 
ing parties  shall  be  decided  by  the  competent  courts  of  Venezuela  in  conformity 
with  its  laws,  without  recourse,  from  any  motive  whatsoever,  to  foreign  diplo* 
matlc  intervention. 


74        VEKEZUEIA :  A  COMMERCIAL  AND  INDtTSTRlAL  HANDBOOK. 

Two  copies  are  made  of  this  contract,  both  of  the  same  tenor  and  effect. 
In  Caracas,  the  thirtieth  day  of  September,  one  thousand  nine  hundred  and 
twenty,  111th  year  of  independence,  and  62nd  year  of  the  Federation. 

G.  Torres, 
Minister  of  Fomento, 
Emil  Zimmerman. 

The  foregoing  contract  may  be  regarded  as  an  example  of  the 
conditions  under  which  the  Venezuelan  Government  will  grant  lands 
for  foreign  colonization  projects. 

REGIONS  SUITABLE  FOR  DEVELOPMENT. 

In  considering  the  problem  of  land  colonization  in  Venezuela,  it 
should  be  borne  in  mind  that  the  country  lies  whoUj^  within  the 
Tropic  Zone  and  that  conditions  are  those  of  the  Tropics,  with  the 
exception  of  the  higher  elevations  of  the  Andean  region,  at  present 
only  accessible  by  way  of  Maracaibo  at  an  enormous  freight  cost. 
Climatic  conditions  like  those  of  Central  Europe  and  the  Middle 
West  of  the  United  States  can  only  be  found  at  elevations  of  6,000 
to  7,000  feet  above  sea  level,  and  this  means  practical  inaccessibility 
so  far  as  development  on  a  large  scale  is  concerned. 

The  good  agricultural  and  grazing  lands  of  the  Valencia  district, 
the  most  highly  developed  region  of  the  country,  were  all  taken  up 
long  ago,  and  the  same  is  true  of  the  more  immediately  accessible 
lands  elsewhere  within  easy  distance  of  seaports  or  railways  giving 
access  to  market  centers.  Any  agricultural  development  scheme  car- 
ried out  on  public  lands  would  necessarily  have  to  include  the  pro- 
vision of  transportation  means  for  the  new  colony. 

Large  areas  of  good  lands  open  for  colonization  can  still  be  had 
along  the  eastern  slopes  of  the  Andes  in  the  States  of  Portuguesa 
and  Zamora,  where,  m  the  regions  of  Guanare  and  Barinas,  large 
areas  of  good  lands  can  be  found  at  elevations  of  3,000  to  4,500  feet 
above  sea  level.  The  distance  overland  to  market  or  to  the  coast  is, 
however,  too  great  at  present,  and  a  railway  is  needed  for  the  proper 
development  of  this  region. 

Another  region  where  open,  level  stretches  of  good  lands  are  found 
is  that  along  the  southern  bank  of  the  Orinoco  west  of  the  Caroni 
Eiver  and  as  far  as  the  Paragua  River.  This  area  is  about  1,000 
feet  in  average  elevation,  well  drained  and  watered,  and  conditions 
are  suitable  lor  semitropical  agriculture. 

The  region  covered  by  the  recent  concession  to  the  proposed  Ger- 
man colony  in  the  State  of  Monagas  is,  perhaps,  the  best  left  in  the 
country,  as  easy  access  is  afforded  by  means  of  the  Cano  San  Juan 
from  the  Golfo  Triste. 

The  Government  of  Venezuela  is  very  well  disposed  toward  coloni- 
zation plans  by  foreigners,  and  very  favorable  terms  may  be  ex- 
pected by  responsible  parties  planning  such  development  on  a  large 
scale,  though  provision  does  not  seem  to  be  adequate  to  the  needs  of . 
individuals  or  small  groups  of  colonists.  Recent  immigration  has 
been  taken  care  of  on  the  estates  of  the  large  landowners  of  the 
Maracay  and  Valencia  districts.  A  favorable  attitude  toward  colo- 
nization by  foreigners  is  also  recorded  on  the  part  of  the  govern- 
ments of  the  more  undeveloped  States  and  Territories,  and  also 
of  the  merchants  in  the  tradmg  centers. 


AGEIOULTTJltE.  75 

REGULATIONS  GOVERNING  CONCESSIONS  FOR  LUMBERING. 

The  first  regulations  governing  the  granting  of  timberland  con- 
cessions in  Venezuela  were  published  in  the  ©arly  part  of  1920,  the 
decree  providing  the  following  conditions:  (1)  The  zone  in  which 
lumbering  is  cbntracted  for  shall  not  exceed  10,000  hectares  (1  hec- 
tare=2.47  acres).  (2)  Concessionaires,  before  signing  the  contract, 
shall  deposit  in  the  Bank  of  Venezuela  as  a  guaranty  of  compliance 
with  the  provisions  of  the  contract  the  sum  of  500  bolivars  ($96)  in 
currency,  or  its  equivalent  in  bonds  of  the  internal  national  con- 
solidated debt  of  3  per  cent.  (3)  The  concessionaires  shall  contract 
to  carry  on  the  exploitation  in  such  a  way  that  the  taxes  which  they 
must  pay  to  the  National  Treasury  shall  not  be  less  than  1,200  boli- 
vars ($232)  per  year,  which  they  must  pay  in  any  event  (that  is, 
the  minimum  rate  of  payment  is  the  amount  of  1,200  bolivars  per 
annum  to  the  Government).  (4)  No  more  than  one  contract  can  be 
entered  into  with  any  single  person  or  company — a  provision  which 
shall  govern  also  for  the  purposes  of  the  assignment  of  such  contract. 

LAW  ON  FORESTS  AND  WATERS. 

The  old  law  of  1915  was  amended  and  enlarged  by  the  new  law  of 
July  15.  1919  (Nos.  61  and  110).  The  conservation  and  protection 
of  the  forests,  rivers,  streams,  and  springs  were  declared  of  public 
utility  and  were  made  subject  to  the  new  law  under  the  administra- 
tion of  the  Bureau  of  Public  Lands,  Industries,  and  Commerce  of  the 
Ministry  of  Fomento  (Development).  Forests  and  springs  on  pri- 
vate lands  also  were  put  under  the  provisions  of  the  new  law  so  far 
as  provisions  for  their  conservation  were  concerned.  Eiver  water 
for  irrigation  or  other  purposes  was  made  subject  to  the  old  disposi- 
tions of  |he  Civil  Code.  Under  this  law  come  all  contracts  for  the 
exploitation  of  forest  products  such  as  chicle,  rubber,  balata,  balsam 
of  copaiba,  etc. 

GOVERNMENT  AIDS  TO  AGRICULTURE. 

Twenty  per  cent  of  the  people  of  Venezuela  are  engaged  in  agri- 
cultural work.  This  proportion  is  not  sufficient  for  an  extensive 
development  of  the  country's  resources.  A  larger  population  is  neces- 
sary, together  with  the  introduction  of  more  modem  methods  and 
a  more  general  application  of  modern  agricultural  machinery. 

A  Central  Board  of  Industrial  Improvement  existed  for  some 
years  in  Venezuela,  and  more  than  20  years  ago  agricultural  clubs 
were  organized  in  the  principal  cities  of  the  country  through  its 
efforts.  This  board  recommended  the  establishment  of  agricultural 
colonies  and  the  provision  of  an  agronomic  station  bjr  the  Govern- 
ment. Fourteen  years  ago  there  existed  the  Agrarian  Institute, 
which  started  an  agricultural  museum  and  the  School  of  Agriculture. 
The  Agronomic  Station  published  a  guide  to  the  industries  of  the 
country  in  1913.  Legislation  of  March  12,  1917,  created  the  new 
Agriciiltural  and  Forest  Experimental  Station  near  Caracas,  and  an 
American  expert  (Prof.  H.  Pittier,  of  the  United  States  Department 
of  Agriculture)  was  put  in  charge  until  1920,  the  station  now  being 
under  the  direction  of  a  Venezuelan. 

Fourteen  years  ago  a  new  law  created  the  City  Mortgage  and 
Rural  Credit  Bank,  which  was  authorized  to  make  loans  on  city 


76        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

and  country  real  estate  at  7  per  cent  annual  interest,  with  the  terms 
of  repayment  fixed  at  10  to  60  years.  On  rural  property  this  bank 
could  lend  up  to  one-third  of  the  appraised  value,  and  loans  were 
repayable  by  deposits  on  account  from  50  bolivars  ($9.65)  upward, 
such  payments  earning  4  per  cent  annually.  The  capital  of  this 
bank  was  fixed  at  25,000,000  bolivars  (approximately^  $5,000,000), 
and  the  bank  could  issue  mortgage  bonds  for  a  sum  equivalent  to  the 
value  of  the  loans  made.  Although  provision  was  made  for  offering 
the  bonds  in  small  denominations  to  the  public,  the  plan  was  never 
taken  up,  for  various  reasons.  Most  of  the  people  are  too  poor  to 
invest  in  such  securities,  and  there  is  not  sufficient  capital  in  the 
country,  under  present  conditions,  to  take  care  of  the  crop  move- 
ment and  commerce.  Since  the  time  mentioned,  a  new  plan  modeled 
after  the  Federal  farm  loan  act  of  the  United  States  has  been  advo- 
cated in  Venezuela,  but  so  far  without  result. 

FIBER  RESOURCES. 

Plants  of  the  agave  family  grow  wild  in  many  parts  of  Venezuela, 
more  particularly  in  the  semiarid  regions  of  Barquisimeto  and  Core 
(that  is,  throughout  the  so-called  Segovia  Highlands),  where  there 
are  enormous  areas  of  land  suitable  for  the  cultivation  of  sisal, 
henequen,  and  similar  species  of  fiber  j)lants.  There  is  a  small, 
native  household  industry  in  the  production  of  "  cocuiza  "  fiber  (a 
species  of  agave),  from  which  cordage,  hammocks,  and  bags  are 
made. 

The  F&brica  Nacional  de  Fibras  y  Cordeles  (National  Fiber  and 
Cordage  Factory),  of  Caracas,  for  several  years  held  a  contract  with 
the  Government  by  which,  in  return  for  the  admission  duty  free  of 
sisal  fiber,  the  company  was  obligated  to  import  sisal  plants  and  to 
instruct  agriculturists  in  their  planting  and  cultivation.  The  con- 
cession (1916)  called  for  the  planting  by  the  company  of  200,000 
plants  of  sisal  {Agave  sisalana)  or  other  similar  plant — not  more 
than  2,000  to  the  hectare  (2.47  acres) — and  to  supply  up  to  25,000 
plants  annually  among  prospective  growers,  with  books  of  instruc- 
tion. The  factory  in  Caracas  imports,  on  an  average,  250  tons  of 
cleaned  sisal  fiber  per  month,  and  this  amount  was  allowed  to  be 
imported  free  of  duty  for  the  period  of  six  years  from  the  date  of  the 
concession.  At  the  present  time  the  company  has  a  fine  plantation 
near  Guacara  in  the  Valencia  district,  the  land  containing  200,t)00 
plants;  cutting  was  started  last  year,  the  leaves  being  gathered  for 
the  fiber  after  the  fourth  year. 

With  the  exception  of  a  few  local  patches  of  cultivated  fiber  plant, 
the  only  other  large  plantation  of  sisal  or  henequen  in  the  country  is 
that  of  Gen.  Gabriel  A.  Lacle  near  Coro.  About  1,000,000  sisal 
plants  on  this  estate  reached  the  producing  age  in  1917,  and  ma- 
chinery was  imported  and  installed  during  the  month  of  October, 
1917.  The  National  Government,  as  long  ago  as  1910,  endeavored 
to  arouse  interest  among  landowners  in  fiber  production,  but  the 
principal  difficulties  seem  to  be  the  universal  lack  of  sufficient  cheap 
labor  and  the  more  attractive  field  offered  to  capital  in  the  cultivation 
of  coffee  nearer  the  present  centers  of  social  and  commercial  life. 
At  the  present  time  the  export  price  for  Venezuelan  fiber  is  too  low 
to  attract  capital  to  this  industry,  and  the  domestic  production  easily 
takes  care  of  the  domestic  demand. 


TANNING  MATERIALS. 

Divi-divi  is  ^n  exceedingly  cheap  source  of  tannin,  but  prior  td 

1913  its  use  was  not  very  extensive  in  the  United  States.    During 

1914  only  29,000  pounds  were  imported,  the  price  per  pound  at  port 
of  shipment  being,  on  an  average,  1.6  cents.  The  consumption  of  divi- 
divi  in  Germany  is  much  more  important.  During  1913  Germany 
imported  951  metric  tons  from  Colombia  and  5,092  metric  tons  from 
Venezuela  (1  metric  ton=2,205  pounds).  The  total  exports  of  divi- 
divi  from  Venezuela  for  the  same  year  amounted  to  5,371  metric  tons. 

The  tannin  is  found  in  the  seed  pods  of  the  Caesalpinia  coriaria 
(WUld.)^  the  tree  growing  to  a  height  of  20  to  30  feet..  It  is  indige- 
nous in  the  West  Indies,  Mexico,  Venezuela,  and  northern  Brazil,  being 
found  in  considerable  abundance  throughout  the  semiarid  lands  along 
the  north  coast  of  Venezuela.  The  pods  contain  40  to  45  per  cent  oi 
tannin,  very  similar  to  that  present  in  valonia.  This  tannin  is  most 
abundant  in  the  tissue  of  the  pod,  under  the  epidermis.  There  is 
little  in  the  seeds.  A  typical  analysis  of  the  pods  gives  the  following 
results : 

Per  cent. 

Water . 13.  5 

Tannin 41. 5 

Nontannins ^^  18. 0 

Ash 1.6 

Insoluble 25. 4 

Carbohydrates 8. 4 

To  100  parts  tannin  come  20.2  parts  carbohydrates.  The  tannin 
consists  of  a  mixture  of  ellagitannin  and  gallotannin.  It  is  accom- 
panied by  a  considerable  amount  of  oily  and  mucilaginous  matter. 
Divi-divi  tannin  is  easily  separated  in  the  form  of  a  concentrated 
extract,  but  this  latter  (as  well  as  the  ordinary  solutions  for  tanning 
purposes),  on  account  of  the  presence  of  the  above-mentioned  foreign 
matters,  are  liable  to  undergo  sudden  fermentation,  especially  during 
electrical  storms.  In  the  course  of  fermentation  a  deep-red  coloring 
matter  is  developed,  which  imparts  to  leather  a  dark  stain.  It  is  a 
problem,  not  yet  solved,  how  this  fermentation  may  be  effectively 
a'^oided.  The  use  of  ordinary  antiseptics  has  been  of  some  assistance 
as  a  preventive.  As  a  rule,  divi-divi  tannin  is  mixed  with  various 
barks  or  their  extracts.  Leather  made  by  the  use  of  divi-divi  extract 
alone  is  apt  to  be  firm  in  dry  weather  but  soft  and  spongy  in  damp 
weather.  Ordinarily  it  is  used  as  a  substitute  for  gambier  in  the 
dressing  of  leather  and  in  the  rapid  drum-tanning  of  light  leathers. 
Sometimes  its  use  is  simply  as  a  dyestuff. 

Divi-divi  was  first  imported  from  Caracas  in  1769,  by  Spaniards. 
By  1848  it  had  come  into  widely  extended  use.  The  chief  ports  of 
sHipment  from  Venezuela  are  La  Guaira  and  Maracaibo. 

The  fact  that  the  tannin  content  of  the  divi-divi  pod  is  contained 
in  the  form  of  a  white  powder  lying  just  under  the  skin  or  covering 
of  the  pod  causes  loss  in  shipment  when  the  product  is  much  handled 
in  transit ;  and  the  high  freight  rates  during  the  war  also  led  to  the 
establishment  of  an  extract  factory  in  Venezuela,  located  at  the  port 
of  Porlamar,  island  of  Margarita,  in  1917,  the  pure  tannin  being  put 
up  in  pressed  tablets  for  export  under  a  patented  process  into  which 
neither  heat  nor  chemical  composition  entered.    The  product  ready 

77 


78        VENEZUELA :  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 


for  export  contains  80  per  cent  of  tannin  and  16  per  cent  of  tannic 
glucose.  In  1918  another  small  factory  was  started  at  La  Guaira  for 
tne  same  purpose. 

The  plant  grows  wild  throughout  the  country — ^but  is  found  chiefly 
alon^  the  coast  of  the  Caribbean  Sea  and  in  the  sterile  plains  of  the 
interior^  at  the  foot  of  the  southerly  slopes  of  the  Coast  Range  of 
mountains.  The  hot  lowlands,  with  a  minimum  of  rainfall,  are  where 
it  thrives  best,  and  therefore  it  is  most  found  in.  the  States  of  Lara, 
Falcon,  Zulia,  and  Sucre.  The  tree  also  grows  well  in  the  lowlands 
and  more  fertile  plains  of  the  great  llanos,  but  the  supply  there  is 
too  far  removed  from  transportation  to  make  it  commercially  avail- 
able at  the  present  time.  It  takes  about  20  years  for  a  tree  to  reach 
full  development  and  give  a  maximum  production  of  138  kilos  (1 
kilo=2.2046  pounds)  of  pods  per  annum.  This  is  an  average  produc- 
tion figure  for  the  Cumana  region,  but  in  the  western  portion  of  Vene- 
zuela the  production  per  tree  is  much  lower,  being  from  18  to  24  kilos 
in  the  Maracaibo  region  and  only  12  kilos  in  the  Barquisimeto  region. 

There  has  been  no  systematic  cultivation  of  the  divi-divi  in  Vene- 
zuela, although  two  attempts  have  been  made,  one  near  Maracaibo 
and  the  other  near  Cumana,  where  trees  were  set  out  and  a  small 
plantation  formed  like  those  that  are  found  on  the  island  of  Curagao, 
where  the  tree  is  carefully  cultivated.  As  a  rule,  the  pods  are  merely 
rajred  up  off  the  ground,  separated  from  the  dirt  and  chaff,  and  then 
sacked  and  shipped  in  this  form.  The  old  method  of  shipment  was  to  lay 
the  loose  pods  in  the  lower  hold  of  sailing  vessels  with  hardwood  logs 
as  ballast,  but  most  of  the  product  is  now  handled  in  sacks  by  steamers. 

Maracaibo,  La  Vela  de  Coro,  Tucacas,  Puerto  Cabello,  La  Guaira, 
Guanta,  Puerto  Sucre  (Cumana),  Pampatar  (island  of  Margarita), 
Carupano,  Cristobal  Colon,  and  Ciudad  Bolivar  are  all  ports  of 
export  for  this  product,  being  given  in  the  order  of  their  relative 
importance  in  the  trade.  A  large  portion  of  the  production  of  the 
Coro  and  Paraguana  Peninsula  region  of  the  State  of  Sucre,  as  well 
as  that  of  the  northern  part  of  the  State  of  Zulia,  is  carried  to 
Curagao  in  small  sailing  schooners  and  reexported  from  Willemstad 
to  the  United  States. 

From  1874  to  1882,  from  Maracaibo  alone  there  was  exported 
12,291  metric  tons  of  divi-divi.  In  1883  the  price  of  divi-divi  aver- 
aged 120  bolivars  ($23.16)  per  ton  at  port  of  shipment,  but  at 
present  it  varies  from  70  to  100  bolivars  ($13.51  to  $19.30)  at  Cumana 
and  from  110  to  140  bolivars  ($21.23  to  $27.02)  per  ton  at  Maracaibo. 

Venezuela's  exports  of  divi-divi  from  1908  to  1919  have  been : 


Metric  tons. 

1908 5,  829 

1909 7,  346 

1910 - 8, 979 

1911 10,  902 

1912 7,  720 

1913 5,  371 


Metric  tons. 

1914 5,  203 

1915 5,  668 

1916 7,  758 

1917 5,  061 

1918 7.  055 

1919 8,  843 


There  are  a  number  of  other  valuable  tanning  materials  found  in 
Venezuela,  but  none  are  exported  except  divi-divi  and  mangrove 
bark,  though  many  are  used  by  native  tanners  on  a  small  scale.  Ex- 
ports of  mangrove  bark  amounted  to  433  metric  tons  in  1917,  379 
tons  in  1918,  and  114  tons  in  1919,  most  of  the  amounts  going  to  the 
United  States. 


MINING. 

GENERAL   SURVEY    OF   RESOURCES    AND    OPERATIONS. 

There  is  scarcely  a  mineral  that  can  not  be  found  in  some  part 
of  the  vast  territory  of  Venezuela,  though  the  principal  mineral  re- 
sources at  the  present  time  consist  of  gold,  copper,  coal,  and  pe- 
troleum. In  1550  various  expeditions  prospected  the  regions  of  the 
country  for  gold  mines.  The  copper  mines  of  Los  Teques  (18  miles 
from  Caracas)  were  discovered  in  1560  and  actively  worked  until  the 
hostility  of  the  Indians  put  a  stop  to  the  operations,  which  have 
never  been  resumed  in  modern  times.  The  copper  mines  of  Arao, 
Pao,  etc.,  were  discovered  in  1584.  As  long  ago  as  1896  the  Govern- 
ment listed  a  total  of  226  mineral  deposits,  of  which  62  were  of  gold, 
29  coal,  14  copper,  10  iron  ore,  7  sulphur,  7  lead,  6  asphalt,  6  rock 
crystal,  1  diamonds,  2  platinum,  and  the  remaining  73  of  various 
metals.  The  number  of  mining  companies  actively  engaged  in  min- 
ing operations  in  1917  were  16  exploiting  gold-bearmg  claims,  9 
copper  claims,  8  asphalt  properties,  and  97  prospecting  for  petroleum. 

Gold  exists  in  nearly  all  the  States  and  Territories  of  Venezuela, 
but  the  only  mines  being  worked  are  those  in  Venezuelan  Guiana, 
in  the  region  of  the  Yuruary  River. 

Copper  is  found  in  the  region  of  the  famous  Aroa  mines,  in  the 
State  of  Yaracuy,  and  there  are  unexploited  deposits  near  Coro, 
Carabobo,  Barquisimeto,  and  Merida. 

Iron  ores  are  found  at  the  previously  worked  deposits  of  Imataca, 
on  the  Orinoco,  in  the  mountain  range  near  Coro,  in  the  State  of 
Falcon,  and  near  Barinas,  Barcelona,  and  also  Cumana. 

Lead  is  found  in  a  mine  near  the  River  Tocuyo,  whence  very  good 
samples  have  been  taken.  In  the  vicinity  of  Caracas  there  is  a  lead 
mine  that  appears  to  contain  a  large  quantity  of  the  ore,  according 
to  recent  explorations. 

Asphalt  exists  and  is  worked  near  Guanaco,  at  the  famous  Ber- 
mudez  Asphalt  Lake,  in  the  extreme  eastern  part  of  the  country, 
and  there  are  deposits  near  Guanta  and  also  in  the  region  of  Lake 
Maracaibo. 

Coal  is  found  in  large  deposits  in  vein  formation  near  Barcelona, 
in  the  Naricual  fields,  near  Coro,  in  the  State  of  Falcon,  and  in  the 
State  of  Zulia,  west  of  Maracaibo. 

The  official  statistics  of  the  Department  of  Hacienda  (Finance) 
for  1916-17  show  that  during  that  fiscal  year  Venezuela  exported,  in 
round  figures.  9,000,000  bolivars  ($1,800,000)  of  gold,  more  than 
64,000,000  bohvars  ($12,800,000)  of  magnesite,  more  than  1,000^0 
bolivars  ($200,000)  of  copper,  and  the  same  value  of  asphalt.  The 
aggregate  production  of  mineral  wealth  exceeded  75,000,000  bolivars 
(approximately  $15,000,000). 

The  public  revenue  derived  from  this  branch  of  income  amounted 
to  821,935  bolivars  ($164,387)  in  1918,  of  which  the  greater  portion 
came  from  taxes  on  asphalt  and  petroleum  operations  and  exportation. 

79 


80        VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

LEGISLATION  AND  REGULATIONS— BUREAU  OF  MINES. 

The  most  recent  legislation  on  coal  and  petroleum  is  contained  in 
the  decree  of  June  19, 1920,  entitled  "  Law  on  hydrocarbons  and  other 
combustible  minerals  "  (a  translation  of  which  may  be  obtained  upon 
application  to  the  Bureau  of  Foreign  and  Domestic  Commerce  or 
any  of  its  district  or  cooperative  offices,  referring  to  Exhibit  No. 
18034). 

The  "  Direction  "  or  Bureau  of  Mines,  created  by  executive  decree 
of  April  19, 1909,  was  combined  with  that  of  Public  Lands,  Industries, 
and  Commerce  under  one  head  until  June  1,  1918,  when  it  was  found 
that  mining  activity  had  so  increased  that  a  separate  bureau  had  to 
be  established  by  the  Government. 

MINING  CODE. 

The  Code  of  Mines  of  1909  was  also  found  to  contain  certain  de- 
ficiencies harmful  to  development  of  this  important  industry.  In 
1915  there  was  sanctioned  a  new  code,  constituted  by  the  present 
mining  law,  in  force  since  June  27,  1918.  This  new  law,  adapted  to 
national  necessities  and  customs,  offers  the  greatest  possible  liberty 
and  numerous  advantages  to  the  contractor  (concessionaire),  guar- 
anteeing at  the  same  time  the  interests  of  the  nation  and  providing  an 
additional  national  revenue. 

Among  the  important  reforms  contained  in  this  new  mining  law  is 
that  of  free  importation  of  mining  machinery  and  materials  for  the 
working  of  mines,  as  well  as  of  lighting  plants,  power  plants,  ventilat- 
ing plants,  equipment,  and  utensils  for  mining  operations,  in  addition 
to  chemical  laboratories,  assaying  equipment,  etc.  All  equipment  and 
materials  for  reduction  plants  are  also  included  in  this  free  import 
list. 

COURSE  OF  MINING  DEVELOPMENT. 

In  1911  mining  in  Venezuela  began  to  increase  in  several  regions  of 
the  country.  The  production  of  gold  in  the  State  of  Bolivar  in- 
creased, as  did  that  of  copper  in  the  State  of  Lara  (mines  of  Arroa) 
and  asphalt  in  the  States  of  Sucre  and  Monagas.  During  the  year 
1913  the  country  was  explored  by  numerous  groups  of  engineers  and 
geologists  interested  principally  in  oil. 

The  mineral  production  of  Venezuela  did  not  fall  off  during  the 
war,  as  is  seen  from  the  following  figures : 

1916 — Gold  production,  1,910  kilos;  copper,  2,533  tons;  asphalt, 
47,201  tons ;  coal,  27,007  tons. 

1917— Gold,  958,304  grams;  copper,  42,270  kilos;  asphalt,  54,071 
tons ;  petroleum,  18,249  kilos ;  coal,  20,164  tons. 

1918— Gold,  712,007  grams;  copper,  29,708  kilos;  petroleum,  48.3 
tons. 

DECREE  OF  SEPTEMBER  19,  1914. 

Under  date  of  September  19,  1914,  a  decree  declared  as  inalienable 
the  mines  of  coal  (anthracite  and  lignite),  petroleum,  asphalt,  and 
pitch,  which  up  to  that  time  had  not  been  acquired  by  companies  or 
private  individuals.  The  Federal  Executive,  on  assuming  the  di- 
rect administration  of  these  classes  of  mines,  had  in  mind  the  neces- 
sity for  organization,  in  order  that,  without  removing  these  mines 
from  production  activity,  such  deposits  could  not,  in  any  case,  pass 


MINING.  81 


into  private  hands;  the  main  idea  was  to  conserve  for  the  nation 
these  valuable  reserves  for  the  future,  with  special  attention  to  coal, 
which,  on  account  of  the  growing  scarcity  of  vegetable  fuel  (wood), 
with  tbe  great  increase  in  transportation  and  industry,  has  become 
an  article  of  first  necessity. 

REGULATION  OF  OCTOBER  9,  1918. 

On  the  9th  of  October,  1918,  a  new  regulation  was  issued  govern- 
ing the  exploration  and  exploitation  of  coal  and  petroleum  and  other 
combustible  materials.  This  indicates  in  a  very  clear  manner  the 
procedure  for  acquiring  concessions,  and  at  the  same  time,  like  the 
mining  law,  allows  great  liberty  and  advantages  to  the  concession- 
aires and  also  protects  the  fiscal  department  of  the  nation. 

ASPECTS  OF  ACTIVITY  IN  OIL  AND  COAL. 

With  respect  to  petroleum  it  is  interesting  to  note  that  the  Carib- 
bean Petroleum  Cfo. — the  largest  oil  company  interested  in  Vene- 
zuela and  the  corporation  owning  the  contract  made  with  Dr.  Eaf  ael 
Max  Valladares  on  January  2,  1912,  for  the  exploration  and  ex- 

Sloitation  of  coal  and  petroleum  deposits  in  the  States  of  Sucre, 
[onagas,  Anzoategui,  Nueva  Esparta  (Margarita  Islands),  Tachira, 
Trujillo,  Merida,  Zulia,  Lara,  Falcon,  Carabobo,  Yaracuy,  and  Delta 
de  Orinoco — selected  and  designated  a  total  of  1,028  deposits,  certain 
of  which  have  since  been  renounced,  and  now  pays  the  Government  a 
total  of  168,195  bolivars  ($32,462)  for  those  in  actual  exploitation 
and  269,000  bolivars  ($51,917)  annually  on  those  from  which  this 
company  has  not,  as  yet,  obtained  oil.  The  company  also  pays  a 
tax  on  all  oil  produced  and  a  supplementary  tax  on  refined  products, 
such  as  gasoline,  that  are  consumed  in  the  country. 

The  activity  in  oil  in  Venezuela  has  been  such  that  in  1918  there 
were  66  contracts  made  by  the  Federal  Executive,  covering  710.270 
hectares  (1  hectare:=2.47l04  acres),  on  which^  according  to  the  pro- 
visions 01  the  new  law,  there  has  been  deposited  the  sum  of  54,000 
bolivars  ($10,422)  in  cash,  and  on  which,  moreover,  from  the  time  of 
publication  of  the  contracts  in  the  Official  Gazette,  there  will  be  paid 
an  annual  tax  of  0.05  to  0.10  bolivar  ($0.0096  to  $0.0193)  per  hectare 
as  an  exploration  tax. 

Coal  has  also  been  attracting  attention.  In  1918  there  were  15  con- 
cessions given  by  the  Government,  covering  145,232  hectares.  On 
December  31,  1916,  the  Republic  had  adjudicated  700  mines,  with  a 
total  surface  of  391,858  hectares,  of  which  159,721  hectares  were  by 
"denouncement"  (location)  for  gold,  copper,  lead,  etc.,  and  232,13Y 
hectares  by  contract  with  the  Government  for  petroleum,  coal,  as- 
phalt, etc.  Of  this  total,  there  were  declared  in  exploitation  118 
concessions,  with  a  total  surface  of  75,853  hectares. 

The  total  revenue  from  the  petroleum  branch  during  1918  amounted 
to  1,053,900  bolivars  ($203,403)  and  from  other  mining  activities 
(for  mines  of  gold,  copper,  etc.)  to  821,938  bolivars  ($158,634).  In 
1917  the  number  of  denouncements  was  97,  in  1918  it  was  119,  and 
135  locations  were  made  in  the  first  half  of  1919. 

Of  162  mines  (other  than  those  of  coal  and  petroleum)  under  con- 
tract up  to  June  30,  1919,  there  are  16  gold  mines,  5  copper  mines, 
and  7  asphalt  mines  in  actual  operation. 

79747  •— 22 7 


82        VENEZUELA:  A  COMMEKCIAL  AND  INDUSTRIAL  HANDBOOK. 

CAI»ITALIZATION  OF  CERTAIN  COMPANIES. 

Some  idea  of  the  capital  invested  by  the  various  companies  may  be 
gathered  from  the  following  partial  table  (1  bolivar=$0.193) : 

Capital,  in  bolivafs. 

Caribbean  Petroleum  Co 20,782,842 

New  CaUao  Gold  Mining  Co 20,  000, 000 

New  York  &  Bermudez  Co 8, 914,932 

Colon  Development  Co.  (Ltd.) 4,747,000 

Bermudez  Co 4, 319, 820 

El  Dorado  Rubber,  Balata  &  Gold  Mining  Co.  (Ltd.)—    3,380,000 

Venezuelan  Oil  Concessions  (Ltd.) 2,316,354 

Companfa  An6nima  Minera  *'  La  Cumaragua  " 1, 616, 354 

Cara  del  Sol,  Sol  en  el  Cenit,  Mi  Fortuna,  etc 660, 000 

El  Amparo 149, 022 

Total 69,686,966 

OWNERSHIP  AND  CONTROL  OF  MISCELLANEOUS  MINERALS. 

The  new  mining  law  of  June  27,  1918,  separates  coal,  petroleum, 
and  other  combustible  minerals  from  all  other  minerals,  and  places 
them  under  the  administration  of  the  Federal  Executive  exclusively, 
under  the  conditions  set  forth  in  the  new  coal  and  petroleum  law  of 
June  19, 1920. 

All  wells,  springs,  and  deposits  of  salt  are  national  property  and 
are  exploited  by  the  Government  by  direct  account. 

Deposits  of  sesqui-carbonate  of  soda  ("urao")  and  carbonate  of 
soda  are  subject  to  special  terms  of  contract  with  the  Federal  Ex- 
ecutive. 

Construction  stone,  clays,  slates,  lime  deposits,  guano,  sands,  phos- 
phates, and  other  similar  materials  are  the  property  of  the  owner  of 
the  soil  (whether  private  individual,  company,  or  State  or  Territory), 
if  on  public  land.  The  concessionaire  of  public  lands  is  given  pref- 
erence in  the  location  of  natural  fertilizers,  etc. 

Quarries  of  marble  or  porphyry,  deposits  of  kaolin,  magnesite,  etc., 
when  found  on  public  lands,  are  subject  to  special  contract  with  the 
Federal  Executive. 

Pearl  fisheries,  coral,  sponge,  ambergris,  and  other  similar  sub- 
stances do  not  come  under  the  mining  regulations  but  are  subject 
to  the  special  regulations  of  the  Executive. 

ACQUISITION  OF  MINING  CLAIMS  OTHER  THAN  COAL  OR  OIL. 

Mining  claims  can  only  be  acquired  by  concession  of  the  Federal 
Executive,  in  the  form  prescribed  by  this  law. 

These  contracts  and  mining  titles  require  the  sanction  of  the 
National  Congress,  according  to  the  provisions  of  the  constitution. 

All  mining  concessions  may  be  freely  transferred  to  any  person  or 
company,  with  the  exceptions  established  by  the  law,  which  excludes 
foreign  governments  and  companies  not  registered  or  incorporated  in 
Venezuela.  In  all  such  transfers  both  the  vendor  and  the  buyer  must 
obtain  the  previous  consent  of  the  Minister  of  Fomento  (Develop- 
ment). Partial  transfers  are  not  taken  into  account,  so  far  as  the 
Executive  is  concerned. 

All  mining  titles  must  be  recorded  in  the  registry  office  of  the  dis- 
trict in  which  they  may  be  located. 


MINING.  88 

■ 

The  law  distinguishes  between  the  surface  and  the  subsoil ;  the  first 
begins  at  the  surface  and  extends  downward  for  a  distance  of  3  meters 
vertically  (1  meter =3.28  feet),  except  when  works  of  the  proprietor 
of  the  soil  may  have  been  already  extended  to  a  lower  level.  The 
subsoil  extends ^  vertically  downward  indefinitely  from  the  limits 
established  for  ihe  surface  soil,  as  above. 

AH  mining  concessions  comprise  only  the  subsoil  when  found  on 
private  property,  the  surface  remaining  under  the  ownership  of  the 
surface  proprietor,  except  under  the  necessity  of  expropriation,  as 
provided  by  the  law. 

The  law  presumes  that  the  mine  concessionaire  will  need  to  utilize 
the  surface,  and,  in  the  event  of  failure  to  effect  an  arrangement  with 
the  owner  of  the  surface,  the  law  concedes  the  right  of  expropriation, 
with  proof  of  necessity,  in  the  following  cases :  For  use  as  dumping 
ground,  opening  of  galleries  or  shafts,  construction  of  necessary  edi- 
fices, tanks,  shops,  warehouses.,  etc.,  establishment  of  mills  and  ma- 
chinery, transportation  of  product,  etc. 

Expropriation  is  accomplished  under  the  judgment  of  the  judge 
of  the  first-instance  court  having  jurisdiction  in  the  district  of 
location,  and  the  valuation  experts  must  take  account  of  the  damage 
sustained  by  the  owner  of  the  surface. 

The  mining  title  in  public  lands  not  previously  occupied  gives  the 
concessionaire  the  rignt  to  the  use  of  the  surface  without  more 
formality  over  the  area  contained  therein,  but  only  for  the  time  of 
the  concession  and  without  prejudice  of  third-party  rights.  This 
does  not  include,  however,  the  right  to  exploit  the  more  valuable 
hardwoods,  or  rubber,  or  other  vegetable  products  found  on  the  land. 

Clearings,  dumps,  and  washings  of  abandoned  mines  are  considered 
a  part  of  the  mine  only  until  such  land  passes  into  the  hands  of  some 
owner.  The  dumps  of  abandoned  mines  are  regarded  as  common 
property  until  fenced  or  walled  in. 

Each  concession  gives  the  right  to  exploit  all  the  minerals  (except 
coal,  salt,  and  petroleum,  as  mentioned)  found  within  the  boundaries 
of  the  grant,  without  further  requirement  other  than  that  of  advising 
the  Minister  of  Fomento  of  the  number  and  kind  of  minerals  found 
and  worked. 

In  contracts  covering  placer  and  gravel  claims,  the  concessionaires 
must  also  fulfill  the  requirements  for  vein  mines  and  mineral  deposits 
if  found  on  their  concession,  but  they  are  given  preferential  right 
over  other  locators  on  the  property.  Six  months'  time  is  allowed  to 
prove  such  preferential  right. 

Likewise,  owners  of  veins  or  deposits  are  granted  a  preferential 
right  to  locate  adjoining  mining  property,  whether  already  free  or 
recently  open  for  location. 

When,  in  working  some  claim,  other  mining  property  adjoining  is 
invaded,  the  gross  value  of  the  ore  or  mineral  extracted  will  be 
divided  equally  between  the  adjoining  mining-property  owners;  but, 
if  it  is  proven  that  the  trespasser  did  not  proceed  in  good  faith,  the 
owner  of  the  adjoining  invaded  property  shall  be  paid  double  the 
value  of  the  mineral  extracted,  without  prejudice  of  the  other  penal- 
ties of  the  law,  according  to  the  provisions  of  the  Penal  Code. 

By  virtue  of  the  mining  title  granted  by  the  Government,  the 
locator,  if  not  resident  in  Venezuela,  must  name  a  competent  legal 


84         VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

• 

representative  who  shall  take  care  of  notifications,  payments  of  taxes, 
and  other  business  in  relation  to  the  property.  The  legal  residence 
of  such  agent  of  the  owner  must  be  in  the  district  in  which  the  mine 
is  located  or  in  the  capital  of  the  Republic  (Caracas).  A  certified 
copy  of  the  power  of  attorney  must  be  attached  to  the  title  and 
records  on  file  with  the  register.  In  the  event  of  the  death,  resigna- 
tion, or  absence  of  the  duly  accredited  representative,  another  such 
must  be  immediately  named. 

All  mining  concessions  are  considered  as  a  contract,  an  implicit 
condition  of  which  is  that  any  dispute  or  controversy,  of  whatever 
nature,  that  may  not  be  settled  amicably  by  the  contracting  parties 
(i.  e.,  the  locator  and  the  Government)  shall  be  decided  by  the  com- 
petent courts  of  the  country,  and  according  to  the  laws  of  Venezuela, 
without  the  intervention  of  loreign  investigation  or  diplomatic  claim. 

ACQUISITION  OF  MINING  CLAIMS  BY  FOREIGNERS. 

The  law  expressly  states  that  an^  and  all  persons  or  companies, 
national  or  foreign,  can  acquire  mining  property  in  the  country,  if  in 
the  enjoyment  of  their  legal  rights  either  in  Venezuela  or  in  their 
own  country — with  the  exception  of  national  public  ofiicers  having 
administrative  functions  in  mining  (who  can  neither  be  admitted  as 
partners  in  mining  companies,  nor  engage  in  mining  while  in  their 
term  of  office)  and  foreign  governments  or  their  representatives  in 
Venezuela,  the  Government  reserving  the  right  to  cancel  immediately 
any  concession  if  it  is  found  that  any  public  officer  of  the  class  men- 
tioned, or  any  foreign  government  agent,  is  interested  in  the  property 
in  any  way. 

Companies  and  corporations  domiciled  in  foreign  countries  must 
be  legally  constituted  in  Venezuela  before  they  can  acquire  mining 
property,  either  by  transfer  of  title  or  by  location. 

RIGHT  OF  DISCOVERT. 

The  law  presumes,  until  the  contrary  is  proven,  that  the  mineral 
claimed  to  be  discovered  actually  exists  and  that  it  is  of  industrial 
value  and  commercially  exploitable.  The  discoverer  of  a  mineral 
deposit  or  vein  has  the  right  to  1  per  cent  of  the  gioss  product  for 
the  period  of  10  years  of  the  working  of  the  mine  by  others  who 
may  have  legally  "  located  "  it.  The  discoverer  of  a  mine  has  no 
discovery  rignts  after  10  years  unless  the  mine  is  located  and  worked 
within  that  time. 

The  right  of  location  is  by  priority,  always. 

SIZE  AND  FORM  OF  CLAIMS. 

The  location  of  mines  is  determined  by  surface  measurements  from 
fixed  points  and  lines,  the  hectare  being  taken  as  the  unit  of  measure- 
ment. Subsoil  measurements  are  to  be  determined  by  a  series  of 
planes. 

Each  mining  claim  covering  a  vein  or  deposit  of  mineral  ore  is  200 
hectares  (494.2  acres)  in  extent,  measured  and  laid  out  in  either 
square  or  rectangular  form. 

The  extent  of  placer  mines  or  other  form  of  deposit  which  it  is 
intended  to  work  by  mechanical  means  (dredging)  can  not  exceed 


MINING.  85 

2,500  hectares  (1  hectare=2.47  acres),  laid  out  in  square  or  rec- 
tangular form.  When  it  is  a  question  of  the  working  of  river  or 
stream  beds  or  waterways,  the  demarcation  will  be  made  by  a 
polygon  of  right  angles.        ^ 

FREE  GROUND  BETWEEN  CLAIMS. 

Free  ground  left  between  two  or  more  claims,  if  this  does  «iot 
exceed  5  hectares  in  extent,  will  be  conceded  by  the  Executive  to  the 
first  owner  of  adjoining  property  who  may  solicit  it,  following  pre- 
sentation of  the  plans  and  maps  of  the  claims,  properly  verified  and 
certified  by  the  mine  guard  of  the  district,  and  the  favorable  I'eport 
of  the  technical  inspector  of  mines. 

If  a  third  party  desires  to  obtain  the  intervening  ground  not  cov- 
ered bv  either  of  the  adjoining  claims,  the  procedure  of  location  is 
to  be  followed;  but  if  opposition  is  made  by  both  of  the  adjoining 
mine-property  owners,  preference  will  be  given  the  holder  of  the 
oldest  title;  and  if  only  one  adjoining  owner  makes  objection,  he 
will  be  accorded  the  preference  as  regards  the  new  "  denouncement " 
(location).  If  the  open  ground  between  claims,  as  above,  is  more 
than  5  hectares,  then  the  adjoining  property  owners  have  no  prefer- 
ential rights  and  the  claim  of  the  first  locator  to  comply  with  the 
legal  provisions  of  location,  as  herein  set  forth,  will  be  allowed. 

For  payment  of  taxes,  all  free  space  between  claims  will  be  com- 
puted on  the  basis  of  the  hectare,  fractions  counting  as  1  hectare. 

TERM  OF  CONCESSION  TITLE. 

Claims  and  titles  for  vein  mines  are  for  a  period  of  90  years,  all 
others  being  for  60  years'  duration. 

MINERAL  DEPOSITS  OF  FREE  PUBUC  USE. 

Placer  deposits  of  minerals  occurring  on  public  lands  are  consid- 
ered  common  property  when  worked  by  hand  and  by  the  usual 
wooden  pan,  or  other  crude  methods.  This  also  applies  to  placers 
found  on  the  navigable  streams  that  come  under  Federal  jurisdiction. 

Placers  being  worked  by  the  crude  methods  described  are  declared 
closed  as  soon  as  the  use  of  mechanical  means  is  proven,  and  fines 
are  imposed  for  the  continuance  of  pan  work  therein. 

When  these  deposits  (placers)  are  being  worked  by  shafts  to  bed- 
rock— called  "barrancos"  in  Spanish — each  "barranco"  is  defined 
by  a  square  10  meters  on  each  side  and  of  any  depth.  If  a  placer 
bedrock  shaft  is  left  unworked  for  six  months  its  owner  is  no  longer 
protected  by  the  law.  The  placer  right  of  free  public  use  is  pre- 
carious and  can  be  altered  by  force  of  public  interest. 

CAUSES  OF  CANCELLATION  OF  TITLE  OR  CONCESSION. 

Rights  of  location  of  mining  claims  are  forfeited  when  the  plan 
(map)  of  the  claim  is  not  presented  within  the  six  months  allowed; 
when  the  errors  noted  by  the  Ministry  of  Fomento  are  not  corrected ; 
or  when  the  amount  to  be  affixed  in  stamps  and  stamped  paper  is  not 
presented  within  one  year  from  the  date  of  material  possession. 

Rights  under  concessions  are  declared  forfeited  when  the  surface 
tax  has  not  been  paid  during  one  year;  when  the  term  has  expired; 


86        VEXEZUEIA :  A  COMMERCIAL  AlH)  INDUSTRIAL  HANDBOOK. 

when  the  owner  expressly  signifies  his  intention  of  abandonment  or 
renouncement  of  the  claim;  when  the  owner  fails  to  take  action  upon 
the  second  public  auction  of  the  claim  for  payment  of  taxes.  The 
Federal  Court  of  Claims  has  jurisdiction  over  cancellation  of  all  min- 
ing claims  and  property.  Canceled  or  abandoned  claims  become  the 
property  of  the  nation  without  cause  of  further  action,  and  the  nation 
IS  not  responsible  for  any  debts  or  claims  appertaining  to  the  former 
ownership  of  the  property. 

WATER  RIGHTS. 

The  provisions  of  the  law  are  liberal  in  allowing  free  use  of  water 
from  nvers  and  streams  for  mine  working  and  placers.  In  the  event 
that  two  claims  need  the  water  of  one  stream  or  other  source  of  sup- 
ply, each  is  given  a  just,  proportionate  division  of  the  water.  Navi- 
gable streams  can  not  be  obstructed  by  mining  operations  or  impedi- 
ments to  navigation  formed  by  waste  from  the  operations  of  placers 
or  mines. 

PAYMENTS  TO  THE  GOVERNMENT. 

Placer  mines,  gravel  deposits,  etc.,  pay  a  surface  tax  of  0.50  bolivar 
($0.0965)  per  annum  for  each  hectare  of  surface  during  the  first 
three  years  of  the  validity  of  the  title,  and  1  bolivar  ($0,193)  per 
hectare  per  annum  during  the  remainder  of  the  term  of  the  con- 
cession. 

Vein  mines  pav  1  bolivar  per  hectare  per  annum  for  the  first  three 
years  of  the  title,  and  2  bolivars  ($0.39)  per  year  during  the  re- 
mainder of  the  term  of  the  concession. 

When  work  has  not  been  begun. on  a  mine  during  the  first  three 
years  of  the  title,  or  work  has  been  suspended  on  account  of  circum- 
stances over  which  owners  have  had  no  control  (properly  proved  in 
each  case),  the  surf  ace  tax  on  placers  is  0.50  bolivar  per  hectare  per 
annum,  and  on  vein  mines  1  bolivar  per  hectare  per  annum. 

Payment  of  the  production  tax  is  obligatory  from  the  time  min- 
eral IS  taken  from  the  mine,  as  follows  r  For  each  gram  of  gold,  0.10 
bolivar  ($0.0193) ;  for  each  metric  ton  of  copper  ore,  0.60  bolivar 
$0.1158) ;  for  other  minerals,  3  per  cent  of  the  mercantile  value  of 

e  mineral  extracted,  calculated  at  the  time  of  its  extraction  from 
the  mine,  according  to  the  average  price  in  the  open  market  during 
the  preceding  six  months.  Concentrated  minerals,  or  ores,  pay  a  rate 
in  proportion  to  the  percentage  of  concentration  to  which  they  have 
been  subjected. 

Other  payments  include  5  bolivars  ($0.96)  in  revenue  stamps  on 
the  concession  document;  0.25  bolivar  ($0,048)  in  revenue  stamps 
per  hectare  of  claim  area  of  vein  mines;  0.03  bolivar  ($0.0058)  in 
revenue  stamps  per  hectare  of  claim  area  of  placer  and  gravel  claims. 
(These  stamps  are  due  when  the  title  is  issued.) 

Solicitors  of  exploration  permits  pay  250  bolivars  ($48)  per 
annum  for  every  1,000  hectares,  or  fraction  thereof,  of  surface  to  be 
explored  for  minerals. 

feooks  are  kept  in  duplicate,  duly  authorized  by  the  court  having 
jurisdiction  in  the  district,  and  all  metals  or  ores  exported  must  be 
declared — as  to  weight,  value,  and  source  of  extraction  (mine) — at 
the  customhouse  at  port  of  shipment. 


th 


MINING.  87 

FORMATION  OF  MINING  COMPANIES, 

Companies  incorporated  for  the  purpose  of  mining  development, 
of  whatever  character,  come  under  the  provisions  of  the  Civil  Code 
of  Venezuela  and  have  civil  character  before  the  laws  of  the  country. 

Foreign  mining  companies,  in  order  to  exploit  mine  properties  m 
the  country,  must  fulfill  all  tne  prescriptions  of  the  special  law  gov- 
erning companies  incorporated  in  foreign  countries  (i.  e.,  they'must 
register  under  permit  in  Venezuela  and  provide  legal  residence  and 
representation  in  the  Republic). 

The  property,  shares,  and  other  assets  of  foreign  mining,  companies 
operating  m  Venezuela  are  liable  for  all  legal  effects. 

Mining  property  is  declared  to  be  real  property  and  can  be  mort- 
gaged in  legal  form,  according  to  the  civil  laws  of  the  country,  with 
the  exception  that  all  claims  of  the  Government  have  first  preference 
before  the  law.  Contracts  of  lease  and  sublease  can  be  freely  made, 
but  with  the  previously  obtained  consent  of  the  Minister  of  Fomento 
(Development) . 

RIGHT  TO  PROSPECT  AND  EXPLORE  FOR  MINERALS. 

All  Venezuelan  or  foreign  citizens  in  the  enjoyment  of  their  civil 
rights  can  freely  prospect  and  explore  for  minerals  on  public  lands 
not  under  contract — ^makin^  such  shafts,  tunnels,  and  other  works  as 
may  be  necessary  for  the  discovery  and  opening  up  of  veins  and  de- 
posits, though  the  size  of  excavations  is  limited  to  16  square  meters 
(4  by  4  meters).  The  only  formality  necessary  is  to  advise  the  near- 
est municipal,  civil  authority  in  the  district  of  the  intention  to 
prospect. 

On  privately  owned  lands,  public  lands  under  rental  contract  with 
the  Government,  etc.,  no  prospecting  or  exploration  can  be  made 
without  the  previous  consent  in  writing  of  the  owner  or  renter.  If 
the  land  in  question  is  community  property,  the  consent  of  the  ma- 
jority of  the  owners  is  sufficient. 

In  the  event  that  permission  to  prospect  is  refused  by  the  owners 
or  renters  of  lands,  the  prospector  has  the  right  of  appealing  to  the 
law  of  expropriation  in  that  part  which  refers  to  temporary  occupa- 
tion of  lands. 

Houses,  towns,  cemeteries,  located  mines,  or  locations  pending  are 
exempt  from  the  prospect  rulings  and  can  not  be  prospected  or 
explored.  No  prospecting  can  be  done  within  1,600  meters  of  forti- 
fied places. 

The  ability  of  the  person  to  acquire  and  work  mines  is  taken  into 
consideration  when  permits  are  granted. 

After  mineral  veins  or  deposits  have  been  found  the  procedure 
of  location  is  as  follows :  A  declaration  is  made  in  writing  before  the 
mine  guard  of  the  district,  specifying  the  State,  district,  and  mu- 
nicipality in  which  the  mine  is  located,  as  well  as  the  date  of  dis- 
covery, and  a  sample  of  the  ore  or  mineral  of  not  less  than  2  kilos 
in  weight  is  also  presented  with  the  foregoing  document.  Two  com- 
petent witnesses  are  also  necessary.  The  location  declaration  may 
also  be  made  before  a  judge  and  sent  in  to  the  office  of  the  mine  g'lard. 
A  receipt  is  issued  by  the  mine  guard's  office  and  the  document  sent 
to  the  Ministry  of  Fomento  in  Caracas. 


88        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

The  location  paper  should  also  contain  the  name,  nationality,  resi- 
dence, and  profession  of  the  locator,  and  if  he  is  a  foreigner,  he  must 
also  include  the  statement  and  proof  of  his  having  fulfilled  the  re- 
quirement pertaining  to  foreigners,  according  to  the  provisions  of 
tne  Civil  Code.  The  papers  are  to  contain  the  location  of  the  mine 
(State,  district,  and  municipality),  surface  of  claim  desired,  with 
statement  of  definite  location  with  respect  to  some  well-known  point 
or  landmark  of  the  district ;  the  name  of  the  adjoining  claim  and  its 
owners,  if  any ;  name  of  the  renter  or  owner  of  the  land ;  class  and 
kind  of  ore  or  mineral  found,  and  its  formation;  and  the  declara- 
tion that  the  locator  subjects  himself  to  all  the  provisions  of  the 
mining  law  and  to  the  obligation  of  the  payments  required,  etc. 
Thirty  days  after  the  legalization  of  the  document  or  declaration  of 
location  it  is  published  by  the  mine  guard  for  a  period  of  30  days  in 
the  capital  oi  the  district.  In  the  event  of  opposition  to  the  claim 
the  locator  has  5  days  in  which  to  make  answer.  All  locations  are 
by  priority  of  time  of  location  and  declaration  before  the  mine  guard 
or  judge,  as  the  case  ma^r  be. 

After  publication  during  the  30  days,  the  owner  (locator)  must 

})roceed  with  the  survey  and  measurement  of  the  claim,  having  a 
icensed  engineer  or  surveyor  do  the  work  and  make  the  correspond- 
ing plans  and  maps.  The  relative  location  of  the  nearest  adjoining 
mming  propert}^  must  be  shown  on  the  map  of  the  new  property. 
Material  possession  is  given  by  the  mine  guard  within  15  days  after 
the  presentation  of  the  plans  of  the  property  by  the  engineer  or 
surveyor.  All  documents  and  plans  are  then  sent  in  to  the  Ministry 
of  Fomento,  where  they  are  passed  on  by  the  technical  inspector  of 
mines  for  his  report,  which  should  be  made  within  20  days  after 
their  receipt  by  the  ministry;  this  time  can  be  prolonged  by  the 
minister,  however,  under  the  press  of  special  circumstances  in  con- 
nection with  the  case.  On  approval  by  the  technical  inspector,  the 
title  is  then  issued  by  the  Ministry  of  Fomento  and  presented  to  the 
Congress  for  approbation.  Mining  titles,  when  issued,  are  on  official 
stamped  paper  and  are  signed  by  the  President  of  the  Republic  and 
countersigned  by  the  Minister  of  Fomento.  A  duplicate  of  the  plan 
and  documents  in  connection  with  the  claim  are  returned  to  the 
owner  by  the  ministry  after  issuance  of  title.  This  title  must  then 
be  registered  by  the  recorder  and  also  copied  by  the  mine  guard. 

Exploration  taxes  are  paid  every  three  months,  payment  being  due 
within  five  days  from  the  receipt  of  the  liquidation  notice  by  the 
owner  of  the  concession.  If  payment  is  not  made  within  the  five 
days  allowed,  10  per  cent  penalty  is  added.  After  lapse  of  payment 
for  one  year  the  property  is  sold  at  public  auction,  but  all  machinery 
and  improvements  become  the  free  property  of  the  (jovernment. 

[The  details  of  all  mining  operations  and  regions  are  given  in  the  reports 
covering  the  several  commercial  districts,  beginning  on  p.  118.] 

MAGNESITE  DEPOSITS  OF  MARGARITA  ISLAND. 

Margarita  Island  was  first  discovered  and  named  by  Columbus  on 
his  third  westward  voyage  in  1498,  on  his  way  to  oanto  Domingo 
(Hispaniola).  The  first  settlement  in  what  is  now  Venezuela  was 
made  on  the  neighboring  island  of  Cubagua  in  1500,  where  the 
Spaniards  founded  the  city  of  New  Cadiz,  totally  destroyed  by  earth- 


MINING.  89 

quake  and  tidal  wave  in  1543.  The  first  settlement  by  the  Spaniards 
on  Margarita  was  at  La  Asuncion  in  1624.  The  island  lies  about  20 
miles  north  of  the  mainland,  with  the  islands  of  Cubagua  and  Coche 
between.  It  practically  consists  of  two  islands  joined  by  a  sand  spit, 
the  two  divisions  being  equally  rugged  and  mountainous.  The  west- 
ern half  is  known  as  Macanao  and  contains  but  few  inhabitants,  the 
towns  being  all  in  the  eastern  half,  or  Margarita  proper.  With  the 
surrounding  smaller  islands  it  constitutes  the  State  of  Nueva  Es- 
parta.  The  capital,  Asuncion,  is  situated  in  a  sheltered  valley  at  the 
eastern  end  of  the  island ;  and  to  the  southeast  are  the  ports  of  Pam- 
patar  and  Porlamar;  the  former  is  the  port  of  import  and  export, 
but  the  latter  has  the  largest  population  and  is  the  headquarters  of 
the  fishing  and  pearl  industries. 

The  western  half  of  the  island  is  dry  and  barren  for  the  most  part, 
but  there  is  a  limited  industry  in  the  raising  of  goats  and  a  few  cattle. 
The  people  are  mostly  fishermen.  The  entire  island  group  has  a 
population  of  about  40,000.  Cubagua,  once  famous  for  its  pearl 
fisheries,  has  a  good  harbor  at  the  western  end,  and  there  are  petro- 
leum springs  along  the  northern  shore.  Margarita,  Cubagua,  and 
Coche  have  abundant  marine  life,  and  the  fishing  is  a  constant  source 
of  livelihood  for  the  people. 

The  pearl  beds  were  wnat  first  attracted  the  Spaniards  to  Cubagua, 
Coche,  and  Margarita,  and  the  industry  has  been  continued  with 
more  or  less  success  ever  since,  though  the  Venezuelan  pearls  are 
not  considered  as  first  class,  like  the  oriental  pearls.    In  recent  years 
the  industry  was  interrupted  by  a  peculiar  disease  of  the  oysters 
called  "  turbio,"  which  is  said  to  be  caused  by  the  decomposition  of 
the  component  parts  of  the  sea  water,  resulting  in  a  lack  of  oxygen 
and  an  excess  of  carbonic  acid — ^the  original  cause  being  submarine 
volcanic  disturbances.    The  Government  prohibited  the  taking  of 
the  shell  from  January  1,  1918,  to  January  1,  1919,  as  a  means  of 
conservation  of  the  industry.    Fishing  is  carried  on  from  small  boats 
by  means  of  oyster  rakes,  and  the  pearls  and  shell  are  sold  to  the 
local  dealers.    Permits  are  necessary  with  official  license  for  fish- 
ing.   In  1902  the  value  of  the  pearls  taken  was  2,145,480  francs 
(^14,078)  in  the  Paris  market,  and  in  1903  it  was  2,864,094  francs 
($552,770) ;  then  the  value  gradually  declined  until  in  1912  only 
137,100  francs  ($26,430)  worth  were  exported — after  which  an  in- 
crease took  place  until  in  1917  the  value  of  the  pearls  exported 
amounted  to  1,524,650  francs  ($294,257). 

The  silicate  deposits  on  the  island  of  Margarita  cover  1,700  acres 
on  property  totaling  7,400  acres  in  extent.  The  land  surrounding 
the  deposits  is  sterile  and  of  small  value  otherwise,  with  the  excep- 
tion of  the  salt  marshes  in  the  neighborhood.  The  Bay  of  San 
Pedro  Gonzales  near  by  is  valuable  as  a  shipping  port,  as  it  has 
deep  water,  and  wharves  can  be  built,  at  small  expense,  for  loading 
operations,  which  have  heretofore  been  carried  out  by  means  of 
lighters.  The  magnesia  occurs  in  massive  veins  and  can  be  quarried 
out  at  an  average  cost  of  75  cents  per  ton.  Labor  is  plentiful  at 
50  to  75  cents  per  day  of  10  hours,  the  class  of  labor  found  on  the 
islands  being  far  superior  to  that  on  the  mainland.  The  property 
is  located  on  the  northern  shore  of  Margarita  Island  from  the  tower 
of  San  Juan  to  the  Bay  of  Gonzales  (Galera),  to  Punta  Caribe  and 


90        VENEZUELA :  A  COMMERCIAL  AKD  INDUSTRIAL  HAl^DBOOK. 

• 

La  Play  a,  and  takes  in  the  northwestern  half  of  the  bay  and  valley  of 
Pedro  Gonzales.  There  is  said  to  be  enough  magnesite  on  Margarita 
Island  to  supply  the  United  States  for  50  years.  One  of  the  claims 
on  the  deposit  is  owned  by  the  Magnesite  l^roducts  Corporation,  of 
New  York  and  Philadelphia,  and  this  concession  has  been  approved 
by  the  Venezuelan  Congress,  thereby  giving  the  corporation  prac- 
tically a  legal  monopoly.  Other  claims  are  owned  by  the  American 
Magnesite  Mining  &  Manufacturing  Co.  and  the  American  Carbon 
Co.,  both  of  New  York  City. 

Other  reports  state  that  the  deposit  on  Margarita  Island  is  not  so 
large  as  is  supposed  and  that  only  by  consolidation  of  the  various 
interests  can  the  product  be  handled  cheaply  on  a  large  scale. 

So  far  as  is  known,  there  are  only  three  other  important  deposits 
of  magnesite  in  the  world — in  Greece,  in  California,  and  in  the  State 
of  Washington — though  the  latter  is  of  low  grade.  During  the  war 
the  only  available  supply  for  the  eastern  market  of  the  United  States 
was  that  of  Margarita.  Cheap  ocean  freight  is  afforded  by  steamers 
returning  from  Curagao  after  discharging  coal.  Prior  to  the  war, 
magnesium  was  shipped  to  the  United  States  from  Europe  as  ballast, 
at  a  cost  of  $8  per  ton  for  the  crude  product,  the  low  price  being  due 
to  the  low  freight  rate.  Crude  magnesite  of  first  quality  was  never 
below  $10  per  ton  at  Atlantic  ports  of  the  United  States.  Calcined 
magnesia  was  worth  $28  per  ton  in  Philadelphia  three  and  four  years 
ago,  while  in  1918  its  value  was  $45  per  ton.  Crude  magnesite  was 
selling  for  $30  a  ton  f .  o.  b.  New  York  during  the  war,  but  this  price 
does  not  reflect  the  market  value  under  normal  conditions  of  freight 
rates,  etc. 

On  the  property  of  the  Magnesite  Products  Co.  there  are  said  to 
be  300,000  tons  exposed  in  veins  1,230  yards  long  by  6  feet  wide  for  a 
depth  of  400  feet,  forming  a  triangle  in  the  hills.  An  analysis  of  this 
material  showed  .the  following  result : 

Per  cent. 

Magnesia  oxide 48. 31 

Lime  (calcium) .43 

SiUca ^ .46 

Carbon  dioxide 50.03 

Loss .53 

The  cost  of  mining  and  handling  was  given  as  follows : 

Per  ton. 
Mining $0. 75 

Overhead .  50 

Royalty .20 

Loading  and  handling .  50 

Contingent .25 

2.20 
Freight  to  United  States 3. 50 

Total 5. 70 

The  growth  of  the  magnesium  industry  in  Europe  has  been  very 
great,  tne  product  being  used  in  the  industries  for  construction  pur- 
poses, and  in  the  arts,  and  this  condition  has  been  reflected  in  the 
iJnited  States  by  large  imports  of  crude  magnesite  and  the  manu- 
facture of  magnesium  carbonate,  magnesia  oxide,  magnesia  chloride, 
and  magnesia  sulphate.  American  imports  are  valued  at  $2,000,000 
a  year  for  the  crude  material,  the  average  values  being  given  as  $7.76 


MiNlNa, 


91 


per  ton  at  New  York  and  Philadelphia,  while  the  selling  price  of  the 
calcined  magnesia  varies  between  $25  and  $30.  Two  tons  of  crude 
magnesia  are  required  to  produce  1  ton  of  calcined  magnesia,  the  cost 
of  reduction  being  less  than  $1  per  ton  plus  $1.50  for  barrels,  making 
the  total  cost  for  1  ton  of  the  calcined  product  about  $18. 

The  material  is  used  in  the  manufacture  of  carbon  dioxide,  oxy- 
chloride  cement,  refractory  brick,  toilet  carbonate  of  magnesia,  citrate 
of  magnesia,  sulphate  of  magnesia  (Epsom  salts),  and  caustic  mag- 
nesia, which  when  combined  with  magnesia  chloride  produces  an  ad- 
hesive, resilient,  nonexpanding,  nonabsorbing,  sanitary  artificial 
stone  of  great  durability  and  strength.  This  last-mentioned  branch 
of  the  industry  consumes  the  greater  part  of  the  material.  Oxv- 
chloride  cement  is  used  in  hospitals,  office  buildings,  floors,  decks 
of  ships,  etc. 

At  the  present  time  magnesia  is  produced  in  the  United  States  only 
in  California,  where  the  veins  are  small  and  the  cost  of  production 
of  the  clean  product  is  high.  The  Margarita  deposit  lies  in  a  soft, 
decomposed  serpentine  formation,  where  it  can  be  handled  easily  by 
steam  shovels  or  other  mechanical  excavating  equipment. 

In  1917  exports  of  magnesia  from  Margarita  totaled  about  $200,- 
000,  according  to  the  Venezuelan  Government  statistics.  The  latest 
reports  show  that  there  were  about  2,000  tons  on  the  loading  dump  at 
Galera  Bay,  but  that  the  deposit  was  not  being  actively  worked. 

The  deposit  on  Margarita  Island  has  always  been  characterized  as 
the  highest  grade  of  magnesia  as  yet  discovered  in  the  world. 


,       T 


PETROLEUM. 

Although  Venezuela  is  probably  a  potentially  large  producer  of  oil, 
its  petroleum  production  at  the  present  time  is  small,  principally  be- 
cause of  the  fact  that  as  vet  there  has  been  but  little  actual  develop- 
ment. At  the  end  of  the  nrst  half  of  1920  the  gross  production  of  the 
country  had  reached  the  total  of  162.829  metric  tons  (1  metric  ton= 
2,204.6  pounds),  all  of  which,  with  tne  exception  of  151  metric  tons, 
had  been  produced  by  one  company,  the  Caribbean  Petroleum  Co. 
The  remainder  is  from  the  wells  of  a  native  Venezuelan  company, 
La  Compaiiia  Petrolea  del  Tachira.  The  total  production  of  the 
Caribbean  Petroleum  Co.  in  1919  was  165,972  barrels,  and  in  the  first 
nine  months  of  1920  it  was  approximately  373,600  barrels.  As  a  con- 
tribution to  the  oil  supply  of  the  world  this  quantity  is  not  large,  but 
it  will  undoubtedly  be  increased  when  more  of  the  oil  companies  now 
engaged  in  exploration  and  development  work  begin  active  pro- 
duction. 

LOCATION  OF  OIL  FIELDS— QUALITY  OF  DEPOSITS. 

Mr.  Frederick  G.  Clapp,  speaking  before  the  American  Institute 
of  Mining  Engineers  at  St.  Louis  in  October,  1917,  classified  the 
petroleum  fields  of  Venezuela  as  follows : 

Caribbean  district  (in  the  vicinity  of  Lake  Maracaibo) :  1.  In  the 
district  of  Mara,  near  the  River  Liman  asphalt  lake,  where  oozings 
of  petroleum  cover  considerable  areas.  2.  Bella  Vista,  near  the  city 
of  Maracaibo.  3.  In  the  district  of  Sucre,  on  the  eastern  shore  of 
Lake  Maracaibo,  where  signs  of  petroleum  have  been  found  asso- 
ciated with  asphalt  deposits.  4.  On  the  Sardinate  River,  extending 
into  Colombia,  where  petroleum  is  developed  on  a  small  scale  and 
sold  locally.  5.  In  the  district  of  Colon,  in  the  State  of  Zulia,  south 
of  Lake  Maracaibo,  this  being  the  largest  and  most  accessible  field 
in  Venezuela  developed  at  present.  6.  The  Peri j  a  field,  50  miles  west 
of  Lake  Maracaibo. 

Orinoco  district,  Pedernales  field.  This  field  is  situated  in  the  delta 
of  the  Orinoco  River,  at  the  place  where  one  of  its  northernmost 
mouths  empties  into  the  Gulf  of  Paria.  It  includes  portions  of  the 
islands  of  Capure,  Pedernales,  and  Plata. 

The  petroleum  of  Venezuela  occurs  in  many  places  in  connection 
with  asphalt  deposits,  several  of  which  have  been  exploited  for  a 
number  of  years.  The  largest  and  most  prominent  of  these  deposits 
is  the  Bermudez  Asphalt  Lake,  near  Guanaco,  3  miles  from  the 
mouth  of  the  Guanaco  River,  which  joins  the  San  Juan  River  about 
32  miles  from  its  mouth.  It  is  about  1,000  acres  in  extent,  being 
larger  in  area  than  the  famous  Trinidad  asphalt  lake,  but  much 
shallower.  These  asphalt  deposits,  together  with  smaller  seepages  of 
oil  and  asphalt  and  mud  volcanoes,  form  the  chief  indications  of 
petroleum  m  Venezuela. 

The  petroleum  discovered  thus  far  has  been  of  varied  quality.  In 
one  instance  the  oil  was  thin  enough  to  flow  readily,  having  a  spe- 

92 


PBTKOLETTM. 


93 


94        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

cific  gravity  at  150°  C.  of  0.8837  (Baume  29),  while  another  deposit 
was  very  thick,  being  of  the  color  and  consistency  of  coal  tar. 

DIFFICULTIES  RETARDING  DEVELOPMENT. 

Active  exploration  of  the  petroleum  resources  of  Venezuela  was 
begun  in  1912  by  both  British  and  American  interests.  Development 
since  that  time  has  been  greatly  retarded,  principally  by  the  lack  of 
transportation  facilities.  In  the  solution  of  the  problem  of  netting 
machinery  to  the  well  site  and  of  gettir^  the  oil  to  market  lies  the 
key  to  the  oil  industry  in  Venezuela.  There  are  no  roads,  or  even 
tracks,  in  those  parts  of  the  coimtry  where  oil  is  found;  roads  have, 
to  be  cut  through  thick  jungle  growth.  There  is  a  scarcity  of  labor, 
which  has  to  be  brought  from  some  distance  to  the  oil  fields.  Camps 
have  to  be  built  and  goods  transported  for  the  maintenance  of  the 
labor  force.  All  these  are  items  of  great  expense,  and,  aS  a  result, 
further  development  will  of  necessity  be  on  a  large  scale. 

The  most  important  feature  of  the  transportation  situation  has 
been  the  difficulty  in  getting  the  oil  out  of  the  country.  In  the 
whole  of  the  developed  oil  district  there  is  only  one  port,  Maracaibo, 
and  at  this  point  there  is  a  bar,  the  maximum  depth  of  water  over 
which  is  12  feet,  making  entrance  into  the  large  shallow-water  bay 
called  Lake  Maracaibo  possible  only  for  steamers  of  12  feet  loaded 
draft.  The  approach  to  the  harbor  is  long  and  winding,  and  the 
position  of  the  sand  banks  is  continually  shifting,  so  that  the  dredg- 
ing of  a  permanent  deep  channel  would  be  an  undertaking  of  enor- 
mous cost  and  its  maintenance  would  involve  heavy  upkeep  charges. 
The  use  of  lighters  is  made  impossible  by  the  roughness  of  the  sea 
outside  of  the  port.  It  is  possible  that  this  difficulty  might  be  over- 
come as  it  has  been  in  some  parts  of  Mexico  by  the  use  of  pipe  lines 
running  out  to  sea.  Suitable  anchorages  on  this  part  of  the  coast, 
however,  are  extremely  scarce,  and  the  pipe  lines  running  from  the 
oil  fields  to  the  coast  must  cover  enormous  distances. 

The  sanitary  conditions  in  some  parts  of  the  oil  region  are  bad. 
Where  the  country  is  open  to  the  winds,  little  fault  can  be  found  on 
this  score,  but  the  sheltered  and  marshy  districts  are  malarial  and 
productive  of  fevers.  Employees  of  the  development  companies  have 
suffered  from  illness  caused  by  mosquito  bites,  although  this  evil  has 
been  alleviated  by  covering  the  swamps  with  oil.  .  As  a  result  of  ex- 
port restrictions  during  the  late  war  the  oil  companies  experienced 
great  difficulty  in  securing  supplies  and  materials  with  which  to 
carry  on  their  operations,  and  there  was  little  progress  in  petroleum 
development.  Despite  these  difficulties  exploration  activities  have 
continued  at  a  rapid  rate.  Great  sums  have  been  expended  by  the 
few  companies  that  have  heretofore  taken  part  in  the  development  of 
the  country's  resources.  That  these  expenses  will  be  justified  is  the 
belief  of  a  number  of  prominent  geologists  in  the  emplov  of  these 
companies,  practically  all  of  whom  agree  as  to  the  wealth  of  the 
Venezuelan  deposits. 

COMPETITION  BETWEEN  BRITISH  AND  AMERICAN  INTERESTS. 

* 

It  is  admitted  that  strong  competition  exists  in  the  Venezuelan  oil 
field  between  British  and  American  interests.  At  the  present  time 
British  interests  strongly  predominate.    Of  the  12  oil  companies 


PETROLEUM.  95 

holding  property  in  Venezuela,  at  least  7  are  under  British  control, 
in  most  cases  through  the  Royal  Dutch  Shell  group  and  Barber  As- 
phalt interests  of  Philadelphia.  Although  considerable  areas  are  in 
American  hands,  the  only  producing  company,  although  incorporated 
in  the  United  States,  is  controlled  by  British  interes*^s.  A  number  .of 
large  American  companies  have  had  representatives  in  Venezuela  for 
several  years  past,  and  have  conducted  geological  explorations,  but 
as  yet  have  not  proceeded  to  develop  their  holdings.  Among  all  the 
oil  companies  in  the  field  there  are  only  five  that  have  begun  ex- 
ploitation of  wells,  and  of  these  only  one  that  has  produced  in  ex- 
portable quantities.  The  others  are  of  recent  formation  and  are  still 
engaged  in  exploration  work. 

(Note. — ^The  foUowing  history  of  oil  developments  In  Venezuela  is  based  on 
a  report  submitted  to  Minister  Preston  McGoodwin,  and  published  in  Commerce 
Reports  for  Oct.  7, 1916,  the  information  in  which  has  been  made  current. ) 

CARIBBEAN  PETROLEUM  CO. 

The  Caribbean  Petroleum  Co.  is  affiliated  with  the  Barber  Asphalt 
Paving  Co.,  of  Philadelphia,  with  ownership  vested  in  the  General 
Asphalt  Co.,  which  is  a  subsidiary  of  the  Barber  interests,  and  the 
Koyal  Dutch  Shell  group,  through  the  Anglo-Saxon  Petroleum  Co. 
(Ltd.),  of  London,  the  latter  organization  controlling  the  sales  of 
the  company.  Substantial  American  capital  is  also  involved.  In 
1912  this  company  acquired  from  the  General  Asphalt  Co.  the  con- 
cession known  as  the  Rafael  Max  Valladares  concession  (also  "Tre- 
gelles"),  granted  to  the  original  holders  December  14,  1909.  Dur- 
ing 1912  and  1913  it  employed  a  force  of  35  trained  and  experienced 
geologists,  assisted  by  a  number  of  Venezuelan  engineers,  who  covered 
nearly  every  foot  of  the  country  included  in  the  concession,  which 
called  for  exploration  of  a  total  of  27,697,000  hectares  (1  hectare= 
2.47  acres),  of  which  a  total  of  1,028  lots,  located  in  the  extreme 
western  and  eastern  parts  of  the  Republic,  have  been  retained  after 
the  two  years  spent  in  exploration.  Each  area  or  lot  measures  500 
hectares. 

For  its  preliminary  work  the  company  selected  two  sections  foi 
drilling,  one  on  each  side  of  Lake  Maracaibo,  State  of  Zulia,  in  the 
extreme  northwestern  part  of  Venezuela.  In  one  of  these  sections, 
known  now  as  the  Mene  Grande  field,  situated  16  miles  from  San 
Lorenzo  on  the  eastern  shore  of  Lake  Maracaibo,  about  60  miles  south- 
east of  the  city  of  Maracaibo,  there  are  now  seven  flowing  wells,  all 
producing  in  good  quantity  and  ranging  in  depth  from  600  to  1,700 
feet.  Material  for  this  field  had  to  be  transported  through  swamps 
from  the  lake  over  a  road  built  by  the  company.  Properly  screened 
houses  were  erected  for  the  employees.  Drilling  with  three  rigs  was 
commenced  in  January,  1914.  Of  the  seven  producing  wells,  five  are 
capped,  only  two  being  allowed  to  flow  at  the  present  time.  Enough 
work  has  been  done  here  to  prove  that  this  is  a  commercial  field.  The 
other  areas  in  the  eastern  part  of  the  country  are  being  explored  for 
oil,  and  test  drilling  is  going  forward  in  the  neighborhood  of  the  town 
of  Maturin,  State  of  Monagas. 

The  field  selected  for  exploration  and  drilling  on  the  western  side 
of  Lake  Maracaibo  is  about  50  miles  from  the  lake.  It  was  necessary 
to  build  a  road  for  the  transportation  of  materials  over  a  level  but 


96        VENEZUELA :  A  COMMEKCIAL  AND  INDUSTRIAL  HANDBOOK. 

heavily  wooded  country.  Equipment  was  delivered  for  drilling  three 
wells.  Two  wells  were  put  down  to  a  depth  of  1,000  feet  and  aban- 
doned prior  to  April,  1915.  In  June,  1916,  work  was  started  on  four 
additional  wells,  none  of  which  gave  favorable  results. 

.The  company  is  developing  areas  in  other  sections  of  the  country, 
as  it  is  required  to  do  under  its  contract  with  the  Government  of 
Venezuela.  Although  the  section  on  the  west  side  of  Lake  Mara- 
caibo  undoubtedly  contains  oil  in  commercial  quantities  (as  has  been 
shown  by  subsequent  drilling  operations  by  other  companies  farther 
south),  past  production  has  been  so  small  as  to  make  impossible  any 
predictions  as  to  future  possibilities.  One  well,  known  as  Zambapalo, 
drilled  to  a  depth  of  1^227  feet,  came  in  with  a  large  production,  but 
later  became  choked  with  sand.  This  district  is  known  as  the  Peril  a 
field. 

The  Caribbean  Petroleum  Co.  owns  the  only  refinery  in  the  country, 
which  it  has  erected  at  San  Lorenzo,  the  shipping  point  on  Lake 
Maracaibo,  and  connected  with  its  walls  in  the  Mene  Grande  field 
by  a  6-incn  pipe  line,  16  miles  in  length.  As  all  of  the  crude  oil 
exported  from  Venezuela  has  come  from  the  wells  of  this  company, 
so  also  all  the  refined  petroleum  products  exported  have  come  from 
its  refinery  at  San  Lorenzo.  The  specific  gravity  of  the  fuel  oil  sold 
from  the  refinery  is  about  980°,  Baume  scale  13°,  viscosity  68,  and 
asphalt  content  80  per  cent.  The  crude  oil  used  has  a  gravity  of 
16°  Baum6  scale,  and  gas  oil  30°  Baume  scale.  The  commercial  gaso- 
line runs  as  high  as  71°  Baume,  and  kerosene  about  39°  to  41°  Baume. 

The  output  in  metric  tons  of  the  San  Lorenzo  for  the  three  years 
ended  June  30, 1920,  is  given  in  the  following  table ; 

[Metric  ton=2,205  pounds.) 


Products. 


Oasdiine 

Benzine 

Mineral  turpentine. 

Kerosene 

Qasoil 

Distillate 

FueloU 


Year  ended  June  30— 


1917  a 


Metric  tons. 
219.7 


479.1 

327.5 

99.6 

4,041.8 


1918 


Metric  tons. 
1, 130. 1 


2,089.7 
935.2 
234.2 

12,650.2 


1919 


Metric  tons. 

1,926.6 

7.4 

9.3 

2,803 

455.4 

52.1 

38, 186. 1 


1920  » 


Metric  tons. 
1,312.9 


1,274.1 
203.6 


26,185.2 


Total. 


Metric  tons. 

4,589.3 

7.4 

9.3 

6,645.9 

1,921.7 

385.9 

81,063.3 


a  Second  half  of  year. 


t>  First  half  of  year. 


The  annual  exportation  in  metric  tons  of  crude  oil  and  refined 
products  during  the  same  periods  was  as  follows : 


Products. 

\ear  ended  June  30— 

1917a 

1918 

1919 

1920  & 

Total. 

Crude  oil 

Metric  tons. 

Metric  tons. 
2,309.1 
4,392.1 

Metric  tons. 

2,iea7 

12,256.1 

Metricians. 

Metric  tons. 

4,460.8 

29,089.9 

Fuel  oil 

80}.  8 

11,636.8 

5.0 

142.1 

175.7 

Gas  oil 

5.0 

Kerosene 

7.5 
14.6 

149.6 

Gasoline 

19a  3 

a  Second  half  of  year. 


b  First  half  of  year. 


PETROLEUM.  97 

The  above  table  includes  the  crude  oil  and  products  shipped  to 
Curasao,  Dutch  West  Indies,  where  there  is  a  large  refinery,  erected 
and  owned  by  the  Royal  Dutch  Shell  group  and  handling  a  large 
part  of  the  Venezuelan  production. 

The  Caribbean  Petroleum  Co.  has  taken  special  interest  in  the  de- 
velopment of  a  domestic  market  in  Venezuela  for  the  products  of  its 
refinery.  In  1919  the  company  sold  in  Venezuela,  for  domestic  con- 
sumption, a  total  of  3,318,086  liters  of  kerosene  (1  liter=0.264  gal- 
lon), 2,186,271  liters  of  gasoline,  1,350  liters  of  mineral  turpentine, 
and  306  liters  of  benzine.  The  following  prices  per  metric  ton, 
f.  o.  b.  refinery  at  San  Lorenzo,  were  quoted  for  September,  1920 
(1  bolivar  =  $0,193): 

Bolivars. 

Gasoline ^ 1, 130.  5 

Kerosene 977.5 

Gas  on 341.  7 

Engine  dlstUlate i 341. 7 

Mineral   turpentine 1, 543. 6 

Benzine . 2, 083. 5 

Fuel  oil 66 

The  residual  fuel  oil  produced  is  much  too  heavy  to  be  used  in  any 
internal  combustion  fuel-oil  engine  of  either  true  Diesel  or  semi- 
Diesel  type,  containing  as  it  does  about  80  per  cent  asphalt,  unless  a 
mixture  be  made  of  the  fuel  oil  and  the  gas  oil  in  order  to  obtain  the 
right  proportion.  A  domestic  market  for  this  is  found,  however, 
in  the  Compafiia  de  Navegacion  Venezolana,  wiiich  is  now  using  fuel 
oil  in  all  its  steamers,  and  in  the  La  Guaira-Caracas  Railway,  which 
has  also  recently  adopted  this  fuel.  Gasoline  costs  35  cents  per  gal- 
lon at  wholesale  at  the  refinery  at  San  Lorenzo,  and  retails  for  34  to 
36  bolivars  ($6.56  to  $6.95)  per  case,  in  10-gallon  cases,  in  Caracas 
and  other  distributing  points  in  the  country. 

Besides  the  refinery  at  San  Lorenzo,  this  company  has  erected  three 
storage  tanks  of  55,000  barrels  each  at  San  Lorenzo,  another  tank  at 
Puerto  Cabello  of  30,000  barrels  capacity,  and  two  at  La  Guaira  of 
30,000  barrels  each,  equipped  with  the  necessary  shore  lines  for 
pumping  direct  from  barges.  These  tanks  are  used  for  supplying 
local  and  coastwise  trafiic.  The  company  has  two  seagoing  tugs  and 
two  SOO-ton  oil  barges  in  service  between  these  tanks  and  San 
Lorenzo. 

In  1919  the  Caribbean  Petroleum  Co.  paid  the  Venezuelan  Govern- 
ment the  following  taxes: 

Bolivars. 

Minimum  tax  of  exploitation 265,  650 

Surface  tax 133, 078 

Exploitation  tax 91,  82T 

Tax  on  kerosene  (one-half  of  import  duty) 618,576 

Tax  on  gasoline  (one-half  of  import  duty) 75,110 

Tax  on  mineral  turpentine 260 

Tax  on  benzine 10 

Total 1, 184,  511 

The  total  investment  to  date  of  the  Caribbean  Petroleum  Co.  in 
Venezuela,  including  construction  and  development  work,  is  well 
over  $6,000,000  in  United  States  gold. 

79747^—22 8 


98        VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

COLON  DEVELOPMENT  CO. 

The  Colon  Development  Co.  is  also  owned  by  the  Eoyal  Dutch 
Shell  group  and  the  General  Asphalt  Co.,  through  the  fiurlington 
Investment  Co.  (LtdJ,  of  London.  A  one-quarter  interest  is  in  the 
hands  of  the  Carib  Syndicate,  an  American  concern.  Its  holdings 
comprise  4,500,000  acres  in  the  district  of  Colon,  State  of  Zulia,  on 
the  Rio  del  Oro,  south  and  southwest  of  Lake  Maracaibo.  Under 
what  is  known  as  the  Andres  Jorge  Vigas  concession,  originally 
granted  January  3, 1907,  to  be  effective  for  50  years,  this  English  cor- 
poration commenced  drilling  operations  early  in  1914.  Encounters 
with  roving  bands  of  Motilones  Indians  at  first  made  geological  ex- 
ploration difficult,  and  it  was  found  necessary  to  maintain  a  force 
of  armed  guards  at  the  drilling  camps  and  with  the  exploring  parties. 
Development  was  started  about  100  miles  from  the  nearest  settle- 
ment, and,  although  there  are  rivers  for  the  transportation  of  ma- 
chinery  and  ec^uipment,  it  was  necessary  to  spend  large  sums  in  de- 
livermg  material  on  the  ground.  The  first  well  was  started  in  the 
latter  part  of  1914,  but  after  the  company  had  experienced  consider- 
able difficulty  with  drills  and  laborers,  it  was  abandoned  at  a  depth 
of  700  feet.  A  second  well  was  drilled  on  the  Rio  Oro,  and  oil  of 
light  gravity  was  produced  at  a  depth  of  1,000  feet;  the  initial 
capacity  was  said  to  be  about  200  barrels  per  day. 

A  total  of  six  wells,  ranging  in  depth  from  900  to  1,600  feet,  have 
been  drilled  by  this  company  in  the  Eio  Oro  and  Rio  Tarra  sections ; 
there  are  at  present  four  producing  wells,  believed  to  have  a  total 
capacity  of  4,000  to  5,000  barrels  per  day.  These  four  wells  have 
been  thoroughly  proven  and  are  capped  awaiting  transportation  by 
pipe  line.  They  produce  a  high-grade  light  oil  of  paraffin  base, 
having  a  gravity  of  36.4°  Baume.  Other  means  of  transportation 
must  be  provided  and  the  company  is  now  engaged  in  building  roads 
for  that  purpose. 

VENEZUELAN  OIL  CONCESSIONS  (LTD.). 

On  February  28,  1907,  a  contract  was  granted  to  Gen.  Antonio 
Aranguren  for  the  development  of  asphalt  in  the  district  of  Bolivar, 
State  of  Zulia,  and  on  July  18, 1912,  a  decree  was  issued  by  the  Gov- 
ernment of  Venezuela,  bestowing  upon  the  concessionaire  the  addi- 
tional right  to  exploit  petroleum.  Some  question  has  been  raised 
as  to  the  legality  of  this  decree,  but  notwithstanding  protests  made 
by  other  oil  companies,  it  has  been  allowed  to  stand.  In  the  latter 
part  of  1913,  after  geological  investigation,  it  was  transferred  to 
the  Venezuelan  Oil  Concessions  (Ltd.),  an  English  corporation, 
subsidiary  to  the  Royal  Dutch  Shell  group  and  General  Asphalt  Co., 
with  the  majority  of  the  stock  in  the  hands  of  the  Burlington  In- 
vestment Co.  (Ltd.),  of  London.  The  Aranguren  concession  com- 
prises 7,610  square  miles  in  the  district  of  Maracaibo,  on  the  west 
side  of  Lake  Maracaibo,  and  in  the  district  of  Bolivar,  on  the  east 
side  of  the  lake.  The  concession  is  to  be  effective  for  50  years  from 
the  date  of  the  grant. 

Four  drillers  and  an  office  staff  were  sent  out  from  London  with  a 
field  superintendent  late  in  1913.  Two  wells  were  started  immedi- 
ately, one  on  the  shore  of  Lake  Maracaibo,  at  a  point  called  Santa 


PETROLEUM.  99 

Rita,  and  the  other  in  the  swamp  just  to  the  south  of  Santa  Rosa, 
also  located  on  the  shore  of  the  lake.  Drilling  in  the  Santa  Rita  well 
was  carried  to  a  depth  of  1,600  feet  without  any  trace  of  oil  having 
been  encountered.  At  Santa  Rosa  an  oil  sand  of  good  promise  was 
found  at  800  feet,  and  at  1,500  feet  another  sand  was  found  which 
produced  oil  of  about  20°  Baum4  gravity.  Upon  the  striking  of  this 
last  sand  a  great  quantity  of  oil  was  produced,  but  10  days  after  the 
strike  the  production  was  not  more  than  10  barrels  a  day.  Appar- 
ently no  attempt  has  been  made  to  pump  this  well,  and  it  seems  to 
have  been  abandoned.  In  1918  and  1919  five  more  wells  were  drilled 
by  this  company,  one  on  what  is  known  as  the  Santa  Barbara  Tract 
No.  1  in  1918,  sunk  to  a  depth  of  more  than  1,400  feet  and  said  to 
contain  oil  in  commercial  quantity.  On  the  tract  known  as  Santa 
Barbara  No.  2,  four  wells  were  drilled  in  1919,  in  one  of  which. 
No.  4,  drilled  to  a  depth  of  1,700  feet,  oil  in  commercial  quantity  was 
found.  The  estimated  production  was  18  tons,  or  about  119  barrels 
per  day.  Both  of  these  proven  wells  are  located  in  the  Bolivar 
district  of  the  State  of  Zulia  and  are  capped  until  better  means  of 
transportation  can  be  provided. 

BRITISH-CONTROLLED  OILFIELDS  (LTD.). 

On  July  22,  1907,  there  was  granted  what  is  known  in  Venezuela 
as  the  Bernabe  Planas  Concession  for  development  of  oil  in  the  dis- 
trict of  Buchivacoa  in  the  State  of  Falcon.  After  it  had  been  offered 
for  sale  for  a  number  of  years  an  option  was  given  in  1913  to  a 
British  company,  the  Venezuelan  lalcon  Oil  Syndicate  (Ltd.). 
After  investigations  and  exploration  lasting  about  one  year  this  com- 
pany agreed  to  start  development  work,  which  is  under  way  at  the 
present  time.  The  work  was  retarded  at  first  by  considerable  sick- 
ness among  the  men  in  the  field,  due-  to  the  difficulty  of  keeping  them 
protected  from  the  dangerous  malarial  mosquito  found  in  this 
locality.  Also,  about  the  middle  of  1914  it  was  realized  that  the 
system  used  in  drilling  was  not  suited  to  conditions,  and  orders  for 
drilling  equipment  were  placed  in  the  United  States.  Further  oper- 
ations were  hampered  by  the  outbreak  of  the  European  War.  Al- 
though the  work  has  been  carried  on  continually  it  has  been  done 
with  a  limited  force,  and  no  satisfactory  results  have  been  obtained. 
In  five  out  of  the  seven  wells  drilled,  oil  has  been  found  at  depths 
varying  from  600  to  1,800  feet  and  scattered  over  a  considerable  area. 
One  well  is  producing  oil  at  1,800  feet,  but  only  in  small  quantities, 
and  it  is  understood  that  the  company  intends  to  go  deeper  with  it. 
At  least  two  others  give  promise  of  good  production.  A  great  deal 
of  preliminary  work  has  been  done  on  this  property.  Roads  have 
been  constructed  to  the  sites  of  the  first  wells  and  dwelling  houses 
for  employees  have  been  erected.  Drilling  is  being  done  in  both 
standard  and  rotary  work. 

The  territory  held  by  this  company  covers  between  6,000,000  and 
7,000,000  acres,  and  has  a  large  frontage  on  the  Caribbean  Sea.  In 
January,  1918,  the  British-Controlled  Dilfields  (Ltd.)  was  formed, 
being  registered  in  Canada  and  affiliated  with  the  Anglo-Persian  Co., 
of  London.  The  Venezuelan-Falcon  Syndicate  was  then  absorbed  by 
this  new  company,  as  was  also  a  firm  known  as  the  Bolivar  Conces- 
sions (Ltd.),  which  held  the  principal  properties  in  the  States  of 


100     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Zulia  and  Falcon  now  being  worked  by  the  British-Controlled  £)il- 
fields  (Ltd.).  Reports  of  geologists  regarding  this  tract  of  3,000 
square  miles  fronting  on  the  Caribbean  oea  show  many  evidences  of 
the  existence  of  petroleum  throughout  large  areas  of  the  concession. 
Anticlinal  lines  exist  from  northeast  to  southwest,  well  defined  for 
a  distance  of  50  miles,  and  showing  noticeable  convex  formations. 
Seepages  of  oil  were  found  on  hilltops  bare  of  vegetation,  together 
with  rich  oil  sands,  which  lead  to  the  belief  that  this  area  contains 
oil  in  commercial  quantities. 

BERMUDEZ  CO. 

On  July  14,  1910,  the  General  Asphalt  Co.,  which  owned  the  large 
deposits  known  as  Bermudez  Lake,  obtained  a  concession  for  the 
oil  rights  in  the  vicinity  of  the  lake  and  also  on  the  island  of  Peder- 
nales  and  the  peninsula  of  Paria.  This  concession,  originally  ob- 
tained in  1910  by  R.  M.Valladares,  was  transferred  to  a  subsidiary 
of  the  asphalt  companv  called  the  Bermudez  Co.  Soon  after  ac- 
quiring the  right  the  Bermudez  Co.  sent  a  force  of  10  geologists 
over  its  concession  and  finally  selected  19  areas  of  500  hectares  each 
in  the  viciiiity  of  the  asphalt  lake,  6  areas  on  the  peninsula  of  Paria, 
and  4  areas  on  the  island  of  Pedernales.  The  terms  of  the  Bermudez 
concession  called  for  almost  immediate  exploitation  of  all  areas  se- 
lected. By  June,  1913,  wells  were  being  drilled  on  all  of  the  29 
areas.  On  the  six  areas  of  the  peninsula  of  Paria  wells  were  sunk 
deep  enough  to  demonstrate  the  impossibility  of  producing  oil  in 
commercial  quantities,  and  all  of  them  were  abandoned.  At  Peder- 
nales the  company  sunk  seven  wells,  ranging  in  depth  from  200  to 
1,000  feet,  occasionally  finding  oil,  but  not  in  sufficient  quantities. 
In  this  region  the  company  encountered  great  difficulty  on  account  of 
heaving  sands,  soft  mud,  and  gas  pressure,  all  of  which  made  it 
necessary  for  the  company  to  adopt  several  methods  of  drilling. 

In  the  Guanoco  areas  wells  have  been  sunk  to  varying  depths  from 
200  to  4,200  feet.  In  some  of  them  heavy  oil,  almost  asphalt,  has 
been  found,  and  always  in  fair  quantities,  but  too  heavy  to  pump. 
Two  more  wells  were  started  in  this  region  in  1916,  but  as  yet  no 
commercial  results  have  been  obtained.  The  company  has  also  done 
considerable  geological  work  to  locate  a  proper  place  to  drill  where 
it  is  thought  oil  will  be  found,  as  it  is  still  believed  to  exist  in  large 
quantities  in  this  region.  The  operations  of  this  company  have  been 
extremely  difficult  because  nearly  all  of  the  wells  in  the  three  regions 
described  are  located  in  swamps,  and  it  has  been  necessary  to  lay 
portable  tracks  on  trestles  to  transport  drilling  equipment  and  ma- 
terials. The  general  camp  of  the  companv  was  located  at  the  same 
place  as  the  headquarters  of  the  General  Asphalt  Co.,  where  several 
hundred  employees  are  maintained,  but  the  field  camps  have  been  in 
unhealthful  places,  and  considerable  sickness  among  the  men  has  re- 
sulted. The  total  area  retained  by  this  company  for  oil  exploration 
and  drilling  work  is  4,500  hectares. 

PAUJI  CONCESSION. 

On  January  16,  1909,  a  petroleum  concession  was  granted  to  Joa- 
;  quin  Briceiio  on  3  hectares  of  land  adjoining  a  place  £iown  as  Pauji, 


PETROLETTM.  lOl 

30  miles  east  of  Lake  Maracaibo.  This  right  was  doubtless  secured 
on  account  of  the  abundant  evidences  of  asphalt  seepages,  which  are 
numerous  in  that  locality.  A  company  was  formed  in  1916  in  the 
city  of  Maracaibo  with  a  large  nominal  capital,  but  with  only  about 
$50,000  for  actual  work.  This  company  is  known  as  the  Compaiiia 
Anonima  Petrolifera  de  Minerales  del  Rio  Pauji.  Its  property  now 
covers  about  300  hectares  of  land  located  about  22  kilometers  (1 
kilometer^O.621  mile)  southeast  of  the  Mene  Grande  field  of  the 
Caribbean  Petroleum  Co.  The  money  provided  was  soon  exhausted 
after  a  small  drill  rig  had  been  put  on  the  ground  and  work  started, 
and  an  American  company  has  been  negotiating  for  the  property 
recently. 

COMPAfJtA  PETROLEA  DEL  TACHIRA. 

The  Companf a  Petrolea  del  Tachira  is  the  oldest  authentic  oil  con- 
cession in  Venezuela,  having  been  granted  by  the  State  of  Tachira 
in  1884  and  ratified  by  the  National  Congress.  The  property  lies 
just  south  of  the  mouth  of  the  Rio  Catatumbo,  and  the  company  has 
actually  been  selling  petroleum  products  for  a  number  of  years  to 
the  surrounding  districts.  Production  is  from  open  seepages  and 
refining  by  the  crudest  possible  means. 

NORTH  VENEZUELAN  PETROLEUM  CO.  (LTD.). 

The  North  Venezuelan  Petroleum  Co.  (Ltd.)  is  a  British  corpora- 
tion controlled  by  the  Central-  Mining  &  Investment  Corporation 
(Ltd.).  It  has  recently  acquired  the  jBrancisco  Jiminez  Arraiz  con- 
cession, originallv  granted  July  3,  1907,  and  covering  100  hectares 
in  the  districts  oiAcosta,  Zamora,  and  Silva,  State  of  Falcon. 

MARACAIBO  OIL  EXPLORATION  CO. 

The  Maracaibo  Oil  Exploration  Co.  is  an  American  corporation 
organized  in  the  autumn  of  1919.  It  has  made  four  locations,  all  in 
the  State  of  Zulia,  the  principal  locations  being  in  the  district  of 
Parija,  at  Los  Barrosos,  adjoining  Lake  Maracaibo.  Its  holdings 
total  more  than  750,000  acres,  and  options  are  held  on  other  lands 
totaling  more  than  110,000  acres.  As  under  the  Venezuelan  mining 
law  no  one  person  or  company  is  allowed  to  hold  more  than  80,000 
hectares  or  197,680  acres  of  land,  four  subsidiary  companies  have 
been  formed.  They  are  the  Mara  Oil  Exploration  Co.,  the  Miranda 
Exploration  Co.,  the  Paez  Exploration  Co.,  and  the  Peri j a  Explora- 
tion Co.  These  companies  have  as  yet  only  exploration  contracts 
with  the  Government.  Camps  have  been  established  and  drilling 
machinery  is  due  to  arrive  at  Maracaibo. 

COLOMBIAN  PETROLEUM  CO. 

The  Colombian  Petroleum  Co.  is  controlled  by  Henry  L.  Doherty, 
of  New  York.  It  holds  a  concession  in  the  Lake  Maracaibo  district 
which  consists  of  37,500  acres.  This  company  also  has  a  large  con- 
cession on  the  Venezuelan-Colombian  boundary  line  (partly  in  Co- 
lombia and  partly  in  territory  in  dispute  between  Colombia  and 
Venezuela),  which  consists  of  more  than  1,000,000  acres  and  is  con- 
sidered by  some  to  be  the  most  valuable  concession  in  South  America. 


102     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

VENEZUELA  OILFIELDS  CO.  (LTD.). 

One  of  the  last  companies  to  enter  the  Venezuelan  field  is  the 
Venezuela  Oilfields  Co.  (Ltd.),  incorporated  early  in  1920  in  the 
State  of  Delaware.  This  companjr  is  owned  by  the  Sun  Oil  Co.,  of 
Philadelphia,  which  is  financed  entirely  by  American  capital.  It  has 
entered  this  field  on  a  large  scale,  and  its  Venezuelan  organization 
is  known  as  the  Andean  oun  (Ltd.).  It  has  formed  the  following 
11  subsidiary  companies,  each  having  the  exploration  rights  on  the 
maximum  allowance  of  approximately  80,000  hectares :  V  enezuelan 
Oilfields  Co.  (Ltd.) ;  Bolivar  Oilfields  (Ltd^) ;  Carabobo  Oilfields 
(Ltd.);  Escalante  Oilfields  (Ltd.);  Merida  Oilfields  (Ltd.);  San 
Cristobal  Oilfi^d^s  (Ltd.) ;  Sucre  Oilfields  (Ltd.) ;  Trujillo  Oilfields 
(Ltd.) ;  Tachira  Oilfields  (Ltd.) ;  Venezuela  Sun  (Ltd.) ;  and  the 
Zulia  Oilfields  (Ltd.). 

While  this  company  has  some  large  concessions  in  the  State  of 
Falcon,  most  of  its  territory  is  located  at  the  south  end  of  Lake 
Maracaibo.  It  already  has  in  Maracaibo  a  force  of  21  Americans, 
consisting  of  geologists,  engineers,  and  office  men,  who  have  estab- 
lished themselves  and  commenced  operations.  The  company  has 
opened  offices  at  Maracaibo  and  a  new  camp  near  Valera,  toward 
Trujillo. 

BRITISH  EQUATORIAL  CORPORATION  (LTD.). 

Another  company  which  has  recently  entered  this  field  is  the 
British  Equatorial  Corporation  (Ltd.).  This  is  a  company  the 
capital  of  which  is  claimed  to  be  approximately  50  per  cent  American 
and  50  per  cent  British.  The  American  interest  is  owned  by  the 
Southern  Oil  &  Transport  Corporation,  with  offices  in  New  York. 
This  corporation  has  extensive  oil  interests  in  Mexico  and  operates  a 
shipbuilding  plant  for  the  construction  of  tank  steamers  in  the 
United  States.  The  British  capital  invested  in  this  undertaking  is 
said  to  be  interested  in  the  Scottish-American  Corporation.  This 
organization  has  purchased  outright  the  rights  pertaining  to  a  num- 
ber of  concessions  in  the  Maracaibo  district  that  were  originally 
granted  to  Venezuelans,  and  has  secured  options  on  several  more.  In 
this  district  it  owns  and  has  options  on  19  concessions  and  in  the 
State  of  Monagas,  opposite  Trinidad,  it  has  purchased  5  concessions 
and  has  an  option  on  1  more.  The  concessions  that  this  company 
will  explore  in  the  Maracaibo  district  are  all  located  on  Lake  Mara- 
caibo, and  as  it  expects  to  have  a  number  of  tank  steamers  at  its 
disposal,  it  should  make  rapid  progress  in  its  development  work. 

VARIOUS  AMERICAN  COMPANIES. 

Several  American  companies,  other  than  those  mentioned  above, 
have  had  representatives  in  Venezuela  for  several  years,  and  the  West 
India  Oil  Co.  has  recently  sent  a  large  party  of  geologists  and 
engineers  into  the  interior  districts.  Among  these  other  companies 
may  be  mentioned  the  Texas  Co.,  the  Gulf  Oil  &  Transport  Co.,  the 
Sinclair  Exploration  Co.,  and  the  New  England  Petroleum  Co. 

OIL  LAND  NOT  UNDER  CONCESSION. 

Recent  developments  have  been  so  rapid  that  it  is  impossible  here 
to  state  the  amount  of  oil  land  in  Venezuela  not  yet  covered  by  con- 


PETROLEUM.  103 

cessions.  In  January,  1920,  it  was  estimated  that  about  25  per  cent 
of  the  promising  land  in  the  Lake  Maracaibo  Basin  was  still  open  to 
concession.  This  meant  at  that  time  that  there  was  about  7,000  square 
miles  for  which  concessions  could  be  applied,  but  a  large  part  of  this 
has  probably  been  taken  up  during  1920.  There  are,  however,  other 
sections,  such  as  in  the  State  of  Falcon,  consisting  of  9,000  to  10,000 
square  miles,  as  well  as  some  in  eastern  Venezuela,  west  of  Trinidad, 
in  which  as  yet  little  exploration  work  has  been  done,  and  in  which 
concessions  could  probably  be  bought.  The  usual  price  paid  for  a 
concession  in  a  wild  and  untested  region  is  between  $1  and  $2  a 
hectare  (2.471  acres). 

REFINERY  AT  CURACAO. 

Of  great  encouragement  to  the  development  of  the  Venezuelan  oil 
industry  has  been  the  construction,  previously  mentioned,  of  a  large 
refinery  by  the  Royal  Dutch  Shell  group  at  Curagao,  Dutch  West 
Indies,  267  miles  from  Maracaibo.  Because  of  the  navigation  difficul- 
ties encountered  in  entering  the  port  of  Maracaibo  it  is  probable  that 
Curasao  is  destined  to  become  the  transshipment  point  for  practically 
all  the  oil  taken  out  of  Venezuela.  All  the  petroleum  products  pro- 
duced so  far  by  the  Caribbean  Petroleum  Co.,  with  the  exception 
of  that  refined  at  the  company's  San  Lorenzo  plant,  has  been  handled 
at  this  Curagao  refinery,  which  has  been  able  to  sell  bunker  oil  to 

gassing  vessels  more  cheaply  than  it  can  be  obtained  at  either  the 
anama  Canal  or  New  York. 

The  company  owning  this  refinery  is  known  as  the  Curagao  Pe- 
troleum Co.  The  refinery  was  constructed  at  a  cost  of  over  $2,000,000 
and  has  in  its  employ  more  than  1,000  men.  It  is  capable  of  handling 
1,400  barrels  of  oil  per  day.  New  ocean-going  tugs  and  barges  are 
being  supplied  for  the  transport  service  from  Venezuela,  and  large 
consignments  of  crude  oil  are  also  being  received  from  Mexico. 

PETROLEUM  LAW  OF  VENEZUELA. 

Present  petroleum  operations  in  Venezuela  are  conducted  under  the 

Provisions  of  the  latest  petroleum  and  coal  law,  the  "  Ley  de  Minas ; 
tey  sobre  Hydrocarburos  y  Demas  Minerales  Combustibles,"  of  June 
19,'  1920.  In  commenting  on  this  new  legislation  it  may  be  stated 
that  the  outstanding  principle  is  that  the  Government  o^  Venezuela 
controls  the  subsoil,  subject  to  the  provisions  of  the  mining  law,  and 
all  contracts  for  the  exploration  and  exploitation  of  coal  ana  pe- 
troleum have  to  be  made  with  the  Government  through  the  Ministry 
of  Fomento  (Development).  The  fundamental  principles  of  the  law 
appear  to  be  those  of  affording  a  just  basis  of  contract  with  the  Gov- 
ernment for  the  exploitation  of  these  natural  resources  of  the  country 
and  of  stimulating  such  development  by  native  and  foreign  capital. 
No  restrictions  are  placed  on  forei^  companies  other  than  subjection 
to  the  Venezuelan  laws  and  courts  in  all  things  concerning  the  obliga- 
tions'contained  in  their  contracts  and  the  strict  prohibition  of  diplo- 
matic recourse  in  the  same  connection.  Free  right  of  transfer  of 
contracts  and  concessions  is  provided  for.  aU  foreign  companies 
must  also  be  legally  constituted  in  Venezuela. 

The  Government  reserves  to  itself  for  direct  working  or  future 
contract  with  others  every  alternate  section  (parcel  of  200  hectares) 


104     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

contracted  for  exploitation  in  tracts  already  held  for  exploration 
purposes.  In  this  manner  the  Government  retains  one-half  of  the 
proven  oij-bearing  lands  of  the  country  for  future  development,  thus 
insuring  reserves  for  the  future.  The  law  also  gives  to  the  Executive 
ample  power  to  regulate,  in  the  future,  such  reserves  or  to  contract 
for  their  exploitation,  or  to  remove  lands  from  entry  when  desired 
for  national  policy.  The  same  law  makes  special  permission  of  the 
Federal  Executive  necessary  for  the  exploration  or  exploitation  of 
oil  or  coal  lands  in  the  beds  of  navigable  streams,  bottom  of  lakes, 
or  marine  islands  under  the  direct  control  of  the  Executive. 

Owners  of  old  contracts  and  concessions  for  coal  and  petroleum 
lands  are  protected  by  the  new  law  during  the  terms  of  their  con- 
tracts, which  are  subject  to  the  terms  of  their  agreements  then  made 
and  the  mining  laws  and  regulations  in  force  at  the  time  their  con- 
tracts were  made.  Owners  of  the  land  are  also  protected,  inasmuch 
as  they  are  given  one  year  from  the  date  of  publication  of  the  new 
law  (June  19,  1920)  in  which  to  make  declaration  of  intention  to 
explore  for  oil  or  coal  or  similar  substances  and  secure  a  contract  with- 
out payment  of  the  superficial  tax  otherwise  provided.  Such  land- 
owners making  application  for  exploration  contracts  are  exempt 
from  the  provision  limiting  the  holdings  of  any  one  person  or  com- 
pany to  80,000  hectares,  provided  the  land  in  their  possession  exceeds 
this  amount.  After  the  first  year  the  land  can  be  located  for  explora- 
tion or  exploitation  purposes  by  third  parties,  according  to  the  law. 

TAXES— FUTURE  OF  INDUSTRY. 

The  taxes  as  fixed  by  the  new  law  are  as  follows : 

Exploration  tax: 

Coal  and  oU  lands 0.  75  bolivar  per  hectare  per  year. 

Oil  lands  only 0.  50  bolivar  per  hectare  per  year. 

Coal  lands  only 0.  25  bolivar  per  hectare  per  year. 

Fixed  exploitation  tax : 

Coal  and  oil  lands 2, 000  bolivars  per  parcel  of  200  hectares. 

Coal  or  oil  lands 1,000  bolivars  per  parcel  of  200  hectares. 

(The  above  exploitation  tax  is  a  fixed  superficial  tax,  paid  but  once.) 
Annual  exploitation  tax : 

Coal  and  oil  lands 1, 400  bolivars  per  parcel  per  year. 

Oil  lands  only 1,000  bolivars  per  parcel  per  year. 

Coal  lands  only 400  bolivars  per  parcel  per  year. 

Production  tax — 15  per  cent  of  the  raw  product  in  cash  value  or  specie. 
Refinery  tax — One-half  of  estimated  import  duties  on  products  sold  in  the 
country  for  domestic  consumption. 

The  effect  of  the  new  law  and  taxation  therein  provided  for  will  be 
that  oil  or  coal  lands  can  not  be  held  indefinitely  as  reserves  by  any 
large  company  willing  to  pay  the  surface  taxes  to  hold  the  ground 
for  possible  future  operations,  because  the  lands  contracted  for  must 
be  explored  within  a  fixed  period  of  time.  Exploitation  operations 
must  also  begin  within  a  fixed  time  thereafter  and  continue  without 
interruption  unless  justifiable  reasons  for  not  doing  so  are  shown. 
The  Government  is  also  assured  an  income  from  the  activities  of  the 
oil  companies  and  receives,  eventually,  the  benefit  of  all  exploration 
and  development  work  done  on  properties  adjacent  to  reserves  held 
by  the  nation;  The  attitude  of  the  Government  may  be  said  to  be 
that  of  protection  of  the  national  interests — at  the  same  time  pro- 


PETROLEUM.  105 

yiding  an  equitable  medium  of  exploitation  and  stimulation  of  the 
industry. 

Total  investment  to  date  in  Venezuelan  oil  exploration  and  drilling 
work  is  estimated  at  $60,000,000,.  and  as  yet  the  industry  may  be  said 
to  be  in  its  infancy  so  far  as  contribution  to  the  world's  supply  of 
oil  is  concerned.  Recent  developments,  particularly  by  American 
companies,  have  taken  on  vast  proportions,  and  it  is  estimated  that 
within  the  next  five  years  approximately  $30,000,000  will  be  expended 
by  them  in  Venezuela.  The  oil  companies  have  generally  accepted 
the  new  legislation  as  favorable  and  are  proceeding  with  their  work 
on  that  basis,  and  it  may  be  predicted  that  the  next  10  years  will 
see  still  greater  development  than  the  past  20  years  in  Venezuela. 
It  is  too  early  to  predict  that  the  northern  coast  of  Venezuela  will 
rival  the  Tampico  fields  of  Mexico,  but  drilling  operations  in  Falcon 
and  the  far  western  part  of  Zulia  during  the  next  few  years  will  go 
far  toward  fixing  Venezuela's  status  as  an  oil-producing  country. 

[Note. — Copies  of  the  translation  of  the  Venezuelan  coal  and  petroleum  law 
are  available  for  distribution  and  can  be  secured  upon  application  to  the  Bureau 
of  Foreign  and  Domestic  Commerce,  or  its  district  or  cooperative  offices.  Refer 
to  me  No.  43914.] 


LIVE  STOCK  AND  CATTLE  RAISING- 
SURVEY  OF  DEVELOPMENT. 

Cattle  raising  may  be  termed  one  of  .the  basic  industries  of  Vene- 
zuela, horned  cattle  having  been  introduced  by  the  Spaniards  from 
Andalusia  during  early  colonial  times.  In  1804  there  existed  in  the 
country  1,200,000  head  of  beef  cattle,  but  during  the  wars  of  inde- 
pendence and  the  subsequent  internal  disturbances  this  number  was 
reduced  to  256,000.  In  1901  there  were  about  2,000,000  head  in  all 
parts  of  the  country,  and  the  number  was  estimated  in  1920  at  2,600,- 
000.  Requiring  a  minimum  of  labor,  the  industry  received  much 
more  attention  formerly  than  other  industries  of  the  country,  but 
was  conducted  in  a  more  or  less  haphazard  manner,  little  attention 
being  paid  to  modern  breeding  methods  or  to  the  care  of  the  stock. 
There  are  about  1,300  cattle  owners  in  Venezuela,  and  the  total  invest- 
ment may  be  said  to  reach  approximately  $22,000,000. 

Two  former  Presidents  of  Venezuela,  Guzman  Blanco  and  Crespo, 
were  the  first  to  undertake  the  improvement  of  the  industry  on  a  large 
scale,  and  their  efforts  are  being  carried  on  by  Gen.  Gomez ;  he  and 
his  associates  are  to-day  the  largest  stock  owners  of  the  country  and 
practically  control  the  industry.  Gen.  Gomez  is  very  much  inter- 
ested in  solving  the  problem  of  crossbreeding  to  produce  the  best 
acclimated  breed  for  the  country,  and  his  lead  is  being  followed  by 
a  group  of  cattle  owners,  with  the  result  that  considerable  improve- 
ment in  both  breeding  and  pasturage  has  been  obtained  already.  A 
considerable  number  of  pure-blood  animals  have  been  imported  from 
time  to  time  by  the  larger  owners,  and  very  good  half-blood  stock 
can  now  be  purchased  in  the  country  for  breeding  up  native  stock  in 
the  more  outlying  districts  of  the  industry. 

CATTLE-RAISING  AREAS  OF  THE  COUNTRY. 

On  account  of  the  enormous  areas  of  open,  level  land  in  Venezuela, 
covering  one-third  of  the  total  area  of  the  Republic  and  containing 
120,000  square  miles,  cattle  farming  has  been  regarded  as  potentially 
the  preeminent  industry  of  the  country  and  capable  of  great  devel- 
opment, it  being  said  by  various  writers  that  the  plains  of  Venezuela 
can  support  50,000,000  head  of  beef  cattle.  Such  a  statement  may  be 
true  as  regards  the  actual  area  of  level  and  accessible  land,  but  there 
are  other  factors  and  difficulties  that  make  such  a  realization  ex- 
tremely improbable  for  many  years  to  come.  Generally  speaking, 
these  factors  have  to  do  with  the  climatic  conditions  prevailing 
throughout  the  cattle  country  and  with  the  peculiar  conditions  affect- 
ing the  supply  of  natural  grasses  on  the  great  plains.  There  is  not 
sufficient  feed  for  the  stock  during  the  entire  year,  there  being  really 
only  two  good  feeding  seasons  on  the  plains — ^both  of  short  duration. 
Also,  this  is  not  a  short-grass  country,  the  natural  grasses  being  of  a 
large,  coarse,  hard  kind,  which  the  stock  can  not  eat  when  burned  dry 
by  the  hot  sun  and  winds  during  more  than  half  of  the  year. 

106 


I  < 


LIVE  STOCK  AND  CATTLE  RAISING.  107 

While  stock  fanning  is  more  or  less  general  all  over  the  country — 
horned  cattle  being  found  in  all  sections  except  the  more  arid  lands 
of  the  States  of  Lara  and  Falcon,  the  higher  reaches  of  the  Andes, 
and  the  low,  swampy,  hot  lands  of  the  Lake  Maracaibo  Basin  and  the 
Delta  Amacuro — the  cattle  country  proper  stretches  from  the  border 
of  the  delta  of  the  Orinoco  (the  Vagre  Kiver  being  the  dividing  line), 
in  the  extreme  eastern  portion,  to  the  line  of  the  Western,  or  Vene- 
zuelan, Andes  in  the  west,  and  again  southwest  to  the  Casanare  Eiver 
country  in  Colombia. 

For  all  practical  purposes  to-day  the  cattle  country  proper  may 
be  said  to  extend  from  the  inland  division  of  the  Caribbean  Coast 
Range  south  to  the  line  of  the  Orinoco,  a  distance  of  approximately 
200  miles,  the  length  being  about  600  miles  from  the  line  of  the 
Andes  to  the  delta  of  the  Orinoco. 

Cattle  range,  equal  or  superior  to  the  "llanos,"  as  this  area  is 
called,  is  found  in  several  places  south  of  the  Orinoco  where  the 
land  is  higher  in  elevation  and  free  from  the  annual  floods  of  the 
lower  llanos  north  of  the  river.  The  average  elevation  above  sea 
level  of  the  great  plains  north  of  the  river  is  650  feetj  while  to  the 
south  the  range  is  about  1,000  feet  above  sea  level.  However,  these 
areas  are  not  developed,  with  the  exception  of  a  few  ranches  in  the 
region  of  Cuchiveros  and  Caicara.  lying  south  of  the  Orinoco. 

Between  the  coast  ranges  of  Caracas  and  Barcelona  the  llanos 
reach  the  sea  for  a  considerable  distance,  but  this  area  adjacent  to 
the  sea  has  not  been  developed  or  used  as  a  natural  outlet  except 
at  the  Port  of  Guanta,  which  ships  cattle  brought  in  overland  from 
the  district  of  Maturin.  The  other  outlet  to  the  sea  is  by  way  of 
Maracay,  via  San  Juan  de  Los  Morros  and  Villa  Cura,  thence  to 
Valencia,  and  then  through  the  pass  of  the  Coast  Range  to  Puerto 
Cabello. 

In  appearance  the  llanos  resemble  great  grass  plains,  in  many 
places  stretching  away  to  the  horizon,  but  here  and  there  in  the  cen- 
tral part,  broken  by  higher  mesas  or  low  plateaus,  beginning  in  the 
west  with  the  mesa  of  Santa  Clara,  north  of  Caicara,  and  extending 
in  a  continuous  series  eastward  and  northward  to  form  the  watershed 
between  the  Orinoco  and  the  Unare-Aragua  Basin',  which  drains 
into  the  Caribbean  west  of  Barcelona.  The  lowest  part  of  the  llanos 
is  found  to  the  west  of  this  chain  of  table-lands,  in  the  valley  of  the 
Portuguesa,  the  lower  part  of  which  has  large  tracts  not  over  300 
feet  above  sea  level. 

CLIMATE  OF  THE  LLANOS. 

While  severe  drought  is  experienced  over  the  entire  area  of  these 
plains  during  the  winter  months,  the  heavy  rains,  particularly  in  the 
western  regions,  produce  floods  over  the  low-lying  plains,  the  mesas 
being  dry  at  all  times.  The  whole  area  is  traversed  by  numerous 
streams,  more  or  less  dry  in  the  dry  season,  but  forming  swamps  and 
flooded  areas  during  and  immediately  following  the  rainy  season, 
when  the  cattle  take  refuge  on  the  "  islands,"  called  "  bancos,"  and 
the  higher  elevations,  the  "  mesas."  These  plains  are  neither  prairie 
nor  desert,  but  hold  rather  an  intermediate  position,  varying  toward 
one  or  the  other  according  to  the  season  of  the  year. 


108     VENEZUELA :  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 

In  the  extreme  western  part  of  the  plains  the  rains  begin  at  times 
in  late  April,  and  continue  until  October.  The  usual  rainy  season 
is  about  one  month  later  in  the  eastern  part.  The  precipitation 
varies  greatly  with  the  year,  but  may  be  said  to  average  about  40 
inches  for  the  entire  year,  although  certain  areas  in  the  west  receive 
probably  60  inches  of  rain,  the  character  of  the  topography  being 
such  that  this  amount  is  sufficient  to  allow  the  water  of  the  main 
rivers  to  back  up  into  the  tributaries  and  flood  vast  areas.  It  is 
probable  that  during  the  latter  part  of  a  heavy  rainy  season  more 
than  a  third  of  the  entire  area  is  under  water  to  a  greater  or  less 
depth.  These  flooded  areas  have  every  appearance  of  swamps,  being 
soon  covered  with  a  rank  vegetation  and  water-plant  growth,  in- 
habited by  crocodiles,  alligators,  snakes,  fish,  and  fowl. 

The  other  most  important  factor  of  the  climate  of  the  llanos  is 
that  of  the  trade  wind,  which  blows  across  from  east  to  west,  lessen- 
ing the  terrible  heat  of  the  plains  during  the  day  in  the  eastern  part 
nearer  the  sea.  The  best  part  of  the  llanos,  so  far  as  climatic  con- 
ditions are  concerned,  lie  around  (but  more  especially  to  the  west 
of)  Maturin,  in  the  State  of  Monagas. 

It  is  hard  to  understand  that  the  lack  of  water  is  one  of  the  chief 
diflSculties  encountered  in  stock  farming,  or  even  travel  in  the  llanos. 
In  the  wet  season  there  is  of  course  plenty  of  water,  but  during  the 
dry  season  the  streams  and  swamps  soon  dry  up  and  the  stock  have 
to  travel  great  distances  to  get  enough  water  to  drink.  The  soil  is 
generally  very  shallow  and  sandy,  the  higher  mesas  being  covered 
with  gravel,  and  the  moisture  is  not  held. 

FEED  FOR  THE  CATTLE— NATURAL  GRASSES,  ETC. 

As  has  been  said,  the  great  cattle  plains  of  Venezuela  are  not  a 
short-grass  country,  the  natural  grasses  being  very  large,  coarse, 
and  hard  when  dry,  and  growing  in  bunches.  The  cattle  feed  readily 
only  on  the  green  shoots  at  the  beginning  of  the  rainy  season,  during 
the  period  before  the  lower  areas  become  flooded,  and  during  the 
latter  part  of  the  rainy  season  or  the  beginning  of  the  dry  season, 
before  the  hot  Winds  and  sun  have  parched  the  plains,  making  the 
grass  too  coarse  and  hard  for  the  cattle  to  eat.  During  the  height 
of  the  wet  season  the  cattle  are  forced  to  move  from  one  high  area 
to  another,  often  wading  through  long  distances  of  swampy  land 
to  reach  these  places  of  refuge,  where  the  feed  is  soon  exhausted  and 
the  cattle  begin  to  suffer.  As  the  waters  recede  the  cattle  follow  the 
drying  margins  of  the  flooded  areas,  eatirig  the  still  green  shoots  left 
there,  and  this  is  one  of  the  most  prolific  causes  of  disease  among  the 
stock  on  account  of  the  fact  that  the  flooded  areas,  covered  with 
aquatic  growth,  soon  become  foul.  Only  during  two  short  periods 
of  the  year  do  the  cattle  get  enough  grass  to  eat,  and  the  content  of 
even  this  feed  is  mostly  water. 

GENERAL  CONDITIONS. 

In  review  it  may  be  stated  that  the  chief  difficulties  of  stock  raising 
on  the  llanos  of  Venezuela  are  the  lack  of  sufficient  grass  for  pastur- 
age all  the  year  round  and  the  lack  of  water  in  the  dry  season  of  the 
year,  combined  with  the  extremely  hot  climate  and  its  attendant  ills. 


LIVE  STOCK  AND  CATTLE  RAISIKG.  109 

Disease  epidemics  among  the  stock  are  of  rather  frequent  occurrence, 
and  the  ticks  are  bad  during  the  rainy  season. 

The  llanos  are  for  the  most  part  uninhabited,  except  for  the  few 
•  small  towns  and  villages  in  the  western  half,  and  labor  is  very  scarce 
and  hard  to  secure,  even  for  stock-farming  work.  Horses  are  few 
in  number  and  of  very  poor  grade,  and  even  mules  do  not  stand  the 
climate  well  and  are  worth  twice  and  three  times  as  much  as  in  the 
Caracas  region.  Most  of  the  ranch  work,  such  as  looking  softer  the 
stock,  drivmg,  etc.,  is  performed  by  "  peons  "  on  foot — not  mounted, 
as  is  customary  in  the  United  States,  because  the  mounts  are  too 
scarce  and  expensive  as  a  rule,  especially  in  the  southern  part  of  the 
plains.  A  mounted  cowboy  receives  a  wage  of  12  bolivars  ($2.32) 
per  day  (mount  included),  a  large  amount  when  it  is  considered  that 
the  average  wage  paid  a  farm  hand  in  the  Valencia  farming  country 
is  only  3  bolivars  ($0.58)  per  day.  Labor  can  not  be  readily  attracted 
to  the  plains  on  account  of  the  climatic  conditions,  as  the  men  soon 
succumb  to  the  malaria  so  prevalent  throughout  this  region. 

The  problem  of  feed  is  being  worked  out  by  means  of  pastures  of 
planted  grass,  such  as  the  Para  and  guinea,  located  at  the  edge  of  the 
plains,  near  Maracay  and  Valencia,  where  the  cattle  from  the  llanos 
are  brought  in  by  easy  stages  across  the  plains  and  held  for  condi- 
tioning before  being  sent  either  to  the  packing  house  at  Puerto  Ca- 
bello,  to  the  Caracas  market,  or  to  the  ports  of  Guanta  or  Puerto 
Cabello  for  export  on  the  hooi.  This  development  is  being  continued 
in  the  region  of  San  Carlos  southwest  of  Valencia,,  and  its  adoption 
is  being  considered  by  the  British  cattle  company  which  recently 
invested  heavily  in  Venezuelan  cattle  lands,  since  it  had  been  found 
that  there  was  not  sufficient  natural  pasturage  to  support  the  cattle 
properly  throughout  the  year.  The  lack  of  pasturage  in  the  llanos 
proper  means  tnat  it  takes  months  to  drive  stock  across  the  plains  to 
the  market  outlet  near  the  coast,  arid  any  undertaking  to  develop  the 
industry  on  a  large  scale  would  necessitate  the  provision  of  chains  of 
artificial  pastures  over  the  route  to  the  coast  from  the  interior,  in 
which  the  cattle  could  be  held  in  easy  stages  as  they  came  along. 

Gen.  Gomez  and  his  friends  and  associates  have  gradually  acquired 
the  suitable  lands  in  and  around  Valencia  and  Maracay,  and  thereby 
control  the  outlet  to  the  market  centers  by  reason  of  owning  the 
holding  ground  for  conditioning  the  stock  brought  in  from  the  plains 
farther  to  the  south.  These  interests  also  plan  the  erection  of  a 
new  packing  house  at  the  harbor  of  Ocumare  de  la  Costa  or  Turiama 
Bay ;  these  places  lie  east  of  Puerto  Cabello  and  just  to  the  north  of 
Maracay,  with  which  they  are  connected  by  a  road  over  the  pass  of 
the  Coast  Range.  Plans  include  the  construction  of  an  electric 
railway  over  this  route.  The  investment  in  these  holding  and  con- 
ditioning pastures  reaches  about  $1,000,000  to  date,  and  the  amount 
is  being  rapidly  augmented. 

EXPORTS  OF  CATTLE  FROM  VENEZUELA. 

Exports  of  live  beef  cattle  from  Venezuela  started  in  1881,  when 
1,825  head  were  sent  to  Cuba  and  other  islands  of  the  West  Indies. 
The  number  gradually  increased  until  in  1901  a  total  of  60,000  head 
were  exported,  but  this  number  includes  all  kinds.  Exports  of  beef 
cattle    in    1915    were    18,339    head,    valued    at    1,499,000    bolivars 


110     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

($289,307) ;  about  the  same  number  were  shipped  in  1916  and  1917, 
but  in  1918  there  was  an  increase  to  19,020  head,  valued  at  1,540,000 
bolivars  ($297,220).  Frozen  meat  products  of  the  Puerto  Cabello 
packing  house  took  about  the  same  number  of  head  from  1915  until 
the  packing  plant  was  shut  down  in  1920. 

(For  further  details  of  cattle,  prices  paid,  exports  by  ports  and 
destination,  the  packing  house  at  I^uerto  Cabello,  etc.,  the  reader  is 
referred  to  the  reports  on  the  Caracas  and  the  Puerto  Cabello  and 
Valencia  commercial  districts.) 

FOREIGN  INVESTMENT  IN  CATTLE  IN  VENEZUELA. 

Suitable  cattle  lands  are  no  longer  open  for  location  under  the 
Government  public-land  provisions,  as  all  of  the  accessible  and  well- 
located  areas  have  long  been  taken  up  by  natives.  A  number  of 
the  titles  to  the  largest  ranches  come  down  from  the  old  Spanish 
land  grants  and  are  held  by  the  old  families  of  the  country.  To 
acquire  suitable  cattle  lands  in  Venezuela,  purchases  would  have  to 
be  made  from  the  present  owners. 

In  1917  the  Venezuela  Meat  Products  Syndicate  (Ltd.),  of  Lon- 
don, purchased  various  tracts  of  cattle  lands  in  Venezuela,  prin- 
cipally in  and  around  the  district  of  San  Fernando  de  Apure,  far  to 
the  south  of  Valencia  (the  distance  is  more  than  200  miles  overland), 
and  totaling  approximately  3,456,000  acres.  Previous  purchases  of 
cattle  lands  totaled  about  576,000  acres.  The  total  investment  was 
about  $5,000,000.  When  an  attempt  was  made  later  to  secure  lands 
for  holding  pasturage  near  the  outlet  of  the  llanos,  purchases  of 
250,000  acres  were  declared  void  by  the  Venezuelan  Government  and 
the  money  paid  in  advance  was  ordered  to  be  returned  to  the  com- 
pany. The  headquarters  of  the  company  (that  is,  of  the  land  ad- 
ministration) is  at  San  Fernando  de  Apure.  The  property  is  so  vast 
that  it  is  said  that  employees  of  the  company  have  never  inspected 
all  of  it  and  that  the  area  contains  many  miles  of  land  unknown  to 
the  white  man. 

The  development  of  this  vast  territory  in  cattle  involves  the  stock- 
ing of  the  range  with  native  and  crossbred  cattle,  the  establishment 
of  dipping  pens  and  range  quarters,  the  creation  of  artificial  pastur- 
age on  a  large  scale,  the  provision  of  water  supplies  for  the  dry  season 
away  from  the  permanent  streams,  and  last,  but  not  least,  the  develop- 
ment of  a  chain  of  large  pastures  leading  to  the  coast  or  the  packing 
house.  Labor  will  have  to  be  imported,  and  the  cost  of  1  acre  ot 
developed  and  fenced  Para  or  guinea  grass  can  be  reckoned  at  about 
$20.  The  company  faces  a  huge  investment  to  make  its  lands  prac- 
tical for  cattle  raising  on  a  large  scale. 

It  is  thought  that  the  high  bench  lands  which  lie  along  the  southern 
bank  of  the  Orinoco  above  Ciudad  Bolivar  and  the  northeastern 
part  of  the  llanos  in  the  State  of  Monagas  offer  the  best  opportuni- 
ties for  cattle  raising  now  left  open  for  foreign  investment.  A  pack- 
ing house  or  refrigeration  plant  has  been  advocated  for  Barrancas, 
where  the  river  would  serve  as  the  means  of  transportation  from  the 
ranges.  Ocean  steamers  of  1,500  tons  burden  can  come  up  the  Orinoco 
as  far  as  Barrancas  during  the  entire  year.  Such  a  proposition 
might  be  best  worked  out  in  combination  with  some  practical  scheme 
of  colonization. 


LIVE  STOCK  AND  CATTLE   RAISING.  Ill 

VENEZUELAN  SALTED  MEAT  IN  TRINIDAD. 

In  meeting  the  cost-of-living  problem,  Consul  Henry  D»  Baker  says, 
the  people  of  Trinidad  find  considerable  relief  in  the  plentiful  sup- 

?lies  of  cattle  on  the  llanos  of  the  neighboring  country  of  Venezuela. 
'he  retail  price  of  fresh  beef  or  veal  in  the  local  market  is  18  cents 
per  pound,  which  is  not  over  2  or  3  cents  higher  per  pound  than  the 
pre-war  price.  Such  fresh  meat  is  obtained  from  Venezuelan  cattle 
brought  to  Trinidad  by  boat  and  slaughtered  at  the  abattoir  in  Port 
of  Spain.  But  while  this  meat  is  cheap,  it  has  the  disadvantage  of 
beinff  taken  from  cattle  that  reach  Trinidad  from  Venezuela  in  poor 
condition  after  the  voyage,  and  in  still  poorer  condition  after  the  ani- 
mals have  been  in  local  quarantine  for  two  weeks.  Moreover,  the 
meat  is  usually  very  tough,  being  eaten  quickly  after  slaughter. 

An  interesting  new  method^  however,  has  been  put  into  effect  for 
providing  the  people  of  Trinidad  with  meat  from  Venezuela,  taken 
from  cattle  slaughtered  under  sanitary  conditions  before  leaving  that 
country  and  while  in  superior  condition,  and  boning  and  salting  the 
meat,  and  packing  in  such  a  way  that  it  reaches  Trinidad  still  full  of 
fat  and  juice,  and  in  a  most  tender  and  palatable  condition,  so  that  it 
meets  with  a  very  quick  and  ready  sale  at  16  cents  per  pound.  This  is 
2  cents  per  pound  less  than  the  price  for  fresh  meat,  but  the  real 
economy  is  very  much  greater,  as  the  weight  per  pound  represents  all 
solid  meat,  whereas  the  fresh  meat  sold  in  the  local  markets  contains 
a  large  proportion  of  bone  and  other  wastes.  The  large  estates  in 
Trinidad  are  especially  anxious  to  get  this  meat,  as  it  keeps,  under 
conditions  of  rural  transit  and  tropical  heat,  much  better  than  the 
ordinary  fresh  meat  from  Port  of  Spain. 

This  successful  experiment  with  the  salted  me^t  from  Venezuela 
originated,  Consul  Baker  says,  with  a  prominent  merchant  of  Port 
of  Spain,  Trinidad,  who  for  some  time  made  a  careful  study  of  the 
Venezuelan  cattle  and  meat  trade,  and  made  arrangements  at  Maturin, 
near  the  coast  of  the  Venezuelan  side  of  the  Gulf  of  Paria,  for  slaugh- 
tering cattle  and  preparing  the  beef  for  shipment  to  Trinidad. 

Only  oxen  are  at  present  used  for  this  purpose.  They  are  brought 
from  the  llanos  into  large  savannah  inclosures  about  1  mile  from 
Maturin,  are  pastured  on  luxuriant  grass  until  they  weigh  1,000 
pounds  or  over,  and  are  then  slaughtered.  The  carcasses  are  then  cut 
into  four  quarters,  temporarily  salted,  and  taken  to  another  depart- 
ment where  they  are  hung  on  iron  bars  and  allowed  to  drip.  The 
heads  are  taken  off  and  sold  at  40  cents  apiece  to  local  inhabitants. 
The  day  following  the  killing  and  overnight  dripping,  the  meat  is 
cut  away  in  slices  from  the  bones.  These  bones  are  sold  on  the  spot  to 
local  peasants  for  6  cents  per  pound.  The  heavy  side  portions  of  fat 
are  also  removed  and  sold  to  a  local  soap  factory  for  12  cents  per 
pound.  The  hides  are  shipped  to  Port  of  Spain,  where  they  are  sold 
to  local  tanneries  and  bring  25  to  26  cents  per  pound. 

The  meat,  after  having  been  sliced  from  the  bones  the  morning 
after  the  killing,  is  thoroughly  salted — about  25  bags  of  salt,  each 
weighing  about  100  pounds,  being  used  on  the  meat  portions  of  about 
every  30  oxen  slaughtered.  The  meat  is  then  bagged  (100  pounds 
each)  and  shipped  by  boat  down  the  Guanipa  Eiver  to  Cano  Colo- 
rado, on  the  Gulf  of  Paria,  where  it  is  transshipped  to  a  small  12-ton 
sloop  which  takes  it  to  Port  of  Spain  after  a  voyage  of  two  and  one- 


112     VENEZUELA:  A  OOMMEBCIAL  AND  INDUSTBXAL  HANDBOOK. 

half  days,  or  about  four  days  from  the  time  it  is  first  salted.  The 
sloop  which  takes  the  meat  to  Port  of  Spain  has  a  specially  con- 
structed tank  in  which  the  beef  is  packed  so  as  to  preserve  its  juiciness 
and  substance.  The  beef  arrives  at  Port  of  Spam  practically  fresh, 
but  is  resalted  after  arrival  and  is  then  in  a  condition  so  that  it  can 
be  readily  preserved  for  several  months. 

Some  of  the  meat  thus  brought  to  Port  of  Spain  is  put  into  barrels 
and  pickled,  following  as  closely  as  possible  the  American  process, 
the  beef  thus  pickled  presenting  a  fine  appearance  even  after  three 
months.  It  sells  for  18  cents  per  pound  locally  or  for  $18  for  100- 
pound  barrel.  Ox  tongues  are  especially  pickled  and  sell  for  20  cents 
per  pound. 

The  salted  beef,  prepared  as  described,  seems  to  preserve  quite  re- 
markably the  juices  and  flavor  of  the  beef  and  is  very  tender.  It  is 
made  into  many  attractive  local  dishes  aside  from  simply  bein^  served 
as  a  ^^  piece  de  resistance  "  meat  dish.  A  favorite  method  of  using  it  is 
to  wash,  boil,  and  shred  it,  and  mix  it  with  eggs,  making  a  dish  called 
"  tortilla,"  which  is  very  popular,  especially  with  Venezuelan  people. 
It  is  also  much  used  with  soup. 

The  average  price  of  live  oxen  in  Venezuela  is  4f  cents  per  pound, 
or  $47.50  apiece  for  each  ox  of  about  1,000  pounds.  Each  ox  gives 
about  400  pounds  of  boneless  meat,  sold  in  Port  of  Spain  for  16 
cents  per  pound  in  the  salted  state  in  which  it  arrives. 

It  seems  likely  that  the  business  may  rapidly  extend,  and  it  is 
already  considered  possible  that  trial  shipments  of  this  beef  may  be 
made  to  New  York  to  compete  with  high-priced  American  beef. 

It  seems  rather  surprising  that  the  enormous  llanos  of  Venezuela, 
with  their  tremendous  facilities  for  the  grazing  of  cattle,  have  thus 
far  contributed  only  in  a  comparatively  small  way  to  the  meat  supply 
of  the  world. 


FISHING  INDUSTRY. 

The  fishing  industry  of  the  north  coast  of  Venezuela,  in  the  neigh- 
borhood of  the  Margarita  group  of  islands,  is  undoubtedly  capable 
of  large  development  by  the  application  of  modern  methods.  Sar- 
dines, "  tuna  "  nsh,  mackerel,  herring,  and  codfish  run  in  season  be- 
tween the  islands  and  the  mainland  through  a  channel,  which  is  re- 
ported to  be  a  series  of  banks.  Several  years  ago  a  concession  was 
granted  by  the  Government  to  a  group  of  Venezuelans,  but  this  con- 
tract has  now  expired  and  the  Government  is  well  disposed  toward 
granting  another  concession  to  responsible  and  capable  people  who 
can  develop  the  industry  on  a  large  scale. 

Conditions  for  the  enterprise  on  Margarita  Island  are  excellent — 
including  favorable  climate,  good  harbors,  plenty  of  small  boats, 
and  an  abundance  of  cheap  labor.  There  is  no  question  about  the 
quantity  of  fish  available,  and  the  people  of  the  islands  are  good 
workers  and  expert  boatmen  and  fishermen.  The  fish  run  as  far 
east  as  Carupano;  this  port  and  Cumana  could  be  made  into  "col- 
lection ports."  The  market  for  the  product,  whether  cured,  dried, 
or  canned,  is  right  at  hand  in  the  West  Indies.  Several  years  ago, 
while  the  concession  was  still  in  force,  the  banks  were  investigated 
by  an  American  fisherman  from  the  Atlantic  coast  of  the  United 
States,  and  the  findings  were  so  favorable  that  a  site  was  secured  from 
the  local  government  for  a  plant,  but  later' the  terms  of  the  conces- 
sionaires^ were  found  to  be  so  exorbitant  that  they  were  not  met. 

It  is  understood  that  the  local  government  (State  of  Nueva  Es- 
parta)  will  cooperate  with  any  such  enterprise  and  lend  every 
assistance. 

The  fishing  industry  of  the  northern  coast  of  Venezuela  is  the 
subject  of  a  report  by  the  consul  of  Colombia  at  Carupano,  pub- 
lished in  the  Diario  Oficial,  from  which  the  following  abstract  is 
taken : 

In  the  island  of  Margarita  and  along  the  Venezuelan  coast  from 
Cmnana  to  Carupano  the  chief  industry  is  fishing,  salting  the  catch, 
and  drying  it  in  the  sun.  The  dried  fish  from  this  region  is  con- 
sumed in  the  interior  of  Venezuela,  while  the  coast  people  use  the 
fresh  fish  that  is  found  in  abundance  at  their  doors.  The  fish  estab- 
lishments consist  of  closed  buildings  for  the  storing  of  salt,  tools,  and 
foodstuffs,  with  quarters  for  the  workers  and  their  families,  and  open 
constructions  for  the  manipulation  of  nets,  boats,  oars,  and  fish. 
The  boats  are  of  all  sizes,  ranging  from  the  small  craft  handled  by 
one  man  to  the  large  ones  where  50  or  more  men  are  employed. 

The  boats  used  chiefly  are  those  called  skiffs  (esquifes)  constructed 
for  rapid  movement,  as  their  special  purpose  is  to  carry  the  nets  for 
catching  the  fish.  Indian  rowboats  are  also  used  in  this  industry. 
The  boat  is  given  a  circular  rotation  in  order  to  submerge  it  in  the 
sea  and  to  thke  it  out  quickly.    The  nets  are  of  different  forms  and 

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114     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

weaves,  according  to  the  size  of  the  fish  caught,  those  for  catching 
small  fish  having  fine  mesh  while  those  for  large  fish  have  a  coarse 
mesh,  permitting  the  escape  of  the  small  fish.  The  fish  most  com- 
monly caught  in  Venezuelan  waters  are  dog  fish,  saw  fish,  anchovies, 
shad,  sardines,  and  similar  species. 

The  fishermen  have  one  of  their  number  act  as  watchman,  and 
from  his  position  in  a  high  tower  or  mast  of  a  boat  he  watches  for 
the  approach  of  shoals  of  fish.  From  this  height  the  sea  is  very 
transparent  and  of  a  uniform  color,  across  which  the  fish  form  a 
dark,  cloudy,  moving  mass.  The  watchman  knows  by  the  movement 
what  kind  of  fish  is  approaching,  and  if  he  estimates  the  number  as 
sufficient  to  justify  a  catch  he  gives  notice  to  the  waiting  men,  who 
throw  their  boats  into  the  water  and  launch  their  nets.  One  end 
of  the  net  or  seine  is  fastened  to  a  strongly  planted  post,  to  which 
the  net  is  returned  after  it  has  made  a  circuit.  The  fish,  finding 
themselves  caught  in  the  net,  swim  in  the  opposite  direction,  which 
brings  them  to  shore  and  in  this  way  they  assist  in  the  operation  of 
the  seine.  When  the  boat  is  taken  to  shore  a  group  of  men  is  ready 
to  haul  in  the  net,  20  to  100  workmen  being  necessary,  according  to 
the  quantity  and  the  kind  of  fish. 

When  the  catch  is  large  and  is  composed  of  two  or  three  kinds  of 
fish,  the  shore  edge  of  the  seine  has  a  small-mesh  net  attached  to 
prevent  the  escape  of  the  fish  that  overflow  the  large  net. 

The  prices  of  fish  at  the  establishment  vary  according  to  the  pur- 
chasing power  of  the  customers,  and  also  according  to  the  abundance 
of  the  article.  The  unit  of  weight  in  general  use  is  the  arroba,  equal 
to  11.50  kilos  (25.3  pounds).  In  favorable  seasons  this  quantity  is 
worth  from  $0.80  to  $1.20  for  the  inferior  grade  of  fish.    The  best 

frade  sells  at  $1.20  to  $1.60  and  the  others  at  intermediate  prices, 
n  unfavorable  seasons,  however,  these  prices  are  nearly  doubled. 
The  personnel  of  the  establishment  attends  to  all  the  details  of 
making  and  mending  boats  and  nets,  as  well  as  catching,  cleaning, 
and  drying  the  fish.  Wages  vary  from  $20  per  month  for  foremen 
and  watchmen  to  $10  or  $8  for  other  men,  and  $4,  $2,  or  even  less 
for  boys.  This  is  in  addition  to  their  food,  which  consists  of  fresh 
fish  and  corn  bread  or  mush  or  bread  made  of  bitter  cassava  or 
manioc.  The  workman  usually  employed  is  the  crioUo  or  guai- 
queri,  who  is  very  frugal  and  very  strong. 


MANUFACTURING. 

The  chief  manufacturing  industry  in  Venezuela  is  that  of  the  cot- 
ton factories,  of  which  there  are  three  in  Caracas,  two  in  Valencia, 
one  in  Maracaibo,  and  one  in  Cumana.  These  factories  use  annually 
43,000  hundredweight  of  raw  ginned  cotton  and  produce  about  50 
per  cent  of  the  rough  common  cloth  used  in  the  country.  The  total 
investment  is  over  $2,000,000. 

Carriages  and  carts  are  made  in  the  country  in  the  various  princi- 
pal cities,  the  metal  fittings  and  upholstery  material  being  imported, 
however. 

Next  to  the  cotton  mills,  the  most  important  manufacturing  indus- 
try is  that  of  cigarette  making,  Caracas  having  three  large  tobacco 
factories  which  supply  practically  the  whole  country.  Native  to- 
bacco is  used  exclusively. 

There  are  three  large  breweries  in  Venezuela — ^that  of  Caracas, 
with  a  capacity  of  30,000  hectoliters  (1  hectoliter =26.42  gallons) 
a  year;  that  of  Maiquetia  (La  Guaira) ;  and  that  of  Maracaibo, 
which  supplies  the  western  part  of  the  country  tributary  to  the  Mara- 
caibo Basin. 

Two  factories  making  other  goods  compete  directly  with  the  im- 
ported articles.  These  are  the  paper  factory  at  Maracay,  which  uses 
domestic  raw  material  (a  species  of  coarse  grass  that  grows  in  the 
neighborhood),  and  the  paper  factory  at  Caracas,  called  the  Fabrica 
Nacional  de  Papel.  The  factory  at  Maracay  is  the  largest.  Both 
plants  turn  out  coarse  and  fine  wrapping  paper  for  the  domestic 
market. 

The  modern  dairy  plant  at  Maracay  is  turning  out  an  average  of 
300,000  pounds  of  butter  a  year,  the  product  being  sold  fresh  in  the 
Caracas  and  Valencia  markets  and  also  tinned  for  shipment  to  more 
distant  parts  of  the  country.  The  plant  is  also  equipped  for  cheese 
making  and  condensed-milk  manufacture,  and  it  has  its  own  can- 
making  shop. 

Practically  all  of  the  shoes  worn  in  Venezuela  are  made  in  the 
great  number  of  small  local  shops  in  the  various  towns  and  cities, 
the  fine  leathers  and  findings  being  imported  from  the  United  States, 
though  native  sole  leather  is  invariably  used.  One  modern  tannery 
connected  with  the  Telares  de  Carabobo  cotton  factory  in  Valencia  is 
turning  out  a  fine  grade  of  upper  leathers  from  calf  and  goat  skins* 
There  are  a  number  of  tanneries  scattered  throughout  the  country 
and  supplying  the  lieeds  of  the  population  for  sole  leather  for  the 
shoes  made  locally  and  for  the  much-used  native  "alpargata,"  or 
sandal,  which  has  a  leather  sole. 

All  the  cheap  grades  of  toilet  soap,  laundry  soap,  etc,  are  made 
in  Venezuela  by  the  many  soap  factories  which  use  the  domestic 
cottonseed  oil,  coconut  oil,  etc.,  produced  in  the  country — the  chemi- 
cals and  dyes  used  being  imported  since  the  war  from  the  United 
States,  though  Germany  formerly  supplied  the  largest  portion  of 

115 


116     VENEZUELA:  A  COMMERCIAL.  AND  INDUSTRIAL  HANDBOOK. 

these  articles  used  in  soap  making.  The  soap  factories  also  turn 
out  candles  for  domestic  consumption.  A  good  many  of  the  soap  fac- 
tories which  heretofore  have  paid  attention  only  to  the  cheaper  and 
coarser  grades  of  laundry  soap  are  now  making  fair  grades  of  per- 
fumed toilet  soaps,  which  are  beginning  to  compete  with  the  im- 
ported brands  long  known  and  used  in  the  country. 

Nearly  all  the  furniture  used  is  made  in  the  country  in  the  small 
shops  which  can  be  found  in  every  city  and  large  town.  Domestic 
hardwoods  and  cedar  are  used  by  the  native  artisans,  but  upholstery 
materials  are  imported. 

Flat  glass  is  imported,  but  a  local  factory  in  Caracas  is  making 
table  glassware,  crockery,  and  porcelain  ware  for  domestic  con- 
sumption and  is  competing  with  the  imported  articles. 

Chocolate  is  manufactured  in  the  country,  the  largest  factory,  in 
Caracas,  having  a  capacity  of  25,000  kilos  a  year  (1  kilo=2.2046 
pounds).  Venezuelan  sweet  chocolate  is  very  good  and  compares 
favorably  with  the  best  imported  articles. 

The  cordage  factory  of  Caracas  produces  sisal  rope  at  the  rate 
of  13.8  metric  tons  per  month  (1  metric  ton=:2,205  pounds),  the 
total  consumption  of  the  country  being  about  23  tons  a  year.  The 
principal  imports  of  cordage  consist  of  rigging  rope  at  the  seaports 
and  twine,  etc.,  for  wrapping  purposes.  The  Caracas  company 
(Fabrica  Nacional  de  Fibras  y  Cordeles)  produces  rope  from  the 
native  sisal  fiber  at  an  average  cost  of  20  bolivars  ($3.86)  per  100 
pounds.  The  price  of  rope  in  the  United  States  under  normal  con- 
ditions is  about  7  cents  per  pound ;  therefore  the  Venezuelan  indus- 
try can  successfully  compete  with  the  imported  article  at  a  wide 
margin  of  profit,  because  the  local  price  is  based  on  the  cost  of  im- 

Eorted  rope  laid  down,  duty  paid,  at  port  of  entry.  The  company 
as  a  plantation  of  200,000  sisal  plants  near  Guacara,  in  the  State 
of  Carabobo,  the  leaves  being  cut  the  third  year,  instead  of  the 
fourth  year  as  in  Mexico. 

The  manufacture  of  matches  is  a  Government  monopoly,  the  ex- 
clusive concession  being  held  by  the  National  Match  Factory  located 
in  Caracas — a  British  corporation,  which  supplies  the  whole  coun- 
try. All  materials  are  imported  from  the  United  States  since  the 
war. 

The  Venezuelan  tariff  is  highly  protective,  and  under  it  the  do- 
mestic factories  can  operate  at  a  profit  in  competition  with  foreign- 
made,  imported  articles,  despite  the  fact  that  all  machinery  and 
equipment  and  most  of  the  raw  materials  have  to  be  imported  at 
great  expense.  There  are  certain  articles,  such  as  salt,  matches* 
shoes,  ready-made  clothing,  laundry  soap,  imitation  butter,  coconut 
oil,  etc.,  the  importation  or  which  is  either  forbidden  or  so  heavily 
taxed  as  to  be  commercially  impossible. 

Prices  for  domestic  consumption  are  always  based  on  the  cost  of 
the  imported  article,  including  first  cost  in  .the  United  States  or 
Europe,  commissions,  freight,  import  duty,  and  profit  to  the  im- 
porter. 

During  the  war  years,  when  goods  were  scarce  and  prices  very 
high,  all  domestic  manufacturing  plants  reaped  rich  profits,  and 
there  was  considerable  expansion  and  new  investment  of  capital  in 
manufacturing  plants.    Two  new  cotton  mills  were  started,  one  new 


MANUFACrUBING.  117 

paper  factory,  and  the  glass  factory.  The  stock  of  these  and  the  old 
companies  increased  greatly  in  value,  and  there  was  considerable 
martet  speculation  in  these  securities.  However,  the  drop  iu  prices 
toward  tne  latter  part  of  1920  brought  about  a  decrease  in  the  value 
of  these  securities,  and  domestic  plants  had  to  cut  prices  in  accord- 
ance with  the  new  price  levels  of  imported  goods. 

There  is  a  real  lack  of  capital  in  the  country  for  manufacturing, 
labor  is  inefiicient  and  untrained,  there  is  a  lack  of  technical  and 
practical  skill,  raw  materials  are  taxed,  and  fuel  is  expensive,  as  well 
as  electric  power,  although  this  latter  is  capable  of  great  develop- 
ment. And  last,  but  not  least,  the  market  is  a  limited  one,  the  pur- 
chasing power  of  the  people  being  very  low.  In  view  of  the  eco- 
nomic situation  that  followed  the  period  of  readjustment  in  1920, 
it  is  very  doubtful  whether  there  will  be  any  great  expansion  in  man- 
uf acturmg  for  several  years  to  come. 

With  respect  to  the  development  of  new  raw  materials  which  in- 
volve agricultural  labor,  such  as  the  production  of  jute  for  bagging, 
etc.,  there  is  not  a  sufficient  surplus  of  cheap  labor  in  the  country 
districts ;  labor  is  being  attracted  more  and  more  to  the  larger  towns 
and  cities,  preferring  the  living  conditions  there.  There  undoubt- 
edly  exists  an  opportunity  for  foreign  capital  commanding  the  re- 
quired technical  and  practical  knowledge  for  the  manufacture  of  fine 
leathers  for  shoe  making,  shirts  and  collars  for  men's  wear,  and  a 
good  line  of  toilet  soaps,  face  powders,  and  other  toilet  articles.  Con- 
siderable difficultv  has  always  been  encountered  in  the  introduction 
on  the  market  oi  any  new  domestic  article  on  account  of  the  long 
acquaintance  of  the  people  with  imported  goods,  which  they  have 
come  to  know  and  recognize  by  the  brands  and  names.  Frequent 
poor  imitations  of  many  well-known  brands  have  also  contributed 
to  the  distrust  of  home-made  goods. 

(For  details  of  factories  and  manufacturing,  see  district  reports 
beginning  on  p.  118.) 


CARACAS  AND  COMMERCIAL  DISTRICT. 

GENERAL  CONSIDERATIONS. 

m 

Caracas,  the  national  capital  of  Venezuela,  is  also  the  financiial  and 
commercial  center  of  the  country,  although  Maracaibo,  the  commercial 
center  of  the  western  part  of  the  country  comprising  the  Lake  Mara- 
caibo Basin  and  the  Andean  region,  competes  with  Caracas  in  the 
volume  of  annual  trade.  In  Caracas  are  located  the  main  offices  of 
the  national  and  foreign  banks  and  the  largest  commercial  houses, 
many  of  which  maintain  branches  in  the  principal  business  centers  of 
the  Venezuelan  States.  Wholesaling  importers  of  Caracas  cover  the 
entire  country  by  means  of  their  system  of  branch  offices,  stores,  and 
traveling  salesmen,  and,  by  shipping  overland,  even  compete  with 
Ciudad  bolivar  for  the  river  trade  and  with  the  importers  of  Mara- 
caibo for  the  business  of  the  Andean  region  in  such  centers  as  San 
Cristobal,  Trujillo,  and  Merida. 

Venezuela  is  divided  into  three  main  commercial  districts,  namely, 
the  Caracas  district,  which  takes  in  the  center  of  the  country ;  Mara- 
caibo, which  comprises  the  Lake  Maracaibo  Basin  and  the  western 
Andean  region ;  and  Ciudad  Bolivar,  which  controls  the  trade  of  the 
great  Lower  Orinoco  Valley  and  the  Delta  region.  Valencia,  the 
center  of  a  rich  agricultural  region,  imports  directly  through  Puerto 
Cabello  to  some  extent,  but  is  tributary  to  Caracas  in  great  measure 
on  account  of  capital  and  credits  and  the  business  system  long 
established. 

CITY  OF  CARACAS. 

LOCATION— PHYSIOGRAPHY  OF  SURROUNDING  COUNTRY. 

The  city  of  Caracas  occupies  the  southern  slope  of  the  hills  reach- 
ing down  to  the  Eio  Guaira,  which  runs  approximately  east  and 
west  between  the  two  divisions  of  the  Central  Coast  Range.  The 
region  around  Caracas,  lying  between  the  divisions  of  this  range,  con- 
sists of  more  or  less  uniform  hills,  with  many  small  valleys  (which 
follow  the  general  direction  of  river  and  mountains,  east  and  west) , 
and  is  fairly  well  populated  and  intensively  cultivated  in  coffee,  cacao, 
and  domestic  produce  for  the  Caracas  market.  Although  Caracas 
itself  has  an  altitude  of  3,036  feet  above  sea  level,  the  pass  over  the 
range  between  this  city  and  the  port  of  La  Guaira  reaches  at  one  point 
the  height  of  3,412  feet,  while  the  main  range  averages  about  5,000 
feet  and  the  "  Silla  de  Caracas,"  a  peak  near  the  capital,  is  8,643  feet 
high.  Because  of  the  mountainous  region  around  Caracas,  the  dis- 
tance from  the  city  to  the  port  of  La  Guaira,  which  is  about  9  miles 
by  air  line,  lengthens  out  to  21  miles  by  the  highway  and  to  23  by  rail. 
A^bout  50  miles  south  of  Caracas,  however,  after  one  leaves  the  south- 
ern line  of  the  Coast  Range,  the  great  llanos,  or  plains,  begin  and 
stretch  away  for  200  miles  to  the  Apure  and  Orinoco  Rivers. 

118 


CARACAS  AKD   COMMERCIAL.  DISTRICT.  119 

AREA  AND  POPULATION. 

The  Federal  District  in  which  the  capital  is  located  has  an  area  of 
1,930  square  kilometers  (1  square  kilometerz=0.386  square  mile)  and 
had  a  population  of  136,648  in  1917,  giving  a  density  of  70.2  per 
square  kilometer.  Of  this  total  the  city  of  Caracas  proper  has  at 
least  75,000  people,  with  about  91,000  for  the  "  municipality  " — ^that 
is,  including  Caracas  and  its  environs,  which  contain  many  small 
villages  and  towns  of  more  or  less  importance. 

CLIMATE. 

Generally  speaking,  the  climate  of  Caracas  may  be  said  to  be  semi- 
tropical.  Between  April  and  October — locally  called  "  invierno,"  or 
winter — which,  is  also  the  period  of  the  rainy  season,  the  heat  is 
oppressive  during  the  day  from  10  a.  m.  until  4  p.  m.  and  there  is 
considerable  humidity  in  the  atmosphere.  There  is  little  variation 
in  temperature  between  day  and  night,  but  the  nights  are  often  very 
damp,  because  of  the  low  clouds  that  hang  on  the  mountain  slopes 
during  the  rainy  season,  as  well  as  the  wet  lands  of  the  valley  at  the 
edge  of  the  city.  In  November  the  heat  moderates,  and  in  the  months 
from  December  to  March  the  climate  is  dry  and  cooler  and  very 
delightful,  although  many  foreign  residents  find  it  enervating  on 
account  of  the  lack  of  change.  The  maximum  temperature  for  the 
year  is  84.2°  F.,  and  the  minimum,  55.4°,  giving  an  average  tem- 
perature of  66.2°  F.  The  annual  rainfall,  of  approximately  32 
inches,  is  precipitated  during  the  months  from  June  to  the  last  of 
October,  the  heaviest  rains  occurring  in  September.  The  clothing 
worn  consists  mostly  of  driUs  and  Palm  Beach  or  other  kinds  of 
tropical  wear,  although  light  woolen  clothing  is  usually  worn  during 
the  evening  by  the  people  of  the  wealthier  class. 

ATTRACTIVE  APPEABANCE  OF  CITY— CHARACTER  OF  BUILDINGS. 

To  the  traveler  Caracas  presents  a  very  attractive  appearance ;  the 
location  is  picturesque,  with  the  mountains  behind  the  city,  the  green 
valley  lying  in  undulating  contours  in  front  of  it,  and  then  the  dis- 
tant southern  range  beyond.  The  city  is  well  laid  out,  and  all  main 
streets  are  paved  with  concrete  and  kept  clean.  The  architecture, 
of  course,  is  Spanish- American,  but  reinforced  concrete  is  being  used 
to  an  increasing  extent  for  the  construction  of  buildings.  On  account 
of  the  danger  of  earthquakes,  there  are  no  high  buildings,  the  highest 
being  of  four  stories.  With  few  exceptions,  all  buildings  are  plas- 
tered with  cement  or  lime  stucco  on  the  outside  over  the  brick,  some 
being  given  a  coat  of  oil  paint  instead  of  calcimine.  There  are  many 
fine  public  buildings  and  small  parks  throughout  the  city,  and  on 
the  outskirts  the  famous  "  Paraiso  "  drive  is  lined  with  the  fine  resi- 
dences of  the  wealthy. 

SANITARY  MEASURES  INSTITUTED. 

Durinff  the  administration  of  Gen.  Juan  Vicente  Gomez,  President 
elect  of  Venezuela,  great  progress  has  been  made  in  sanitation  in  the 
capital  under  the  able  direction  of  Dr.  L.  G.  Chacin  Itriago,  director 
of  the  Sanidad  Nacional.    The  old  sanitary  law  of  1913  was  repealed 


ISO     VENEZUELA :  A  COMMERCIAL  AND  IKDUSTBIAL  HANDBOOK. 

on  June  23,  1919,  and  the  new  law  provided  for  the  organiz:ation  of 
the  National  Sanitary  Service.  New  sanitary  laws  have  provided  for 
the  construction  of  modern  houses  for  the  people  of  the  poorer  classes, 
inspection  of  all  private  residences,  administration  of  drugs,  medi- 
cines, etc.,  offered  for  public  sale,  and  inspection  of  the  milE  supply, 
public  markets,  etc.,  using  modern  laboratory  methods,  which  are 
being  consistently  carried  out.  Plumbing  and  drainage  arrangements 
are  looked  after.  Old  insanitary  houses  are  condemned  and  the 
owners  are  forced  to  remodel  them  in  accordance  with  the  new  regula- 
tions providing  for  cement  floors,  modern  plumbing,  and  other  sani- 
tary improvements. 

Household  refuse  is  removed  daily  by  covered  motor  trucks  with 
metal  bodies,  and  heavy  fines  are  imposed  for  collections  of  garbage, 
dirt,  or  other  filth  in  the  houses  or  streets.  All  water  tanks  in  the 
houses  must  be  kept  covered  to  prevent  the  propagation  of  mosqui- 
toes. Every  residence  is  inspected  periodically  by  an  organized  force 
of  inspectors  from  the  Sanitary  Service  Bureau.  More  than  200  men 
are  employed  in  Caracas  alone  on  this  work,  and  the  organization  is 
being  extended  to  the  other  large  cities  of  the  country.  Modern  ap- 
pliances for  disinfection  are  on  hand  in  Caracas.  A  campaign  of 
popular  education  in  sanitation  has  been  started,  a  "  Swat  the  fly '" 
propaganda  was  carried  out  in  1920,  and  flytraps  and  formulated 
milk  were  distributed  gratis  to  the  people  of  the  poorer  classes  in 
Caracas. 

PUBLIC  WATER  SUPPLY— SEWERAGE  SYSTEM. 

The  principal  public  water  supply  is  derived  from  the  River 
Macarao  at  a  point  about  15  miles  west  of  the  town  and  is  carried 
in  by  an  aqueduct  to  the  reservoir  oh  "  El  Calvario  "  hill,  overlooking 
the  city,  where  there  are  arrangements  for  filtration,  etc.  Two  other 
small  reservoirs  north  of  the  city  supply  water  to  the  upper  part 
of  the  town  and  the  suburb  known  as  "Los  Chorros."  This  water 
is  obtained  from  small  streams  coming  down  from  the  slopes  of  the 
Coast  Eange.  Recently  the  Sanitary  Service  has  been  engaged  in 
cleaning  out  these  reservoirs  and  putting  all  in  condition.  The 
River  Macarao  aqueduct,  of  old  construction,  is  being  replaced  by 
modern  cement  piping  and  a  new  water  supply  developed  for  Caracas, 
because  the  present  supply  is  not  sufficient  to  provide  water  for  the 
city  at  all  times  of  the  day  from  the  pipes,  and  houses  have  to  be 
equipped  with  tanks  and  built-in  cisterns  to  collect  sufficient  water 
during  the  night  for  the  day's  domestice  use.    High  tanks  have  to  be 

Provided  in  each  house  for  baths  and  toilets.  Although  measures 
ave  been  taken  to  prevent  contamination  of  the  sources  of  water 
supply  for  the  city,  the  water  of  Caracas  has  had  a  bad  name  in  the 
past,  and  foreigners  are  always  cautioned  not  to  use  it  for  drinking 
purposes  on  account  of  the  danger  of  typhoid  and  other  diseases.  An 
English  company,  the  Venezuelan  Potable  Water  Co.  of  Caracas,  sup- 
plies filtered  water  in  5-gallon  bottles  such  as  are  used  for  filters  in 
the  United  States,  and  this  water  is  mostly  used  for  drinking  pur- 
poses in  the  leading  hotels,  pensions,  residences  of  the  better  class, 
clubs,  etc. 

The  entire  aqueduct,  which  formerly  consisted  mostly  of  an  open 
ditch  from  the  River  Macarao,  has  been  replaced  by  a  concrete-covered 


special  Agents  Series 


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79747°— 22.     (Face  p.  120.) 


CABAGAS  Amy  COMBiBHClAL  DtSTmCT.  121 

ditch  with  steel  tube  siphons  in  the  depressions,  etc.,  and  a  great  new 
reservoir  has  been  constructed  in  the  "  Independencia  "  park,  cover- 
ing 3,825  square  meters  and  being  405  meters  long  by  an  average 
width  of  9  meters,  with  a  depth  of  40  meters  in  places.  (1  meter = 
3.28  feet).  The  Ministry  of  Public  Works  has  also  carried  out  in 
1919  a  study  of  the  watershed  of  the  region  north  and  west  of  the 
city,  with  the  object  of  establishing  new  reservoirs  to  take  care  of 
the  increased  water  consumption  oi  the  city. 

The  seaport  of  La  Guaira  is  also  having  a  new  aqueduct  installed. 
6-inch  iron  piping  being  used  in  the  street  work  in  the  city  proper. 
The  estimated  daily  consumption  per  inhabitant  for  Caracas  is  esti- 
mated, from  the  present  aqueduct  capacity,  at  152  liters  (1  liter= 
0.264  gallons)  daily  in  the  dry  season  and  243  liters  daily  in  the  rainy 
season  of  the  year. 

A  new  sewerage  system  is  now  being  constructed  for  Caracas.  The 
work  was  started  June  13, 1919,  and  is  expected  to  be  completed  early 
in  1921.  Plans  call  for  a  total  of  116  circuits  covering  a  drainage  area 
of  2,900  hectares  (1  hectar€=2.47  acres),  and  the  system  is  also 
adequate  to  take  care  not  otIj  of  the  sanitary  service  of  the  city  but 
also  of  the  excess  rainfall,  estimated  at  a  maximum  of  3J  inches  per 
hour — the  collection  coefficient  being  125  liters  per  hectare  per  hour. 
Keinforced  concrete  is  being  used  throughout,  the  same  material  be- 
ing used  for  the  double-barreled  siphons.  Up  to  June  30,  1920,  a 
toSil  of  2,624  meters  of  this  work  had  been  completed. 

With  the  new  aqueduct  and  sewerage  system  m  operation  and  the 
old  type  of  insanitary  houses  all  remodeled,  Caracas  will  undoubtedly 
be  one  of  the  most  modern  and  healthful  cities  in  all  Latin  America, 

As  a  rule,  the  streets  of  Caracas  are  narrow,  averaging  about  24 
feet  in  width  of  concrete  pavement,  with  a  sidewalk  about  4  feet  in 
width,  also  of  cement,  except  in  the  suburbs,  where  flagging  is  still 
much  used.  With  few  exceptions  the  houses  are  built  flush  with  the 
sidewalks. 

[See  Special  Agents  Series  No.  144,  "  Construction  Materials  and  Machinery 
in  Venezuela,"  pages  22-23  for  **  Sewerage  system  of  Caracas,"  pages  23-25  for 
**  Improvements  in  the  water  supply  of  Caracas,"  and  pages  25-26  for  "  Dis- 
tribution of  city  water."] 

BRIDGES— PARKS— THEATERS— HOSPITALS. 

Caracas,  situated  on  both  sides  of  the  Guaira  River  and  traversed 
by  the  lesser  Anauco  and  Catuche  Elvers,  as  well  as  various  creeks, 
has  as  many  as  50  bridges,  many  of  them  of  recent  construction. 

There  are  two  notable  parks  or  "  paseos  " — ^the  "  Paraiso,"  already 
mentioned,  which  is  a  beautiful  drive  in  the  heart  of  the  valley  next 
to  the  city,  lined  with  beautiful  residences,  and  the  Paseo  Independen- 
cia, also  known  as  "  El  Calvario,"  situated  to  the  west  of  the  city  on 
a  high  hill,  from  the  top  of  which  the  city  is  seen  in  panorama.  The 
extension  of  the  Avenida  del  Paraiso,  called  Avenida  19  de  Diciem- 
bre,  reaches  the  beginning  of  the  Western  Highway,  leading  out  to 
Los  Teques,  Victoria,  Maracay,  Valencia,  etc.  There  are  also  more 
thsln  a  dozen  smaller  parks  and  "  plazas  "  scattered  throughout  the 
city. 

The  theaters  are  the  Municipal,  Nacional,  Caracas,  Princesa,  and 
Calcano.    There  are  also  five  large  motion-picture  theaters.    The  new 


122     VENEZUEIA :  A  (X)MMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

bull  ring,  Nuevo  Circo,  is  of  modem  cement  constructicm  and  holds 
13,000  people.  There  is  also  the  Hipodromo  Nacional  (reached 
through  El  Paraiso  Drive),  where  horse  racing  is  held  during  the 
winter  months,  the  racing  beginning  in  November  a-nd  lasting  until 
March. 

The  hospitals  are  the  Vargas  (which  is  national  in  character  and 
equipped  with  modern  scientific  annexes) ,  the  Military  Hospital,  the 
Providencia,  and  several  others  of  charitable  character. 

Mention  should  also  be  made  of  the  artistic  development  in  Vene- 
zuela, of  which  Caracas  is  the  center.  One  of  the  living  artists,  Tito 
Salas,  has  exhibited  many  canvases  in  the  Paris  Salon,  among  them 
the  famous  La  Juerga  en  Sevilla,  which  now  adorns  the  Club  Cara- 
cas. His  work  also  appears  in  the  historical  paintings  of  the  dome 
of  the  Salon  Eliptico  in  Caracas.  Michelena  was  another  of  Vene- 
zuela's great  artists  and  exhibited  many  canvases  in  Paris,  He  died 
recently  at  the  age  of  37. 

FOREIGN  COLONT. 

The  foreign  colony  of  Caracas  is  numerous  and  well  represented. 
Roughly,  there  are  about  75  Americans,  125  Germans,  25  Porto  Ri- 
cans,  30  Syrians,  45  Italians,  30  French,  and  40  English,  as  well  as 
a  number  of  Spaniards,  Moroccan  Jews,  and  Sicilians.  The  German 
is  the  oldest  and  most  numerous  of  the  foreign  colonies,  originally 
engaged  in  trade  and  commerce  in  the  country  and  graduallj^  united 
with  Venezuelan  families  by  intermarriage,  now  constituting  the 
second  and  even  third  generation.  The  Germans  are  affiliated  with 
the  Caracas  Chamber  of  Commerce;  the  Italians  have  their  own 
organization,  called  the  " Alianza  Italiana  " ;  and  a  recent  movement 
toward  the  establishment  of  an  American  Chamber  of  Commerce  re- 
flected the  growing  importance  of  the  American  colony. 

Common  meeting  places  are  the  several  large  clubs-r-the  Club 
Venezuela  being  the  largest  organization  of  the  kind  m  Caracas,  with 
a  very  cosmopolitan  membership.  The  Club  Caracas  is  known  as 
the  business  men's  club,  being  frequented  by  the  older  and  more  con- 
servative class  of  business  men.  The  clubs  are  very  well  equipped. 
Luncheon  and  dinner  are  served  in  all  of  them. 

HOTELS  AND  PENSIONS. 

Caracas  lacks  good  modern  hotel  accommodations.  Properly 
speaking  there  is  no  hotel  as  the  term  is  understood  in  the  United 
States,  now  that  the  Hotel  Klindt  is  being  dismantled  for  recon- 
struction into  a  modern  hotel.  The  largest  remaining  hotel  is  the 
Hotel  America,  distant  one  block  from  the  Plaza  Bolivar  and  con- 
taining .about  20  rooms,  one  of  which  is  equipped  with  private  bath. 
Charges  are  from  16  to  20  bolivars  per  day  ($2.08  to  $3.86).  There 
are  a  good  many  smaller  hotels  scattered  about  the  city  and  patron- 
ized mainly  by  Venezuelans  from  the  interior^  The  most  important 
of  these  are  the  Hotel  Caracas,  Hotel  Comercio,  and  Hotel  Union. 

In  comparison  with  the  hotels  most  foreigners  prefer  the  numer- 
ous and  well-kept  "  pensions "  (large  private  houses,  managed  as 
boarding  places),  which  are  available  for  visitors  in  Caracas.  The 
largest   pension,   occupying  three   houses,   is  the   Pension   Ibarra, 


CARACAS  AND   COMMEECIAL  DISTRICT.  123 

where  charges  run  from  20  to  40  bolivars  ($3.86  to  $7:72)  per  day 
for  room  and  table  board,  according  to  the  location  of  the  room,  etc. 
The  best  rooms  are  those  located  m  the  upper  story  of  the  house, 
as  these  have  much  more  light  and  ventilation  than  those  situated 
on  the  ground  floor,  with  often  only  a  door  leading  out  onto  the 
"  patio,"  Among  the  pensions  patronized  by  foreigners  are  the 
Dominguez,  the  Myerston,  the  Vicentini,  etc.  Persons  intending  to 
stay  in  Caracas  for  some  time  usually  find  comfortable  quarters  in 
the  house  of  some  private  family. 

An  American  hotel  company  has  recently  purchased  ground  out 
in  the  "  Paraiso  "  for  a  large  modern  hotel,  which  will  be  operated 
in  a  chain  with  a  number  of  other  hotels  in  Porto  Rico,  Habana,  etc. 
It  is  thought  that  considerable  tourist  traffic  can  be  attracted  during 
the  winter  months  if  good  accommodations  are  provided.  There 
is  much  of  interest  in  and  about  Caracas,  and  the  automobile  drives 
through  the  picturesque  mountains  would  offer  novelty  and  interest. 

In  the  present  hotels  and  pensions,  rooms  are  not  equipped  with 
running  water  or  hot-and-cold-water  service.  There  are  usually 
good  tub  and  shower  baths,  however.  All  such  rooms  are  electri- 
cally lighted,  but  lighting  arrangements  are  too  often  confined  to' 
one  small  bulb  hanging  high  in  the  center  of  the  room,  the  illumina- 
tion being  inadequate  for  writing  or  reading  in  the  room  at  night. 

COMMUNICATION  FACILITIES  IN  CITY. 

The  city  of  Caracas  is  well  supplied  with  public  carriage  and  au- 
tomobile service.  There  are  about  50  first-class  carriages  and  170 
ordinary  ones  for  public  service  in  the  city,  besides  more  than  100 
automobiles  for  hire,  usually  of  the  less  expensive  American  makes. 
Carriage  rates  are  6  bolivars  ($0.96)  per  hour  for  ordinary  and  6 
bolivars  ($1.16)  per  hour  for  first-class  conveyances.  Automobiles 
can  be  hired  at  the  rate  of  20  bolivars  ($3.86)  per  hour  in  the  city, 
with  fixed  rates  for  longer  trips  over  the  highways  to  places  in  the 
near  interior.  An  ordinary  car,  with  driver,  costs  from  150  to  250 
bolivars  ($28.95  to  $48.25)  per  day,  according  to  the  distance  covered 
and  the  prior  arrangements  made  for  the  particular  trip.  By  the 
end  of  1918  there  were  619  automobiles  in  Caracas  and  the  Federal 
District  alone,  and  by  the  end  of  1920  this  number  had  increased  to 
nearly  1,000. 

As  the  street  car  system  does  not  reach  all  parts, of  the  city  and 
the  service  is  crowded  and  slow  on  account  of  the  narrow  streets  and 
congested  business  center,  it  is  customary  for  business  people  to  use 
either  light  cars  or  carriages  for  errands  about  the  city,  more  espe- 
cially on  account  of  the  heat  and  rains  during  the  summer  months* 
The  carriages  offer  a  cheap  and  fairly  rapid  means  of  conveyance 
for  the  traveler  and  are  generally  used  by  salesmen  unfamiliar  with 
the  city. 

The  Caracas  Electric  Tramway  Co.  operates  between  40  and  50 
cars  over  about  15  miles  of  track  in  the  city  of  Caracas  and  has  a 
short  interurban  line  running  out  to  the  small  town  of  El  Valle — a 
tunnel,  1,640  feet  long,  having  recently  been  completed  to  avoid  a 
heavy  grade  on  leaving  the  city.  The  line  to  El  Valle  ig  5.5  kilo- 
meters long  (1  kilometer =0.62  mile).  Small  5- ton  freight  cars  are 
operated  at  night  to  and  from  the  slaughterhouse  with  fresh  beef 


124     VENEZUELA:  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 

for  the  morning  market.  Country  produce  is  also  brought  in  from 
El  Valle,  Petare,  etc.  The  passenger  cars  used  in  Caracas  are  all  of 
the  open  summer-car  type,  and  are  very  narrow  in  width,  being 
specially  constructed  for  the  narrow  streets  and  the  sharp  turns  that 
have  to  be  made.    They  carry  38  passengers  each. 

Current  was  first  used  in  1907,  and  the  Caracas  Electric  Light  Co. 
(Ltd.)  was  established  in  1912,  using  the  rapids  of  the  Guaira  River 
at  El  Encantado  for  the  generation  of  power.  The  fall  is  111  feet 
and  the  horsepower  developed  1,050.  Another  hydroelectric  plant 
at  Los  Naranjos,  2  miles  higher  up  the  river^  furnishes  1,500  horse- 
power.   Both  of  these  public-utility  companies  are  British. 

The  Venezuela  Telephone  &  Electric  Appliances  Co,  (Ltd.),  with 
head  offices  in  London  and  established  in  Caracas  in  1883,  enjoyed  an 
exclusive  telephone  concession  that  has  now  expired.  There  are  in 
operation  at  the  present  time  2,475  instruments,  with  long-distance 
service  to  La  Guaira,  MacutOj  Valencia,  Puerto  Cabello,  Ocumare  de 
Tuy,  Los  Teques,  Maracay,  and  all  places  of  any  importance  that  are 
connected  with  Caracas  by  rail  or  wagon  road.  The  number  of  tele- 
phones in  operation  is  not  sufficient  for  the  actual  needs  of  the  city, 
and  the  municipality  of  Caracas,  in  conjunction  with  the  Federal 
District,  is  planning  at  the  present  time  a  new  exchange  with  6,000 
telephones  of  the  latest  automatic  pattern.  Service  will  be  at  re- 
duced rates.  On  account  of  the  lack  of  instruments  in  the  past, 
holders  of  subscription  contracts  demanded  heavy  premiums  for  the 
cession  of  their  contracts  to  others  seeking  telephone  service,  as  much 
as  $100  being  paid  for  a  contract  in  times  past.  The  number  of 
telephones  outside  of  Caracas  on  the  circuit  of  the  company  is  936. 
The  Government  operates  222  instruments  in  Caracas  and  a  total 
of  178  outside  of  the  city.  There  are  20.000  kilometers  of  wire  in 
the  company  lines  and  private  lines  in  Caracas  and  the  interior,  and 
the  Government  has  an  additional  1,146  kilometers  of  wire  (1  kilo- 
meter=0.62  miles).  There  are  numerous  short  private  lines  in  the 
country  districts,  serving  haciendas  and  small  towns  and  connected 
for  the  most  part  with  the  Caracas  exchange.  With  a  larger  ex- 
change in  Caracas,  the  urban  and  long-distance  service  of  the  district 
would  be  entirely  adequate  to  the  needs  of  commerce  and  business. 

RAILWAYS  OF  CARACAS  AND  VICINITY. 

The  capital  of  Venezuela  has  three  railways,  two  of  which  are  of 
primary  importance — ^the  Caracas-La  Guaira  line,  connecting  it 
with  the  seaport  of  La  Guaira,  and  the  Gran  Ferrocarril  de  Vene- 
zuela, running  to  Valencia,  a  center  of  manufacturing  and  agricul- 
tural development.  The  Ferrocarril  Central  de  Venezuela  affords 
access  to  the  rich  coffe  and  cacao  region  to  the  south  and  east  and, 
when  completed  through  to  Ocumare  del  Tuy,  will  also  afford  access 
to  the  great  llanos  lying  south  of  the  second,  or  inland,  range  of 
the  Coast  Range  of  mountains.  The  entire  region  is  a  populous  one 
and  all  tributary  to  Caracas. 

CARACAS  &  LA  GUAIRA  RAILWAY. 

The  Caracas  &  La  Guaira  Railway  has  been  in  service  since  1883, 
and,  while  one  of  the  shortest  lines,  it  is  the  most  important  and  best 


CARACAS  AND  COMMERCIAL.  DISTRICT.  125 

piece  of  railway  property  in  Venezuela,  connecting,  as  it  does,  the 
capital  of  the  country  with  the  principal  seaport  of  La  Guaira,  and 
transporting  nearly  one- fourth  of  the  freight  handled  by  all  lines. 
The  gauge  differs  from  that  of  the  other  railways  centering  in 
CaracaSj^  being  3  feet,  while  that  of  the  so-called  German  road 
(Gran  Ferrocarril  de  Venezuela)  is  3^  feet,  as  is  that  of  the  Ferro- 
carril  Central  de  Venezuela.  The  tracks  of  the  La  Guaira  Har- 
bor Corporation  are  of  the  same  gauge  as  those  of  the  Caracas-La 
Guaira  Railway  and  connect  with  them,  but  the  railway  cars  do 
not  go  to  the  ship's  side,  goods  being  handled  by  the  harbor  corpora- 
tion to  the  customs  warehouses  beiore  shipment  to  Caracas. 

The  distance  covered  by  rail  is  22  miles  or  36.65  kilometers,  the 
road  climbing  from  sea  level  to  a  pass  more  than  3,000  feet  high  in 
crossing  the  steep  Coast  Bange  between  La  Guaira  and  Caracas. 
Although  in  appearance  the  line  is  dangerous,  it  has  been  so  well 
constructed  and  is  so  well  policed  that  there  has  never  been  an  acci- 
dent involving  the  loss  of  life.  Ties  are  of  native  hardwoods,  and 
rails  weigh  65  pounds  to  the  yard.  The  maximum  grade  is  3|  per 
cent  and  the  minimum  radius  of  curves  43  meters  (1  meter=3.28 
feet).  There  is  one  switchback  at  "Zigzag,"  half  way  up  the 
mountain.  There  are  15  steel  bridges  with  a  combined  length  of 
281.5  meters,  and  8  tunnels  with  a  total  length  of  379.5  meters. 

The  rolling  stock  consists  of  15  locomotives  of  30  tons  each  (Eng- 
lish type),  28  passenger  coaches,  20  flat  cars  of  15  tons  each,  63  box 
cars  of  15  tons  each,  and  34  stock  cars  transporting  12  head  of  cattle 
each,  inclosed.  Passenger  rates  equal  10.94  cents  per  mile  for  the 
first  class  and  6.68  cente  for  the  second  class.  The  freight  rate  is 
26.38  cents  per  ton-mile  for  import  freight — that  is,  up  grade — and 
two-thirds  of  this  for  export  (down-grade)  freight,  the  former 
greatly  exceeding  the  latter  in  annual  tonnage. 

The  capital  invested  is  stated  as  $3,508,740  and  the  capital  stock  of 
the  company  as  $1,705,637.  The  road's  best  year  was  in  1891,  when 
material  for  the  German  railway  was  being  imported  and  there  were 
large  expenditures  for  construction  work;  87,553  passengers  were 
carried,  at  a  gross  return  of  728,391  bolivars  ($140,579),  and  105,253 
metric  tons  of  freight,  producing  4,006,962  bolivars  ($773,334),  the 
total  operating  expense  being  given  as  2,216,777  bolivars  ($427,838). 
In  1919, 73,305  passengers  were  carried  (508,286  bolivars,  or  $98,099) 
and  76,345  metric  tons  of  freight  (2,483,009  bolivars,  or  $479,221)— 
the  operating  expense,  greatly  increased  by  war  conditions,  being 
1,205,046  bolivars  ($232,574). 

In  the  past  the  condition  of  the  Government  Caracas  and  La  Guaira 
Highway  was  very  poor,  but  it  has  been  repaired  and  reconstructed, 
ana  competition  with  the  railway  by  one-mule  carts,  automobiles,  and 
pack  animals  is  keen,  although  the  commercial  use  of  motor  trucks 
in  competition  with  the  railway  is  not  possible  as  yet  on  account  of 
the  graides  and  reduced  curves  of  the  wagon  road  and  its  light  mac- 
adam surface.  The  common  two-wheeled,  one-mule  cart,  with 
springs,  commonly  used  in  Venezuela  for  country  and  town  hauling 
and  carrying  about  600  pounds  to  a  load,  is  competing  with  the  rail- 
way in  organized  service  for  general  freight  between  the  seaport  and 
Caracas.  On  the  road  two  men  handle  9  or  10  carts  and  freight  is 
carried  both  ways.    The  cost  to  the  shipper  is  the  same  by  the  railway 


126     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

and  the  road — plus  cartage  charges  in  Caracas  for  city  delivery  if 
the  railway  is  used. 

The  railway's  purchasing  agents  in  the  United  States  are  Bliss? 
Dallett  &  Co.,  New  York  City.  The  cost  of  construction  per  kilo- 
meter of  this  railway  was  496,043  bolivars  ($95,736) ,  equal  to  $154,068 
per  mile,  including  stations  and  equipment.  A  dividend  of  6  per  cent 
has  been  paid  regularly  on  capital  shares  for  the  past  few  years. 

CENTRAL  RAILWAY  OP  VENEZUELA. 

The  Central  Kailway  of  Venezuela  has  been  in  operation  since  1887 
and  has  been  slowly  continuing  construction  toward  the  south  from 
Caracas  into  the  southern  division  of  the  Coast  Range,  penetrating  a 
rough  but  fairly  populous  country  yielding  coffee,  cacao,  and  gen- 
eral produce. 

The  line  has  73.5  kilometers  (1  kilometer =0.62  mile)  of  completed 
track  and  23.5  yet  to  be  constructed,  the  present  terminus  being  the 
•town  of  Yare  and  the  objective  the  town  of  Ocumare  on  the  Tuy 
River,  with  a  surveyed  extension  to  Cua  toward  the  west,  up  the  Tuy 
River,  for  a  distance  of  10  kilometers  more.  The  country  traversed 
is  described  as  level  10  kilometers  (to  Petare) ,  broken  5  kilometers, 
rough  11  kilometers,  and  mountainous  34  kilometers.  The  average 
cost  per  kilometer  isput  at  $67,722.  The  gauge  is  3^  feet,  the  same 
as  that  of  the  Gran  Ferrocarril  de  Venezuela  but  different  from  that 
of  the  Caracas-La  Guaira  Railway,  which  is  3  feet  only.  The  station 
is  located  on  the  extreme  west  of  Caracas  and  is  about  2  miles  distant 
from  the  other  railway  stations,  coffee  and  cacao  for  export  having 
to  be  transferred  in  carts  across  the  city  at  considerable  expense. 

The  road  is  a  combination  steam  and  electric  railway,  being  oper- 
ated as  an  electric  line  as  far  as  Petare,  9.95  kilometers  from  the  sta- 
tion in  Caracas,  and  this  part  of  the  line  carries  a  heavy  passenger 
traffic  as  suburban  business. 

The  capital  of  the  company  is  5,050,000  bolivars  ($974,650)  and  the 
investment  to  date  20,015,000  bolivars  ($3,862,895).  The  gross  re- 
ceipts the  first  year  of  operation  were  86,501  bolivars  ($16,695)  and 
in  1891,  295,487  bolivars  ($57,029), but  only  73,114  bolivars  ($14,111) 
in  1902.  Since  then  they  have  increased  steadily  and  were  765,929 
bolivars  ($147,824)  in  1915.  By  1919  receipts  were  1,207,021  bolivars 
($232,955)  while  operating  expenses,  including  new  construction, 
were  1,043,553  bolivars  ($201,406).  In  1917,  31,196  metric  tons  of 
freight  were  handled,  with  307,849  passengers.  Estimated  on  a  total 
capital  investment  of  14,79^,712  bolivars  ($2,854,993)  in  1919,  the 
returns  have  been :  1917,  3.06  per  cent;  1918,  2.49  per  cent;  and  1919, 
1.10  per  cent. 

The  maximum  grade  is  4  per  cent  and  the  minimum  curve  radius 
50  meters.  There  are  75  bridges  and  viaducts,  with  a  combined  length 
of  724  meters,  and  14  tunnels.  Tiers  are  of  wood  and  of  steel.  In 
some  places  rails  have  been  placed  on  limestone  blocks,  but  this  method 
has  proved  unsuccessful  and  has  been  discontinued. 

Rolling  stock  has  not  been  increased  during  the  war ;  the  line  now 
has  8  locomotives  weighing  277  tons,  13  passenger  cars,  23  flat  cars, 
14  box  cars,  and  4  stock  cars.  The  passenger  tariff  is  equal  to  3  cents 
per  mile,  and  the  freight  tariff  is  27  cents  per  ton-mile.  Since  1906 
traffic  has  increased  rapidly,  and  every  new  10  kilometers  of  line 


CARACAS  AND  COMMERCIAL  DISTRICT.  127 

constructed  produces  revenue  to  cover  new  work  farther  on.  The 
manager  is  Albert  Cherry,  of  Caracas,  and  the  purchasing  agents 
in  New  York  are  Bliss-Dallett  &  Co.  Three  mixed  passenger  and 
freight  trains  are  run  during  the  week  from  Petare  to  San  Fernando 
de  X  are. 

GRAN  FERROCARKIL  DE  VENEZUELA. 

The  Gran  Ferrocarril  de  Venezuela  (built  with  German  capital) 
is  the  longest  and  most  costly  railway  in  Venezuela.  It  was  opened 
for  traffic  in  1894,  and  cost  $15,135,492,  or  an  average  of  $85,226  for 
each  of  its  179  kilometers  of  length  (1  kilometer=0.62  mile).  The 
line  runs  from  Caracas  west  to  the  city  of  Valencia,  capital  of  the 
State  of  Carabobo,  second  largest  city  in  Venezuela,  and  the  center 
of  the  agricultural  zone  of  the  country.  The  construction  of  this 
line  is  much  better  than  is  justified  by  the  necessities  of  the  possible 
traffic,  and  in  latter  years  the  line  has  been  holding  its  own  only 
by  reason  of  very  careful  management.  It  was  built  under  a  Govern- 
ment guaranty  of  interest  on  the  capital  invested,  which  was  later 
canceled  in  consideration  of  a  cash  payment.  Formerly  placed  at 
79,000,000  bolivars  ($15,247,000),  the  capital  of  this  company  was 
reduced  in  1919  to  21,000,000  German  marks,  which  at  par  equals 
26,250,000  bolivars  ($5,066,250). 

The  gauge  is  3^  feet,  and  the  weight  of  rails  47  pounds  per  yard. 
The  average  gradient  is  2.2  per  cent,  with  a  minimum  curve  radius 
of  75  meters.  There  are  219  bridges  and  viaducts,  having  a  combined 
length  of  4,656  meters  (1  meter=3.28  feet),  and  86  tunnels,  totaling 
6,249  meters  in  length.  Ties  are  of  steel  and  concrete  throughout, 
except  on  switch  lines,  etc.  From  Caracas  the  line  follows  up  the 
Guaira  Eiver  canyon  through  a  broken  and  rough  country  as  far 
as  Los  Teques,  27  kilometers  from  Caracas^  this  length  having  nine 
large  and  small  tunnels  and  numerous  bridges.  The  climb  is  ap- 
proximately 850  feet  in  this  distance,  and  at  Los  Teques  the  line 
crosses  out  of  the  river  valley  and  penetrates  the  solid  Coast  Range 
to  the  north — encountering  in  the  next  47  kilometers  the  heaviest 
rockwork  of  the  entire  line,  and  dropping  down  2,201  feet  in  this 
distance  out  of  the  mountain  into  the  river  valley  again  at  Tejerias. 
The  distance  by  highway  from  Los  Teques  to  Tejerias  is  only  27 
kilometers.  The  entire  region  between  Caracas  and  Cagua  traversed 
by  this  railway  is  a  very  rough  and  broken  one,  and  level  land  is  not 
encountered  until  the  plains  lying  east  of  Lake  Valencia  are  reached 
at  Cagua,  from  which  place,  the  line  follows  the  edge  of  the  hills 
around  the  northern  shore  of  Lake  Valencia  to  Valencia.  The  ride 
from  Caracas  to  Valencia  takes  7  hours,  and  is  a  very  uncomfortable 
one  on  account  of  the  constant  choking  smoke  that  fills  the  cars  in 
every  tunnel. 

The  rolling  stock  is  all  of  German  manufacture  and  has  not  been 
increased  during  the  war.  Supplies  in  late  years  have  been  pur- 
chased in  the  United  States  on  account  of  the  time  and  difficulty 
in  securing  them  under  recent  conditions  from  Germany.  There  are 
18  locomotives,  with  a  combined  weight  of  720  tons,  30  passenger 
coaches  of  first  and  second  class,  68  flat  cars,  and  20  stock  cars.  The 
passenger  tariff  equals  6.25  cents  per  mile  for  second-class  and  7.78 
per  mile  for  first-class  travel.  The  freight  rate  is  equivalent  to 
15.65  cents  per  ton-mile.    The  best  year  of  this  road  was  1913,  when 


128     VENEZUELA:  A  CX)MMERCIAL  A3SD  INDUSTRIAL  HANDBOOK. 

gross  receipts  were  $552,025,  and  a  return  of  1.6  per  cent  on  the 
capital  invested  was  earned.  The  management  has  endeavored  to 
promote  development  by  tree  planting,  the  introduction  of  new  crops, 
and  the  improvement  of  stock,  but  little  benefit  has  resulted.  In 
1919,  211,442  passengers  were  carried,  producing  1,145,018  bolivars 
($220,988).  Freight  amounted  to  60,495  metric  tons  of  all  classes 
and  hauls.  Gross  receipts  were  3,779,174  bolivars  ($729,381),  and 
operating  expenses  1,927,125  bolivars  ($371,935).  The  percentage 
of  gain,  calculated  on  the  new  capitalization  for  1919,  was  7.06. 

The  concession  of  the  company  called  for  two  branch  lines — one  to 
San  Carlos,  capital  of  the  State  of  Cojedes  and  center  of  a  rich  agri- 
cultural region  (about  100  kilometers  from  Valencia),  and  the  ouier 
from  the  station  of  Cagua  to  San  Fernando  de  Apure  on  the  Apure 
River,  traversing  the  great  llanos  of  the  cattle  country,  a  distance  of 
approximately  350  kilometers. 

This  road  is  badly  in  need  of  an  outlet  to  the  sea,  and  an  attempt 
was  made  to  purchase  the  Puerto  Cabello-Valencia  Eailway  from  the 
British  interests  owning  it.  On  the  other  hand,  the  British  interests 
owning  the  Caracas  &  La  Guaira  and  Puerto  Cabello  lines  have  at- 
tempted to  purchase  the  German  line.  The  sale  of  the  German  road 
was  agitated  in  1917. 

MACUTO  COASTLINE  RAILWAY. 

This  short  line  is  owned  by  the  La  Guaira  Harbor  Corporation 
(British  capital),  operating  electric  cars  over  7  kilometers  (1  kilome- 
teri=0.62  mile)  of  3-foot  track  between  Maiquetia  and  Macuto  along 
the  seashore,  passing  through  the  town  of  La  Guaira.  The  principal 
traffic  is  in  passengers.  The  capital  is  stated  as  500,000  bolivars 
($96,500)  and  the  cost  per  kilometer  71,429  bolivars  ($13,786).  In 
1919,  430,668  passengers  were  carried  and  2,562  tons  of  freight.  The 
total  gross  income  was  270,628  bolivars  ($52,231)  and  the  operating 
expenses  146,302  bolivars  ($28,236) .  In  operation  since  1896,  this  line 
was  changed  to  electrical  power  in  1918 ;  the  entire  line  was  renewed 
and  modernized,  and  is  now  being  extended  to  the  eastern  limits  of 
Maiquetia. 

PROPOSED  NEW  LINES. 

A  concession  was  given  in  1912  for  a  railway  from  Caracas  to 
Guatire  via  Guarenas,  the  line  to  be  completed  by  1916,  with  a  total 
estimated  length  of  53  kilometers  (1  kilometer=:0.62  mile),  but  the 
line  has  not  yet  been  built.  Considerable  work  has  been  done  on  the 
wagon  road  to  Guatire  from  Caracas  during  the  past  two  years,  and 
this  will  soon  be  a  first-class  highway.  Active  passenger  traffic  is 
now  carried  on  by  automobile  stage,  giving  rapid  service,  and  freight 
is  taken  care  of  by  means  of  the  two-wheeled,  single-mule  carts  of  the 
country,  which  have  demonstrated  their  ability  to  compete  with  the 
existing  railways.  The  country  between  Guatire  and  Caracas  is  some- 
what broken  and  rough,  and  railway  construction  work  would  be  ex- 
pensive, especially  as  certain  parts  of  the  proposed  line  would  be  sub- 
ject to  flood  action  of  the  river. 

ROADS  AND  HIGHWAYS  OF  CARACAS  DISTRICT. 

During  the  administration  of  Gen.  Juan  Vicente  Gomez  road  con- 
struction in  Venezuela  has  been  very  active  and  large  sums  are  being 


IVENIOA    DEL    PARAISO,  CARACAS. 


CARACAS  AND  COMMERCIAL  DISTRICT.  129 

expended  for  highway  construction  in  all  parts  of  the  country,  with 
the  result  that  the  automobile  is  becoming  an  increasing  economic 
factor  in  the  life  of  the  country — more  especially  in  the  Caracas  dis- 
trict— ^though  the  pack  mule  still  has  to  be  reckoned  with  as  a  means 
of  transportation  and  still  competes,  over  the  old  trail  between 
Caracas  and  La  Guaira,  with  the  railway  and  the  highway. 

EFFECT  OF  TOPOGRAPHT. 

Before  giving  the  general  description  of  the  Caracas  road  system, 
something  should  be  said  regarding  the  general  topography  of  the 
district  and  the  road  specifications.  Between  Caracas  and  La  Guaira 
lies  the  high  Coast  Range,  over  which  the  road  passes  at  an  elevation 
of  more  than  3,000  feet  above  sea  level.  To  the  south  is  the  mass  of 
broken  hills  that  lie  between  the  main  Coast  Range  and  the  division 
guarding  the  great  plains,  the  distance  in  an  air  line  being  about  40 
miles  across  this  broken  country.  To  the  southeast  these  hills  con- 
tinue until  the  sea  is  again  reached  near  Carenero.  To  the  west, 
nearly  as  far  as  Valencia,  the  country  is  a  series  of  hills  and  smaller 
ranges  lying  between  the  two  divisions  of  the  Coast  Range,  with  here 
and  there  level  fields  in  sugar  cane  in  the  bottom  of  the  narrow  valley. 
Directly  west  and  east  of  Caracas  the  valley  floor  is  wider,  permitting 
larger  nelds,  some  of  which  contain  200  or  300  acres.  The  valley  con- 
tinues toward  Petare  on  the  east,  where  there  is  considerable  level 
land.  Farther  down  the  course  of  the  Guaira  the  river  becomes  more 
narrow  and  forms  a  series  of  fairly  deep  canyons.  To  the  south, 
southeast,  and  southwest  there  is  a  mass  of  hills  traversed  by  narrow 
streams  and  valleys,  with  a  few  fields  of  cane  and  other  produce. 
Nearly  all  the  hills  are  cultivated,  being  planted  to  corn,  coffee,  cacao, 
and  pasture  grass  for  cattle.  The  northern  or  sea  side  of  the  Coast 
Range  is  barren,  cacti  are  abundant,  and  only  goats  are  herded.  It  is 
through  this  sort  of  country,  formerly  only  traveled  by  the  sure- 
footed mule,  that  the  Venezuelan  Government  is  building  a  system  of 
roads  for  wheeled  traffic. 

Curves  on  the  Caracas  and  La  Guaira  road  are  being  reduced  and 
cuts  made  to  widen  the  surface  in  dangerous  places.  New  macadam 
is  being  laid  in  sections  throughout.  On  this  road  the  distance  of  36 
kilometers  can  be  covered  in  one  hour  in  an  automobile  driven  by  an 
experienced  man,  but  the  average  is  1^  hours.  On  the  other  highways, 
by  taking  chances,  a  speed  of  30  kilometers  an  hour  can  be  maintained, 
but  the  driver  must  know  the  road  well  and  have  full  confidence  in 
himself  and  his  machine,  as  very  little  can  be  seen  of  the  road  ahead 
when  one  is  driving  on  account  of  the  frequent  high  banks  of  the  cuts 
and  the  sharp  turns  encountered.  The  Caracas  and  La  Guairar  road 
has  low  stone  walls  in  many  exposed  points  on  turns  where  the  drop 
is  many  hundreds  of  feet  almost  straight  down.  However,  accidents 
are  n<^  very  frequent,  even  at  night,  and  the  automobile  is  being 
used  more  and  more  for  long-distance  travel  throughout  the  country: 
In  the  dry  season  a  car  can  leave  Caracas  and  reach  San  Fernando 
de  Apure  on  the  Apure  River,  in  the  heart  of  the  Orinoco  llanos. 
An  American  seven-passenger  car  has  gone  from  Caracas  to  Trujillo 
via  Barquisimeto  in  the  dry  season  of  the  year,  being  the  first  car  to 
make  the  long  trip  overland  to  the  Andes. 

79747*'— 22 10 


130     VENEZUELA :  A  COMMEECIAL  AND  INDUSTRIAIi  HANDBOOK. 

ENUKERATION  AND  DESCRIPTION  OF  ROADS. 

The  roads  of  the  Caracas  commercial  district  are  as  follows : 

Caracas  to  La  Guaira, — ^Distance,  34.78  kilometers  (1  kilometer= 
0.62  mile) ,  with  an  additional  4  kilometers  from  La  Guaira  to  Macuto, 
the  seaside  resort  to  the  east  of  the  port.  The  elevation  of  Caracas  is 
920  meters  (1  meter =3.28  feet),  and  the  highest  point  on  this  road 
is  at  kilometer  15.2  from  Caracas — 1,004  meters. 

Garwcajs  to  Guatire, — ^Distance,  52.35  kilometers.  The  highest  point 
on  this  road  is  at  kilometer  18  from  Caracas,  960  meters,  and  the  road 
gradually  descends  to  an  elevation  of  335  meters  at  Guatire.  The 
general  direction  from  Caracas  is  east,  and  the  ultimate  objective  of 
the  road  is  the  Kiver  Tuy,  toward  the  coast  southeast  of  Carenero. 
Automobile  stages  are  operated  on  a  two-hour  schedule  out  of  Cara- 
cas, and  freight  is  handled  in  two-wheeled  mule  carts.  There  are 
numerous  small  towns  and  villages  along  the  way ;  considerable  truck 
farming  is  carried  on,  and  major  crops  of  coffee,  cacao,  etc.,  are  pro- 
duced, as  well  as  sugar  cane  and  corn. 

Cara/^as  to  Ocumare  del  Tuy. — Length,  70.2  kilometers.  This  road 
leaves  Caracas  via  El  Valle  and  runs  directlv  southward  through  a 
hilly  country  and  many  small  villages  and  ranches,  tapping  the 
richest  cacao-producing  section  of  the  Caracas  district.  Passenger 
traffic  is  by  means  of  private  or  hired  automobiles,  and  freight  is 
handled  by  mule  carts.  There  is  considerable  pack-mule  and  pack- 
burro  traffic  between  Caracas  and  the  small  villages  along  this  road. 
This  road  is  not  macadamized  as  yet.  The  highest  point  is  at  kilo^ 
meter  24  from  Caracas,  elevation  1,229  meters,  with  a  descent  to  210 
meters  at  Ocumare  del  Tuy. 

Carctcas  to  Valencia. — Originally  planned  to  Valencia,  this  high- 
way now  forms  a  i)art  of  the  Great  Western  Highway  of  Venezuela, 
which  is  under  active  construction  to  the  extreme  western  boundary 
of  the  Republic,  terminating  at  San  Cristobal,  near  Cucuta  (Colom- 
bia). The  distance  by  this  road  from  Caracas  to  Valencia  is  148.8 
kilometers,  the  highest  point  being  at  kilometer  29,  just  beyond  Los 
Teques,  where  the  elevation  is  1,172  meters,  descending  to  470  meters 
at  Valencia.  A  new  macadam  surface  is  now  being  laid  on  this  road 
out  from  Caracas,  some  6  kilometers  being  down  by  October  30, 1920. 
The  road  follows  the  Guaira  River  canyon  upstream,  on  the  opposite 
side  from  the  German  Railway,  as  iar  as  Los  Teques  and  then  crosses 
the  railway  to  follow  down  a  long,  low  range  south  of  the  main  Coast 
Range  of  mountains,  which  lies  to  the  north  of  the  valley.  The 
Guaira  is  again  crossed  at  Guayas  at  an  elevation  of  470  meters,  and 
from  there  the  road  follows  the  railway  around  the  northern  side  of 
Lake% Valencia  to  the  city  of  Valencia. 

The  trip  from  Caracas  to  Guayas,  a  distance  of  44.3  kilometers,  is 
one  of  the  most  picturesque  in  any  country,  with  the  possible  excep- 
tion of  the  Maracay  and  Ocimiare  de  la  Costa  road,  which  crosses  the 
Coast  Range  to  the  sea  and  from  which  can  be  seen  not  only  the  ocean 
but  also  the  Lake  of  Valencia,  a  great  body  of  water.  From  Caracas 
the  road  follows  the  Guaira  on  the  north  bank ;  on  one  side  there  are 
high  hills  reaching  up  into  the  solid  Coast  Range,  while  on  the  other 
there  is  the  rather  wide  valley  filled  with  cane  and  bordered  by  low 
hills  on  the  south — with  the  narrow  river  in  between.  The  river  is 
crossed  several  times  on  steel  bridges,  and  the  road  starts  to  climb 


CARACAS  AND  COMMERCIAL  DISTRICT.  131 

alon^  the  sides  of  the  gradually  narrowing  canyon  of  the  river, 
which,  near  Los  Teques,  becomes  a  steep,  narrow,  almost  perpendicu- 
lar gorge,  with  drops  of  several  hundred  feet  from  the  edge  of  the 
road  into  the  stream  below.  The  view  changes  constantly  with  every 
turn  of  the  road. 

After  leaving  Los  Teques  the  road  strikes  down  a  long  line  of  hills 
lying  away  from  the  Coast  Range,  and  from  this  ridge  can  be  seen 
seven  lines  of  hills  reaching  away  to  the  main  body  of  that  section  of 
the  Coast  Eange  which  borders  the  great  llanos  to  the  south.  There 
are  great  ravines  and  canyons  between  each  line  of  hills.  Most  of 
the  hills  are  cultivated.  The  scenery  is  beautiful  beyond  description, 
but  the  ride  is  not  one  of  safety  or  of  comfort  to  the  average  traveler. 
The  constant  turning  and  sharp  twisting  of  the  road  around  in- 
numerable turns  of  very  reduced  curve  radius  causes  the  motion  to 
affect  many  people.  As  a  highway  for  the  two- wheeled,  one-mule 
carts  of  the  country,  which  compete  with  the  railway  in  freight 
carrying,  this  road  is  ideal,  and  it  can  be  used  also  for  passenger 
automobile  traflSc,  but  not  commercially  for  motor  trucfe,  as  the 
width  is  too  narrow,  the  grade  too  steep  in  many  places,  and  the  turns 
too  short,  and,  moreover,  the  surface  would  not  stand  heavy  truck 
traffic  very  lon^.  This  road  is  also  used  for  the  transportation  of 
cattle  from  the  Maracay  district  to  the  Caracas  market  for  slaughter. 
Herds  of  100  or  more  head  are  often  encountered  along  the  road, 
holding  up  other  traffic.  Considerable  work  is  being  done  in  the 
way  of  new  bridges  over  the  larger  streams,  and  macadamization  is 
now  under  way  from  Caracas. 

Gen.  Gomez,  President  elect  of  Venezuela,  lives  on  his  hacienda 
near  Maracay.  It  is  here  that  cabinet  meetings  are  held,  and  auto- 
mobile traffic  is  fairly  heavy  at  all  times  between  this  place  and  the 
capital.  One  of  the  best  hotels  in  Venezuela  is  located  at  Maracay, 
and  an  additional  attraction  is  the  new  hotel  recently  completed  at 
San  Juan  de  los  Morros,  south  of  Maracay,  where  there  are  good 
thermal  baths. 

There  are  no  figures  indicating  the  total  annual  tonnage  of  freight 
traffic  over  these  roads,  but  taking  that  of  the  paralleling  railways 
as  a  basis  for  calculation,  it  may  be  estimated  that  the  mule  carts 
handle  about  one-half  as  much  general-merchandise  freight  as  is 
handled  by  the  railways. 

Mardcay  to  Ocumare  de  la  -Costa. — ^Leaving  Maracay  at  an  eleva- 
tion of  425  meters,  this  road,  started  in  1916  by  Gen.  Gomez,  crosses 
the  Coast  Range  to  the  seaport  of  Ocumare  de  la  Costa,  situated  to 
the  northwest  of  Maracay  and  about  40  miles  east  of  Puerto  Cabello 
by  water.  The  total  road  distance  is  68.7  kilometers,  and  the  high- 
est point  over  the  pass  is  at  kilometer  24  from  Maracay,  1,120  nlfeters 
above  sea  level.  There  is  a  new  wood  pile  dock  at  Ocumare  de  la 
Costa,  used  by  shippers  of  coffee  from  the  many  large  plantations 
of  this  part  of  the  Coast  Range  and  by  the  small  cruiser  stationed 
there  by  the  Government. 

Originally  built  for  strategic  reasons  and  under  forced  labor,  this 
road  is  receiving  extensive  repairs  and  rebuilding,  several  hundred 
men  being  employed  for  this  purpose  at  the  present  time.  The  road 
is  being  widened,  the  curves  reduced,  the  grade  lessened,  and  rock 
surfacing  put  on  throughout  its  length. 


182     VENEZUELA:  A  COMMERCIAL  AND  INDTTSTBIAL  HANDBOOK. 

This  road  is  important  as  affording  access  to  the  proposed  new  sea- 
port at  or  near  Ocumare  Bay.  Surveys  are  now  being  made  to  deter- 
mine the  actual  location  of  this  new  port,  harbor  construction  works, 
docks,  etc. 

The  new  packing  house  and  also  the  proposed  international  port 
will  very  possibly  be  located  at  the  new  site,  and  a  railway  is  also 
planned  to  Maracay  to  connect  with  the  Gran  Ferrocarril  de  Vene- 
zuela for  Caracas.  The  work  being  done  by  the  engineers  includes 
the  investigation  of  possibilities  for  the  development  of  electric 
power  along  the  right  of  way  to  operate  the  proposed  new  railway. 

The  point  known  as  San  Juan  de  los  Morros  is  the  outlet  to  the 
great  llanos  of  the  cattle  country  of  Venezuela,  stretching  away  to 
the  south  for  200  miles.  Cattle  for  shipment  come  from  the  plains 
through  San  Juan  de  los  Morros,  Villa  Cura,  and  to  Cagua  or  Mara- 
cay, from  which  the  nearest  shipping  or  consuming  point  will  be 
Ocumare  de  la  Costa  if  the  new  packing  plant  is  located  there. 
There  is  a  very  large  area  of  level  pasture  land  made  into  "holding 
pastures  "  around  the  eastern  end  of  Lake  Valencia. 

Llanos  Road^  Cagua  to  San  Fernando  de  Apure, — This  is  a  tribu- 
tary road,  connecting  with  the  Great  Western  Highway  at  Cagua, 
where  it  also  joins  the  Gran  Ferrocarril  de  Venezuela.  Cagua  has 
an  elevation  of  472  meters,  and  Villa  Cura,  20  kilometers  farther 
south,  of  556  meters.  San  Juan  de  los  Morros  is  45  kilometers  from 
the  railway  at  Cagua,  and  the  distance  to  Calabozo  is  175  kilometers. 
Here  the  elevation  is  only  100  meters,  and  at  San  Fernando  de  Apure 
only  73  meters  above  sea  level.  The  total  distance  from  the  railway 
at  Cagua  to  San  Fernando  is  334  kilometers,  but  after  one  leaves 
San  Juan  there  is  little  habitation  of  the  country  until  Calabozo  is 
reached,  and  still  less  farther  on  toward  the  Apure  River. 

The  road  is  worked  with  a  good  dirt  fill  as  far  as  San  Juan  de  los 
Morros,  but  from  there  on  it  is  no  more  than  a  wheel  track  across 
the  great  plains,  and  can  be  traveled  by  wheeled  vehicles  only  during 
the  dry  season  of  the  year — from  November  to  the  end  of  May.  There 
are  sandy  stretches  beyond  San  Juan,  and  during  the  rainy  season 
areas  of  the  country  are  flooded.  Transport  is  by  means  of  wagons 
drawn  by  mules  and  oxen  from  Cagua.  The  merchants  of  San  Fer- 
nando de  Apure  do  not  import  directly,  but  buy  from  wholesalers 
in  Caracas,  Puerto  Cabello,  or  Ciudad  Bolivar.  As  has  been  said, 
the  merchants  of  Caracas  compete  with-thpse  of  Maracaibo  and  Ciu- 
dad Bolivar  for  the  business  of  the  interior.  During  the  wet  season 
of  the  year  river  steamers  can  reach  San  Fernando  from  Ciudad 
Bolivar,  but  not  during  the  months  from  November  to  June  (or  July, 
according  to  the  season).  During  these  months  the  llanos  are  dry 
and  can  be  traversed  by  wagons,  and  trade  with  the  Orinoco  and 
Apure  Valleys  has  been  developed  by  the  Caracas  merchants  over 
this  route,  though  with  increasing  costs  and  difficulty  in  latter  years 
on  account  of  the  increasing  cost  of  wagon  freight.  Formerly  wagon 
freight  from  Cagua  to  San  Fernando  cost  60  bolivars  ($11.58  at 
par)  per  "  carga  "  of  100  pounds,  and  in  certain  years  this  rate  was 
as  low  as  40  bolivars  ($7.72)  per  100  pounds.  The  long  dry  season  of 
1920  and  the  increasing  cost  of  animals  increased  this  rate  to  between 
80  and  100  bolivars  ($15.44  and  $19.30).  Corn  for  feed  was  very  ex- 
pensive, pasture  grass  was  scarce,  and  in  many  places  where  wells 


CARACAS  AND  COMMEBCIAL  DISTBICT.  133 

had  to  be  used  to  water  stock  (draft  animals)  a  charge  was  made  of 
0.50  bolivar  ($0.0965)  per  head.  Costs  were  also  increased  by  the 
fact  that  the  bad  climate  of  the  plains  caused  sickness  among  the 
draft  animals  used  in  this  traffic.  Many  animals  are  lost  in  this  man- 
ner in  each  trip.  In  the  dry  season  motor  trucks  of  light  weight 
could  be  used  as  far  as  Calabozo,  but  with  difficulty  and  at  a  high 
cost.  Trucks  with  a  capacity  of  about  1^  tons  are  recommended  for 
this  section.  After  one  passes  Calabozo  there  are  many  very  sandy 
stretches  of  the  road,  which  is  an  open  track  across  the  wild  country. 
Eighty  kilometers  from  Cagua,  near  a  point  known  as  Uverito, 
the  hills  of  the  southern  division  of  the  Coast  Range  end,  and  the 
road  is  very  good  as  far  as  Ortiz,  98  kilometers  from  the  railway. 
Between  Ortiz  and  Morrocoys,  122  kilometers  from  the  railway,  there 
are  300  men  at  work  on  the  road,  but  it  is  not  yet  in  a  state  for 
wheeled-vehicle  traffic  except  in  the  dry  season.  During  the  rainy 
season  the  Guarico  Eiver  is  navigable  for  canoes  and  light  scows 
from  a  point  called  Puerto  Maicera,  20  kilometers  south  of  the  town 
of  Calaoozo,  down  to  San  Fernando.  Mule  carts  make  the  round 
trip,  in  the  dry  season,  frona  Cagua  to  San  Fernando  and  return  in 
26  days,  the  expenses  of  carts,  men,  mules,  etc.,  being  estimated  at 
12  bolivars  ($2.31)  per  day  per  cart  carrying  600  pounds,  with  two 
men  to  each  10  carts  and  one  foreman  on  horseback. 

NOTES  CONCERNING  GREAT  WESTERN  HIGHWAY. 

Connecting  with  the  Great  Western  Highway  at  Valencia  are  a 
number  of  other  roads  on  which  active  work  is  being  done  to  fit 
them  for  automobile  traffic :  Valencia  to  Puerto  Cabello  (now  ordi- 
narily used  for  automobile  travel),  length,  53.6  kilometers;  Valencia 
to  Nirgua,  length,  100.5  kilometers;  Valencia  to  San  Carlos  (part  of 
the  Great  Western  Highway),  length,  98.75  kilometers;  and  jPuerto 
Cabello  to  San  Felipe,  length,  92.06  kilometers. 

The  Great  Western  Highway  has  been  surveyed  through  to  San 
Cristobal,  near  the  Colombian  border  at  Cucuta,  and  construction 
work  has  passed  San  Carlos  and  is  being  carried  forward  from 
Guanare  and  Barinas  by  sections.  The  entire  road  from  Valencia 
to  San  Carlos  is  being  repaired  and  reconstructed  also.  This  work 
is  being  done  by  the  Federal  Government  under  the  direction  of  the 
Ministry  of  Public  Works.  Common  labor  is  paid  4  bolivars 
($0,772)  per  day  of  12  hours,  and  is  recruited  from  the  political  di- 
visions 01  the  States  through  which  the  road  passes,  each  munici- 
pality having  to  furnish  its  quota  of  men  for  the  road  work  on  the 
basis  of  two  days  per  week  tor  each  man,  according  to  the  popula- 
tion of  the  several  districts.  In  the  llanos,  which  begin  near  Va- 
lencia, toward  San  Carlos,  distances  are  very  great  ana  the  popula- 
tion very  sparse  and  scattered.  Men  often  have  to  travel  for  two 
days  on  foot  to  reach  the  road  camps. 

MOUNTAIN  AND  COAST  TRAILS. 

The  Caracas  district  is  also  well  supplied  with  mule  trails,  nearly 
every  small  town  and  mountain  village  having  its  connecting  link 
in  the  shape  oi  a  good  and  well-repaired  mule  trail  over  which  the 
local  produce  passes  to  market  or  for  shipment  into  Caracas  by  the 


134     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

railway.  Among  these  is  the  trail  froip  La  Guaira  to  Curiepe,  via 
Carenero,  with  a  total  length  of  122.1  kilometers  (1  kilometer =0.62 
mile)  and  connecting  many  small  coast  villages.  There  is  also  the  old 
mountain  mule  trail  from  Caracas  to  Los  Tegues,  via  Carrizal,  31 
kilometers  in  length ;  and  the  old  trail  from  Cfaracas  to  Tacata,  via 
Prim,  43  kilometers  in  length,  and  serving  many  small  ranches  and 
tiny  villages  of  the  district.  A  branch  trail  of  mis  latter  trail  from 
Taica  (on  the  Tacata  road)  to  Soapire,  31.8  kilometers  lon^. 
Another  branch  of  the  same  trail  goes  from  San  Diego  to  Cua,  on 
the  Tuv  River,  and  is  30.5  kilometers  long.  From  Los  Teques  there 
is  another  old  trail  leading  to  El  Consejo,  via  San  Pedro,  34.8  kilo- 
meters long.  From  Las  Ad  juntas,  on  the  railway,  a  trail  goes  to 
Colonia  Tovar,  32.3  kilometers  to  the  north  in  the  mountains  of  the 
Coast  Range.  From  here  another  good  trail  leads  out  to  El  Consejo 
again.  Colonia  Tovar  is  also  connected  with  La  Victoria,  on  the 
railway,  by  a  trail  27  kilometers  in  length,  and  another  trail  goes 
to  Maiquetia  (La  Guaira),  by  way  of  Carayaca,  the  distance  being 
54.3  kilometers.  Colonia  Tovar  is  also  in  touch  with  Caracas  over 
a  more  direct  trail,  via  Agua  Negra,  the  distance  being  47.5  kilo- 
meters. 

The  ancient  mule  trail  from  La  Guaira  to  Caracas,  15  kilometers 
in  length,  is  still  in  daily  use  by  pack  animals  in  competition  with 
the  railway.  From  Guatire,  connected  to  Caracas  by  highway,  a 
trail  goes  to  the  small  town  of  Curiepe  on  the  coast,  forming  a  cir- 
cuit with  La  Guaira.  From  Caracas  a  direct  mule  trail  goes  over  the 
range  to  Charrallave,  climbing  to  an  elevation  of  1,470  meters. 
Santa  Lucia,  now  on  the  Central  Railway,  also  has  a  direct  mule 
trail  to  Caracas  via  the  Arenaza  Canyon,  the  distance  being  47.5 
kilometers.  A  connecting  trail  runs  from  Santa  Lucia  to  Guarenas 
on  the  Caracas-Guatire  highway.  From  Guatire  another  trail  goes 
to  the  town  of  Caucagua,  40  kilometers  away  to  the  southeast.  Santa 
Lucia  has  two  other  trails  leading  to  Caracas,  one  via  Los  Mariches, 
47.5  kilometers  long,  and  the  other  via  the  range  of  Turgua,  43.75 
kilometers  long.  From  the  mouth  of  the  Tuy  Kiver,  at  Paparo,  a 
road  is  being  constructed  to  connect  with  the  Central  Railway  at 
Ocumare  del  Tuy.  This  trail  at  present  follows  up  the  Rio  Tuy  to 
the  river  port  of  Tapipa.  Another  connecting  trail  is  that  running 
from  Ocumare  del  Tuy  at  the  end  of  the  Central  Railway  to  Carmen 
de  Cura,  43  kilometers  to  the  south,  which  is  the  junction  point  of 
a  number  of  tracks  across  the  great  llanos  in  all  directions. 

With  a  total  population  of  431,143  in  the  Federal  District  and  the 
States  of  Aragua  and  Miranda,  comprising  the  immediate  commer- 
cial district  of  Caracas — and  considering  Valencia  and  its  district 
as  a  separate  unit — it  may  be  said  that  Caracas  possesses  a  more 
elaborate  and  better  system  of  roads  and  trails  (having  regard  to 
the  territory  covered  and  the  population)  than  any  similar  region  of 
South  America  or  Mexico.  Even  the  mule  trails  are  of  importance, 
since  they  serve  as  an  easy  and  cheap  means  of  communication  be- 
tween many  small  villages,  otherwise  inaccessible,  producing  a  vari- 
ety of  fruits,  vegetables,  poultry,  hogs,  cane,  bananas  (a  staple 
article  of  diet),  coffee,  and  cacao.  These  trails  are  2  meters  (1  me- 
ter=3.28  feet)  wide,  as  a  rule,  and  are  always  well  kept  up  and 
easily  traveled  by  animals,  even  in  the  rainy  season  of  the  year,    The 


CARACAS  AND  COMMERCIAL  DISTRICT.  135 

t 

total  kilometers  of  wagon  road  (highway)  amount  to  539.83,  and 
the  mule  trails  cover  a  total  distance  of  894  kilometers. 

PORT  OF  LA  GUAIRA. 

The  commercial  district  of  Caracas  has  one  large  seaport.  La 
Guaira,  which  is  at  the  same  time  the  principal  seai)ort  of  the  coun- 
try. There  is  another  smaller  port  at  Carenero  (situated  approxi- 
mately 60  miles  by  sea  from  La  Guaira),  from  which  place  a  railway 
runs  to.  Guapo,  a  distance  of  54.40  kilometers  (1  kilometer=:0.62 
mile),  through  the  coast  region  known  as  " Barlovento." 

LOCATION— CLniATE— POPULATION. 

La  Guaira  lies  directly  north  of  Caracas  (the  distance  in  an  air 
line  being  not  more  than  9  miles)  but  separated  from  it  by  the  high 
Coast  Bange,  over  which  the  lowest  pass  is  more  than  3,000  feet 
above  sea  level,  making  the  actual  rail  distance  22  miles.  La  Guaira 
is  located  on  a  narrow  strip  of  level  land  along  the  beach.  The 
range  is  very  steep  on  the  seaward  side,  forming  a  veritable  wall  be- 
tween the  interior  of  the  country  and  the  ocean.  The  mountains 
ascend  to  5,000  feet  behind  the  port. 

The  first  settlement  in  the  neighborhood  was  at  a  point  known  as 
Caraballeda,  about  8  miles  west  of  the  present  port  of  La  Guaira, 
the  present  town  being  founded  in  1588  shortly  after  the  seat  of 
government  was  moved  from  Coro  to  Caracas. 

The  population  is  about  9,000.  The  mean  annual  temperature  is 
84.5°  F.  The  death  rate  is  33.1  per  1,000.  The  place  is  terribly  hot 
at  times,  and  this  is  always  true  when  one  is  away  from  the  cooling 
trade  winds.  Though  its  reputation  in  the  old  days  was  that  of  a 
dirty,  unsightly  town.  La  Guaira  is  having  many  modern  improve- 
ments, such  as  a  sewerage  system,  a  better  water  system,  additional 
electric  lighting,  concrete-paved  streets,  and  sanitary  dwellings  un- 
der the  new  regulations  of  the  Sanitation  Office  of  Venezuela,  The 
?revailin£!:  diseases  are  malaria  and  tropical  anemia  in  their  many 
orms.  Yellow  fever  has  been  practically  unknown  for  years.  The 
bulk  of  the  population  consists  of  Negroes  and  mulattoes,  many  of 
them  from  the  West  Indian  Islands,  such  as  Jamaica,  Martinique, 
Cura^o,  Trinidad,  Grenada,  etc. 

The  principal  industry  is  handling  cargo  for  the  shippinff  and 
railway.  A  very  considerable  coastwise  traffic  is  carried  on  oy  Vene- 
zuelan steamers  and  sailing  schooners,  as  well  as  a  considerable  trade 
with  the  islands  of  the  Caribbean,  Porto  Rico,  Cuba,  etc. 

SUBURBS  OF  MAIQUETIA  AND  MACUTO. 

The  two  suburbs  of  Maiquetia  and  Macuto  (the  first  just  west  of 
the  town  of  La  Guaira  proper  and  the  latter  4  kilometers  to  the  east 
along  the  beach,  and  both  connected  with  the  city  by  electric  railway 
line)  are  popular  places  for  the  people  of  Caracas  who  come  down 
to  the  sea  on  vacation  and  for  health.  Many  very  pretty  "  quintas  " 
or  "  villas "  are  seen,  and  Macuto  has  a  very  fair  hotel  for  visitors, 
the  Alemania,  with  two  buildings  and  about  30  rooms.  There  are 
inclosed  sea  baths  at  Macuto.  Hotel  charges  range  from  12  to  20 
bolivars  ($2.32  to  $3.86)  per  day  for  room  and  meals.    One  of  the 


136     VENEZUELA:  A  COMMEfiCIAL  AND  INDUSTRIAL  HANDBOOK. 

things  to  do  during  a  stay  in,  Caracas  is  to  go  down  to  Macuto  for 
the  week  end. 

CHARACTER  OF  HARBOR. 

There  is  no  natural  harbor  at  La  Guaira.  In  former  years  it  was 
an  open  roadstead,  and  cargo  was  transferred  into  lighters  alongside 
of  vessels  rolling  heavily  in  the  swell.  Advantage  has  been  taken  of 
a  slight  projection  of  the  coast  to  build  a  breakwater,  which  now 
forms  the  protected  harbor  for  vessels.  The  harbor  works  were 
carried  out  m  1891  by  a  British  company  called  the  La  Guaira  Har- 
bour Corporation,  under  a  concession  from  the  Venezuelan  Govern- 
ment. The  total  cost  was  £980,000  ($4,769,170).  The  original  con- 
tract was  given  to  Punchard  &  Co.,  who  decided,  in  view  of  the  fact 
that  the  roadstead  was  open  to  the  waves  to  the  north  and  east  only, 
that  a  straight  east-and-west  breakwater  would  prove  most  effective. 
The  length  was  to  be  2,050  feet,  and  the  design  allowed  for  the  in- 
closure  of  90  acres  of  water  at  an  average  depth  of  30  feet,  for  3,100 
feet  of  quays,  and  for  18  acres  of  reclaimed  land.  There  are  seldom 
severe  wind  storms  (never  a  full  gale),  and  the  strong  swell  and 
huge  waves  are  the  principal  difficulties  to  be  met.  This  movement 
is  not  entirely  counteracted  by  the  breakwater.  The  work  was  com- 
menced in  December,  1885,  but  the  first  breakwater  was  destroyed 
by  a  particularly  heavy  swell  in  December,  1887;  the  second  was 
begun  in  July,  1888,  and  completed,  more  or  less  as  it  stands  to-day, 
in  July,  1891. 

The  approach  to  the  harbor  is  easily  accessible.  There  are  no  other 
aids  to  navigation  than  the  small  light  placed  on  the  end  of  the 
breakwater.  The  depth  at  the  entrance  around  the  end  of  the  break- 
water is  28  to  30  feet  at  mean  low  water.  The  sheltered  area  of  the 
harbor  formed  by  the  east-and-west  breakwater  (of  stone  and  con- 
crete, 623  meters  long)  is  75  acres,  with  a  minimum  depth  of  28  feet 
at  mean  low-water  mark.  The  minimum  depth  in  the  anchorage 
ground  at  extreme  low  water  is  25  feet.  The  holding  ground  is 
good — composed  of  rock  covered  with  mud.  Vessels  anchor  just  off 
the  end  of  the  breakwater  for  inspection  and  then  come  alongside 
the  mole  (inner  side  of  breakwater). 

The  maximum  rise  of  the  tide  is  3  feet,  and  the  minimum  fall  is 
3  feet. 

Four  mooring  buoys,  owned  by  the  La  Guaira  Harbour  Corpora- 
tion, equip  the  harbor. 

The  deepest  draft  for  a  vessel  that  can  safely  navigate  the  harbor  is 
25  feet. 

The  prevailing  winds  are  northeast  and  southwest.  Storms  seldom 
interfere  with  shipping  traffic,  though  squalls  may  be  expected  during 
the  spring  and  fall  equinox  seasons. 

WHARVES,  PIERS,  AND  WAREHOUSES. 

There  are  three  wharves  and  piers  for  the  accommodation  of  sea- 
going vessels.  The  total  wharfage  available  amounts  to  2,063  linear 
feet.  Three  steamers  can  be  accommodated  at  one  time,  There  are 
four  warehouses,  and  the  total  gross  capacity  of  storage  floor  space 
is  5,134  square  meters  (1  square  meter  =  10.76  square  feet),  including 
covered  sheds. 

The  freight-handling  equipment  on  the  mole  consists  of  one  12-ton 
crane  of  steam-power,  revolving  type,  located  at  the  inner  end  of 


CARACAS  AND  COMMERCIAL  DISTRICT.  137 

jetty  No.  2  and  one  5-ton  revolving  crane  (steam  power)  at  the  inner 
end  of  jetty  No.  1.  Railway  cars  of  the  Harbour  Corporation  run 
to  the  center  of  all  jetties  over  a  sunken  track.  The  large  revolving 
12-ton  crane  will  take  12  tons  at  a  boom  radius  of  36  feet.  There  is 
also  a  15-ton  locomotive  crane. 

For  coastwise  traffic  there  are  four  small  revolving  cranes,  three 
of  which  are  located  on  the  track,  or  land,  side  of  the  Inner  Basin 
landing  for  coastwise  and  island  schooners,  etc.  Three  of  these 
cranes  are  of  3-ton  capacity  and  one  of  5-ton  capacity. 

The  combined  space  of  Jetties  Nos.  2  and  3  is  roofed,  as  is  Jetty 
No.  1.  The  floor  areas  are  215  by  15  meters  (1  meter=3.28  feet) 
and  70  by  15  meters,  respectively.  The  two  sheds  will  hold  6,00() 
tons  of  general  cargo.  Railway  tracks  run  underneath  the  sheds. 
The  wall  on  the  sea  side  is  of  concrete  as  a  protection  from  wetting 
by  high  seas  breaking  on  the  outer  side  of  the  breakwater.  Freight 
unloaded  from  steamers  lying  alongside  jetties  is  conveyed  in  the  cars 
of  the  Harbour  Corporation  to  one  of  the  series  of  warehouses  situ- 
ated on  the  water  front  just  inside  of  the  coastwise  traffic  docks. 
Warehouses  Nos.  1  and  2  are  the  largest,  giving  a  total  inside  floor  space 
of  58  by  28  meters,  with  track  running  down  the  middle — cars  coming 
to  floor  level  for  easy  loading  and  unloading.  Here  import  merchan- 
dise is  stored  under  customs  control  for  inspection  and  dispatch  to 
Caracas. 

Along  the  coastwise  docks  there  are  three  large  warehouses — "  Bajo 
Seco,"  measuring  approximately  65  by  10  meters ;  "  Cabotaje,"  60  by 
10  meters ;  and  "  Orion,"  70  by  10  meters.  All  warehouses  are  of 
reinforced-concrete  walls,  carrying  a  steel-truss  roof  covered  with 
galvanized  iron,  the  walls  extending  up  to  a  large  ventilating  space 
under  the  edge  of  the  roof.    The  floors  throughout  are  of  concrete. 

CARGO-HANDIJNG  CAPACITY  OF  THE  PORT. 

The  total  number  of  metric  tons  of  freight  handled  during  1919-^ 
a  heavy  year  in  importation  of  foreign  merchandise — was,  m  round 
numbers,  38,000,  or  an  average  of  3,166  tons  per  month,  with  the 
heaviest  month  running  less  than  8,500  tons.  Freight  comes  in 
heavily  after  the  buying  seasons,  which  follow  the  coffee  and  cacao 
harvest  and  the  export  season — December  and  May — and  then  falls 
off  in  volume  during  the  rest  of  the  year.  The  heaviest  year  in  the 
history  of  the  corporation  was  that  of  1893,  when  the  grand  total 
of  roughly  96,000  tons  was  handled ;  this  heavy  tonnage  was  caused 
by  the  construction  of  the  Gran  Ferrocarril  de  Venezuela,  and  much 
of  it  consisted  of  such  things  as  locomotives,  bridge  material,  etc. 
At  this  time  the  port  lacked  most  of  its  heavy-lift  equipment  and 
had  only  two  steam  cranes,  as  compared  with  the  six  now  in  opera- 
tion, and  the  corporation  possessed  12  less  cars  for  moving  freight 
to  and  from  the  Caracas  &  La  Guaira  Kailway  terminal.  The 
96,000  tons  were  handled  that  year  without  congestion  or  difficulty, 
although  the  country's  imports,  considered  in  tons,  were  almost  as 
great  as  in  1919.  Since  1893  other  sheds  and  warehouses  have  been 
added  for  the  storage  of  freight,  the  docks  (jetties)  extended,  and 
facilities  generally  increased  by  the  combination  of  the  two  large 
warehouses,  Nos.  1  and  2,  and  the  construction  of  sunken  tracks  be- 
tween to  aid  in  the  easy  handling  of  freight.    The  port  is  equipped 


138     VENEZUELA:  A  COMMEROIAL  AND  INDUSTRIAL  HANDBOOK. 

to  handle  an  average  of  240,000  metric  tons  of  freight  in  and  out  per 
year,  or  an  average  of  20,000  tons  per  month,  without  the  addition 
of  more  equipment  or  storage  space.  The  working  force  is  well 
trained  and  experienced. 

The  Caracas  &  La  Guaira  Railway  has  also  sufficient  rolling  stock 
on  hand  to  take  care  of  this  amount  of  cargo  in  and  out  and  to  keep 
freight  moving  away  from  the  docks  and  warehouses  in  La  Guaira. 
Congestion  is  a  matter  of  customs  inspection  and  rapidity  of  release 
for  shipment  to  Caracas. 

Stevedoring  rates  are  based  on  the  metric  ton  of  1,000  kilos,  or 
2,205  pounds.  The  cost  of  discharging  cargo  is  60  cents  per  hour, 
with  40  cents  additional  for  overtime  in  daylight  and  60  cents  at 
night.  The  regular  hours  of  work  are  from  7  a.  m.  to  4.30  p.  m. 
The  period  of  overtime  in  daylight  is  considered  as  being  from  4.30 
p.  m.  to  6.30  p.  m. 

The  rate  of  handling  cargo  is  20  tons  per  hour  per  hatch  per  gang 
of  20  men.  The  discharging  rate  varies  according  to  the  nature  of 
the  cargo,  as  freight  can  not  be  placed  on  the  wharf  faster  than  the 
customhouse  men  can  check  it. 

The  class  of  labor  employed  is  West  Indian  Negro  and  native 
mulatto.  Experienced  laborers  are  scarce,  and  most  of  them  are 
employed  by  the  Harbour  Corporation. 

Coal  and  heavy-lift  cargo  is  usually  discharged  into  steel  lighters 
lying  alongside  the  vessel.  There  are  six  steel  lighters,  each  of  30 
tons  capacity,  and  the  rate  of  rental  is  $3.65  per  hour. 

FUEL  FOR  STEAMERS— FACILITIES  FOR  REPAIRS. 

There  are  no  bunkers.  A  small  supply  of  Cardiff  briquets  can 
be  obtained  as  emergency  fuel  for  steamers — loaded  from  lighters 
alongside.  Trimming  is  by  the  usual  stevedoring  rate,  as  above. 
The  cost  of  coal  varies  according  to  the  supply  on  hand  and  the  ar- 
rangement made  with  the  company. 

There  is  a  small  repair  shop  for  railway  and  harbor  equipment, 
but  facilities  are  poor  for  ordinary  repairs.  There  are  no  floating 
or  graving  docks  at  La  Guaira,  tne  nearest  being  the  two  floating 
docks  of  the  National  Dry  Docks  and  Shipyards  at  Puerto  Cabello, 
owned  and  operated  by  the  Venezuelan  Government.  The  steel  dock 
there  has  a  capacity  of  3,000  tons,  but  is  said  to  be  in  poor  condition 
and  dangerous  for  a  heavy  vessel  up  to  the  dock's  capacity. 

[An  additional  statement,  covering  pilotage  and  towage,  charges,  fees,  and 
dues,  and  numerous  other  details  relating  to  the  port  of  La  Guaira  is  in  manu- 
script form  and  wiU  be  loaned  by  the  Bureau  of  Foreign  and  Domestic  Com- 
merce to  interested  persons  referring  to  file  No.  44312.] 

INDUSTRIES  AT  LA  GUAIRA. 

There  are  no  sugar  mills,  flour  mills,  cotton  mills,  lumber  mills, 
or  the  like  in  La  Guaira.  (For  an  account  of  such  establishments  in 
Caracas,  see  p.  170  of  this  report.)  La  Guaira  has  one  small  soap 
factory  and  a  chocolate  factory  with  sufficient  production  for  local 
consumption,  but  not  for  export.  The  exports  are  principally  coffee, 
cacao,  and  hides ;  of  manufactured  products,  a  small  amount  of  sugar 
is  being  exported  to  the  United  States,  sandals  to  the  West  Indies, 
cottonseed  oil  to  Porto  Eico,  etc. 


CABACAS  AND  COMMERCIAL  DISTRICT.  139 

STEAMSHIP  SERVICB. 

The  "  Bed  D  "  Line  runs  weekly  steamers  between  New  York,  Porto 
Eico,  La  Guaira,  Puerto  Cabello,  and  Curasao,  carrying  passengers 
and  freight. 

The  New  Orleans  &  South  American  Steamship  Co.  (W.  K.  Grace 
&  Co.)  operates  two  monthly  3,000-ton  steamers  between  New  Or- 
leans and  La  Guaira,  touching  at  Puerto  Cabello^— coming  down  by 
way  of  the  West  Indies  and  returning  via  Colon  and  Central  Ameri- 
can Atlantic  ports  to  New  Orleans. 

The  Caribbean  Steamship  Co.  runs  monthly  freight  steamers  (Nor- 
wegian charters)  from  New  York  to  La  Guaira  and  Puerto  Cabello, 
via  Colon. 

The  Harrison  Line  (British)  has  monthly  steamers  for  freight 
only  between  Liverpool  and  Venezuelan  ports  and  Colon. 

The  Leyland  Line  also  operates  monthly  freight  steamers  from 
Liverpool,  touching  at  La  Guaira  and  Puerto  Cabello  and  Colon. 

The  Compagnie  Generale  Transatlantique  operates  monthly  steam- 
ers from  Havre,  touching  at  La  Guaira  and  f^uerto  Cabello,  coming 
down  by  way  of  the  French  West  Indies  (Martinique)  and  returning 
by  way  of  Colon.  This  company  has  recently  augmented  its  Carib- 
bean service  with  two  new  and  fine  passenger  steamers  of  12,000 
tons  each. 

The  Compaiiia  Transatlantica  Espaiiol  operates  monthly  steamers 
from  Barcelona,  Spain,  via  Habana,  touching  at  La  Guaira  and 
Puerto  Cabello. 

"La  Veloce"  (Italian)  operates  monthly  steamers  between  Genoa 
and  Colon,  via  Habana  and  the  Venezuelan  ports  of  La  Guaira  and 
Puerto  Cabello. 

The  Compaiiia  Venezolana  de  Navegacion  Fluvial  y  Costaiiera 
operates  a  fleet  of  small  steamers  coastwise  and  to  Trinidad,  Curagao, 
and  Maracaibo,  running  from  Port  of  Spain,  Trinidad,  to  Ciudad 
Bolivar  up  the  Orinoco  River  (see  p.  165). 

The  Empresa  Carenero  (agents,  H.  L.  Boulton  &  Co.)  operates 
one  small  steamer  between  La  Guaira  and  the  port  of  Carenero, 
connecting  the  Carenero  Railway  and  serving  that  part  of  the  coast 
east  of  Caracas  between  La  Guaira  and  Guanta. 

PORT  REGULATIONS  REGARDING  PASSENGERS  AND  THEIR  BAGGAGE. 

At  La  Guaira  there  are  very  strict  regulations  regarding  the  land- 
ing of  passengers  and  their  baggage.  Persons  other  than  those 
with  destination  at  the  port  and  with  passports  for  La  Guaira  must 
obtain  a  permit  from  the  prefect  of  police  before  going  ashore  for 
sightseeing  or  shopping,  or  for  the  trip  up  to  Caracas  between  the 
arrival  and  sailing  of  the  steamer.  Passengers  for  steamers  leaving 
must  have  their  passports  vised  not  only  by  the  appropriate  consular 
representative  but  also  by  the  prefect's  office,  this  latter  vise  being 
equivalent  to  a  sailing  permit.  These  landing  or  sailing  permits  are 
first  taken  to  the  customhouse  (up  stairs,  in  the  main  office),  where 
they  are  approved  for  release  of  baggage,  and  then  to  the  office  of 
the  prefect  of  police,  some  distance  away,  in  another  part  of  the 
town.  The  usual  system  employed  is  to  utilize  the  services  of  one 
of  the  many  registered  porters  who  make  a  business  of  taking  care 
of  passengers  at  the  port.     These  men  all  have  numbers  and  are 


140     VENEZUELA :  A  COMMEKCIAL  AND  INDUSTRIAL  HANDBOOK. 

now  organized  into  a  union  or  body  under  the  regulations  of  the 
prefect  issued  August  28,  1920. 

STATEMENT   OF  TONNAGE  MOVEMENT— IMPORTS  AND   EXPORTS. 

Total  imports  handled  by  the  La  Guaira  Harbour  Corporation 
during  the  year  1919  amounted  to  599,057  packages,  with  a  total 
weight  of  38,843.5  metric  tons  (1  metric  ton=2,205  pounds),  of 
which  30,145.8  tons  came  from  the  United  States,  4,486.09  from  the 
United  Kingdom,  688.4  from  France,  1,599.7  from  Spain,  1,258.5 
from  the  Netherlands,  3.3  from  Cuba,  374.9  from  Chile,  31.9  from 
Panama,  85  from  Italy,  149.1  from  Japan,  18.9  from  Denmark,  and 
1.5  from  Colombia. 

During  1919  a  total  of  152  ships  called  with  cargo  at  La  Guaira ; 
the  highest  month  was  September,  with  19  vessels  of  ocean  ton- 
nage, and  the  lowest  months  were  January,  March,  April,  and 
October,  with  10  ships  each.  Of  these  ocean  vessels,  51  were  Ameri- 
can, 22  British,  16  French,  1  Spanish,  11  Venezuelan  (including  10 
sailing  vessels),  14  Norwegian,  9  Italian,  16  Dutch  (including  2 
sailing  vessels)  and  1  Colombian  (sailing  vessel). 

Imports  were  divided  as  follows:  Merchandise  (general), 9,75B 
metric  tons;  hardware,  5,138  tons;  provisions  and  liquors,  14,108 
tons;  oils,  other  than  kerosene,  825.9  tons;  kerosene,  2,451  tons; 
timber,  368.9  tons;  cement,  4,240  tons;  coal,  592  tons;  machinery, 
1,089.8  tons;  railway  and  tramway  equipment  and  materials,  273,7 
tons. 

The  foreign  export  tonnage  is  shown  below : 

LKflo»2.2046  pounds.] 


Articles. 


Coffee 

Cacao 

Hides 

Brown  sugar 

Com 

Othws 

Total. 


Packages. 


233,742 

166,497 

81,004 

34,596 

5,415 

41,368 


562,622 


Kilos. 


14,782,808 

10,738,291 

864,063 

1,719,874 

271,293 

2,255,902 


30,632,331 


In  order  to  show  the  relative  importance  of  the  several  countries 
supplying  merchandise  to  the  Caracas  commercial  district,  the  fol- 
lowing figures  are  given  for  the  imports  at  the  port  of  I^a  Guaira 
during  the  year  1919 : 


[E:ilo«2.2046  pounds;  bc^var  =-$0,193.} 


Ckmntries  of  origin. 


British  Guiana. 

Chile 

Colombia 

Cuba , 

Oura'^ao , 

Dutch  Ouiana. , 

France 

Great  Britain... 
Italy 


KUos. 

BoUvars. 

2,500 

250 

1374,900 

» 210, 754 

80 

340 

769 

17,769 

692,241 

73,876 

2,500 

251 

576,802 

2,978,375 

3,969,914 

«  22,914,727 

275,634 

859,257 

Countries  of  origin. 


Netherlands.. 

Panama 

Porto  Rico. .. 

Spain 

Trinidad 

United  States. 


Total. 


324,882 

76,128 

494 

1,617,539 

213,090 

28,292,288 


36,420,361 


1,228,025 

314,211 

5,994 

3,430,575 

164,017 

71,149,354 


108,347,775 


>  Imports  from  Chile  consisted  entirely  of  flour. 

•  More  than  60  per  cent  (by  value)  of  toe  imparts  from  Great  Britain  were  of  cotton  cloth. 


CARACAS  AND  COMMERCIAL  DISTRICT. 


141 


Imports  at  La  Guaira  by  parcel  post  during  1919  amounted  to 
68,635  kilos,  valued  at  5,767,301  bolivars  ($1,113,089),  of  which  41,540 
kilos,  valued  at  5,057,367  bolivars  ($976,072),  came  from  the  United 
States. 

The  following  table  shows  the  exports  from  La  Guaira  during  1919, 
by  countries  of  destination : 

[KiIo-2.2046  pounds;  boUvar-* $0,193.] 


Countries  of  destination. 


Barbados 

Bonaire 

Canary  Islands 

Colomoia 

Cuba 

Cura'^ao 

Dutch  Ouiana. 

franco 

Great  Britain. . 
Italy 


Kilos. 


388 

19,800 

238,495 

48,936 

132,000 

1,181,289 

13,213 

8,241,402 

3,966,949 

212,494 


Bolivars. 


3,000 

5,404 

412,025 

161,171 

66,000 

761,408 

7,928 

16,964,862 

6,926,864 

447,792 


Countries  of  destination. 


Netherlands . . 
Martinique . . . 

Panama 

Porto  Rico... 

Spain 

Trinidad 

United  States 

Total... 


Kilos. 


1,688,103 

772,213 

1,340 

2,882 

3,660,997 

349,956 

7,451,882 


Bolivars. 


4,369,419 

1,194,212 

7;998 

7,176 

6,163,996 

470,593 

17,125,067 


27,982,339 


55,094,918 


The  remarkable  feature  in  the  above  table  of  exports  is  the  large 
amount  taken  by  France — 790,000  kilos  more  than  the  United  States 
and  more  than  double  the  figure  for  Great  Britain.  This  is  explained 
by  the  heavy  shipments  to  France  of  coffee  (5,112,855  kilos)  and 
especially  of  cacao  (2,339,172  kilos). 

The  foregoing  figures  are  from  the  official  Venezuelan  Estadfstica 
Mercantil  y  Maritima.  According  to  the  figures  of  the  United  States 
consulate  at  La  Guaira,  the  articles  invoiced  for  exportation  to  the 
United  States  from  that  port  during  1919  and  1920  were  as  follows : 


Articles. 


Antiques 

Cocoa pounds. 

Coffee do... 

Copper,  old do. . . 

Cylinders number. 

Glycerine pounds. 

Gold  and  platinum 

Hides pounds , 

"Roms do... 

*'Papel6n" do... 

iWls 


Piants 

Rubber pounds . 

Rubber  scrap do. . . 

Febadilla do... 

Eldns: 

Goatskins do... 

Beerskins do . . . 

Ciklfskins do.., 

Sole  leather do. . . 

Sugar do. . . 

Tortoise  shell do. . . 

Others 


Total. 


1919 


Quantity. 


7,323,764 
7,632,266 

21,725 
1,057 

29,152 


1,903,630 
2,205 
2,239 


5,758 

20,281 

206,001 

257,841 

82,332 

150 

505 

332,653 

1,309 


Value. 


$180 

1,534,327 

1,562,049 

2,530 

8,980 

8,785 

9,102 

614,846 

6,922 

203 

13,137 

394 

9,967 

1,113 

16,767 

79,674 

21,797 

33 

362 

158,443 

2,551 

2,125 


4,054,287 


1920 


Quantity. 

Vahie. 

11,205,699 

9,340,475 

6,867 

142 

4,104 

12,157,428 

2,075,194 

539 

1,685 

463 

10,539 

887,028 

251,238 
1,907 

309 

192 

30,476 

48,510 
61,215 

2,186 

22,861 
17,683 

465,441 

70,770 

41,960 

4,654,645 

Keturned  American  goods  amounted  to  $47,680  in  1920,  as  com- 
pared with  $45,753  in  1919. 

Exports  from  La  Guaira  to  Porto  Eico  were  valued  at  $6,022 
in  1919  and  at  $37,210  in  1920. 


142     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Imports  into  La  Guaira  during  the  year  1919  by  coastwise  trade, 
accordinff  to  Venezuelan  statistics,  amounted  to  a  total  of  43,788^650 
kilos,  valued  at  25,671,406  bolivars  ($4,954,581),  or,  in  value,  about 
one-fourth  of  the  imports  handled  from  foreign  countries  during 
the  same  year.  The  largest  movement  consisted  of  coffee  and  cacao 
for  reexport,  handled  by  the  Caracas  merchants  and  coming  in 
from  points  along  the  coast  to  the  east  and  west. 

Coastwise  exports  from  La  Guaira  totaled  17,463,072  kilos,  valued 
at  56,036,202  bolivars  ($10,814,987),  of  which  a  large  percentage 
consisted  of  foreign-made  goods,  medicines,  foodstuffs,  etc.,  resold 
by  Caracas  merchants  to  points  along  the  coast.  These  reshipments 
from  Caracas  along  the  coast  and  to  interior  points  reached  from 
the  ports  amounts  to  22  per  cent  of  the  total  imports  of  foreign  mer- 
chandise into  the  Caracas  district.  To  this  percentage  must  be 
added  the  goods  moving  along  the  railways  centering  in  Caracas  and 
penetrating  to  the  edge  of  the  "  llanos  "  to  the  south  and  also  going 
to  the  Valencia  agricultural  district  in  competition  with  the  mer- 
chants of  Puerto  Cabello  and  Valencia.  Also,  a  large  proportion 
of  the  direct  imports  into  Maracaibo,  destined  for  the  Andean  region, 
are  handled  from  Caracas  as  the  wholesaling  center.  It  may  be 
estimated  that  at  least  one-third  of  the  ^ods  of  foreign  origin  im- 
ported into  Venezuela  for  Caracas  are  ultimately  reshipped  to  points 
along  the  coast  or  to  the  interior  outside  of  the  immediate  commercial 
district  of  the  capital. 

PORT  OF  CARENERO. 

LOCATION   OF  PORT— CHARACTER  AND   PRODUCTS   OF   TERRITORY   SERVED. 

Sixty  miles  east  of  La  Guaira  is  the  small  port  of  Carenero,  from 
which  the  Carenero  &  Kio  Chico  Railway  runs  along  the  coast 
through  Rio  Chico  to  Guapo,  a  total  distance  of  64.4  kilometers 
(1  kilometer =0.62  mile),  the  line  having  been  built  in  1884.  The 
principal  town  is  Rio  Chico,  32  kilometers  from  Carenero  and  only  4 
miles  from  the  sea  (the  port  being  Carenero).  The  country  may  be 
described  as  a  long,  sandy  stretch  of  beach  and  low  coast  lands,  with 
a  large,  shallow  bay  at  the  mouth  of  the  Tuy  River,  which  the  line 
crosses  at  right  angles,  Rio  Chico  being  to  the  south  but  practically 
at  sea  level  also.  Rio  Chico  is  the  loading  point  for  a  great  deal  of 
the  coffee,  cacao,  corn,  beans,  and  hides  coming  down  from  the  upper 
waters  of  the  Tuy  and  the  country  south  and  east  of  the  Central 
Railway  of  Venezuela.  Hides  from  the  great  llanos  farther  south 
are  shipped  from  here  to  Carenero  and  thence  to  La  Guaira  for  over- 
sea shipment.  There  is  considerable  good,  level  alluvial  land  in  the 
neighborhood  of  Rio  Chico,  but  the  climate  is  very  hot  and  tropical 
conditions  prevail.  The  town  of  Rio  Chico  has  about  20,000  in- 
habitants and  considerable  native  industry  in  the  making  of  soap, 
candles,  and  the  native  sandals,  called  "  alpargatas,"  which  are  ex- 
ported to  the  islands  of  the  West  Indies  and  sent  out  coastwise  also. 
Higuerote,  6  kilometers  from  the  port,  has  only  10,000  people,  and  is 
of  less  importance  than  Rio  Chico. 

CARENERO  RAILWAY. 

The  Ferrocarril  de  Carenero  (French  capital)  was  built  in  1884, 
the  capitalization  of  the  company  being  4,000,000  boUvars  ($772,000) 


CARACAS  AND  COMMEBCIAL  DISTBICT,  143 

and  the  rail  distance  64.4  kilometers  (1  kilometer =^0.62  mile).  It 
serves  the  cacao-producing  section  known  as  the  "  Barlovento,"  that 
being  the  local  name  given  to  this  section  of  the  coast.  The  gauge  is 
3  feet  and  the  rail  weight  40  pounds  per  yard.  Rolling  stock  con-' 
sists  of  5  locomotives  (weighing  altogether  90  tons),  5  passenger 
coaches,  6  flat  cars,  22  box  cars,  and  9  stock  cars.  The  passenger 
tariff  equals  6.28  cents  per  mile,  and  the  freight  rate  is  46.6  per  ton- 
mile.  iJespite  these  rates  the  line  has  shown  a  favorable  balance  in 
only  4  years  out  of  the  lasl  27.  The  heaviest  traffic  was  in  1910, 
when  9,937  tons  of  freight  were  transported.  In  1915  the  tonnage 
was  7,506  and  the  gross  income  was  312,614  bolivars  ($60,335),  or 
21,749  bolivars  ($4,198)  less  than  expenses.  The  road's  management 
also  runs  a  steamer  service  between  Carenero  and  La  Guaira.  The 
owner  is  Sr.  Victor  Crassus,  of  Caracas,  and  the  manager  is  Sr.  R.  F. 
Crassus,  of  Rio  Chico. 

The  road  has  no  tunnels,  but  there  are  77  small  bridges  and  via- 
ducts with  a  total  length  of  877  meters  (1  meter =3.28  feet).  The 
minimum  radius  of  curve  is  84  meters  and  the  maximum  gradient  3 
per  cent.  The  construction  cost  per  kilometer  was  73,529  bolivars 
($14,191).  In  1919  the  road  carried  a  total  of  20,037  passengers 
and  6,922  tons  of  freight,  producing  gross  receipts  of  314,139  bolivars 
($60,629)  for  both:  The  cost  of  operation  and  maintenance  was 
^iven  as  312,677  bolivars  ($60,347),  almost  equaling  the  gross  reve- 
nue from  all  sources.  A  mixed  passenger  and  freight  train  is  run 
every  other  day,  going  down  from  the  port  one  day  and  coming  back 
the  next. 

At  kilometer  22  the  line  crosses  the  Paparo  River  and  then  follows 
the  seashore  for  a  considerable  distance  over  a  long  till  with  swamps 
on  the  land  side.  In  1917,  in  the  latter  part  of  the  year,  heavy  floods 
of  the  Tuy  River  undermined  the  banks  of  the  river  at  the  town  of 
Paparo  on  the  south  bank,  washing  away  some  20  houses  and  flood- 
ing the  entire  area  because  the  embankment  of  the  railway  acted  as 
a  dam.  At  Boca  Vieja  and  Paparo  traffic  had  to  be  transferred  with 
boats,  and  the  line  was  not  in  operation  from  Rio  Chico  to  Guapo 
for  some  time,  normal  service  being  resumed  in  January,  1918.  Two 
large  culverts  were  built  into  the  embankment  at  Paparo  to  take 
care  of  flood  waters  and  give  them  an  outlet  to  the  sea.  A  new 
station  has  replaced  the  old  one  at  San  Fernando,  and  a  reinforced 
concrete  house  has  been  built  for  employees  at  Carenero. 

HARBOR  OF  CARENERO. 

The  harbor  of  Carenero  is  a  small,  deep  bay  protected  from  the 
heavy  swells.  Communication  is  by  means  of  the  steamship  Colon 
(owned  by  the  railway  company),  of  several  hundred  tons,  which 
plys  between  Carenero  and  La  Guaira,  making  weekly  trips  with 
passengers  and  freight.  By  Executive  decree  of  July  1,  1917,  this 
port,  together  with  five  others  (Barrancas,  San  Felix,  Rio  Caribe, 
truanta,  and  Tucacas)  were  declared  ports  of  export  only.  Mer- 
chandise for  these  ports,  when  cleared  at  La  Guaira,  Puerto  Cabello, 
or  Carupano,  is  entitled  to  a  customs  rebate  of  0.05  bolivar  ($0.00925) 
upon  each  kilo  (2.2046  pounds)  of  gross  weight  as  compensation  for 
the  extra  expense  of  transshipment.  There  is  one  small  pier  of  old 
rail  piling  for  the  landing  of  small  vessels.    The  depth  at  the  end  of 


144     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

the  pier  is  11  feet.  The  harbor  is  said  to  be  capable  of  development 
into  a  first-class  roadstead  for  large  vessels,  and  plans  have  been 
formed  in  the  past  for  a  railway  from  Petare,  on  the  Central  Rail- 
'way,  via  Guatire,  to  Carenero,  the  grade  being  an  easy  one  with  no 
great  obstacles.  However,  with  the  development  of  the  plans  for  the 
new  Government  harbor  at  Ocmnare  de  la  Costa  or  Turiama,  there  is 
small  prospect  of  this  extension  being  carried  out  for  some  time  to 
come. 
Higuerote  has  no  pier,  and  the  beach  is  open. 

IMPORTS  AND  EXPORTS  AT  CARENERO  AND  HIGUEROTE. 

Carenero  and  Higuerote  come  under  the  jurisdiction  of  the  port 
of  La  Guaira.  During  the  year  1919  Higuerote  imported  a  total  of 
1,712  tons  of  general  merchandise,  valued  at  1,423,631  bolivars  ($274,- 
761),  and  Carenero  received  1,693  tons,  valued  at  3,423,281  bolivars 
($660,693),  Of  this  last  sum,  597,155  bolivars  ($115,251)  was  in  for- 
eign  merchandise  from  La  Guaira.  Exports  from  Higuerote 
amounted  to  1,356  tons,  valued  at  957,779  bolivars  ^$185,237),  and 
consisted  principally  of  cacao,  amounting  to  907,987  kilos,  valued  at 
837,574  bolivars  ($161,652) .  Carenero,  during  the  same  year,  shipped 
a  total  of  3,685  metric  tons,  valued  at  2,702,566  bolivars  ($521,595), 
of  which  3,261,706  kilos,  valued  at  2,543,627  bolivars  ($490,920), 
was  cacao. 

COASTAL  REGION  EAST  OF  CARENERO. 

The  coast  to  the  east  of  Carenero  is  a  wide,  shallow  bay,  lined  with 
swamps  in  many  places,  with  the  land  gradually  ascending  to  the 
watershed  of  the  llanos  to  the  south.  The  high  Coast  Range  ends 
at  Carenero  aiid  begins  again  near  Barcelona  and  the  port  of  Guanta. 
This  stretch  of  coast  aflFords  a  natural  access  to  the  great  plains  of 
the  Orinoco,  but  is  sparsely  inhabited.  There  are  no  ports  of  any 
consequence  until  Guanta  is  reached.    The  climate  is  very  tropical. 

POINTS  WEST  OF  LA  GUAIRA— PLANS  FOR  NEW  SEAPORT. 

To  the  west  of  La  Guaira  along  the  coast  there  are  a  number  of 
small  bays  which  serve  as  loading  points  for  the  coffee  plantations 
of  the  region — the  entire  Coast  Range  as  far  as  Puerto  Caoello  being 
a  series  of  large  and  small  coffee  plantations.  Traffic  is  by  means  of 
small  schooners  and  launches.  The  principal  point  between  La 
Guaira  and  Puerto  Cabello  is  the  harbor  of  Ocumare  de  la  Costa, 
where  the  Government  of  Venezuela  has  contemplated  establishing 
a  new  seaport  and  bonded  warehouse,  making  this  the  cattle-shipping 
port  of  the  Caribbean  coast,  since  it  is  the  nearest  port  to  the  cattle 
center  of  Maracay.  A  highway  has  been  built  over  the  pass  from 
Maracay  to  Ocumare  (see  p.  131),  and  American  engineers  are  now  on 
the  ground  studying  conditions  and  making  surveys  and  estimates  for 
the  work,  which  will  include  a  railway  to  connect  with  the  Ferro- 
carril  de  Venezuela  at  Maracay  and  also  the  development  of  electric 
power  for  the  operation  of  this  railway,  sufficient  power  being  avail- 
able from  some  places  in  the  mountains  along  the  right  of  way. 
Recent  reports  show  the  feasibility  of  changing  the  present  location 
from  Ocumare  to  the  Bay  of  Turiama,  just  to  the  west,  where  it  is 


special  AEflnts  Serit 


CARACAS  AND  COMMBBCIAL  DISTRICT.  145 

said  no  dredging  work  will  have  to  be  done  and  the  natural  features 
of  the  harbor  are  better. 

PORT  OF  OCUMARE  DE  LA  COSTA. 

The  town  of  Ocumare  de  la  Costa,  so  called  to  distinguish  it  from 
that  of  Ocumare  del  Tuy,  south  of  Caracas  on  the  Tuy  Elver,  has  a 
population  of  about  3^00  and  is  located  inland  from  the  harbor, 
about  20  miles  east  of  IPuerto  Cabello.  Considerable  cacao  is  grown 
in  the  neighborhood,  up  the  deep  small  valley,  at  the  mouth  of 
which  the  place  is  situated,  6  kilometers  from  the  port  and  on  the 
road  to  Maracay.  There  is  also  a  mule  trail  leading  to  Puerto  Ca- 
bello along  the  coast.  ^ 

Upon  the  completion  of  the  work  on  the  road  from  Maracay,  an 
Executive  decree  of  December  19.  1916,  ordered  the  construction  of 
an  aqueduct  for  the  town  and  ot  a  pier  at  the  port,  the  plans  for 
which  called  for  25  meters  (1  meter=:3.28  feet)  of  concrete  approach 
work  and  88  meters  of  wooden  pier,  6  meters  wide  on  top,  2.4  meters 
above  high-water  level,  and  giving  a  depth  of  water  of  5.18  meters 
at  the  end  of  the  structure.  Piling  is  of  creosoted  pine,  32  feet  long 
and  12  inches  in  diameter.  The  work  was  completed  in  December, 
1918,  the  pier  being.  150  meters  long  and  10  meters  wide  on  top,  car- 
rying a  small  track  and  hand  car,  two  wing  boat  landings,  and  an 
open  shed  at  the  end.  Reinforced-concrete  loading  platforms  are 
provided,  as  well  as  a  building  for  storage  purposes.  The  port  is  ad- 
ministered from  Puerto  Cabello.  During  the  year  1919  imports  to- 
taled 406  metric  tons  of  general  merchandise,  valued  at  380,970  boli- 
vars ($73,527).  and  exports  totaled  506  tons,  valued  at  567,245  boli- 
vars ($109,478),  consisting  principally  of  coffee — 174,219  kilos,  val- 
ued at  233,113  bolivars  ($44,991)— and  cacao--166,018  kilos,  valued 
at  233^79  bolivars  ($45,119). 

Traffic  is  by  means  of  small  schooners  and  launches  from  Puerto 
Cabello.  One  of  the  small  cruisers  of  the  Venezuelan  Navy  is  always 
stationed  at  Ocumare  de  la  Costa. 

The  customs  officials  of  Puerto  Cabello  also  have  jurisdiction  over 
the  small  "ports  of  export"  of  Tucacas  and  Chichiriviche  (see  p. 
243). 

COMMERCIAL  TERRITORY  TRIBUTARY  TO  CARACAS. 

As  has  been  said,  the  large  importing  wholesale  houses  of  Caracas 
sell  to  all  parts  of  the  country,  even  competing  for  the  trade  of  the 
interior  with  the  importers  of  Maracaibo  and  Ciudad  Bolivar.  Di- 
rectly tributary  to  Caracas  are  the  three  independent  Caribbean  sea- 
ports of  Guanta  (the  port  for  Barcelona),  Cumana,  and  Carupano. 
At  all  these  ports  the  coastwise  traffic  is  very  much  larger  than  that 
of  direct  importation,  showing  the  service  to  the  Caracas  merchants 
rendered  by  the  national  coastwise  steamer  company,  the  Compaiiia 
Venezolana  de  Navegacion  Fluvial  y  Costaiiera,  which  affords  a 
means  for  the  distribution  of  merchandise  imported  into  the  country 
through  La  Guaira. 

It  has  also  been  said  that  Caracas  is  the  commercial  and  financial 
as  well  ad  the  political  center  of  the  country.  Capital  is  lacking  in 
the  interior  and  in  the  coast  region  to  the  east,  and  it  is  through  the 
granting  of  credit  that  the  Caracas  houses  are  able  practically  to 

79747*— 22 11 


146     VENEZUELA :  A  COMMERCIAL,  AND  INDUSTRIAL  HANDBOOK. 

control  the  trade  of  this  region.  Another  factor  is  that  of  the  dis- 
posal and  sale  of  the  crops  of  these  places,  which  yield  considerable 
cacao  (the  principal  product),  and  coffee.  Cumana  ships  consider- 
able quantities  of  tobacco  and  cotton.  These  products  are  usually 
financed  in  Caracas. 

Another  tributary  district,  to  a  certain  extent,  is  the  island  of 
Margarita,  which  may  be  considered  as  a  unit  separate  from  the  three 
above-mentioned  ports,  since  its  industries  are  different,  consisting 
of  pearling,  fishing,  and  the  production  of  raw  magnesite.  The  com- 
merce of  Margarita  is  also  more  independent,  and  considerable  direct 
importation  is  done.  Means  of  communication  are,  however,  the 
same. 

PORT  OF  GUANTA  AND  CITY  OF  BARCELONA. 

About  175  miles  by  sea  east  of  La  Guaira  is  the  seaport  of  Guanta, 
18  kilometers  (1  kilometer  =  0.62  mile)  from  Barcelona,  capital  of 
the  State  of  Anzoategui,  which  has  an  area  of  43,300  square  kilo- 
meters and  a  population  of  161,703,  or  3.7  to  the  square  kilometer. 
The  territory  of  the  State  stretches  from  the  Caribbean  coast,  be- 
tween Point  Carenero  and  Barcelona,  south  to  the  Orinoco  River,  a 
distance  of  about  200  miles  across  the  great  llanos.  The  city  of 
Barcelona  has  a  population  of  about  15,000  people  at  the  present 
time.  It  was  founded  by  Juan  Urpin  in  1637  and  moved  to  its 
present  site  in  1671.  Toward  the  end  of  the  eighteenth'  century  the 
place  had  gained  considerable  importance  on  account  of  the  demand 
in  Cuba  and  the  other  West  Indian  Islands  for  beef  cattle  to  feed  the 
slaves,  and  for  horses  and  mules,  the  north  coast  being  very  much 
nearer  than  the  far-away  River  Plate.  Barcelona's  position  at  the 
point  where  the  llanos  extend  right  to  the  coast,  and  consequently 
where  there  are  no  mountains  to  cross,  gave  the  city  a  great  advan- 
tage over  Cumana  and  other  seaports,  and  its  trade  and  population 
grew  rapidly.  From  1790  to  1800  the  population  grew  from  10,000  to 
16,000. 

Barcelona  is  a  town  of  good  appearance,  with  many  well-paved 
streets  and  a  number  of  houses  of  more  than  one  story  (since  there 
is  no  fear  of  earthquakes,  such  as  exists  at  Cumana).  It  is  situated 
very  near  the  sea,  but  the  water  is  very  shallow  and  there  is  no 
harbor  on  account  of  the  many  shoals  of  sand,  preventing  its  use 
by  vessels  of  any  size.  The  next  most  important  center  is  the  town 
of  Aragua  de  Barcelona,  with  16,000  people,  situated  in  the  interior 
of-  the  State  and  principally  engaged  in  the  cattle  trade  with  the 
coast  and  the  Orinoco.  The  elevation  at  Aragua  de  Barcelona  is 
only  365  feet  above  sea  level,  and  this  part  of  the  llanos  is  very  hot 
and  tropical.  Communication  with  the  coast  is  interrupted  during 
the  summer  months  by  the  heavy  rains,  and  there  is  usually  a 
scarcity  of  water  during  the  dry  season  for  the  cattle  and  for 
agriculture. 

GUANTA,  BARCELONA  &  NARICUAL  RAILWAY. 

The  Guanta,  Barcelona  &  Naricual  Railway  was  built  by  Venezuelan 
capital  at  a  cost^of  5,199,745  bolivars  ($1,003,551),  and  was  opened  for 
traffic  in  1893.  In  1895  it  was  taken  over  by  purchase  by  the  Gov- 
ernment.    The  total  rail  length  of  the  main  line  is  36.41  kilometers 


I 

CARACAS  AND  COMMERCIAL  DISTRICT.  147 

(1  kiloineter=0.62  mile);  the  gauge  is  3  feet  6  inches,  and  the 
^weight  of  rail  40  pounds  per  yard.  The  maximum  grade  is  2.'5  per 
cent,  and  the  minimum  curve  radius  125  meters  (1  meter =3.28 
feet).  There  are  six  bridges,  with  a  combined  length  of  266  meters. 
The  roiling  stock  consists  of  three  locomotives  weighing,  altogether , 
60  tons ;  eight  passenger  coaches,  six  flat  cars,  and  six  box  cars.  The 
passenger  rate  is  6.66  cents  per  mile,  and  the  freight  rate  is  equal 
to  34  cents  per  ton-mile.  The  gross  income  in  1892  was  109,445 
bolivars  ($21,123),  and,  with  occasional  and  slight  recoveries,  it 
fell  continually,  until  in  1913  it  was  only  58,625  bolivars  ($11,315). 
In  1915  the  receipts  were  103,023  bolivars  ($19,883),  or  8,124  boli- 
vars ($1,568)  less  than  operating  expenses.  The  road  is  operated  by  an 
administrator,  who  also  manages  the  Government-owned  coal  mines 
at  Naricual  and  the  pier  at  Guanta.  Freight  transported  increased 
from  6,400  metric  tons  (1  metric  ton=2,205  pounds)  in  1915,  to  15,410 
tons  in  1916,  steadily  increasing  to  28,862  tons  in  1919.  Passenger 
traffic  also  increased  from  3,635  in  1917  to  13,553  in  1919.  Total 
gross  receipts  in  1919  amounted  to  281,704  bolivars  ($54,369),  while- 
expenses  were  271,243  bolivars  ($52,350).  This  increase  in  traffic: 
is  due  to  the  operation  of  the  coal  mines  by  the  Government  (see? 
p.  151). 

In  1915  the  Neveri  River  was  declared  open  for  traffic  and  coast- 
wise navigation.  This  decision  caused  a  great  decrease  in  the  traffic 
carried  by  the  railway  between  the  port  of  Guanta  and  the  city  of 
Barcelona,  so  that  now  the  line  is  almost  entirely  dependent  uponi 
the  freight  charges  paid  on  the  coal  from  the  mines  at  NaricuaL 
Purchasing  is  through  the  Ministry  of  Public  Works.  The  rate 
paid  on  coal  from  the  mines  was  placed  at  2  bolivars  ($0.39)  per 
metric  ton,  according  to  the  tariff  of  November  6, 1918.  It  was  founds 
however,  that  this  rate  would  not  even  cover  expenses,  so  the  rate 
has  been  increased  to  10  bolivars  ($1.93)  per  ton.  The  mines  and 
railway  are  under  the  direction  of  Sr.  Pedro  Gonzalez  E.,  with 
headquarters  in  Barcelona. 

The  Government  has  steadily  improved  the  entire  system,  two  new 
32-ton  locomotives  have  been  brought  down,  and  the  line  has  been  re- 
paired to  take  their  weight  as  far  as  the  new  coal  mines  of  "  Lallor- 
quin"  and  "Las  Penas,"  previously  inaccessible  by  rail,  except  for 
the  lightest  eauipment.  Several  new  switches  now  enter  the  mines  of 
"  Gomez  "  ana  "  Las  Tomas,"  46  coal  cars  have  been  repaired  from 
the  old  equipment  purchased  from  the  iron  mines  of  Imataca,  and 
all  old  rolling  stock  has  been  put  into  serviceable  condition — it  being 
the  plan  of  the  Government  to  produce  at  the  mines  500  tons  of  coal 
per  day,  and  of  the  railway  to  transport  15,000  tons  per  month  to 
Guanta.  The  sum  appropriated  for  the  railway  in  1919  ^as  650,000 
bolivars  ($125,450). 

HARBOR    CONDITIONS    AT   GUANTA— EXPORTS    AND    COASTWISE 

TRAFFIC. 

The  old  iron  pile  dock  at  Guanta  is  being  replaced  with  a  new 
cement  structure,  and  a  cattle  shipping  corral  (with  a  capacity  of 
1,000  head  at  one  time)  has  also  been  completed  at  Guanta  for  th& 
greater  facility  in  loading  cattle.  Water  for  cattle  has  been  provided,, 
as  well  as  for  vessels  calling  at  the  port. 


148      VENEZUELA :   A  COMMERCIAL.  AND  INDUSTRIAL  HANDBOOK. 

In  1919  a  total  of  7,974  head  of  beef  cattle  were  shipped  from 
Guanta,  principally  to  Cuba  and  Porto  Rico.  Heavy  shipments  to 
Cuba  continued  in  1920.  Cattle  pay  1  bolivar  ($0.19)  per  head  for 
corral  and  1  bolivar  for  wharfage  charges.  In  1919  these  revenues 
amounted  to  15,991  bolivars  ($3,086).  The  Government  is  studying 
the  problem  of  handling  coal  at  Guanta,  and  there  is  a  project  for 
the  construction  of  a  line  to  La  Pajita,  1  kilometer  (0.62  mile)  from 
the  present  dock,  where  the  water  is  deep  close  to  shore  and  the  cars 
could  be  carried  10  meters  (1  meter  z=  3.28  feet)  above  the  level  of 
the  vessel  lying  alongside. 

The  old  iron-tube  pile  pier  is  being  reconstructed  by  means  of 
concrete  cylinders  placed  around  the  old  piling  (which  was  not  filled 
with  cement  and  soon  rusted  away  at  the  water  line).  The  deck 
structure  is  of  reinforced  concrete  cords  and  concrete  flooring:  The 
cost  runs  about  2,000  bolivars  ($386)  per  linear  meter,  plus  500  boli- 
vars ($96)  for  the  deck  work.  During  1918  and  1919,  65  linear 
meters  have  been  reconstructed  in  this  manner,  and  there  remain  to 
be  completed  50  meters,  on  which  work  is  actively  being  pushed. 
Steamers  of  2,000  tons  have  loaded  cattle  and  coal  alongside.  Tht$ 
harbor  of  Guanta  is  called  the  best  natural  harbor  on  the  Venezuelan 
coast  and  was  formerly  a  regular  port  of  call  for  steamers  of  the 
Royal  Dutch  West  India  Mail  and  the  Hoi  land- American  Line. 
French  steamers  call  at  Guanta  for  shipments  of  cacao  and  tobacco. 

For  foreign  trade  the  port  is  not  one  of  import,  but  only  of  export, 
and  for  coastwise  commerce  it  comes  under  the  jurisdiction  of  the 
customs  of  Cumana  (Puerto  Sucre).  Carupano  is  a  port  of  foreign 
export  and  import,  as  is  also  Puerto  Sucre.  During  the  year  1919 
Guanta  exported  a  total  of  3,532  metric  tons,  valued  at  1,301,050 
bolivars  ($251,103),  to  islands  in  the  West  Indies,  the  principal  item 
being  beef  cattle.  Its  coastwise  shipments  amounted  to  8,386  tons, 
valued  at  2,217,709  bolivars  ($428,018).  Coastwise  imports,  cleared 
at  Puerto  Sucre  and  La  Guaira,  amounted  to  1,871  tons,  valued  at 
4,385,113  bolivars  ($846,327),  consisting  principally  of  general  mer- 
chandise and  foodstuffs,  as  follows:  Foreign-made  cotton  goods, 
1.877,423  bolivars  ($362.343) ;  domestic  cotton  goods,  340,465  bolivars 
($65,710) ;  foreign  goods,  not  specified,  767,879  bolivars  ($148,201). 

COAL  FIELDS  OF  NARICUAL. 

EXTENT  OF  COAL  ZONE— IMPORTANT  VEINS  DISCOVERED. 

While  possibly  not  the  largest  deposits  of  coal  in  Venezuela — ^there 
being  other  important  coal  fields  in  the  country — those  of  the  State  of 
Anzoategiti  (Barcelona)  are,  at  the  present  time,  the  most  developed 
and  the  best  known.  The  carboniferous  region  of  Barcelona  may  bg 
said  to  be  limited  on  the  south  by  the  Querecual  River  and  on  the 
north  by  the  hills  of  Naricual.  There  are  in  this  district  a  multitude 
of  veins  running  in  diiferent  directions,  but  generally  from  east  to 
•  west ;  the  greater  number  of  them  are  not  yet  opened  or  worked. 

The  extent  of  this  coal  zone  is  estimated  at  800  square  kilometers 

(1  square  kilometer  =  0.385  square  mile)  by  the  Italian  engineer,  E. 

Cortese,  and  at  40  square  miles  by  Arthur  L.  Pease  and  John  Roberts, 

English  engineers.    The  latter  also  estimated  the  possible  production 

of  the  mines  of  Naricual  alone  al^  5,500,000  tons. 


CAKACAS  AND   COMMERCIAL.  DISTRICT. 


149 


Writing  in  1892,  T.  E.  Richards,  then  manager  of  these  mines, 
stated  that  the  quantity  of  coal  found  under  the  galleries  is  practi- 
cally unlimited,  and  the  Venezuelan  engineer,  Miguel  E.  Palacios, 
affirms  that  the  Valleys  of  Naricual,  Capiricual,  and  Tocoropo  con- 
tain an  inexhaustible  supply  of  coal.  The  important  veins  discovered 
to  date  are : 

1.  Those  found  on  the  left  bank  of  the  stream  of  Araguita.  a  branch 
of  the  Naricual  River — ^these  having  been  most  worked.  Extraction 
was  begun  at  the  outcroppings  seeen  in  the  side  of  the  hill  by  means 
of  galleries  sent  in  along  the  veins.  Afterwards  a  more  rational 
plan  was  adopted — that  of  a  transverse  gallery  from  north  to  south, 
cutting  the  veins  at  right  angles  and  permitting  their  exploitation 
at  the  same  time  through  one  main  tunnel.  The  thickness  of  these 
veins  has  been  as  follows :  No.  1, 1  meter  (3.28  feet) ;  No.  2,  from  0.50 
to  1.20  meters ;  No.  3,  from  1  to  2.80  meters ;  No.  4,  as  much  as  3.10 
meters;  No.  5,  1.25  to  2  meters;  No.  6,  very  uneven  in  its  thickness; 
average  thickness  of  all  veins  of  the  Araguita,  1.  20  meters. 

2.  To  the  west  of  these  veins,  in  the  place  called  "  Cerro  Grande," 
another  vein  was  opened  near  the  railway  line  for  easy  transport. 

3.  Near  the  course  of  the  stream  Simplicio,  about  1,500  meters  from 
the  Araguita,  three  workings  were  opened,  and  from  this  place  has 
come  the  best  quality  of  coal,  the  veins  running  from  2.10  to  2.60 
meters  in  thickness. 

4.  In  all  the  district  there  are  numerous  outcroppings  of  coal, 
many  of  which  have  been  worked  from  the  surface  to  some  extent, 
that  of  "  Las  Peiias  "  producing  a  considerable  quantity  of  good  coal. 
AH  of  these  mines  belong  to  the  National  Government,  which  for- 
merly rented  them  to  private  enterprises,  but  now  operates  them  for 
its  own  account  under  the  direction  of  the  Ministry  of  Public  Works. 
The  railway  also  now  belongs  to  the  Government,  as  well  as  the  port 
works  of  Guanta. 

ANALYSIS  AND   CHARACTERISTICS  OF  NARICUAL   COAL. 

Following  is  an  analysis  of  the  Naricual  coal : 


Years. 


1874. 
1890. 
1890. 
1880. 
1892. 
'  1901. 
1907. 
1913. 


Authority. 


G.  E.  Barber,  Sheffield . . . 

School  of  Mines,  Paris 

do 

do 

M.  E.  Palaeios, engineer.. 

E.Cortese 

National  Laboratory 

Oscar  A.  Machado 


Mines. 


Naricual . 
Arainiita . 

do.... 

do-.. 

do — 


Water. 


Per  cent. 


Araguita . . 
Las  Feflas. 


10.20 
6.00 
5.50 
1.72 
1.25 
.95 
1.10 


Volatile. 

Carbon, 
free. 

Ash. 

Per  cent. 

Per  cent. 

Per  cent. 

31.00 

63.50 

4.5 

39.80 

48.00 

2.00 

43.00 

45.00 

6.00 

43.90 

47.60 

3.0O 

31.12 

65.10 

1.63 

38.63 

58.49 

2.83 

35.26 

62.02 

L77 

36.17 

59.03 

3.70 

3ulphur. 


Per  cent. 
0.68 


.43 

"'."98 
1.9? 


The  characteristic  of  this  coal  is  its  high  volatile  content,  causing 
it  to  burn  very  easily  and  with  a  long  flame.  The  amount  of  fixed 
carbon  varies  between  45  and  66.25  per  cent,  being  lower  than  that  of 
some  of  the  imported  coals  coming  into  the  country.  The  vein  called 
"Simplicio"  produces  the  best  amount  of  fixed  carbon.  In  the 
exploitation  of  these  mines  there  is  produced  about  33  per  cent  of 
lump  coal  and  67  per  cent  of  fine  coal  mixed  with  dust,  making  the 


150     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

use  of  briquettin^  machines  necessary  in  order  to  utilize  the  coal 
dust  in  mixture  with  asphalt.  As  the  depth  of  the  mines  is  increased, 
the  percentage  of  sulphur  diminishes  and  that  of  fixed  carbon  be- 
comes correspondingly  greater.  Upon  passing  through  a  distillation 
process,  the  coal  of  Barcelona  leaves  in  the  retorts  a  large  quantity 
of  coke  of  good  quality,  not  too  compact  and  making  a  very  good 
fuel.    The  production  of  gas  is  very  considerable. 

Samples  of  the  diiferent  veins  of  this  coal  district  tested  for 
caloric  value  in  the  School  of  Mines  of  Paris,  and  by  various  engi- 
neers, show  results  of  8,256  to  9,303  calories  per  pound. 

The  Barcelona  coal  is  called  a  bituminous  lignite,  of  good  quality 
and  resembling  the  best  long-flame  coals  from  relatively  modern 
formations  o'f  the  Tertiary  period. 

COST  PER  TON,  #LACED  ON  BOARD  AT  QUANTA. 

The  cost  of  1  ton  placed  on  board  at  Guanta  is  calculated,  at  pres- 
ent, as  follows  (1  bolivar =$0,193  at  par)  : 

Bolivars. 

Mining  extraction 2.  75 

Sorting . .  80 

Mine  transport 2.  00 

Loading  cars  (mine  cara) .20 

Mine  transport  to  main  outlet .  95 

Portable  railway  to  railway .  20 

Lighting   mine , 2. 00 

Pumping  of  mine  water .  20 

General    expenses .  75 

Administration 2. 60 

Transport  by  rail  to  Guanta 3. 00 

Loading  vessel,   Guanta 2.  00 

Total ^ . 17.  85 

The  construction  by  the  Government  of  new  switch  lines  directly 
from  the  railway  to  the  mouth  of  the  main  galleries,  the  use  of  the 
hopper  cars  brought  from  Imataca  in  1917,  and  the  general  repair 
of  the  railway  and  the  installation  of  better  loading  methods  at 
Guanta  will  greatly  lower  the  cost  of  production  and  delivery  of  this 
coal  at  seaboard. 

COAL  MINES  AT  UNARE. 

Mention  should  also  be  made  of  the  coal  mines  located  at  Unare,  on 
the  right  bank  of  the  Unare  River,  120  miles  east  of  La  Guaira  and 
about  15  miles  west  of  the  mines  of  Naricual.  The  mines  are  de- 
scribed as  being  5  miles  from  tidewater,  with  a  minimum  depth  of 
14^  feet  of  water  in  the  river.  About  20  tons  per  day  have  been 
delivered  at  Puerto  Ujiare. 

FORMATION  OF  NARICUAL  FIELDS. 

An  American  engineer  and  coal  expert  inspected  and  investigated 
the  coal-  fields  of  Venezuela  in  1914.  Of  the  Naricual  fields  it  was 
said  that  the  formation  was  schist,  shale,  and  sandstone,  the  coal 
being  of  characteristic  high  volatile  percentage,  light  ash,  and  low 
sulphur  content.    The  analysis  is  as  follows : 

Ver  cent. 

Volatile 25.07  to  43.90 

Ash 1.6.*^,  to     6.20 

Sulphur  content .43  to    2.16 

Free-carbon  content 45.00  to  66.12 


CARACAS   AND   COMMERCIAL  DISTRICT.  151 

The  preyailinff  formation  is  described  as  follows :  The  coal  mines 
of  the  Naricual  %asin  are  situated  about  12  miles  south  of  Guanta  at 
Las  Penas.  Coal  measures  consist  of  alternating  beds  of  sandstone 
and  clay  schists,  folded  and  tilted  in  such  a  way  as  to  be  perpendic- 
ular in  many  places.  The  chief  sandstone  beds  are  formed  of  quartz 
grains  and  feldspar,  with  clay  binding  medium — others  being  mica- 
ceous, containing  iron  oxide,  while  still  others  are  of  fine-grained, 
hard,  gray  quartzite.  The  schists  are  of  two  kinds — one  being 
argillaceous,  very  friable,  dark  greenish  gray  in  color,  and  crossed 
by  thin  beds  of  clay  containing  lumps  of  iron  oxide,  and  the  others 
being  strong  and  light  brown  in  color.  Each  coal  seam  is  inclosed 
between  beds  of  schist  serving  as  a  roof  or  floor.  The  strike  is  in  a 
general  easterly  direction;  the  dip  is  southwest  and  varies  between 
50°  and  80°,  the  angle  made  with  the  horizontal  diminishing  as  the 
distance  from  the  coast  increases.  The  sulphur  is  within  permissible 
limits  and  lower  than  in  some  Pittsburgh  coals,  which  contain  as 
high  as  5.88  per  cent.  The  caloric  value  (Gontal  formula)  is  7,900 
to  8,400  and  the  British  thermal  units  14,720  to  14,113  per  pound. 
This  grade  of  coal  can  be  used  for  quick  steaming,  puddling  iron, 
pottery  kilns,  etc.  The  chief  drawback  is  the  extreme  friability, 
almost  90  per  cent  crumbling  to  a  powder. 

At  Guanta  there  is  a  plant  for  making  100  tons  of  briquettes  per 
day.  The  briquettes  cost,  delivered  at  Las  Penas,  16.60  bolivars 
($3.35)  per  ton,  and,  delivered  on  board  vessels  at  Guanta,  21.60 
bolivars  ($4.16)  per  ton.  The  total  production  up  to  1919  had  been 
about  20,000  tons  per  annum. 

OFFICIAL  REPORT  ON  MINES  OWNED  AND  OPERATED  BY  GOVERNMENT. 

In  the  Memoria  del  Ministerio  de  Fomento,  1920,  pages  233  to 
253,  inclusive,  is  given  a  complete  report  on  the  condition,  production, 
and  equipment  of  the  Naricual  Basin  coal  mines,  owned  and  operated 
by  the  Venezuelan  Government.  There  are  cross-section  drawings  of 
the  workings  of  the  various  veins,  as  well  as  many  views  of  the  mines, 
locations,  etc. 

The  total  production  for  1919  was  25,559  metric  tons  (1  metric  ton= 
2,205  pounds),  against  23,316  tons  for  1918.  The  cost  of  coal  placed 
on  board  at  Guanta  varied  between  28.70  and  23.11  bolivars  ($5.49 
and  $4.46)  during  the  year,  with  an  average  cost  of  24.69  bolivars 
($4.75).  The  predicted  cost  f.  o.  b.  vessel  at  Guanta  for  1920  was 
29  bolivars  ($5.60)  per  metric  ton.  The  railway  now  receives  10 
bolivars  f$1.93)  per  ton  for  freight  on  coal  from  the  mines  to 
Guanta,  allowing  the  railway  a  surplus,  even  though  the  cost  of  the 
coal  is  increased  at  Guanta. 

During  1919,  in  the  seven  veins  being  worked  by  the  Government,  a 
total  of  26,037  cubic  meters  of  coal  were  blocked  out  for  future 
extraction,  as  compared  with  22,096  cubic  meters  during  1918.  In 
the  "Gomez"  vein  11,000  meters  of  coal  were  lost  by  fire.  There 
was  an  accumulation  of  7,986  tons  of  coal  at  Guanta  in  October,  1919. 

Sales  to  the  National  Government  at  cost  during  1919  amounted 
to  4,584  tons,  valued  at  116,281  bolivars  ($22,442),  and  to  private 
parties  16,909  tons,  valued  at  592,303  bolivars  ($114,314).  Present 
prices  are:  For  mine  run,  50  bolivars  ($9.66)  per  ton;  for  lump  coal, 
60  bolivars  ($11.68)  per  ton.    During  the  last  four  months  of  1919, 


152     VENEZUELA:  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 

1,437  tons  of  briquettes  were  manufactured  at  an  average  cost  of 
>75  bolivars  ($14.4?)  per  ton  and  sold  for  90  bolivars  ($17.37)— since 
increased  to  100  bolivars  ($19.30) — ^per  metric  ton.  Profits  on  coal 
in  1919  were  150,992  bolivars  ($29,141),  against  84,355  bolivars 
($16,281)  for  1918.  The  total  capital  investment  of  the  Government 
in  the  mines  of  Naricual,  Capiricual,  and  Tocoropo  is  1,503,779 
bolivars  ($290,229),  including  the  railway  and  docks  at  Guanta,  the 
mines  being  represented  by  471,833  bolivars  ($91,064).  Returns 
show  a  profit  of  10  per  cent  for  the  Government  on  the  investment. 
The  increased  production  of  coal  and  the  manufacture  of  briquettes 
automatically  increase  the  net  profit  per.  ton. 

Experiments  in  the  manufacture  of  coke  have  given  a  very  good 
product  on  a  small  scale,  but  not  on  a  large  scale  when  this  has  been 
attempted,  the  product  in  the  latter  case  being  of  uneven  quality 
and  otherwise  unsatisfactory  on  account  of  poor  equipment. 

New  machinery  brought  from  the  abandoned  iron  mines  of  the 
Canadian- Venezuelan  Ore  Co.  at  Imataca,  inventoried  at  758,098 
bolivars  ($146,313),  include  four  250-horsepower  boilers,  one  500- 
kilowatt  generator  (steam  turbine),  two  electric  winches  of  150 
horsepower  each  for  overhead  cable  system,  265  coal  wagonettes  of  J 
cubic  meter  capacity  each,  two  air-compressor  plants,  10  kilometers 
(1  kilometer =0.62  mile)  of  port9.ble  track,  a  steam  prospecting  drill 
outfit,  and  much  other  useful  material  and  equipment  for  minmg  on 
a  large  scale. 

With  this  new  equipment  for  mining,  the  Ministry  of  Fomento 
has  made  plans  for  the  production  of  500  tons  per  day,  or  between 
12,000  and  15,000  tons  per  month  delivered  at  Guanta  for  sale. 
Workings  will  be  increased  to  10,  of  100  tons  daily  production  each ; 
the  electrical  machinery  will  be  installed  for  power  development 
and  transportation  to*  the  railway  by  means  of  the  cable ;  a  new 
modern  briquette  plant  of  20  tons  per  day  will  be  purchased  and 
installed ;  the  railway  from  the  mines  to  Guanta  will  be  completely 
overhauled  to  transport  15,000  tons  per  month  to  the  port;  modern 
coal-loading  equipment  for  vessels  will  be  constructed  at  Guanta; 
and  vessels  will  be  purchased  for  coastwise  transport,  the  auxiliary- 
powered  schooner  being  recommended  as  a  good  type.  The  total 
estimated  expenditures  amount  to  4,075,000  bolivars  ($786,475). 

COAL  DEPOSITS  OUTSIDE  OF  NARICUAL  BASIN. 

In  the  country  to  the  east  of  Barcelona  and  throughout  the  Paria 
Peninsula  there  are  numerous  outcroppings  of  coal.  Many  of  these 
have  been  prospected  from  time  to  time,  and  several  concessions  have 
been  given  by  the  Venezuelan  Government  for  their  exploitation ;  but, 
except  at  the  Government  mines  at  Naricual,  little  has  been  done, 
concessions  mainly  being  offered  for  sale  to  foreign  companies,  etc 
This  part  of  the  country  has  also  been  prospected  and  explored  for 
petroleum  by  the  General  Asphalt  Co.,  owner  of  the  asphalt  deposits 
that  lie  farther  south  and  east  at  Bermudez.  The  most  important 
of  these  coal  deposits  outside  of  the  Naricual  Basin  appear  to  be 
those  of  the  municipality  of  El  Pilar,  south  of  Carupano,  Benitez 
district.  State  of  Sucre,  south  of  the  main  range  of  the  mountains 
of  the  peninsula  of  Paria.  On  November  7,  1917,  the  Venezuelan 
Government,  through  the  Ministry  of  Fomento,  gave  a  contract  to 


CAEACAS  AlO)  COMMERCIAL  DISTRICT.      '  153 

Sr.  Elias  Rodriguez  Gonzales  for  two  coal  mines  in  this  district, 
the  concessions  covering  200  hectares  (1  hectare=2.47  acres)  each  and 
being  called  "  Santa  Ana "  and  "  Santa  Rosa,"  respectively.  Six 
months  from  date  of  contract  were  allowed  for  the  survey  and  map- 
ping of  the  ground  ceded  and  three  years  for  operations  to  begin. 
The  conditions  of  contract  allowed  the  payment  of  1,000  bolivars 
($193)  for  each  claim  for  an  extension  of  time  for  two  years  more 
after  the  expiration  of  the  first  period  of  three  years  if  the  mines 
were  not  put  in  operation  in  that  time.  The  Government  was  to 
receive  a  royalty  of  2  bolivars  ($0,386)  per  ton  extracted,  with  the 
minimum  roj^alty  placed  at  1,000  bolivars  ($193)  for  the  first  year 
and  2,500  bolivars  ($482)  for  each  year  thereafter.  The  contractor 
was  obligated  to  sell  to  the  Government  all  coal  needed  at  20  per  cent 
under  the  market  price  at  the  time  of  sale.  The  total  duration  of  the 
concession  was  30  years  and  the  cash  deposit  10,000  bolivars  ($1,930). 
These  propeities  have  not  been  actively  exploited  as  yet. 

GENERAL  DESCRIPTION  OF  «  ORIENTE  "  TERRITORY. 

The  city  and  port  of  Cumana  is  the  capital  of  the  State  of  Sucre, 
of  which  Carupano  is  also  a  seaport  farther  along  the  coast  to  the 
east.  The  'State  of  Sucre  covers  all  of  the  peninsulas  of  Paria  and 
Araya  and  takes  in  the  main  body  of  the  eastern  Coast  Range,  wjhich 
extends  from  near  Barcelona  along  the  coast  to  the  end  of  the  penin- 
sula of  Paria.  The  topography  of  mountains  and  foothills  is  varied 
by  the  Gulf  of  Cariaco,  lying  between  the  peninsula  of  Araya  and 
the  mainland  and  the  great  lowlands  and  swamps  at  the  eastern  end 
of  the  gulf.  A  few  miles  oif  the  mainland  to  the  north  are  the  islands 
of  Margarita,  Coche,  and  Cubagua,  all  of  which  are  inhabited  and 
of  considerable  importance  in  pearling,  fishing,  and  mineral  produc- 
tion. These  islands,  however,  do  not  come  under  the  administration 
of  the  State  of  Sucre,  but  are  directly  subordinate  to  the  National 
Executive. 

The  entire  region  is  an  interesting  one  for  the  geologist  and  natu- 
ralist. Almost  every  known  formation  is  found;  there  are  great 
caves,  hot-water  springs,  and  rare  bird  and  animal  life.  Humboldt 
and  Codazzi  spent  considerable  time  in  this  district,  which  has  also 
been  visited  by  more  modern  explorers  and  scientific  men. 

The  principal  elevations  of  this  division  of  the  Coast  Range  are: 
Pico  Turumiquire,  2,600  meters  (1  meter=3.28  feet);  San  Boni- 
facio, 1,500  meters ;  Cerro  Purgatorio,  1,550  meters ;  and  Tataracual, 
1,460  meters.  The  main  range  lies  along  the  coast  and  the  peninsula 
of  Paria;  but,  like  the  Coast  Range  in  the  region  of  Caracas,  it  is 
also  divided  into  two  sections  called  the  "  Serrania  Costanera  "  and 
the  "  Serrania  Interior,"  the  division  for  this  eastern  range  being 
formed  by  the  Gulf  of  Cariaco  and  the  long,  low  extension  toward  the 
southeast  of  the  lowlands  and  swamps  of  Cariaco,  terminating  in 
the  lagoons  of  Campoma  and  Putucual.  The  Serrania  Interior  is  of 
less  average  height  than  the  line  along  the  coast,  and  contains  numer- 
ous small,  rich  valleys,  where  coffee,  cacao,  tobacco,  and  other  prod- 
ucts are  grown  on  a  small  scale,  but  in  the  aggregate  of  considerable 
importance.  *  The  State  line  along  its  southern  boundary  (with  the 
State  of  Monagas)  follows  this  line  of  hills  or  interior  division  of  the 
Coast  Range,  the  average  elevation  being  about  2,000  feet  above  sea 


154     VENEZ^JEIaA:   A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

level.  On  their  southern  slopes  these  hills  present  many  opportuni- 
ties for  agricultural  development,  with  abundant  watercourses,  etc., 
and  the  plains  farther  south  toward  Maturin,  in  the  State  of  Mona- 
gas,  present  a  more  pleasant  prospect  than  any  other  region  of  the 
great  llanos  of  Venezuela. 

In  Venezuela  the  term  "Oriente"  is  used  to  describe  the  entire 
eastern  part  of  the  country,  including  the  delta  of  the  Orinoco  and 
the  territory  of  Ciudad  Bolivar.  Commercially,  however,  the  divi- 
sion is  different.  Ciudad  Bolivar  and  the  delta  country  form  a  sepa- 
rate and  distinct  unit,  while  the  Caribbean  coast  country  properly 
belongs  to  Caracas  when  considered  commercially,  there  being  little 
connection  with  Ciudad  Bolivar,  except  a  small  commerce  from  the 
eastern  end  of  the  peninsula  of  Paria  by  way  of  Port  of  Spain,  Trini- 
dad. Maturin,  center  of  the  State  of  Monagas,  trades  with  Carupano 
and  Trinidad  by  water  through  the  Cano  San  Juan  and  the  Golfo 
Triste,  transportation  being  by  small  schooners. 

Separated  from  the  islands  of  Cubagua  and  Coche  by  a  few  miles 
of  shallow  water  is  the  peninsula  of  Araya,  south  of  which  lies  the 
Gulf  of  Cariaco,  a  long  east-and-west  arm  of  the  sea,  open  to  the 
west  and  terminating  on  the  east  in  great  swamps  and  lagoons.  At 
the  entrance,  on  the  mainland,  is  located  Cumana,  capital  of  the  State 
of  Sucre,  named  after  Mariscal  Sucre,  whose  birthplace  was  Cumana. 
The  town  was  founded  in  1520  and  owed  much  of  its  early  progress 
to  Bartolome  de  las  Casas,  the  Spanish  priest  who  did  so  much  for 
the  freedom  of  the  Indians  in  South  America  in  old  colonial  times. 
Many  earthquakes  have  played  an  important  part  in  the  city's  his- 
tory. The  town  is  connected  with  the  port  by  half  a  mile  of  road 
across  sand  flats ;  there  is  also  a  tramway  operated  by  animal  power. 
The  shallow  Gulf  of  Cariaco  extends  for  about  50  miles  to  the  east. 

At  the  western  end  of  the  peninsula  of  Araya  is  the  site  of  the  old 
castle  of  Araya,  built  at  the  suggestion  of  Las  Casas  for  the  preserva- 
tion of  peace  between  the  Indians  of  the  mainland  and  the  Cubaguans 
who  had  made  Nueva  Cadiz  on  Cubagua  Island  the  center  of  the 
Caribbean  slave  trade  before  the  town  and  fortress  were  totally  de- 
stroyed by  an  earthquake  and  tidal  wave  in  1543. 

On  the  peninsula  are  also  extensive  "  salinas,"  or  salt  pits,  owned 
and  operated  by  the  Government.  Oil  seepages  and  springs  have 
been  found,  but  no  petroleum  in  paying  quantities,  though  the  terri- 
tory has  been  recently  prospected  with  drills  by  an  American  com- 
pany. The  salt  produced  is  second  in  quantity  and  quality  only  to 
that  of  Coche  and  is  said  to  amount  to  about  6,000  tons  or  more  per 
year. 

Cumana,  built  on  the  banks  of  the  Manzanares  River,  is  famous 
for  its  fruits,  principally  pineapples,  grapes,  and  mangoes,  and  in  the 
less  fertile  hills  back  of  the  town  are  grown  cacao,  the  principal 
product  of  the  region,  some  coffee,  etc.  The  principal  exports  are 
coffee,  cacao,  hides,  tobacco,  sugar,  and  beans,  though  only  coffee, 
cacao,  and  hides  are  sent  abroad.  Most  of  the  produce  is  carried 
along  mountain  trails  to  Puerto  Sucre,  as  the  port  is  called.  The 
main  route  from  the  interior  follows  the  Manzanares  River  for  most 
of  its  course,  but  the  last  few  leagues  lie  over  a  steep  ridge.  The 
upper  valley  of  the  Manzanares  has  some  beautiful  scenery,  as  the 
gorge  is  followed  through  limestone  hills  until  the  town  of  Cuma- 


CARACAS  AND  COMMERCIAL  DISTRICT.  155 

nacoa  is  reached.  Fifty  miles  from  Cumana  to  the  south  and  east 
there  is  little  habitation  or  production,  and  the  coastal  region  is  said 
to  be  fit  for  only  cotton,  fiber,  and  coconut  cultivation. 

Around  Cumanacoa  there  are  fertile  hillsides  and  rich  alluvial 
flats,  chiefly  devoted  to  coffee,  sugar,  or  beans.  This  town  was 
founded  by  Domingo  de  Arias  in  1717  and  named  San  Baltazar  de 
las  Arias.  Above  Cumanacoa  the  valley  narrows  into  a  gorge  run- 
ning up  into  the  mountain  mass  on  the  borders  of  Sucre  and  Mo- 
nagas,  the  watershed  forming  the  boundary  line  between  the  two 
States.  Twenty-five  miles  south  of  Cumanacoa  is  the  town  of  San 
Antonio— in  Humboldt's  time  a  flourishing  mission  center. .  Four  or 
five  miles  to  the  southeast  lies  the  Caripe  Valley,  famous  for  its  to- 
bacco and  for  the  Guacharo  cavern  so  well  described  by  Humboldt, 
through  which  runs  underground  the  Eio  Caripe.'  Thirty  miles  from 
San  Antonio,  at  Aragua  de  Maturin,  the  edge  of  the  hills  is  reached 
and  the  llanos  begin.  To  the  northeast  there  lies  a  great  stretch  of 
little'  known  and  sparsely  inhabited  country,  consisting  chiefly  of 
forest-clad  hills;  this  region  is  capable  of  supporting  millions  of 
cacao  trees,  but  there  is  no  population  worth  mentioning.  Near  Pun- 
ceres  there  are  petroleum  springs,  and  in  this  region  there  are  many 
indications  of  oil,  which  may  some  day  lead  to  development.  To  the 
east  is  the  old  port  of  San  Juan  of  colonial  days,  with  a  depth  of 
water  in  the  "  cano  "  of  the  same  name  sufficient  for  sailing  craft  and 
steam  vessels  of  considerable  size  (5,000  tons  up,  at  asphalt-loading 
port  of  Guanoco)  and  used  by  the  commerce  of  Maturin.  Most  of 
the  produce  for  export  from  the  northern  part  of  Monagas  and  the 
southern  part  of  Sucre  passes  across  the  steep  divide  over  the  trails 
to  Cumana  and  Puerto  Sucre. 

The  famous  asphalt  lake  of  Bermudez  lies  just  north  of  the  Cano, 
San  Juan,  at  Guanoco,  in  the  State  of  Sucre.  These  deposits  are 
owned  by  the  General  Asphalt  Co.  They  were  once  thought  to  be 
larger  than  those  of  the  Pitch  Lake  in  Trinidad,  but,  though  the 
visible  area  is  larger,  it  has  since  been  found  to  be  less  in  thickness 
(depth).    The  quality  is  better  than  that  of  Trinidad. 

The  principal  port  of  Oriente  is  Carupano,  on  the  north  coast, 
midway  between  the  two  peninsulas  of  Paria  and  Araya.  The  town, 
seen  from  the  steamer,  appears  to  lie  huddled  up  at  the  foot  of  the 
steep  mountains  much  like  La  Guaira,  but  in  reality  it  stretches  up 
the  small  valleys  of  two  streams  which  here  flow  into  the  sea.  Its 
position  makes  it  very  hot.  A  trail  comes  down  across  the  mountain, 
over  which  passes  the  cacao  for  which  Carupano  is  famous,  as  well 
as  some  cotton,  sugar,  and  alcohol.  The  "  white  rum  "  of  Carupano 
is  well  known  throughout  the  country.  The  population  is  about 
11,000,  and  there  are  potteries  of  considerable  local  and  coastwise 
importance,  small  rope  factories  (using  the  fiber  of  the  agave  grow- 
ing on  the  semiarid  mountain  slopes  about  the  town),  and  some  in- 
dustry in  the  making  of  nets,  soap,  etc.  Sulphur  and  (it  is  said) 
gold-bearing  quartz  are  found  near  by,  but  no  systematic  effort  has 
ever  been  made  to  work  these  minerals. 

About  10  miles  east  of  Carupano  is  the  small  port  of  Rio  Caribe, 
a  port  of  export  only  and  dependent  upon  the  customs  administra- 
tion of  Carupano.  Vessels  have  to  lie  in  the  open  roadstead  with  no 
shelter,  and  traffic  is  by  means  of  small  schooners  which  take  away 


156     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

the  cacao  produced  in  the  hills  back  of  the  port.  Beyond  Bio  Caribe 
is  the  peninsula  of  Paria,  a  beautifully  wooded  mountain  range  rising 
from  the  water's  edge  and  separated  from  Trinidad  only  by  a  narrow 
strait  with  numerous  island!s.  The  northern  side  of  the  peninsula 
is  little  inhabited,  but  the  coast  facing  the  Gulf  of  Paria  on  the 
south  has  several  small  settlements,  chiefly  engaged  in  the  cultivation 
of  cacao  and  the  cutting  of  timber,  their  produce  being  shipped 
to  Trinidad. 

Cristobal  Colon  is  the  most  easterly  port  of  Venezuela,  and  its 
position  at  the  extreme  eastern  end  of  the  peninsula  of  Paria,  oppo- 
site the  delta  of  the  Orinoco,  led  former  President  Castro  to  believe 
that  a  small  expenditure  of  public  money  would  lead  to  the  diversion, 
from  Trinidad  to  Venezuela,  of  all  the  freight  now  passing  via 
Port  of  Spain  to  Ciudad  Bolivar.  This  was  an  ill-founded  hope, 
however,  as  events  proved,  for  the  harbor  is  a  very  poor  one,  open  to 
a  continual  heavy  swell  coming  in  through  the  "  Bocas  " ;  this  diffi- 
culty could  be  overcome  only  by  extensive  harbor  works,  the  cost 
of  which  is  unwarranted  by  the  circumstances.  The  wharves  and 
warehouses  erected  represent  a  sacrifice  of  public  money. 

[The  above  "  general  description  "  has  been  taken,  in  part,  from  the  chapter 
entitled  "  In  the  Oriente,"  in  "  Venezuela,"  by  L.  V.  Dalton,  pp.  181-189,  and  has 
been  inserted  in  order  to  convey  a  good  general  idea  of  the  eastern  coast  of 
Venezuela,  which  is  commercially  tributary  to  Caracas  by  reason  of  the  coast- 
wise steamer  service  and  coasting  trade.] 

ROADS  AND  HIGHWAYS   OF   CUlJlANA-CARUPANO   DISTRICT. 

There  are  no  railways  in  this  district  other  than  the  short  line  at 
the  asphalt  mines  of  Guanoco  in  the  State  of  Sucre,  15  kilometers 
(1  kilometer =0.62  mile)  long,  connecting  the  asphalt  deposits  with 
the  river  port  on  Cano  San  Juan,  and  another  line,  3  kilometeirs  long, 
at  the  asphalt  mines  of  Guanipa  in  the  State  of  Monagas. 

The  Barcelona-Soledad  Highway  has  been  surveyed  as  far  as 
Soledad  (across  the  river  from  Ciudad  Bolivar),  a  total  distance  of 
360  kilometers.  This  new  highway  will  eventually  put  Barcelona 
and  the  seaports  of  Guanta,  Cumana,  and  Carupano,  with  their 
connections,  in  touch  overland  with  the  commercial  center  of  the 
Orinoco  country,  Ciudad  Bolivar.  The  road  is  now  newly  repaired 
and  rebuilt  (over  the  old  one  built  during  Guzman  Blanco's  admin- 
istration) as  far  as  San  Mateo,  at  kilometer  58,  and  is  expected  to 
reach  Aragua  de  Barcelona  next  year. 

This  road  was  badly  planned  in  the  beginning  and  has  suffered 
constant  damage  from  floods,  which  have  rendered  it  almost  useless 
as  a  highway.  The  ground  covered  is  low,  and  at  Marin  and  Flores 
floods  have  repeatemy  interrupted  traific  in  the  past.  It  is  being 
relocated  throughout  most  of  its  extent  and  provision  is  being  made 
to  take  care  of  flood  waters  during  the  rainy  season.  Its  opening 
for  traflic  will  greatly  help  the  commerce  of  the  llanos  to  reach  tide- 
water at  Guanta  and  will  prove  a  welcome  stimulus  to  trade  in 
Barcelona. 

The  'Cwmana-Cumanaxioa  Highway  is  under  construction,  via 
Puerto  de  la  Madera  on  the  Manzanares  River,  to  the  soda  mines  of 
Los  Ipures  (kilometer  20)  and  on  to  San  Fernando  and  Cumanacoa, 
a  total  distance  of  56  kilometers.    The  Manzanares  Biver  has  been 


CARACAS   AND   COMMERCIAL  DISTRICT,  157 

canalized  at  the  point  called  "  Bebedero,"  near  Cumana,  to  prevent 
flooding.  At  the  end  of  1919  22  kilometers  had  been  completed 
and  opened  to  traffic  as  far  as  Montes,  and  the  work  is  being  pushed 
by  the  States,  assisted  by  the  National  Government.  The  sum 
allowed  by  the  treasury  is  1,000  bolivars  ($193)  bimonthly. 

The  Carupano'Gdridco  Highway  is  under  construction  and  repair. 
By  the  end  of  1919,  40  kilometers  had  been  completed  in  the  district 
of  Rivero,  and  20  kilometers  of  mule  trail  had  been  repaired  from 
Cariaco  to  Bendon.  This  highway  crosses  the  ranges  to  El  Pilar 
and  then  strikes  due  west  to  the  town  of  Cariaco,  which  is  located 
on  the  shores  of  the  Gulf  of  Cariaco. 

Another  highway  is  under  construction  from  Rio  Caribe  to  Ya- 
guaraparo,  across  the  difficult  Coast  Range.     This  will  eventually 

gut  the  Caribbean  coast  in  direct  communication  with  the  Gulf  of 
'aria.  Twelve  kilometers  had  been  completed  by  the  end  of  1919. 
Another  connecting  local  road  is  that  from  Carupano  to  Rio  Caribe, 
on  which  5  kilometers  have  been  completed. 

The  Maturin  cund  Cano  Colorado  Highway  is  also  under  construc- 
tion, the  total  distance  being  38  kilometers.  Trade  with  Maturin  has 
been  by  schooners  from  the  sea  up  the  Cano  San  Juan  to  the  point 
where  the  Rivers  San  Juan  and  Guarapiche  join,  this  being  the  cus- 
toms statioTi.  The  San  Juan  leads  to  Guanoco,  where  are  the  Ber- 
mudez  Lake  asphalt  deposits  of  the  General  Asphalt  Co.  A  few 
miles  up  the  Guarapiche  is  the  village  of  Cano  Colorado,  and  Ma- 
turin lies  about  30  miles  away  across  country,  though  the  distance  is 
much  farther  by  the  river,  up  which  freight  is  transported  in  "  bon- 
gos" (large  dugout  canoes)  by  poling.  The  river  is  narrow  and 
swift,  the  journey  taking  three  days  upstream.  A  trail  leads  across 
the  plains  to  Ciudad  Bolivar  and  Barrancas  on  the  Orinoco  River, 
crossing  some  of  the  best  cattle  country  in  Venezuela. 

PORT  OF  CUMANA. 

ojBVELOPMENT—POPULATION—INDUSTRIES. 

The  present  States  of  Sucre,  Anzoategui,  and  Monagas  were  called 
by  the  Spaniards  Nueva  Andalucia,  and  Cumana,  founded  in  1520 
by  Gonzalo  de  Ocampo,  was  the  first  city  in  South  America  and 
the  capital  of  the  new  Province.  Its  site  was  changed  several  times, 
but  it  was  finally  definitely  located  in  its  present  position  by  Diego 
de  Serpa  in  1569  and  was  called  Cumana,  its  previous  name  havings 
been  Nueva  Cordoba.  Earthquakes  in  1756,  1794,  and  1797  almost 
totally  destroyed  the  place,  and  shocks  were  again  experienced  in 
1812  and  1853,  when  little  remained  of  the  original  structures  of 
the  town. 

The  population  is  15,000,  and  the  industries  consist  of  coffee,  cacao, 
brown  sugar  ("papelon"),  tobacco,  rum,  coconut  oil,  divi-divi,  cot- 
ton goods,  dried  fish,  and  furniture  made  from  the  fine  native  woods. 

The  National  City  Bank  of  New  York  maintains  an  agent  in  Cu- 
mana, and  it  is  a  port  of  call  for  several  of  the  European  steamship 
lines. 

The  principal  factories  are  the  Telares  e  Hilanderias  Orientales, 
capital  3,000,000  bolivars  ($579,000),  established  in  1910,  and  the 
Industrial  de  Manzanares,  capital  2,000,000  bolivars  ($386,000),  es- 


158     VENEZUELA:   A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

tablished  in  1912  and  manufacturing  coconut  oil,  coconut-fiber  prod- 
ucts, and  cottonseed  oil.  This  latter  factory  is  very  modern  in  every 
respect,  and  has  a  daily  capacity  of  3  tons  of  coconut  oil,  6  tons  of 
cottonseed  oil  (refined  product),  and  a  large  production  of  13  grades 
of  coconut  fiber  for  export.  The  buildings  are  all  of  steel-frame,  re- 
inforced concrete,  and  the  equipment  consists  of  a  Crosby  Gas  Pro- 
ducer engine  driving  a  100-kilowatt,  three-phase  generator,  alternat- 
ing current,  240  volts,  at  900  revolutions  per  minute.  A  transformer 
of  2,400  volts  sends  current  to  the  plant  at  240  volts.  The  power 
plant  is  located  in  the  plant  of  the  Telares  Orientales. 

Seventy-two  per  cent  of  refined  oil  is  obtained  from  the  copra. 

The  presses  were  made  by  Robert  Middleton,  of  Leeds,  England — 
8,840  pounds  to  the  square  inch — rim  by  a  60-horsepower  motor. 
Driers  handle  500,000  nuts.  The  coco-butter  canning  plant  was  made 
by  a  company  in  Richmond,  Va.  Cans  are  made  of  J,  i,  1,  2J,  5, 
7,  and  10  kilos  each  for  shipment,  and  1,000  cans  of  the  various  sizes 
can  be  produced  every  working  day  of  10  hours.  The  cottonseed-oil 
mill  makes  a  grade  similar  to  the  "  Summer  Yellow  "  brand,  well 
known  in  the  united  States.  Six  tons  of  cotton  seed  can  be  worked 
daily.  One  himdred  kilos  produce  40  Idlos  of  chaff  and  waste,  45 
kilos  of  oil  cake,  and  15  kilos  of  oil,  the  seed  costing  6.50  bolivars 
($1.25)  per  100  kilos.  The  plant  is  lighted  throughout  by 'electricity. 
This  is  one  of  the  largest  industrial  plants  in  Venezuela. 

The  cotton  factory  uses  locally  produced  cotton,  the  district  being 
the  second  most  important  cotton-producing  center  of  the  country — 
next  to  that  of  Valencia,  in  Carabobo.  In  1918,  280  tons  of  clean  cot- 
ton were  produced,  or  14  per  cent  of  the  total  production  of  the  coun- 
try. The  lowlands  to  the  east  are  very  well  suited  to  cotton,  according 
to  all  reports,  and  the  industry  is  capable  of  greater  expansion  if 
more  labor  becomes  available  and  better  methods  are  employed. 

CUMANA  &  CARUPANO  PIER  &  TRAMWAY  CO. 

The  Cumana  &  Carupano  Pier  &  Tramway  Co.,  with  a  capital  of 
$500,000  and  registered  in  New  Jersey,  owns  and  operates  the  piers, 
and  lighthouses  at  Cumana  and  Carupano,  the  electric-light  plant 
and  tramway  at  Carupano,  and  the  sawmill  in  the  latter  city. 

In  1919  the  company  handled  a  total  of  5,842  metric  tons  (1  metric 
ton=2,205  pounds)  of  coastwise  freight  at  Cumana,  5,831  tons  at 
Carupano,  212  tons  of  imported  freight  at  Cumana,  557  tons  at  Caru- 
pano, 1,102  tons  of  exports  at  Cumana,  4,397  tons  at  Carupano,  and 
40  tons  of  passengers'  baggage  at  Cumana  and  180  tons  at  CarUpano. 
The  lighthouses  at  Cumana  produced  in  revenue  4,650  bolivars  ($897) 
and  at  Carupano  5,329  bolivars  ($1,028),  making  the  total  receipts 
of  the  company  266,694  bolivars  ($51,472)  for  the  year.  The  Caru- 
pano electric  railway  carried  a  total  of  224,929  passengers  during 
1919,  producing  a  gross  return  of  56,232  bolivars  ($10,853)  and  3,844 
tons  of  freight  between  the  city  and  the  pier,  at  4,849  bolivars  ($936). 

Exports  U)  foreign  ports  from  Cumana  included  987  tons  of  coffee, 
86  tons  of  hides,  and  6,000  coconuts ;  imports  included  121  tons  of  gen- 
eral merchandise,  etc.  Carupano  exported  to  foreign  ports  2,984 
tons  of  cacao,  1,204  tons  of  coffee,  36  tons  of  hides,  65  tons  of  com, 
98  tons  of  tobacco,  and  imported  493  tons  of  general  foreign  mer- 
chandise. 


CARACAS  AND  COMMERCIAL.  DISTRICT.  159 

Coasting-trade  receipts  at  Cumana  included  628  tons  of  general 
merchandise,  165  tons  of  cement,  302  tons  of  cotton,  316  tons  of  salt, 
400  tons  of  com,  etc  Coastwise  exports  included  10  tons  of  cacao, 
548  tons  of  coffee,  232  tons  of  merchandise,  441  tons  of  tobacco,  and 
193  tons  of  foodstuffs. 

Coastwise  exports  from  Carupano  included  636  tons  of  cacao,  91 
tons  of  coffee,  1,026  tons  of  merchandise,  and  73  tons  of  com.  Ke- 
ceipts  included  1,780  tons  of  general  merchandise. 

The  above  figures  are  given  to  show  the  large  distribution  of  goods 
of  foreign  importation  from  Cai*acas  to  the  eastern  coast  towns  of  the 
country.   . 

HARBOR  AND  PORT  WORKS  OF  CUMANA. 

The  lighthouse,  harbor,  pier,  and  tramway  concession  for  Caru- 
pano and  Cumana  was  given  by  the  Venezuelan  Government  in  April, 
1906,  to  Miguel  A.  Mendoza,  who,  on  November  9,  1906,  transferred 
his  rights  to  Sr.  Jesus  Ma.  Iturbe,  who,  in  turn,  transferred  his  rights 
to  the  Companfa  Anonima  Muelle  de  Puerto  Sucre  y  Carupano  in 
April,  1907.  In  1910  this  company  transferred  its  rights  to  the 
Cumana  &  Carupano  Pier  &  Tramway  Co.,  registered  in  New  Jersey 
and  capitalized  at  $500,000.  All  transfers  were  with  the  prior  con- 
sent of  the  Government. 

The  obligations  on  the  part  of  the  company  were  as  follows :  To 
construct  at  Puerto  Sucre  (Cumana)  a  pier  of  wood  and  iron,  250 
meters  in  length,  for  facilitating  the  handling  of  ocean  cargo  at  the 
port,  and  to  have  a  covered  shed  at  the  end,  eouipped  with  all  neces- 
sary appliances  for  the  purpose  indicated.  The  Govei^nment  obli- 
gated itself  as  follows :  Not  to  construct  another  pier  or  similar  work 
at  Puerto  Sucre,  or  to  give  another  concession  for  a  like  purpose  to 
any  third  party ;  not  to  tax  the  company  in  any  manner,  except  for 
the  national  stamp  tax,  and  not  to  require  it  to  pay  municipal  or 
State  taxes;  to  cede  necessary  lands,  using  the  right  of  expropria- 
tion, if  necessary ;  to  permit  the  free  importation  of  machinery,  ma- 
terials, and  equipment  for  the  use  of  the  company;  and  to  exempt 
from  all  military  or  police  duty  the  employees  of  the  company. 

The  company  enjoys  the  exclusive  right,  during  40  years  from  the 
date  of  contract,  to  the  exploitation  of  the  pier,  according  to  the 
following  tariff  (1  bolivar =$0,193)  : 

•  Bolivars. 

Merchandise,  baggage,  products  of  the  country.per  100  kilos 1.  50 

Lumber,  minerals,  pottery  products do .  40 

Cattle,  horses,  and  mules per  head 2.  00 

Burros do .  50 

Hogs  and  goats . do .  25 

Passengers : 

First  class per  person 2. 00 

Second  class do 1.  50 

Other  classes . do 1.  00 

Vessels  using  pier — Pier  and  lighthouse  tax per  ton .  10 

Vessels  using  the  pier  for  repairs  pay  according  to  arrangement. 
Packages  weighing  more  than  1,000  kilos  pay  double  rates.  The 
company  may  invoke  the  aid  of  the  Government  in  the  collection  of 
rates,  even  though  the  pier  was  not  used,  if  the  matter  is  within  the 
jurisdiction  of  the  customs  authorities  of  Puerto  Sucre. 


160     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

The  pier  at  Cumana  is  of  wood,  261  meters  long  by  5.40  meters 
wide  (1  meter=3.28  feet),  the  head  terminating  in  a  platform  16.60 
meters  square,  roofed  and  equipped  with  boat  stairs  for  the  use  of 
passengers.  The  piling  is  of  native  wood  throughout,  principally  of 
"guatacare,"  as  this  is  known  to  offer  the  best  resistance  to  the  attacks 
of  the  "toredo."  Piles  are  tied  together  with  diagonal  iron-rod 
bracing. 

The  calm  waters  of  the  bay  permitted  the  driving  of  the  piling 
with  a  floating  pile  driver,  penetration  in  the  sand  being  on  an 
average  of  3.6  meters.  The  total  number  of  piles  is  650,  from  14.7  to 
30  feet  in  length  and  from  7.8  to  10.5  inches  in  diameter.  The 
longitudinal  stringers  are  of  American  pitch  pine,  as  are  also  the 
crosspieces  and  the  decking.  All  spikes  and  bolts  are  of  galvanized 
iron.  The  berth  space  at  the  end  of  the  pier  gives  an  average  of  5.2 
meters  of  water  at  mean  low  tide,  suifficient  for  the  docking  of  coast- 
ing steamers  and  sailing  vessels  using  the  port. 

The  lighthouse,  located  at  the  land  end  of  the  pier,  at  10°  27'  40" 
north  latitude  and  2°  44'  8"  west  longitude,  has  a  base  4  meters  square 
and  is  21.2  meters  high,  the  material  being  steel,  set  in  a  concrete  base. 
The  height  of  the  light  itself  is  24  meters  above  sea  level. 

The  warehouses  cover  440  square  meters  of  floor  space,  being  of 
wood  with  concrete  floor  and  metal  tile  roof. 

Freight-handling  equipment  consists — together  with  the  usual 
complement  of  blocks,  screws,  cables,  etc. — of  three  cars,  with  a 
capacity  of  2.7  metric  tons  each,  running  on  rails  laid  from  the  end 
of  the  pier  to  the  customs  warehouses ;  a  railcrane,  operated  by  hand 
power  and  capable  of  raising  4  tons  at  20- foot  boom  radius;  two 

{)assenger  boats,  with  a  capacity  of  16  persons  each ;  and  four  freight 
ighters,  with  a  capacity  of  3  to  5  tons  each. 

The  harbor,  little  better  than  an  open  roadstead,  and  very  shallow, 
is  protected  from  the  prevailing  northeastern  ocean  swell  by  the  pro- 
jection of  the  Araya  Peninsula  and  the  island  group  of  Margarita, 
Coche,  etc.  The  town  itself  is  located  on  the  banks  of  the  Man- 
zanares  River  about  half  a  mile  from  the  port  and  pier,  communica- 
tion being  over  a  sandy,  low  road,  at  the  side  of  which  runs  a  tram- 
way operated  by  mule  power.  To  the  east  extends  the  shallow  Gulf 
of  Cariaco,  which  ends  at  the  town  of  Cariaco,  soon  to  be  connected 
with  Carupano  by  the  new  wagon  road.  There  is  excellent  tobacco 
and  cotton  land  along  the  shores  of  this  bay,  and  there  are  a  good 
many  settlements  and  small  towns  along  its  southern  shore.  The  dis- 
trict is*  one  of  considerable  promise  for  the  future  if  the  problem  of 
labor  in  the  tropical  climate  can  be  solved. 

.  NAVIGATION— IMPORTS  AND  EXPORTS. 

During  the  year  1919  7  Dutch  steamers,  1  American  steamer,  and  1 
British  steamer  called  at  Puerto  Sucre  with  cargo  from  foreign  ports, 
as  well  as  48  Venezuelan  sailing  vessels  of  small  tonnage.  Vessels 
loading  were:  French,  6  sailing  vessels,  with  a  total  of  300  tons; 
Dutch,  12  steamers,  with  a  total  tonnage  of  18,688 ;  British,  3  steam- 
ers and  2  sailing  vessels,  with  a  total  tonnage  of  6,516 ;  Venezuelan, 
46  sailing  vessels,  with  a  total  tonnage  of  1,107 ;  total,  69  vessels,  with 
a  total  tonnage  of  21,611. 


CARACAS  AND  COMMBBCIAL  DISTBIOT.-  161 

Puerto  Sucre  (Cumana)  imported  during  1919  a  total  of  508,084 
kilos  of  foreign  merchandise  and  materials,  valued  at  283,689  bolivars 
($54,752),  as  follows:  From  the  United  States,  199,530  kilos,  valued 
at  191,918  bolivars  ($37,040);  Trinidad,  236,421  kilos,  valued  at 
75,105  bolivars  ($14,495)  j  Curagao,  64,317  kilos,  valued  at  8,198 
bolivars  ($1,582) ;  Martinique,  7,500  kilos,  valued  at  7,475  bolivars 
($1,443) ;  Netherlands,  316  kilos,  valued  at  994  bolivars  ($192). 

During  the  year  1919  Puerto  Sucre  (Cumana)  shipped  196  tons 
of  fertilizer  to  Barbados.  To  the  United  States  it  exported  58,964 
kilos  of  hides,  valued  at  232,371  bolivars  ($44,848) ;  137,833  bolivars 
($26,602)  worth  of  goatskins;  coffee  valued  at  75,000  bolivars  ($14,- 
475) ;  and  other  small  items,  making  a  total  of  467,957  bolivars 
($90,316).  France  took  959,150  kilos  of  coffee,  valued  at  1,970,897 
bolivars  ($380,383).  Martinique  took  443  tons  of  fertilizer  (bat 
guano)  and  a  few  other  small  items.  Trinidad  took  a  total  of  154 
tons,  valued  at  57,587  bolivars  ($11,114),  consisting  principally  of 
foodstuffs. 

PORT  OF  CARUPANO. 

HARBOR  AND  PORT  WORKS. 

The  harbor  at  Carupano  is  practically  an  open  roadstead,  unpro- 
tected from  the  heavy  swells  from  the  northeast  except  for  a  short 
land  projection  just  to  the  east  of  the  site  of  the  present  pier. 
Unlike  the  condition  at  Cumana,  the  bottom  of  the  bay  at  Carupano 
is  hard  in  places,  making  it  impossible  for  driven  wooden  piling^  to 
attain  sufficient  penetration  to  withstand  the  action  of  the  sea.  The 
present  pier  structure  is  of  steel  screw  piling,  and  its  construction 
under  the  conditions  existing  at  the  port  required  considerable  study 
and  engineering  ingenuity. 

The  original  contract  lOr  the  pier  and  port  works  was  given  in 
January,  1907,  by  the  Venezuelan  Government  to  Sr.  Julio  Bescanza, 
who  transferred  his  rights  to  the  Compania  Muelles  de  Puerto  Sucre 
y  Carupano  in  July,  1907.  In  March,  1911,  transfer  was  made  to 
the  Cumana  &  Carupano  Pier  &  Tramway  Co.,  already  mentioned 
in  connection  with  Cumana. 

The  obligations  on  the  part  of  the  company  holding  this  contract 
were  as  follows :  To  construct  at  Carupano  a  250-meter  pier  of  steel 
(1  meter =3.28  feet),  with  wooden  deck,  equipped  with  covered  shed 
at  sea  end  and  with  all  modem  and  necessary  devices  for  the  service 
of  vessels  handling  cargo  at  the  port,  as  well  as  fresh-water  piping 
sufficient  for  the  needs  of  vessels  calling;  also  to  construct  a  steam 
tramway  (afterwards  changed  to  electric  power)  connecting  the  pier 
with  the  customhouse  and  town  of  Carupano. 

The  tapiff  is  the  same  as  for  the  pier  at  Cumana,  with  the  addition 
that  each  passenger  to  or  from  the  city  to  the  customhouse  pays  0.25 
bolivar  ($0,048)  per  person  and  freight  0.25  bolivar  per  100  kilos  of 
weight  (1  kilo =2.2046  pounds). 

'Die  contract  calls  for  lighting  and  power  service  for  Carupano, 

{>ublic  lighting,  including  20  arc  lights  of  1,200  candlepower  and  60 
ights  of  100  candlepower  during  11  hours  of  the  night.    Payment  by 
the  municipality  is  67  bolivars  ($12.93)  per  day,  guaranteed  by  two 

79747**— 22 ^12 


162     VENEZUELA :  A  COMMERCIAIi  AND  INDUSTRIAL  HANDBOOK. 

» 

municipal  rents  of  revenue.  Private  service  is  at  the  rate  of  5  bolivars 
($0.96)  per  month,  with  a  charge  of  6  bolivars  ($1.16)  for  installing 
each  light,  plus  the  value  of  the  materials  used  in  such  work  on  the 
premises.  The  duration  of  the  electric  lighting  contract  is  50 
years  from  July  5, 1913. 

The  cost  of  the  Carupano  and  Cumana  pier,  tramway,  and  light- 
house works  has  been :  • 

Steel  pier  at  Carupano,  warehouses,  and  equipment $179, 896 

Auxiliary  pier  of  wood,^  lighthouse,  land,  etc 20,000 

Wooden  pier  at  Cumana,  warehouse,  cars,  and  all  equip-  , 

ment 76,404 

Price  paid  for  cession  of  contracts , 1 223, 700 

Additional  cost  to  complete  Carupano  pier 6, 054 

Electric  plant,  lines,  buildings,  etc 74,821 

Electric  street-car  lines,  plant,  buildings,  etc 50, 584 

Sawmill  and  machine  shop 6, 463 

Total L 637, 922 

The  length  of  the  Carupano  steel  screw  pile  pier  is  250  meters 
(1  meter=3.28  feet)  by  a  general  width  of  5.15  meters,  with  two  cargo 
decks  or  platforms,  each  20  meters  in  length  by  15.15  meters  in  width, 
the  first  being  145  meters  from  shore  and  the  other  at  the  sea  end  oi 
the  structure.  Each  cargo  deck  is  covered  by  a  shed  with  steel  frame 
and  iron  roof.  The  entire  structure  of  this  pier  is  divided  into  50 
sections  of  5  meters  each  from  pile  center  to  center  and  4.5  meters 
transversely.  The  weight  strain  is  estimated  at  2,000  kilos — 2  metric 
tons — per  square  meter  of  deck  surface.  Pile  caps  are  of  cast  steel, 
carrying  the  cross  beams,  which,  in  turn,  carry  the  longitudinal 
beams;  these  latter  carry  the  planks  of  the  wooden  deck.  All  steel 
material  was  by  Siemens-Martin,  of  England,  and  is  according  to 
specifications  for  similar  work.  The  steel  piling  runs  from  18  feet 
in  length  by  4J  inches  in  diameter  to  33  feet  in  length  by  6  inches  in 
diameter,  108  being  the  total  number  used.  The  piling  is  secured  by 
diagonal  longitudinal  and  transverse  cross-bracing  of  steel  beams,  5 
by  3  inches.  A  track  3  feet  6  inches  in  >v^idth  between  rails  runs  the 
length  of  the  pier.  There  are  two  steel  hand-power  cranes  of  5-ton 
capacity  each  at  20-foot  boom  radius,  both  oi  rotary-rail  type.  A 
new  10-ton  electric  power  crane  is  also  to  be  installed.  Loading  plat- 
forms are  protected  by  wooden  aprons  at  the  sides.  The  construc- 
tion of  the  pier  was  contracted  for  with  the  Harbour  &  Dock  Supply 
Co.,  of  London,  England. 

The  elevation  above  sea  level  of  the  top  of  the  pier  deck  is  6  feet 
at  high  tide.  The  depth  of  water  at  the  end  of  the  pier  is  between  12 
and  14  feet.  Large  ocean  vessels  can  not  land  at  this  dock,  but  handle 
cargo  by  means  of  lighters. 

The  company  also  owns  a  smaller  dock,  used  for  coastwise  traffic. 
This  is  an  old  wooden  pier  64  meters  long  by  11.50  meters  wide, 
almost  entirely  covered  throughout  its  widest  part  with  a  wooden 
frame  shed  carrying  a  corrugated  iron  roof.  There  is  installed  at  the 
end  of  this  pier  a  fixed  3-ton  hand-power  crane.  Built  by  the  muni- 
cipality of  Carupano,  it  was  sold  to  Sr.  G.  Franco  Golding,  who  in 
turn  sold  it  to  the  Cumana  &  Carupano  Pier  &  Tramway  Co.  It  is 
situated  11  meters  to  the  east  of  the  steel  pier  built  by  the  latter  com- 
pany. 


CAKACAS  AND  COMMERCIAL  DISTBICT.  163 

The  warehouse  is  of  concrete  covered  with  an  iron  roof  and 
measuring  67  by  15  meters,  the  floor  space  being  900  square  meters. 
The  roof  oeams  carry  a  traveling  crane  of  sufficient  lift  for  general 
nierchandise,  etc.  It  is  located  just  to  the  east  of  the  end  of  the  steel 
pier. 

The  Carupano  lighthouse  was  built  and  is  owned  by  the  Cumana 
&  Carupano  Pier  &  Tramway  Co.,  charges  being  0.10  bolivar  ($0,019) 
per  registered  ton,  including  pier  charges.  It  is  located  on  a  prom- 
ontory just  to  the  east  of  the  pier,  ite  base  being  32.4  meters  (1 
meter=:3.28  feet)  above  sea  level.  The  tower  is  of  steel,  in  the  form 
of  a  squared  pyramid,  on  a  base  of  concrete,  the  total  height  being 
32  meters.  The  time  of  the  light  is  10  seconds  of  light  flash  followed 
by  5  seconds  of  darkness.  Lighting  is  by  means  of  electricity,  and 
this  light  can  be  distinguished  from  the  sea  at  a  distance  of  25  miles 
from  the  port  on  a  clear  night. 

For  the  harbor  and  port  charges  at  Cumana  and  Carupano  the 
reader  is  referred  to  the  tariff  of  the  Cumana  &  Carupano  Pier  & 
Tramway  Co.,  on  page  159.  The  port  charges  collected  by  the  Gov- 
ernment are  the  same  as  for  La  Guaira. 

The  electric  light  plant  of  the  company  consists  of  two  120-horse- 
power  Crossley  gas-producer  engines,  one  of  which  drives  a  three- 
phase,  alternating  80-kilowatt  generator  of  2,400  volts  and  60  cycles, 
and  the  other  an  80-kilowatt,  direct-current,  600-volt,  133-ampere 
generator — the  former  being  used  for  the  lighting  plant  and  the  lat- 
ter for  the  electric  street  railway  and  other  power  purposes.  (The 
Crossley  engines  are  made  in  Manchester,  England.)  The  consump- 
tion of  anthracite  coal  for  the  gas  generator  is  380  grams  per  horse- 
power-hour. After  all  the  necessary  current  is  used  for  lighting 
purposes,  there  is  an  excess  to  be  used  for  power  of  70  horsepower  of 
direct  current  and  60  horsepower  of  alternating  current.  Motors  of 
500  volts,  direct  current,  are  used  on  the  car  circuit,  and  there  are 
transformers,  2,400  volts,  60  cycles,  stepped  down  to  220  volts  for 
general  use. 

The  electric  car  line  is  3  feet  6  inches  in  width  between  rails  and 
runs  from  the  end  of  the  pier  to  the  extreme  western  end  of  the  town, 
a  distance  of  2.4  kilometers  (1  kilometer =0.62  mile)  along  the  main 
street.  There  are  570  meters  of  sidetrack.  Cars  are  of  the  open  type, 
with  a  capacity  of  40  passengers  each,  equipped  with  two  motors  of 
GE-60  type  and  27  horsepower  each.  Cars  are  also  used  for  hauling 
flat  cars  with  freight  to  and  from  the  pier  for  cargoes  in  and  out. 

The  sawmill  turns  out  boxes  for  beer,  soap,  etc.,  and  lumber  for 
local  construction  and  repair  work  of  many  kinds.  The  small  ma- 
chine shop  in  connection  with  it  (belonging  to  the  company)  alsf 
does  general  public  repair  work. 

NAVIGATION— IMPORTS  AND   EXPORTS. 

During  the  year  1919  a  total  of  33  foreign  steamers  and  12 
Venezuelan  sailing  vessels  called  at  Carupano  with  foreign  cargo, 
the  ships  under  foreign  flags  being  as  follows :  British,  16  steamers, 
of  480  tons ;  Dutch,  13  steamers,  of  20,090  tons;  French,  4  steamers,  or 
3,044  tons.  During  the  same  year,  13  British  steamers  cleared  from 
Carupano,  with  a  total  tonnage  of  2,841 ;  14  Dutch  steamers,  with  a 
tonnage  of  22,421 ;  and  7  French  steamers,  with  a  tonnage  of  6,156. 


164     VENEZUELA:'  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Seven  Venezuelan  sailing  vessels,  with  a  tonnage  of  224,  cleared  for 
islands  of  the  Caribbean. 

Imports  during  the  year  1919  at  Carupano  were  as  follows :  From 
the  United  States,  332,760  kilos,  valued  at  425,418  bolivars  ($82,106) ; 
Great  Britain,  46,281  kilos,  valued  at  230,089  bolivars  ($44,407) ; 
Triftidad,  280,989  kilos,  valued  at  109,609  bolivars  ($21,155) ;  Nether- 
lands, 10,250  kilos,  valued  at  44,316  bolivars  ($8,553) ;  France,  2,94S 
kilos,  valued  at  31,167  bolivars  ($6,015) ;  Italy,  2,606  kilos,  valued  at 
8,195  bolivars  ($1,582) ;  Spain,  195  kilos,  valued  at  3,923  bolivars 
($757) ;  total,  676,828  kilos,  valued  at  184,021  bolivars  ($35,516). 

Exports  from  Carupano  to  the  United  States  during  1919  were: 
Cacao,  454,466  kilos,  valued  at  977,036  bolivars  ($188,568) ;  hides, 
20,004  kilos,  valued  at  55,607  bolivars  ($10,732) ;  coffee,  11,087  kilos, 
valued  at  23,854  bolivars  ($4,604) ;  sole  leather,  410  kilos,  valued  at 
1,640  bolivars  ($317) ;  and  some  deer  and  goat  hides  in  small  amounts. 
France  took  2,000,163  kilos  of  cacao,  valued  at  3,416,421  bolivars 
($659,369) ;  1,066,883  kilos  of  coffee,  valued  at  1,575,626  bolivar* 
($304,096) ;  and  82,124  kilos  of  leaf  tobacco,  valued  at  103,750  boli- 
vars ($20,024),  besides  some  hides,  pearls,  etc.  Carupano  is  a  regular 
port  of  call  from  Port  of  Spain,  Trinidad,  for  the  vessels  of  the  Com- 
pagnie  Generale  Transatlantique  from  Havre,  France.  The  Nether- 
lands took  314,861  kilos  of  cacao,  valued  at  713,298  bolivars  ($137,- 
667) ;  35,949  kilos  of  coffee,  valued  at  67,313  bolivars  ($12,991) ;  and 
17,300  kilos  of  leaf  tobacco,  valued  at  49,557  bolivars  ($9,565) .  Trini- 
dad took  256,384  kilos  of  cacao,  valued  at  416,967  bohvars  ($80,475) ; 
65  tons  of  corn,  valued  at  305,408  bolivars  ($58,944) ;  and  other  prod- 
ucts in  small  amounts.  Total  exports  from  Carupano  amounted  to 
4,473,586  kilos,  valued  at  7,857,015  bolivars  ($1,516,404). 

RIO  CARIBE— CRISTOBAL  COLON— CANO  COLORADO. 

The  total  exports  of  the  small  port  of  Rio  Caribe  during  1919 
amounted  to  556,028  kilos,  valued  at  637,383  bolivars  ($123,015),  most 
of  the  shipments  being  to  Trinidad. 

Cristobal  Colon,  a  port  of  export  and  import,  sent  42,249  metric 
tons  of  asphalt  to  the  United  States  during  1919.  To  Trinidad  it 
shipped  2,654,861  kilos  of  cacao,  valued  at  3,845,938  bolivars  ($742,- 
266),  and  52,473  kilos  of  coffee,  valued  at  89,472  bolivars  ($17,268),  as 
well  as  a  variety  of  foodstuffs,  including  1,250  tons  of  corn. 

Cano  Colorado,  the  port  for  Maturin,  received  during  1919  a  total 
of  684  tons  of  general  merchandise,  valued  at  1,381,326  bolivars 
($266,596) ,  of  which  the  greater  amount  was  foodstuffs.  Other  small 
coastwise  ports  are  Guina,  260  tons ;  Irapa,  635  tons ;  Yaguaraparo, 
306  tons ;  and  Pedernales,  103  tons. 

STATISTICS  OF  COASTW^ISE  TRAFFIC. 

The  port  of  Carupano  received  during  1919  a  total  of  4,086  metric 
tons  of  coastwise  freight  valued  at  8,077,084  bolivars  ($1,558,877), 
of  which  1,785,586  bolivars  ($344,618)  represented  foreign-made  cot- 
ton goods.  Rio  Caribe  received  a  total  of  2,218  tons,  valued  at  3,056,- 
889  bolivars  ($589,980),  and  Puerto  Sucre  handled  5,132  tons,  valued 
at  9,151,707  bolivars  ($1,766,279) ,  during  the  same  period.    Cariaco  is 


CARACAS  AND  COMMERCIAL.  DISTRICT.  l65 

also  a  small  port  for  coastwise  traffic  and  handles  about  475  tons  of 
imported  merchandise  per  annum. 

During  1919  Cristobal  Colon  received  a  total  of  7,128  tons  of  gen- 
eral merchandise  and  foodstuffs  by  coastwise  traffic,  valued  at  4,297,- 
828  bolivars  ($829,481),  although  of  this  total  2,514,554  bolivars 
($485,309)  r^presents  cacao  received  for  reexport  to  Trinidad,  where 
it  is  sold.  This  production  of  cacao  comes  from  small  points  along 
the  coast  of  the  peninsula  of  Paria  and  is  concentrated  at  Cristobal 
Colon  for  export  and  sale  to  Trinidad. 

^VENEZUELAN  NAVIGATION  CO. 

Capitalized  at  3,000,000  bolivars  ($579,000),  this  Venezuelan  com- 
pany, the  Compaiiia  An6nima  Venezolana  de  Navegacion,  operates 
three  fleets  of  steamers  in  the  Venezuelan  coasting,  lake,  and  river 

trade,  as  follows: 

'  ♦ 

Coasting  fleet. — Steamships  Mazanares,  1,200  tons;  Guarico,  900  tons;  Vene- 
zuela, 950  tons.  These  steamers  serve  aU  coast  ports — Maracaibo,  La  Vela 
(Coro),  Cumarebo,  Tucacas,  Puerto  CabeUo,  La  Guaira,  Higuerote  (Carenero), 
Piritu,  Quanta,  Oumana,  Porlamar  (island  of  Margarita),  Oarupano,  Bio 
Oaribe,  Cristobal  Colon,  Tucuplta,  Barrancas,  San  Felix,  and  Ciudad  Bolivar. 
In  Maracaibo  connection  is  made  with  the  lake  fleet  for  all  points  on  Lake 
Maracaibo  and  the  river  ports  from  which  connections  are  made  for  Cucutu, 
San  Cristobal,  and  Merlda. 

Lake  fleet, — Steamships  -Proi)frc«o,  300  tons:  Nuevo  Mara,  150  tons;  Nuevo 
Fenis,  150  tons;  VUlamizar/l^  tons;  Tacnira,  a  tug  for  lake  use,  40  tons; 
freight  launch  Presidente  Oomez,  25  tons. 

Orinoco  River  fleet. — The  steamship  Delta,  of  309  tons,  runs  weekly  between 
Port  of  Spain,  Trinidad,  and  Ciudad  Bolivar  (250  miles  up  the  Orinoco  River), 
connecting  with  ocean  steamers  at  Port  of  Spain.  The. other  boats  of  the 
river  fleet  are  the  Apure,  of  101  tons,  the  Alianza,  of  147  tons ; ;  the  Arauca  of 
71  tons,  the  Amparo,  of  41  tons,  and  the  Boyaca,  of  31  tons. 

In  connection  with  its  weekly  service  between  New  York  and 
La  Guaira,  the  ^^Red  D"  Line  runs  a  small  steamer  called  the 
Merida^  of  690  tons,  between  La  Guaira,  Puerto  CabeUo,  Curagao, 
and  Maracaibo,  passengers  from  Maracaibo  for  New  York  being 
transferred  at  Curagao. 

Navigation  through  the  entrance  to  the  Lake  of  Maracaibo  is 
limited  to  12-foot  draft,  preventing  the  navigation  to  the  port  of 
Maracaibo  of  large  ocean  vessels.  During  the  last  two  years  of  the 
war.  the  New  Orleans  &  South  American  Steamship  Co.  (W.  R. 
Grace  &  Co.),  of  tfew  Orleans,  operated  a  small  steamer,  the  Amerv- 
can^  between  Maracaibo  and  Curasao  and  La  Guaira,  touching  at 
Puerto  CabeUo,  but  the  vessel  selected  proved  to  be  old  and  unfitted 
for  the  service^  which  was  discontinued.  The  principal  use  of  this 
boat  was  to  bring  out  exports  for  transshipment  at  Curasao  for  the 
United  States. 

The  Compania  Anonima  de  Naveo:aci6n  Fluvial  y  Costaiiera,  now 
known  as  the  Compania  Anonima  Venezolana  de  Nave:^aci6n,  had, 
in  May  1916,  two  ocean-going  steamers  running  coastwise,  two 
small  river  boats  on  the  Orinoco,  and  five  steamers  of  river  type  on 
Lake  Maracaibo.  The  steamship  Guarico^  purchased  a  good  many 
years  ago  by  the  Venezuelan  Navy,  was  repaired  and  remodeled  in 
1920  and  put  in  the  service  of  the  company.  In  May,  1916,  Gen. 
Gomez  consented  to  the  transfer  of  the  company  to  an  American 
organization,  but  he  later  rescinded  this  action  and  negotiations  were 


166    \^NEzrELA:  a  commercial  and  industrial  handbook. 

broken  off.  In  May  of  the  same  year  the  company  was  sued  by  the 
Government  for  noncompliance  with  contract  and  for  the  collection 
of  damages.  It  was  charged  that  the  company  had  failed  to  clean 
out  and  dredge  the  entrance  to  Lake  Maracaibo  and  certain  rivers 
and  that  the  vessels  did  not  provide  service  adequate  to  the  demands 
of  the  country  and  in  accordance  with  the  contract,  which  provided 
for  a  practical  monopoly  of  coastwise,  lake,  and  river  navigation 
service.  The  President  insisted  that  any  transfer  of  this  company 
should  include  an  increase  in  the  foreign  service  to  the  Gulf  ports  of 
the  United  States  and  to  Vera  Crilz,  Mexico,  and,  at  one  time  such 
additional  service  was  planned  by  the  company. 

Shortlv  afterwards,  the  old  company  was  taken  over  and  reor- 
ganized by  Gen.  Gomez  and  members  of  his  immediate  family,  who 
now  hold  the  majority  of  stock  and  are  in  control.  I'he  steamers 
are  old,  second-hand  boats,  in  poor  condition  and  habitually  over- 
loaded and  overcrowded  with  passengers.  Male  passengers  travel- 
ing alone  are  forced  to  give  up  staterooms  to  women  passengers  at 
nearly  every  port  of  call,  and  conditions  of  travel  are  very  bad  on 
the  vessels,  which  are  not  kept  up  or  cleaned.  There  is  little  or  np 
attempt  at  inspection  of  machinery  or  boilers  or  enforcement  of 
regulations  for  safety— -boat  and  fire  drills  being  unknown.  No 
regular  schedules  are  maintained,  althousrh  weekly  sailings  can  be 
counted  on,  except  for  points^  above  Ciudad  Bolivar  on  the  Orinoco 
Eiver,  where  navigation  is  carried  on  oAly  during  the  rainy  season, 
from  June  until  November,  with  any  degree  of  regularity.  The  two 
small  steamers  mentioned  go  up  the  Orinoco  as  far  as  its  junction 
with  the  Apure  Eiver  and  ascend  the  Apure  as  far  as  San  Fernando 
de  Apure.  They  also  ascend  the  Orinoco  as  far  as  the  Arauca  River 
at  Alacala,  ascending  the  Arauca  for  a  short  distance  to  the  rubber 
camps.  In  good  seasons  these  small  river  steamers  go  up  the  Apure 
as  far  as  the  town  of  Guasdualito,  in  the  extreme  western  corner  of 
the  State  of  Apure,  near  the  Colombian  border.  The  Portuguesa 
River  is  also  navigated,  from  San  Fernando  de  Apure,  as  far  up 
as  the  tow^n  of  Guaderrama.  The  Arauca  is  navigable  as  far  up 
as  the  town  of  El  Amparo,  opposite  Guasdualito  on  the  Upper 
Apure,  but  only  in  the  season  of  high  water  and  always  with  diflS- 
cuity.     (For  details  of  Orinoco  River  navigation,  see  p.  289.) 

COMMERCIAL  POSITION  OF  CARAGAS. 

From  the  foregoing  it  is  seen  how  Caracas,  situated  about  halfwajr 
along  the  Caribbean  coast  of  Venezuela,  is  in  easy  coastwise  communi- 
cation with  nearly  all  of  the  trading  centers  of  the  country,  and  how 
large  merchants  can  compete  for  the  trade  of  the  interior,  with  the 
exception  of  the  trading  center  of  Ciudad  Bolivar,  which  is  the  head- 
quarters for  the  Orinoco  Valley  commerce  in  rubber,  balata,  chicle, 
sabadilla,  gold,  etc.,  and  which  is  more  allied  with  Trinidad  than 
with  the  rest  of  Venezuela  so  far  as  commercial  interchange  is 
concerned. 

Importing  manufacturers'  agents  established  in  Caracas  cover  the 
country  with  traveling  salesmen,  reaching  even  the  most  interior 
points  of  the  Andes.    Many  of  the  larger  firms  specializing  in  dry 

foods  and  hardware  maintain  branch  offices  in  Maracaibo,  Trujillo, 
ferida,  etc.,  and  the  larger  firms  of  Cumana,  Barcelona,  and  Caru- 


CARACAS  AND  COMMEBCIAI.  DISTRICT.  167 

pano  have  found  it  more  convenient  to  locate  their  principal  ware- 
houses, stores,  and  offices  in  Caracas,  the  capital  and  Dankmg  center 
of  the  country. 

In  Caracas  there  are  170  importers  of  foreign  merchandise  of  all 
kinds.  About  50  of  these  houses  are  large,  having  a  capital  of  $200,000 
or  over  and  do  a  large  wholesale  business  with  the  interior,  handling 
also  coffee,  cacao,  hides,  and  minor  products  of  export. 

Large  crops  of  coffee  and  cacao  during  1916  and  1917,  entering 
into  the  traae  balance  for  1919  and  sold  at  high  prices  during  and 
immediately  following  the  war,  greatly  stimulated  business  all  over 
the  country,  and  more  especially  in  Caracas.  Great  progress  was 
made  in  banking.  Native  banks  increased  their  capitalization,  and 
two  American  banks  were  established  in  the  country  as  branches  of 
New  York  institutions.  In  1917  imports  from  the  United  States 
amounted  to  70  per  cent  of  the  total. 

Nearly  all  business  with  the  interior  and  small  towns  is  done  on  a 
long-credit  basis  by  the  Caracas  merchants  and  importers.  The 
usual  terms  are  six  months  with  interest  at  10  per  cent,  settlements 
being  at  the  time  of  the  movement  of  the  harvests,  according  to  the 
region  of  destination  of  the  ^oods.  The  coffee  harvest  normally  is 
in  December,  the  movement  being  in  that  month  and  during  January, 
when  all  old  bills  are  paid  and  new  stocks  laid  in  for  the  coming 
commercial  vear.  The  neaviest  buying  is  in  March,  and  the  largest 
volume  of  delivery  of  goods  at  port  of  entry  begins  in  May  and 
lasts  through  June.  Buyers  from  the  interior  come  into  Caracas  all 
through  the  summer  and  fall  months,  securing  their  stocks  in  antici- 
pation of  the  fall  coffee-picking  season.  Following  the  high  prices 
secured  for  coffee  and  cacao  during  1919,  buying  in  the  United  States 
and  England  was  very  heavy  during  the  latter  months  of  1919  and 
the  first  months  of  the  spring  of  1920.  Enormous  stocks  of  cotton 
goods  and  textiles  were  purchased  at  the  then  prevailing  high  prices 
in  anticipation  of  another  good  year  in  coffee  for  1920.  Coffee  con- 
stitutes two-thirds  of  the  exports  of  the  country  and  is  always  the 
barometer  of  business  conditions  for  Venezuela  in  general. 

Stocks  of  textiles  on  hand  in  stores  and  warehouses  of  Caracas  at 
the  time  of  the  writer's  investigation  (November,  1920)  were  esti- 
mated at  60,000,000  bolivars  ($11,580,000  at  par),  the  measurement 
volume  being  double  that  of  any  normal  year  before  the  war.  As 
about  60  per  cent  of  the  imports  into  the  country  consist  of  the 
cheaper  grades  of  cotton  textiles,  and  as  the  stock  indicated  above 
may  be  said  to  be  sufficient  for  the  normal  needs  of  the  people  of  the 
country  for  a  period  of  about  two  years,  the  importance  of  this  con- 
dition can  be  imagined. 

METHODS  OF  TRADE,  CREDIT  TERMS,  AND  PROGRESSIVE 

TENDENCIES. 

Heretofore  American  manufacturers  have  not,  as  a  rule,  extended 
credit  directly  to  Venezuelan  importers  on  account  of  their  small 
acquaintance  with  the  individual  Venezuelan  firms  and  importing 
houses  and  also  because  of  the  lack  of  adeouate  protection  under  the 
eidsting  system  of  customs  procedure.  "To  order"  shipments  can 
not  be  made  to  Venezuela  because  the  possession  of  the  bill  of  lading 
is  no  guaranty  of  payment  for  merchandise,  the  existing  laws  allow- 


168     VENEZUELA :  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 

ing  delivery  to  be  obtained  by  the  holder  of  the  consular  invoice,  or 
of  a  copy  of  such  invoice,  which  may  be  procured  from  the  customs 
authorities  at  the  port  of  entry  upon  a  small  payment  by  the  person 
whose  name  appears  on  the  original. 

In  order  to  obviate  this  difficulty  and  to  furnish  protection  to 
American  exporters,  the  American  Mercantile  Bank  of  Caracas 
(Banco  Mercantil  Americano  de  Caracas)  has  established  a  branch 
at  La  Guaira,  which  receives  consignments,^  charges  the  importer 
the  current  commission  of  1  per  cent  for  clearing  the  goods  through 
the  customhouse  and  reshipping  them  to  Caracas,  and  delivers  the 
merchandise  to  the  importer  only  against  payment  or  acceptance  of 
the  draft  or  as  otherwise  specially  instructed. 

The  bulk  of  the  business  has  been  done  through  export  commission 
houses  well  acquainted  with  the  market  and  individual  firms,  al- 
though during  the  past  few  years  there  has  been  an  increasing  move- 
ment toward  a  more  direct  representation  by  American  manufac- 
turers, either  through  resident  agents  or  salesmen  visiting  the  country. 

Export  commission  houses  in  the  United  States  allow  usually  from 
60  to  90  days'  sight  or  date  on  amounts  of  invoices  in  the  Caracas 
district,  and  in  exceptional  cases  even  120  and  180  days.  European 
houses,  longer  acquainted  with  the  market,  allow  as  high  as  six 
months  on  "open  account,"  but  appear  to  have  no  fixed  rule,  the 
extension  of  time  varying  with  the  standing  of  the  customer,  the 
nature  of  the  goods  sold,  etc.  The  consensus  of  opinion  in  the 
Caracas  market  among  the  larger  Venezuelan  importing  houses  and 
wholesalers  to  the  interior  seems  to  indicate  the  great  importance 
of  long  credit  terms,  it  being  said  that  time  on  bills  is  a  more  im- 
portant factor  than  rate  of  interest  or  even  price. 

The  great  advantages  of  American  trade  with  the  Caracas  dis- 
trict— and,  in  fact,  all  of  Venezuela — lie  in  the  proximity  of  the 
two  countries  and  the  more  rapid  delivery  of  goods.  An  order  can 
be  delivered  in  Caracas  six  weeks  after  date,  while  it  would  take 
about  five  months  to  obtain  the  goods  from  any  of  the  larger  ports 
of  Europe  under  present  conditions.  By  purchasing  from  the  United 
States,  merchants  can  carry  smaller  and  more  varied  stocks,  of  later 
design,  and  the  element  of  time  does  not  have  the  importance  for- 
merly attached  to  it  in  connection  with  European  shipments.  Also, 
on  account  of  the  shorter  distance,  freight  rates  are  lower.  The 
primary  consideration  is,  of  course,  adequate  ocean  transportation 
facilities,  which  must  be  increased  and  improved,  with  better  service. 

Importers  are  progressive ;  most  of  them  have  traveled  in  Europe 
and  the  United  otates,  and  they  know  their  own  market  extremely 
well,  being  quick  to  stock  new  goods  and  articles  which  they  think 
will  appeal  to  the  public.  Local  competition  is  keen  and  merchandis- 
ing somewhat  overdone  as  a  rule.  Advantage  is  taken  of  the  ad- 
vertising mediums  offered  by  the  two  large  daily  papers  of  Caracas, 
which  have  a  wide  circulation  in  the  surrounding  country  towns  and 
villages  as  well  as  in  the  capital. 

For  years  past  Venezuelan  importers  have  been  accustomed  to  a 
careful  and  mtelligent  commercial  service  from  Europe.  Instruc- 
tions covering  consular  declarations,  packing,  etc.,  have  been  care- 

>  liDiTOB's  Note. — As  this  handbook  is  going  to  press,  information  is  received  that  this 
service  has  been  discontinued  by  the  bank  mentioned,  but  is  carried  on  by  a  responsible 
La  Quaira  firm. 


CAKACAS  AND  COMMERCIAL  DISTRICT.  169 

fully  carried  out  to  the  letter,  while  packing  lists  have  agreed  with 
serial  numbering  of  packages  and  the  corresponding  sample  list  and 
invoice.  The  chief  cause  ox  complaint  against  American  exporters  is 
the  lack  of  attention  to  these  important  details  of  exporting.  An- 
other cause  of  complaint  is  the  careless  handling  of  shipments  by  the 
steamship  companies,  a  large  amount  of  damage  being  done  to  well- 
packed  goods  by  smashing  in  loading  and  discharging.  Steamship 
companies  are  limited  in  their  liability  for  damage  to  $100  per  pack- 
age as  the  maximum  amount  of  claim  allowed,  and  very  often  delay 
or  failure  to  collect  is  encountered  in  the  case  of  insurance  claims. 
Importers  argue  that  insurance  should  include  the  value  of  the 
^oods  according  to  the  invoice  and  also  the  import  duty — ^the  two 
hgures  representing  the  true  value  of  the  goods  at  the  port  of  entry — 
especially  since  the  import  duty  on  the  goods  has  to  be  paid  if  the 
goods  appear  on  the  consular  invoice,  whether  or  not  they  are  actu- 
ally delivered  by  the  steamship  company.  A  shipment  lost  in  transit 
or  "short-shipped"  by  the  ocean  carrier  pays  duty  just  the  same  on 
the  arrival  of  the  steamer.  Steamship  companies  want  only  to  pay 
for  lost  or  damaged  shipments  at  the  New  i  ork  price  (value)  and 
not  the  delivered  value  which  includes  duty.  Ocean  carriers  should 
be  forced  to  pay  for  claims  according  to  the  packing  and  condition  of 
goods  upon  receipt  from  the  land  carriers  (railways). 

The  best  method  to  be  followed  by  the  exporter  to  Venezuela  is  to 
take  care  of  the  marine  insurance  rrom  his  own  office  and  see  to  it 
that  full  protection  is  given  each  shipment  to  destination,  including 
reimbursement  for  loss  by  pilferage  at  any  time  up  to  arrival  at  port 
of  entry.  As  an  example  of  this  necessity,  a  re?ent  shipment  of  high- 
priced  drugs  may  be  cited.  This  shipment  was  sent  to  La  Guaira  by 
"  express  freight " — that  is,  it  was  given  into  the  personal  care  of  the 
purser  on  the  vessel.  It  did  not  arrive  at  port  of  destination  (entry), 
arid  the  purchaser  had  to  pay  the  heavy  import  duty  to  the  Customs, 
since  the  shipment  appeared  on  the  consular  invoice  as  is  usual.  The 
purchaser  was  unable  to  collect  more  than  $100  from  the  steamship 
company  for  a  package  valued  at  several  thousands  of  dollars. 

The  necessity  for  long-credit  terms  by  the  United  States  in  Vene- 
zuela has  been  eliminated  to  a  very  great  extent  by  rapid  steamer 
service  from  American  ports,  resulting  in  short-delivery  periods, 
combined  with  American  branch  banking  service  established  in  the 
country,  the  direct  result  of  which  has  been  a  better  knowledge  of 
credits,  discount  service,  and  lower  rates  of  interest  with  larger 
credit  facilities,  including  also  advances  on  export  shipments.  How- 
ever, credit  terms  may  be  used  later  as  a  method  of  competition ;  and, 
as  has  been  said,  long-time  credit  is  a  powerful  factor  in  competition 
where  the  small  dealer  of  the  interior  is  concerned. 

American  specialties  are  well  known  and  liked  throughout  Vene- 
zuela. The  low  and  medium  priced  automobile  of  American  manu- 
facture is  already  firmly  estaolished  as  an  economic  factor  of  the 
country  and  will  become  even  more  popular  as  the  system  of  high- 
ways develops  during  the  next  10  years.  However,  the  average  mer- 
chant of  the  capital  is  a  shrewd  observer  of  international  market  con- 
ditions, which  are  carefully  watched  and  followed,  as  is  also  the  ex- 
change market,  of  which  full  advantage  is  taken ;  and,  in  many  cases, 
European  goods  are  really  more  suitable  to  the  country  than  the  com- 
peting American  article  of  the  same  class  and  price.    One  may  take, 


170     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

for  example,  the  item  of  women's  silk  and  cotton-mixture  hosiery;  the 
American  article  in  this  line,  while  leaving  nothing  to  be  desired  in 
the  way  of  style,  finish,  price,  or  quality,  really  does  not  fit  the  Vene- 
zuelan feminine  foot,  which  is  very  small  and  short-toed  and  has  a 
high  instep  arch.  Buyers  complain  that  they  can  not  wear  American 
stockings,  as  these  are  too  long  in  the  foot  and  sufficiently  small  sizes 
are  not  furnished.  The  same  applies  to  footwear.  The  result  is 
that  feminine  Caracas  asks  for  French  fancy  hosiery,  in  which  they 
know  from  experience  they  can  be  easily  fitted.  This  same  example 
would  also  apply  to  a  great  many  lines  throughout  South  and  Cen- 
tral America  and  Mexico — success  being  dependent  on  study  and  ob- 
servation on  the  part  of  the  American  manufacturer. 

In  summing  up  the  relative  advantages  of  exporting  nations  in 
trade  with  Venezuela  it  may  be  said  that  the  United  States  has  the 
advantage  of  closer  proximity  and  a  more  varied  production  (with 
the  exception  of  cheap  cotton  textiles)  and  of  being  the  principal 
market  for  Venezuela's  exports  of  coffee,  cacao,  hides,  etc.,  while 
Europe  has  the  advantage  of  longer  establishment  in  the  country  of 
resident  agents  and  firms,  longer  acquaintance  with  the  market  and 
individual  merchants  and  houses,  a  lower  exchange  (at  present), 
and  a  larger  supply  of  trained  and  experienced  export  men  to  handle 
the  trade. 

The  excellent  work  done  during  the  last  few  years  by  direct  rep- 
resentatives of  American  firms  interested  in  enlarging  their  business 
with  Venezuela  has  been  more  or  less  counteracted  by  the  existing 
condition  of  the  country.  Orders  are  usually  for  a  varied  assort- 
ment of  general  merchandise.  There  is  little  specialization,  and  the 
trade  in  any  one  line  is  small,  with  the  exception  of  cheap  cotton 
textiles,  which  form  the  bulk  of  the  business  in  merchandising  and 
control  the  market. 

American  firms  interested  in  expansion  of  their  business  with 
Venezuela  will  do  well  to  watch  carefully  the  coffee  market  and  crop 
reports  from  the  country,  as  coffee  is  the  trade  barometer  and  fur- 
nishes a  sure  indication  of  business  conditions  for  the  season. 

INDUSTRIES  OF  CARACAS  AND  VICINITY. 

PRODUCE  FOR  CARACAS  MARKET. 

Beef  cattle  for  the  Caracas  market  are  brought  in  on  the  hoof  over 
the  highway  from  Maracay  and  are  held  for  slaughter.  Sufficient 
dairy  cows  are  held  in  the  neighborhood  to  supply  the  needs  of  the 
city,  milk  being  usually  delivered  from  door  to  door  by  means  of  a 
pack  animal  carrying  two  milk  cans,  one  on  each  side.  All  milk 
taken  is  boiled  by  the  householder.  Sufficient  hogs  are  raised  in  the 
surrounding  country  to  supply  the  district  with  lard.  The  entire 
Caracas  Valley  is  intensively  cultivated,  as  has  been  said,  and  all 
sorts  of  fresh  vegetables  are  raised  for  the  Caracas  market  in  suffi- 
cient quantity  to  supply  the  demand.  The  same  may  be  said  of 
fruits,  such  as  bananas,  oranges,  "aguacates"  (alligator  pears),  and 
the  like.  Plantains  and  bananas  constitute  one  of  the  principal 
articles  of  diet  for  the  poorer  classes  and  are,  in  fact,  found  on  all 
tables.  Good  oranges  command  a  higher  price  than  in  California. 
In  general,  prices  for  local  produce  run  about  on  a  par  with  those  in 


CARACAS  AND  COMMEECIAL.  DISTRICT.  171 

the  United  States.  Considerable  land  in  the  valley,  as  far  as  Petare, 
is  devoted  to  fodder  for  the  draft  aiiimals  of  the  city,  com  (planted 
thickly)  being  grown  principally  for  this  purpose. 

SUGAR  INDUSTRY. 

The  industry  of  Caracas  and  vicinity  that  is  next  in  importance  to 
the  manufacturing  enterprises  is  the  cultivation  of  sugar  cane,  which 
is  the  principal  agricultural  product.  There  are  22  sugar  planta- 
tions in  the  Caracas  district,  as  follows :  Caracas,  5 ;  Guatire,  5 ; 
Petare,  6;  Ocumare  del  Tuy,  2;  Guarenas,  4 — all  of  considerable, 
extent  and  importance — as  well  as  a  number  of  smaller  sugar  farm?. 
The  total  production  capacity  of  the  22  estates  mentioned  is  1,210 
tons  per  week  when  grinding.  Five  estates  make  refined  sugar  with 
modem  machinery,  the  combined  capacity  being  450  tons  per  week 
during  the  grinding  season.  The  largest  f  actorv  is  located  at  Petare 
and  is  called  the  "  Central  Caracas.'^  The  ot&er  plantations  make 
the  "  papelon  "  of  the  country,  a  brown  sugar  put  up  in  long  cones 
and  universally  used  by  the  people  as  a  principal  article  of  food. 

During  the  year  1919  the  port  of  La  Guaira  exported  sugar  as  fol- 
lows: Great  Britain,  983,789  kilos  (1  kilo  =  2.2046  pounds)  of 
"papelon,"  valued  at  425,664  bolivars  ($82,153);  France,  486,153 
kilos  of  sugar,  valued  at  466,975  bolivars  ($90,126) ;  Spain,  76,701 
kilos,  valued  at  74,315  bolivars  ($14,343) ;  Curagao,  46,084  kilos, 
valued  at  15,500  bolivars  ($2,991) ;  Canary  Islands,  5,100  kilos,  valued 
at  4,590  bolivars  ($886) ;  together  with  trifling  amounts  of  sugar  or 
of  "  papelon  "  to  other  countries — the  total  of  nearly  1,600,000  kilos, 
valued  at  more  than  $190,000,  representing  the  surplus  production  of 
sugar  in  the  Caracas  district.  No  sugar  was  shipped  to  the  XJnited 
States  from  La  Guaira,  but  during  1919  this  country  took  5,261,744 
kilos  of  sugar,  valued  at  2,108,142  bolivars  ($406,871),  ftom  Mara- 
caibo  and  3,000,000  kilos,  valued  at  1,304,541  bolivars  ($251,776), 
from  Puerto  Cabello  (produced  in  the  Valencia  district). 

Prices  during  November,  1920,  in  the  Caracas  market  averaged 
220  bolivars,  for  the  first  grade  and  200  bolivars  for  the  second  grade 
of  refined  sugar  ($42.46  per  100  kilos,  or  $0,193  per  pound,  at  whole- 
sale, for  first-grade  sugar).  "  Papelon  "  sold  at  wholesale  at  85  boli- 
vars per  100  kilos  for  the  best  grade  ($0,074  per  pound). 

DAIRYING. 

Another  extensive  industry,  but  one  which  does  not  figure  in  export 
returns,  is  that  of  hand  cheese  making.  Numerous  flocks  of  goats  are 
raised  on  the  semiarid  slopes  of  the  Coast  Range  about  Caracas,  and 
a  small,  hard  cheese  is  made  for  the  local  market  and  universally 
consumed. 

The  "  Lactuario,"  owned  by  Gen.  Gomez  and  located  at  Maracay, 
is  a  modern  creamery,  equipped  with  the  latest  machinery  for  cheese 

2  The  Petare  Sugar  Co.,  "  C«itral  Venezuela."  located  at  the  town  of  Petare,  in  the 
Caracas  Valley,  is  Incorporated  in  the  State  of  Delaware  with  a  capital  of  $90,000  (which 
represents  only  the  value  of  the  plant  and  equipment,  having  a  capacity  of  150  tons)  and 
undertakes  the  grinding  of  the  cane  from  the  neighboring  plantations.  The  output  in 
1916  amounted  to  20,000  hundredweight.  The  company  gives  the  planters  6  pounds  of 
sugar  for  each  100  pounds  of  cane.  The  crop  is  gathered  every  20  months  and  has  a 
high  sugar  content,  the  Juice  going  as  high  as  jS**  Baum^. 

Production  of  cane  in  this  wide  section  of  the  Caracas  Valley  can  not  increase,  becau89 
every  available  acre  of  land  is  already  under  cultivation. 


172     VENEZUELA:   A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

and  butter  making  and  also  for  packing  butter  in  tins  for  shipment 
into  the  interior  of  the  country  and  for  export.  The  main  supply  of 
butter  for  Caracas  comes  from  this  factory,  though  considerable 
tinned  Danish  butter  is  still  imported.  The  poorer  classes  do  not 
use  butter  in  any  form.  The  plant  was  established  in  1915.  It  is  also 
equipped  to  turn  out  condensed  milk  and  cream.  The  butter  pro- 
duction is  about  1,000  pounds  per  day.  For  the  Caracas  market  this 
butter  is  packed  in  ^-pound  paper  packages  and  sells  at  about  80 
cents  per  pound.  This  plant  is  the  largest  modern  dairy  in  Venezuela 
and  enjoys  a  tacit  monopoly  of  the  business  for  the  country,  with 
the  exception  of  the  far-away  Maracaibo  region.  "  Maracay  cheese 
sells  at  wholesale  in  the  Caracas  market  tor  290  bolivars  per  100 
kilos — equivalent  to  $0,254  per  pound. 

HISCELLANEOUS   MANUFACTUKES— BASES   OF   VENEZUELAN    INDUSTRY. 

Other  important  items  of  manufacture  in  Venezuela  and  the 
Caracas  district,  all  of  which  affect  imports,  are  paper,  cement,  tex- 
tiles, knit  goods,  leather,  boots  and  shoes,  glassware,  furniture,  starch, 
cottonseed  oils,  candies,  biscuits,  macaroni  products,  soap,  beer,  rum, 
patent  medicines,  perfumery,  chocolate,  matches,  cigarettes  and 
cigars,  etc. 

Most  of  the  manufacturing  industries  of  Venezuela  are  based  not 
upon  natural  resources  but  solely  upon  the  tariff  protection;  and 
practically  all  of  them  have  to  import  raw  materials  (in  part  at 
least),  with  the  exception  of  the  cotton  mills,  which  now  have  suffi- 
cient cotton  from  the  domestic  production  of  the  country,  principally 
from  the  Valencia  district.  The  limitations  placed  upon  exports  by 
the  belligerent  nations  during  the  war  and  the  resulting  high  prices 
for  alPlines  of  manufactured  articles  caused  the  margin  of  profit  of 
Venezuelan  factories  to  be  very  highj  in  spite  of  the  cost  of  certain  raw 
materials  and  the  difficulty  in  securing  them.  Capital  was  increased 
in  many  cases,  and  plans  for  expansion  were  carried  forward. 

NATIONAL  CEMENT  FACTORY. 

The  Fabrica  Nacional  de  Cemento,  established  in  1907  with  a  capital 
of  2,000,000  bolivars  ($386,000),  shares  of  which  are  now  quoted  (No- 
vember, 1920)  at  46  bolivars  ($8.88),  is  located  at  La  Vega,  a  suburb 
of  Caracas.  In  1911  this  mill  produced  10,000  barrels ;  in  1912,  15,000 
barrels ;  in  1913,  25,000  barrels ;  in  1914,  37,500  barrels ;  and  in  1915 
and  1916,  62,500  barrels  for  each  year.  In  1917  the  company  pro- 
duced 100,000  barrels,  three-fourths  of  which  were  taken  by  the 
Government.^ 

In  1920  the  capacity  of  this  factory  was  increased  from  150  bar- 
rels per  day  to  more  than  300  barrels.  Builders  complain  that  toa 
much  gypsum  is  being  used  in  this  product  to  make  it  set  more 
slowly,  and  that  the  product  is  uneven.  In  November,  1920,  a  ship- 
ment of  7,000  barrels  of  Swedish  cement  arrived  at  La  Guaira  by 
the  steamship  Torbjorn  from  Malmo,  Sweden.  The  brand  is  known 
on  the  Caracas  market  as  superior  to  the  domestic  product,  and  the 
price  is  lower  than  that  of  American  cement.    The  greater  part  of 

I 

*  For  statistics  covering  imports  of  cement  into  Venezuela,  see  Special  Agents  Series- 
No.  144,  "  Markets  for  Construction  Materials  and  Machinery  in  Venezuela/^  by  W.  W.- 
Ewing,  pp.  31  and  32. 


CARACAS  AND  COMMERCIAL.  DISTRICT.  178 

the  shipment  was  taken  by  the  Government  for  public  works,  al- 
though a  lot  of  2,000  barrels  was  offered  at  wholesale  by  one  large 
importer. 

ROPE  AND  SACK  FACTORY. 

The  Fabrica  de  Fibras  y  Cordeles,  of  Caracas,  makes  rope  for  all 
pui'poses  of  the  country,  having  been,  established  in  1912  with  a 
capital  of  400,000  bolivars  ($77,200).  The  plant  also  includes  a  sack- 
making  department  that  turns  out  sisal-fiber  sacks  for  coffee,  cacao, 
etc.,  for  export.  During  the  first  half  of  1920  this  company  shipped 
a  total  of  236,821  kilos  of  sacks,  valued  at  327,564  bolivars  ($63,220) , 
to  ports  along  the  coast  for  packing  coffee  and  cacao  for  export,  in 
addition  to  its  local  and  interior  business.  Native  fiber,  called  "  fique," 
similar  to  Mexican  henequen,  is  used  in  making  sacks  and  rope.  A 
small  amount  of  cotton  twine  and  fish  cord  is  also  made.  The  stock 
was  quoted  at  105  per  cent  in  November,  1920. 

GLASS  FACTORY. 

The  Manufacturera  de  Vidrios  y  Cristales  was  established  in 
Caracas  in  July,  1912,  with  a  capitatof  2,500,000  bolivars  ($482,500), 
the  stock  being  quoted  in  November,  1920,  at  par,  with  no  selling 
offers.  The  company  makes  about  12,000  bottles  per  month,  and 
ground  has  been  taken  in  Maiquetia,  a  suburb  of  La  Guaira,  for  an 
additional  factory  for  bottles,  it  being  planned  to  supply  the  entire 
bottle  demand  of  the  country,  estimated  at  40,000  to  45,000  per  month. 
Cheap  grades  of  table  glassware  are  also  made,  as  well  as  several 
lines  of  ornamental  glassware  which  compete  with  the  imported 
article.  The  president  of  this  company  is  an  American,  well  known 
and  acquainted  in  the  United  States. 

NATIONAL  MATCH  FACTORY. 

The  manufacture  of  matches  is  a  Government  monopoly,  the  fac- 
tory being  an  English  company,  the  National  Match  Factory  of 
Venezuela  (Ltd.),  capitalized  at  £219,967  ($1,070,469  at  par)  and 
paying  dividends  of  6  to  7  per  cent  per  annum.  The  Government 
places  a  stamp  on  every  box  of  matches  sold,  from  which  an  annual 
revenue  of  approximately  400,000  bolivars  ($77,200)  is  realized. 
During  and  following  the  war  most  of  the  phosphorus,  boxes,  and 
labels  have  been  imported  from  the  United  States.  Two  kinds  of 
matches  are  made,  the  so-called  "  wax "  match  and  a  wooden 
safety  match,  the  former  being  the  most  used. 

CHOCOLATE  AND  CANDT  FACTORIES. 

There  are  a  number  of  chocolate  and  candy  factories  using  the 
native  cacao.  The  largest  of  these  is  the  Sucesora  de  La  India,  de 
FuUie  y  Cia.,  established  in  1861  with  a  capital  of  500,000  bolivars 
($96,500),  and  turning  out  many  varieties  of  chocolate  of  a  very 
excellent  grade  and  appearance,  competing  with  manufactured  choc- 
olates imported  from  abroad.  Many  kinds  of  candies  are  also  made, 
as  well  as  carbonated  waters,  ice  cream,  etc.  A  large  ice-cream 
parlor  and  bar  is  operated  in  connection  with  the  business,  which  also 
takes  in  catering,  pastry  making,  and  other  similar  lines. 


174     VENEZUELA.:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 
BREWERIES— TIUNG,  MOSAIC,  AND  CEMENT-PIPE  FACTORY. 

There  are  two  large  breweries  in  the  Caracas  district — the  Cerve- 
ceria  Nacional,  established  in  1893,  capitalized  at  1,410,000  bolivars 
($272,130),  and  located  in  Caracas  (stock  quoted  in  November,  1920, 
at  125  per  cent,  or  25  per  cent  above  par  value),  and  the  Cerveceria 
Venezolana  de  Maiquetia,  established  in  1912  and  capitalized  at 
1,500,000  bolivars  ($289,500). 

A  small  cement  tiling,  mosaic,  and  cement-pipe  factory  is  also 
located  in  Caracas,  with  a  capital  of  285,000  bolivars. 

CIGARETTE  FACTORIES. 

The  cigarette  factories  are  large,  modern  concerns  and  do  a  large 
business.  All  paper  for  cigarette  making  is  furnished  by  the  Gov- 
ernment and  bears  the  Government  revenue  stamp,  the  total  revenue 
received  from  this  source  by  the  Government  being  6,430,000  bolivars 
($1,240,990)  in  1918,  with  an  additional  return  of  56,586  bolivars 
($10,921)  on  imported  cigarettes  for  the  same  year. 

The  total  production  of  tobacco,  in  Venezuela  may  be  said  to  be 
about  4,000  tons  per  year,  of  which  the  Caracas  cigarette  factories 
take  1,200,000  kilos,  or  30  per  cent  of  the  production.  Domestic 
manufacture  of  cigars  takes  another  1,000,000  kilos  per  annum,  which, 
with  the  amount  used  for  cigarettes,  represents  about  half  of  the 
country's  tobacco  production,  the  remainder  being  exported,  princi- 
pally to  France.  During  the  last  half  of  1918  Venezuela  exported  a 
total  of  2,500,00  kilos  of  tobacco. 

The  present  ^ctual  monthly  production  of  cigarettes  in  the  Ca- 
racas factories  is  4,000  boxes  of  100  dozen  packs  each — packs  con- 
taining from  10  to  14  cigarettes  each.  The  total  amount  of  capital 
invested  in  tobacco  cultivation  in  Venezuela  is  estimated  at  about 
10,000,000  bolivars,  or  approximately  $2,000,000.  Quotations  for  the 
best  three  grades  of  leaf  during  the  summer  of  1920  were  185.  120, 
and  70  bolivars  ($36,  $23,  and  $14)  per  100  pounds.  The  district  of 
Maturin,  included  in  the  Caracas  commercial  district,  produces  a 
total  of  1,500  tons  of  tobacco  per  annum.  More  than  one-half  of  the 
tobacco  production  of  the  country  comes  from  this  section  and  around 
the  Gulf  of  Cariaco  east  of  Cumana.  (For  details  of  the  tobacco  in- 
dustry see  pp.  58  to  64.) 

*  The  largest  factories  in  the  Caracas  district  are  "  La  Industrial 
Cigarrera,"  with  a  capital  of  1,000,000  bolivars  ($193,000),  estab- 
lished in  1917,  and  the  "Uni6n  Fabril  Cigarrera,"  established  in 
1911.  and  capitalized  at  3,125,000  bolivars  ($603,125^,  the  stock  of  the 
latter  being  quoted  in  November,  1920,  at  3  per  cent  above  par  and  the 
bonds  at  25  per  cent  above  par.  There  are  also  11  other  cigarette 
factories  located  in  Caracas — some  of  them  important.  Keen  com- 
petition exists  in  this  industry,  and  large  sums  are  spent  on  adver- 
tising and  propaganda  by  the  factories. 

COTTON  FACTORIES. 

The  first  cotton  mill  in  Venezuela  was  built  in  Caracas  by  a  Phila- 
delphian  in  1856,  but  this  venture  failed,  as  did  other  attempts  to 
establish  the  industry  in  the  country  until  Sr.  Salas  Perez  built  a 
mill  at  Valencia  about  30  years  ago  and  another  in  Caracas  in  1911, 


CABACAS  AND  COMMERCIAL  DISTRICT.  175 

the  two  being  now  united  under  the  name  of  "Telares  de  Caracas  y 
Valencia,  with  a  combined  capital  of  4,040,000  bolivars  ($779,720), 
divided  into  shares  of  100  bolivars  ($19.30)  each  and  now  quoted  on 
the  Caracas  market  at  95.  All  machinery  is  of  English  make.  The 
Valencia  mill  has  5,000  spindles  and  150  looms  and  the  Caracas  mill 
6,000  spindles  and  100  looms.  A  knitting  department  is  also  in- 
cluded in  the  Caracas  mill  equipment,  consisting  of  six  ordinary  and 
two  large  knitting  machines  and  four  hosiery  machines  of  Spanish 
mike.  Chiefly  calicoes,  denims,  drills,  arid  grey  goods  are  made  in 
the  cotton  mills,  which  are  equipped  with  spinning  and  dyeing 
plants.  In  September,  192Q,  a  price  reduction  of  25  per  cent  was 
made  on  all  goods  produced.  The  stock  was  then  selling  at  a 
premium  of  50  per  cent  above  par,  but  with  the  reduction  in  the 
prices  of  foreign-made  goods  and  the  general  depression  following 
the  lower  prices  for  coffee,  stocks  of  all  Venezuelan  industrial  enter- 
prises dropped  considerably. 

There  is  another  cotton  mill  in  the  Caracas  district  located  at  Palo 
Grande,  a  suburb  of  Caracas.  Its  name  is  Telares  de  Palo  Grande, 
and  the  capital  is  4,000,000  bolivars  ($772,000) .  Two  large  mills  are 
located  in  Valencia. 

The  balance  sheet  of  the  Telares  de  Caracas  y  Valencia  for  the  first 
half  of  1920,  as  of  June  30,  1920,  showed  the  following  results. 

Profits  (net)  for  the  period  January  1  to  June  30,  1920,  were 
1,329,019  bolivars  ($256,501),  distributed  as  follows: 

Bolivars. 

Reserve  fund,  5  per  cent  of 66, 451 

Dividend  guaranty  fund,  10  per  cent ^ 132, 902 

,            Six  dividend  payments,  to  January,  1921 909, 000 

Balance  to  guaranty  fund 220,066 

Total J_  1, 329, 019 

The  total  reserves  of  the  company  are  given  as  follows : 

Bolivars. 

Reserve  fund,  total 350,080 

Guaranty  fund,  total 669, 191 

Earnings  for  distribution 909, 000 

Total ^ 1,  928,  271 

These  reserves  represent  about  40  per  cent  of  the  capital  of  the 
enterprise.  A  further  fund  of  482,237  bolivars  ($93,072)  is  in  hand 
for  the  enlargement  of  the  plant.  In  Caracas  the  new  addition  is 
now  complete,  and  the  other  will  soon  have  the  machinery  installed, 
about  doubling  the  capacity  of  the  mill.  The  iiew  machine  shop  and 
repair  department  has  been  the  means  of  great  savings  to  the  com- 
pany. In  Valencia  the  new  addition  to  the  plant  has  been  completed 
and  the  machinery  installed,  the  total  number  of  looms  now  being  250. 

SHOE  SHOPS— FURNITURE  SHOPS— MISCELLANEOUS  ACTIVITIES. 

Caracas  has  a  number  of  small  shoe  shops  turning  out  a  very  good 
grade  of  footwear  for  the  local  trade.  Imported  leathers  are  used 
for  the  uppers,  shoe  findings  being  also  imported,  but  the  native 
leather  is  used  for  the  soles.  Ketail  prices  for  men's  hand-made  shoes 
run  from  $6  to  $12  per  pair.  The  bulk  of  the  population  wears  the 
native  "alpargata,"  a  leather  or  fiber  soled  sandal  with  a  coarse 


176     VENEZUELA:  A  COMMERCIAL.  AND  INDUSTRIAL  HANDBOOK. 

woven  cloth  toe  and*  heel  piece.  These  small  shoe  shops  completely 
supply  the  local  market  tor  high-grade  footwear  of  all  kinds,  the 
product  being  used  also  by  the  most  discriminating  foreigners. 

Furniture — much  of  it  of  beautiful  design  and  artistic  finish — is 
made  in  a  number  of  small  shops  in  the  city.  The  favorite  wood  is 
the  native  red  cedar,  which  withstands  the  attack  of  the  white  ant 
and  does  not  warp  with  the  moisture  during  the  rainy  season.  Car- 
penters and  joiners  receive  from  $1.20  to  $1.60  per  day  in  small 
shops,  and  furniture  can  be  purchased  at  prices  that  make  the  im- 
ported article  prohibitive.  Upholstery  materials  are  imported,  as 
are  marble  table  tops,  stand  tops,  and  mirrors. 

There  are  no  statistics  to  show  the  production  of  the  many  small 
shops  and  factories  turning  out  articles  that  compete  with  foreign- 
made  goods,  but  imports  of  furniture  and  shoes  into  the  country  are 
very  light  and  it  may  be  assumed  that  the  domestic  industry  just 
about  supplies  the  demand. 

Chocolate,  macaroni  products,  vegetable  oils,  etc.,  are  made  in  suffi- 
cient quantity  for  local  and  domestic  consumption,  while  in  Valen<iia 
the  production  of  cottonseed  oil  in  a  refined  state  is  sufficient  to  per- 
mit neavy  exportation  to  Cuba  and  Porto  Eico. 

WEARING  APPAREL 

Clothing  is  made  from  imported  and  domestic  materials  in  small 
tailor  shops,  of  which  there  are  a  considerable  number  in  Caracas. 
The  poorer  classes  wear  the  "  alpargata,"  trousers,  a  knit  cotton  un- 
dershirt, and  a  coat  cut  in  military  style,  with  buttoned  collar.  The 
goods  are  usually  cheap,  heavy,  and  rough  drills  which  wear  well 
and  which  form  the  principal  output  of  the  domestic  cotton  mills, 
although,  as  a  rule,  the  domestic  supply  does  not  fill  even  half  of  the 
demand.  People  of  the  more  well-to-do  class  wear  native  tailored 
suits — mostly  of  Palm  Beach  and  similar  cloths,  though  white  linen 
and  duck  are  also  worn.  Light  woolens  of  English  and  American 
manufacture  are  worn  also,  especially  in  the  evening  and  during  the 
winter  months,  when  the  climate  is  somewhat  cooler.  Ready-made 
clothing  of  light  materials  has  been  recently  imported  and  has  had  a 
good  sale.  There  are  two  or  three  small  shirt  factories  in  Caracas, 
but  none  of  them  is  important. 

In  women's  wear  practically  the  same  condition  obtains.  The 
women  of  the  lower  class  do  not  wear  stockings,  as  a  rule,  although 
they  are  beginning  to  be  better  dressed  and  to  adopt  the  styles  of  the 
upper  classes.  Dresses  and  waists  are  usually  made  in  the  many 
small  sewing  sjiops.  French  and  American  fancy  shirtwaists  are 
also  imported  and  find  a  ready  market.  American  style  magazines 
ar3  sold  in  Caracas  and  find  an  interested  group  of  reaaers  among  the 
wealthier  people,  who  are  quick  to  adopt  new  styles  and  modes  and 
who  dress  very  well,  indeed.  Most  of  the  women's  shoes  and  slippers 
are  made  locally,  "  to  order,"  in  the  many  small  shoe  shops.  Fancy 
evening  slippers  of  French  and  American  make  are  also  imported 
and  handled  by  the  larger  stores  carrying  dry  goods,  etc.,  but  the 
local  shoemakers  are  now  turning  out  very  good  imitations  of  the 
best  foreign  article  in  this  line.  The  American  last  for  women  and 
men  is  found  to  be  too  long  and  narrow  for  the  average  Venezuelan 


CAKACAS  AND  COMMERCIAL  DISTRICT.  177 

foot,  which  is  short,  with  high  instep.  French  exporters  of  footwear 
provide  a  special  short-vamp,  high-arched  slipper  for  this  trade, 
which  finds  an  excellent  market.  The  same  is  true  of  women^s  stock- 
ings, the  American  make  being  found  too  long  in  the  foot  measure- 
ment for  average  wear  in  Venezuela. 

On  account  of  the  high  import  duties  on  ready-made  clothing  of 
all  kinds  and  the  low  cost  of  native  labor  (the  native  women  being 
very  good  seamstresses),  it  is  cheaper  to  have  clothing  made  than  to 
import  it  ready-made.  However,  light  underwear  is  imported  for 
the  better  class  of  trade,  as  are  also  pajamas,  neckwear,  collars,  etc. 
The  bulk  of  the  small  retail  dry-goods  trade  is  in  the  hands  of  Syrians 
and  Corsicans. 

MANUFACrUKB  OF  SOAP. 

An  important  item  of  domestic  manufacture  is  soap  of  many  kinds. 
In  Caracas  and  La  Guaira  there  are  seven  soap  factories,  two  of 
which  are  in  the  port  city.  The  largest  is  the  "  Victoria,"  of  Perret  y 
Cia.,  in  La  Guaira.  A  cheap  grade  of  laundry  soap  is  made,  as  well 
as  fancy  perfumed  soap,  which  ii^uch  in  demand.  Lahoud  y  Cia.,  of 
Caracas,  make  a  specialty  of  the  latter  grade  and  imitate  well-known 
foreign  soaps,  such  as  those  of  a  celebrated  American  company,  which 
are  very  well  known  in  the  country.  Large  quantities  of  fancy  soaps 
and  toilet  articles  are  imported  into  the  country,  Caracas  being  the 
principal  market.  In  1917.  the  United  States  exported  to  Venezuela 
$35,441  worth  of  toilet  and  fancy  soaps,  and  in  1918  $38,513  worth. 
Local  and  domestic  soap  factories  import  all  chemicals  used,  as  well 
as  essences,  etc.  Animal  fats  and  greases,  coconut  oil  and  cotton- 
seed oil  are  used  in  the  manufacture  of  these  soaps.  During  the  year 
1919  the  port  of  La  Guaira  shipped  out,  by  coastwise  traffic,  to  points 
along  the  Venezuelan  seaboard  a  total  ot  326,509  kilos  of  domestic 
soaps,  valued  at  490,926  bolivars  ($94,740). 

TANNING. 

The  tanning  industry  is  well  represented  by  seven  rather  large 
plants,  making  sole  leatner,  which  is  much  used  for  the  native  sandal 
and  modern  shoe.  A  poor  grade  of  kid  and  calfskin  is  also  manufac- 
tured,  but  does  not  compete  with  the  imported  article,  being  much 
inferior  in  finish  and  appearance.  The  domestic  sole  leather  is  of 
poor  quality,  also,  and  has  a  bad  odor  when  wet.  The  largest  tannery 
IS  that  of  Boccardo  y  Cia.,  of  Caracas.  The  industry  is  an  important 
one,  as  large -quantities  of  sole  leather  are  exported. 

The  tanning  industry  is  one  that  is  capable  of  great  expansion  for 
export.  Labor  is  cheap  and  fairly  plentiful  around  the  city  of  Cara- 
cas ;  the  people  prefer  to  work  in  the  factories  there  rather  than  on 
the  agricultural  lands  around  Valencia,  where  malaria  abounds.  The 
country  exports  cattle  hides,  goat  and  deer  skins  in  large  quantities 
every  year,  and  the  live-stock  industry  is  increasing  year  by  year 
with  the  application  of  better  breeding  methods  and  more  care  of  the 
ranges.  What  is  needed  is  modem  methods  and  machinery  and  or- 
ganization of  the  industry  on  a  large  scale.  Tanning  materials  are 
plentiful  and  easily  obtained  in  the  country,  being  items  of  export 
also.    Divi-divi  and  mangrove  bark  abound.    The  domestic  market 

79747o__22 13 


178     VENEZUELA :  A  COMMERCIAL  AKD  INDUSTRIAL  HANDBOOK. 

for  fine  grades  of  shoe  leathers  is  a  good  one,  imports  in  1919 
of  these  leathers — sole,  upper,  grain-split,  calf,  and  kid — amounting 
to  a  total  of  $208,618.  Neighboring  countries,  such  as  Colombia,  also  , 
import  large  quantities  of  fine  leathers  for  shoemaking,  etc. 

UQDOR  PACTOBIBS— STABCH  FACTORIES— MACHINE  SHOPS  AND  FODNDBIE8. 

A  rather  large  industry  in  Caracas  is  that  of  the  liquor  factories, 
in  which  various  fancy  native  drinks  are  made  from  the  rum  of  the 
country;  these  beverages  enjoy  a  considerable  demand,  even  being 
shipped  out  coastwise.  Of  these  factories  there  are  seven  in  Caracas 
alone. 

There  are  also  two  starch  factories,  and  five  small  corset  factories. 

Caracas  also  has  six  small  machine  shops  and  foundries,  where 
small  work  is  turned  out  to  order — the  largest  plant  being  that  at- 
tached to  the  glass  factory  mentioned  on  page  173, 

Insurance  is  represented  in  Caracas  by  the  native  Venezuelan  com- 
pany La  Previsora,  capitalized  at  6,000,000  bolivars  ($1,158,000)  and 
doing  a  general  life,  fire,  and  marine  insurance  business. '  The  capital 
stock  is  divided  into  shares  of  200  bolivars  each,  which  were  quoted 
on  the  Caracas  market  in  November,  1920,  at  112  per  cent,  or  12  per 
cent  above  par.  Agencies  are  maintained  in  all  of  the  principal  cities 
and  towns  of  the  country. 

•    COMPANIES  LISTED  ON  CARACAS  BOURSE. 

To  convey  a  better  idea  of  the  magnitude  of  the  commercial, 
public-utility,  and  industrial  companies  of  Caracas  and  Venezuela, 
(that  ia,  incorporated  companies  having  their  head  offices  in  Caracas) , 
there  is  given  below  a  list  of  the  companies  whose  stock  is  quoted  on 
the  Caracas  bourse. 


CirKal,  In  Sharu,  Id 


Bmeo  de  VmsiuulB 

BuwadaCkncBs 

Cancu  Eleotdo  Co 

Vakneik  EltetrlcCo 

Larnnuc* 

la  Pravisora  (insoianc*) 

KMloml  Faw  Faolorr  (Cancu) 

Hbcic*  da  Papal  <1«  Ukiae>]> 

r«r»«earlB  Nadonal 

Carreufla  da  Ualqnetla 

Corddarla  Nadomil  (oord«KB> 

Cla.  Nadonal  da  Navwadan. 

TabiH  da  Caracal  rValaoda 

Cla.  NadODtl  da  Camanto 

TablMT HUaadBTlas  Orlantalaa 

VnUaiFabTlICIgamra 

La  Indnttrlal  Clgancra 

Ld(  EUotrlea  da  Lm  Taqnea 

Lqi  Eltetrtca  da  BarqalamatD 

ClB.  Industrial  da  Hantanaret 

Cla.  d<l"ATl]a"(LDa  Choms)  (buUdlng  lots  In  sabniba) 

Boofedad  dcCInny  Einaetfcnloi 

Cla.  da  VldrlD  7  CrMal  

Vanatuali  SnitarCa 

Central  Aiucararo  La  Calba 

Caniptm  ftCnmana  Ftar  &  Tramway 

HMes  Nadoiul  da  Ucnalcns 

Cla.  da  TaUtoms  da  Bariavanto 

Traovtai  EUotrlcpc  da  VbIsdoIb 

Sodadad  bidustrlal  Amcerara  de  Tacarltna 

PaanayLaidaPiurtaCalMllo 


CARACAS  AND  COMMERCIAL  DISTRICT. 


INDUSTRIAL,  PROFESSIONAL.  AND  COMMERCIAL  STATISTICS. 

In  Caracas  alone  there  are  the  following  small  shops  and  factories, 
all  turning  out  articles  of  ordinary  use:  Medical -cotton  factory,  1; 
pottery  factories,  21 ;  sandal  factories,  125 ;  sawmills,  4 ;  trunk 
factories,  3 :  carbouated-water  factories,  3 ;  coffee- cleaning  plants, 
4;  cardboard-box  factories,  5;  wooden-box  factories,  2:  shirt  factories, 
31 ;  candies,  5 ;  carriage  and  cart  shops,  10 ;  mattress  factories,  9 ;  dye 
factory,  1;  chocolate  factories,  5;  furniture  factories,  32  j  hammock 
factory,  1 ;  ice  factories,  2 ;  shoe-last  shops,  1  j  hairpin  shop,  1  j  small 
soap  factories,  5;  tile  factories  (cement),  6;  macaroni,  6;  fireworks, 
12 ;  cooper  shops,  3  j  candle  factories,  2 ;  shoemakers'  shops,  60. 

The  professions  are  represented  by:  Surveyors,  27;  agricultural 
experts,  10;  architects,  15;  sculptors,  27;  pharmacists,  97;  photog- 
raphers, 40;  engravers,  19;  professors  of  languages,  34;  electrical 
engineers,  6;  other  engineers,  135;  chemical  laboratories  (doctors), 
19;  lithographers,  2;  doctors  of  medicine,  153;  lawyers,  210;  oculists, 
5 ;  opticians,  4. 

Commercial  and  related  lines  are  represented  by  the  following: 
Real  estate  and  rental  agencies,  17;  funeral  directors,  4;  brokers,  107 j 
steamship  agencies,  7 ;  electrical  goods  and  materials,  15 ;  office  sup- 
plies, 9;  men's  furnishings,  11;  garages  and  automobile  renting 
establishments,  23;  drug  stores,  50;  candy  and  pastry  shops,  226; 
motion-picture  films,  rental  and  sale,  6;  commission  merchants,  28; 
construction  company,  1;  mirror  shops,  4;  cattle  buyers,  4;  im- 


180     VENEZUELA:   A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

porters  of  foreign  merchandise,  170;  printers,  30;  jewelry  stores, 
49;  bookstores,  20;  manufacturers'  agents,  54;  construction  ma- 
terials, 22;  dry-goods  importers,  30;  dry-goods  retail  stores,  69; 
furniture  stores,  34;  bakeries,  27;  hardware  stores,  51;  tailor  shops, 
66;  hat  shops,  14;  saddle  shops,  19 ;  grocery  stores,  importing  canned 
and  bottled  goods,  44 ;  shoemakers  and  shoe  stores,  60. 

The  trades  are  represented  in  Caracas  by :  Masons,  585 ;  automobile 
repair  shops,  6 ;  carpenters  and  shops,  330 ;  decorators,  15 ;  blacksmith 
shops,  51;  printers,  30;  mechanics,  200;  painters,  143 — ^besides  large 
numbers  of  bakers,  sewing  women,  tailors,  etc. 


MARACAIBO  COMMERCIAL  DISTRICT. 

LOCATION  AND  TERRITORY. 

The  Maracaibo  commercial  district  includes  that  section  of  Vene- 
zuela around  Lake  Maracaibo  that  is  more  easily  accessible  through 
the  port  of  Maracaibo  than  through  any  other  port  of  the  Kepubhc. 
It  includes  the  States  of  Zulia,  Trujillo,  Merida,  and  Tachira.  The 
trade  of  the  district,  together  with  that  of  the  Cuouta  region  of 
Colombia,  is  controlled  by  the  importing  merchants  of  the  city  of 
Maracaibo,  who  purchase  from  abroad  and  resell  to  the  interior. 
Some  direct  business  is  done  by  foreign  mercantile  firms  with  Cucuta, 
but  this  is  rather  the  exception. 

The  boundaries  of  the  district  are :  On  the  north,  the  Caribbean 
Sea ;  on  the  northeast,  the  boundary  line  of  the  States  of  Falcon  and 
Lara;  on  the  southeast,  the  main  range  of  the  Venezuelan  Andes, 
called  the  "  Cordillera  Merida,"  dividing  the  States  of  Portuguesa 
and  Zamora  (included  in  the  Puerto  Cabello- Valencia  commercial 
territory)  from  the  Maracaibo  region ;  on  the  south,  the  international 
boundary  with  Colombia ;  and  on  the  west  the  international  boundary 
with  Colombia,  which,  north  of  Cucuta,  follows  the  line  of  the  range 
of  Peri] a  (part  of  the  Colombian  Andes)  until  the  peninsula  of 
Goajira  is  reached,  Venezuelan  territory  taking  in  a  part  of  the 
peninsula  as  far  as  Castilletes  Bay  on  the  Chilf  of  Venezuela,  formed 
by  the  Goajira  and  Paraguana  Peninsulas. 

The  area  and  population  of  the  four  States  are  shown  in  the  fol- 
lowing table : 

[Square  kilomefeff»0.386  square  mile.] 


Area,  in 

square 

kilometen. 

Population. 

Denattyof 
population 
per  square 
kilometer. 

States. 

Census, 
1891. 

Estimated, 
1917. 

Zulia 

65,500 

11,100 

11,300 

7,400 

150,775 

101,709 

88,522 

146,585 

185,579 
135; 068 
115,537 
186yfl24 

2l8 

Tachira 

12.2 

Merida. 

ia2 

TruJiHo 

25.1 

Total ;...  . 

96,300 

487,502 

621.828 

6.5 

The  area  of  the  district  is  equal  to  9.1  per  cent  of  the  total  area 
of  Venezuela,  and  its  population  to  approximately  22  per  cent  of  the 
total  population  of  flie  country  as  estimated  m  December,  1917. 
The  population  is  for  the  most  part  rural,  depending  upon  agricul- 
ture for  its  livelihood;  coffee,  cacao,  and  sugar  cane  are  the  largest 
items  of  production.  With  the  exception  of  the  sugar  estates,  one 
brewery  and  one  oil  refinery,  manufacturing  is  limited  to  a  few  loeal 
factories  turning  out  articles  of  local  use  on  a  small  scale. 

181 


182     VENEZUELA :  A  COMMERCIAL  AKD  INDUSTEIAL  HAMPBOOK. 


—Map  or  Uaraciitbo  commercial  d 


MABAGAIBO  COMMERCIAL  DISTRICT.  183 

TOPOGRAPHY. 

The  great  basis  of  Lake  Maracaibo  extends  inland  from  the  Gulf 
of  Venezmela  (on  the  Cairibbean  Sea)  for  a  distance  of  approxi- 
mately 135  miles,  and  is  60  miles  wide  in  the  widest  place.  The  « 
lake  proper  is,  in  reality,  a  large,  shallow  inland  gulf  or  bay,  con- 
nected with  the  sea  by  a  fairly  wide  channel  about  ^  miles  in  length, 
also  of  shallow  depth,  the  entrance  for  vessels  permitting  only  an 
11-foot  draft,  and  uierefore  preventing  the  port  of  Maracau)o,  which 
is  also  theprincipal  city,  from  being  a  regular  i>prt  of  call  for  ocean 
vessels.  The  lake  has  many  points  of  similarity  with  the  forma- 
tion of  the  delta  of  the  Orinoco  in  the  far  eastern  part  of  Venezuela, 
both  in  hvdrography  and  in  general  character.  Innumerable  rivers 
and  small  streams  drain  into  the  lake  from  all  sides.  The  southern 
part  has  hundreds  of  streams  comparable  to  the  "  canos  "  or  sloughs, 
with  open  lagoons  and  swamps,  fringed  with  forests  heavily  watered 
by  rains.  On  the  east  and  west  shores  there  are  stretches  of  higher 
ground  between  the  swamps  and  frequent  grassy  plains  like  the 
llanos.  With  the  exception  of  the  extreme  northeastern  end,  the 
basin  is  entirely  surrounded  by  high  ranges  of  mountains.  The 
principal  rivers  traversing  these  plains  are  the  Motatan,  in  the 
region  of  Trujillo;  the  Chama,  which  flows  down  from  the  Andes 
in  the  region  of  Merida;  the  Escalante,  toward  the  southwest  be- 
tween the  great  swamps  of  Onia  and  Mortuto;  and  the  Catatumbo, 
which,  with  its  larger  tributaries,  the  Zulia,  Tarra^  and  Socavo, 
rises  in  the  Colombian  Andes  to  the  south  and  southwest.  The 
mouths  of  all  these  rivers  are  deltaic  in  character,  and  all  are  navi- 
gable to  a  greater  or  less  extent,  those  used  by  river  steamers  for 
considerable  distances  being  the  Escalante  and  the  Catatumbo  and 
Zulia.  The  principal  cattle  plains  which  rise  from  the  lake  basin 
are  those  foimd  on  the  lower  slopes  of  the  Serrania  del  Empalado 
to  the  east.  Farther  to  the  north,  both  on  the  east  and  on  the  west 
side  of  the  lake  channel  north  of  Maracaibo,  are  open  dry  lands 
broken  by  brackish  lagoons  during  and  just  after  the  rainy  season, 
the  shores  of  the  channel  being  low,  flat,  and  with  little  vegetation 
on  account  of  the  greatly  diminishing  ramf all  near  the  coast  on  the 
Coro  side  and  farther  west  toward  the  Goajira  Peninsula,  which  is 
quite  arid  throughout  most  of  its  extent. 

The  Venezuelan  Andes  stretch  from  the  Colombian  frontier  for 
300  miles  northeastward  via  San  Cristobal,  Merida,  and  Trujillo  into 
the  State  of  Lara,  forming  the  highest  land  in  the  whole  country. 
There  are  two  main  divisions  of  this  mountain  group — (1)  the  PortU- 
guesa  chain  south  of  Barquisimeto  and  (2)  the  Cordillera  de  Merida, 
constituting  the  higher  and  more  important  part.  The  Portuguesa 
chain  reaches  its  greatest  elevation  (13,100  feet)  in  the  south  near 
the  sources  of  the  Tocuyo  River,  the  northern  portion  rising  to  only 
about  5,000  feet.  A  slight  break  in  the  mass  is  causied  by  tne  valley 
of  the  Bocono,  beyond  which  the  Cordillera  de  Merida  begins  with 
peaks  of  nearly  13,000  feet  on  the  north,  rising  to  a  maximum  in  the 
center^  where  the  summits  of  the  Sierra  Nevada  de  Merida  have  an 
elevation  of  about  16,400  feet;  the  highest  peak,  La  Columna,  is 
16,423  feet  above  sea  level.  To  the  south  the  elevation  decreases  again, 
until,  on  the  borders  of  Colombia,  the  watershed  is  less  than  5,000 
feet  above  sea  level.    The  streams  of  this  chain,  with  its  steep  outer 


184     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

flanks  so  characteristic  of  the  Andes,  naturally  belong,  on  the  eastern 
side  of  the  range,  to  the  drainage  area  of  the  Upper  Apure,  which 
feeds  the  Orinoco  lower  down  toward  the  east,  and,  on  the  western 
side,  to  the  Lake  Maracaibo  Basin.  But  there  is  a  succession  of  longi- 
tudinal valleys  within  the  chain,  the  chief  of  these  being  that  of  the 
River  Motatan,  which  rises  north  of  Merida  and  fiows  northward 
through  Trujillo  to  Lake  Maracaibo;  that  of  the  River  Chama,  which 
has  its  source  in  the  snows  that  supply  the  upper  waters  of  the  Mota- 
tan, though  this  stream  runs  southward  past  Merida  and  then  turns 
sharply  northward  to  reach  the  south  shore  of  Lake  Maracaibo ;  and 
that  oi  the  River  Torbes,  which  runs  south  westward  by  San  Cristobal 
,and  turns  there  to  the  east,  to  empty  into  the  Uribante,  a  tributary  of 
the  Apure. 

Every  type  of  climate  and  vegetation  occurs  within  the  zone  de- 
scribed— ^the  semiarid  sandy  plains  of  the  north  near  the  Caribbean 
Sea;  the  intensely  tropical  lower  levels  surrounding  the  southern 
shores  of  the  lake,  covered  with  dense  forest  and  jungle;  the  inter- 
mediate levels  of  the  mountains,  with  fertile  valleys  where  cereals 
are  grown ;  the  grass-clad  slopes  and  summits  of  the  higher  hills  and 
mountains ;  and  then,  above,  the  snow  of  the  "  paramos  "  and  peaks 
of  the  Sierra  Nevada.  In  between  are  found  small  hot  gorges  sup- 
porting only  cacti  and  acacias.  The  best  and  most  accessible  agricul- 
tural lands  are  along  the  southern  shore  of  the  lake  in  the  region  of 
the  ancient  town  of  Gibraltar  and  Santa  Maria.  The  vast  region  to 
the  west  of  the  lake  is  the  least  inhabited  and  explored,  but  it  has 
been  penetrated  during  the  past  10  years  by  prospectors  for  petroleum, 
development  in  this  Ime  being  about  the  only  activity  in  this  region 
except  on  the  immediate  shores  of  the  lake  itself,  around  which  there 
are  numerous  small  villages  inhabited  by  Indians  and  *'  mestizos." 

CLIMATK 

Here,  as  elsewhere  near  the  Equator,  climate  is  a  matter  of  eleva- 
tion. The  entire  Maracaibo  Lake  Basin  is  hot,  and  extreme  tropical 
conditions  prevail,  the  same  being  true  of  the  valleys  of  the  rivers. 
Maracaibo  is  characterized  in  Venezuela  as  the  hottest  place  in  the 
country ;  it  is  the  hottest  large  city,  but  the  temperature  of  the  llanos 
at  San  Fernando  de  Apure  is  higher  on  the  average,  as  is  also  that  of 
Ciudad  Bolivar  down  the  Orinoco.  At  an  elevation  of  3,000  feet 
above  the  lake  a  semitropical  climate  is  found.  At  4,000  feet  it  is 
much  cooler  and  tropical  diseases  disappear.  At  6,000  feet  wheat  is 
grown. 

The  average  high  temperature  for  Maracaibo  is  95®  F.,  the  average 
minimimi  68®  F.,  and  the  average  mean  temperature  82.4°  F.  The 
average  high  humidity  of  the  atmosphere  is  98.1°,  the  average  low 
humiaity  74.09°,  and  the  average  mean  humidity  97.19°.  These  fig- 
ures may  be  taken  as  a  fair  average,  also,  for  the  lowlands  surround- 
ing^ the  lake. 

The  records  of  the  meteorological  station  in  the  city  of  Maracaibo 
show  the  following  rainfall  for  the  year  1917 : 


MABACAIBO   COMMERCIAL  DISTRICT. 


185 


Months. 

* 

Duration 

(entire 

month). 

Maximum 

in  any 

one  day. 

Total  pre- 
cipitation 
during 
month. 

January 

H.    9n. 
None. 
None. 

0     2 
16      4 
27      5 
18      7 
47      0 
30      1 
47      3 
No  data. 
11     0 

2     2 

Inches. 

None. 

None. 

0.2047 
.3818 
.8622 
.2510 

1.0787 
.7245 

1.4330 
.6078 

1.6732 
.5706 

Inches. 
None. 

February 

None. 

March 

a  212 

April 

.996 

May 

3.850 

June 

1.060 

July 

3.755 

August 

3.933 

September 

3.952 

October 

1.706 

November 

3.031 

December * 

.956 

Total '. 

198    24 

23.451 

The  rainfall  increases  very  considerably  toward  the  southern  part 
of  the  lake,  being  around  42  inches  per  annum  in  the  lowlands  along 
the  southern  margin  and  up  the  valley  of  the  Catatumbo  River.  It 
diminishes  toward  the  north,  northeast,  and  northwest,  the  lands 
taking  on  the  same  characteristics  as  those  of  the  Coro  region  and 
the  Goajira  Peninsula. 

Storms  of  short  duration  are  liable  to  occur  during  the  summer 
and  fall  months.  There  is  a  strong:  and  steady  trade  wind  during 
the  months  of  January,  February,  March,  and  sometimes  along  .into 
April.  Very  peculiar  meteorological  conditions  are  found  in  the  lake 
region.  A  vivid  and  continuous  lightning  is  seen  at  night  over  the 
southern  end  of  the  lake,  being  generally  described  in  Maracaibo  as 
seen  "near  the  mouth  of  the  Catatumbo  River."  The  flashes  seem, 
however,  to  extend  all  along  the  line  of  the  mountains,  which  rise  to 
a  height  of  14,000  to  15,00l0  feet  at  a  comparatively  short  distance 
back  from  the  lake.  These  lights  are  called  by  mariners  the  "  Mara- 
caibo lights,"  and  can  be  seen  from  the  sea  to  the  north  out  of  range 
of  any  existing  lighthouses.  A  possible  explanation  seems  to  be 
found  in  the  fact  that  the  atmosphere  over  the  bare  mountains  cools 
rapidly  at  sunset,  while  the  heavily  charged  hot  air  of  the  basin  of 
the  laKe  region  rises,  so  that  masses  of  air  of  different  potentials  meet 
at  a  great  height  and  emit  huge  electrical  sparks,  visible,  like  light- 
ning, for  hundreds  of  miles;  In  any  case,  the  flashes  are  seen  every 
night,  from  sunset  to  sunrise,  with  little  variation  in  brilliance. 

HEALTH  CONDITIONS. 

Malaria  is  very  prevalent  in  and  around  Maracaibo,  and  epidemics 
follow  severe  rainy  seasons  in  the  fall  of  the  year,  with  attendant 
diseases  peculiar  to  the  Tropics.  There  appear  to  have  been  no  cases 
of  yellow  fever  in  Maracaibo  for  the  last  five  or  six  years,  but  this 
disease  was  formerly  epidemic  from  time  to  time  and  occurred  also 
in  Cucuta,  across  the  "Colombian  border.  Certain  spots  have  a  local 
reputation  for  malaria,  such  as  the  sugar  estates  on  the  southern 
shore  of  the  lake  and  in  the  Catatumbo  River  Valley. 

Residents  coming  from  the  north  nearly  always  suffer  from  "  cli- 
matic fever  "  within  a  few  months  after  arrival,  few  escaping  some 
form  of  malaria.    Careful  precautions  of  screening  and  sanijtation 


186     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

^io  much  to  prevent  the  disease.  The  principal  residence  section  of 
Maracaibo  is  the  suburb  of  Bellavista,  15  minutes  by  electric  car 
line  from  the  city  proper  and  located  at  an  elevation  of  140  feet 
above  sea  level,  where  the  benefit  of  the  breeze  ftom  the  water  is 
felt  to  a  greater  extent  than  in  the  city.  Clothing  should  be  as  light 
as  possible — Palm  Beach  cloth,  white  duck,  drills,  etc.,  being  most 
xised  for  dress. 

POPULATION—DISTRIBUTION  BY  STATES,  DISTRICTS,  AND 

CAPITALS. 

The  State  of  Zulia  is  divided  into  nine  districts,  of  which  the 
<5apital  towns  are  Santa  Rita,  San  Carlos  (del  Zulia),  San  Eafael, 
Maracaibo,  Altagracia,  Sinamaica,  Libertad,  JBobure,and  Concepcion. 
All  the  districts,  except  Maracaibo  and  Sinamaica,  have  a  very  small 
population — between  6,000  and  7,000  each.  According  to  the  official 
estimate  of  1915  the  city  of  Maracaibo  had  a  population  of  48,490, 
although  the  national  census  of  1891  gave  the  entire  district  only 
37,551,  including  the  city.  The  place  has  progressed  rapidly,  until 
it  is  now  the  third  city  in  size  and  the  second  in  commercial  im- 
portance  in  Venezuela.  The  district  of  Sinamaica,  situated  to  the 
north  of  Maracaibo,  has  an  Indian  population  composed  of  68,707 
Goajiras. 

Santa  Sita  and  Altagracia  are  on  the  opposite  shore  of  the  lake 
from  Maracaibo.  San  Eafael  is  on  Maj  an  Island  at  the  entrance  to 
the  channel  of  the  lake.  Sinamaica  lies  farther  to  the  northwest, 
between  Lake  Sinamaica  and  the  sea,  in  the  region  of  the  River 
Limon.  San  Carlos  del  Zulia  is  on  the  River  Escalante,  opposite 
Santa  Barbara,  the  rail  point  for  Merida,  in  the  extreme  southern 
part  of  the  State.  Libertad  is  in  the  center  of  the  district  of  Peri j  a, 
to  the  west  of  the  lake,  on  the  River  Opon — ^the  town  being  formerly 
known  as  Machiques.  Bobure,  capital  of  the  district  of  Sucre,  is 
on  the  eastern  shore  of  the  lake,  and  Concepcion  on  the  western  side, 

i'ust  south  of  Maracaibo.  All  the  State  is  connected  with  Maracaibo 
►y  the  waterways  of  the  rivers  and  the  lake,  service  being  by  small 
lake  and  river  steamers  of  the  shallow-draft  type  and  many  small 
sailing  schooners  and  canoes. 

The  State  of  Trujillo  occupies  the  eastern  central  part  of  the 
territory  described,  having  a  sipall  frontage  on  the  lake  and  being 
bounded  on  the  northeast  by  the  State  of  Lara,  on  the  east  by  the 
State  of  Portujguesa,  on  the  southeast  and  south  by  the  States  of  Za- 
mora  and  Merida,  and  on  the  southwest  by  the  State  of  Zulia.  There 
«re  seven  districts,  of  which  the  towns  of  Betijoque,  Bocono,  Carache, 
Escuque,  Trujillo,  La  Quebrada,  and  Valera  are  the  capitals.  The 
inost  .populous  districts  are  Bocono,  Carache,  and  Trujillo,  the  first 
two  of  these  having  more  than  33,000  people  each  and  Trujillo  about 
26,000.    The  others  have  from  12,000  to  14,000  each. 

Carache  is  in  the  extreme  northeastern  part  of  the  State  on  the 
headwaters  of  the  River  Bucares,  lying  to  the  west  of  the  main  range 
of  the  Cordillera.  The  important  town  of  Bocono  lies  east  of  Tru- 
jillo, on  the  eastern  side  of  the  main  ran^e.  Valera  lies  on  the  River 
Motatan,  just  south  of  the  present  terminus  of  the  La  Ceiba  Rail- 
way, and  IS  on  the  main  route  to  Trujillo.  Betijoque  is  due  west  of 
Valera  And  Motatan  in  the  center  of  large  plains  that  lie  south  of 


MARACAIBO  COMMERCIAL  DISTRICT.  187 

the  railway.  Escuaue  is  just  to  the  south.  La  Quebrada  is  in  the 
southeastern  part  oi  the  State,  in  the  mountains. 

The  State  of  Merida  lies  entirely  south  of  Lake  Maracaibo,  and, 
like  Trujillo  and  Tachira,  is  one  of  the  mountain  States  of  the 
Kepublic,  being  traversed  by  the  main  range  of  the  Venezuelan 
Andes,  called  the  Cordillera  de  Merida.  The  State  is  divided  into 
eight  districts,  of  which  the  towns  of  Egido,  Merida,  Timotes,  Mu- 
cuchies,  Bailadores,  Lagunillas,  Tonondoy,  and  Tovar  are  the  capi- 
tals. Timotes  is  in  the  extreme  northern  part  of  the  State  (almost 
on  the  line  with  Trujillo),  on  the  headwaters  of  the  River  Motatan. 
Mucuchies  lies  farther  south,  in  line  with  Merida.  Ejido  is  very 
near  Merida,  also  on  the  Chama  River,  while  Lagunillas  is  in  the 
central  part  of  the  State.  Bailadores  and  Tovar  are  close  together 
in  the  far  southwestern  part.  Tonondoy  lies  in  the  extreme  northern 
part,  nearest  Lake  Maracaibo.  The  State  of  Merida  is  cut  off  from 
Lake  Maracaibo  by  the  State  of  Zulia,  communication  with  the  lake 
being  by  means  of  the  Santa  Barbara-El  Vigia  Railwav,  which  con- 
nects with  navigation  on  the  Escalante  River  at  Santa  Barbara. 

The  Andean  State  of  Tachira,  of  which  San  Cristobal  is  the  cap- 
ital, occupies  the  extreme  southwestern  corner  of  Venezuela,  its 
entire  western  border  being  the  international  line  with  the  neighbor- 
ing Republic  of  Colombia.  A  long,  narrow  strip  of  the  State  of 
Apure  forms  the  southern  boundary  of  Tachira ;  it  touches  Zamora 
for  a  short  distance  on  the  east,  while  the  eastern  and  northern 
boundaries  are  the  States  of  Merida  and  Zulia.  There  are  nine  dis- 
tricts, of  which  the  capitals  are  the  towns  of  San  Juan  de  Colon, 
San  Antonio,  Tariba,  Independencia,  Rubio,  La  Grita,  Lobatera,  San 
Cristobal,  and  Pergonero. 

Pergonero  lies  in  the  extreme  eastern  part  of  the  State  on  the 
headwaters  of  the  Uribante  River,  which  is  on  the  eastern  watershed 
and  flows  into  the  Apure  in  the  State  of  Apure.  San  Antonio  lies  in 
the  extreme  western  part,  almost  on  the  line  with  Colombia,  just 
across  from  the  Colombian  town  of  Frontera  on  the  Tachira  River. 
Rubio  is  just  to  the  southeast  of  San  Antonio.  Tariba  lies  just  to 
the  north  of  San  Cristobal  on  the  Torbes  River.  Lobatera  is  farther 
to  the  north,  on  the  trail  leading  to  the  terminus  of  the  Tachira 
Railway  at  La  Uraca.  La  Grita  lies  in  the  northern  part  of  the 
State,  on  the  headwaters  of  the  River  La  Grita,  which  flows  into. the 
Zulia.  San  Juan  de  Colon  lies  on  the  road  between  San  Cristobal 
and  La  Uraca.  The  most  populous  districts  are  San  Cristobal  and 
La  Grita,  with  19,000  and  18,000  people,  respectively. 

CITIES   AND   TOWNS— COMMERCIAL    DISTRIBUTION    AND   TRADE 

ROUTES. 

MARACAIBO. 

Maracaibo-^capital  of  the  State  of  Zulia  and  the  commercial  center 
for  the  entire  district,  as  well  as  for  the  Colombian  frontier  city  of 
Cucuta  and  its  surrounding  territory — was  founded  by  the  German, 
Alfinger,  in  1529.  The  original  town  fell  into  decay,  and  the  present 
one  dates  back  to  1571,  wnen  Don  Alonzo  Pacheco  founded  it  as 
Nueva  Zamora.  The  Indian  name  outlasted  the  Spanish  title.  To- 
day Maracaibo  is  the  second  port  of  the  Kepublic  and  has  an  export 


188     VENEZUELA:   A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

trade  greater  than  that  of  La  Guaira.  It  is  located  on  a  fine  bay, 
with  a  good  natural  harbor,  but  the  diflScult  navigation  of  the  mouth 
of  the  channel  leading  from  the  lake  to  the  sea  prevents  the  city 
from  becoming  a  real  maritime  port.  Many  schemes  have  been  ad- 
vanced for  dredging  one  of  the  four  channels  and  so  providing  a 
permanent  entrance  for  seagoing  steamers,  but  the  plans  call  for 
work  of  great  magnitude,  and  the  constant  silting  up  of  the  water- 
ways presents  many  difficulties.  An  alternative  idea  is  that  of  a 
railway  to  the  port  of  Cojoro  on  the  Gulf  of  Venezuela.  The  length 
of  this  line  would  be  some  100  miles. 

While  it  possesses  a  water  supply  and  electric  lighting  system,  the 
chief  needs  of  the  town  are  a  good  drainage  system,  paving,  and  a 
better  water  supply.  The  place  has  groWn  very  rapidly  and  build- 
ings are  more  for  use  than  ornament. 

The  Maracaibo  Electric  Light  Co.  is  an  American  corporation 
founded  in  1886.  The  power  is  provided  by  steam  turbines  driving 
generators  of  1,000-kilowatt  capacity.  The  voltage  is  110,  220,  and 
2,200,  3-phase,  60-cycle,  alternating  current.  Current  is  supplied 
for  the  electric  railway  and  6,000  lights,  besides  power  for  several 
small  factories  and  shops.  Current  is  sufficient  for  14,000  more  lights. 
The  company  is  capitalized  at  $336,000,  divided  into  shares  of  $100 
each.  Stock  was  quoted  on  the  Maracaibo  and  Caracas  markets  in 
December,  1920,  at  375  to  400  bolivars  ($72  to  $77). 

In  May,  1920,  the  officials  of  the  Maracaibo  Electric  Street  Rail- 
way accepted  an  offer  of  500,000  bolivars  ($96,500)  for  its  line  in  the 
city  of  Maracaibo  and  all  its  equipment,  this  offer  being  made  by  a 
syndicate,  including  about  50  per  cent  of  American  capital,  which 

Planned  to  remodel  the  old  line  and  increase  the  service  facilities, 
he  property  consisted  of  about  7  miles  of  single  track,  extending 
from  the  suburb  of  El  Milagro  along  the  lake  front  through  the  city 
proper,  and  again  along  the  water  front  to  the  suburb  of  Los  Haticos. 
Six  new  cars  were  purchased,  old  cars  were  rebuilt,  and  about  $150,000 
had  been  spent  by  the  end  of  the  year  in  improvements  to  the  system, 
which  now  operates  on  a  10-minute  schedule. 

The  old  steam  tramway  line  to  Bella  vista  has  also  been  equipped 
with  electric  power.  This  is  a  separate  company,  capitalized  at 
400,000  bolivars  ($77,200),  with  shares  at  400  bolivars  ($77.20)  each, 
now  quoted  at  500  to  505  bolivars  ($96.50  to  $97.46). 

There  are  three  clubs — the  Alianza,  the  Comercio,  and  the  Cosmos. 
Nine  hotels  accommodate  the  traveler,  three  of  which  are  counted  the 
larger  ones,  namely,  the  Hotel  Los  Andes,  the  Del  Lago,  and  the 
Zuiia.  With  the  exception  of  a  few  desirable  and  cooler  rooms,  ac- 
commodations are  poor,  there  is  little  privacy,  and  the  food  served 
leaves  much  to  be  desired.  The  Hotel  Los  Lagos  is  usually  preferred, 
because  it  is  near  the  water  front  and  therefore  more  comfortable 
than  the  others,  as  it  receives  the  breeze  from  the  lake  at  times. 

The  wharf  and  warehouses  are  owned  by  the  Government  and  are 
being  reconstructed  and  improved.  (See  "Harbor  and  dock  im- 
provements," p.  198.) 

The  erection  of  the  towers  for  the  new  wireless  station  at  Mara- 
caibo has  been  completed  and  the  apparatus  installed.  The  station 
is  equipped  with  a  5-kilowatt  set  with  a  rotary  synchronous  spark 
system.  The  towers  are  50  meters  high  and  the  normal  sending  radius 
by  day  will  be  about  800  miles  and  by  night  about  1,600  miles. 


MARACAIBO   COMMERCIAL  DISTRICT.  189 

The  importance  of  Maracaibo  lies  in  the  fact  that  it  is  the  concen- 
tration point  for  all  the  export  and  import  trade  of  the  entire  Andean 
region,  comprising  the  States  of  Zulia,  Trujillo,  Merida,  and  Tachira, 
and  also  the  transfer  point  for  the  traffic  of  the  Cucuta  region  of 
Colombia.  Here  are  collected  all  the  export  products  of  the  whole 
lake  basin  and  the  surrounding  mountains,  and  here  goods  are  re- 
ceived to  be  reshipped  to  the  interior.  Maracaibo  is  the  commercial 
and  financial  center  of  the  entire  district. 

OTHER  TOWNS  IN  STATE  OF  ZUUA. 

While  most  of  the  settlements  around  the  lake  consist  of  a  few 
palm-leaf  huts  and  a  few  adobe  buildings  of  one  story,  or  houses  built 
on  piles  after  the  ancient  Indian  fashion,  there  are  several  towns  of 
importance.  Altagracia,  immediately  opposite  Maracaibo  on  the 
eastern  shore,  is  the  largest,  and  has  a  considerable  importance  on 
account  of  its  agricultural  products  and  its  fishing  fleet,  whose 
catches  are  sold  principally  in  the  capital.  Santa  Eita,  not  far  to  the 
south,  also  on  the  shore  of  the  lake,  is  in  the  midst  of  a  fine  goat- 
farming  district  and  also  possesses  extensive  coconut  plantations 
which  yield  a  considerable  profit. 

At  the  extreme  southeastern  comer  of  the  lake  there  is  a  town 
that  bears  a  famous  name  and  has  itself  been  of  note  in  Venezuelan 
colonial  times.  This  is  Gibraltar,  founded  in  1597  by  Liduena.  The 
region  is  now  being  developed  with  cane  plantations.  Cacao  and  to- 
bacco made  the  region  famous,  and  at  one  time  it  was  the  leading 
center  of  the  lake  region.  It  was  taken,  sacked,  and  leduced  to  ruins 
by  the  Motilones  Indians,  but  by  1666  it  was  again  so  flourishing  that 
tile  pirate  Henry  Morgan  considered  it  worth  taking.  Later,  the 
town,  which  had  again  been  rebuilt,  was  sacked  a  third  time  by 
Gramonte. 

San  Carlos  de  Zulia,  on  the  Escalante,  is  important  by  virtue  of  the 
through  traffic  between  the  "  haciendas  "  of  the  interior  and  the  lake. 
Like  other  river  towns  of  the  region,  it  is  unsigjitly,  very  unhealthful, 
and  not  progressive. 

For  population  and  revenue  Trujillo  stands  first  of  the  Andean 
States,  Tachira  second,  and  Merida  third,  though  the  last  mentioned 
is  the  largest  in  area. 

TOWNS  AND  ROUTES  IN  STATE  OF  TACHIRA. 

The  capital  of  the  State  of  Tachira  is  San  Cristobal,  founded  on 
the  left  bank  of  the  River  Torbes  in  1561.  Although,  in  approaching 
the  town,  the  traveler  who  does  not  trace  his  route  on  a  map  would 
consider  himself  still  on  the  Maracaibo  side  of  the  watershed,  the 
waters  of  the  Torbes  flow  around  the  mountains  behind  the  town  to 
join  those  of  the  Uribante,  a  subtributary  of  the  Orinoco  via  the 
Apure  River  in  the  State  of  Apure.  The  main  watershed  of  the 
Venezuelan  Andes  at  this  point  is  probably  less  than  4,000  feet  above 
sea  level,  and  San  Cristobal  is  well  situated  in  respect  to  traffic  from 
the  western  llanos  to  Zulia  or  Colombia.  The  town  is  well  located 
in  a  valley  partly  surrounded  by  the  river,  which,  at  times  of  flood, 
makes  communication  difficult. 

From  San  Cristobal  roads  lead  to  Sarf  Antonio  on  the  Colombian 
frontiers ;  to  the  llanos  down  the  Torbes  and  Quinimari  Valleys ;  to 


190     VENEZUELA  :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Uraca,  the  terminus  of  the  Tachira  Railway ;  and  to  Merida,  via  La 
Grita,  Tovar,  and  Bailadores.  Fifteen  miles  down  the  valley  is  the 
town  of  Rubio,  where  there  are  some  of  the  largest  and  best  coflfee 
plantations  of  the  country,  equipped  with  modern  machinery  for 
cleaning  the  beans.  Coal  and  (it  is  said)  silver  are  found  in  the 
vicinity,  and  the  Tachira  Petroleum  Co.,  a  local  concern,  has  for 
many  years  supplied  small  quantities  of  illuminating  oil  from  oil 
seepages  found  near  by.     (See  p.  101.) 

A  good  deal  of  the  produce  of  these  parts  is  shipped  through  Co- 
lombia  in  bond  to  avoid  the  more  difficult  route  overland  to  the  end 
of  the  Tachira  Railway  at  La  Uraca — the  traffic  passing  through  the 
frontier  town  of  San  Antonio,  on  the  Tachira  River,  across  from  the 
Colombian  town  of  Frontera,  which  is  connected  with  Cucuta  by  a 
branch  of  the  railway  that  runs  down  to  the  Zulia  River,  which 
flows  into  the  more  navigable  Catatumbo.  In  former  times  cacao^ 
indigo,  and  coffee  were  grown  in  the  neighborhood,  but  latterly,  with 
the  growth  and  importance  of  San  Cristobal  and  Cucuta,  the  lands 
are  more  used  for  pasturage,  though  some  sugar  cane  is  planted. 

The  other  main  export  route  is  from  San  Cristobal,  via  the  towns 
of  Lobatera  and  Colon,  to  the  end  of  the  Tachira  Railway  at  La 
Uraca.  Lobatera  is  about  3,000  feet  above  sea  level,  San  Cristobal 
being  at  an  elevation  of  2,722  feet.  Colon  is  a  point  on  the  road  from 
Uraca  where  there  are  several  "  hoteles,"  La  Uraca  being  about  10 
miles  distant,  on  the  edge  of  the  hot  lands  where  cacao  is  the  principal 
product. 

Both  the  Encontrados  road  and  that  to  Merida  lead  through  the 
small  town  of  Tariba,  about  3  miles  east  of  San  Cristobal,  on  the 
north  bank  of  the  Torbes  River.  The  flooded  river  during  the  rainy 
season  is  a  great  hindrance  to  traffic,  but  new  bridges  are  being  built 
and  better  highways  constructed. 

La  Grita  lies  a  day's  ride  (about  40  miles  by  trail)  up  the  Torbes 
Valley  and  across  the  pass  ("pdramo")  called  El  Zumbador,  8,000 
feet  high,  where  a  trail  branches  off  to  the  east  toward  Pregonero, 
capital  of  the  Uribante  district,  located  in  a  valley  whose  products 
range  from  potatoes  and  wheat  at  the  top  to  cacao  and  sugar  at  the 
bottom,  with  coffee  on  the  intermediate  levels  of  the  valleys.  On  the 
eastern  side  of  the  range  here  are  also  the  principal  cattle  ranges  that 
supply  most  of  the  beef  consumed  in  the  Andean  re^on.  The  district 
needs  roads  and  at  present  is  rather  isolated  and  little  visited. 

Vargas,  or  El  Cobre,  is  a  small  villa^  on  the  northern,  or  western, 
side  of  the  pass,  its  old  name  being  said  to  refer  to  copper  mines  in 
the  vicinity  that  were  worked  in  colonial  times  by  the  Spaniards. 
Forty  miles  is  the  estimated  distance  from  Tariba  to  La  Grita,  situ- 
ated on  high  gravel  mesa,  or  tableland.  The  town  was  founded  in 
1576,  following  the  policy  of  the  Spanish  colonizers  of  locating  back 
from  the  coast  in  the  more  healthful  altitudes,  where  they  were  also 
comparatively  free  from  piratical  invasion.  It  has  suffered  fre- 
quently from  earthquake  shocks.  Its  products  include  wheat,  wool, 
cotton,  and  tobacco  from  the  surrounding  country,  and  it  is,  in  a 
way,  a  local  or  district  market  center  for  the  region.  The  elevation 
of  6,000  feet  above  sea  level  makes  it  one  of  the  most  healthful  places 
in  Venezuela  and  allows  the  cultivation  of  temperate-zone  fruits  sudi 


MABAGAIBO  COMMERCIAL  DISTRICT.  191 

as  apples,  apricots,  peaches,  and  the  like,  so  seldom  found  in  Vene- 
zuela. 

A  few  miles  down  the  river  toward  Uraca  is  Seboruco,  with  its 
ancient  copper  mines,  worked  with  Indian  slave  labor  by  the  Span- 
iards but  not  known  to  have  been  operated  in  modem  times  on  a  com- 
mercial scale. 

TOWNS  AND  ROUTES  IN  STATE  OF  MERIDA. 

The  State  of  Merida  occupies  the  center  of  the  Venezuelan  Andean 
region  but  includes  within  its  boundaries  the  highest  peaks  and  at 
the  same  time  the  hottest  valleys  in  the  country.  The  creat  variety 
of  climate  naturally  provides  a  wide  range  of  products,  out  the  diffi- 
culties of  the  topography,  combined  with  a  general  lack  of  good 
roads,  with  the  resulting  high  cost  of  transportation,  have  kept  the 
country  largely  undeveloped. 

Merida  was  founded  in  1642.  It  is  the  seat  of  the  Bishop  of  the 
Andes.  The  city  is  built  on  a  high  plateau  very  much  like  that  of 
La  Grita,  between  the  Rivers  M^cujun  and  Chama,  and  above  to 
the  east  are  the  snow-capped  peaks  of  the  Sierra  Nevada  de  Merida, 
while  a  lower  but  equally  steep  range  shuts  off  the  valley  to  the  west* 
The  perpetual  snow  line  of  the  mountains  is  15,000  feet  above  sea 
level.  The  elevation  of  the  place  is  5,415  feet  above  sea  level,  and 
the  town  has  often  suffered  from  earthquakes,  being  rebuilt,  however, 
from  time  to  time.  The  fertile  lands  of  the  valley  of  the  Chama 
furnish  the  principal  wealth  of  this  neighborhood.  In  this  valley 
lies  Ejido,  but  beyond  Ejido  the  valley  becomes  more  barren  toward 
Lagunillas,  famous  for  its  mineral  lake,  which  contains  large  quan- 
tities of  trona,  called  "  urao."  Two  or  three  miles  below  Lagunillas 
is  one  of  the  worst  bits  of  road  in  the  Andes,  where  the  Chama  is 
crossed  over  the  famous  Puente  Keal,  a  wooden  bridge.  Beyond 
Estanques  the  main  valley  narrows  down  to  a  gorge,  and  the  road 
climbs  over  the  divide  to  the  valley  of  the  Mucuties,  with  its  cacao 
plantations.    Here  two  roads  divide,  one  going  down  to  the  Zulia 

Slains  via  the  Chama  Valley  and  El  Vigia,  and  the  other  up  the  River 
[ucuties  to  Tovar. 

Tovar  forms  a  local  market  center  for  the  produce  of  the  coffee  and 
cacao  plantations  of  the  valley,  but  beyond  it  Bailadores  marks  the 
lower  limit  of  the  wheat  fields  that  one  finds  along  the  top  of  the 
Mucuties  ravine.  Outside  of  the  capital  Tovar  is  the  most  impor- 
tant trading  place,  and  nfearly  all  banks  and  business  houses  of 
Maracaibo  mamtain  branches  or  agencies  there. 

To  the  north  of  Merida  the  Chama  Valley  has  some  coffee  planta- 
tions, but  the  main  highway  toward  the  north  soon  leaves  the  valley 
and  climbs  to  Mucuchies,  the  highest  town  in  Venezuela,  with  an 
elevation  of  10,000  feet  above  sea  level ;  the  region  is  one  of  pasture 
land  and  potatoes,  the  elevation  being  too  high  even  for  wheat. 

To  reach  Trujillo  over  this  mad  one  must  cross  on  mule  back  the 
famous  Mucuchies  or  Timotes  Pass,  which  is  14,500  feet  high.  In 
the  rainy  season  snow  is  often  found  on  this  pass  and  travel  is  at- 
tended with  cold  and  great  discomfort.  At  Timotes,  the  first  town 
on  the  north  side  of  the  pass,  tropical  plants  again  make  their  appear- 
ance, but  the  valley  is  cniefly  used  for  the  grazing  of  cattle. 


192     VENEZUELA :   A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

TOWNS  AND  ROUTES  IN  STATE  OF  TRUJILLO.  ' 

Trujillo,  founded  in  1556,  at  an  elevation  of  2,640  feet,  has  a  semi- 
tropical  climate,  and  its  wealth  consists  of  coffee  and  sugar-cane 
Plantations  in  the  valley  in  which  the  city  is  situated.  On  his  Lake 
[aracaibo  raid  Gramonte  took  the  place  in  1678.  The  country  is 
very  difficult  on  account  of  the  river  gorges,  and  fords  during  floods 
make  communication  uncertain  over  the  main  route  to  Motatan,  the 
present  terminus  of  the  La  Ceiba  Railway,  distant  25  miles  from  the 
capital.  Another  road  goes  by  the  way  oi  V  alera,  an  important  town 
on  the  road  to  Merida. 

Although  Trujillo  is  the  capital  of  the  State  and  Motatan  the  pres- 
ent terminus  of  the  La  Ceiba  Railway,  it  is  in  Valera  that  the  most 
important  commerce  of  the  State  is  carried  on — a  fact  due  mainly  to 
the  more  advantageous  position  of  the  town  as  regards  its  surround- 
ing fertile  valleys  of  the  foothills.  This  is  the  most  developed  region 
of  the  State,  and  most  of  the  other  products  of  the  interior  pass 
through  the  hands  of  the  merchants  of  Valera  on  their  way  to  Mara- 
caibo  for  export.  The  town  has  a  population  of  about  10,000,  and 
recent  oil-drilling  activities  in  the  neighborhood  have  added  to  its 
trade  and  importance.  Escuque  is  famous  for  its  good  coffee,  and 
Betijoque  is  now  the  scene  of  active  drilling  operations  for  petroleum. 
Carache  is  a  small  village  farther  north  and  near  the  end  of  the 
Andean  region  proper,  situated  in  a  dry  valley  little  used  except  for 
goat  farming  and  a  few  cattle,  but  the  hills  and  valleys  of  the  sur- 
rounding country  grow  wheat,  sugar,  and  coffee.  From  the  bare  hills 
above  the  town  may  be  seen  the  expanse  of  Lake  Maracaibo  on  a  clear 
dav. 

Northwest  of  Carache  there  is  an  almost  unexplored  area,  extend- 
ing down  the  flanks  of  the  range  called  El  Empalado  to  the  lake  shore: 
Divi-divi  exists  in  the  forests. 

ECONOMIC  POSSIBILITIES  OF  ANDBAN  STATES. 

The  entire  Andean  region  of  the  three  States  mentioned  has  possi- 
bilities in  the  production  of  coffee  and  cacao  on  the  intermediate  levels 
of  the  mountains  in  the  moist  vallqys,  cotton  in  the  small,  hot  valleys 
lower  down,  and  wheat  and  fruits  on  the  upper  levels ;  but  all  is  de- 
pendent upon  transportation,  and  the  present  program  of  the  various 
States  in  road  building  will  lead  to  extensive  development  in  the 
future.  As  it  is  to-day,  the  Andean  region  furnishes  50  per  cent  of 
the  coffee  of  Venezuela,  the  annual  normal  production  being  500,000 
bags.  In  their  more  barren  and  difficult  country  the  people  of  this 
mountainous  region  have  had  to  work  harder  for  a  living  than  their 
compatriots  of  the  coast  and  lowlands.  Descendants  of  the  old 
Spanish  "  conquistadores "  and  the  mountain  Indians,  they  form  a 
hardy  race. 

CHARACTERISTICS  OF  INHABITANTS. 

The  racial  mixture  of  the  Negro  does  not  exist  in  the  Andean 
region  of  Venezuela,  as  the  Negroes  of  the  coast  do  not  penetrate  into 
the  hijgh  mountains,  preferring  to  remain  in  the  hot  lanas  of  the  coast 
and  river  valleys.  The  Lake  maracaibo  region  has  a  predominating 
strain  of  Indian  blood,  and  the  Goajira  Indian  population  of  the 
northwestern  part  is  being  slowly  absorbed  in  and  around  the  city 


MARACAIBO   COMMERCIAL,  DISTRICT.  193 

of  Maracaibo.  These  Indians  and  remnants  of  other  tribes  have 
always  lived  along  the  shores  of  the  lake.  In  the  southern  part  are 
found  the  famous  Motilones  Indians,  a  warlike  tribe  ran^ng  over  a 
great  territory  of  Venezuela  and  Colombia  and  still  causing  trouble 
in  the  outlying  districts  recently  penetrated  by  oil  companies  in 
exploration  and  drilling  work.  In  the  higher  mountains  there  were 
numerous  tribes  of  Indians  whose  blood  was  mingled  with  that  of 
the  Spaniards,  the  resulting  mixture  being  the  type  of  " Andino  "  of 
to-day.*  The  chief  labor  supply  of  the  new  sugar  plantations  of  the 
southern  lake  district  is  from  the  Goajiras. 

In  the  cities  and  towns  throughout  the  entire  region  are  found 
numerous  descendants  of  the  old  Spanish  colonial  xamilies,  which 
to-day  represent  the  professions  and  are  the  bankers  and  merchants. 
These  people  travel  to  Europe  and  the  United  States,  many  of  them 
have  been  educated  abroad,  and  in  their  homes  is  found  every  modem 
<»mf  ort  and  convenience.  This  element  represents  about  15  per  cent 
of  the  total  population. 

LIVING  CONDITIONS— MODERN  IMPROVEMENTS. 

Although  settled  by  the  Spaniards  before  any  permanent  settle- 
ments were  made  in  the  United  States,  the  towns  of  the  Andean 
region  of  Venezuela  have  remained  isolated  on  account  of  their  great 
distance  from  the  coast  and  the  difficulties  of  the  ground  to  be  trav- 
ersed. The  better  houses  and  buildings  are  of  adobe  or  kiln-baked 
soft  brick,  plastered  and  painted  on  the  outside.  Streets  are  all 
narrow  and  paved  with  cobblestones.  Inadequate  water  supplies 
have  been  brought  down  to  the  towns  in  crude  aqueducts  and  ditches, 
with  little  attention  paid  to  modem  systems  of  drainage  and  sewer- 
age. The  first  modern  improvements  have  been  the  erection  and 
installation  of  electric  lighting  plants,  which  are  now  found  in 
Maracaibo,  TrujiUo,  Valera,  Merida,  Tovar,  San  Cristobal,  Rubio. 
and  San  Antonio.  Ice  plants  are  found  in  Maracaibo,  Valera,  and 
Cucuta  (Colombia).  Maracaibo  and  Cucuta  have  electric  street 
railways.    The  same  two  cities  have  modem  breweries. 

TRAVEL  CONDITIONS. 

The  main  travel  routes  for  the  interior — to  TrujiUo,  Merida,  San 
Cristobal,  and  Cucuta — all  begin  with  lake-steamer  transportation 
at  the  port  of  Maracaibo.     The  routes  are : 

For  Trujillo* — To  La  Ceiba,  on  tlie  southeastern  shore  of  the  lake,  about  90 
miles  by  water  from  Maracaibo ;  thence  over  the  La  Ceiba  Railway  to  Motatan ; 
thence  by  road. 

For  Merida, — To  Santa  Barbara,  on  the  Escalante  River,  about  120  miles 
south  of  Maracaibo,  by  steamer ;  thence  over  the  Santa  Barbara-E]l  Vigia  Rail- 
way ;  thence  by  trail. 

For  San  Cristobal  and  Cucuta. — ^To  Encontrados,  on  the  Catatumbo  River. 
About  140  miles  south  and  west  of  Maracaibo ;  thence  over  the  Tachira  Railway 
to  La  Uraca,  for  San  Cristobal,  and  thence  overland  to  Cucuta,  or  on  up  the 
Zulia  River  to  Puerto  Villamizar,  and  by  railway  into  Cucuta. 

From  La  Ceiba  the  running  time  over  the  railway  to  Motatan  is 
four  hours,  but  from  there  it  takes  seven  hours  of  hard  riding  to 
reach  TrujiUo,  via  Valera  or  over  the  upper  trail.    Pack  trains  re- 

79747 ''-H22 14 


194     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

quire  three  or  four  days  to  make  the  same  distance  when  loaded  with 
coffee,  going  down  to  the  railhead  at  Motatan.  From  Trujillo  the 
tri{)  can  be  made  on  mule  back  through  the  length  of  the  Andean 
region,  via  Merida  and  San  Cristobal  and  over  to  Cucuta,  in  Colom- 
bia. Over  the  shortest  possible  road  the  trip  from  Trujillo  to  Cu- 
cuta can  be  made  on  miUe  l3ack  in  about  10  days,  without  stopping 
for  a  day  in  any  of  the  towns  and  with  the  best  saddle  and  pack- 
animal  stock  to  be  procured  in  the  region.  It  is  often  necessary  to 
travel  from  10  to  12  hours  on  account  of  the  lack  of  accommodations 
for  the  night.  The  small  inns,  called  ^'  posadas,"  are  not  made  for 
comfort,  and  the  traveler  by  this  mountain  route  will  do  well  to 
carry  his  own  camp  bed  and  articles  of  food.  Food  along  the  way 
is  wholesome  and  plentiful,  but  of  the  plainest  sort  and  poorly 
prepared. 

There  are  three  railways  in  the  district  of  Maracaibo.  leading 
from  lake  or  river  points  for  lake  steamers  to  the  foot  of  tne  moun- 
tains in  the  direction  of  the  capitals  of  the  States  of  Trujillo, 
Merida,  and  Tachira.  These  three  lines  have  not  as  yet  been  con- 
nected with  the  capitals,  because  of  increasing  diflSculty  and  cost  of 
construction  as  the  higher  levels  and  more  broken  ground  have  been 
reached  in  the  work  of  construction. 

The  Ferrocarril  de  La  Ceiba,  alreadj^  mentioned,  has  about  60 
miles  of  track,  ending  at  Motatan,  20  miles  from  the  capital,  Tru- 
jillo. It  is  owned  by  a  private  corporation.  A  cart  road  runs  from 
Motatan  to  Trujillo,  with  a  branch  running  to  Valera,  which  is  only 
6  miles  by  trail  from  the  rail  terminus  at  Motatan.  There  are  no 
other  wagon  roads  in  the  State. 

The  Ferrocarril  de  Santa  Barbara,  owned  by  the  Venezuelan  Grov- 
ernment,  runs  from  the  river  port  of  Santa  Barbara  to  El  Vigia,  60 
kilometers  (1  kilometer=0.62  mile).  Pack  trains  take  five  diays  for 
the  trip  from  there  over  the  trail  to  the  capital,  Merida,  but  travel- 
ers can  make  the  trip  in  two  hard  days'  ride  on  mule  back.  Dis- 
tances in  the  mountains  can  not  be  measured  by  actual  mileage,  but 
are  calculated  by  the  number  of  hours  or  days  of  riding,  varying 
according  to  the  nature  of  the  country  covered.  The  rou^est  coun- 
try in  the  entire  route  is  traversed  between  El  Vigia  and  Merida, 
via  La^unillas.  Some  travelers  prefer  the  route  to  Merida  from 
Maracaibo  via  Valera,  from  which  place  it  takes  three  days  of  hard 
riding  to  reach  Merida ;  the  route  is  higher  and  less  subject  to  inter- 
ruptions by  swollen  rivers  and  gorges  and  is  therefore  preferred  in 
the  rainy  season.  The  new  wagon  (cart)  road  has  been  recently 
completed  from  Merida  as  far  as  Lagunillas  by  the  State  govern- 
ment  as  part  of  the  new  and  energetic  road-buildins  pro-am  of 
the  entire  country.  This  road  will  l)e  completed  as  far  as  the  end 
of  the  railway  in  a,bout  two  years  more,  according  to  present  esti- 
mates,  which  include  the  purchase  and  installation  of  a  number  of 
large  steel  bridges. 

The  Ferrocarril  de  Tachira,  owned  by  a  private  corporation,  runs 
from  Encontrados,  the  river  steamer  port  on  the  River  Catatumbo, 
to  Estacion  Tachira,  120  kilometers.  There  is  a  carf  road  from 
Estacion  Tachira  to  San  Cristobal,  via  Colon  and  Tariba,  with  a 
branch  to  the  Colombian  frontier  at  Urena.    Just  across  the  bound- 


MARACAIBO   COMMERCIAL  DISTRICT.  195 

ary  from  Urena  in  Colombia  is  the  railway  station  of  Escobal,  about 
30  minutes  by  train  from  Cucuta.  This  is  the  route  usually  taken 
by  travelers  between  Maracaibo  and  Cucuta.  The  cart  road  has  re- 
cently been  put  into  repair,  and  automobile  service  can  be  obtained 
by  telegraphing  ahead  for  a  car  from  Cucuta,  the  run  taking  about 
seven  hours. 

The  Great  Western  Highway  is  now  under  construction  from  Ca- 
racas to  San  Cristobal,  via  Valencia,  San  Carlos,  Guanare,  Barinas, 
and  San  Miguel,  through  the  pass  or  the  Uribante  River  and  across 
the  southern  watershed.  The  Caracas- Valencia  section  (an  old  road) 
has  been  repaired  and  put  into  better  shape,  as  has  also  that  from 
Valencia  to  San  Carlos  on  the  plains.  From  here  the  work  is  ac- 
tively progressing  in  sections,  construction  having  been  started  from 
the  oan  Cristobal  end  in  1918,  when  10  miles  were  built.  This  road 
has  now  reached  kilometer  27  from  San  Antonio  de  Caparo  in  the 
State  of  Tachira,  and  work  is  being  carried  forward  at  different 
points  where  heavy  fills  or  banks  have  to  be  made  and  bridges  in- 
stalled. 

The  other  means  of  communication  are  the  mule  trails.  To  con- 
vey some  idea  of  the  great  difficulties  encountered,  it  may  be  stated 
that  the  machinery  for  the  electric  light  plant  of  Merida  had  to  be 
carried  by  100  peons  from  the  railhead,  50  carrying  and  50  resting, 
the  journey  consuming  10  months'  time.  Riding  animals  make  the 
distance  in  three  days. 

FREIGHT  COSTS. 

Freight  rates  in  bolivars  (1  bolivar=$0.193)  on  each  bag  of  coffee 
(which  is  the  staple  product  of  this  region)  from  the  centers  of  pro- 
duction to  the  railway  shipping  points  are  as  follows : 

Bolivars. 

Rubio  to  Estadon  Tachira : 6  to  8 

San  Cristobal  to  Estadon  Tachira 1_  4  to  5 

Merida  to  Los  Canltos : 7  to  9 

Tovar  to  La  Uraca 6  to  7J 

Torondoy  to  Bobures 3  to  4 

Trujillo  to  Motatan 4  to  5 

Bocono  to  Motatan , 7  to  9 

Valera  to  Motatan ^ 2  to  3        > 

The  rates  from  shipping  points  of  the  railways  to  Maracaibo,  in- 
cluding steamer  freight  costs,  cartage,  commissions,  and  other  ez« 
penses,  are  as  follows : 

Boliyars. 

Estaclon  Tachira  (La  Uraca)  to  Maracaibo 8. 05 

Puerto  VlUamlzar  (Colombia)  to  Maracaibo 10.50 

Motatan  to  Maracaibo 6.20 

El  Vigia  to  Maracaibo , 4. 70 

Bobures  (by  steamer)  to  Maracaibo '. 1.40 

The  ratfe  from  Cucuta  to  Puerto  Villamizar  by  railway  (this  being 
the  route  over  which  all  of  the  coffee  and  cacao  from  Cucuta  is 
shipped  to  Maracaibo,  via  the  Eivers  Zulia  and  Catatumbo)  is  $1.08 
per  sack.  Freight  either  way  has  to  be  transferred  at  Encontrados, 
as  the  steamers  operating  on  the  Zulia  are  of  smaller  size  and  draft 
than  those  from  Maracaibo  up  the  Catatumbo  to  Encontrados.  The 
above  rates  are  for  bags  weighing  46  kilos  (1  kilo==2.2046  pounds) 


196    \^nezuela:  a  commercial  and  industrial  handbook. 

for  Merida  and  Trujillo  coffees;  58  kilos  for  Tachira  coffees,  and  60 
kilos  for  Cucuta  coffees. 

EFFECT  OF  ROAD  BUILDING  ON  MARKETS  FOR  GOODS. 

In  recent  years,  under  the  administration  of  Gen.  Gomez,  interest 
has  been  manifested  in  road  building  through  these  mountains  and 
rough  regions.  Soads  are  actually  being  built  in  several  places  over 
important  trade  routes ;  but  progress  has  been  slow  on  account  of 
the  difficulties  presented  by  the  mo.untainous  nature  of  the  country, 
the  streams,  etc.,  the  prevailing  lack  of  sufficient  funds,  and  the 
limited  labor  supply  available.  Koad-making  machinery  is  not  used, 
principally  because  of  the  nature  of  the  ground  and  the  cost  of  such 
machinery  laid  down  on  the  work,  but  also  on  account  of  the  general 
lack  of  knowledge  concerning  it.  Another  reason  is  the  constantly 
changing  character  of  the  ground  to  be  covered,  the  nature  of  the 
formations  encountered,  etc.,  there  being  places  where  machines 
would  not  meet  the  requirements  of  the  work.  A  great  deal  of  rock 
work  has  to  be  done,  and  dynamite  is  used  in  considerable  quantities. 
After  the  completion  of  the  roads  from  the  Andean  capitals  down  to 
the  present  rail  points,  there  will  be  an  increased  market  for  auto- 
mobiles and  light  motor  trucks,  as  well  as  for  coffee  shelling  and 
cleaning  machinery,  sugar-cane  machinery,  and  other  machinery  on 
which  3freight  will  have  to  become  reduced  to  a  point  where  it  will 
be  economically  possible  to  introduce  it. 

However,  the  so-called  highways  are  not  such  in  the  sense  in 
which  the  word  is  applied  to  roads  in  the  United  States.  In  Vene- 
zuela they  are  really  narrow  cart  roads  with  maximum  grades  of 
€  to  9  per  cent,  and  sharp  turns;  and  the  route  always  follows  the 
line  of  least  resistance  along  the  contour  of  the  mountain  sides.  With 
the  specifications  of  construction  now  being  used  it  is  not  thought 
that  the  automobile  truck  of  large  or  even  small  capacity  will  be  used 
for  freight  transportation  in  competition  ^ith  the  common  two- 
wheeled  one-mule  cart  of  the  country,  which,  in  the  Caracas  and 
Puerto  Cabello- Valencia  districts,  competes  with  the  existing  rail- 
ways, even  on  long  hauls  like  that  between  Caracas  and  Valencia. 

SALESMEN'S  ROUTES. 

The  usual  thing  has  been  for  salesmen  from  abroad  to  transfer  at 
Curasao  from  the  ocean  steamer  (proceeding  either  east  or  west 
along  the  Caribbean  coast)  to  the  smaller  steamers  that  run  to  Mara- 
caibo,  which  is  the  center  of  the  district  and  the  place  where  most 
of  the  goods  and  supplies  of  the  interior  centers  are  purchased  from 
the  importing  wholesalers  established  there.  However,  there  are 
a  few  firms  that  import  direct,  principally  through  export  commis- 
sion houses,  and  most  salesmen  visit  Cucuta,  either  coming  back  to 
Maracaibo  for  ocean  transportation  east  or  west,  via  Curagao^  or 
continuing  on  overland  into  Colombia  for  upper  Magdalena  River 
points.  The  route  would  depend  entirely  upon  the  nature  of  the 
business-^that  is,  whether  it  is  work  for  an  export  commission  house, 
introductory  work  for  manufacturers  direct,  or  the  handling  of  some 
special  line,  such,  for  instance,  as  drugs  and  medicines. 


MARACAIBO   COMMERCIAL  DISTRICT.  197 

THE  PORT  OF  MARACAIBO. 

OCEAN  STEAMSHIP  SERVICE. 

Situated  on  a  wide  bay  on  the  west  shore  of  the  wide  channel  con- 
necting the  lake  proper  with  the  Gulf  of  Venezuela  and  the  Carib- 
bean Sea,  the  port  of  Maracaibo  is  some  20  miles  from  the  entrance  to 
the  channel  and  about  240  nautical  miles  by  water  from  the  transship- 
ping port  of  Willemstad,  Curasao,  Dutch  West  Indies,  with  which 
it  is  connected  by  regular  sailings  of  two  steamers  of  the  Red  "  D  " 
Line  of  steamers,  one  steamer  chartered  by  the  Caribbean  Steamship 
Co.,  of  New  York,  and  one  steamer  of  the  Royal  Dutch  West  India 
Mail — all  of  which  connect  with  the  ocean-going  vessels  of  their  re- 
spective companies  at  Willemstad,  for  transfer  of  cargo  and  pas- 
sengers. Another  small  600-ton  steamer  of  the  Red  "  D  "  Line  does 
not  proceed  to  New  York,  but  calls  only  at  Willemstad  and  La 
Guaira,  returning  to  Maracaibo  as  a  regular  route.  Communication 
with  Europe  is  effected  through  transshipment  to  vessels  of  the 
British,  Dutch,  Spanish,  French,  and  Italian  companies  at  Curasao 
(Willemstad).  During  the  war  the  New  Orleans  &  South  American 
Steamship  Co.  (W.  R.  Grace  &  Co.)  also  operated  a  small  vessel  be- 
tween other  Venezuelan  ports,  Curagao,  and  Maracaibo,  transship- 
ments being  made  to  New  Orleans. 

^  There  is  also  the  service  of  the  Venezuelan  Navigation  Co.,  a  na- 
tional company  operating  a  fleet  of  small  steamers  in  the  coastwise 
trade  of  Venezuela  and  connecting  all  ports  of  the  country,  including 
that  of  Ciudad  Bolivar  (up  the  Orinoco)  via  Port  of  Spain,  Trini- 
dad, British  West  Indies.  Three  steamers,  the  Manzana7'e8^  of  1,200 
tons,  the  GnaHco^  of  900  tons,  and  the  Venezuela^  of  950  tons  (an  old 
side- wheel  boat  now  laid  up  in  Puerto  Cabello  for  repairs),  ordi- 
narily operate  in  the  coastwise  trade,  making  Maracaibo  a  regular 
port  of  call,  though  no  definite  schedule  has  been  maintained  during 
the  last  year  on  account  of  frequent  repairs  to  the  boats  of  the  fleet. 

LAKE  BOATS. 

The  lake  fleet  consists  of  four  shallow-draft,  stern  and  side  wheel 
vessels,  as  follows:  Progreso^  of  300  tons;  Nuevo  Mara^  150  tons; 
Nuevo  Fenix^  150  tons;  and  Villamizar^  150  tons.  Weekly  round 
trips  are  made  to  and  from  the  following  lake  and  river  ports :  La 
Ceiba,  to  connect  with  railway  to  Motatan,  for  Trujillo;  Santa  Bar- 
bara, to  connect  with  railway  to  El  Vigia,  for  Merida;  to  Encon- 
trados,  to  connect  with  railway  to  La  Uraca,  for  San  Cristobal.  Con- 
nection  is  also  made  here  for  the  steamers  of  the  company  operating 
on  the  Zulia  River  from  Encontrados  to  Puerto  Villamizar. 

The  equipment  of  the  Venezuelan  Navigation  Co.  also  comprises 
a  dredge  for  port  and  river-channel  work,  a  40-ton  tugboat,  and  a 
marine  railway  and  repair  shop  in  Maracaibo. 

Lake  and  river  ports  smaller  and  less  important  than  those  men- 
tioned are  made  en  route — schedules  varying  according  to  freight 
and  passenger  traffic  offerings.  The  trip  irom  Maracaibo  to  Encon- 
trados often  takes  three  or  four  days,  and  even  much  longer  during 
the  season  of  low  water  in  the  river,  as  there  is  always  the  danger  of 
running  aground  and  being  held  up. 


198     VENEZUELA:  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 

A  number  of  sailing  schooners  and  sloops  carry  on  an  intermittent 
traffic  with  all  lake  and  river  points  also,  and  schooners  from  Curasao 
cruise  around  most  of  the  lake  in  search  of  trading  cargoes  of  conee, 
cacao,  hides  and  skins,  divi-divi,  etc. 

HABBOR  AND  DOCK  IMPBOVEMENTS. 

Wharves  and  warehouses  at  Maracaibo  are  owned  by  the  Vene- 
zuelan Government.  The  old  dock  is  now  undergoing  extensive  re- 
pairs. The  old  piling  is  being  replaced  with  concrete  piling  rein- 
forced  with  old  steel  rails,  and  wharf  accommodations  are  being 
made  for  two  large  vessels,  besides  the  arrangements  for  the  coast- 
ing and  lake  traffic  of  the  schooners. 

New  and  old  warehouses  along  the  wharf  can  accommodate  about 
8,000  tons  of  general  merchandise,  and  the  Government  is  planning 
to  increase  greatly  this  storage  capacity  in  view  of  the  large  business 
in  transshipment  of  goods  to  and  from  the  interior  centers  and 
Cucuta  in  Colombia. 

COASTWISE  TBAFFIC  OF  MARACAIBO. 

Goods,  in  coastwise  traffic,  to  the  amount  of  98,412,694  bolivars 
($18,993,650)  entered  the  port  during  1919.  These  figures  include 
the  value  of  all  the  products  concentrated  at  the  port  from  the  en- 
tire lake  and  river  regions  which  communicate  with  the  interior. 
Coffee  forms  more  than  half  of  the  total,  amounting  in  1919  to 
59,170,999  bolivars  ($11,420,003).  Other  products  from  the  interior 
were :  Sugar,  1,878,237  bolivars  ($362,500) ;  hides,  2,399,666  bolivars 
($463,136);  and  "papelon"  (brown  sugar),  1,387,298  bolivars 
($267,749). 

The  total  amount  of  foreign  merchandise  coming  to  Maracaibo  by 
coast  traffic  from  La  Guaira  and  Puerto  Cabello  is  valued  ordinarily 
at  $750,000  to  $1,000,000.  Among  the  chief  domestic  products 
shipped  into  Maracaibo  in  1919  were  cigarettes  and  cigars,  amount- 
ing to  2,523,129  bolivars  ($486,964). 

Export  coastwise  traffic  of  Maracaibo  in  1919  was  valued  at  47,786,- 
361  bolivars  ($9,222,768).  The  principal  items  in  the  outgoing  traffic 
with  the  various  districts  of  western  Venezuela  in  1919  were:  Im- 
ported textile  goods,  2,519,956  bolivars  ($486,352) ;  hardware,  5,720,- 
956  bolivars  ($1,104,145) ;  general  merchandise,  other  than  textiles, 
7,656,583  bolivars  ($1,477,721) ;  coined  money,  4,653,434  bolivars 
($898,113) ;  cigars  and  cigarettes,  560,915  bolivars  ($108,257) ;  alco- 
holic drinks,  831,818  bolivars  ($160,541)  ;  wheat  flour,  237,837  boli- 
vars ($45,903)  ;  machinery,  543,338  bolivars  ($104,864).  The  princi- 
pal item  of  export  to  eastern  domestic  ports  consisted  of  coffee, 
amounting  to  4,072,738  kilos  (1  kilo=2.2046  pounds),  valued  at 
7,249,579  bolivars  ($1,399,169). 

The  trade  of  Maracaibo  with  foreign  countries  is  discussed  fur- 
ther along  in  this  chapter  (see  p.  227). 

CUCUTA,  COLOMBIA,  AND  ITS  TRADE  WITH  MARACAIBO. 

Cucuta,  in  Colombia,  is  one  of  the  oldest  of  the  interior  cities  of 
this  region  and  was  the  capital  of  the  united  Colombia  and  Vene- 
zuela from  the  time  of  the  independence  in  1821  until  1830,  when 
Venezuela  separated  from  the  union  and  became  an  independent  re- 


MABACAIBO   COMMERCIAL  DISTRICT.  199 

public.  Cucuta  is  beautifully  situated  in  a  broad  valley,  surrounded 
by  mountains  on  all  sides.  The  present  population  is  24,000,  not  in- 
cluding the  small  neighboring  towns  of  xtosario,  Salazar,  San  Luis, 
and  l^antiago,  situated  in  the  immediate  vicinity.  The  valley  of 
Cucuta  is  onl^  about  ^00  feet  above  sea  level,  and  the  place  is  much 
warmer  in  clmiate  than  San  Cristobal  in  Venezuela.  The  city  was 
entirely  destroyed  by  an  earthquake  May  18, 1876,  and  the  new  town 
looks  more  modern,  with  broad  paved  streets,  lined  with  trees.  Its 
public  buildings  have  no  ecjual  in  the  entire  district. 

Cucuta  is  only  a  few  miles  from  the  international  boundary  line 
with  Venezuela  and  has  a  railway,  the  Ferrocarril  de  la  Frontera, 
which  is  owned  by  the  city  and  leased  to  the  Cucuta  Railway  Co., 
and  which  runs  from  Cucuta  to  the  station  of  Frontera,  in  Colombia, 
opposite  the  Venezuelan  town  of  San  Antonio.  The  passenger 
traffic  with  Venezuela  is  largely  over  this  road,  generally  with 
changes  at  the  town  of  Escobal,  opposite  the  Venezuelan  town  of 
Urena,  from  which  place  there  is  an  automobile  road  to  La  Uraca 
(Estacion  Tachira),  on  the  Tachira  Railway,  and  to  San  Cristobal. 
There  is  also  a  mountain  pack  trail  leading  from  La  Uraca  (at  the 
end  of  the  Tachira  Railway)  and  San  Antonio  to  San  Cristobal  and 
Rubio.  Nearly  all  of  the  loreign  freight  traffic,  except  that  with 
the  State  of  Tachira,  passes  down  the  Cucuta  Railway  to  Puerto 
Villamizar,  on  the  River  Zulia^  whence  it  is  handled  by  river  steam- 
ers, which  transfer  it  to  the  Lake  Maracaibo  boats  at  the  river  port 
of  Eneontrados  on  the  Catatumbo  River. 

The  Cucuta  Railway  is  72  kilometers  (1  kilometer =0.62  mile) 
in  length,  the  gauge  being  1  meter  (3.28  feet).  In  this  length  is 
included  the  10  mues  of  line  owned  by  the  city,  extending  to  the 
Venezuelan  border.  The  road  was  completed  in  1888  to  Puerto 
Villamizar,  a  distance  of  approximately  35  miles,  and,  in  spite  of  the 
competition  of  the  Tachira  Railway  in  Venezuela,  had  been  able  to 
reduce  its  bonded  indebtedness  from  600,000  to  286,300  Colombian 
dollars  (1  Colombian  dollar=$0.9733)  by  1911.  Traffic  in  1905 
amounted  to  a  total  of  13,500  metric  tons  (1  metric  ton=2,205 
pounds)  and  in  1911  to  20,722  tons.  In  1917  the  line  handled  21,150 
metric  tons  of  freight,  the  total  income  being  221,564  Colombian 
dollars,  and  the  expenses  77.87  per  cent  of  this  amount.  The  munici- 
pality of  Cucuta  owns  the  branch  or  extension  to  the  Venezuelan 
border  at  Frontera  which  it  has  leased  to  the  Cucuta  Railway  Co. 
for  one-third  of  the  net  revenue. 

The  area  of  the  region  covered  by  the  Colombian  Department,  or 
State,  of  Santander  del  Norte  is  6,708  square  miles,  with  a  popula- 
tion of  about  250,000  people.  Its  commerce  has  been  controlled  to 
a  very  great  extent  by  resident  German  firms  affiliated  with  German 
houses  of  Maracaibo,  though  there  are  a  few  fairly  large  Colombian 
firms  which  also  import  through  Maracaibo,  the  route  over  the 
Colombian  Andes  to  the  Magdalena  River  being  too  difficult  and 
costly. 

The  valleys  composing  the  district  produce  tropical  fruits,  vege- 
tables, cane  sugar,  and  beef  cattle  for  the  local  market  and  for  some 
exportation  to  the  Venezuelan  State  of  Tachira. 

The  mountain  slopes  around  Cucuta  are  covered  with  coffee  planta- 
tions, and  at  elevations  around  5,000  feet  wheat  and  Indian  corn 


200     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

are  grown.  Cucuta  coffee  is  one  of  the  best  grades  grown  in  Amer- 
ica and  constitutes  90  per  cent  of  the  value  of  the  total  exports  of 
the  region,  the  average  crop  shipped  via  Cucuta  to  Maracaibo  for 
export  being  around  150,000  bags  of  60  kilos  (1  kilo  =  2.2046 
pounds),  or  a  total  of  19,836,000  pounds.  In  1913^  197,691  bags 
were  exported.  Hides  of  cattle  form  the  next  largest  item  of  export. 
The  imports  into  Cucuta  consist  of  cotton  cloth,  machinery,  wire, 
and  a  long  list  of  general  articles,  of  which  medicines  and  hardware 
form  the  principal  items.  The  value  of  the  imports  and  exports, 
together  with  the  number  of  bags  of  coffee  shipped,  are  shown  in 
the  following  table: 


Years. 


1912 
1913 
1914 
1915 
1916 
1917 
1918 


Total  value  of— 

Imports. 

Exports. 

Colmnbian 

Colombian 

dollars. 

dollars. 

772,200 

2,803,040 

770, 90d 

2,349,108 

729,597 

1,394,379 

426,722 

1,498,416 

689,410 

1,663,898 

546,573 

1,171,591 

210,819 

842,065 

Bags  of 
coffee  ex- 
ported. 


178,465 
197,691 
129,964 
186,540 
158,619 
107,043 
•92,768 


A  large  amount  of  the  foreign  trade  of  Cucuta,  both  export  and 
import,  is  carried  on  directly  with  the  United  States  and  Europe, 
Maracaibo  merchants  serving  only  as  forwarding  agents.  A  number 
of  American  and  European  houses  send  traveling  salesmen  to  Cucuta, 
via  Maracaibo. 

AGRICULTURE  IN  MARACAIBO  DISTRICT. 

It  has  already  been  stated  that  the  Maracaibo  district  is  the  prin- 
cipal coffee-producing  region  of  Venezuela.  It  is  also  the  chief  sugar- 
producing  region,  most  of  this  product  being  exported. 

AREAS  OF  CULTIVATION. 

Starting  with  the  immediate  region  of  the  port  of  Maracaibo,  one 
finds  permanent  areas  of  cultivation  along  the  lake  shore,  both  north 
and  south  of  the  city — north  as  far  as  the  town  of  San  Rafael  de 
Mojan  and  south  as  far  as  Concepcion.  Across  the  lake,  in  and 
around  both  Altagracia  and  Santa  Kita,  there  are  also  areas  devoted 
to  corn,  cotton,  tobacco,  some  sugar  cane,  and  occasional  plantations 
of  coconuts.  To  the  northwest  of  Maracaibo,  in  the  region  of  Lake 
Sinamaica,  the  Indians  plant  corn,  principally ;  and  there  is  another 
inland  region  cultivated  at  times  to  seasonal  crops  in  the  region  of 
Puerto  Tatus.  In  and  around  the  town  of  Peri j  a,  in  the  district  of 
Libertad,  there  is  also  a  considerable  area  planted  to  corn,  beans,  and 
some  cotton,  in  season. 

Along  the  eastern  shore  of  the  lake,  far  south  of  Santa  Rita,  and 
extending  intermittently  as  far  south  as  La  Ceiba,  there  are  patches 
of  cultivated  land — com,  beans,  bananas,  coconuts,  and  cotton  being 
grown,  with  occasional  small  cacao  plantations  a  little  higher  up  in 
flie  valleys  of  the  many  streams  flowing  into  the  lake. 


MARACAIBO   COMMERCIAL  DISTRICT. 


201 


In  the  Trujillo  region  there  are  three  main  districts  of  permanent 
cultivation  in  coffee-^that  of  Carache,  to  the  north ;  that  of  Valera, 
to  the  southwest ;  and  that  of  Escuque,  still  farther  to  the  west. 

In  the  immediate  region  of  the  lake,  extending  from  Gibraltar 
through  Bobures  and  Palmarito  to  Santa  Maria,  is  the  sugar  district. 
Sugar  has  developed  during  the  last  few  years  into  a  large  industry. 

Farther  to  the  west,  but  inland  from  the  lake,  there  is  cultivation 
in  the  vicinity  of  the  towns  of  San  Carlos,  Garcitas,  and  Santa  Cruz ; 
and  there  is  some  slight  cultivation  of  corn,  principally  in  and  a^^ound 
the  river  port  of  Encontrados,  on  the  Catatumbo  River,  still  farther 
west. 

Merida,  lying  between  two  mountain  areas  of  great  height,  has 
permanent  areas  in  coffee,  extending  from  Mucuchies  on  the  north 
to  Acequias  on  the  south.  On  the  western  side  of  the  range,  farther 
to  the  south,  the  towns  of  Tovar,  Bailadores,  and  La  Grita  have  per- 
manent areas  in  coffee.  The  next  important  district  is  that  of  San 
Cristobal,  which  includes  the  districts  of  Colon,  Lobatera,  Tariba, 
Rubio,  and  San  Antonio.  The  coffee  district  of  San  Cristobal  extends 
as  far  south  as  the  Uribante  River  at  Rio  Frio. 

With  a  total  population  of  only  621,828,  scattered  over  an  area  of 
95,300  square  lalometers  (1  square  kilometer  =  0.386  square  mile), 
it  can  not  be  expected  that  agricultural  production  will  be  greath'' 
increased  in  the  years  to  come,  unless  foreign  immigration  can  be 
attracted  to  this  district  in  large  numbers.  As  elsewhere  in  Vene- 
zuela, the  population  is  not  increasing  at  a  perceptible  rate,  and  the 
great  difficulty  continues  to  be  the  lack  of  labor  for  field  work. 

COFFEE. 


GBADES   AND  PBICES. 


\ 


As  has  been  said,  coffee  is  the  great  staple  of  the  entire  region, 
except  along  the  shore  of  the  lake  and  in  the  lowlands  of  the  interior. 
All  the  coffee  received  at  Maracaibo  for  export  comes  from  the  three 
Andean  States  of  Trujillo,  Merida,  and  Tachira  and  the  Cucuta 
region  in  Colombia.  The  annual  average  amount  is  500,000  bags,  of 
which  the  Cucuta  district  accounts  for  not  less  than  150,000  bags. 
The  grades  of  coffee  produced  in  this  district  are  aromatic  and  are 
used  for  blending  with  cheaper  grades  of  Brazilian  coffees,  always 
commanding  a  much  higher  price.  The  product  is  known  generally 
as  "  Maracaibo  "  coffee,  but  at  Maracaibo  it  is  distinguish^  by  the 
name  of  the  locality  from  which  it  comes,  the  name  designating  the 
relative  quality.  Thus  Merida  coffee  is  the  best,  Tachira  and  Cucuta 
come  next  in  grade,  and  last  Trujillo,  there  being  a  small  difference 
in  the  domestic  price  of  the  several  grades.  The  nominal  prices  of 
the  various  ^ades  in  August  and  December,  1918,  at  Maracaibo  were 
as  follows  (m  dollars  per  quintal  of  101.4  English  pounds)  : 


Grades. 


TrajUlo.., 
Bocpno.... 
Tanondoy, 
Merida.... 


August, 
1918. 

Decftmber, 
1918. 

17.33 
7.72 
7.63 
8.20 

$13.51 
13.90 
13.90 
14.86 

Grades. 


Tovar 

Pregonero  (Tachira) 

Tachira 

Cucuta 


December, 
1918. 


$14.47 
14.47 
14.67 
14*67 


202     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

New  York  makes  the,  folio  wing  differences  in  the  coffees  from  this 
district : 

(i)  "Fair  Trujillos"  means  coffee  from  the  State  of  TruJlUo,  not  Including 
the  Bocono  region. 

(2)  "Fair  Cucutas"  include  the  Cucuta,  Tachlra,  Pregonero,  Merlda,  and 
Bocono  "  trillados  "  (shelled  coffee,  cleaned  and  ready  for  export).  Coffee  from 
the  Tovar  district  is  from  i  to  i  cent  per  pound  cheaper. 

(3)  "  Good  Cucutas  "  means  a  somewhat  higher  grade — ^better  beans,  cleaner, 
and  with  more  care  taken  in  hand  selection,  besides  being  always  old-crop 
coffee  from  the  preceding  harvest  season.  The  finer  grades  from  all  the 
regions,  including  Merida,  may  be  classed  under  "  Good  Cucutas,  trillados." 

(4)  The  fine- washed  coffees  from  Merida,  Tachira,  and  Cucuta  are  in  a 
class  by  themselves  and  are  generally  from  1  to  2  cents  per  pound  higher  in 
price  in  New  York. 

By  the  middle  of  1919  the  market  price  for  Venezuelan  coffees  had 
increased  by  leaps  and  bounds  to  a  high  average  of  26  cents  per 
pound  in  New  York  for  the  higher  grades,  and  in  some  cases  a  price 
of  28  cents  was  obtained  for  large  consignments  of  selected  coffee. 
Exports  had  been  restricted  after  the  entrance  of  the  United  States 
into  the  war,  and  growers  and  coffee  buyers  had  been  forced  to  store 
large  quantities  in  Cucuta  and  Maracaibo.  Needless  to  say,  a  large 
profit  was  realized  on  all  stocks  so  held. 

Prices  per  pound  for  "Maracaibo"  grades  in  New  York  from 
stocks  on  November  30,  1920,  were  as  follows : 

Cents. 

Trujillo 9f-10 

Bocono 10|-10f 

Tovar lOi-lOi 

Merida : 

Trillado llf-llj 

Washed llf-13i 

Cucuta : 

Washed lli-13i 

Ordinary 10i^-10| 

Regular 10^-lli 

Good  lli-llf 

Select lJ3i-14i 

DISTRIBUTION  OF  PBODUCTION. 

The  coffee  of  the  regions  described  is  produced  on  large  as  well  as 
small  plantations.  Many  small  plantations  producing  less  than  100 
bags  annually  are  to  be  found  in  all  regions  of  the  district  in  which 
the  plant  is  grown,  but  are  especially  numerous  in  the  State  of  Tru- 
jillo, where  property  is  more  divided.  The  larger  plantations  are 
provided  with  the  most  modern  hulling  and  cleaning  machinerv.  The 
greatest  percentage  of  large  plantations  is  in  the  State  of  Tachira, 
the  largest  being  the  famous  IBramon  estate  near  Rubio,  owned  by  an 
American  corporation.  The  small  producers  usually  have  no  hulling 
machinery  and  sell  their  crop  in  the  berry  to  the  neighboring  hacienda 
owners,  who  hull  and  clean  the  coffee  and  sell  it  either  to  the  local 
merchants  or  to  the  Maracaibo  exporters  or,  through  them,  to  dealers 
in  New  York. 

The  coffee  industry  has  suffered  in  the  past  from  the  effect  of  low 
prices,  but  no  other  product  has  been  found  to  take  its  place.  The 
plant  will  grow  on  jbhe  hill  and  mountain  sides  where  nothing  else 
of  comparable  value  could  be  cultivat-ed  with  the  same  small  amount 


MABACAIBO   COMMERCIAL  DISTRICT. 


203 


of  labor,  attention,  and  expense.  There  has  been  a  steady  increase  in 
the  total  production  since  1910,  and  new  planting  was  encouraged  by 
the  high  prices  and  prosperous  condition  in  1918  aiid  1919.  The. 
active  construction  of  cart  roads  through  the  mountainous  regions  of 
the  district,  affording  better  means  of  transportation  to  rail  and 
shipping  points  on  the  rivers  or  lake  will  still  further  stimulate  this 
production  and  the  demand  for  cleaning  machinery. 

The  approximate  average  amounts  of  coffee  production  in  the 
larger  regions  may  be  stated  as  follows : 

state  of  Trujillo.— 100,000  to  120,000  bags  per  annum— weight,  46  kUos  (1 
kilo=2.2046  pounds)  per  bag — divided  as  foUows:  Bocono,  Oarache,  and  Sant- 
ana,  40,000  to  50,000  sacks;  TrujiUo,  Valera,  Mejidosa,  Escoque,  Betljoque,  La 
Quebrada,  Monte  Carmelo,  and  Chejande,  60,000  to  70,000  sacks. 

State  of  iferi(2a.— 120,000  to  140,000  bags  per  annum — weight,  46  kilos  per 
bag — of  which  Merida  and  Egido  are  credited  with  40,000  to  50,000  bags ;  Tovar 
and  Santa  Cruz,  60,000  to  70,000  bags ;  and  Torondoy,  20,000  to  25,000. 

State  of  Tachira.— 130,000  to  160,000  bags— weighing  58  kilos  each— San 
Cristobal,  Colon,  Tariba,  and  Independencia  being  credited  with  70,000  to  80,000 
bags ;  Rublo,  50,000  to  70,000  bags ;  and  Pregonero,  10,000  bags. 

In  the  Department  of  Santander  del  Norte,  Colombia,  Cucuta  is  credited  with 
150,000  to  160,000  bags  of  60  kUos  each. 

EXPOBTS   FBOM    MABACAIBO. 

Of  interest  in  this  connection  are  the  statistics  of  the  movement 
of  coffee  at  the  port  of  Maracaibo  by  months  during  1918  and  the  two 
preceding  years,  as  follows : 


Months. 


January 

Fel»uary. , 

March 

April 

May 

June 

July 

August 

September. 

October 

November. 
December. . 

Total 


Receipts  from  interior. 


1916 


Bagt. 
50,184 
63,381 
67,76a 
63,745 
68,322 
44,698 
43,331 
48,642 
43,672 
43,016 
48,667 
36,460 


611,667 


1917 


Bag». 
50,440 
53,990 
54,541 
36,535 
46,516 
37,837 
38,875 
40,114 
84,090 
25,222 
36,595 
39,408 


494,103 


1918 


Bags, 
52,872 
49,361 
49,099 
40,779 
43,786 
30,980 
27,976 
31,095 
31,757 
40,646 
30,084 
49,000 


477,435 


Exports. 


1916 


Bam. 
43,107 
63,355 
67,760 
66,287 
40,158 
29,125 
27,937 
37,949 
30,500 
24,967 
25,639 
25,370 


482,244 


1917 


Bag9, 
58,610 
33,934 
27,941 
38,605 
37,080 
48,552 
41,236 
17,997 
21,758 
19,820 
28,012 
41,266 


414,811 


1918 


Bam, 
46,338 
36,023 
28,514 
26,613 
22,160 
17,397 
24,201 
26,098 
29,188 
24,558 
28,208 
83,410 


392,314 


The  apparent  discrepancy  between  receipts  and  exports  is  due,  in 
part,  to  local  consumption  and  to  coastwise  shipments,  but  mainly  to 
the  difference  in  the  weight  of  the  bags  received  and  shipped.  The 
coffee  crop  of  1918  was  above  the  average  yield  in  the  States  of 
Trujillo  and  Merida,  and  below  the  average  in  the  State  of  Tachira 
and  in  the  Cucuta  region  of  Colombia.  The  picking  season  is  from 
September  to  January,  according  to  elevation  of  plantations  and  the 
season.  A  late  rainy  season  in  the  summer  months  will  bring  the  har- 
vest along  a  month  later  in  the  fall  of  the  year. 

The  following  table  shows,  by  monthSj  the  number  of  bags  of  coffee 
exported  from  the  port  of  Maracaibo  since  July,  1919,  according  to 
figures  supplied  by  the  United  States  consulate.  (Each  bag  contains 
60  kilos  of  coffee;  1  kilo=2.2046  pounds.) 


204     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK, 


Month. 


18fl9. 

July 

August 

September 

October 

November 

December 

1920. 

January 

February 

March 

April T. 

May 

June 

July 

August 

September 

October 

November 

December 

1921. 

January 

February 

March 

April 

May 


United 
States. 


Bags. 
67,077 
77,151 
35,506 
22,280 
50,610 
39, 171 


35,624 
36,575 
37,282 
33, 134 
52,550 
44,933 
20,046 
13, 197 
13,972 
9,046 
22,531 
16,423 


28,921 
42,000 
32, 167 
23,045 
43,509 


Curasao. 


Nether- 
lands. 


Bags. 
10 
533 
1,210 
2,371 
1,211 
7,571 


7,358 
4,271 
2,022 
3,270 
2,436 
3,853 
5,470 
7,092 
5,938 
4,U0 
4,237 
621 


339 
2,105 

459 
3,945 
8,155 


Bags. 


89 


1,419 
213 

5C4 


France. 


All  other 
countries. 


Bags. 
"'4,'673" 


200 


316 


2,103 


1,000 


Bags. 
407 
1,019 
500 
210 
565 
400 


895 
"96" 


400 


200 

883 


10 

200 


325 


315 
212 

2,711 
715 

1,050 
601 
280 
228 


1,403 

965 

4,154 

2,922 
4,050 


Total. 


Bags. 
67,583 
82,776 
38,635 
25,054 
52,800 
47,142 


43,877 
40,846 
39,400 
36,404 
55,301 
51, 101 
28,227 
21,004 
21,160 
14,827 
27,048 
17,588 


30,663 
45,480 
36,980 
30,112 
56,922 


COFFEE  PRODUCTION    AND   MABKET  CONDITIONS,    1920-21. 

The  1918  crop  was  above  normal  in  total  production  and  was  moved 
at  the  extraordinarily  high  prices  secured  during  the  latter  half  of 
1919 ;  the  shipments  included  part  of  previous  crops  held  in  storage 
awaiting  better  ocean  transport  facilities.  The  1919  crop  was  also 
above  normal  in  quantity,  being  estimated  at  1,020,000  sacks  for  the 
entire  country.  A  large  portion  of  this  crop  was  purchased  by 
speculators  who  paid  an  average  price  of  120  bolivars  ($23.16)  per 
quintal,  in  anticipation  of  a  continued  high  market  for  coffee  in  the 
United  States  during  1920.  They  were  caught  with  large  stocks  on 
hand  during  the  last  half  of  1920  when  the  market  suddenly  declined, 
reaching  prewar  levels  by  the  harvest  time  of  the  1920  crop.  Mara- 
caibo  alone  was  estimated  to  have  in  storage  not  less  than  200,000 
sacks  of  the  previous  crop  that  the  owners  would  not  sell  at  prevail- 
ing prices,  preferring  to  hold  the  coffee  for  better  market  conditions. 

The  1920  crop  was  reported  to  be  25  per  cent  less  than  normal 
throughout  the  entire  Andean  region  on  account  of  the  late 
rains ;  and,  more  serious  still,  labor  conditions  were  such  that  it  was 
not  expected  that  more  than  50  per  cent  of  the  yield  could  be  saved 
during  the  picking  season. 

It  is  not  to  be  supposed  that  the  increased  cost  of  production 
(principally  in  the  labor  factor)  brought  about  during  recent  years, 
combined  with  the  present  low  prices,  will  cripple  the  industry  in 
the  Andean  States  of  Venezuela  or  in  the  Cucuta  region.  The  cost 
of  living  has  decreased  very  considerably  during  the  last  half  of 
1920;  staples  such  as  sugar,  corn,  lard,  etc.,  are  no  longer  exported 
as  was  the  case  during  the  war  years,  and  imported  articles  of  first 
necessity,  such  as  cheap  cotton  goods,  have  also  declined  in  price  very 
considerably.  Coffee  prices  are  about  at  the  old  prewar  level,  and 
under  present  conditions  the  plantations  can  continue  to  be  culti- 
vated at  a  profit,  although  there  will  no  longer  remain  a  large  margin 
for  the  speculator. 


MARACAIBO  COMMERCIAL  DISTRICT.  205 

CACAO. 

In  many  places  in  the  district  cacao  is  grown  at  altitudes  varying 
from  sea  level  to  an  elevation  of  2,000  feet.  It  is  of  better  quality 
than  cacao  from  other  parts  of  Venezuela  and  commands  a  higher 
price  in  the  foreign  market.  In  the  hot,  damp  valleys  of  the  dis- 
trict about  200  trees  are  planted  to  the  hectare  (2.47  acres),  the 
larger  trees  of  the  native  forest  being  left  to  serve  as  shade  for  the 
tender  cacao  plants,  which  require  from  five  to  seven  years  to  reach 
maturity  and  full  bearing.  The  average  life  of  the  tree  is  approxi- 
miitely  40  years,  during  which  time  550  to  675  kilos  (1  kilo=2.2046 
pounds)  of  cacao  are  produced  per  hectare.  Two  kinds  of  cacao  are 
grown  in  the  Maracaibo  district — the  "  CrioUo,"  lower  down  and 
nearer  the  lake,  and  the  "  Chuao  Plantation,"  which  is  of  stilL  finer 
grade,  containing  more  oil.  In  the  United  States  the  cacao  from  this 
district  is  known  by  the  trade  name  of  "  Maracaibo  "  cacao. 

While  cultivated  more  or  less  throughout  the  lowlands  of  the  dis- 
trict where  there  is  population,  the  centers  of  production  are  Encon- 
trados  and  Valderrama  (both  on  the  Catatumbo  River),  the  valley 
of  the  Garcitas  River,  the  district  of  Perija  (all  these  being  low- 
lands), and  the  districts  of  Estanques,  Santa  Cruz,  and  Tovar,  in 
the  State  of  Merida,  in  the  uplands. 

The  development  of  the  cacao  industry  has  made  satisfactory 
progress  in  th«  district  during  the  past  10  years,  but  coffee  is  usually 
preferred  on  account  of  the  smaller  amount  of  labor  required  in  the 
preparation  of  the  bean  for  export  and  the  fact  that  coffee  keeps 
better  under  the  climatic  conditions  prevailing  in  the  region  and 
during  shipment.  The  cacao  bean  will  ferment  if  stored  for  any 
length  of  time  in  a  hot,  moist  warehouse  without  attention  to  proper 
drving. 

Estimates  of  the  production  of  each  region  named  are  not  avail- 
able. The  industry  is  not  so  important  in  this  district  as  in  other 
parts  of  Venezuela,  but  it  is  increasing  slowly.  Practically  the  entire 
crop  is  exported,  the  export  figures  affording  an  accurate  index  of 
the  total  production.  More  than  95  per  cent  of  the  cacao  exported 
goes  to  the  United  States,  though  France  was  the  principal  customer 
for  Venezuelan  cacaos  prior  to  1914.  In  1916  Maracaibo  exported  a 
totul  of  833,330  pounds,  valued  at  $120,344.  In  1916  the  exports 
were  640,926  pounds,  valued  at  $77,749.  Only  the  beans  are  shipped, 
packed  in  bags  weighing  110  pounds.  Exports  in  1917  amounted  to 
783,461  pounds,  valued  at  $167,441,  nearly  all  of  which  went  to  the 
United  States.  The  crop  for  1917  was  25  per  cent  below  normal,  and 
from  25  to  30  per  cent  of  the  old  crop  remained  unsold  on  account 
of  war-time  restrictions  and  lack  of  tonnage  for  ocean  transportation. 

In  terms  of  bags,  Maracaibo's  exports  amount  to  an  annual  average 
of  6,850  bags  of  110  pounds  each,  the  total  export  of  the  country  being 
around  300,000  bags,  of  which  La  Guaira  ships  an  average  of  175,000 
ba.<'s,  Puerto  Cabello  50,000  bags,  and  Carupano  75,000  bags. 

During  the  year  1919  (the  latest  period  for  which  statistics  are 
available)  Maracaibo  shipped  383,927  kilos  (1  kilo=2.2046  pounds) 
of  cacao,  valued  at  861,882  bolivars  ($166,343),  to  the  United  States, 
the  other  countries  of  destination  being:  Curagao,  21,604  kilos;  Great 
Britain,  3,131  kilos;  Netherlands,  12,866  kilos;  Spain,  6,000  kilos. 


206     VENEZUELA :   A  COMMERCIAL  AND  INDtTSTRIAL  HANDBOOK. 

SUGAK. 
SUBVET   OF  DEVELOPMENT. 

The  sugar-cane  industrjr  has  existed  in  a  certain  form  for  many 
years  around  Lake  Maracaibo.  Originally  there  were  merely  a  num-. 
ber  of  small  mills  turning  out  the  native  brown  sugar  for  domestic 
consumption ;  this  is  called  "  papelon  "  in  Venezuela  and  Colombia  and 
"panoche"  in  Mexico,  the  latter  being  the  name  under  which  it  is 
loiown  generally  on  the  American  market.  It  is  also  called  "  panela  " 
in  Colombia  and  Venezuela  when  put  up  in  large  round  cakes.  The 
usual  form  of  the  "  papelon  "  is  that  of  a  brick,  similar  to  maple-sugar 
cakes  seen  in  the  United  States.  This  brown  sugar  is  polarized  at 
70°  to  75°.  This  sugar  was  made  only  for  the  local  market  and  export 
to  the  Dutch  West  Indies  (principally  Curagao)  until  1916,  when, 
owing  to  the  high  price  and  scarcity  of  sugar,  $15,435  worth  was 
shipped  to  the  United  Kingdom  and  $732  worth  to  the  United  States. 
The  total  amount  of  "papelon"  exported  from  Maracaibo  in  1916 
was  3,325,783  pounds,  valued  at  $71,453,  compared  with  2,912,780 
pounds,  valued  at  $49,735,  in  1915. 

One  of  these  small  mills  (the  factory  of  Buscan  &  Matos)  made 
white  sugar,  but  oiJy  for  the  local  market.  The  manufacture  of  sugar 
for  export  to  the  United  States  had  its  inception  in  the  lowering  of 
the  American  duties  under  the  tariff  act  of  1913,  but  factories  were 
not  completed  for  operation  until  the  grinding  season  of  the  autumn 
of  1915.  During  the  last  months  of  1915,  $57,804  worth  of  sugar  was 
invoiced  for  export  to  the  United  States.  Three  suffar  mills,  equipped 
for  making  centrifugal  sugar,  were  erected  on  ftie  south  and  east 
shore  of  Lake  Maracaibo,  at  Bobures  and  La  Ceiba.  In  the  fall  of 
1917  only  one  of  these  factories  was  being  operated,  the  other  two 
being  in  the  course  of  reorganization. 

It  is  said  locally  that  a  much  larger  quantity  of  cane  per  acre  is 
produced  in  the  Lake  Maracaibo  region  than  in  Cuba  or  other  cane 
countries,  but  that  the  sugar  content  of  the  cane  is  much  less,  the  ex- 
traction being  only  6  to  7  per  cent  of  the  weight  of  the  cane,  against 
10  to  14  per  cent  in  Cuba,  Hawaii,  and  elsewhere.  Another  drawback 
to  the  sugar  industry  on  Lake  Maracaibo  is  the  climate,  which  tends 
to  discourage  even  native  labor.  The  sugar  exported  from  the  fac- 
tories to  the  United  States  generally  polarizes  around  97°  and  is  in- 
tended for  the  refineries.  The  exports  of  sugar  to  the  United  States 
from  Maracaibo  in  1919,  as  declared  at  the  American  consulate,  were 
11,620,858  pounds,  valued  at  $614,819,  while  in  1920  the  weight  was 
only  2,803,659  pounds  and  the  value  $302,762.  In  other  recent  years 
the  quantity  shipped  to  the  United  States  was  greater;  in  1917  the 
amoimt  was  24,811,581  pounds,  valued  at  $1,132,294. 

Climatic  conditions  greatly  affected  the  industry,  as  labor  can  be 
held  on  the  plantations  only  with  the  greatest  difficulty  on  account 
of  the  ravages  of  malaria. 

SUGAB  ESTATES  AI7D  THEIB  PRODUCTION   IN    1920. 

The  estate  of  the  Venezuela  Sugar  Co.  is  at  Bobures,  and  the  gen- 
eral offices  are  at  Maracaibo.    The  acreage  in  cane  is  2,000  hec^res 


MAKACAIBO   COMMERCIAL  DISTRICT.  207 

(1  hectare=:2.47  acres),  and  the  production  is  11,500,000  kilos  (1 
kilo=2.2046  pounds).  The  mill,  called  the  Central  Venezuela,  was 
purchased  at  second  hand  in  Louisiana  and  has  a  grinding  capacity 
of  about  800  tons  of  cane  every  24  hours.  In  1917  the  mill  machinery 
was  improved  by  the  additional  installation  of  crystallizers  and  triple 
effects,  the  first  plant  having  only  double  effects.  The  first  crop  was 
milled  in  the  season  1915-16.  The  stock  of  this  company  is  regis- 
tered in  the  United  States,  with  a  capital  of  $4,000,000,  the  initial 
investment  in  the  first  plant  being  around  $1,500,000.  In  1917  there 
were  some  3,000  acres  in  cane,  and  this  amount  was  gradually  in- 
creased until,  in  1920^  it  had  reached  a  total  of  4,942  acres.  There 
is  suflScient  land  available  to  double  this  acreage.  The  company 
has  15  kilometers  (1  kilometer=p.62  mile)  of  railway  and  a  small 
pier  on  the  lake  for  loading  purposes.  The  sugar  is  shipped  prin- 
cipally in  schooners  to  Willemstad,  Curasao,  whence  it  is  transshipped 
bv  steamer  to  New  York.  The  plant  is  very  near  that  of  the  Sucre 
Cfentral. 

In  October,  1920,  a  stock  dividend  of  50  bolivars  ($9.65)  per  share 
was  paid,  covering  the  economic  half  year  ended  June  30,  1920. 
Total  dividends  were  750,000  bolivars  ($144.75)  for  the  period. 
Stock  was  quoted  on  the  Maracaibo  market  in  October,  1920,  at  1,200 
bolivars  ($232)  per  diare,  the  par  value  being  $100.  The  previous 
month,  quotations  of  1,400  bolivars  ($270)  were  made.  On  Septem- 
ber 30,  1920,  a  meeting  of  stockholders  was  called  to  pass  on  the 
proposition  of  increasing  the  capital  stock  of  this  company — which 
had  in  the  meantime  been  reorganized  with  native  capital  of  7,800,000 
bolivars  ($1,505,400) — and  to  provide  for  the  revaluation  of  the 
entire  property.  (Stock  quotations  in  August  reached  the  high  figure 
of  1,500  bolivars,  or  $289.)  It  is  generally  understood  that  this 
company  is  now  controlled  oy  Venezuelan  capital. 

The  Central  Azucarero  delZulia  (Central  Sucre)  began  operations 
by  the  purchase  of  the  old  El  Banco  plant,  the  largest  of  the  old 
factories,  near  Bobures,  on  the  southeastern  shore  of  Lake  Mara- 
caibo. The  capital  is  6,500,000  bolivars  ($1,254,500),  divided  into 
shares  of  400  bolivars  ($77)  each.  The  machinery  was  purchased 
from  Belgium  through  a  Habana  firm  just  before  the  outbreak  of  the 
war.  The  mill  has  a  grinding  capacity  of  800  tons  of  cane  in  24 
hours,  and  manufacture  was  started  in  Pebruary,  1917.  The  two  cane 
plantations  of  Sucre  and  El  Banco  have -a  total  of  1,500  hectares, 
part  of  which  is  worked,  under  the  Cuban  system,  by  contractors 
(called  "colonos"),  who  are  allowed  5J  pounds  of  sugar  for  every 
100  pounds  of  cane  delivered  at  the  scales  of  the  "  central."  In  ad- 
dition, the  company  has  continued  the  operation  of  the  old  mill  at 
El  Banco,  with  a  capacity  of  150  hundredweight  of  crystallized 
sugar  for  domestic  consumption.  The  capacity  of  the  large  plant  is 
1,840,000  kilos  of  crystallized  sugar  for  tne  season,  which  begins  in 
November  and  lasts  until  June  in  this  section. 

Cane  grows  well,  but  the  juice  rarely  exceeds  8°  Baum6.  Irriga- 
tion is  unnecessary;  on  the  contrary,  drainage  work  is  done  to  reduce 
the  excess  water  on  the  lands,  which  lie  very  low. 

In  August,  1920,  the  stock  was  quoted  at  300  bolivars  ($58)  per 
share  on  the  Maracaibo  market,  with  offers  of  210  and  220  bolivars 
($40  and  $42). 


208     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

The  Central  Azucarero  de  La  Ceiba  is  a  Venezuelan  stock  company 
with  headquarters  in  Caracas;  it  is  capitalized  at  1^50,000  bolivars 
($241^50),  divided  into  shares  of  25  bolivars  ($4.82)  each.  The 
property  is  located  near  La  Ceiba,  the  terminus  of  the  La  Ceiba  Rail- 
way, in  the  State  of  Trujillo  north  of  the  properties  of  the  other  two 
large  suffar  companies.  The  plant  is  located  17  kilometers  from  the 
lake.  The  mill  was  purchased  in  Porto  Rico  after  it  had  been  used 
there  for  one  grinding  season,  the  capacity  being  400  tons  of  cane  in 
24  hours.  The  Ferrocarril  La  Ceiba  has  a  branch  line  to  the  plant 
and  also  transports  the  cane  to  the  mill,  for  which  service  a  charge 
of  7  cents  per  100  pounds  is  made.  New  grinding  machinery  was 
under  installation  during  1920,  and  the  capacity  of  this  mill  was 
being  increased  to  700  tofis  of  cane  per  day  of  24  hours.  The  first 
grinding  season  began  in  March,  1917,  this  first  season  yielding  only 
00,000  hundredweight  of  centrifugal  sugar  for  export.  The  initial 
acreage  in  cane  was  about  2,000,  and  this  has  been  increased  to  about 
3,000  acres,  which  are  expected  to  produce  in  1921  a  total  of  4,000,000 
kilos  of  centrifugal  sugar  for  export.  The  company  owns  its  3,000 
acres  of  sugar-cane  lands,  which  can  be  easily  irrigated  from  the 
waters  of  the  navigable  River  Motatan.  The  lands  are  level  and  are 
covered  with  a  layer  of  humus  5  feet  in  depth.  Recently,  an  addi- 
tional 3,000  acres  adjoining  the  original  property  have  been  pur- 
chased for  future  expansion  and  some  clearing  has  been  done,  but 
the  development  work  has  been  handicappjed  by  the  traditional  lack 
of  sufficient  labor  supply.  The  average  yield  per  acre  is  60  tons  of 
cane,  from  which  juice  running  from  8°  to  10°  Baume  is  extracted. 

The  Buscan»&  Matos  property  is  being  remodeled  to  make  export 
sugar,  with  a  proposed  capacity  of  1,150,000  kilos  of  centrifugal 
sugar. 

Another  new  sugar  company  has  been  recently  organized  in  Mara- 
<;aibo  with  a  capital  of  2,000,000  bolivars  ($386,000),  divided  into 
shares  having  a  nominal  value  of  500  bolivars  each.  The  company 
is  known  as  the  Central  Gran  Via.  Stock  was  quoted  in  August  in 
Maracaibo  at  520  bolivars  ($100)  per  share,  though  the  machinery 
had  not  yet  arrived  on  the  ground, 

A  condensed  survey  of  the  sugar  industry  in  the  Maracaibo  region, 
not  including  the  seven  or  eight  small  mills  producing  brown  sugar, 
shows  the  following  result  for  1920: 

The  actual  production  ef  centrifugal  sugar  in  the  1920-21  season 
was  estimated  at  14,490,000  kilos,  produced  from  approximately 
13,125  acres  of  cane.  The  increased  production  from  the  Central  La 
Ceiba  and  Central  Sucre,  by  reason  of  new  machinery  installations 
and  additional  areas  planted  to  cane  and  from  several  smaller  haci- 
endas now  remodeling  old  brown-sugar  plants,  would  reach  10,- 
000,000  kilos  by  the  end  of  1922,  at  the  present  rate  of  investment  amd 
improvement.  Therefore  the  possible  export  of  centrifugal  sugar 
from  Maracaibo  may  be  estimated  at  nearly  25,000^000  kilos  within 
the  next  two  years.  The  estimated  present  production  for  the  entire 
country  is  26,515,000  kilos,  and  the  estimated  increase  in  production 
is  15,000,000  kilos,  while  the  domestic  consumption  of  white  sugar  is 
only  6,000,000  kilos,  because  the  "  p^ipelon "  of  the  country  is  more 
generally  used  bv  the  majority  of  the  population  as  a  staple  article 
of  food  in  their  daily  diet. 


MABACAIBO   COMMERCIAL  DISTRICT.  2UU 


EFFECT    OF   HIGH    AND    LOW   PRICKa. 


The  exportation  of  refined  sugar  and  of  the  brown  sugar  of  the 
country  was  stimulated  by  the  high,  prices  obtained  during  the  war 
years.  The  1920-21  season  was  expected  fo  yield  about  $4,000,000 
worth  of  sugar  for  export  to  the  United  States,  principally  from 
Maracaibo.  The  sudden  decline  of  the  price  of  sugar  in  the  fall  of 
1920  to  pre-war  price  levels  of  about  4f  cents  per  pound  in  New  York, 
f.  o.  b.  refinery,  made  it  very  doubtful  whether  Maracaibo  could  con- 
tinue to  export  sugar  to  the  United  States  in  competition  with  Cuba 
and  Porto  Rico,  considering  the  higher  cost  of  production  caused  by 
labor  and  climatic  conditions,  local  and  ocean  transportation  costs, 
etc. 

Bv  the  end  of  November,  1920,  the  market  (juotations  of  all  sugar 
stocks  in  Maracaibo  had  declined  very  considerably — those  of  the 
Venezuela  Sugar  Co.  being  quoted  at  800  bolivars  ($154),  those  of 
the  Central  Zulia  at  85  to  90  bolivars  ($16  to  $17),  and  those  of  the 
Central  Ceiba  at  2  to  3  bolivars  ($0.39  to  $0.58),  with  the  bonds  at 
60  per  cent  of  par  value. 

It  remains  to  be  seen  whether  the  domestic  market  is  capable  of 
absorbing  a  larger  amount  of  refined  sugar  in  competition  with  the 
locally  produced  "  papel6n,''  for  which  there  are  a  great  number  of 
small  mills  all  over  the  country,  and  whether  the  large  modem  mills 
can  continue  to  operate  at  a  profit  under  present  and  luture  price  con- 
ditions in  the  export  market. 

CORK. 

Indian  com  is  found  everywhere  in  the  district  and  practically  at 
all  altitudes,  but  the  principal  section  of  production  is  in  the  low- 
lands south  of  Lake  Maracaibo  in  the  regions  of  Garcitas  and  San 
Carlos.  Corn  was  exported  from  this  district  for  the  first  time  in 
1917,  shipments  to  the  United  States  beginning  in  August  and  con- 
tinuing until  April,  1918,  when  the  United  States  prohibited  fur- 
ther importations.  The  value  of  the  quantity  exported  during  this 
period  was  $271,887.  The  industry  could  be  developed  to  much 
greater  proportions  provided  a  steady  market  could  be  found  for 
the  excess  over  local  consumption. 

The  islands  of  the  Dutch  West  Indies  have  been  steady  customers 
for  the  excess  food  products  of  the  Maracaibo  region.  Curagao  has 
taken  annually  an  average  of  1,200  tons  of  corn,  valued  at  about 
600,000  bolivars  ($115,000) ;  the  exports  to  Curasao  during  the  year 
1919  amounted  to  1,471,505  kilos,  valued  at  398,252  bolivars  ($76,- 
863).  Other  shipments  of  com — to  Aruba,  Bonaire,  Trinidad 
(British  West  Indies),  and  Porto  Rico — during  this  same  year  were 
1,176,198  kilos,  valued  at  302,080  bolivars  ($58,301),  of  which  Trini- 
dad took  the  largest  amount — 332,000  kilos,  valued  at  78,880  boli- 
vars ($16,224).  The  total  annual  excess  production  of  corn  for  the 
entire  district,  available  for  exportation,  may  be  estimated  at  5,650,- 
000  pounds,  valued  at  approximately  $30,000. 

Methods  of  cultivation  are  crude  and  very  simple.  The  under- 
growth and  trees  are  cleared  away  with  machetes  and  axes,  and 
then,  after  the  land  is  burned  off  during  the  dry  season,  the  com  is 
planted  in  wide  rows  at  the  beginning  of  the  rainy  season  without 

79747*— 22 ^15 


210     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

plowing  or  other  cultivation  other  than  keeping  the  larger  weeds 
down  with  the  inevitable  machete. 

WHEAT. 

m 

Wheat  is  grown  on  the  uplands  at  5,000  to  10,000  feet  elevation. 
The  largest  producing  areas  are  in  the  eastern  part  of  the  State  of 
Merida  and  the  southern  part  of  Trujillo,  with  Timotes  and  Mucu- 
chies  as  producing  centers.  However,  wheat  fields  and  small  flour 
mills  are  to  be  found  in  nearly  all  the  upland  country  and  the  com- 
mercial centers  in  the  three  Andean  States.  Up  to  the  end  of  1917, 
when  it  became  impossible  to  receive  shipments  of  flour  from  the 
United  States,  Maracaibo  resorted  to  the  interior  for  its  local  sup- 
ply of  wheat  and  flour  and  even  secured  some  for  shipment  to  Cara- 
cas. The  grain  is  of  good  quality,  but  the  flour  is  dark  in  color  from 
the  lack  of  proper  modern  milling  machinery.  There  are  few  roller 
mills,  and  there  ought  to  be  a  limited  market  in  the  district  for  the 
sale  of  such  mills  of  small  capacity,  as  well  as  small  units  of  thrash- 
ing machinery. 

POTATOES. 

Potatoes  are  grown  in  considerable  quantities  in  the  uplands  of 
the  interior  to  aRitudes  of  10,000  feet  above  sea  level.  The  principal 
center  of  production  is  Timotes,  in  the  State  of  Trujillo.  Potatoes 
are  shipped  from  the  interior  to  Maracaibo,  and  small  quantities  are 
exported  to  other  parts  of  Venezuela  and  to  Curasao. 

FRUITS. 

Tropical  fruits  (oranges,  lemons,  plantains,  bananas,  pawpaws, 
alligator  pears,  etc.)  and  vegetables  of  all  kinds  are  grown  in  abun- 
dance for  local  consumption  throughout  the  district.  Pineapples 
of  a  very  superior  quality  and  flavor  are  grown  in  the  interior.  The 
mountain  districts  of  Merida,  La  Grita,  and  Rubio  ev6n  produce 
peaches  and  apples  of  a  fair  quality.  However,  the  only  fruits  ex- 
ported are  plantains  and  bananas — and  those  in  limited  quantities, 
mainly  to  Curagao. 

COCONUTS. 

Coconuts  are  grown  in  considerable  quantities  all  along  the  shores 
of  Lake  Maracaibo.  The  oil  is  extracted  for  the  local  soap  fac- 
tories, the  shells  being  used  for  fuel.  Small  quantities  of  the  raw 
nuts  and  of  the  oil  are  exported.  The  chief  producing  center  is  the 
town  of  Santa  Rita,  almost  directly  opposite  Maracaibo. 

RICE. 

Rice  is  also  grown  on  the  lowlands  surrounding  Lake  Maracaibo, 
but  not  yet  in  sufficient  quantities  to  supply  the  local  markets; 
2,653,285  pounds,  valued  at  $111,726,  were  imported  from  the  United 
States  in  1916,  as  compared  with  1,980,117  pounds,  valued  at  $82,164, 
in  1915;  by  1919,  however,  the  value  of  such  imports  from  the 
United  States  had  decreased  to  $33,920. 

HAT  FIBER. 

The  fiber  of  the  "soate"  palm,  locally  called  "cogoUo,"  is  ex- 
ported principally  to  Curasao  for  the  hat-making  industry  there. 
This  fiber  is  very  similar  to  the  famous  Panama  hat  fiber  of  Colom- 


MARACAIBO   COMMERCIAL  DISTRICT.  211 

bia  and  Ecuador.  The  State  of  Zulia  produces  the  greatest  amount 
for  export.  In  1919,  264,974  kilos  (1  kilo=  2.2046  pounds)  were  ex- 
ported,  valued  at  170,651  bolivars  ($32,936)  • 

COTTON. 

Cotton  grows  well  in  nearly  all  the  warm  regions  of  Venezuela 
and  especially  well  on  the  lowlands  of  the  Maracaibo  Basin.  In  1916 
cotton  growing  received  considerable  attention  in  this  district,  in- 
cluding the  mountain  State  of  Tachira,  where  an  excellent  grade  of 
strong  white  cotton  was  produced,  giving  30  per  cent  of  clean  fiber. 
The  yield  near  the  city  of  Maracaibo  was  estimated  that  year  at 
40,000  quintals  (1  quintal=100  pounds),  the  first  planting  having 
been  made  five  years  previously.  That  same  year  the  Caribbean 
State  of  Falcon  took  measures  to  assist  in  the  production  of  cotton 
along  the  coast;  seed  was  distributed  and  every  inducement  made 
by  the  Government  to  increase  the  production  of  cotton  for  the  do- 
mestic, mills  of  the  country. 

In  1918  the  States  of  Zulia,  Trujillo,  and  Merida  produced  be- 
tween 2,500  and  3,000  bales  oi  500  pounds  each,  principally  near 
Maracaibo,  where,  on  account  of  climatic  and  labor  conditions,  it 
is  impossible  to  increase  production  to  any  extent.  In  the  city  of 
Maracaibo  there  are  three  small  gins,  namely,  "La  Mota,"  of  Co- 
sino  Hermanos;  "La  Paulina,"  of  Angel  Ma.  Quintero;  and  "La 
San  Antonio,"  of  Julio  A.  Aiiez  y  Cia. 

The  State  of  Zulia  produces  about  18  per  cent  of  the  cotton  grown 
in  the  entire  country.  Its  production  in  1919  was  estimated  at 
359,100  kilos  (1  kilo=2.2046  pounds). 

"La  Hispano-Venezolana,"  a  small  knitting  mill  turning  out  a 
cheap  grade  of  knit  cotton  undershirts  much  used  by  the  people  of 
the  lower  classes,  is  now  in  liquidation  in  Maracaibo.  There  are  no 
other  cotton-manufacturing  plants  there,  with  the  exception  of  a  few 
small  hand-loom  plants  making  cheap  blankets,  etc. 

Exports  of  cotton  from  Maracaibo  go  chiefly  to  Curacao,  such  ship- 
ments amounting,  during  the  year  1919,  to  153,267  kilos,  valued  at 
305,399  bolivars  ($58,942). 

During  the  period  of  high  prices  in  1918  and  1919,  Maracaibo 
cotton  was  shipped  coastwise  to  Caracas,  via  the  port  of  La  Guaira ; 
but  with  prices  now  down  to  6  to  8  bolivars  ($1.16  to  $1.54)  an 
"arroba"  (of  25  pounds)  for  cleaned  cotton  in  Valencia,  which  is 
the  chief  producing  region  of  the  country,  it  is  not  thought  that  large 
crops  in  the  Maracaibo  region  could  be  disposed  of  at  an  advantage 
unless  labor  conditions  were  better  and  the  plants  were  cultivated  on 
a  much  larger  scale. 

Corn  is  planted  between  the  rows  of  cotton,  which  is  reseeded  every 
two  years  with  Mississippi  seed.  The  corn  yield  from  the  ground 
seeded  to  cotton  just  about  pays  the  expenses  of  the  crop,  sometimes 
including  picking  and  marketing.  The  chief  difficulties  are  the  cli- 
matic conditions  and  the  universal  lack  of  laborers  in  sufficient 
numbers. 

HIDES  AND  SKINS. 

Cattle  are  raised  in  considerable  numbers  around  Lake  Maracaibo, 
but  not  in  sufficient  numbers  to  justify  the  erection  of  a  packing 


212     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRLUj  HANDBOOK. 

house  for  the  export  market,  as  at  Puerto  Cabello.  There  are  no 
exports  of  live  cattle  or  beef  from  the  district,  but  cattle  hides  and 
goatskins  form  the  most  important  item  of  exportation  after  coffee 
and  sugar.  According  to  official  Venezuelan  statistics,  the  exports 
from  Maracaibo  were  as  follows  during  two  recent  years:  Hides — 
1918,  1,795  metric  tons  (of  2,205  pounds),  valued  at  3,249,060  boli- 
vars ($627,069) ;  1919,  575  metric  tons,  valued  at  1,862,119  bolivars 
($359,389.  Skins— 1918,  507  metric  tons,  valued  at  1,369,546  bolivars 
($264,322) ;  1919,  186  metric  tons,  valued  at  875,465  bolivars  ($168,- 
965).  The  declared  exports  to  the  United  States  during  three  recent 
years  have  been  as  follows :  Hides — 1918,  560,870  pounds,  valued  at 
$183,468;  1919,  1,448,937  pounds,  valued  at  $647,159;  1920,  777,634 
pounds,  valued  at  $263,403.  Goatskins— 1918,  38,678  pounds,  valued 
at  $18,172;  1919,  385,200  pounds,  valued  at  $308,264;  1920,  271,867 
pounds,  valued  at  $167,148.  The  amount  of  calfskins  exported  is 
negligible.  Deerskins  exported  to  the  United  States,  which  takes 
practically  the  entire  production,  amounted  to  $5,254  in  1919  and 
$2,184  in  1920.  A  small  amount  of  wool  is  brought  down  from  the 
mountainous  part  of  the  district  and  exported  to  the  United  States, 
the  amount  never  having  exceeded  a  value  of  $15,500  (the  figure  for 
1919). 

FOREST  PRODUCTS. 

Timber  is  found  in  all  parts  of  this  district,  but  on  account  of  the 

Erevailing  lack  of  means  of  transportation  the  only  wood  that  can 
e  exported  is  that  which  grows  on  the  lowlands  in  the  immediate 
vicinity  of  the  lake  or  near  the  banks  of  the  navigable  streams. 
"  Vera,"  or  bastard  lignum-vitse,  can  be  secured  in  abundance  for 
export  in  30-foot  len^hs,  25  to  30  inches  in  diameter.  It  is  ex- 
tremely hard  and  heavy  and  is  especially  valuable  for  shipbuilding 
fittings,  though  not  as  hard  as  the  real  species  of  lignum-vitse. 
"  Canlete  "  (paddlewood)  is  not  available  in  such  large  quantities 
as  "  vera."  It  is  softer  than  "  vera  "  and  is  affected  by  the  sun  and 
by  humidity.  "  Curarire,"  almost  equal  to  "  vera,"  is  not  found  in 
sufficient  quantities  to  permit  of  its  exportation  in  any  appreciable 
amounts. 

Among  the  softwoods,  boswood,  or  "  zapatero,"  is  found  in  abund- 
ance and  has  been  exported  to  the  United  States  and  to  Europe.  It 
is  generally  shipped  in  lengths  of -6  to  10  feet,  in  diameters  of  6  to 
12  and  even  14  inches.  "Carreto"  is  also  to  be  had  in  lengths  of 
20  and  30  feet  and  thicknesses  of  25  to  30  inches. 

Of  the  colored  woods,  ebony  and  fustic  (logwood)  are  to  be  had 
in  quantities  sufficient  for  export. 

Lumbering  is  carried  on  in  a  very  primitive  manner.  The  only 
sawmills  are  located  at  Maracaibo,  where  there  are  four.  Trees  are 
scattered,  the  cutting  is  not  done  systematically,  and  there  is  much 
waste  of  labor  in  hauling  the  logs  down  to  the  lake  or  river  for  trans- 
portation. It  has  been  thought  that  the  erection  of  small  mills  on 
the  lake  or  rivers  near  the  timbered  areas,  where  the  logs  could  be 
made  up  into  timber  for  direct  exportation  in  schooners,  would  make 
the  industry  more  profitable. 

Maracaibo,  however,  is  the  lumber  center  of  Venezuela.  Most  of 
the  woods  leaving  the  port  are  in  the  form  of  logs,  hewn  in  the  woods 


MARACAIBO   COMMERCIAL  DISTRICT.  213 

by  hand,  though  planks  and  boards  are  produced  by  the  local  saw- 
mills and  exported  also.  The  cost  of  hewing  and  dragging  the  heavy 
timbers  to  the  river  bank  far  in  the  interior,  through  tropical  forest 
and  jungle,  is  largely  responsible  for  the  high  cost  of  production,  and 
this  cost  is  increasing  as  the  available  supply  of  merchantable  timber 
becomes  more  remote  from  the  banks  of  the  streams.  "  Caoba  " — 
mahogany — is  worth  $120  per  1,000  feet  in  Maracaibo;  cedar,  $65 
per  1,000;  and  "vera,"  $100  per  1,000.  Prices  in  Caracas  for  these 
same  woods  are,  on  an  average,  almost  double. 

Other  forest  products  consist  of  divi-divi,  copaiba  balsam, 
"  Guiana  "  bark,  "  Maracaibo  "  bark,  "  feimarauba  "  bark,  and  orchids. 
Only  the  first  two  items  are  important. 

Exports  of  divi-divi  to  the  United  States  in  1919  were  4,870,539 
pounds,  valued  at  $175,407,  but  they  fell  off  to  3,521,565  pounds, 
valued  at  $89,246,  in  1920.  With  the  exception  of  amounts  shipped 
to  Curasao — all  for  ultimate  transshipment  to  the  United  States,  the 
above  figures  represent  the  total  quantities  collected  in  the  entire 
district: 

Exports  of  balsam  of  copaiba  in  1919  to  the  United  States  were 
28,122  pounds,  valued  at  $14,186.  This  amount  increased  in  1920  to 
50,154  pounds,'  valued  at  $32,J81. 

Coconut  oil  to  the  value  of  $7,496  was  exported  to  the  United 
States  in  1917. 

MINING. 

It  is  said  that  minerals  abound  in  every  one  of  the  Andean  States. 
Coal  of  the  best  quality  found  in  Venezuela  is  known  to  exist  less 
than  40  miles  from  the  city  of  Merida.  There  is  also  a  salt  mine  near 
Merida  and  a  soda  deposit  near  Lagunillas,  a  town  about  20  miles 
from  Merida,  with  which  it  is  now  connected  by  the  new  cart  road. 
There  are  said  to  be  deposits  of  copper,  zinc,  lead,  iron,  and  coal  in 
different  localities  in  the  ranges  of  the  Venezuelan  Andes  in  the  Mara- 
caibo district.  Copper,  lead,  and  silver  mines  were  worked  by  the 
Spaniards  in  colonial  times  in  certain  regions,  but,  judged  from  such 
scant  history  as  exists,  the  work  was  always  on  a  very  small  scale  and 
limited  by  transportation  difficfulties.  As  yet  the  only  mineral  re- 
sources developed  have  been  the  coal  and  petroleum  deposits  of  the 
State  of  Zulia. 

For  an  account  of  petroleum  in  the  Maracaibo  district  the  reader 
is  referred  to  the  general  discussion  of  petroleum  in  Venezuela,  be- 
ginning on  page  92. 

ASPHALT  RESOURCES. 

The  asphalt  resources  of  the  Maracaibo  region  are  not  so  important 
as  was  believed  only  a  few  years  ago.  In  fact  they  have  become  in- 
significant in  comparison  with  the  petroleum  and  coal  resources 
which  are  expected  to  yield  many  millions  of  dollars  in  the  near 
future.  Asphalt  seepages  (such  as  the  one  at  Mene  Grrande)  that  were 
believed  to  be  of  immense  value  are  found  to  be  actually  of  small 
importance.  The  largest  deposits  of  asphalt  appear  to  exist  in  the 
region  of  Carrasquero,  near  the  'River  Limon,  northwest  of  Mara- 
caibo. These  deposits  are  leased  by  the  Zulia  Asphalt  Co.,  a  sub- 
sidiary of  the  Caribbean  Coal  Co.,  and  it  is  planned  to  exploit  them 
together  with  the  coal  fields  which  this  latter  company  will  open  up 


214     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

in  the  same  region  by  means  of  the  new  railway  projected  from  Car- 
rasquero  on  the  River  Limon  to  the  port  of  Castilletes  Bay  on  the 
Goajira  Peninsula.     (See  below.) 

COAL  MINING. 

Deposits  of  coal  are  found  in  several  places  in  the  Maracaibo  dis- 
trict, around  the  lake  and  in  the  mountainous  regions  of  the  Andes. 
There  are  known  beds  near  Rubio  in  the  State  of  Tachira,  and  coal  is 
known  to  exist  in  all  three  of  the  Andean  States. 

DEPOSITS   ON    ISLAND   OF   TOAS. 

Coal  beds  are  found  on  Toas  Island,  lying  just  off  the  extreme 
western  end  of  the  channel  of  Lake  Maracaibo,  opposite  the  town  of 
San  Rafael  de  Mojan.  These  are  the  oldest  known  coal  beds  in  this 
section  of  Venezuela,  having  been  used  by  Government  vessels  as  far 
back  as  1850,  when  the  French  war  vessel  Mogador  made  an  exami- 
nation of  the  coal  deposits  of  the  Caribbean  Sea,  paying  special 
attention  to  those  of  Coro  and  of  Toas  Island.  The  outcroppings 
occur  on  the  north  side  of  the  island  at  the  lake  shore  and  run  to 
the  west  through  a  lime  formation  of  such  porous  character  that  it  is 
easily  penetrated  by  the  salt  water,  making  all  workings,  except 
tho^e  of  purely  surface  character,  impossible.  Also,  the  coal  is  said 
to  contain  such  a  high  percentage  of  sulphur  as  to  unfit  it  for  con- 
tinued use  under  boilers.  German  merchants  of  Maracaibo  had 
experts  examine  these  coal  beds  many  years  ago,  and  their  working 
was  pronounced  impossible,  from  a  commercial  standpoint,  at  that 
time.  They  have  not  been  exploited  in  modern  times,  and  all  lake 
boats  on  Lake  Maracaibo  now  burn  the  more  easily  obtained  fuel  oil 
produced  by  the  local  wells  of  the  Caribbean  Petroleum  Co. 

DEPOSITS    OF    RIVER    LIMON    DISTRICT. 

Thirty  years  ago  a  small  railway  was  built  by  the  Zulia  Asphalt 
Co.  from  the  town  of  Carrasquero,  on  the  River  Limon,  southwest 
to  the  asphalt  lake  of  Tule.  This  line  has  been  leased  by  the  Carib- 
bean Coal  Co.,  an  American  company,  with  its  stock  quoted  on  the 
Maracaibo  market,  and,  as  the  waters  of  the  Limon  empty  into  the 
too  shallow  Lake  Maracaibo,  a  concession  has  been  secured  for  the 
continuation  of  the  railway  from  Carrasquero  to  Punta  Castilletes 
on  the  deep  waters  of  the  Gulf  of  Venezuela,  where  there  is  a  good 
harbor.  This  project  involves  approximately  90  miles  of  new  con- 
struction, the  mines  being  125  miles  distant. 

The  coal  found  in  the  River  Limori  region  is  said  to  be  almost,  if 
not  quite,  equal  to  "  Pocahontas  "  coal,  and  it  is  believed  that  500,000 
tons  per  annum  can  be  delivered  at  seaboard  when  the  railway  to 
Castilletes  is  completed.  The  Maracaibo  Coal  Co.,  another  sub- 
sidiary of  the  Caribbean  Coal  Co.,  will  mine  the  coal. 

The  concession  for  the  new  railway  was  approved  by  the  Vene- 
zuelan Congress  in  1917.  The  authorized  specifications  of  the  road 
were:  Gauge,  1.435  meters  (standard  American  gauge) ;  rails,  29.76 
kilos  (1  kilo=2.2046  pounds)  per  meter  (1  meter=3.28  feet), 
minimum  allowed;  maximum  grade,  3  per  cent;  minimum  radius 


MARACAIBO  COMMERCIAL  DISTRICT.  215 

of  curves,  100  meters.  The  passenger  tariff  was  to  be  fixed  at  0.25 
bolivar  (4.82  cents)  per  kilometer,  or  about  4  cents  per  mile. 
Freight  rates  were  fixed  at  0.60  bolivar  per  metric  to'n  (1  metric 
ton=2,205  pounds)  per  kilometer,  equal  to  7.24  cents  per  ton-mile. 

Exemption  from  all  import  duties  on  machinery,  equipment,  and 
supplies  used  in  the  construction  of  the  line  was  granted  for  the 
period  of  25  years,  with  permission  for  the  erection  of  all  shops, 
warehouses,  stations,  telegraph  and  telephone  lines,  etc.,  necessary 
for  the  operation  of  the  railway.  Vessels  engaged  in  the  import  and 
export  trade  for  the  company  are  not  obliged  to  clear  at  other 
customhouses.  The  company  was  authorized  to  construct  wharves, 
piers,  docks,  etc.,  at  Castilletes  Bay  and  in  the  River  Limon,  to  under- 
take the  .work  of  improving  existing  port  facilities,  to  build  a  new 
customhouse  at  Castilletes  for  the  use  of  the  Grovernment,  and  also  to 
provide  a  sufiicient  water-supply  system  for  the  new  port. 

All  machinery,  agricultural  implements,  etc.,  used  lor  the  develop- 
ment of  the  country  were  to  be  transporlj^  at  50  per  cent  of  the 
regular  tariff  rates.  Mail  was  to  be  carried  by  the  railway  free  of* 
charge  for  the  Government;  Government  employees  were  to  travel 
at  half  rates,  and  troops  and  their  equipment,  munitions,  etc.,  at  one- 
third  of  the  regular  rate  (in  time  of  war,  at  one-sixth  of  the  usual 
rate). 

Other  clauses  of  the  contract  provided  for  freedom  from  all  special 
taxes  that  might  constitute  a  direct  burden  on  the  company,  but 
all  ordinary  existing  taxes  were  to  be  paid.  The  company  has  the 
right  to  erect  and  estq^blish  electric  lighting  plants  and  other  public 
works,  with  an  exclusive  concession  for  10  years.  The  contract,  or 
concession,  was  made  transferable  with  the  consent  of  the  Govern- 
ment. 

The  time  allowed  for  dredging  and  port  work  at  Castilletes  and 
the  deepening  of  the  river  port  and  channel  of  the  River  Limon  was 
stated  at  10  years  from  the  date  of  contract.  All  plans  of  construc- 
tion must  meet  with  the  approval  of  the  Minister  of  Public  Works. 

The  payments  to  the  Government  were  placed  at  2,500  bolivars 
($482)  per  month  for  10  years  from  the  date  of  the  first  shipment 
of  coal  from  Castilletes,  and  500  bolivars  ($96)  per  month  thereafter 
for  the  remainder  of  the  concession. 

The  district  is  thinly  populated  and  the  success  of  the  scheme 
depends  on  the  value  and  extent  of  the  coal  deposits  and  the  ability 
of  the  company  to  mine  this  coal  successfully  and  transport  it  to 
tidewater  for  rapid  marketing.  The  plans  of  the  railway  call  for  a 
daily  one-way  operating  capacity  of  10,000  tons  of  coal.  The  main 
line  from  Carrasquero  to  Castilletes  is  to  be  93  miles  long,  and  the 
branches  have  an  additional  35  miles,  including  the  old  line  leased 
by  the  company  from  the  river  to  the  asp>halt  lake  of  Tule. 

In  August,  1920,  the  capital  of  the  Caribbean  Coal  Co.  was  given 
in  Maracaibo  as  $2,000,000,  divided  into  shares  of  $1  each  and  quoted 
on  the  local  stock  market  at  $6  to  $8  per  share,  there  being  consider- 
able local  speculation  in  this  stock.  The  stock  is  not  quoted  in 
Caracas. 

The  first  authentic  discovery  of  the  coal  deposits  of  this  region. 
which  lie  in  the  districts  of  Mara  and  Maracaibo,  of  the  State  of 
Zulia — south  of  the  district  of  Paez,  through  which  the  railway  will 


216     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

run  to  reach  Castilletes — was  in  the  years  between  1830  and  1834, 
when  raiding  Goajira  Indians  were  pursued  by  ranchers  of  San 
Rafael  de  Mojan  to  recover  stolen  stock  driven  off  by  the  Indians 
toward  the  Peri j a  Range,  which  divides  Venezuela  from  Colombia. 
This  range  sends  off  shoots  in  the  shape  of  ranges  of  low  hills  which 
run  northeast  by  southwest  and  form  the  valleys  of  the  Rivers  Gua- 
sare,  Socuy,  and  Tule,  all  of  which  are  tributaries  of  the  Limon, 
the  Tule  flowing  into  the  swamp  of  the  same  name  south  of  the 
Socuy,  where  the  asphalt  lake  mentioned  is  located,  the  asphalt 
being  the  objective  of  the  old  railway  from  the  town  of  Carrasquero, 
situated  on  the  Limon  to  the  northeast. 

On  their  way  back  from  an  unsuccessful  pursuit  of  the  Indians 
as  far  as  the  high  range  of  Perija  the  ranchers  encountered  a  phe- 
nomenon that  filled  them  with  terror.  In  the  bottom  of  a  deep 
ravine  they  saw  a  cave  out  of  which  came  flame  and  smoke.  The 
expedition  ended  there,  and  nothing  was  done  in  the  way  of  inves- 
tigation until  15  years  later,  when,  during  the  earthquake  of  May, 
1849,  the  people  of  Mojan  saw  fire  lighting  the  sky  at  night  in  this 
direction,  and  during  the  day  large  clouds  of  smoke.  The  country 
to  be  traversed  between  the  coast  of  the  lake  and  this  region  is  very 
difficult — covered  with  tropical  forest,  cut  by  many  small  and  large 
l^avines  and  washouts,  and  very  unhealthful.  The  reputation  of  the 
Goajiras  also  had  its  effect  in  deterring  further  exploration  at  that 
time.  It  was  not  until  the  year  1876  that  the  Venezuelan  engineer, 
Briceno  Mendez,  interested  the  Government  of  the  State  of  Zulia  to 
the  extent  of  equipping  an  expedition  to  explore  the  region. 

From  Maracaibo  the  land  is  fairly  level  as  far  as  the  region  lying 
just  south  of  the  Tule  swamp,  about  80  miles  due  west  of  the  capital. 
An  asphalt  seepage,  or  lake,  exists  30  miles  east  of  Iragorri,  on  the 
road  to  Maracaibo,  and  is  said  to  cover  an  extent  of  6,000  square 
meters  (1  square  meter =10.76  square  feet).  Asphalt  is  also  found 
in  many  places  along  the  Tule  River  farther  west.  The  first  out- 
croppings  of  coal  were  found  by  Mendez  Just  after  crossing  the  Tule 
River  near  Guasdual,  south  of  the  Tule  Lake.  Explorations  uncov- 
ered 14  veins  of  coal  along  the  Tule,  all  running  apparently  from 
north-northeast  to  south-southwest,  and  their  depth  and  width  could 
be  judged  at  the  points  where  they  crossed  the  river  bed.  The  course 
of  the  river  was  found  lined  with  coal  for  a  distance  of  10  kilo- 
meters (1  kilometer =0.62  mile),  and  also  the  course  of  the  Riecito 
River,  an  affluent  of  the  Tule  on  the  northern  side,  being  followed 
for  12  kilometers  in  plain  sight.  Coal  was  found  in  the  form  of 
heavy  outcroppings  extending  over  an  area  estimated  as  being  not 
less  than  300  square  miles  and  reaching  as  far  to  the  north  as  the 
Socuy  River. 

Mendez  found  three  veins  of  coal  on  fire — one  near  Guadual,  an- 
other 6  miles  farther  south  on  the  Tule,  and  another  farther  to  the 
northwest.  The  last-named  is  the  largest  and  is  thought  td  be  the 
site  of  the  original  discovery  of  the  so-called  volcano  by  the  early 
ranchers  who  pursued  the  Goajiras. 

Mendez  characterized  this  coal  as  being  superior  to  the  Coro  grades 
and  very  like  the  well-known  English  "cannel  coal"  in  structure, 
but  less  dense  and  not  so  heavily  charged  with  bitumen.  He  was 
convinced  from  his  knowledge  of  the  formation  that  still  greater 


MARACAIBO   COMMERCIAL  DISTRICT.  217 

deposits  of  coal  would  be  discovered  farther  northwest  along  the 
Socuy  River,  which  is  the  region  where  the  chief  deposits  are  known 
to  exist  to-day  and  where  the  new  mines  have  been  opened. 

Deposits  of  coal  also  are  known  to  exist  between  the  Rivers  Negro 
and  Santa  Ana,  south  of  the  town  of  Machiques.  During  recent 
years  the  entire  territory  has  been  explored  for  petroleum  signs  on 
both  the  east  and  the  west  sides  of  the  lake  and  as  far  inland  as  the 
headwaters  of  the  Catatumbo  River  and  the  mountain  range  dividing 
Venezuela  and  Colo^nbia. 

PROPOSED  COAL  PORT  OF  CASTILLETES. 

The  distance  to  Colon  by  sea  from  the  proposed  coal  port  of 
Castilletes  is  only  595  miles  by  sea.  There  is  at  present  a  depth  of 
16  feet  in  the  roadstead,  which  the  company  plans  to  deepen  to  35 
feet  for  ocean  tonnage.  The  construction  of  the  proposed  railway 
and  port  and  the  opening  of  these  coal  deposits  on  a  large  scale  would 
constitute  the  largest  industrial  development  contemplated  in  Vene- 
zuela for  some  time.  Coaling  facilities  would  affect  the  prosperity 
of  Curagao  adversely  and  would  also  bring  about  changes  in  the  trade 
of  Maracaibo  if  the  line  were  to  be  extended  from  the  coal  fields  east 
to  Maracaibo  over  the  easy  route  presented  by  the  level  topography 
of  the  country  to  the  lake.  The  freight  rates  provided  for  in  the 
contract  with  the  Government  are  the  lowest  of  any  line  in  Venezuela. 
Such  a  railway  (from  Maracaibo  to  Castilletes)  would  provide  trans- 
portation directly  to  deep  water  for  the  products  of  the  Maracaibo 
district,  which  now  have  to  be  transferred  from  the  port  on  the  lake 
to  Curagao  for  transshipment  to  the  United  States  and  Europe. 
Exports  from  Maracaibo  must  now  be  carried  in  small  vessels  of 
less  than  12-foot  draft  on  account  of  the  shallow  entrance  to  Lake 
Maracaibo. 

Judging  from  all  reports  on  the  subject,  it  would  appear  as  if 
these  coal  fields  were  by  far  the  most  important  (on  account  of  their 
size 'and  the  excellent  quality  of  the  coal)  of  any  within  easy  distance 
of  the  Panama  Canal,  with  the  possible  exception  of  those  of  the 
Cauca  Valley  at  Cali,  in  Colombia,  accessible  by  railway  from  the 
Pacific  coast. 

The  contract  for  the  new  railway  was  signed  by  the  President  of 

Venezuela  on  July  3,  1917,  the  company  having  two  years  in  which 

to  begin  construction  operations  and  five  years  in  which  to  complete 

the  line.^ 

RAILWAYS. 

The  railways  of  the  Maracaibo  commercial  district  number  three, 
leading  from  lake  or  river  ports  (touched  by  the  lake  steamers  from 
Maracaibo)  to  the  foot  of  the  mountains  in  the  direction  of  the 
respective  capitals  of  the  three  Andean  States.  None  of  these  roads 
has  as  yet  reached  its  objective  on  account  of  the  nature  of  the 
terrain  encountered,  making  for  heavy  cost  of  construction.     Cart 

» The  coal  lands  are  controlled  by  the  old  Maracaibo  Coal  Co..  which  has  been  absorbed 
by  the  Caribbean  Coal  Co.,  together  with  the  old  Zulia  Asphalt  Co.  It  is  understood  that 
the  Caribbean  Coal  Co.  will  operate  the  railway  and  the  port  at  Castilletes  and  attend  to 
the  marketing  and  transport  of  the  coal  and  asphalt  produced  by  the  two  subsidiaries 
mentioned.  There  is  no  recent  information  on  hand  to  indicate  any  active  development 
to  date — that  is,  up  to  December  31,  1920. 


218     VENEZUELA:   A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

roads  are  now  under  active  construction  by  all  three  States  to  con- 
nect the  capitals  with  the  present  ends  of  the  railways  that  serve 
them. 

GRAN  FERROCARRIL  DE  LA  CEIBA. 

The  Gran  Ferrocarril  de  La  Ceiba  is  owned  by  a  private  corpora- 
tion and  runs  from  the  lake  port  of  La  Ceiba  (about  88  miles  by 
water  from  Maracaibo)  to  Motatan,  the  present  end  of  the  line,  20 
miles  from  the  capital  city  of  Trujillo,  with  which  it  is  connected 
by  a  cart  road,  with  a  branch  leading  to  the  important  town  of 
Valera,  6  miles  from  Trujillo. 

The  total  rail  length  of  the  line  is  81.36  kilometers  (1  kilome- 
ter=:0.62  mile)  for  the  main  line,  with  an  additional  3.67  kilometers 
to  the  sugar  central  "  La  Ceiba  "  near  the  port.  The  gauge  is  3  feet, 
the  rail  weight  40  pounds  to  the  yard,  the  maximum  grade  3  per 
cent,  the  minimum  radius  of  curve  80  meters  (1  meter =3.28  feet), 
^  and  there  are  37  bridges  with  a  combined  length  of  1,356  meters. 
The  rolling  stock  consists  of  6  locomotives  (with  a  total  weight  of 
135  tons),  7  passenger  coaches,  7  flat  cars,  34  box  cars,  and  2  stock 
cars.  (No  new  equipment  has  been  provided  since  the  outbreak  of 
the  war  on  account  of  the  high  prices  and  delayed  deliveries.)  Pres- 
ent equipment  is  sufficient  to  take  care  of  present  traffic  needs.  The 
passenger  tariff  equals  5.3  cents  per  mile  for  first  class  and  3.8  cents 
per  mile  for  second  class.  The  freight  rate  is  equal  to  31  cents 
per  ton-mile. 

The  capital  investment  and  capital  stock  are  both  stated  as  8,000,- 
000  bolivars  ($1,544,000).  The  cost  of  construction  was  98,328 
bolivars  ($18,977)  per  kilometer.  Shares  are  of  a  par  value  of 
600  bolivars  ($96)  each.  In  August,  1920,  these  were  quoted  on 
the  Maracaibo  exchange  at  350  to  360  bolivars  ($68  to  $69).  Con- 
struction was  begun  in  1895  and  the  line  opened  for  passenger  traffic 
in  1899,  passenger  traffic  increasing  from  a  little  over  1,000  persons 
a  year  to  nearly  16,000  persons  in  1916.  The  best  freight  years  were 
1912  and  1919,  when  more  than  21,000  tons  were  transported.  When 
this  Kne  was  only  half  of  its  present  length  and  the  capital  invested 
only  2,000,000  bolivars  ($386,000),  it  earned  17^  per  cent,  whereas 
now  its  returns  are  only  about  5^  per  cent.  In  1912  the  road  car- 
ried 21,051  tons  of  freight,  and  in  1915  only  14,874  tons.  Like  most 
Venezuelan  railways,  the  line  suffers  from  the  competition  of  the 
pack  mule  and  the  two- wheeled  cart  of  the  country.  Persons  com- 
municating with  the  company  should  address  Sr.  R.  BellosQ  Eincon, 
Gerente,  Maracaibo,  Venezuela.  There  are,  at  present,  no  immedi- 
ate plans  for  the  continuance  of  the  line  to  Trujillo. 

GRAN    FERROCARRIL   DEL  TACHIRA. 

The  Gran  Ferrocarril  del  Tachira,  120  kilometers  (1  kilometer = 
0.62  mile)  in  length,  runs  from  Encontrados  on  the  Catatumbo  River 
(which  is  navigable  up  from  Lake  Maracaibo  for  shallow-draft  lake 
steamers)  southward  to  its  present  terminus  at  the  station  of  La 
Uraca  in  the  direction  of  San  Cristobal,  the  capital  of  the  State  of 
Tachira.  It  is  the  principal  outlet  for  the  Venezuelan  State  of 
Tachira  and  the  passenger  traffic  of  the  Colombian  Department  of 
Norte  de  Santander.    The  gauge  is  1  meter   (3.28  feet),  the  rail 


MARACAIBO   COMMERCIAL  DISTRICT.  219 

weighs  40  pounds  to  the  yard,  and  the  maximum  grade  is  2  per  cent, 
with  a  minimum  curve  radius  of  80  meters.  There  are  six  bridges, 
with  a  total  length  of  332  meters.  The  country  traversed  for  a  dis- 
tance of  110  kilometers  is  fairly  level,  the  last  10  kilometers  of  the 
line  being  in  broken  ground.  Difficulties  of  construction  will  be- 
gin beyond  the  present  end  of  the  line  in  the  effort  to  reach  the  ulti- 
mate objective  of  San  Cristobal,  with  which  the  railway  terminus 
is  now  connected  by  a  wagon  road,  with  a  branch  to  the  Colombian 
frontier  at  Urena. 

The  average  construction  cost  per  kilometer  is  given  as  only  61,135 
bolivars  ($11,799)  for  the  first  110  kilometers  of  the  line,  but  the 
cost  of  the  other  10  kilometers  brought  this  average  up  to  93,333 
bolivars  ($18,013). 

Kolling  stock  consists  of  7  locomotives  (with  a  total  weight  of  210 
tons) ,  6  passenger  coaches,  34  flat  cars,  32  box  cars,  and  4  stock  cars. 
The  passenger  tariff  is  equal  to  6.8  cents  per  mile  for  first  class  and 
•  3.4  cents  per  mile  for  second  class.  The  northbound,  or  export, 
freight  rate  is  21  cents  per  ton-mile,  and  the  southbound,  or  im- 
port, freight  rate  is  equal  to  35  cents  per  ton-mile.  The  amount  of 
cargo  carried  annually  varies  greatly,  depending  upon  the  price  and 
size  of  the  local  coffee  crop.  In  1902  the  line  carried  a  total  of 
11,113  tons,  and  in  1903,  27,582  tons,  the  latter  being  the  highest 
tonnage  ever  transported.  The  road  was  opened  to  traffic  in  1896. 
Passenger  traffic  has  increased  from  a  little  over  1,000  persons  to 
the  high  figure  of  19,070  in  1919. 

The  capital  stock  of  the  company  is  7,000,000  bolivars  ($1,351,000), 
fully  paid  in.  American  interests  own  some  of  the  stock  and,  con- 
trary to  the  usual  rule  in  Venezuela,  nearly  all  the  material  and 
equipment  is  of  American  manufacture.  Because  of  its  moderate 
capitalization  and  low  construction  cost,  this  railway  shows  better 
returns  than  any  of  the  other  lines  in  the  country.  The  gross  earn- 
ings for  1913  were  10.88  per  cent,  compared  with  8  per  cent  for  the 
next  best  road.  The  principal  difficulties  of  this  line  are  with  the 
floods  of  the  Catatumbo  River,  which  threaten  the  destruction  of 
the  river  port  of  Encontrados;  and  the  greatest  obstacle  to  the 
growth  of  its  traffic  is  the  fact  that  the  merchandise  destined  for 
its  territory  must  undergo  so  many  handlings  en  route  that  the  cost 
is  greatly  increased  and  the  consumption  correspondingly  dimin- 
ished. Gross  returns  for  1919  were  1,571,381  bolivars  ($303,277) 
arid  the  operating  expenses  625,638  bolivars  ($120,748). 

Persons  communicating  with  the  company  should  address  Sr. 
Pedro  N.  Olivares,  Gerente,  Maracaibo,  Venezuela.  The  shops  are 
located  at  Encontrados. 

At  the  present  time  there  are  no  plans  for  the  continuation  of  the 
line  to  San  Cristobal.  The  State  government  is  working  on  the 
repair  and  conditioning  of  the  old  cart  road  from  San  Cristobal  to 
La  Uraca. 

FERROCARRIL  DE  SANTA  BARBARA  A  EL  VIGIA. 

The  Ferrocarril  de  Santa  Barbara  a  El  Vigia  is  now  owned  by  the 
Venezuelan  Government,  which  took  it  over  from  the  French  com- 
pany that  started  its  construction  in  1892  under  a  guaranty.  Its  op- 
eration by  the  Government  dates  from  1895.     In  1892  the  road  was 


220     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

partly  destroyed  by  an  inundation  of  the  Chania  River;  from  that 
year  locomotives  operated  only  as  far  as  kilometer  37  and  cars  were 
drawn  by  mules  to  kilometer  47,  where  pack-mule  transport  began 
for  Merida,  the  line's  ultimate  objective  in  the  State  of  Merida.  In 
June  and  July  of  1915  new  floods  destroyed  still  more  of  the  line. 
The  Government  has  appropriated  its  revenue  to  new  construction 
work,  and  the  work  has  progressed  to  the  present  terminus  at  El 
Vigia,  making  a  total  length  of  60  kilometers  (1  kilometer =0.62 
mile) .  Of  the  three  lines  owned  by  the  Government  it  is  the  only  one 
operated  at  a  profit.  It  is  not  managed  directly,  but  is  leased  to  J.  A. 
Eedondo,  Santa  Barbara,  Venezuela. 

The  line  runs  from  Santa  Barbara  (at  the  head  of  river  naviga- 
tion on, the  Escalante  Eiver)  to  El  Vigia,  beyond  which  the  heaviest 
construction  work  to  be  encountered  in  railway  work  in  the 
Venezuelan  Andes  is  found,  as  two  ranges  of  mountains  have  to  be 
crossed  before  this  line  can  reach  Merida.  The  gauge  is  1  meter  (3.28 
feet) ,  the  weight  of  rail  40  pounds  to  the  yard,  the  heaviest  gradient 
2  per  cent,  and  the  minimum  curve  radius  100  meters.  There  are  15 
bridges,  with  a  total  length  of  138  meters.  The  rolling  stock  consists 
of  5  locomotives  (with  a  total  weight  of  124  tons),  6  passenger 
cars,  12  flat  cars,  14  box  cars,  and  1  stock  car,  this  equipment  being 
sufficient  for  the  present  traffic  needs  of  the  line,  which  is  the  principal 
outlet  for  the  products  of  the  State  of  Merida  and  the  tributary  ter- 
ritory on  the  eastern  side  of  the  main  range  east  of  Merida.  The 
passenger  rate  is  6  cents  per  mile  for  first  class  and  4  cents  per  mile 
for  second  class.  The  freight  rate  is  equivelent  to  39  cents  per  ton- 
mile  for  import  cargo,  and  34  cents  per  ton-mile  for  export  freight. 

The  capital  of  the  road  and  the  construction  cost  are  stated  as 
3,021,880  bolivars  ($583,223).  This  cost  equals  50,365  bolivars 
($9,720)  per  kilometer,  the  lowest  for  any  railway  in  Venezuela.  In 
1911  and  1914  the  line  carried  a  total  of  more  than  13,000  tons  of 
freight.  The  highest  total  was  in  1919,  when  17,821  tons  were 
handled,  the  total  returns  from  all  sources  being  662,479  bolivars 
($127,858)  and  the  expenses  333,337  bolivars  ($64,334). 

The  State  government  is  constructing  a  cart  road  from  Merida  to 
the  end  of  this  line  at  El  Vigia,  the  road  having  reached  Lagunillas 
in  November,  1920.  (For  freight  rates  on  coffee,  etc.,  for  export,  see 
page  195.) 

OUTLOOK  FOE  FUTURE. 

No  new  railway  construction  is  contemplated  at  the  present  time 
for  the  Maracaibo  district,  except  the  line  projected  by  the  Caribbean 
Coal  Co.  (seep.  214). 

To  connect  thfe  three  Andean  capitals  of  the  district  with  Lake 
Maracaibo  serious  difficulties  of  railway  construction  are  encountered. 
There  are  first  the  lowlands  of  the  immediate  lake  and  river  region 
to  be  crossed,  where  the  terrible  tropical  climate  and  floods  during 
the  rainy  season  make  for  delays  and  excessive  costs.  When  the 
route  is  once  out  of  the  lowlands,  the  wall  of  the  mountains  is  en- 
countered, necessitating  heavy  rock  work,  heavy  grades,  and  the  usual 
difficulties  attending  railway  building  in  a  mountainous  country. 
There  is  also  the  great  scarcity  of  labor,  not  to  mention  the  cost  of 
transshipment  of  material  and  supplies  at  Curasao  and  again  at 


MARACAIBO   COMMERCIAL  DISTRICT. 


221 


Maracaibo.  Immediate  improvements  will  be  limited  to  the  new  cart 
roads  which  the  Government  has  been  so  successful  in  constructing  in 
other  parts  of  the  country,  and  over  which  the  mule  carts  can  com- 
pete with  the  railways,  even  for  long  hauls,  such  as  that  from  Caracas 
to  Valencia.  On  the  completion  of  these  roads,  passenger  traffic  will 
follow  the  same  lines  as  in  other  more  developed  regions.  The  light 
American  automobile  will  be  universally  used. 

INDUSTRIES. 

The  following  are  the  companies  listed  on  the  Maracaibo  stock 
market : 


Namo  of  companj. 


Gran  Ferrocarrll  del  Tachira 

Gran  Ferrocarril  d«  La  Ceiba 

Central  Amcarero  Zulla 

La  Hispaoo-Venezolana 

Cervecerla  de  Maracaibo 

Petrollfera  Rio  PauJI 

Same,  subscribed .' 

Banco  de  Maracaibo 

Central  Ceiba 

Union  Agrf cola  del  Zulia 

Puerto  de  La  Ceiba 

Seguros  Marltimos  de  Maracaibo. 

Tranvlas  de  Maracaibo 

Proveedora  de  Agua 

Banco  Comercial 

Seguros  Marftiinos  del  Zulia 

Aserradero  de  Maracaibo 

Central  Gran  Via 

Central  Venezuela 

Maracaibo  Electric  Light 

Caribbean  Coal  Co 


Capital. 


Bolivars. 
11,300,000 
8,000,000 
6,500,000 
1,750,000 
1,728,000 
1,500,000 


1,250,000 

1,000,000 

1,000,000 

800,000 

500,000 

400,000 

400,000 

400,000 

250,000 

2,000,000 

2,000,000 

7,800,000 

«  500,000 

12,000,000 


Nominal 

Talue  of 

share. 


Bolivarg. 
400 
500 
400 
500 
1,000 
500 


333i 
^  26 
400 
2,000 
500 
400 
400 
200 
500 
500 
500 
520 
»$1 
«ll 


Quotations, 

August, 

1920. 

Bolivars. 

340- 

350 

350- 

360 

210- 

220 

(') 

2,250-2,300 

240- 

270 

700- 

800 

360- 

400 

5-6 

100- 

105 

1,000-1,200 

800-1,000 

1200.85 

70- 

80 

200- 

240 

500- 

520 

480- 

500 

500- 

525 

1,550-1,600 

375- 

400 

6- 

t 

In  liquidation. 


«  United  States  currency. 


The  Maracaibo  brewery  ships  bottled  beer  to  the  cities  of  th^ 
Andes  and  to  Cucuta,  in  Colombia.  All  materials  for  brewing  are 
imported  from  the  United  States.  There  are  four  small  cotton  gins 
and  cottonseed-oil  mills  making  oil  for  the  local  soap,  factories,  of 
which  there  are  four  or  five  in  operation  making  cheap  grades  of 
soap  for  the  local  and  interior  markets.  The  chemicals  used  in  soap 
making  are  all  imported  from  the  United  States  since  the  war.  The 
largest  sawmill  is  that  of  the  Aserradero  Maracaibo,  capitalized  at 
2,000,000  bolivars  ($386,000). 

Stocks  of  the  oil  companies  listed  are  quoted  in  New  York  or  Lon- 
don, as  the  case  may  be. 

Connected  with  the  two  larger  sawmills  are  woodworking  shops 
turning  out  moldings,  sash  and  door  products,  and  furniture.  Fur- 
niture is  also  made  in  small  establishments  all  over  the  district  for 
the  local  demand  and  is  of  rather  good  quality,  as  the  native  woods 
resist  the  attacks  of  the  white  ant  and  the  boring  weevil,  so  destruc- 
tive to  the  softer  woods.  There  is  little  demand  for  imported  furni- 
ture, apparently  on  account  of  the  high  import  duty,  which,  includ- 
ing  surtaxes,  amounts  to  $10.2fe  per  100  pounds  of  gross  weight  on 
furniture  of  conmion  wood,  willow,  ru^^  or  cane,  and  $17«1S  on 


222     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

furniture  of  common  wood  gilded,  or  of  fine  wood,  and  on  all  up- 
holstered furniture.  Upholstering  materials  and  fittings  are  im- 
ported in  small  quantities  by  the  wholesale  importers,  who  retail 
them  to  the  small  shops. 

Small  shops  for  making  carts,  carriages,  etc.,  are  also  found  all 
over  the  district.  The  axles  and  fittings  are  imported  by  the  hard- 
ware dealers. 

Two  tanneries  supply  the  local  market  with  the  coarser  grades  of 
leather,  used  principally  for  the  universal  sandal,  or  "  alpar^ata,"  of 
the  people.  The  finer  grades  of  shoe  leather  and  shoe  findings  are 
imported  from  the  United  States.  All  saddle  and  harness  work  is 
also  done  locally.  The  boot  and  shoe  industry  is  protected  in  Vene- 
zuela by  a  customs  duty  of  $274.10,  including  surtaxes,  per  100 
pounds  of  gross  weight.  Nearly  all  of  the  shoes  and  slippers  re- 
quired in  the  district  are  produced  by  small  shoe  shops,  which  turn 
out  a  ve^  good  product  at  prices  below  the  cost  of  the  imported 
article.  The  usual  practice  by  people  who  can  aiford  to  wear  shoes  is 
to  have  their  footwear  made  to  order  as  required. 

Practically  all  of  the  straw  hats,  which  are  worn  all  the  year 
round,  are  also  produced  locally,  the  straw  braid  being  imported 
from  the  United  States.  The  small  numbers  of  felt  hats  required 
are  imported  from  the  United  States,  England,  and  Italy.  Felt 
hats  are  usually  shipped  in  small  lots  by  parcel  post  and  should  be 
packed  in  cylindrical  bales,  with  the  hats  placed  one  inside  of  the 
other  to  fit  tightly,  attention  being  given  to  relative  sizes  when  the 
packing  is  done.  Inside  of  the  outer  protective  covering  of  good 
jute  there  is  placed  a  "  se wed-to-fit "  waterproof  lining.  If  properly 
and  carefully  packed,  the  finest  felt  hats  need  no  blocking  on  receipt 
by  buyer.  The  Borcelino  factory  of  Italy,  which  does  a  large  business 
all  over  South  America  in  lightweight,  fine-quality  felt  hats,  packs 
in  this  manner. 

Clay  and  cement  bricks  and  tiles  are  manufactured  locally  in  large 
quantities  in  small  yards.  Most  of  the  more  modern  buildings  have 
cement  or  cement-tile  floors  and  tile  roofs. 

Until  very  recently,  all  clothing  was  made  up  locally,  men's  suits 
being  made  by  local  tailors  in  small  shops.  During  the  last  two 
years  the  ready-made  lightweight  suits,  such  as  Palm  Beach,  etc., 
have  had  a  considerable  sale,  the  suits  being  imported  from  the 
United  States.  On  light  material  the  native  tailors  do  very  good 
work,  and.  thoujgh  the  goods  is  somewhat  more  expensive  than  in 
the  United  States,  the  cost  of  making  up  is  so  low  that  clothing 
costs  the  wearer  less  in  the  end. 

BANKING. 

The  only  banks  of  the  district  are  located  in  Maracaibo,  though 
the  Banco  de  Venezuela  and  the  Banco  de  Caracas,  the  two  largest 
native  institutions  with  head  offices  in  Caracas,  maintain  branches 
in  Maracaibo  and  agencies  in  Trujillo,  Valera,  Merida,  and  San 
Cristobal.  There  are  two  purely  local  native  banks,  the  Banco  de 
Maracaibo  and  the  B$inco  Comercial,  and  two  native  insurance  com- 
panies, the  Conapanfa  de  Seguros  Maritimos  de  Maracaibo  and  the 
Compaiiia   de   Seguros  Maritimos  del  Zulia,  the   former  with  a 


MARACAIBO   COMMERCIAL  DISTRICT.  223 

capital  of  500,000  bolivars  ($96,600)  and  the  latter  with  a  capital  of 
250,000  bolivars  ($48,250),  and  both  doing  a  general  marine-insur- 
ance business  covering  shipments  throughout  the  district  and  coast- 
wise in  Venezuela.  The  Maracaibo  Marine  Insurance  Co.  (Cla.  de 
Seguros  Maritimos  de  Maracaibo)  also  covers  ocean  shipments  to 
Curagao  for  transshipment.  Both  insurance  companies  have  been 
doing  a  good  business,  and  their  stocks  are  quoted  above  par,  that  of 
the  first-named  company  being  at  a  100  per  cent  premium  by  the  end 
of  the  first  half  of  1920. 

Prior  to  the  establishment  of  branches  of  foreign  banks  the  two 
native  banks  did  a  small  business  in  comparison  with  the  banl^ing 
business  carried  on  by  the  larger  commercial  houses,  which  attracted 
more  deposits  than  the  banks.  The  amount  for  all  houses  in  1917 
was  estimated  at  about  $2,000,000,  while  the  Banco  de  Maracaibo  had 
only  $86,078,  according  to  its  balance  sheet  of  June  30,  1917. 

The  two  native  banks,  the  Banco  de  Maracaibo  and  the  Banco  Co- 
mercial,  are  banks  of  issue,  and  while  their  notes  are  not  legal  tender 
under  the  national  banking  laws,  such  notes  circulate  freely  in  the 
district,  as  do  the  notes  of  the  two  Caracas  banks,  the  Banco  de 
Venezuela  and  the  Banco  de  Caracas. 

In  the  case  of  exchange  business  with  the  interior,  as  well  as 
foreign  exchange,  the  commercial  houses  formerly  did  a  larger  vol- 
ume of  business  than  the  banks.  Most  of  these  houses  with  head- 
quarters in  Maracaibo  have  branch  offices  in  the  capitals  of  the 
Andean  States  and  in  Cucuta  which  purchase  products  for  export 
for  their  principals  and  sell  for  them  merchandise  imported  through 
Maracaibo  from  abroad.  This  condition  enables  them  to  make  trans- 
fers of  funds  more  cheaply  than  any  other  organization  in  the  dis- 
trict. The  situation  appears  to  have  been  the  same  with  foreign 
exchange.  Exporters  who  were  not  importers  of  merchandise  di- 
rectly, or  those  who  exported  more  than  they  imported  (as  is  the 
usual  case  in  the  interior),  sold  their  drafts  in  the  open  market  in 
Maracaibo  or  their  nearest  large  city,  usually  immediately  after 
credit  was  established  abroad.  The  sale  of  the  drafts  was  generally 
negotiated  by  brokers  soliciting  from  different  purchasers,  very 
often  in  excess  of  the  amount  offered,  drafts  then  being  given  to  those 
offering  the  highest  rates. 

FOREIGN  3ANK  BRANCHES. 

The  first  foreign  branch  bank  to  be  opened  in  Maracaibo  was  that 
of  the  Royal  Bank  of  Canada,  established  in  1917,  followed  by  that 
of  the  National  City  Bank  of  New  York.  The  foreign  banks  make 
exchange  transactions  an  important  part  of  their  business  and  afford 
relief  irom  the  high  rates  previously  charged  by  the  native  institu- 
tions. Greater  credit  facilities  were  also  proviaed  during  the  pros- 
perous years  following  the  armistice;  interest  rates  were  lowered  to 
8  per  cent,  and  collections  were  greatly  facilitated.  Another  advan- 
tage was  the  furnishing  of  more  and  better  commercial  information 
to  American  houses  interested  in  extending  their  trade  in  this  district. 

AMERICAN  MERCANTILE  BANK. 

Later  in  the  same  year  (1917)  a  branch  of  the  Banco  Mercantil 
Americano  de  Caracas,  affiliated  with  the  Mercantile  Bank  of  the 


224     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Americas  of  New  York,  opened  a  branch  in  Maracaibo.  In  1920  an 
agency  was  established  in  Tovar  for  the  purpose  of  better  taking  care 
of  the  coffee  movement  from  the  interior  and  the  local  promicing 
district. 

Until  late  in  1920,  when  its  operation  was  discontinued,  there  was 
also  the  Mercantile  Overseas  Corporation,  affiliated  with  the  Mer- 
cantile Bank  of  the  Americas  and  doing  a  general  merchandising 
and  commission  business,  as  well  as  exporting  the  products  of  the 
country. 

BANCO  DE  MARACAIBO. 

The  Banco  de  Maracaibo  was  founded  in  1889.  Administration  is 
by  three  principal  and  three  alternate  directors,  five  principal  and 
five  alternate  commissioners,  and  two  fiscal  inspectors.  It  is  a  bank 
of  issue.  Operations  are  confined  to, the  city  of  Maracaibo  and  its 
commercial  district. 

The  balance  sheet  as  of  July  31, 1920,  showed :  Bills  in  circulation, 
1,823,000  bolivars  ($351,839),  with  52,000  bolivars  ($10,036)  in  hand; 
capital  stock  issued,  937,500  bolivars  ($180,937),  with  312,500  bolivars 
($60,312)  in  reserve;  reserve  fund,  125,000  bolivars  ($24,125) ;  values 
held  in  custody  for  loans,  1,164,630  bolivars  ($224,774) ;  sight  de- 
posits, 1,146,846  bolivars  ($221,341);  discounts,  12,229  bolivars 
($2,360) ;  term  deposits,  73,004  bolivars  ($14,090). 

The  cash  account  showed  items  of  627,848  bolivars  ($121,175)  in 
gold  coin;  65,568  bolivars  ($12,655)  in  silver  coin;  mortgages  on 
retro-sale  account,  315,000  bolivars  ($60,795);  obligations  due,  Au- 
gust, 1920,  to  March,  1921,  1,228,103  bolivars  ($237,024) ;  open  ac- 
counts on  a  30-day  basis,  988,286  bolivars  ($190,739) ;  loans  of  real 
and  personal  character,  43,971  bolivars  ($8,486) ;  and  loans  of  per- 
sonal indorsement,  890,745  bolivars  ($171,914). 

BANCO  COMERCIAL  DE  BCARACAIBO. 

The  Banco  Comercial  was  established  in  Maracaibo  in  September, 
1915,  with  a  capital  of  400,000  bolivars  ($77,200),  divided  into  shares 
of  200  bolivars  ($39)  each.  At  the  time  of  its  organization  this  bank 
promised  to  become  of  considerable  local  importance,  as  it  offered 
relief  from  the  high  interest  rates  then  prevailing.  On  August  31. 
1920,  this  institution  had  a  total  of  793,240  bolivars  ($153,095)  o^ 
bills  in  circulation,  with  6,760  bolivars  ($1,305)  more  in  reserve. 
The  reserve  fund  was  16,192  bolivars  ($3,125) ;  sight-deposit  ac- 
counts, 55,358  bolivars  ($10,684) ;  in  savings  department.  30,513 
bolivars  ($5,889)  on  deposit.  The  cash  in  gold  was  315,860  Dolivars 
($60,961),  in  silver  coin  48,079  bolivars  ($9,279),  and  in  national- 
bank  bills  of  other  banks  52,735  bolivars  ($10,178).  Loans  on  open- 
account  charge,  secured  by  real  and  personal  property  and  signature, 
amounted  to  94,695  bolivaVs  ($18,276) ;  loans  secured  by  personal 
indorsement  totaled  103,010  bolivars  ($19,881).  The  total  balance 
shown  was  1,349,185  bolivars  ($260,393). 

ASPECTS  OF  RECENT  BANKING  BUSINESS. 

Banks  all  over  Venezuela  have  been  passing  through  a  very  diffi- 
cult period  during  the  last  half  of  1920.  During  the  prosperous  years 
following  the  armistice,  when  the  principal  export  product  of  tjbe 


MARACAIBO   COMMERCIAL  DISTRICT.  225 

Maracaibo  district,  coffee,  was  selling  in  New  York  at  unheard-of 
prices  (averaging  around  26  cents  per  pound),  with  all  other  prod- 
ucts in  proportion,  the  banks  had  their  share  of  increased  movwnent 
of  business  in  all  lines.  ,  All  industrial  stocks,  real  property,  and 
other  values  followed  the  tendency  of  the  times  toward  higher  prices, 
and  large  stocks  of  merchandise,  purchased  at  the  peak  of  high 
prices  in  1919  and  the  spring  of  1920,  were  imported,  the  total  ac- 
cumulation really  being  greater  in  volume  than  the  normal  con- 
sumption of  the  district  called  for  on  anything  like  a  conservative 
basis.  There  also  existed  a  speculative  market  m  Maracaibo  for  the 
petroleum  and  sugar  companies'  stocks,  and  there  was  great  specu- 
lation in  coffee  and  other  export  products.  This  situation  was  com- 
bined with  considerable  local  competition  among  the  various  banks 
doing  business  in  the  capital  and  business  center  of  the  district, 
this  being  reflected  in  the  lorm  of  excessive  loans  and  a  general  over- 
extension of  credit.  With  the  sudden  drop  in  the  values  of  coffee 
and  other  products,  including  sugar,  local  values  also  fell  in  propor- 
tion, and  stocks  of  goods  could  not  be  disposed  of  at  a  profit,  as 
similar  merchandise  could  then  be  purchased  in  New  York  for  less. 
Banks  were  forced  to  restrict  credit  heavily,  and  a  difficult  period  of 
readjustment  followed  in  which  losses  were  sustained  all  around. 
Some  200,000  sacks  of  coffee  from  the  preceding  year's  crop  remained 
in  the  district  unsold,  on  account  of  the  high  price  paid  for  it  during 
the  previous  speculative  period  and  the  drop  in  the  market  for  this 
commodity. 

Importers  have  to  ask  for  credit  mainly  because  they  can  not  pay 
before  they  dispose  of  the  merchandise  handled  in  the  interior,  there 
not  being  money  enough  to  finance  the  entire  trade  of  the  district. 
As  a  direct  result  of  the  credit  restrictions  put  in  force  during  the 
last  half  of  1920,  export  commission  houses  in  New  York  would  nO 
longer  accept  shipments  of  exports,  from  Venezuela  on  consignment, 
and,  in  turn,  even  the  foreign  branch  banks  would  no  longer  make 
advances  on  such  shipments. 

Dollar  exchange  on  New  York,  at  a  heavy  discount  during  the 
war  years  when  trade  restrictions  greatly  affected  imports  from  the 
United  States,  rose  to  premiums  varying  between  12  and  14  per  cent, 
constituting  a  further  ourden  on  the  importjer  who  had  to  pay  large 
bills- for  his  spring  purchases  of  merchandise,  made  at  high  prices 
and  in  anticipation  of  another  good  year  in  coffee,  which  did  not 
materialize,  for  the  reasons  stated. 

It  was  at  first  hoped  that  the  exportation  of  some  $4,000,000  worth 
of  sugar  to  the  United  States  toward  the  end  of  the  year,  or  during 
the  first  months  of  1921,  would  relieve  the  exchange  situation  througn 
the  sale  of  these  drafts  in  Maracaibo.  This  hope  was  also  doomed 
to  disappointment  on  account  of  the  drop  in  the  sugar  market,  and 
it  was  no  longer  thought  possible  to  export  sugar  to  the  United 
States,  in  competition  with  Cuba  and  Porto  Rico,  with  New  York 
prices  around  4|  cents  f .  o.  b. 

BUSINESS  HOUSES  AND  COMMERCIAL  METHODS. 

Prior  to  the  war  the  largest  commercial  houses  were  conducted  by 
Oennafis,  and  many  of  the  present  firms  are  financed  by  German 

79747^— 22 16 


226     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

capital  and  controlled  by  the  owners  of  the  former  German  houses, 
though  the  business  is  apparently  managed  by  Venezuelans.  Also, 
nearly  all  of  the  large  houses  of  Caracas  have  branch  stores  here, 
such  as  the  Bazar  Americano,  Almacen  Americano,  etc.,  and  other 
Caracas  importers  cover  the  territory  with  traveling  salesmen  pe- 
riodically, competing  with  local  dealers  for  the  import  trade  of  the 
interior  of  the  district.  There  are  two  houses  with  a  capital  of 
about  $500,000,  one  with  a  capital  of  $200,000,  four  with  a  capital  of 
$100,000  or  over,  while  the  rest  range  from  $20,000  to  $50,000, 
roughly.    The  total  number  of  importers  of  merchandise  is  45. 

San  Cristojp^  has  10  business  houses  importing  general  merchan- 
dise ;  7  of  these  have  a  capital  of  $20,000  or  more,  but  only  1  of  them 
does  a  large  business.  In  Trujillo  and  Merida  there  are  about  half 
a  dozen  fairly  large  importers  who  buy  principally  at  wholesale  in 
Maracaibo,  though  several  are  direct  importers  on  a  small  scale. 

As  an  average  estimate,  it  may  be  stated  that  more  than  half  of 
the  import  and  export  business  of  the  district  centering  in  Mara- 
caibo is  controlled  by  seven  or  eight  of  the  larger  houses  whose 
management  is  German. 

The  Maracaibo  houses  advance  money  to  the  interior  on  crops  and 
on  products  stored  with  them,  or  purchase  them,  or  ship  them  on 
commission.  Very  little  business  is  done  in  imports  on  a  commis- 
sion basis,  the  larger  importing  houses  preferring  to  buy  outright 
and  sell  to  the  retailers  in  Maracaibo  and  the  centers  of  the  interior 
on  their  own  terms ;  this  means  a  liberal  credit  allowance,  based  on 
the  six-months  system  of  the  country ;  that  is,  from  one  crop  season 
to  another.  There  are  a  few  large  producers  of  coffee  in  the  in- 
terior who  ship  and  sell  directly  to  their  connections  in  the  United 
States,  merely  paying  a  commission  in  Maracaibo  for  transshipment 
and  handling  services. 

Nearly  all  small  retailers  want  to  become  direct  importers  and  con- 
stantly endeavor  to  secure  goods  from  abroad  by  direct  shipment  on 
credit.  Extreme  care  should  be  exercised  by  firms  in  the  United 
States  in  the  selection  of  customers  in  the  interior  asking  for  terms, 
unless  the  American  houses  have  their  own  agents  in  Maracaibo, 
who  receive  the  goods  from  the  customs  and  take  care  of  drafts  and 
all  formalities  of  payment.  Shipping  documents  with  consular  in- 
voice and  draft  attached  are  no  protection,  even  if  in  the  hands  of 
the  bank  acting  in  the  collection,  since,  for  a  small  fee,  the  person 
whose  name  appears  on  the  consular  invoice  can  have  a  copy  made  at 
the  customhouse  from  that  sent  by  the  Venezuelan  consul  at  port 
of  loading,  and  cain  then  secure  the  shipment  from  the  customs  upon 
the  payment  of  the  import  duties.  In  other  words,  the  Venezuelan 
law  recognizes  the  consignee  as  the  owner  of  the  goods  whether  he 
has  paid  for  them  or  not. 

It  is  thought  that  the  better  plan  is  to  protect  the  large  importer 
who  has  an  established  line  of  credit  and  known  connections,  to- 
gether with  sufficient  commercial  capital,  and  let  him  take  care  of  the 
small  trade  of  the  interior.  In  fact  the  possession  of  sufficient  com- 
mercial capital  is  one  of  the  strongest  means  for  meeting  competi- 
tion that  the  larger  houses  have.  They  are  in  a  position  to  take 
c&re  of  the  long  terms  demanded  by  the  interior,  whereas  the  small 


MARACAIBO   COMMERCIAL  DISTRICT.  227 

importer  with  limited  capital  can  not  do  so  unless  he  in  turn  re- 
ceives accommodation  from  the  seller. 

On  account  of  the  lack  of  exchange  facilities  in  the  interior — the 
cost  of  transfer  of  funds  from  a  given  point  to  Maracaibo  or  vice 
versa  often  being  as  much  as  5  per  cent,  while  the  rate  is  only  1  per 
cent  under  normal  conditions — most  firms  of  the  interior  prefer  to 
buy  up  coffee  and  other  products  produced  in  their  regions  and  ship 
these  to  Maracaibo  in  exchange  for  such  merchandise  as  they  require 
for  their  trade.  This  business  is  generally  handled  on  the  "open- 
account"  system,  long  in  vogue  in  the  country,  and  it  has  the  ad- 
vantage of  allowing  an  extra  profit  to  the  dealer  on  his  export  busi- 
ness. 

In  summing  up  the  commercial  situation  in  general  (and  the  state- 
ment also  includes  banking),  it  may  be  said  that  the  commercial 
needs  of  the  district  are  very  well  taken  care  of  and  that  business 
facilities  are  entirely  adequate  to  the  present  economic  production  and 
life.  In  fact  merchandising  is  somewhat  overdone,  and  competition 
is  very  keen  for  the  business  offering. 

Salesmen  making  the  Caribbean  territory  and  visiting  Caracas 
usually  come  to  Curagao  and  make  the  trip  from  there  to  Maracaibo, 
returning  to  Curagao  for  a  steamer  east  or  west  along  the  coast,  or 
passing  on  into  Colombia  for  the  Magdalena  Biver  route.  Many 
importers  of  Cucuta  prefer  to  buy  direct  and  not  through  importers 
of  Maracaibo. 

It  is  not  thought  wise  to  always  allow  the  Caracas  representative 
to  have  full  charge  of  the  Maracaibo  territory  unless  a  branch  office 
is  maintained  there.  Certain  large  Venezuelan  firms  with  head- 
quarters in  Caracas  have  found  it  necessary  to  open  ofiices  in  Mara- 
caibo in  order  to  secure  their  share  of  the  trade  each  season. 

FOREIGN  TRADE  OF  MARACAIBO." 

The  official  foreign  trade  statistics  of  Maracaibo  for  all  of  1919  have 
recently  been  made  available.  The  values  of  exports,  as  given  in  the 
Venezuelan  official  statistics,  are  always  understated  and  may  be  de- 
pended upon  only  for  purposes  of  comparison  of  one  year  with  an- 
other and  the  relative  importance  of  the  different  countries.  An 
idea  as  to  just  how  far  the  figures  differed  during  1919  from  the 
values  according  to  the  consular  declared-export  return  may  be  gained 
from  the  following  illustration.  The  value  of  the  coffee  shipped  to 
the  United  States  is  given  in  the  Venezuelan  official  statistics  as 
$10,936,060,  while,  according  to  the  invoices  certified  at  the  consulate, 
it  amounted  to  $19,970,174.  The  Venezuelan  figures  are  not  based 
upon  actual  values,  but  are  arbitrary  values  placed  on  the  different 
items  of  export  in  order  to  compute  the  value  of  the  stamps  to  be 
placed  on  the  shipping  documents. 

According  to  official  statistics,  however,  $14,926,153  was  the  value 
of  the  total  exports  from  the  Maracaibo  district  during  1919,  show- 
ing an  increase  of  $9,382,872  over  1918  and  $5,940,697  over  1913.  Ac- 
cording to  the  same  figures,  $12,209,971  was  the  value  of  the  exports 
to  the  United  States  during  1919,  showing  an  increase  of  $8,531,392 

«  This  section  giving  statistics  of  foreign  trade  is  by  Consul  Dudley  G.  Dwyre. 


228     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

over  1^18  and  $7^1,701  over  1913.  Even  before  the  war,  in  1913,  the 
United  States  took  the  greater  portion  of  the  products  of  this  district, 
with  Germany  following  at  not  a  great  distance  (the  figures  being 
$4,968,270  and  $2,891,265,  respectively),  while  the  United  Kingdom 
scarcely  entered  into  the  export  trade  of  the  district.  During  1918 
and  1919  Germany  was  entirely  eliminated,  and  while  this  is  true  of 
the  United  Kingdom  during  1918,  the  value  of  the  exports  to  the  latter 
country  during  1919  came  to  $31,515. 

In  the  consideration  of  the  export  figures,  especially  for  1918  and 
1919,  it  must  be  borne  in  mind  that  a  large  percentage  of  the  exports 
to  Curagao,  which  in  1919,  1918,  and  1913  were  valued,  according  to 
the  Venezuelan  official  statistics,  at  $2,106,690,  $1,762,438,  and  $153,- 
509,  respectively,  was  sent  to  the  United  States.  France  took  prod- 
ucts valued  at  $661,269  in  1913,  but  it  took  nothing  during  1918;  dur-  ' 
ing  1919,  however,  the  value  of  the  exports  to  that  country  was 
$307,341. 

TRADE  BY  COUNTRIES. 

Below  is  a  summary  of  the  value  of  the  foreign  trade  of  the  Mara- 
caibo  district  for  the  years  1913, 1918,  and  1919  (in  preparing  the  fol- 
lowing statistics  all  conversions  from  bolivars  to  dollars  were  made  at 
the  normal  rate,  1  bolivar  being  equivalent  to  $0,193)  : 


Countries. 

Imports. 

Exports. 

1913 

1918 

1919 

1913 

1918 

1910 

Austria 

$2,032 
100,053 

$3,547 

6,963 

8,685 

2,705 

153,509 

39,196 

661,269 

2,891,265 

149,338 

31,378 

3,839 

2,527 

8,613 

53,352 

4,968,270 

Bel?iuzn 

Canada 

$23 

Cuba 

S2,264 
33,617 
18,240 
12,951 

SI,  360 

97,857 

2,057 

7,423 

31, 512 

Curacao 

9,117 

$1,762,438 
44,959 

2,106,690 
83,887 

Colombia 

France 

77,744 
781,798 
117,709 

82,959 

307,341 

GOTmany 

Italv 

1,140 

20,647 
57,849 

Netherlands 

74,513 

Panama 

Porto  Rico 

54,387 

28,372 

84,305 

1,285,763 

2,284 

54,321 

141,277 

789,441 

6,096,973 

2,722 

22,988 
4,162 

4,895 

Spain 

110,864 

782,511 

1,548,270 

14,997 

Imitecl  Kingdom 

31, 515 

United  States 

3,678,579 
29,155 

12.209,971 

All  other  countries 

59,809 

Total 

3,613,057 

1,523,323 

7,271,927 

8,984,456 

5,542,281 

l4. 925. 153 

PRINCIPAL  EXPORTS. 


The  following  table  shows  the  principal  exports  from  this  district 
in  1913,  1918,  and  1919,  together  with  the  percentage  of  each  item 
shippea  to  the  United  otates.  These  percentages,  however,  are  not 
exact,  since  most  of  the  exports  shipped  to  Curagao  eveirtually  find 
their  way  to  the  United  States. 


/ , 


MAEACAIBO  COMMEKCIAl,  DISTRICT. 


229 


% 

1913 

1918 

1919 

Articles. 

Pounds. 

Value. 

Per- 
cent- 
age to 
United 
States. 

Pounds. 

Value. 

Per- 

cent- 

a(?eto 

United 

States. 

.  Pounds. 

Value. 

Per- 
cent- 
age to 
United 

State.s. 

Cocoa., 

687,939 

76,011,304 

94,976 

8,042,530 

126,947 

1,960,364 

131,747 

2,210,677 

234,521 

1,623 

26,662,670 

4,395,903 

$99,524 

8,165,849 

19,868 

» 76,300 

21,410 

286,216 

2,189 

52,265 

44,780 

70 

75,412 

140,573 

68 
55 
72 

60 

83 

ioo 

12 

13 

795,529 

t\7A.M'i 

99 
85 
100 
33 
94 
84 
6 

30 
62 

6 

8 

946,938 

86,028,161 

28,616 

13,222,721 

150,921 

1,276,610 

6,101,694 

2,284,129 

411,056 

21,482,367 

8,654,017 
«  37,459, 332 

$186,782 

12,339,647 

8,693 

265,927 

9,331 

359,459 

136,160 

89,839 

168,965 

830,851 

64,861 

»  465,638 

87 

ColTee 

49. 660. 926  3  Mfi-  ^10 

90 

Coraiba 

66,223 

6,277,798 

148,315 

568,454 

9,312,709 

4,876,241 

44,433 

15,190,486 

5,591,243 

»  64,970,317 

34,752 

59,938 

18,658 

101,367 

195,675 

56,992 

4,461 

639,870 

110, 747 

>  299,269 

100 

Divi-divi 

Fish  sounds 

Hides 

36 
19 
94 

MaiEe 

5 

Fanela    (brown 
su£ar) 

3 

Skins 

100 

Sugar,n.ei.8 

Woods 

64 

All  other  articles. 

10 

Total 

8,984,456 

55 

5,542,281 

66 

14,925,163 

82 

1  A  sample  only. 

*  These  items  include  27,887  tons  of  fuel  and  crude  petroleum,  valued  at  $194,181,  shipped  during  1918> 
and  15,894  tons,  valued  at  $137,636,  shipped  during  1919,  all  of  which  was  sent  to  Curasao. 

Coffee  receipts  in  Maracaibo,  from  the  coffee-growing  sections  of 
the  interior,  in  1918  totaled  477,429  bags^  and  in  1919,  730,^19  bags. 
The  1919  export  figures  illustrate  the  fact  that  large  quantities  of  the 
1918  crop  were  held  over  and  shipped  during  1919,  after  war  restric- 
tions were  removed. 

EXPORTS  INVOICED  FOR  UNITED  STATES. 

Declared  exports  from  the  Maracaibo  district  to  the  United  States 
during  1920  were  valued  at  $9,524,183,  a  decrease  of  56  per  cent  as 
against  1919.  The  following  table  lists  the  articles  invoiced  in  both 
years,  according  to  quantity  and  value: 


Articles. 


Bark: 

Quiana 

Mangrove 

Maracaibo 

Simarouba 

Bones 

Cocoa 

Coffee 

Copaiba. 

Corn 

Divi-divi 

Ethnol(^ical  specimens. 

Fish  sounds 

Hides 

Skins: 

Calf 

Deet 

Goat 

Sugar: 

Brown 

Muscovado 

other 

Tobapco 

Wax,  vegietable 


.pounds. 

do... 

do... 

do... 

....do... 
...do... 
...do... 

do... 

...do... 
do... 


.pounds. 
do... 


.do.., 
.do.., 
.do.., 

.do.., 
.do.., 
.do... 
.do.., 
.do... 


1919 


Quantity. 


17,305 


3,630 
6,368 


818,461 

83,166,547 

28,122 

35,  W11 

4,870,539 


14,601 
1,448,937 

4,500 

19,003 

385,200 

75, 118 


11,545,740 
10,012 


Value. 


$2,810 


380 
1,499 


275,311 

19,970,174 

14,186 

1, 145 

175,407 

1,200 

3,044 

647, 159 

2,263 

5,263 

308,263 

5,164 


609,655 
4,031 


1920 


Quantity. 


37,489 

10,531 

15,570 

67,387 

794, 114 

42,042,827 

50,154 

331,797 

3,521,565 


7,934 
777,634 

1,084 

8,104 

271, 867 

1,396,174 

1,174,453 

231,032 


2,6«^ 


Value. 


$1, 170 

1,135 

1,587 

1,912 

218,844 

8,328,356 

32,181 

10,611 

80,246 


398 
263,403 

396 

2,183 

167, 147 

112,852 

133,471 

56,436 


1,088 


230     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 


i 


1 


Articles. 


Woods: 

B  ox poo  nds . 

Curarire do . . , 

Ebony do . . . 

Roble do. . . 

Vera do . . . 

Zapatero do. . . 

Wool do... 

All  other  articles 

Total 


1919 


Quantity. 


90,1^ 
33,066 
68,722 


82,612 

1,134,850 

75,531 


Value. 


$2,936 

231 

1,177 


1,661 
22,772 
15,500 
54,710 


22,125,931 


1920» 


Quantity. 


51,040 

41,177 

339,988 

360,910 

109,360 

5,632,257 

3,439 


Value. 


$213 

245 

3,208 

3,325 

408 

91,926 

276 

2,160 


9,524,183 


Returned  American  goods  totaled  $14,723  in  1920,  compared  with 
$19,663  in  1919.  Shioments  to  Porto  Rico  in  1920  were  valued  at 
$3,754  and  in  1919  at  $2,212.  No  invoices  were  certified  to  the  other 
insular  possessions  of  the  United  States. 


STATISTICS  OF  IMPORTS. 


According  to  the  Venezuelan  official  statistics,  the  value  of  the  im- 
ports to  the  Maracaibo  consular  district  during  1919  increased  by 
$5,748,604  (377  per  cent)  over  1918  and  $3,658,870  (101  per  cent)  over 
1913.  Included  in  these  figures  is  gold  coin  to  the  value  of  $2,943,134 
in  1919  and  $312,640  in  1913.  The  increase  in  the  value  of  imports 
may  be  partly  explained  by  the  higher  prices  paid  during  1919  for 
all  items  than  during  the  other  two  years  named,  especially  1913. 
Even  before  the  war  the  United  States  led  in  supplying  this  market, 
with  the  United  Kingdom  and  Germany  following  in  about  equal 
importance.  During  1918  and  1919  the  imports  from  Grermany  were 
nil;  from  the  United  Kingdom  they  were  valued  at  only  $84,305 
during  1918,  but  in  1919  they  were  $789,441,  slightly  exceeding  in 
value  those  for  1913.  Imports  from  the  United  States  during  1919 
were  valued  at  $6,096,973,  as  compared  with  $1,548,270  for  1913  and 
$1,292,763  for  1918.  These  figures  include  gold  coin,  of  which 
$2,885,324  was  imported  in  1919  and  $312,640  in  1913. 

The  following  table  gives  the  value  of  the  principal  imports  into 
Maracaibo  by  principal  countries  for  1913,  1918,  and  1919 : 


Articles  and  countries 
of  ori*gln. 

1913 

1918 

1919 

Articles  and  countries 
of  origin. 

1913 

1918 

1919 

Candy: 
United  States 

$18, 467 

1,106 

795 

3,053 

16,173 
4,098 
9,183 

13,418 

20,516 

373 

3,709 

242 

140,758 
35 
19 

S9.165 

S24,914 

Grits  and  sago: 
United  States 

$3,624 
1,136 

$520 

$27,779 

United  Kingdom 

Germany 

German  y ." 

All  other  countries 

960 

30,562 
1,722 

271 

All  other  countries ..... 
Canned  goods: 
United  Statas 

12 

17,234 

77 

804 

40,087 
794 

Liquors: 
United  States 

9,932 
35,062 

2,959 
10,235 

394 
31,621 
20,401 

529 

152 

75,686 

24,915 

35,735 
29,025 

United  Kingdom 

o<»rTnftny 

United  Kingdom 

Germany 

All  other  countries 

Rice: 
United  States 

4,393 
8,820 

24,358 
33,920 

All  other  countries 

Crackers: 

UnitAd  StAtAS 

1,228 
2,269 

12,933 

23,592 
1,746 

United  Kingdom 

Gfirmanv 

Germany 

All  other  countries 

Sardines: 
United  States 

All  Other  countries 

Flour: 

3,576 

232 
202,580 

487 

18,011 

United  States.. 

United  Kingdom 

G  ermany 

Germany 

All  other  countries 

6.832 

All  other  countries 

6,480 

MABACAIBO   COMMEBClAL,  SISIBICT, 


231 


Articles  and  countries 
of  origin. 


Wines: 

United  States 

United  Kingdom 

Germany 

All  otlier  countries . . . 
Bagging: 

United  States 

United  Kingdom 

Germany 

All  other  countries . . . 
Cordage  and  yam: 

United  States 

United  Kingdom 

Germany 

All  other  countries . . . 
Cott(m  goods: 

United  States 

United  Kingdom 

Germany 

All  other  countries. . . 
Thread: 

United  States 

United  Kingdom 

Germany 

All  other  countries. . . 
Calcium  carbide: 

United  Stotes 

Gement: 

United  States 

Germany 

All  other  countries . . . 
Drugs  and  medicines: 

United  States 

United  Kingdom 

Germany 

All  other  countries . . , 
Dismfectants: 

United  States 

United  Kingdom. 

'Germany , 

All  other  countries . . . 
Gasoline  and  kerosene: 

United  States 

United  Kingdom 

Germany , 

All  other  countries . . , 
Lubricants: 

United  States 

All  other  countries. . . 
Paints  and  oils: 

United  States........ 

United  Kingdom 

Germany '.. 

All  other  countries . . . 
Perfumery: 

United  States 

United  Kingdom 

Germany 

All  other  countries . . . 
Rosin: 

United  States 

Germany 

Steaoine: 

United  States 

Germany 

All  other  countries . . . 


1913 


1867 

743 

23,900 

28,003 


175 


14,409 
1,033 

11,520 
2,807 

152,573 
460,822 
101,177 
107,367 

207 

18,117 

12,735 

1,473 

12,110 

2,2i4 

11,257 

52 

99,855 

8,989 

27,452 

45,007 

1,487 


3,755 
38 

27,690 


603 
1,239 

4,590 
514 

13,800 
1,724 
5,845 


1,081 
3,281 
5,862 
4,135 

10,513 
187 

1,032 

147 

64,834 


1918 


$4,933 
352 


16,850 
8,140 


9,413 

19,124 
231 


87 

107,148 
39,583 


7,108 

5,371 
9,090 


7,362 
5,918 


12,733 

152,506 
13,544 


6,775 

7,722 
231 


12,475 
75 


9,600 
35,449 


13,254 


139 
14,659 


27,693 


1919 


13,518 
1,251 


25,717 

13,882 
1,467 


10,978 

25,859 
2,264 


12,961 

967,623 
503,559 


36,540 

21,967 
23,542 


23,444 
1,747 


16,650 

276,496 
62,282 


18,879 

10,351 
6,272 


18,865 
7,284 


835 

28,305 

88 

70,802 
3,488 


360 

36,932 
7,278 


2,040 
21,034 


58,627 
"4,'693 


Articles  and  countries 
of  origin. 


Ammunition: 

United  States 

Germany 

All  other  countries 

Copper: 

United  States 

United  Kingdom 

Germany 

All  other  countries 

Cutlery: 

United  States 

United  Kingdom 

Germany 

All  other  countries 

Electrical  goods: 

United  States 

United  Kingdom 

Germany 

AH  other  countries 

AfiTicultural  implements: 

United  States 

United  Kingdom 

Germany 

All  other  countries 

Iron  and  steel,  n.  e.  s.: 

United  States 

United  ICingdom 

Germany 

All  other  countries 

Iron,  structural: 

United  States 

United  Kingdom 

Germany 

All  other  countries 

Machinery: 

United  States 

United  JCingdom 

Germany 

All  other  countries 

Nails: 

United  States 

United  Kingdom 

Germany 

All  other  countries 

Tin: 

United  States 

United  Kingdom 

Germany 

All  other  countries 

Tools: 

United  States 

United  Kingdom 

Germany 

All  jother  countries 

Tubing: 

United  States 

United  Kingdom 

Germany 

All  other  countries 

Wire: 

United  States 

United  Kingdom 

Germany 

All  other  countries 


1913 


120,437 

3,329 

42 

3,340 
7,178 
1,985 
8,270 

2,676 

1,615 

12,067 

105 

18,862 

54 

949 


33,625 

43,754 

7,353 

386 

11,877 
8,143 

53,530 
3,531 

41,386 

1,184 

501 

31 

196,784 

46,378 

18,970 

4,692 

3,608 

3,819 

1,'891 

293 

2,775 
4,171 
1,915 


7,988 
5,041 
4,566 
2,332 

19,536 

8,190 

117 

973 

43,831 

503 

1,944 

65 


1918 


$106 
15,962 


248 

35,135 
3,335 


199 
33,251 


15,614 
4,649 


145 

24,973 
417 


283 
19,656 


248,020 
834 


58,067 
8,768 


513 
37,761 


45 

9,231 
49 


149 
49,680 


174 
11,421 


1919 


$20,076 


154 

9,887 
6.737 


2,780 

70,981 
23,505 


12,341 
72,706 


2,311 


2,040 

183,679 
2,559 


10,594 
69,718 


132 

145,623 
13,637 


36,506 

42,768 
5,465 


18 

7,506 
30,105 


613 

37,419 
2,048 


77,516 
1,018 


1,168 

13,814 
245 


«  IMPORTATIONS  BT  PARCEL  POST— COAST  TRAFFIC.  ' 

Imports  by  parcel  post  into  this  district  during  1919  weighed 
46,881  pounds,  as  against  28,968  pounds  for  1918  and  64,459  pounds 
for  1913.  The  imports  by  parcel  post  in  1919  came  from  the  follow- 
ing countries:  United  States,  33,166  pounds;  France,  8,062  pounds; 
England,  2,525  pounds;  Italy,  1,126  pounds;  Spain,  1,047  pounds; 
all  others,  955  pounds. 

The  coastwise  traffic  of  the  port  of  Maracaibo  consisted  of 
entrances  valued  at  $21,571,544  in  1919,  against  $10,216,804  in  1918 


232     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

and  $6,824,597,  in  1913,  and  clearances  worth  $16,017,102  in  1919, 
$8,022,854  in  1918,  and  $4,070,871  in  1913.  Coffee  and  sugar  are  the 
principal  items  of  entrance,  while  foreign  merchandise  makes  up  a 
large  portion  of  the  clearances. 

CONCLUSIONS  AND  RECOMMENDATIONS. 

American  exporters  interested  in  extending  their  commercial  opera- 
tions in  the  Maracaibo  district  would  do  well  to  cofisider  this  terri- 
tory as  a  separate  commercial  unit,  divided  from  the  rest  of 
Venezuela.  Ihe  development  of  the  petroleum  industry  and  the 
sugar  industry,  as  well  as  thart  of  the  coal  deposits,  will,  in  the  near 
future,  give  an  additional  purchasing  value  to  the  district  that 
should*  not  be  ignored. 

The  trade  was  formerly  controlled  bv  the  German  houses,  and 
these  are  still  very  strong.  They  have  oeen  doing  their  buying  in 
the  United  States  during  the  war  and  since  the  armistice  on  account 
of  the  industrial  conditions  obtaining  in  Germany,  but  their  endeavor 
will  be  to  go  back  to  old  connections  as  soon  as  possible.  The  share 
of  the  United  States  in  the  import  trade  of  Maracaibo  rose  from  4S 
per  cent  in  1913  to  72  per  cent  in  1916  and  to  84  per  cent  by  the 
end  of  1919.  Branch  offices  should  be  established  by  American 
exporters  to  keep  in  closer  touch  with  the  market  and  to  form  direct 
commercial  relations,  thus  insuring  the  present  advantage  for*  the 
future. 

The  indication  of  trade  possibilities  is  always  to  be  found  in  the 
coffee  market  and  crop  conditions,  as  upon  this  staple  product 
depends  the  prosperity  of  the  district  year  by  year. 


PUERTO    CABELLO    AND    VALENCIA    COMMERCIAL 

DISTRICT. 

LOCATION  AND  TERRITORY. 

The  Puerto  Cabello  and  Valencia  commercial  district  includes  the 
seven  Venezuelan  States  of  Lara,  Carabobo,  Cojedes,  Falcon,  Yara- 
cuy,  Zamora,  and  Portuguesa,  occupying  the  central- western  portion 
of  the  Republic.  The  district  extends  from  the  eastern  boundary 
of  the  States  of  Carabobo  and  Cojedes  west  to  the  line  of  the  Vene- 
zuelan Andes  (which  divide  the  territory  of  the  Maracaibo  Basin 
from  the  rest  of  the  country),  and  from  the  coast  line  of  the  Carib- 
bean Sea  on  the  north  to  the  Apure  and  Orinoco  Rivers  on  the  south. 

The  territory  has  a  combined  area  of  46,870  square  miles,  amount- 
ing to  11.9  per  cent  of  Venezuela's  total  area.  The  inhabitants  num- 
ber about  995,000,  or  35  per  cent  of  the  total  population  of  the  country. 
The  population  is  for  the  most  part  rural,  depending  upon  agri- 
culture and  stock  raising  for  its  livelihood ;  there  are  only  two  min- 
ing enterprises  of  any  note  in  the  entire  district,  while  manufacturing 
is  limited  to  the  city  of  Valencia  and,  in  much  less  volume,  to  Puerto 
Cabello,  the  principal  seaport. 

TOPOGRAPHY  AND  CLIMATE. 

The  principal  distinguishing  features  of  the  topography  of  the 
district  are:  The  Coast  Range,  which  extends  to  the  west  toward 
Barquisimeto,  gradually  ending  in  the  Segovia  highlands;  the  Lake 
Valencia  Basin  around  Lake  Valencia,  a  fresh-water  lake  which  lies 
partly  in  the  State  of  Carabobo  and  partly  in  that  of  Aragua  (the 
basin  being  described  as  an  old  lake  bed  tliat  now  forms  the  richest 
and  most  developed  agricultural  section  of  the  country) ;  the  great 
llanos,  or  plains,  which  stretch  away  to  the  south  as  far  as  the  Ori- 
noco aixd  Apure  Rivers  for  a  distance  of  approximately  200  miles 
from  the  line  of  the  low  mountains  and  hills  forming  the  barrier 
between  them  and  the  lake  basin  mentioned ;  the  gradually  ascending 
highlands  of  the  extreme  western  area  of  the  district,  which  rise  out 
of  the  llanos  to  meet  the  high  mountain  range  of  the  western  Andes 
of  Venezuela ;  and  the  so-called  Segovia  highlands,  which  lie  between 
the  western  extremity  of  the  Caribbean  Coast  Range  and  the  north- 
ern spurs  of  the  Andes— this  region,  though  subject  to  variations  of 
elevation,  possessing  the  main  features  of  a  table-land  which  extends 
in  a  broad  belt  northward  through  the  States  of  Lara  and  Falcon, 
with  itstnain  extent  in  the  State  of  Lara  around  the  capital,  Barquisi- 
meto (formerly  called  "  Nueva  Segovia,^'  from  which  the  region  takes 
its  name). 

The  level  of  most  of  this  area  ranges  from  1,500  to  3,500  feet  above 
sea  level,  but  the  plateau  type  is  best  developed  in  the  Barquisimeto 
region,  where  the  dry,  arid  plainjs  are  at  times  broken  by  small  ranges 
and  scattered  groups  of  hills.    The  mountain  mass  of  the  Sierra  of 

233 


234     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Area  and  the  lines  of  hills  north  of  Barquisimeto,  toward  the  coast, 
form  its  limits  in  that  direction. 

Included  in  this  section  of  the  district  and  extending  in  a  general 
line  parallel  to  the  coast  three  well-defined  mountain  ranges  of  more 
or  less  uniform  elevation  rise  from  the  plateau  north  of  the  Tocuyo 
River  and  are  called  the  Cordilleras  of  Baragua,  Agua  Negra,  and 
San  Luis,  the  last  named  being  the  largest  and  extending  for  about 
110  miles  to  beyond  Coro.  overlooking  the  Gulf  of  Venezuela  to  the 
west  of  the  peninsula  of  Irara^ana. 

The  Tocuyo  and  its  tributaries  form  the  principal  drainage  for  the 
entire  northern  region  described,  the  only  other  streams  being  small 
ones  farther  to  the  west,  which  flow  directly  into  the  ocean.  From 
this  general  statement  there  should  be  excepted  a  small  area  around 
Barquisimeto,  from  which .  the  watershed  is  to  the  south  into  the 
Portuguesa  and  thence  to  the  Apure  and  Orinoco.  The  Tocuyo  rises 
in  the  Andes  and  flows  for  some  330  miles  in  a  general  northeasterly 
direction,  emptying  into  the  Caribbean  Sea  jui^  to  the  west  of  the 
port  of  Tucacas,  which  lies  west  of  Puerto  Cabello.  The  southern 
part  of  this  area  is  arid  and  more  or  less  barren,  but  the  hills  of  the 
northern  part  are  forest  clad  and  there  are  fine,  well-watered  cattle 
plains  around  Carora  in  the  Carora  Valley. 

The  area  along  the  immediate  coast  east  and  west  of  Coro  is  flat, 
sandy,  and  for  the  most  part  arid,  as  is  also  the  peninsula  of  Para- 
guana. 

The  climate  throughout  the  district,  except  in  the  higher  levels  of 
the  mountains  (say,  above  4,000  feet),  is  essentially  tropical,  although 
that  of  the  immediate  coast  is  tempered  by  the  constant  trade  winds. 
The  areas  of  greatest  heat  and  heaviest  rainfall  are  those  of  the 
llanos,  the  highest  mean  annual  temperature  and  precipitation  being 
recorded  in  San  Fernando  de  Apure,  on  the  Apure  River,  at  the 
extreme  southern  edge  of  the  district.  The  wet  season  lasts  from 
April  to  November,  and  much  of  this  plains  territory  is  inaccessible 
during  the  latter  half  of  the  season  on  account  of  extensive  flooded 
areas. 

The  rainfall  in  the  Valencia  and  Coast  Range  regions  in  the  eastern 
part  of  the  district  is  the  same  as  for  the  Caracas  district,  averaging 
around  32  inches  per  annum  between  June  and  November,  but  this 
rainfall  rapidly  diminishes  toward  the  west  except  in  the  higher 
elevations,  reaching  its  minimum  in  the  region  of  Coro  and  inland 
around  Barquisimeto. 

Except  in  the  Carora  Valley,  along  the  Tocuyo  River  Valley,  and 
in  certain  mountainous  areas,  the  western  part  of  the  district  is  too 
arid  for  general  agriculture;  cacti  abound,  and  the  region  resembles 
certain  parts  of  Arizona,  New  Mexico,  and  the  State  of  Sonora,  in 
Mexico.  The  principal  industry  throughout  this  dry  region  is  goat 
raising.  Between  San  Felipe  and  Puerto  Cabello  and  Valencia  there 
is  a  region  constituting  an  enormous  alluvial  fill  of  ancient  geological 
formation  and  capable  of  agricultural  development,  but  lacking  in 
transportation  and  sufficient  population.  If  it  were  not  for  the  pre- 
vailing lack  of  labor,  a  connecting  link  of  railway  from  the  San 
Felipe  Branch  of  the  Bolivar  Railway  to  Valencia,  via  Montalban 
or  Las  Trincheras,  would  tap  this  area  and  open  it  for  development. 


Spwlal  Aiants  Ssrlss  No.  11^ 


\  . 


*  m 


PUERTO  CABELLO  AND  VALENCIA  COMMERCIAL  DISTRICT.      285 
CHARACTERISTICS  OF  INHABITANTS. 

Except  in  the  larger  towns  and  cities,  where  there  are  old  Spanish 
families  and  important  foreign  colonists  (as  in  Valencia  and  Fuerto 
Cabello),  the  inhabitants  of  the  district  are  of  a  mixed  race,  with 
the  Indian  strain  predominant  in  the  interior  and  the  Negro  along 
the  coast.  Away  from  the  cities,  the  standards  of  living  are  de- 
cidedly low,  conditions  being  rather  primitive  on  the  ranges,  farms, 
and  in  the  small  villages  of  the  interior.  There  exists  a  general 
scarcity  of  labor  for  field  work,  the  people  much  preferring  the 
cotton  factories  of  Valencia  and  the  meat-packing  plant  of  Puerto 
Cabello,  and  the  drift  of  the  population  is  toward  the  towns. 

POPULATION:  DISTRIBUTION  BY  STATES,  DISTRICTS,  AND 

CAPITALS. 

The  State  of  Carabobo,  with  an  area  of  4,399  square  kilometers  (1 
square  kilometer  =  0.3861  square  mile)  had  an  estimated  populatioil 
in  December,  1917,  of  193,234,  giving  a  density  of  43.9  to  the  square 
kilometer,  the  highest  density  in  Venezuela  except  in  the  Federal 
District  (Caracas),  which  has  70.2.  The  capital  city,  Valencia,  has 
a  population  of  54,387,  with  95,554  people  in  the  Valencia  district, 
or  nearly  one-half  of  the  population  of  the  entire  State.  The  rest 
of  the  population  is  distributed  throughout  five  other  districts,  or 
counties,  of  about  equal  population,  the  district  capitals  being  the 
towns  of  Bejuma.  Guacara,  Montalban,  Guigue,  and  Puerto  Cabello. 

The  city  of  Valencia  is  situated  at  an  elevation  above  sea  level  of 
1,677  feet.  Its  mean  annual  temperature  is  80°  F.  The  death  rate 
is  estimated  at  34.5  per  1,000  inhabitants  for  the  city  and  district. 

The  State  of  Cojedes,  with  an  area  of  14,800  square  kilometers, 
had  an  estimated  population  in  December,  1917,  of  104,424,  giving 
a  density  of  7.1  to  the .  square  kilometer.  The  capital  city,  San 
Carlos,  has  10,159  people,  with  a  total  of  17,963  in  the  district.  The 
most  populous  district  is  that  of  Pao,  with  20,907  inhabitants.  The 
rest  of  the  population  of  the  State  is  distributed  throughout  five 
other  districts,  of  which  that  of  Anzoategui  is  the  smallest,  having 
only  3,697  inhabitants.  The  capital  towns  of  the  districts  are 
Cojedes,  Tinaquillo,  El  Baul,  Pao  de  San  Juan  Bautista,  Libertad, 
San  Carlos,  and  Tinaco. 

The  town  of  San  Carlos  is  on  the  llanos  southwest  of  Valencia, 
communication  with  it  being  over  the  recently  repaired  cart  road 
which  forms  part  of  the  Great  Western  Hignway.  The  elevation 
above  sea  level  is  only  495  feet.  The  mean  annual  temperature  is 
83.5°  F.    The  death  rate  for  the  district  is  47.4  per  1,000. 

The  State  of  Falcon^  with  an  area  of  24,800  square  kilometers,  had 
an  estimated  population  in  December,  1917,  of  170,154.  giving  a 
density  of  6.8  per  square  kilometer.  The  capital  city,  Coro,  has  a 
population  of  10,161,  with  19j590  in  the  district  of  that  name.  The 
rest  of  the  population  is  distributed  throughout  10  other  districts,  of 
which  two  are  equal  in  population  to  that  of  Coro,  namely,  Falcon 
and  Bolivar;  the  capital  of  Falcon  is  Pueblo  Nuevo,  and  that  of 
Bolivar  is  San  Luis.  The  other  district  capital  towns  are  San  Juan, 
Capatarida,  La  Vela,  Pedregal,  Churuguara,  Coro,  Cabure,  Tucacas, 
and  Puerto  Cumarebo.  ' 


236     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK.  • 

Coro  is  situated  near  the  ocean,  on  the  western  side  of  the  plain  at 
the  base  of  the  peninsula  of  Paraguana,  and  is  connected  with  the 
seaport  of  La  Vela  by  a  short  railway.  It  was  the  first  capital  of 
colonial  Venezuela  and  is  one  of  the  oldest  towns  in  America.  The 
elevation  above  sea  level  is  only  53  feet.  The  mean  annual  tempera- 
ture is  81°  F.  The  death  rate  for  the  district  is  estimated  at  31.6  per 
1,000  inhabitants. 

The  State  of  Lara  occupies  the  center  of  the  commercial  district 
under  discussion,  its  area  being  19,800  square  kilometers,  with  an 
estimated  population  in  December,  1917,  of  233,152,  making  this  State 
the  most  populous  in  the  country,  the  next  being  that  of  Guarico, 
with  220,488  (included  in  the  (Jaracas  commercial  district).  The 
density  of  population  per  square  kilometer  in  Lara  is  11.7.  The 
capital  city,  Barquisimeto,  located  on  the  plateau  near  the  eastern 
boundary  of  the  State,  has  a  population  of  27,069.  The  elevation 
above  sea  level  is  1,868  feet.  Tne  mean  annual  temperature  is  78°  F. 
The  death  rate  of  the  district  is  estimated  at  35.1  per  1,000  inhabi- 
tants. The  Barquisimeto  district  has  a  population  of  41,321,  and 
there  are  six  other  districts,  the  capital  towns  of  which  are  Cabudare, 
Duaca,  Quibor,  Tocuyo,  Carora,  and  Siquisique.  The  two  districts 
of  Siquisique  and  Tocuyo  have  each  a  population  equal  to  that  of 
the  Barquisimeto  fiistrict. 

The  State  of  Portuguesa,  with  an  area  of  15,200  square  kilometers, 
had  an  estimated  population  in  December,  1917,  of  114,496,  giving  a 
density  of  7.6  per  square  kilometer.  The  capital  city,  Guanare,  has  a 
population  of  9,051,  with  a  total  of  30,008  in  the  district  of  the  same 
name  surrounding  the  town.  There  are  seven  other  districts,  the 
capital  towns  of  which  are  Acarigua,  Araure,  Piritu,  Guanarito, 
Ospino,  Biscucuy,  and  Villa  Bruzual,  the  number  of  inhabitants 
being  about  evenly  divided,  with  the  exception  of  the  capital  dis- 
trict named. 

Guanare  is  situated  on  a  fairly  level  plateau  or  bench  land  lying 
along  the  eastern  slopes  of  the  Andes,  this  part  of  the  western  range 
running  into  the  Montana  de  Altar  in  the  State  of  Cojedes.  The 
elevation  above  sea  level  is  636  feet.  The  mean  annual  temperature 
is  83.5°  F.  The  average  annual  death  rate  for  the  district  is  esti- 
mated at  19.3  per  1,000  inhabitants. 

The  State  of  Yaracuy,  with  a  total  area  of  .7,100  square  kilometers, 
had  an  estimated  population  of  102,351  in  December,  1917,  or  a  den- 
sity of  14.5  per  square  kilometer.  The  capital  city,  San  Felipe,  has 
a  population  of  10,817,  with  a  total  of  17,959  in  the  district  of  the 
same  name.  There  are  five  other  districts  in  the  State,  of  which 
the  capitals  are  the  towns  of  Chivacoa,  Nirgua,  Aroa  (Guama), 
Urachiche,  and  Yaritagua.  Nirgua  is  the  largest  district,  having 
28,708  people. 

The  capital,  San  Felipe,  is  situated  at  the  head  of  the  Yaracuy 
River  Valley,  the  elevation  being  808  feet  above  sea  level.  The  mean 
annual  temperature  is  80°  F.  The  average  annual  death  rate  of  the 
district  per  1,000  inhabitants  is  estimated  at  33.9. 

The  State  of  Zaihora,  with  a  total  area  of  35,200  square  kilometers, 
had  an  estimated  population  in  December,  1917,  of  75,329,  giving  a 
density  of  only  2.1  per  square  kilometer.  The  capital  city,  Barinas, 
has  5,354  people,  with  a  total  of  9,146  in  the  district  oi  the  same 


PUEBTO  CABELLO  AISD  VALENCIA  COMMERCIAL  DISTRICT.      237 

name.  There  are  six  other  districts  in  the  State,  of  which  three, 
Obispos,  Bojas,  and  Sosa,  have  a  population  of  10,(XX)  each,  in  round 
numbers.  The  capital  towns  of  the  districts  are  Barinas,  Arismendi, 
Barinitas,  Obispos,  Ciudad  Bolivia,  Libertad,  and  Nutrias. 

Barinas  is  situated  near  the  headwaters  of  the  River  Santo  Do- 
mingo, one  of  the  smaller  affluents  of  the  Apure  which  have  their 
source  in  the  eastern  slopes  of  the  western  Andes.  The  elevation  is 
only  594  feet  above  sea  level.  The  mean  annual  temperature  is  82° 
F.  The  estimated  average  death  rate  for  the  district  is  14.2  per 
1,000  inhabitants. 

The  population  of  Venezuela  is  not  increasing  to  any  great  extent, 
the  average  increase  shown  being  only  seven-tenths  of  1  per  cent  for 
the  entire  country.  Emigration  just  about  equals  the  number  of 
people  entering  the  country.  The  State  of  Lara,  in  the  Puerto 
Cabello  and  Valencia  district,  shows  the  greatest  percentage  of  in- 
crease ;  the  census  of  1891  gave  this  State  only  189,000  people,  as  com- 
pared with  233,152  in  1917. 

CITIES  AND  TOWNS— COMMERCIAL  DISTRIBUTION  AND  TRADE 

ROUTES. 

VALENCIA. 

Valencia,  the  capital  of  the  State  of  Carabobo,  is  the  second  city 
in  size  of  the  Republic  of  Venezuela  and  the  most  important  manu- 
facturing center,  since  the  largest  cotton  mills  are  located  there.  It 
is  also  the  center  of  the  most  developed  and  extensive  agricultural 
region  of  the  country.  It  was  at  one  time  the  most  important  com- 
mercial center  of  Venezuela.  The  construction  of  the  Great  Kail- 
way  of  Venezuela  between  the  city  and  Caracas,  fol^pwed  by  the 
construction  of  the  Puerto  Cabello  &  Valencia  Railway  from  the 
port  of  Puerto  Cabello,  made  great  changes  in  the  major  trade  routes 
and  commercial  distribution  of  the  district.  Formerly  the  products 
of  the  State  of  Aragua  and  those  of  the  western  portion  of  Guarico 
passed  through  Valencia,  but  they  are  now  carried  eastward  to 
Caracas  by  the  railway,  and  the  headquarters  of  the  large  importing 
wholesale  houses  have  been  changed  from  Valencia  to  Caracas  ana 
to  Puerto  Cabello.  The  city  formerly  supplied  merchandise  as  far 
east  as  Maracay,  as  far  south  as  the  Orinoco,  southwest  to  the  Apure 
River  and  the  Andes,  and  west  and  northwest,  including  both  San 
Felipe  and  Barquisimeto.  At  present  Valencia  itself  is  commer- 
cially tributary  to  Caracas  and  Puerto  Cabello.  Many  old  Valencia 
families  have  moved  to  Caracas  in  recent  years  and  established  them- 
selves there  while  still  retaining  their  land  interests  in  and  about 
the  capital  of  Carabobo.  Many  large  two  and  three  story  commer- 
cial buildings,  formerly  used  as  wholesale  warehouses  and  stores, 
and  numbers  of  beautiful  villas  in  the  outskirts  of  the  city  attest  its 
former  commercial  importance. 

The  trade  to  and  from  Barquisimeto  and  San  Felipe  is  now 
carried  to  the  coast  by  the  Bolivar  Railway,  making  those  centers 
commercially  tributary  to  Puerto  Cabello.  Only  the  industry  of  the 
inhabitants  and  the  initiative  of  several  industrial  establishments 
have  saved  Valencia  from  decay. 

Valencia  was  founded  in  1555  by  Alonzo  Diaz  Moreno,  being  12 
years  older  than  Caracas.     Its  location  is  inland  from  the  coast  range 


238     VENEZUELA:  A  COMMEKCIAL  AND  INDUSTRIAL  HANDBOOK. 

in  the  heart  of  the  Lake  Valencia  Basin,  the  lake  being  to  the  east  of 
the  city.  Although  the  elevation  is  1,577  feet  above  sea  level,  the 
district  is  very  hot  and  also  dry  during  the  dry  season  of  the  year. 
Tropical  diseases  are  prevalent,  and  frequently  veritable  epidemics 
of  malarial  fever  incapacitate  as  many  as  20  per  cent  of  the  people 
during  the  season  following  the  rains.  The  country  surtounding 
the  town  is  entirely  Jevel;  the  foothills  of  the  coast  range  are  10 
miles  to  the  north,  and  the  country  to  the  south  and  southwest  merges 
into  the  great  plains.  The  rail  distance  from  the  Caribbean  Sea  at 
Puerto  Cabello  is  64  kilometers  (1  kilometer=0.62  mile),  and  the 
pass  over  the  mountains  is  595  meters  (1  meter=3.28  feet). 

The  city  is  well  laid  out  in  square  blocks,  the  main  avenues  being 
Camoruco  and  Occidente,  both  paved  with  concrete  and  served  by  an 
electric  street  railway  4.5  kilometers  long,  with  a  cross-town  line 
under  construction,  1.6  kilometers  in  length.  Camoruco  Avenue  is 
the  principal  residence  section,  and  the  construction  of  new  houses 
is  very  active  at  present. 

Electric  lights  are  provided  by  two  competing  companies,  the  rates 
now  being  the  lowest  in  Venezuela,  namely,  20  cents  per  month  per 
light  of  25  watts,  the  average  rate  for  the  towns  and  cities  of  the 
country  being  5  bolivars  per  light,  or  about  97  cents  United  States 
currency  per  month.  The  Valencia  Electric  Co.  (Electricidad  de 
Valencia)  has  a  capital  of  1,400,000  bolivars-  ($270,200),  divided  into 
shares  of  1,000  bolivars  ($193)  each.  The  other  electric  company 
has  a  capital  of  800,000  bolivars  ($154,400),  divided  into  shares  of 
100  bolivars  ($19.30)  each.  This  latter  company  had  never  paid 
an  adequate  dividend  to  the  stockholders  until  the  majority  of  the 
stock  was  purchased  by  the  Branger  interests,  successful  and  wealthy 
cotton-mill  operators  of  Valencia,  who  now  pay  a  small  return  on 
the  investment.  The  Electric  Eailway  of  Valencia  is  incorporated 
with  a  capital  of  500,000  bolivars  ($96,500),  divided  into  shares  of 
100  bolivars  ($19.30)  each.  Stock  in  the  three  companies  was 
quoted  on  the  Caracas  market  in  December,  1920,  as  follows:  Va- 
lencia Electric  Co.,  115  per  cent,  showing  a  premium  of  15  per  cent 
above  par ;  "  La  Cumaca,"  formerly  at  75  per  cent,  or  25  per  cent 
below  par,  quoted  at  par  value.  The  street  railway  company  is 
controlled  by  the  Stelling  interests,  and  the  stock  is  not  quoted  on 
the  Caracas  market,  none  being  offered  to  the  public  for  sale.  The 
line  has  now  six  cars  in  operation. 

Valencia  has  long-distance  telephone  communication  with  Caracas, 
Puerto  Cabello,  Tocuyito,  La  Laguna,  Guigue,  Guataparo,  La  Sierra, 
and  points  in  the  Caracas  district  reached  by  the  Caracas  system, 
such  as  La  Guaira,  Petare,  etc.  The  National  Telegraph  System 
reaches  all  the  other  important  points  of  the  country  from  Valencia. 

The  Puerto  Cabello- Valencia  Eailway  runs  two  trains  daily  be- 
tween the  city  and  the  port,  leaving  Valencia  at  8.30  a.  m.  and  3.30 
p.  m.,  the  latter  train  making  through  connections  for  Puerto  Ca- 
bello with  the  express  train  over  the  "German  railway"  from 
Caracas.  The  running  time  is  2^  hours.  Trains  leave  the  port  for 
Valencia  at  the  same  hours,  passing  en  route.  The  Great  Railway 
of  Venezuela  (called  the  "German  railway")  operates  a  fast  train 
each  way  between  Valencia  and  Caracas  daily,  the  running  time 
being  7^  hours.    Connections  are  made  at  Caracas  for  La  Guaira, 


special  Agents  Series  N 


PUERTO  CABELLO  AND  VALENCIA  COMMERCIAL  DISTRICT.      239 

the  time  between  Caracas  and  Puerto  Cabello  and  between  Valencia 
and  La  Guaira  being  the  same,  namely,  10  hours  of  actual  rail  travel. 

Hotel  accommodations  in  Valencia  are  poor  and  inadequate.  The 
principal  hotel,  the  Universal,  has  about  20  rooms,  but  it  is  located 
in  an  old  building  and  the  food  and  accommodations  leave  much  to  be 
desired.  There  are  a  few  pensions,  but  these  also  have  their  draw- 
backs for  the  average  traveler.  There  are  two  clubs  that  are  patro- 
nized by  the  business  people  of  the  place  and  are  open  to  strangers 
upon  introduction  by  members.  Amusements  are  represented  by  two 
motion-picture  companies,  one  of  which  uses  the  old  bull  ring.  A 
new  and  more  elaborate  bull  ring  is  being  erected  by  the  Branger 
interests  and  will  also  be  equipped  for  motion-picture  exhibitions  at 
night.  There  are  four  small  public  parks  within  the  city  ^nd  also 
the  gardens  surrounding  the  railway  stations. 

In  1677  Valencia  was  attacked  and  taken  by  French  pirates,  who 
had  already  taken  and  sacked  Puerto  Cabello,  partly  destroving  both 
towns.  Near  Valencia  were  fought  the  two  great  battles  oi  the  wars 
for  the  independence  of  Venezuela  against  the  royalists  of  Spain. 
In  the  first  battle  of  Carabobo  in  1814,  the  Liberator,  Simon  Bolivar, 
was  unsuccessful,  but  the  second  battle  of  Carabobo  on  the  same  field 
in  1821  was  the  decisive  encounter  which  liberated  the  country  from 
the  domination  of  Spain. 

Valencia  has  twice  been  the  capital  of  Venezuela.  The  first  Con- 
gress of  the  new  Republic  was  in  session  in  the  city  when  it  was 
partly  destroyed  by  the  earthquake  of  March  26,  1812.  After  the 
dissolution  of  the  (jreat  Colombia,  of  which  Venezuela  and  Ecuador 
formed  a  part  together  with  Colombia,  it  was  the  scene  of  the  Con- 
stituent Congress  of  1830.  Again  in  1856  the  city  was  the  meeting 
place  of  the  celebrated  national  convention  following  the  revolution 
of  March,  and  it  also  served  the  same  purpose  in  1870  atter  the 
triumph  of  the  revolution  of  that  year. 

MONTALBAN. 

Twenty-three  miles  west  of  Valencia  is  the  town  of  Montalban, 
higher  up  in  the  hills  and  with  a  population  of  nearly  9,000  people, 
who  contribute  to  the  commerce  of  Valencia,  the  principal  industry 
being  the  cultivation  of  coffee  on  the  slopes  of  the  surrounding  hills. 
The  region  is  mineralized,  and  there  are  many  rumors  of  old  Spanish 
mines  in  the  vicinity,  though  no  deposits  are  worked  at  present. 
Montalban  is  on  the  highway  from  Valencia  to  Barquisimeto  and 
San  Felipe,  via  Nirgua. 

NIRGUA. 

Nirgua  lies  halfway  between  Valencia  and  Barquisimeto  in  the 
State  of  Yaracuy,  but  south  of  the  watershed,  at  the  western  extrem- 
ity of  the  Coast  Range,  on  the  alluvial  plain  of  the  River  Buria. 
The  town  was  founded  in,  1628  by  the  Spaniards,  who  worked  copper 
mines  in  the  vicinity.  The  population  is  about  4,000,  commercially 
tributary  to  Valencia  and  Puerto  Cabello.  Merchandise  is  handled 
by  small  two-wheeled  mule  carts  from  Valencia.  The  principal  ex- 
port products  are  coffee  and  tobacco.  There  are  said  to  be  large  de- 
posits of  sulphur  in  the  vicinity,  and  a  small  copper  mine  is  worked 
at  present  by  the  Buria  '  lining  Co.,  composed  of  local  merchants. 


240     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

YARITAGVA. 

Twenty  miles  farther  along  the  highway  toward  Barquisimeto  lies 
the  town  of  Yaritagua,  which,  with  the  exception  of  Nirgua  and  San 
Felipe,  is  the  only  other  town  of  importance  in  the  State  of  Yaracuy. 
The  place  is  tributary  commercially  to  Barquisimeto  and  is  supplied 
at  wholesale  from  Puerto  Cabello.  The  district  is  famous  for  its  pro- 
duction of  good  tobacco,  which  is  shipped  to  the  cigarette  factories 
of  Caracas. 

SAN  FELIPE. 

The  capital  of  the  State,  San  Felipe — connected  with  the  port  of 
Tucacas  by  a  branch  of  the  Bolivar  Eailway,  via  Palma  Sola,  and 
also  with  Puerto  Cabello  by  a  highway,  over  which  a  great  deal  of 
the  present  traffic  passes — is  situated  near  the  headwaters  of  the 
River  Yaracuy  and  is  surrounded  by  a  series  of  rich  agricultural  and 

¥astoral  valleys,  on  the  sides  of  which  coifee  and  cacao  are  produced, 
he  town  and  district  are  tributary  commercially  to  Puerto  Cabello. 

GUIGUB. 

The  small  town  of  Guigue,  on  the  southern  shore  of  Lake  Valencia, 
is  the  capital  of  the  Gomez  district^  and  is  connected  with  the  "  Ger- 
man railway  "  by  a  short  line  4.81  kilometers  in  length  (1  kilometer = 
0.62  mile)  from  the  town  down  the  Guigue  River  to  the  lake,  whence 
traffic  is  carried  across  the  lake  to  connect  with  the  railway  at  a  point 
between  Mariara  and  La  Cabrera.  There  is  also  a  road  which  runs 
from  Valencia  around  the  lake,  coming  out  at  Maracay.  The  region 
is  one  of  cotton  fields,  sugar  estates,  and  cattle  pastures.  The  inhabit- 
ants number  some  4,000. 

TOWNS  EAST  OF  VALENCIA. 

Tributary  to  Valencia,  but  supplied  from  Caracas  and  Puerto 
Cabello,  are  also  the  agricultural  towns  along  the  railway  between 
Valencia  and  Maracay,  the  latter  being  included  in  the  Caracas 
district  commercially,  though  the  Puerto  Cabello  merchants  compete 
for  the  trade.  These  are  Guacara,  San  Joaquin,  Mariara,  and  La 
Cabrera. 

TOWNS  IN  STATE  OF  COJEDES. 

South  of  Valencia,  through  which  their  traffic  passes,  are  the  towns 
of  San  Carlos,  Tinaco,  Tinaquillo,  El  Baul,  and  Pao,  in  the  State 
of  Cojedes,  lying  entirely  ,within  the  area  of  the  great  plains  of 
Venezuela.  The  region  formerly  was  devoted  to  cattle  raising*  ex- 
clusively, but  in  recent  times  cotton  and  rice  cultivation  have  become 
important.  Tinaquillo  and  Tinaco  are  on  the  recently  repaired  and 
improved  wagon  road  leading  from  Valencia  to  San  Carlos,  which 
forms  an  important  link  in  the  Great  Western  Highway  of  Venezuela 
now  under  construction  to  the  Colombian  border  via  Guanare  and 
Barinas.  All  along  the  road  are  cattle  pastures  of  artificial  grasses 
and  evidences  of  an  increasing  cultivation  of  cotton  and  rice. 

East  of  San  Carlos  lies  the  old  town  of  Pao  de  San  Juan  Bautis^a, 
the  center  of  the  most  populous  district  of  the  State  of  Cojedes,  the 
wealth  of  the  people  being  represented  principally  in  cattle.    A  few 


PtJEBirO  GABELLO  AKD  YALENGU  COMMERCIAL  DISTRICT^      241 

years  ago,  what  was  said  to  have  been  a  rich  deposit  of  copper  ore 
was  opened  up  near  this  place,  having,  in  colonial  times,  been  worked 
with  profit  by  the  Spaniards.  Communication  is  by  trail  with  San 
Carlos,  Tinaco,  and  Tinaquillo  and  thence  to  Valencia.  The  Biver 
Pao  flows  to  join  the  Portuguesa  below  the  town  pf  El  Baul,  which 
is  reached  by  small  steamers  coming  up  the  Orinoco  and  Apure 
rivers  during  the  height  of  the  rainy  season.  The  regions  ox  the 
rivers  that  drain  southward  into  the  Apure  contain  many  areas  sub- 
ject  to  overflow  durins^  the  rainy  season,  the  higher  mesas  and  pla^ 
teaus  appearing  as  islands.  During  the  wintei  months  the  Uanos 
suffer  from  lack  of  water  and  are  very  hot  and  unheaithful. 

GUANARE  AND  BAEINAS. 

In  the  State  of  Portuguesa  the  principal  town  is  Guanare,  the 
capital.  It  is  an  ancient  Spanish  colonial  town,  founded  by  Fran- 
cisco de  Leon  in  1593.  Besides  the  usual  live  stock,  coffee,  and  cacao 
are  grown  in  the  neighborhood  and  exported  via  Bocono  and  Tmjillo, 
to  Maracaibo.  Barinas,  farther  to  the  southwest,  was  formerly 
famous  for  its  tobacco.  Communication  is  down  the  Santo  Domingo 
Biver  during  the  rainy  season,  to  connect  with  navigation  on  the 
Upper  Apure  at  Puerto  Nutrias.  In  the  dry  season  traffic  crosses 
the  range  to  Merida. 

The  western  part  of  Venezuela  was  settled  by  the  Spaniards  earlier 
than  the  east,  and  the  old  towns  of  Guanare  and  Barinas  were  situ- 
ated at  the  crossing  of  many  routes,  to  and  from  the  northern  coast, 
the  Apure  and  Oitqoco,  and  the  western  side  of  the  Andes.  Many 
old  and  fine  buildings  indicate  a  former  prosperity.  The  construc- 
tion of  the  Great  Western  Highway,  on  which  the  Government  is 
now  expending  great  energy,  will  help  both  places.  At  present, 
commerce  is  principally  with  San  Fernando  de  Apure  and  Ciudad 
Bolivar  during  the  season  of  high  water  in  the  rivers,  because  freight 
is  cheaper  by  this  longer  route  than  by  pack  animal  over  the  range 
to  the  west  or  across  the  great  llanos  to  Valencia  or  Barquisimeto. 

The  river  port  for  Guanare  is  Puerto  Guerrilandia,  15  miles  south 
of  the  town  on  the  Guanare  River. 

The  port  of  Puerto  Nutrias,  on  the  Apure  River^  is  the  point  of 
river  shipment  for  both  Barinas  and  Libertad,  in  the^  State  of 
Zamora.  The  town,  like  Libei^ad,  has  about  3.000  inhabitants  and 
exports  hides,  deerskins,  some  tobacco,  and  f  eatners  of  the  ^  garza/' 
or  aigrette  crane. 

BAKQmSIMETO. 

Barquisimeto,  capital  of  the  State  of  Lara,  is  situated  at  the  north- 
ern edge  of  the  plain  which  extends  southwest  to  Tocuyo.  It  is  the 
center  for  the  commerce  of  the  State,  as  well  as  for  the  region  of  the 
northern  Andes.  Communication  is  by  means  of  the  Bolivar  Rail- 
way to  the  port  of  Tucacas  and  thence  to  Puerto  Cabello  by  launch 
twice  a  week.  It  has  a  wagon  road  to  the  port  and  also  to  Valencia, 
via  Yaritagua  and  Nirgua.  The  town  is  an  old  one,  having  been 
founded  in  1552.  Both  Tocuyo  and  Carora  are  tributary  to  Bar- 
quisimeto. Tocuyo  is  even  older  than  the  capital,  and  is  well  located 
on  the  right  bank  of  the  River  Tocuyo,  which  is  navigable  for  canoes 

T9747*— 22 ^17 


242     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

up  as  far  as  Siquisique,  north  of  Carora.  Carora  has  some  fine 
grazi^  land  in  the  district,  and  both  towns  are  higher  in  elevation 
than  Barquisimeto  and  therefore  more  healthful.  In  Gen.  Castro's 
time  a  considerable  sum  was  spent  on  the  construction  of  a  cart  road 
from  Barquisimeto  via  Carora  to  San  Timoteo  on  Lake  Maracaibo^ 
but  the  route  soon  fell  into  disuse  because  the  easiest  route  was  to 
Barquisimeto  and  i^ot  over  the  broken  range  of  hills  to  the  west 
through  more  than  100  miles  of  undeveloped  country.  From  Siqui- 
sique several  old  mule  trails  cross  the  range  of  hills  to  the  towns  in 
the  State  of  Falcoa  to  the  north.  The  only  town  of  any  importance 
is  San  Luis,  situated  in  the  hills  on  the  north  side  of  which  begins 
the  coastal  plain,  with  its  dry  climate  and  cactus  vegetation,  being  a 
repetition  of  the  Barquisimeto  area. 

CORO  AND  CAPATARmA. 

Coro,  now  the  capital  of  the  State  of  Falcon,  was  the  first  capital 
of  Venezuela  under  Spanish  colonial  rule.  Its  port  is  La  Vela  de 
Coro,  with  which  it  is  connected  by  a  narrow-gauge  railway  13.3^ 
kilometers  (1  kilometer =0.62  mile)  in  length,  trade  being  with  the 
Dutch  island  of  Curagao.  The  principal  industry  of  the  region  is 
goat  raising,  the  animals  being  bred  for  their  skins.  The  region  is  an 
arid  plateau  or  high  coastal  plain,  very  hot  and  dry.  There  are  salt 
deposits  and  coal  mines  operated  by  the  Government  in  the  vicinity. 

The  small  coast  town  of  Capatarida  grows  excellent  tobacco, 
which  is  sent  to  Curasao,  via  Coro.  American  and  British  oil  com- 
panies have  recently  taken  up  oil-land  concessions  throughout  this 
coastal  region  and  are  exploring  for  petroleum  both  west  and  east 
of  Coro. 

PUERTO  CABELLO. 

Situated  about  100  miles  by  sea  west  of  La  Guaira,  the  harbor  of 
Puerto  Cabello  is  the  best  in  V  enezuela,  and  in  colonial  times  this  was 
the  chief  port  of  the  country.  The  protected  area  of  the  harbor  is 
small  but  easily  accessibfe  to  the  largest  vessels  calling  at  Venezuelan 
ports.  Through  the  port  are  exported  most  of  the  products  of  the 
States  of  Carabobo,  xaracuy,  Cojedes,  and  northern  Portuguesa* 
The  establishment  of  the  Venezuelan  Meat  Products  Syndicate  pack- 
ing plant  in  1913  gave  the  port  an  additional  importance  as  a  oeef- 
shipping  point,  the  beef  cattle  being  driven  in  overland  from  the 
holding  pastures  in  and  around  Valencia  aiid  Maracay,  after 
originating  in  the  plains  farther  to  the  south  and  southwest. 

The  town  is  located  at  the  foot  of  the  mountains  of  the  Coast  Kange, 
the  outlet  inland  being  by  way  of  the  small  river  gorge  through 
which  the  Puerto  Cabello  &  V  alencia  Railway  and  the  cart  road 
find  their  way  to  the  interior  region  of  Valencia.  From  the  land 
side  on  the  east  there  is  a  series  of  coral  reefs  forming  a  curved 
barrier  to  the  north  and  then  west,  terminating  in  a  sort  of  island 
upon  which  is  located  the  old  fort  and  which  forms  the  sea  protection 
for  the  harbor.  The  entrance  to  the  harbor  runs  nearly  east  and 
west.  The  port  has  about  16,000  people  engaged  in  shipping  work 
and  employed  in  the  national  dry  dock  and  shops  of  the  Government. 
Good  agricultural  land  does  not  exist  in  any  great  area  along  the 
coast  until  the  district  of  Ocumare  is  reached,  some  20  miles  to  the 


PUERTO  CABELLO  AND  VALENCIA  COMMERCIAL  DISTRICT.      243 

east,  though  the  sides  of  the  small  valleyi^  of  the  Coast  Kange  are 
planted  to  coffee  and  cacao  in  many  places. 

Puerto  Cabello  ranks  third  in  importance  among  Venezuelan  ports 
of  export  and  import,  being  next  to  Maracaibo.  There  is  a  good 
wharf  owned  and  operated  by  the  Govemmwit,  which  charges  lower 
rates  than  those  ox  the  La  Guaira  Harbor  Corporation,  a  British 
company ;  this  fact  causes  the  port  to  have  a  considerable  coastwise 
traffic,  and  many  exports  originating  both  east  and  west  along  the 
coast  are  credited  to  Puerto  Uabello.  The  coastwise  trade,  both  in- 
coming and  outgoing,  amounted  in  1919  to  49,687  metric  tons  (1 
metric  ton=2,205  pounds). 

Puerto  Cabello  has  under  its  customs  jurisdiction  the  coasting  ports 
of  Tucacas,  Chichiriviche,  and  Ocumare  de  la  Costa,  Tucacas  being 
a  port  of  export  only,  to  facilitate  the  movement  of  copper  ore  and 
matte  from  the  mines  of  Aroa. 

Twenty  thousand  tons  of  shipping  can  be  moored  at  the  wharf  at 
Puerto  Cabello.  The  imports  m  1919  an^ounted  to  20.7  per  cent  by 
weight  and  11.8  per  cent  by  value  of  those  for  all  Venezuela,  while 
the  exports  amounted  to  18.9  per  cent  by  weight  and  32.1  per  cent 
by  value.  Puerto  Cabello  ranks  first  as  a  port  of  export  for  hides 
and  skins,  second  for  coffee,  and  third  for  cacao.  Its  coasting  trade 
amoimted  in  1919  to  approximately  12  per  cent  of  that  for  the  entire 
country. 

Following  are  the  steamship  companies  whose  vessels  come  to 
Puerto  Cabello :  Red  "  D  "  Line  ^from  New  York) ;  New  Orleans  ^ 
South  American  Steamship  Co.  (W.  R.  Grace  &  Co.,  from  New  Or- 
leans) ;  Caribbean  Steamship  Co.  (from  New  York) ;  Harrison  Line 
(from  Liverpool) ;  Ley  land  Line  (from  Liverpool) ;  Compagnie 
G6nerale  Transatlantique  (from  Havre) ;  Compaiiia  Trasatlantica 
Espanola  (from  Barcelona) ;  La  Veloce  (from  Genoa) :  Royal  Dutch 
West  Lidia  Mail  (from  Amsterdam) ;  Compaiiia  Venezolana  de 
Navegaci6n  (Venezuelan  coastwise  service  to  all  domestic  ports). 

Two  30,000-gallon  fuel-oil  tanks  have  been  erected  by  the  Carib- 
bean Petroleum  Co.  to  supply  the  Bolivar  Railway  and  the  rack-rail 
section  of  the  Puerto  Cabello  and  Valencia  Railway  with  fuel  oil 
and  also  for  local  use. 

Additional  importance  is  given  the  port  by  the  establishment  of  the 
Dique  y  Astillero  Nacional  (National  Dry  Dock  and  Navy  Yard), 
which  has  two  floating  docks  in  operation  for  the  repair  of  coasting 
vessels  and  small  steamers,  a  large  machine  shop,  and  building  f  acili* 
ties  for  small  vessels. 

[In  connection  with  this  report  there  was  submitted  a  very  detailed  account 
of  conditions  at  the  port  of  Puerto  Cabello,  containing  full  data  regarding 
anchorage,  pilotage,  wharves,  warehouses,  customs  duties  and  regulations, 
water,  fuel,  drydocMng,  fines,  formalities  to  be  observed  by  masters,  steve- 
doring, and  other  matters  pertaining  to  shipping.  This  is  available  for  loan 
to  interested  persons,  who  may  obtain  it  by  applying  to  the  Bureau  of  Foreign 
and  Domestic  Commerce,  mentioning  file  No.  46318.] 

TUCACAS  AND  CHICHIRIVICHE. 

The  port  of  Tucacas  is  the  terminus  of  the  Bolivar  Railway,  which 
connects  San  Felipe  and  Barquisimeto  with  the  sea.  Its  cnief  im- 
portance lies  in  the  exports  of  copper  ore  and  matte  from  the  mines 
of  the  South  American  Copper  Syndicate  at  Aroa  and  in  its  traffic 


244     VENEZUELA :  A  COMMEBCIAL  AND  INDUSTEIAIi  HANDBOOK. 

in  the  products  and  imports  of  the  Barquisimeto  region.  The  cop- 
pjer  mines  of  Aroa  were  long  worked  by  the  Spaniards  in  colonial 
times  and  formerly  belonged  to  the  family  of  Sim6n  Bolivar,  the 
Liberator  of  Venezuela,  Colombia,  and  Ecuador.  Bolivar  sold  them 
in  1812  to  the  English  company  for  £40,000  to  aid  him  in  prosecuting 
the  war  of  independence  against  the  royalist  forces  of  Spain.  In 
1891  the  mines  shipped  38,000  tons  of  copper  regulus,  but  the  product 
decreased  to  4,950  tons  in  1909  on  account  of  low  prices  for  copper. 
The  narrow-gauge  railway,  now  known  as  the  Bolivar  Railway,  was 
the  first  line  to  be  constructed  in  Venezuela.  It  was  primarily  de- 
signed to  serve  the  copper  mines;  construction  was  started  in  1873 
and  pushed  as  far  as  Aroa,  and  the  line  was  subsequently  continued 
to  Barquisimeto,  with  a  later  branch  to  San  Felipe, 

The  mining  company  maintains  ore  breakers  at  Tucacas  from 
which  the  stored  ore  and  matte  is  transferred  by  means  of  lighters 
to  steamers  lying  in  the  open  roadstead.  The  town  itself  is  small 
and  devoid  of  interest  or  comfort  for  travelers. 

Administration  of  the  port  is  under  the  jurisdiction  of  the  Puerto 
Cabello  customhouse,  it  being  a  port  of  export  only  for  the  products 
of  the  mines. 

A  little  farther  along  the  coast  to  the  west  is  the  small  port  of 
Chichiriviche,  near  the  mouth  of  the  Tocuyp  River.  There  are  no 
port  works  or  even  a  wharf,  the  chief  importance  lying  in  the  fishing 
banks  in  the  neighborhood,  from  which  turtles,  a  variety  of  small 
oysters,  and  small  supplies  of  dried  fish  are  shipped  to  ]f  uerto  Ca- 
bello for  the  interior  market  (principally  in  Valencia),  and  the  ship- 
ments of  lumber  brought  down  the  Tocuyo  River  during  the  wet 
season  and  transferred  to  Puerto  Cabello  for  the  Valencia  and  Cara- 
cas markets. 

In  1920  this  small  port  of  Chichiriviche  became  the  shipping  base 
of  the  North  Venezuelan  Petroleum  Co.,  a  British  concern  owning  oil 
land  concessions  along  the  coast  to  the  east,  the  machinery  and  sup- 

glies  for  road  building  and  well  drilling  being  unloaded  here  from 
'uerto  Cabello.  The  initial  effort  of  the  company  is  in  road  build- 
ing for  a  distance  of  more  than  60  miles  through  the  low,  swampy 
country  as  far  as  the  sandy  hills  that  are  encountered  over  the  lai^ 
20  miles  on  the  route  to  the  drilling  site  selected,  which  is  at  an  eleva- 
tion of  about  200  feet  above  sea  level  and  back  from  the  coast.  About 
100  men  were  being  employed  in  this  work  The  rains  in  this  sec- 
tion of  the  coast  do  not  begin  until  November  and  last  until  late  in 
February,  during  which  time  operations  have  to  be  practically  sus- 
pended by  the  company.  Most  of  the  country  is  heavily  wooded, 
except  near  the  coast,  wnere  there  are  many  areas  of  lowlands  partly 
inundated  by  the  sea,  forming  marshy  ground  very  difficult. of  pas- 
sage for  heavy  traffic. 

Communication  with  Tucacas  from  Puerto  Cabello  is  by  the  launch 
of  the  Bolivar  Railway,  which  leaves  Puerto  Cabello  on  Wednesdays 
and  Saturdays  at  2  p.  m.  The  distance  by  water  is  29  miles.  Travel- 
ers are  forced  to  spend  the  night  in  Tucacas  and  take  the  train  the 
following  day  for  Barquisimeto  and  way  points,  or  for  San  Felipe. 
If  the  trip  is  made  on  Saturday,  Sunday  has  to  be  spent  at  the  port, 
as  the  railway  does  not  run  a  train  on  Sunday. 

Most,  or  nearly  all,  of  the  products  of  the  Barquisimeto  region — 
coffee,  cacao,  and  hides  and  skins — pass  out  through  Tucacas  to 


PUERTO  CABELLO  AND  VALENCIA  COMMERCIAL  DISTRICT.      245 

Puerto  Cabello,  where  the  Barguisimeto  merchants  buy  their  supplies 
of  merchandise  and  dispose  of  their  collections  of  export  products. 
Recently,  Barquisimeto  merchants  have  also  been  buying  at  wholesale 
from  agencies  of  foreign  export  commission  houses  established  in 
Caracas  and  covering  this  territory  with  salesmen  who  make  their 
trips  periodically  by  automobile. 

Goods  brought  into  Tucacas,  by  coastwise  traffic,  during  the  year 
1919  amounted  to  8,463  metric  tons  (1  metric  ton=2,205  pounds), 
valued  at  22,867,974  bolivars  ($4,413,519). 

LA  VELA.  DE  CORO. 

The  port  of  La  Vela  de  Coro  is  connected  with  Coro,  the  capital  of 
the  State  of  Falcon,  by  a  short,  narrow-gauge  line  built  across  the 
base  of  the  peniiisula  oi  Paraguana  in  1893  and  now  owned  and  oper- 
ated by  the  Venezuelan  Government.  The  port  has  a  wooden  pile 
pier  75  meters  (1  meter=3.28  feet)  in  length  and  allowing  sufficient 
depth  of  water  to  take  small  coasting  steamers  alongside  in  good 
weather.  Cumarebo,  the  small  port  to  the  east,  also  has  a  small  land- 
ing pier  for  coastwise  schooners  and  sloops,  as  has  Capatarida,  west 
of  Coro,  but  only  La  Vela  is  a  port  of  call  for  the  Venezuelan  Coast- 
wise Steamer  Line. 

During  the  year  1919,  La  Vela  exported  to  Curasao  5,097  metric 
tons  (1  metric  ton=2,205  pounds),  valued  at  3,378.487  bolivars 
($652,048),  consisting  principally  of  goatskins,  divi-divi  pods,  and 
fertilizer.  A  total  of  12,663  tons  of  goat  guano  were  shipped  direct 
to  the  United  States  during  that  year.  Corn,  lard,  beans,  salt  meats, 
and  other  foodstuffs,  including  live  beef  cattle,  are  also  exported  to 
the  Dutch  West  Indies. 

The  total  imports  in  1919  amounted  to  234  metric  tons,  valued  at 
702,741  bolivars  ($135,629),  of  which  goods  to  the  value  of  203,243 
bolivars  ($39,226)  came  from  Curagao,  354,096  bolivars  ($68,341) 
from  the  United  States,. and  140,218  bolivars  ($27,062)  from  Great 
Britain. 

The  chief  item  of  export  is  goatskins,  of  which  about  600  tons  are 
exported  annually,  going  chiefly  to  Curagao.  The  region's  total  pro- 
duction of  skins  is  much  more  than  this  amount,  but  the  rest  is  trans- 
ferred by  coastwise  trade  to  Puerto  Cabello. 

For  several  years  past  the  Coro  region  has  produced  for  export  to 
the  United  States  approximately  6,500  tons  of  goat  manure  per  an- 
num, but  recent  reports  indicate  that  the  available  supply  is  rapidly 
diminishing,  although  the  low  export  price  for  skins  will  have  the 
effect  of  increasing  the  number  of  animals  in  the  region  for  some 
time  to  come — herders  claiming  that,  at  present  prices,  it  no  longer 
pays  to  kill  the  male  goats  for  their  skins. 

AGRICULTURE. 

AREA  OF  CULTIVATION. 

The  Valencia  region  has  already  been  described  as  the  center  of 
the  greatest  agricultural  development  in  Venezuela.  The  agricul- 
tural lands  surround  Lake  Valencia,  with  the  largest  areas  of  level 
tillable  lands  lying  east  and  west  of  the  lake — Maracay  and 
Valencia^ — and  the  smallest  areas  actually  developed  being  along  the 


246     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

southern  edge  of  the  lake.  Once  out  of  the  level  alluvial  lands  of  the 
old  lake  basin  of  the  Valencia  district  proper,  one  finds  the  next 
permanent  cultivations  down  toward  the  sea,  consisting  of  coffee 
plantations  on  the  hillsides  on  both  sides  of  the  river  canyon  (or 
narrow  valley)  through  which  the  railway  passes  to  reach  Puerto 
Cabello.  From  here  cultivated  areas  occur  to  the  east  and  west, 
along  the  sea  side  of  the  coast  range  of  mountains,  passing  beyond 
Ocumare  de  la  Costa  to  the  east  and  reaching  on  the  west  as  far  as 
the  mouth  of  the  Yaracuy  Kiver.  Farther  to  the  west  in  the  area 
surrounding  the  port  of  Tucacas,  the  terminus  of  the  Bolivar  Rail- 
way, there  is  an  area  more  or  less  permanently  planted  to  corn, 
beans,  and  some  cotton;  there  are  occasional  small  plantations  of 
coconuts  along  the  immediate  coast,  but  not  in  sufficient  quantity  to 
permit  of  exportation  except  for  occasional  small  cargoes  to  Curagao 
and  Aruba  in  the  West  Indies. 

Proceeding  to  the  westward,  one  finds  the  next  cultivated  area 
around  the  mouth  of  the  Tocuyo  River,  where  corn,  beans,  and  to- 
bacco are  grown,  but  in  a  more  or  less  desultory  manner  by  the 
sparse  population.  In  the  great  region  of  the  interior  of  the  State 
of  Falcon,  to  the  west  of  the  Tocuyo  River  Valley  there  are  inter- 
mediate areas  under  cultivation;  coffee  and  cacao  are  raised  farther 
inland  along  the  higher  hills  of  the  range,  near  the  villages  of 
Jacura,  Carorita,  Colina,  San  Pedro,  Agua  Larga,  San  Luis,  and 
Pedregal. 

Down  toward  the  coast  in  the  region  of  Coro  there  are  three  areas 
cultivated  in  corn  and  beans,  the  first  in  and  around  the  village  of 
Cumarero  and  extending  inland  as  far  as  La  Soledad;  the  second 
lying  between  Coro  and  Cumarero ;  and  the  third  extending  inland 
from  Coro.  These  areas  produce  sufficient  corn,  beans,  and  tobacco 
for  local  consumption  and  for  a  considerable  export  of  corn  to 
Curasao  and  other  islands  of  the  Dutch  West  Indies.  All  along  the 
coast  to  the  west  of  Coro  and  throughout  the  peninsula  of  Para- 
guana,  population  is  lacking  except  for  a  few  small  villages  engaged 
in  goat  farming  on  a  small  scale,  and  the  country  is  dry  and  arid, 
vegetation  being  limited  to  the  divi-divi  tree  (of  commercial  value) , 
cacti,  scrubs,  and  the  like. 

Inland,  Carora,  Siquisique,  and  San  Miguel,  lying  along  the  To- 
cuyo River  Valley  at  a  higher  elevation  than  the  lands  farther  toward 
the  coast,  have  permanent  areas  in  coffee,  cacao,  and  cattle  pastures, 
and  seasonal  farming  of  corn  and  beans,  but  the  latter  products  are 
not  produced  in  sufficient  quantities,  and  transportation  to  the  coast 
is  lacking  to  make  them  of  value  except  for  local  consumption. 

All  along  the  line  of  the  Bolivar  Railway  from  Tucacas  to 
Barquisimeto  there  are  permanent  areas  in  coffee,  some  cacao,  and,  in 
the  river  flats,  tobacco. 

A  large  area  of  good  lands  extends  along  the  line  between 
Barquisimeto  and  San  Felipe,  via  Yaritagua  and  Chivacoa,  the 
reffion  producing  the  usual  coffee,  cacao,  corn,  beans,  and  tobacco,  as 
well  as  considerable  sugar  cane. 

Farther  east  again,  toward  Valencia,  there  is  another  area,  circu- 
lar in  shape  and  reaching  south  as  far  as  Tucuragua  (north  of  San 
Carlos),  north  as  far  as  the  edge  of  the  range  back  of  Montalban, 
east  as  far  as  Bejuma,  and  west  as  far  as  the  village  of  Nirgua. 


PUEETO  CABEULO  AND  VAI4BNCIA  COMMERCIAL  DISTRICT.      247 

San  Carlos,  Tinaco,  Tinaquillo,  and  Pao  have  large  areas  under 
artificial  pasture  for  cattle,  the  fields  being  fenced  and  planted  to 
either  Para  or  guinea  grasses;  the  lands  so  used  are  increasing 
annually  and  are  valuable  principally  in  affording  holding  pastures 
for  beef  cattle  brought  in  by  easy  stages  toward  the  coast  for 
eventual  marketing  m  the  Puerto  Cabello  packing  house  or  in 
Caracas. 

The  last>mentioned  region  is  also  progressing  rapidly  in  the  culti- 
vation of  cotton  and  rice.  The  acreage  planted  to  these  two  staples 
was  larger  than  ever  before  in  1920,  the  cultivation  being  stimulated 
by  the  high  prices  obtained  during  1918  and  1919. 

Far  to  the  southwest,  Guanare  and  Barinas  produce  coffee  and 
tobacco,  the  former  product  passing  over  the  Andes  to  the  Mara- 
caibo  market  and  the  latter  proceeding  down  the  rivers  to  an  eventual 
market  in  Ciudad  Bolivar. 

At  El  Baul  and  Calabozo,  in  the  heart  of  the  great  llanos,  there 
are  small  areas  devoted  to  com  and  beans,  princi{)ally  for  the  local 
population,  which  is  sparse.  Transportation  facilities  are  lacking 
in  this  region. 

The  exportable  products  of  the  Puerto  Cabello  and  Valencia  com- 
mercial district  are  coffee,  cacao,  and  tobacco,  on  a  permanent  basis, 
while  com  and  beans  were  exported  in  1918  and  1919  during  the 
period  of  extraordinarv  high  prices,  com  going  even  to  the  t^ited 
States  and  beans  to  France  during  the  war.  Tobacco  and  cotton 
are  grown  for  the  domestic  market,  the  cotton  mills  of  Valencia  and 
Caracas  taking  the  crop. 

In  summing  up^the  agricultural  possibilities  of  the  various  regions 
mentioned  awve,  the  two  outstanding  features  are :  First,  the  tropi- 
cal and  semitropical  conditions  of  the  climate,  with  the  prevailing 
lack  of  sufficient  rain  throughout  the  western  portion  along  the 
dry  plateau  of  the  coast ;  and,  second,  the  prevailing  lack  of  labor  for 
field  work.  There  is  not  the  population  to  furnish  a^icultural 
laborers  in  sufficient  numbers  to  provide  for  any  great  increase  in 
production. 

LABOR  CONDITIONS. 

The  people  of  the  districts  mentioned  are,  as  has  been  said,  of  a 
mixed  race,  the  Negro  strain  predominating  along  the  coast  and  the 
Indian  in  the  interior.  The  people  of  the  small  towns  and  villages 
of  the  interior  and  the  bulk  of  the  population  in  the  larger  towns — 
except  in  Valencia,  where  a  great  deal  is  being  done  for  better  living 
conditions  among  their  operatives  by  the  cotton  factories  established 
there — ^live  in  a  quite  primitive  manner,  and  their  daily  diet  leaves 
much  to  be  desired.  In  the  country  and  small  villages  the  men  seem 
to  prefer  tilling  a  small  patch  of  ground  in  corn  during  the  rainy 
season,  planting  a  few  stalks  of  bananas  and  plantains  or  a  little 
sugar  cane  for  the  juice,  and  living  "  from  hand  to  mouth,"  without 
ambition  or  prospect,  though  their  labor  can  be  counted  on  for  the 
coffee  picking  during  the  harvest  at  the  end  of  the  year,^  coming  as 
it  does  at  the  end  of  the  corn  and  bean  harvest  period. 

Wages  for  usual  field  work  are  3  bolivars  ^$0.58)  per  day  of  10 
hours,  work  being  carried  on  under  the  ancient  "  tarea  "  or  task 
system;  each  man  is  given  a  certain  measured  amount  of  work  for 
tne  day,  the  task  being  known  from  immemorial  custom  of  the  coun- 


248     VENEZUELA :  A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

try.  After  a  man  has  finished  his  allotment  for  the  day  he  can  either 
take  another  or  leave.  For  work  in  the  oil  fields,  timber  cutting,  road 
work,  and  the  like,  as  high  as  5  or  6  bolivars  ($0.96  or  $1.16)  per  day 
are  paid.  As  a  rule,  the  men  average  about  three  days  per  week 
actually  on  the  job,  even  in  planting  or  harvest  season,  depending  to 
a  great  extent  upon  their, own  small  plantations  for  their  families' 
livelihood. 

In  the  coffee  areas  most  of  the  plantations  have  been  developed  by 
a  system  whereby  the  owner  of  the  land,  usually  a  wealthy  resident 
of  Caracas,  Valencia,  or  Barquisimeto,  contracts  with  a  man  and  his 
family  to  plant  and  care  for  a  given  area  set  out  to  coffee  trees  until 
full  bearing,  when  the  man  can  either  deliver  the  green  coffee  to  the 
plantation  owner  at  so  much  per  quintal,  or  sometimes  sell  the  work 
performed  at  a  fixed  and  prearranged  valuation.  The  owner  of  the 
land  in  the  meantime  furnishes  the  man  and  his  family  with  the 
necessities  of  life  on  account. 

Com,  beans,  and  cotton  are  planted  usually  on  the  "mediero'* 
system,  according  to  which  the  "  hacienda  "  (that  is,  the  owner) 
furnishes  the  tillable  field  (or  part  of  a  field),  fenced  and  ready  for 
the  plow,  and  also  seed,  implements,  and  draft  animals,  free  to  the 
tenant  farmer,  who  is  usually  a  man  with  several  boys  of  working 
affe,  or  with  several  male  relatives  who  live  with  him  during  the 
planting  and  harvest  seasons  and  share  in  the  proceeds.  The  owner 
provides  also  means  of  sustenance  during  the  crop  season  on  account. 
The  "  mediero  "  receives  one-half  of  the  crop  in  the  field  at  the  end 
of  the  season,  and  is  paid  for  assisting  in  the  harvest  of  the  owner's 
half  at  day  wages  or  by  contract  if  he  perf orms#  this  part  of  the 
necessary  crop  labor.  On  account  of  his  lack  of  transportation 
means,  harvesting  (that  is,  shelling)  machinery,  etc.,  ikhe  "  mediero  " 
usually  sells  his  part  of  the  crop  to  the  owner,  who  possesses  these 
necessary  facilities,  at  a  fixed  price,  either  prearranged  or  corre- 
sponding to  the  market  price  obtainable  at  the  time  of  the  harvest 
and  delivery. 

By  the  end  of  1920  there  were  some  40  American  gasoline  tractors 
in  use  in  the  Valencia  district,  and  wealthy  landowners  were  fully 
alive  to  the  necessity  of  supplementing  the  efforts  of  available  labor 
by  the  use  of  modem  machinery. 

EXCESS  PRODUCTION  AND  FUTURE  INCREASE. 

Very  large  areas  of  corn  and  beans  were  planted  during  1917  and 
1918  at  the  suggestion  of  the  Government,  and  enormous  yields  re- 
sulted during  two  ^ood  crop  seasons,  which  not  only  met  all  the  needs 
of  local  consumption,  but  left  a  considerable  excess  for  export.  A 
total  of  195,937  oushels  of  com  were  exported  from  Puerto  Cabello 
to  the  United  States  during  1917,  the  value  being  $208,526.  In  1918, 
67,398  bushels,  valued  at  $77,302,  went  to  the  United  States,  and 
there  were,  other  exports  of  cereals,  in  considerable  quantities,  to  the 
islands  of  the  West  Indies,  including  Cuba,  Porto  Rico,  and  Trinidad. 

Sugar  also  became  a  rather  important  item  during  the  war  years. 
In  1917  Puerto  Cabello  exported  to  the  United  States  6,480,276 
pounds  of  sugar,  valued  at  $244,942,  and  also  691,139  pounds  of  brown 
sugar  ("papel6n"),  valued  at  $16,074.  In  1918  exports  of  sugar  to 
the  United  states  totaled  7,705,748  pounds,  valued  at  $293,360,  while 


PUERTO  CABEULO  AND  VALENCIA  COMMERCIAL.  DISTRICT.      249 

the  brown  sugar  was  worth  $23,482.  Other  agricultural  products 
that  went  to  the  United  States  irom  Venezuela  during  these  years 
were  cottonseed  and  sesame-oil  cakes,  and  castor-bean  seed  for 
castor-oil  extraction. 

During  the  year  1919  Puerto  Cabello  sent  to  the  United  States 
5,434,889  pounds  of  sugar,  valued  at  $257,434,  while  in  1920  the 
amount  was  7,854,928  pounds  of  "  centrifugal  "  and  1,011,579  pounds 
of  "raw,"  with  a  combined  value  of  $631,070.  The  sugar  exports 
from  Puerto  Cabello  to  the  United  States  and  Great  Britain  came 
from  the  large  sugar  estates  in  the  Valencia  district  proper.  Great 
Britain  received  1,571  metric  tons  (1  metric  ton=2^05  pounds)  of 
brown  sugar  from  this  port  during  the  year  1919,  and  had  previously 
taken  large  amounts  during  the  war  years  of  1917  and  1918. 

The  largest  sugar  estate  m  the  Valencia  district  (it  being  also  the 
largest  in  Venezuela  outside  of  the  Lake  Maracaibo  sugar  region) 
is  that  of  "  Tacarigua,"  near  the  town  of  Guigue,  south  of  Xiake 
Valencia.  This  estate  had  1.600  hectares  under  cane  in  1919  and 
produced  3,700,000  kilos  (1  kilo=:2.2046  pounds)  of  white  sugar  of 
96  grades  polarized.  As  in  other  sugar  districts  of  the  country, 
the  industry  was  greatly  stimulated  by  the  high  prices  obtained 
during  1919  and  a  greatlv  increased  acreage  was  planted  to  cane, 
the  season  being  14  montns.  It  was  hoped  that  the  total  produc- 
tion of  "  Tacarigua  "  would  be  4,000,000  kilos  in  1920. 

It  is  calculated  that  each  hectare  (2.47  acres)  produces  50  tons  of 
raw  sugar  cane.  From  each  ton  it  is  estimated  that  50  kilos  of 
refined  sugar  is  obtained,  the  production  depending  upon  the  type 
and  condition  of  the  machinery  used. 

In  the  Barquisimeto  region  there  are  1,950  hectares,  divided  among 
four  estates  (the  largest  of  which  contains  800  hectares  in  cane), 
which  produce  a  total  of  3,600,000  kilos  of  sugar  per  annum. 

It  is  also  estimated  that  the  total  sugar  production  of  the  coimtry 
is  at  present  26,615  tons  of  white  sugar,  of  which  the  Puerto  Cabello 
and  Valencia  districts  produce  7,200  tons,  which  will  be  increased  by 
2,500  tons  when  various  smaller  "haciendas"  now  producing  only 
brown  sugar  for  domestic  consumption  shall  have  completed  the 
installation  of  new  machinery  for  the  extraction  of  white  sugar. 
The  consumption  of  white  sugar  in  Venezuela  is  possibly  6,000  tons, 
all  of  the  rest  being  exported ;  but  the  "  papelon,"  or  brown-sugar 
cake  of  the  country,  is  an  article  of  staple  diet  for  all  classes  of  the 
people.  The  amount  of  white  sugar  for  export  will  increase  during 
the  next  few  years  on  account  of  the  stimulation  of  the  industry, 
resulting  in  a  greater  acreage  planted  to  cane  and  the  changing  oi 
several  small  estates  to  the  production  of  white  sugar.  The  total 
increase  in  sugar  production  is  estimated  at  about  15,000  tons  for 
the  entire  country — principally  in  the  Lake  Maracaibo  region. 
Taking  account  of  the  increased  consumption  of  white  sugar  in  the 
country,  it  is  estimated  that  a  total  of  possibly  35,000  tons  will  be 
available  for  export  if  prices  remain  attractive. 

However,  during  1917,  1918,  and  1919  the  demand  for  export  had 
the  effect  of  greatly  increasing  prices  of  articles  for  domestic  con- 
sumption. These  prices  more  than  reflected  values  in  the  United 
States  and  worked  a  real  hardship  on  the  people;  the  exported 
amounts  of  lard,  corn,  beans,  and  sugar  did  not  always  represent 


250     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

any  real  excess  over  and  above  domestic  needs.  Late  in  1920  the 
sudden  drop  in  sugar  values  left  large  amounts  of  sugar  in  the 
country,  as  it  was  very  doubtful  whether  Venezuela  could  continue 
to  export  sugar  with  New  York  prices  around  4J  cents  per  pound  and 
still  compete  with  the  Cuban  and  Porto  Rican  production.  The 
Puerto  Cabello  and  Valencia  district  counted  on  an  export  of  sugar 
to  the  United  States  of  about  $500,000,  based  on  1919  prices. 

Corn  crops  were  very  good  for  1920,  in  anticipation  of  export 
trade,  but  prices  prevailing  in  the  United  States  would  no  longer 
permit  exportation  from  Venezuela.  However,  the  lack  of  sufficient 
rains  during  the  growing  season  in  the  entire  eastern  part  of  the 
country,  from  Barcelona  to  the  end  of  the  peninsula  of  Paria,  result- 
ing in  partial  crop  failure  for  that  region,  created  an  opportune  de- 
mand for  a  large  part  of  the  Valencia  district's  crop  of  corn  and 
beans,  the  two  great  staples  of  the  people  of  the  country. 

One  of  the  interesting  developments  brought  about  by  the  war 
in  the  export  trade  of  Puerto  (Jabello  was  the  increase  m  exports 
of  foodstuffs  to  the  islands  of  the  West  Indies,  consisting  principally 
of  corn,  beans,  and  lard,  together  with  some  coffee  and  cacao.  Cot- 
fee  sent  to  Curagao  was  tor  transshipment  to  the  United  States. 
During  the  first  half  of  1918  this  trade  amounted  to  $510,476,  as 
compared  with  only  $39,481  for  the  same  period  of  1917,  the  differ- 
ence being  caused  by  two  factors — (1)  bad  crops  in  the  islands  (es- 
pecially those  of  the  leeward  group  of  the  Dutch  West  Indies)  and 
their  inability  to  obtain  the  usual  food  supplies  from  the  United 
States  and  Europe  on  account  of  the  war  restrictions  on  the  export 
of  foodstuffs  from  the  belligerent  countries,  and  (2)  the  preoccupa- 
tion of  the  people  of  the  islands  with  the  production  of  sugar  for 
export  at  high  prices.  Charter  rates  for  the  many  small  Venezuelan 
and  Curasao  schooners  handling  this  trade  were  very  high — aver- 
aging, for  Cuban  ports,  $26  per  ton — and  vessel  owners  reaped  a 
rich  harvest. 

The  total  production  of  corn  in  Venezuela  is  calculated  at  22,000,000 
hectoliters,  or  62,400,000  bushels,  and  the  domestic  consumption  of 
the  country  at  6,000,000  hectoliters,  or  17,000,000  bushels,  leaving  an 
export  surplus  of  approximately  16,000,000  hectoliters,  or  45,400,000 
bushels,  based  on  the  figures  for  1918.  The  Valencia-Barcjuisimeto- 
La  Vela*  de  Coro  districts  produced  about  21  per  cent  of  this  total  of 
corn.  La  Vela  de  Coro  exported  1,092,944  pounds  of  beans  in  1917, 
valued  at  $25,603,  going  principally  to  the  West  Indian  islands  and 
to  France,  though  the  United  Stated  received  a  small  amount.  Dur- 
ing the  same  year  this  port  exported  2,518,934  pounds  of  corn,  valued 
at  $38,689. 

METHODS  OF  CULTIVATION. 

Com  and  beans  are  planted  between  the  rows  of  cotton  in  the 
Valencia  district.  Throughout  Venezuela  as  a  whole  they  are  usually 
planted  at  the  beginning  of  the  rainy  season  (June  in  the  Valencia 
and  llanos  regions,  and  November  west  of  Puerto  Cabello,  along  the 
lowlands  of  the  coast)  without  even  the  use  of  plows,  except  in  the 
small,  rich  river  valleys  near  the  largest  towns.  Draft  animals  are 
scarce,  oxen  being  used  because  the  native  mules  are  too  small  and  light 
for  plow  work.  American  and  English  plows  are  used.  Areas  that  are 
not  plowed  are  simply  cleared  of  brush  with  the  machete  and  the 


PUERTO  CABELLO  AND  VAL.ENCIA  COMMERCIAL  DISTRICT.      251 


seed  planted  by  making  a  hole  with  a  sharp  stick.  Cultivation  is  by 
means  of  the  same  machete  used  for  chopping  out  the  larger  weeds 
from  time  to  time  during  the  growing  season  of  the  crop.  On  the 
larger  "  haciendas  "  in  the  region  of  Maracay  and  Valencia,  and  also 
more  recently  in  that  of  Barquisimeto,  gas  tractors,  gang  plows,  har- 
rows, and  other  modern  agricultural  implements  are  appearing  in 
increasing  numbers,  and  the  same  is  true  of  shelling  and  grain-clean- 
ing machinery. 

In  the  neighborhood  of  Valencia  and  throughout  the  Valencia  dis- 
trict fields  are  well  fenced  and  cared  for,  but  outside  of  this  favored 
region  little  care  is  taken  and  agricultural  areas  present  a  ragged, 
unkempt,  and  careless  appearance.  Barbed  wire  is  used  universally 
for  fencing  all  over  Venezuela. 


COTTON. 


This  district  is  the  largest  cotton  producer  of  Venezuela.  Cotton 
has  been  grown  in  this  region  since  a  period  before  the  American 
Civil  War,  and  it  was  exported  to  Europe  before  the  establishment 
of  the  first  cotton  mill  in  the  country  in  1858.  In  1908  a  total  of 
396,885  pounds  was  exported,  going  to  France,  Germany,  and  the 
Netherlands.  Crops  in  more  recent  years  have  become  too  small 
for  the  requirements  of  the  domestic  mills,  of  which  there  are  now 
five  in  the  country,  exclusive  of  the  new  factory  at  Cumana — ^two  of 
the  largest  being  located  in  Valencia.  These  mills  operate  about 
19,000  spindles  and  600  looms  and  consume  approximately  6,250  bales 
of  cotton  annually,  making  grey  goods,  coarse,  heavy-wearing  cotton 
cloth  for  clothing,  plain  sheeting,  and  hosiery.  In  order  to  assist 
the  cotton-manufacturing  industry,  the  Government  removed  the  25 
per  cent  surtax  on  imported  cotton,  4he  import  tax  now  being  only 
3.43  cents  per  pound. 

As  in  the  case  of  all  other  crops  in  Venezuela,  it  is  not  possible  to 
obtain  accurate  data  on  the  actual  acreage  under  cultivation  on  ac- 
count of  the  reluctance  of  owners  or  planters  to  make  a  statement 
of  their  holdings  and  operations. 

The  domestic  mills  were  very  prosperous  during  the  war,  prices 
obtained  for  domestic  production  of  cotton  goods  being  based  on 
the  price  of  similar  imported  goods ;  and  the  production  of  raw  cotton 
was  also  stimulated,  the  largest  acreage  being  planted  in  1920.  In 
the  States  of  Aragua  and  Carabobo,  as  well  as  some  parts  of  Yaracuy 
and  Cojedes,  locusts  caused  great  damage  to  crops  during  the  perid 
from  1912  to  1915.  The  Government  has  aided  in  cotton  production 
by  the  distribution  of  seed  and  by  experimental  work.  The  States 
named  above  produce  54  per  cent  of  the  cotton  produced  in  the 
country,  as  follows: 

[Kilo=2.2046  pounds.] 


Districts. 


States  of  Aragua  and  Carabobo. . . 
States  of  Lara  and  Portuguesa. . . 
State  o.  Zulia  (Maracaibo  region). 
Eastern  States 

Total 


Percentage. 


54 
14 
18 
14 


Total  in 
kilos. 


1,077,300 
279,300 
350,100 
279,300 

1,995,000 


252     VENEZUELA:  A  COMMERCIAL  AND  INDUSTKIAL  HANDBOOK. 

In  1919  a  survey  of  the  cotton  situation  showed  an  approximate 
total  yield  of  7,000,000  kilos  (7,000  metric  tons)  in  the  seed.  Two 
and  tnree-quarters  quintals  (1  quintal=100  ^ilos)  are  required  to 
produce  100  pounds  of  clean  fiber.  This  represents  an  average  of  28.5 
per  cent  of  the  cotton  in  the  seed,  making  the  annual  production  of 
clean  cotton  equal  to  1,995,000  kilos^r  1,995  metric  tons.  The  annual 
production  of  the  Valencia  and  JPortuguesa  districts  has  been  as 
follows:  Valencia  district — 1908,  254  metric  tons;  1912,  3,002  tons; 
1915,  1,130  tons;  1916,  1,223  tons;  1917,  1,931  tons.  Portuguesa  dis- 
trict— 1916,  605  metric  tons;  1917,  1,944  tons.  These  figures  do  not 
represent  the  entire  production ;  they  are  for  seed  cotton.  The  climate 
and  the  soil  are  better  suited  to  the  growing  of  the  upland  varieties 
than  the  Sea  Island  or  E^ptian.  The  "Venezuelan  staple  is  long 
and  silky,  being  about  1^  mches  in  length.  The  seed  is  sown  at  the 
same  time  as  that  of  com  and  beans,  usually  during  the  month  of 
June  or  July,  and  the  cotton  is  picked  at  the  end  of  November  or  the 
beginning  of  December,  according  to  the  season  and  rainfall.  The 
corn  or  beans  planted  between  the  rows  pay  for  the  expense  of  culti- 
vation and  harvesting,  or  at  least  of  seeding  and  cultivation. 

Prices  paid  for  domestic  cotton  fluctuated  during  the  past  10  years 
from  70  to  150  bolivars  ($13.50  to  $29)  per  100  pounds.  The  high 
figure  of  150  bolivars  was  paid  during  the  last  half  of  1919,  because  of 
the  high  prices  for  cotton  and  cotton  goods  in  the  United  States.  The 
total  production  of  1,995,000  kilos  in  1919  sold  for  an  average  price 
of  3.25  bolivars  per  kilo,  or  $0,285  per  pound,  the  total  value  Being 
6,483,750  bolivars  ($1,296,750),  making  this  product  next  in  impor- 
tance to  coffee  and  cacao  for  Venezuela.  During  the  latter  part  of 
1919  the  drop  in  prices  of  imported  cotton  goods  adversely  affected 
the  domestic  mills ;  prices  were  reduced  by  25  per  cent  at  wholesale, 
and  further  reductions  were  predicted  for  the  late  winter  and  spring 
of  1921.  The  cotton  crop  ot  the  Valencia,  Aragua,  and  Portuguesa 
districts  was  the  largest  in  the  history  of  the  country  and  more  than 
enough  to  supi)ly  the  demands  of  the  domestic  mills,  judging  from  all 
reports.  The  mills  were  no  longer  being  operated  on  full  time,  and 
the  prices  being  offered  for  raw  cotton  were  extremely  low,  being 
(in  December,  1920)  only  6  bolivars  per  "  arroba"  of  25  pounds,  or 
24  bolivars  per  100  pounds  of  clean  cotton  fiber.  This  price  is  equal 
to  4.6  cents  per  pound.  The  Government  took  action  in  view  of  the 
plight  of  the  planters  and  unoflicially  offered  to  pay  8  bolivars  per 
"  arroba  "  for  the  cotton.  This  price  was  later  accepted  by  the  mills 
of  Valencia,  and  the  planters  admitted  that  they  would  not  lose  on 
their  1920  crop. 

RICE. 

Before  the  war  all  the  rice  consumed  in  Venezuela  was  imported  from 
the  United  States,  Germany,  and  other  countries.  Imports  of  rice 
in  1913  amounted  to  $288,607,  and  in  1914  to  $396,906.  In  1917  the 
country  took  rice  valued  at  $641,038,  of  which  the  United  States  fur- 
nished $635,881.  In  1918  the  imported  amount  dropped  to  $489,508^ 
coming  almost  entirely  from  the  United  States,  the  actual  volume 
being  less  than  half  of  that  in  previous  years,  while  the  price  had 
increased  by  about  100  per  cent. 

Since  1913  the  consumption  of  rice  in  Venezuela  has  about  doubled 
and  the  article  has  become  an  important  food  staple  with  the  people 


PUEETO  CABEIXO  AND  VALENCIA  COMMEBCIAL  DISTRICT.      253 

of  the  country*  Puerto  Cabello  impjorted,  in  the  high  year  of  1917, 
$108^17  worth  of  rice,  the  amount  being  distributed  to  Valencia,  Bar- 
quisimeto,  etc. 

The  cultivation  of  rice  has  increased  in  the  Valencia  region,  prin- 
cipally to  the  southwest  in  the  neighborhood  of  Tinaquillo,  Tinaco, 
and  l&an  Carlos  and  even  farther  south — the  overflow  lanas  of  the 
ed^  of  the  llanos  being  used.  There  are  enormous  areas  of  good  land 
suitable  for  rice  growing  in  Venezuela  and  the  industry  promises  to 
become  an  important  one,  as  Venezuelan  rice  now  supphes  about  one- 
half  of  the  former  total  demand  and  the  grain  is  ox  better  quality 
than  the  "  Siam  Usual "  and  "  Saigon "  imported.  By  the  end  of 
1920,  after  the  sudden  drop  in  prices  of  rice  in  the  United  States, 
native  grain  was  competing  on  the  market  in  Valencia,  Puerto  Ca- 
bello, and  Caracas  with  the  imported,  selling  around  9  cents  per 
pound  at  wholesale  at  seaport  or  capital  city.  There  are  no  means  of 
accurately  estimating  the  production  of  rice.  Methods  of  cultivation 
and  cleaning  are  very  crude  and  primitive. 

TOBACCO. 

Tobacco  was  introduced  by  the  Spaniards  into  Venezuela  in  early 
colonial  times  and  was  most  successfully  cultivated  on  a  commercial 
scale  near  the  towns  of  Capadare  (west  of  Tucacas) .  Yaritagua  (near 
Barquisimeto),  and  in  the  region  of  Barinas,  though  tobacco  produc- 
tion from  this  last-named  place  has  decreased  in  modern  times  on 
account  of  transportation  difficulties — at  the  same  time  increasing  in 
the  eastern  States  of  the  country^  notably  around  Maturin  in  the  State 
of  Monagas  and  near  Cumana,  m  Sucre,  where  the  fields  are  nearer 
to  the  coast. 

The  plant  thrives  in  the  deep,  humid  soils  of  the  small  valleys  of 
the  interior,  and  in  modern  times  its  cultivation  has  been  very  suc- 
cessful in  the  neighborhood  of  Quebrada  Seca  in  the  State  of  Aragua 
and  around  Guacara,  near  Valencia.  There  are  several  other  to- 
bacco-producing districts  of  less  importance  in  the  Valencia  and 
Barquisimeto  regions. 

"  Uapadare,"  as  the  grade  is  called  that  comes  from  the  district 
of  the  same  name,  is  of  a  better  grade  than  the  tobacco  from  Maturin 
and  will  hold  its  strength  for  three  years  or  more  after  packing. 
The  local  grade  called  "  Mirimire "  is  of  still  better  quality,  con- 
sisting of  fine  leaves  of  light  color,  and  is  known  by  foreign  buyers 
as  "  Cover  "  and  "  Inner  Cover."  The  "  Quebrada  Seca  "  grades  are 
used  principally  in  making  the  cheaper  grades  of  domestic  cigars  in 
Venezuela. 

The  total  production  of  tobacco  in  Venezuela  is  estimated  at 
around  4,000  tons  annually,  of  which  the  commercial  district  now 
under  discussion  furnishes  a  total  of  about  1,350  tons — 1,000  tons 
coming  from  Capadare  alone,  of  which  700  tons  are  of  first  quality. 
The  average  prices  from  1914  to  1920  for  these  grades  have  been: 
"  Capadare  "—First  class,  2.60  bolivars  ($0,50  per  kilo  (1  kilo= 
2.2046  pounds) ;  second  class,  1.09  bolivars  ($0.21)  per  kilo.  "Que- 
brada Seca" — First  class,  1.75  bolivars  ($0.34)  per  kilo;  second 
class,  1.09  bolivars  ($0.21)  per  kilo. 

The  total  value  of  tobacco  exported  from  Venezuela  in  1917 
amounted  to  $46,741,  and  in  1918  exports  reached  the  high  figure 


254     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

of  nearly  $800,000,  of  which  the  Valencia  and  Capadare  districts 
furnished  about  26  per  cent. 

During  the  year  1919  Puerto  Cabello  shipped  18,884  kilos  of  leaf 
tobacco  to  the  Netherlands. 

COFFEE. 

Taking  the  figure  of  1,000,000  sacks  as  the  average  coffee  yield  of 
the  country  for  export^  one  finds  that  the  district  ranks  second  in 
the  production  of  this  important  article  of  export,  its  average  total 
per  annum  being  300,000  sacks — ^200  less  than  the  Maracaibo  total 
and  100,000  more  than  that  for  the  Caracas  district. 

The  regions  of  production  are  found  in  the  higher  levels  of  the 
mountain  ranges  and  hills,  as  follows :  Along  the  coast  range  from 
Ocumare  de  la  Costa  and  Puerto  Cabello  as  far  west  as  the  mouth 
of  the  Tocuyo  River;  in  the  Las  Trincheras  district  between  Valencia 
and  the  port;  between  San  Felipe  and  Barquisimeto  on  both  sides 
of  the  valley  of  the  Yaracuy  River;  in  the  hills  around  Montalban 
and  Nirgua;  in  the  regions  of  Tocuyo,  Carora,  and  San  Luis,  the 
last-named  place  lying  to  the  north  in  the  Coast  Range.  Along  the 
line  of  the  Bolivar  Railway  there  are  also  several  coffee  areas,  prin- 
cipally in  the  neighborhooa  of  the  Aroa  and  Duaca.  The  regions  of 
coffee  production  are  scattered  and  usually  suffer  from  the  lack  .of 
transportation  facilities. 

In  1916  Puerto  Cabello  exported  a  total  of  28.181,137  pounds  of 
coffee,  valued  at  $2,936,011,  or  which  the  United  States  received  only 
3,137,473  pounds,  valued  at  $351,261.  In  1917,  27,066,930  pouncis 
were  exported,  of  which  the  United  States  received  6,105,371  pounds^ 
valued  at  $463,656.  In  1918,  22,020,000  pounds  were  exported,  of 
which  the  United  States  received  6,776,300  pounds,  valued  at  $646,- 
897.  Coffee  prices  during  the  first  half  of  1918  were  low,  because 
of  the  level  of  New  York  quotations  and  the  difficulties  of  shipping 
to  Europe.  Prior  to  the  armistice  in  November,  Puerto  Cabello 
grades  were  quoted  at  an  average  price  of  6.6  cents  per  pound  and 
then  gradually,  with  many  local  fluctuations,  increased  to  the  high 
figure  of  26  cents  per  pound.  To  show  the  destination  of  Puerto 
Cabello  shipments  (which  include  those  of  the  Barquisimeto  region) 
during  the  second  half  of  1918,  the  following  table  is  given: 


Countries  of  destination. 


Curacao 

Italy 

Spain 

Tmited  States 
Martinique... 

Total... 


Bags. 


8,454 

6,180 

41,640 

27,705 

100 


84,088 


Founds. 


1,134,000 

799,000 

6,516,000 

3,704,500 

13,300 


12,166,800 


Values. 


$116,614 

84,650 

602,040 

406,027 

1,220 


1,212,551 


During  the  first  half  of  1919  shipments  of  coffee  were  very  heavy, 
consisting  of  the  1918-19  crop  and  quantities  stored  in  the  country 
for  better  prices  during  the  war  period.  In  the  sinffle  month  of 
January,  1919,  46,240  bags  were  shipped,  of  which  the  United  States 
took  37,130  bags.   The  bulk  of  the  1919  shipments  went  to  the  United 


PUERTO  CABELLO  AND  VALENCIA  COMMERCIAL  DISTRICT.      255 


States  and  to  France.    The  movement  for  the  entire  calendar  year 
1919  i&  shown  in  the  following  table : 


[Kilo=2.2046  pounds.] 


Coontries  of  destination. 


Cuba 

Curaoeo 

France 

Great  Britain 

Italy , 

Ne^erlands 

Spain 

United  States 

other  countries 

Total 


Kilos. 


52,931 

1,146,331 

11,379»133 

961,681 

81,300 

2,374,060 

4,430,416 

6,728^024 

0<483 


27,218,349 


Value. 


Bdivars. 


87,688 

1,867,224 

24,196,495 

1,804,614 

148»500 

6,860,125 

9,804,400 

13,318,047 

133,324 


57,720^417 


Dollars. 


16,924 

360,374 

4^660,924 

348,291 

28,660 

1,324,004 

1,796,740 

2,570,383 

25,732 


11,140,0U 


In  1919  the  port  of  La  Vela  de  Coro  exported  61,464  kilos  of  coffee, 
to  the  value  of  69,144  bolivars  ($13,345)  ;  it  went  principally  to 
Curasao  and  Trinidad  for  transshipment. 

The  crop  in  1920,  ready  for  first  picking  in  December,  was  esti- 
mated to  be  26  per  cent  less  than  normal,  because  the  plantations  on 
the  lower  levels  of  the  ranges  had  not  received  sufficient  rain  during 
the  season  to  mature  the  crop  properly.  Planters  were  also  experi- 
encing great  difficulty  in  collecting  sufficient  labor  to  harvest  the 
crop,  by  reason  of  the  employment  of  most  of  the  available  men  in  the 
Government  road-building  program. 

Prices  received  during  1919,  which  averaged  well  above  20  cents 
per  pound  for  Venezuelan  grades  in  New  York,  brought  about  the 
greatest  influx  of  wealth  ever  experienced  by  the  country  and  in- 
duced an  era  of  prosperity  and  development  which  lasted  until  the 
latter  months  of  1920,  when  prices  declined  to  about  pre-war  levels, 
Puerto  Cabello  grades  being  quoted  in  New  York  in  December  at 
9i  to  12  cents  per  pound,  or  less  than  half  the  averages  obtained 
during  1919. 

CACAO. 

The  total  production  of  cacao  in  Venezuela  is  about  10,000  tons,  of 
which  the  Puerto  Cabello  district  produces  approximately  one-third. 
The  areas  of  production  are  about  the  same  as  those  for  coffee,  but 
the  cacao  is  on  the  lower  levels  of  th.e  mountains  and  hills,  the  average 
elevation  of  the  plantation  being  around  3,000  feet.  In  1917  the 
crop  was  26  per  cent  below  normal  on  account  of  late  rains,  and  25 
to  30  per  cent  of  the  previous  crop  remained  unsold  because  of  the 
lack  of  ocean  tonnage  during  the  war  years  and  the  low  prices  pre- 
vailing. Official  figures  gave  the  valuation  at  11.2  cents  per  pound 
for  the  first  grade  and  8.4  cents  for  the  second  grade.  The  better 
grade  had  always  found  a  good  market  in  France,  but  that  market 
was  cut  off  during  the  war  to  a  very  great  extent. 

Exports  from  the  Puerto  Cabello  district  in  1917  amounted  to 
6,288,668  pounds,  valued  at  $863,768.  In  1918  the  exports  fell  off, 
amounting  to  only  4,470,000  pounds,  valued  at  $441,160,  of  which  the 


256     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK, 


United  States  received  3,745,258  pounds,  valued  at  $367,649.  Durixig 
the  year  1919  (the  most  recent  period  for  which  statistics  are  ayail- 
able)  Puerto  Cabello's  exports  of  cacao,  by  countries  of  destination, 
were  as  follows,  according  to  Venezuelan  Government  statistics : 


[Kllo=2.2046  pounds.] 


Countries  of  destination. 


Curacao 

Great  Britain.. 
Netherlands.... 
Spain , 

Imited  States.. 
Other  countries 

Total.... 


2,885,600 


Value. 


Kilos. 

Bolivars. 

Dollars. 

96,337 

765,436 

167,095 

676,486 

1,248,006 

42,241 

143,903 

. 2,004,020 

408,837 

1,208,287 

2,894)024 

118,090 

27,773 
388,776 

78,906 
233,199 
558,547 

22,791 

6,777,161 


1,307,992 


The  total  exports  of  cacao  from  all  Venezuela  during  the  year  1919 
amounted  to  19,833,945  kilos,  valued  at  39,086,569  bolivars  ($7,543,- 
708).  This  total  included  part  of  the  old  June- July,  1917,  crop  and 
the  December,  1918,  crop.  None  of  the  old  crops  had  remained  on 
hand  in  1919  in  the  Puerto  Cabello  district. 

It  was  hoped  by  growers  that  the  drop  in  the  price  of  sugar  in  1920 
would  bring  about  an  increased  demand  for  cacao  of  the  better 
grades  in  the  countries  manufacturing  chocolate  on  a  large  scale. 

The  tendency  for  prices  to  decline  still  further  and  the  influx  of 
labor  to  the  cities  of  the  country,  away  from  the  land,  preclude  any 
great  development  of  the  cacao  industry  in  Venezuela.  Cacao 
reouires  more  labor  and  care  in  the  preparation  of  the  bean  than 
coffee,  and,  also,  it  can  not  be  stored  for  any  length  of  time  in  a  hot, 
damp  climate  without  risk  of  fermentation.  Landowners  with  capi- 
tal for  development  generally  prefer  coffee  planting.  The  cacao 
trees  are  subject  to  the  damage  inflicted  by  the  gray  moth,  and  such 
is  not  the  case  with  coffee  plants. 

OTHER  AGRICULTURAL  PRODUCTS. 

During  the  war  there  was  considerable  interest  in  the  production 
of  the  castor-oil  bean  for  export,  and  349  metric  tons,  valued  at 
$250,000,  were  exported  to  the  United  States  in  1918.  This  plant 
does  extraordinarily  well  in  Venezuela,  especially  in  the  Valencia 
region,  but  the  low  prices  now  prevailing  have  caused  this  new 
branch  of  agriculture  to  be  discontmued  for  the  time  being. 

It  is  thought  that  greater  attention  to  coconut  planting  in  certain 
favored  areas  alon^  the  coast  would  produce  good  results.  As  it  is 
to-day,  the  production  does  not  meet  the  local  demand  for  the  raw 
nuts  nor  that  of  the  trade  of  the  Dutch  islands  of  Curasao,  Bonaire, 
and  Aruba.  Little  labor  is  required,  but  in  spite  of  this  fact  (so 
necessary  to  be  considered  in  Venezuela),  no  attempt  has  been  made 
in  the  Puerto  Cabello  region  to  develop  a  coconut  plantation  on  a 
large  scale,  the  industry  being  limited  to  a  few  villages  along  the 
coast.  Coconut  production  is  better  developed  in  the  region  of 
Cumana,  far  to  the  east. 


PXJEBTO  GABELLO  AND  VALENCIA  GOMMERGIAIi  DISTRICT.      257 

Citrus  fruits  do  extremely  well  in  the  Valencia  region,  which 
grows  famous  sweet  oranges,  but  with  the  exception  of  a  few  small 
orchards  developed  by  wealthy  "  hacienda "  owners  as  a  sort  of 
hobby,  there  has  been  no  commercial  development  for  export,  and  the 
supply  does  not  begin  to  take  care  of  even  the  Caracas  market. 

Nearly  all  vegetables  are  grown,  including  very  fine  potatoes. 

FOREST  PRODUCTS. 

With  the  exception  of  the  divi-divi  produced  by  the  western  part 
of  the  district,  no  forest  products  are  produced  or  exported  throuffh 
the  ports  of  Puerto  Cabello  or  La  Vela  de  Coro.  In  the  far  south- 
western region  of  the  district,  along  the  upper  waters  of  the  Apure 
River,  rubber  is  collected,  but  not  on  a  large  scale,  and  the  trade  is 
with  Ciudad  Bolivar  during  the  season  of  high  water  in  the  Orinoco 
and  Apure  Rivers. 

Lumbering  is  negligible,  being  confined  to  quantities  sufficient  to 
supply  the  local  demand  and  that  of  Valencia  and  Caracas.  There 
are  not  enough  accessible  forest  areas  to  permit  the  exportation  of 
timber  products  on  a  large  scale. 

Many  tanning  materials  are  found  throughout  Venezuela,  but  the 
principal  one  is  the  divi-divi  {CcBaaipinia  coriaria  Willd,).  The 
tree  producing  the  pods  that  contain  ihe  tannin  grows  to  a  height 
of  20  to  30  feet  and  is  indigenous  to  Venezuela,  being  found  in  the 
arid  lands  west  of  Puerto  Cabello  along  the  elevated  plateau  back 
from  the  sea. 

The  pods  are  about  3  inches  long  by  f  inch  broad  and  very  thin 
and  smooth,  containing  about  41  per  cent  tannin  on  an  average 
analysis.  The  tannin  is  most  abundant  in  the  tissue  of  the  pod, 
under  the  epidermis.  There  is  little  in  the  seeds.  Formerly,  the 
export  trade  was  principally  with  Hamburg,  the  United  States 
buying  from  Germany  at  wholesale  to  a  great  extent. 

In  1917  Venezuela  as  a  whole  shipped  to  the  United  States  (the 
country's  principal  customer  for  this  product  after  the  war  closed 
th^  German  market)  1,064,130  pounds  of  divi-divi,  valued  at  $30,489,^ 
while  in  1918  the  amount  was  1,914,486  pounds,  valued  at  $54,715. 
During  1917  the  port  of  La  Vela  de  Coro  exported  5,022,154  pounds 
of  divi-divi,  valued  at  $33,411,  and  in  1918  a  total  of  3,122,589  pounds, 
valued  at  $22,570,  most  of  which  went  to  Curagao  for  transshipment 
to  the  United  States.  Coro  is  the  center  of  the  trade  in  this  product, 
which  is  gathered  in  the  surrounding  region. 

MINING  AND  PETROLEUM. 

COPPER. 

The  only  important  mining  operations  in  the  entire  territory 
described  in  this  chapter  are  those  of  the  South  American  Copper 
Syndicate  (Ltd.)  at  Aroa,  in  the  State  of  Yaracuy,  about  halfway 
between  Barquisimeto  and  the  port  of  Tucacas,  on  the  Bolivar  Bail- 
way,  which  was  originally  built  to  serve  these  rich  and  extensive 

■  '  ■  ....  I  ■  ■■     .       . 

^Tbese  valaes,  for  declared  exports  to  the  United  States,  are  those  of  the  American 
consulates.  The  values  In  the  next  sentence,  for  exports  from  La  Vela  to  all  countriei^ 
are  those  of  the  Venezuelan  customs  authorities. 

7d747*— 22 ^18 


258     •VESTEZUBIA:  A  COMMERCIAL  AND  INDUSTRIAL.  HANDBOOK. 

deposits  of  copper  ore,  first  worked  by  the  Spaniards  in  colonial 
times.  The  original  British  company  purchased  them  from  Sim6n 
Bolivar,  the  Liberator,  in  1812  for  £40,000,  Bolivar  using  the  money 
to  assist  in  financing  his  wars  of  independence  against  Spain.  Be- 
tween 1862  and  1880,  after  several  prosperous  periods,  the  mines 
reached  their  maximum  output,  during  which  period  the  railway  was 
constructed.  They  were  then  idle  for  a  period  of  about  15  years, 
after  which  they  were  reopened  by  the  company  now  operating  them. 
The  company  has  experienced  unusual  prosperity  during  the  war, 
shipping  the  entire  product  to  the  refineries  of  the  United  States, 
where  all  supplies  and  machinery  are  purchased. 

In  1917  the  output  of  copper  matte  and  shipping  ore  amounted  to 
41,271  tons,  the  ore  containing  about  7  per  cent  copper. 

The  mines  have  been  closed  since  the  armistice,  but  the  manage- 
ment is  keeping  the  old  workings  under  repair  and  accessible  and  is 
developing  new  ground  in  the  mineralized  area.  A  large  radial 
drill  outfit  has  also  been  ordered  from  the  United  States,  with  ex- 
perts for  its  operation,  and  prospecting  for  new  ore  bodies  will  be 
done  on  a  large  scale.  The  old  water-jacket  furnace  is  antiquated 
and  is  to  be  remodeled  and  renewed  on  a  larger  scale.  It  is  thought 
by  experts  that  this  property  is  one  of  the  best  copper  deposits  in 
South  America. 

The  mines  are  situated  at  an  elevation  of  1,165  feet  above  sea  level, 
the  rail  distance  from  Tucacas  being  88i  kilometers  (1  kilome- 
ter=0.62  mile).  The  original  discovery  was  made  in  1605.  The 
deposits  are  in  the  valley  of  the  Rio  Aroa,  a  small  stream  forming 

?art  of  the  dividing  line  between  the  mountain  ranges  of  Merida  and 
'rujillo,  of  which  the  watercourses  of  the  Rivers  Yaracuy  and 
Cojedes  mark  the  great  divide.  The  country  rock  is  in  general  struc- 
ture slate,  in  many  places  heavily  impregnated  with  lime,  there  being 
mica  and  other  accessory  substances.  The  deposits  of  cupriferous 
ore  are  not  encountered  in  vein  formation  but  are  really  large  ir- 
regular deposits  of,  as  yet,  unknown  extensions.  The  richest  ore 
found  is  that  of  copper  pyrites,  the  ore  being  a  combination  of  copper 
and  iron  sulphides  called  calcopyrites.  An  average  assay  made  in 
1891  gave  the  following  result : 

Per  cent. 

Ck)pper 9.  5 

Sulphur 32.0 

Iron 35. 0 

Smca 10. 0 

Aluminia 5. 0 

Lime 4. 0 

Other  substances 4. 5 

100.0 

Other  assays  show  the  iron  content  to  be  as  low  as  29  per  cent, 
that  of  metallic  copper  as  high  as  12  per  cent,  and  sulphur  as  high  as 
40  per  cent.  Reduction  has  been  in  water-jacket  furnaces  producing 
copper  regulus  of  41  per  cent  copper,  29  per  cent  sulphur,  and  22 
per  cent  iron.  In  the  mine  workings  many  of  the  different  combina- 
tions of  copper  ores  are  found  also,  such  as  the  subsulphide  of  copper, 
copper  su^nate,  etc.  About  15  per  cent  of  the  ore  is  selected  ana 
shipped  directly  to  smelters — formerly  going  to  Swansea,  but  lat- 
terly to  the  United  State&    The  furnace  capacity  is  200  tons  of 


PUERTO  CABELLO  AND  VALENCIA  COMMERCIAI.  DISTRICT,      259 

ore  daily.  The  company  has  constructed  ore  bins  for  storing  and 
loading  into  lic^hters  at  Tucacas  for  ocean  transport  by  steamers. 

There  is  another  copper  mine  in  the  same  neighborhood,  near 
Aroa.  The  property  is  called  "  La  Cumaragua,"  the  company  being 
capitalized  at  1,500,000  bolivars  ($289,500j.  A  short  branch  line 
has  been  constructed  to  connect  the  mine  with  the  Bolivar  Railway, 
and  recent  shipments  of  copper  carbonate  ore  show  from  9  to  29 
per  cent  copper,  22  to  31  per  cent  iron,  and  10  to  38  per  cent  silica. 
In  this  ore  body  there  occur  carbonates,  oxides,  and  sulphides  of 
copper,  and  the  cost  of  1  ton  of  ore  from  the  mines,  f .  o.  b.  dock, 
New  York,  is  estimated  at  66.60  bolivars  ($12.85).  The  company 
has  installed  a  40-kilowatt  electric  generating  plant  operated  by  a 
Diesel  oil  motor,  machine  drills,  and  a  Davis-Calix  deep  rock  drill 
for  prospecting. 

Copper  deposits  have  been  known  in  this  district  since  early 
times.  The  deposits  of  Nirgua  are  said  to  have  run  38  per  cent  pure 
copper.  Old  copper  mines  were  worked  by  the  colonial  Spaniards 
near  Los  Teques  near  Caracas,  and  at  Chacao,  south  of  Villa  Cura 
in  the  direction  of  Pao,  there  are  recent  discoveries,  said  to  be  rich. 

GOLD. 

« 

Gold  was  formerly  mined  on  a  small  scale  in  the  neighborhood  of 
Montalban,  just  west  of  Valencia,  according  to  colonial  tradition, 
and  rich  specimens  have  recently  been  encountered  as  float,  though 
their  actual  source  is  not  known  to-day.  The  average  Venezuelan 
workman  is  not  addicted  to  prospecting,  as  his  Mexican  cousin  is, 
and  Venezuelan  territory  has  not  been  so  thoroughly  "  surface  pros- 
pected "  as  that  of  Mexico,  where  the  ground  has  been  well  covered 
for  years. 

PETROLEUM. 

Since  1912  the  territory  west  of  Puerto  Cabello  as  far  as  Lake 
Maracaibo  has  been  included  in  concessions  given  by  the  Government 
for  oil  exploration  from  time  to  time.  Recently  new  contracts  under 
the  new  petroleum  legislation  and  former  concessions  have  covered, 
all  along  the  coast,  the  land  held  as  public  land  and  coming  under 
the  concessions  and  laws.  The  territory  is  Joeing  explored  for  favor- 
able drilling  locations  by  British  and  American  oil  companies,  and 
there  is  a  prospect  of  large  development  of  this  industry  during  the 
next  two  years.  Conditions  are  difficult.  Transportation  has  to  be 
provided,  roads  constructed,  camps  established,  etc.  Labor  is  scarce, 
and  many  varieties  of  topographical  and  climatic  conditions  have  to 
be  met,  from  salt  marshes  along  the  coast  to  heavily  timbered  hilly 
areas  farther  inland,  as  well  as  long  stretches  of  semiarid  mesas  where 
water  is  scarce.     (See  p.  92  for  names  of  companies  and  details.) 

COAL. 

The  only  important  mining  activity  in  the  district,  other  than  the 
Aroa  copper  mines,  is  that  or  the  coal  mines  near  Coro,  in  the  State 
of  Falcon,  owned  and  operated  by  the  Government.  During  1917 
these  mines  produced  4,716  tons  of  the  20,164  tons  of  coal  produced 
in  the  whole  country.  In  1916, 9,100  tons  of  coal  were  imported  from 
abroad  at  Puerto  Cabello  for  the  railway  and  coastwise  shipping  use. 


260     VENEZUELA !  A  COMMEBCIAI^  AND  INDUSTRIAL  HANDBOOK. 

The  most  simple  methods  were  being  used  in  mining,  and  the 
mine  product  was  hauled  to  the  Coro  and  La  Vela  Railway  in  small 
two-wheeled  carts  for  a  distance  of  several  miles.  The  maximum 
monthly  production  was  645  tons  in  September,  1917.  There  were 
no  storage  facilities  or  loading  arrangements  either  in  Coro  or  at  the 
port  of  La  Vela,  and  sailing  lighters  were  used  for  loading  the  coal 
on  vessels  lying  in  the  harbor.  The  price  of  this  coal  in  1917  was 
fixed  by  the  Government  at  $4.63  per  ton  to  all  Government  depart- 
ments using  it,  and  $7.72  per  ton  to  private  individuals  and  com- 
panies. At  the  beginning  of  1917  there  was  a  stock  of  4,358  tons  on 
hand,  which  was  reduced  to  60  tons  by  the  end  of  the  year.  Sales  of 
coal  from  La  Vela  increased  from  approximately  3,000  tons  in  1915 
to  9,000  in  1917.  On  account  of  the  cost  and  difficulty  in  securing 
ocean  transport  during  the  war,  there  was  an  increasing  demand  for 
native  coal  in  Venezuela,  and  the  port  of  Willemstad,  Curasao,  took 
increasing  amounts;  exports  in  1917  to  Curasao  from  La  Vela 
amounted  to  1,970  tons,  valued  at  $8,940.  Even  since  the  war,  with 
increasing  amounts  of  American  coal  being  received  at  Curasao  for 
coaling  vessels,  Coro  coal  is  still  being  imported  by  the  bunkering 
companies.  During  1919,  however,  the  shipments  of  coal  from  La 
Vela  to  Curasao  amounted  to  only  360  tons.  The  difficulty  at  La 
Vela  is  the  lack  of  quick  and  cheap  loading  facilities  for  the  dis- 
patch of  large  tonnage,  the  coal  at  present  being  handled  in  small 
schooners  entirely  by  hand  at  both  ends. 

The  coal  fields  of  the  State  of  Falcon,  which  begin  with  the  out- 
croppings  on  the  coast  at  Sabanas  Altas,  Cumarel]^,  Tamataima, 
Aguide,  Curamichate,  etc.,  strike  inland  and  cover  a  lar^e  area.  The 
best-known  deposits  are  those  of  Cumanichate  and  Aguide,  owned  by 
a  private  concern,  and  those  of  El  Isiro,  El  Semeruco,  El  Hatillito, 
Angoleta,  El  Saladillo,  and  Aloncico,  belonging  to  the  National  Gov- 
ernment. Coal  veins  have  also  been  discovered  in  many  other  parts 
of  this  State,  such  as  that  at  El  Montante  (considered  one  of  the 
best  outcroppings  but  too  far  in  the  interior  to  be  of  commercial 
value  at  present  J,  La  Negrita,  Cardon  Grande,  etc. ;  but  there  are  no 
data  to  indicate  the  thickness  or  quality  of  the  coal  of  these  deposists 
or  veins. 

Only  at  El  Isiro,  situated  11  kilometers  (1  kilometer=0.62  mile^ 
south  of  the  city  of  Coro,  has  this  coal  been  exploited  with  any 
degree  of  activity  and  with  modern  equipment.  Here  are  found 
three  veins  of  coal,  running  approximately  east  and  west  in  gen- 
eral direction,  inclined  from  the  north  to  south  with  a  dip  of  19  to  36 
degrees.  Farther  south  lie  the  outcroppings  called  La  Negrita, 
Llano  Colorado,  Cardon  Grande,  and  El  Montante.  These  latter 
showings  of  coal  have  the  peculiar  feature  of  being  inclined  in  the 
opposite  direction  from  those  at  El  Isiro,  if  one  may  judge  from 
surface  indications — leading  to  the  belief  that  all  are  connected  and 
lead  to  a  so-called  "  coal  basin  "  in  the  center. 

The  veins  that  are  being  worked  have  the  following  thickness :  El 
Isiro,  0.50  to  0.55  meter  (1  meter=3.28  feet) ;  El  iStillito,  0.50  to 
0.55  meter;  angoleta,  0.40  to  0.50  meter;  El  Semeruco,  0.40  meter; 
El  Saladillo,  0.50  to  0.60  meter;  Alconico,  0.50  meter.  The  width 
of  these  veins  is  more  or  less  uniform,  but  they  run  less  in  width  than 
the  Government  properties  of  Barcelona  (Naricual  fields).    It  is  said 


Special  Agents  Seri 


me^^ 


NITED    STATES   CONSULATE,   PUERTO    CABELLO, 


Special  Agents  Series  No.  SI2. 


MiBV 


PUBBTO  CABEIX.0  AKD  VAMJKOIA  COMMERCIAL  DISTRICT.      261 

that  the  vein  of  El  Montante  averages  about  1  meter  in  thickness 
and  that  of  Curamichate  0.80  meter.  El  Isiro  vein  has  produced  25 
tons  of  coal  daily  under  the  old  system  of  operation. 
*  The  Coro  coal  fields  produce  a  bituminous  coal,  very  black  and  hard, 
of  high  luster,  and  of  about  1.25  specific  weight,  on  an  average.  This 
coal  IS  very  different  from  that  of  Barcelona,  which  is  dull,  earthy, 
and  very  friable.  The  percentage  of  powdered  coal  is  only  20  per 
cent,  whereas  the  eastern  coal  runs  from  75  to  80  per  cent.  Analyses 
taken  from  time  to  time  have  shown  this  Coro  coal  to  run  as  follows : 

Per  cent. 

Moisture 1. 12  to    7. 00 

Volatile 35, 17  to  49. 00 

Fixed  carbon 47.  57  to  79. 75 

Ash X .  64  to    6.  80 

Sulphur .  15  to    8. 90 

Tests  made  on  the  coal  from  the  Curamichate  vein,  for  coking  and 
gas  production,  show  that  1  metric  ton  produces  255  cubic  meters  of 
gas  (9,000  cubic  feet)  and  530  kilos  of  coke.  (Cannel  coal  produces 
311  cubic  meters,  or  11,000  cubic  feet  of  gas  per  ton  and  530  kilos  of 
coke.)  The  average  calorific  value  is  stated  to  be  from  4,823  to  7,240. 
With  the  exception  of  samples  of  coal  brought  frojtn  the  Sabaneta 
vein  farther  inland,  the  Coro  coal  is  known  as  bituminous  lignite. 
The  Sabaneta  coal  is  termed  a  semianthracite. 

The  Government  has  worked  its  properties  since  1904,  extraction 
being  at  the  average  rate  of  34  tons  per  day  from  all  workings.  The 
cost  is  calculated  at  25  bolivars  ($4.82)  for  1  metric  ton  placed  on 
board  at  La  Vela.  The  present  workings  at  El  Isiro  are  24  kilometers 
from  the  sea,  and  it  is  thought  that  the  opening  of  the  Curamichate 
vein  nearer  to  the  sea  would  reduce  the  present  cost  to  as  low  as  20 
bolivars  ($3.86),  laid  down  at  Puerto  Cabello. 

It  is  thought  that  a  system  of  aerial  cableways  from  the  mines  to 
the  beach,  equipped  at  the  terminus  with  an  overhead  wire  loading 
gear,  would  be  the  cheapest  and  most  efficient  means  of  transportation 
here;  the  project  is  under  study  by  the  Government's  engineers,  and 
estimates  are  being  prepared.  The  mines  must  also  be  operated  on 
a  larger  scale  and  labor-saving  equipment  installed. 

MANUFACTURING  INDUSTRIES. 

The  Puerto  Cabello  and  Valencia  district  is  not  highly  developed  in- 
dustrially and  does  not  promise  to  become  so.  Among  the  principal 
industrial  establishments  may  be  mentioned  the  cotton  mills  at  Valen- 
cia (the  most  important  manufacturing  elements) ,  vegetable-oil  mills, 
tanneries,  sugar  mills,  soap  factories,  and  the  frozen-meat  plant  at 
Puerto  Cabello.  Agriculture  and  live-stock  raising  are  the  chief 
occupations  and  sources  of  wealth. 

FACTORIES  OF  PUERTO  CABELLO. 

Puerto  Cabello  has  three  soap  and  candle  factories  which  use  cot- 
tonseed oil  from  Valencia  and  ship  their  products  into  the  interior. 
These  go  principally  to  Valencia  and  Barquisimeto  for  distribution, 
but  there  is  also  some  coastwise  trade  in  the  products. 

There  is  one  small  tannery  making  rough  sole  leather  for  export 
to  the  West  Indies. 


262     VEIOIZUELA  :  a  commercial  and  INDUSTBIAIi  HANDBOOK. 

Coro  has  one  soap  factory  and  one  tannery. 

The  Venezuela  Meat  Products  Co.  (Ltd.),  taken  over  from  the 
original  British  company  by  Vesti  &  Co.  during  the  war,  had  a 
capacity  of  700  head  of  beef  cattle  during  1919,  frozen  beef  being  ex- 
ported to  England.  The  plant  is  shut  down  at  the  present  time  for 
remodeling  and  repairs  and  remained  idle  during  the  entire  year 
1920. 

FACTORIES  OF  BABQUISmETO. 

Barquisimeto,  the  capital  of  the  State  of  Lara,  has  one  soap  and 
candle  factory  and  one  tannery.  There  are  also  tne  electric  lighting 
plant  and  the  ice  factory,  both  of  limited  capacity.  There  are,  of 
course,  the  usual  local  industries  of  sack  making,  sandals,  hats,  etc 

FACTORIES  OF  VALENCIA. 

Aside  from  the  cotton  mills,  with  which  the  oil  mills  are  allied, 
Valencia  has  four  rather  large  soap  factories,  the  largest  being  that 
of  Frey  &  Co.,  which  also  owns  the  largest  in  Puerto  Cabello.  The 
Branger  interests  also  conduct  a  large  tannery,  making  sole  leather 
for  the  domestic^  trade  and  for  export,  principally  to  the  islands  of 
the  West  Indies.  *  There  is  one  hat  manufacturer  in  Valencia  turning 
out,  on  a  small  scale,  straw  and  felt  hats  for  the  domestic  trade. 

In  all  three  of  the  larger  cities — Valencia,  Barquisimeto,  and 
Puerto  Cabello — ^there  are  several  shoemakers  manufacturing  shoes 
for  the  local  trade.  Upper  leather  and  findings  are  imported  from 
the  United  States.  Very  good  shoes  are  made,  to  the  practical  exclu- 
sion of  the  foreign  manufactured  article  except  for  women's  slippers. 
About  15  per  cent  of  the  people  wear  shoes,  the  others  using  the  do- 
mestic "  alpargata,"  or  leather-soled  sandal.  Shoe  shops  are  small, 
containing  one  or  two  machines  and  from  two  to  six  operatives. 

The  first  cotton  mill  in  Venezuela  was  built  in  Caracas  in  1868  by 
a  Philadelphian,  but  the  venture  was  a  failure,  as  were  other  attempts 
to  establish  the  industry  until  Sr.  Salas  Perez  built  a  mill  in  Valencia 
about  30  years  ago.  He  built  another  in  Caracas  in  1911 — the  two 
being  now  united  under  the  name  of  the  "  Telares  de  Caracas  y  Valen- 
cia," with  a  combined  capital  of  4,040,000  bolivars  ($779,720),  divided 
into  shares  of  100  bolivars  ($19.30)  each,  now  quoted  on  the  Caracas 
market  at  0.95.  AH  machinery  is  of  English  make.  The  Valencia 
mill  has  5,000  spindles  and  150  looms  and  the  Caracas  mill  6,000 
spindles  and  100  looms.  Yarn-spinning  and  dyeing  plants  are  oper- 
ated in  connection  with  it.  A  knitting  plant  has  recently  been  in- 
stalled at  Caracas  by  this  company. 

Calicos,  denims,  drills,  grey  goods,  and  rough  sheetings  are  turned 
out  for  the  domestic  trade,  as  well  as  heavy  cotton  cloth  for  clothing. 
The  products  of  the  domestic  mills  are  very  well  liked  by  the  people 
of  the  country  on  account  of  their  wearing  qualities,  and  they  are 
well  suited  to  rough  tropical  wear. 

Prices  are  based  on  the  quotations  of  New  York  and  Manchester 
for  similar  weaves,  plus  freight,  commissions  of  export  houses,  im- 
port duties,  etc.  The  import  duty  on  foreign-made  cotton  prints  is 
1.25  bolivars  ($0,241)  per  kilo  (2.2046  pounds)  of  gross  weight,  the 
duty  varying  slightly  for  the  various  weaves  and  weights  of  the  cloth. 


.    PUERTO  OABBUiO  AND  VAIiENOIA  GOMMEBO^AL  DISTRICT.      263 

Stock  of  the  doinestic  mills  wiks' selling  at  50  per  cent  above  par 
during  the  war  years,  when  the  mills  reaUzed  enormous  profits, 
made  possible  by  the  increased  demand,  combined  with  the  shortage 
of  imported  stocks  and  the  high  prices  in  New  York  and  England. 
In  September,  1920,  however,  following  the  decline  in  the  coffee 
market  and  the  general  depression,  mills  reduced  their  wholesale 
prices  by  25  per  cent  and  their  stocks  dropped  to  just  below  par 
on  the  public  market  in  Caracas.  The  shares  of  all  mdustrial  com- 
panies decreased  in  value  in  proportion. 

The  largest  cotton  mill  is  that  of  the  Branger  interests,  called  the 
*'  Telares  de  Carabobo,".  located  in  Valencia.  A  large  cottonseed-oil 
mill  is  operated  in  connection  with  it,  as  well  as  a  modern  tannery 
turning  out  glac6  and  '^  patent "  leathers,  sole  leather,  etc.,  for  the 
domestic  trade.  The  six  brothers  of  the  Branger  family  own  large 
ranch  estates,  grow  their  own  cotton  for  thei?  mUls,  o^ate  gi^, 
etc.,  and  have  60  mule  carts  and  20  motor  trucks  organized  for  city 
and  country  transportation-doing  pubUc  hauling,  also,  as  a  sidi 
line. 

There  is  also  a  knitting  miU  in  connection  with  this  industry,  turn- 
ing  out  cheap  cotton  undershirts.  A  light-weight,  cheap  cotton 
blanket,  much  used  in  the  country,  is  also  made  and  competes  with 
the  imported  article.  The  plant  is  equipped  with  a  complete  machine 
shop  for  repair  work,  a  small  foundry,  a  dye  plant,  and  other  acces- 
sories. With  its  limekilns  in  Valencia,  sawmill  at  La  Victoria, 
cattle  ranches,  etc.,'  the  Branger  family  organization  constitutes  the 
largest  industrial  concern  in  Venezuela.  The  brothers  received  their 
industrial  education  and  training  in  the  United  States,  and  each  one 
has  charge  of  a  certain  department  of  the  business.  Their  capital  is 
rated  at  20,000,000  bolivars  ($3,860,000),  and  their  profits  during 
1919  were  said  to  be  around  5,000,000  bolivars,  or  nearly  $1,000,000 
in  gold.  Seven  hundred  men  and  women  are  employed  in  all 
branches  of  the  industry. 

The  brothers  are  tearing  down  all  the  old,  insanitary  dwellings  of 
their  workmen  and  buildmg  modem  sanitary  houses  for  them,  to 
avoid  the  economic  waste  of  sickness  and  impaired  efficiency  and  also 
to  hold  trained  operatives  with  the  concern.  During  the  influenza 
epidemic  of  1918,  which  caused  such  terrible  ravages  in  Venezeula, 
tfie  Branger  brothers  personally  visited  sick  employees  twice  and 
three  times  daily,  established  kitchens  for  the  preparation  of  suitable 
food,  in  which  60  men  and  women  were  employed  night  and  day, 
and  lost  only  one  man,  while  an  average  of  100  people  died  daily  m 
Valencia  from  the  epidemic.  Nowhere  else  in  Venezuela  is  there 
such  a  well-organized  industry  on  such  a  large  scale. 

In  a  statement  regarding  industrial  and  labor  conditions,  the 
manager  of  the  mills  said  that  the  greatest  difficulty  was  in  securing 
and  training  higher-grade  employees,  such  as  foremen,  mechanics, 
and  leaders. 

COTTONSEED-OIL  INDUSTRY. 

The  total  production  of  cottonseed  oil  in  the  Valencia  district  is  » 
from  approximately  2,000,000  kilos  (1  kilo  =  2.2046  pounds)   of 
seed  pressed  by  the  four  mills  located  in  Valencia.    The  production 
of  oil  is  more  than  sufficient  for  the  needs  of  the  country.    Samples 
sent  to  New  York,  Porto  Rico,  and  Panama  late  in  1920  resulted 


264     VENEZUELA :  A  OOMMEBOIAL  AJSTD  INDUSTRIAL  HANDBOOK* 

in  the  discovery  that  Venezuela's  oil  industry  could  not  compete  with 
similar  product  from  the  United  States,  though  a  large  trial  ship- 
ment was  made  to  Porto  Rico.  The  principal  consumption  of  cotton- 
seed oil  in  Venezuela  is  for  soap  making  for  the  domestic  market. 

Two  mills — ^those  of  Perez,  Aikman  &  Co.  and  Frey  &  Co. — are 
devoted  exclusively  to  providing  oil  for  the  soap  factories  of  the 
respective  concerns.  Frey  &  Co.  have  a  soap  factory  and  oil  mill  in 
Puerto  Cabello  also. 

The  two  largest  mills  are  those  of  E.  L.  Branger  (Branger  Bros.) 
and  of  the  Stelling  interests,  both  located  in  Valencia.  Another 
rather  large  oil  mill  is  operated  in  Valencia  by  John  Miller,  an 
Englishman. 

One  hundred  kilos  of  seed  produce.  40  kilos  of  chaff  and  waste, 
45  kilos  of  oil  cake,  and  16  kilos  of  oil,  the  seed  costing  around  6.50 
bolivars  ($1.25)  per  100  kilos,  delivered  at  the  mills  in  Valencia. 
Cotton  seed  can  not  be  brought  into  Valencia  from  the  fields  in  the 
neighborhood  of  Nirgua  and  San  Carlos  on  account  of  the  distance 
and  the  expense  of  transportation. 

The  Branger  interests  also  own  the  '^  La  Cumaca  "  electric  lighting 
plant  of  Valencia,  which  is  in  competition  with  the  Valencia  Lighting 
Co.  The  "  Telares  de  Carabobo  "  were  started  eight  years  ago  on 
a  very  small  scale.    The  cotton  machinery  is  mostly  of  British  make. 

LIVE  STOCK. 

The  cattle  lands  of  the  district  include  one-half  of  the  great  llanos 
of  Venezuela,  stretching  from  the  line  of  hills,  south  of  Lake  Valencia, 
to  the  River  Apure  at  San  Fernando  de  Apure,  and  west  to  the  Andes 
from  the  dividing  line  of  the  River  Guarico.  Large  areas  of  land 
around'  Valencia  proper,  the  lake,  and  as  far  east  as  Maracay,  are 
devoted  to  '^  holding  pa^ures  "  for  cattle,  being  planted  to  artificial 
pasturage  grasses  such  as  the  Para  and  the  guinea.  These  fenced 
pastures  reach  as  far  south  as  San  Carlos  and  Pao,  farther  to  the 
east.  Cattle  brought  in  from  the  plains  are  held  for  fattening  and 
conditioning  in  these  pastures  and  then  driven  over  the  highways 
to  the  Caracas  market  or  to  the  packing  house  at  Puerto  Cabello. 
In  this  section  there  are  also  many  fine  ranches  devoted  to  breeding, 
imported  stock  being  used  for  crossbreeding  purposes  with  the  native 
stock. 

There  are  no  figures  to  indicate  the  extent  of  the  land  given  over 
to  cattle  raising  and  pasturage,  nor  the  number  of  cattle  in  the 
district.  It  is  estimated  that  there  are  more  than  2,000,000  head  of 
beef  cattle  in  Venezuela;  at  least  one-half  of  this  number  may  safely 
be  credited  to  the  Puerto  Cabello  -Valencia  commercial  district. 
Cattle  constitute  the  principal  industry  and  chief  wealth,  and  the 
wealthiest  men  of  the  country  are  the  largest  cattle  owners,  the 
President  himself  beingthe  largest  of  them  all. 

The  Venezuela  Meat  Products  Co.  (Ltd.)  owns  enormous  tracts  of 
cattle  lands  (five  or  six  million  acres)  in  the  Apure  region,  the  head- 
quarters being  at  San  Fernando  de  Apure.  The  company  controls 
tnree-fourths  of  the  entire  region,  and  there  are  parts  of  the  lands 
into  which  no  white  man  has  penetrated  as  yet.  An  effort  is  being 
made  to  stock  this  range  with  cattle.   The  meat-packing  plant  of  the 


PUBBTO  CABEULO  AND  VAI*ENCIA  COMMERCIAL,  DISTRICT,      266 

company  at  Puerto  Cabello  was  originally  established  in  1913,  the 
first  shipments  of  frozen  beef  to  England  beginning  in  1915.    That 

Sir  17,847  animals  were  exported,  with  a  net  weight  of  2,197,240 
OS  (1  kilo=2.2046  pounds)  of  frozen  beef.  The  following  year 
the  total  was  18,267  head  slaughtered,  producing  a  weight  for  export 
of  3,315,990  kilos.  In  1917, 18,335  head  were  kiSed,  giving  an  export 
of  4,978,420  kilos  of  beef,  and  in  1918, 19,000  head,  producing  5,867,- 
370  kilos  of  beef  for  export.  Vesti  &  Co.  took  over  the  plant,  hur- 
riedly increased  its  capacity,  and  handled  700  carcases  daily  during 
1919.  In  1919  the-  frozen  meats  exported  from  Puerto  Cabello 
amounted  to  6,342,042  kilos,  valued  at  3,059,365  bolivars  ($590,456). 
The  plant  does  not  corn  or  can  beef,  but  ships  frozen  quarters,  etc., 
in  steamers  equipped  with  refrigeration.  Neat's- foot  oil,  hair,  glue, 
and  fertilizers  are  turned  out  as  by-products. 

Beef  cattle  from  the  llanos  are  used,  being^  driven  in  overland  via 
Maracay,  Valencia,  and  the  Puerto  Cabello  Highway.  The  selected 
cattle  are  three  months  on  the  way,  passing  from  pasture  to  pasture. 
They  arrive  in  very  poor  condition,  oecause  there  is  no  feed  between 
Valencia  and  the  port,  when  they  are  crossing  the  Coast  Range  of 
mountains.  The  company  has  provided  holding  pastur^  near  the 
plant  at  the  port,  but  the  capacity  so  far  is  only  300  head,  which  is 
not  nearly  suflBcient.  There  is  little  suitable  land  for  pasture  de- 
velopment along  the  coast  within  striking  distance  of  the  port.  The 
cattle  selected  run  between  850  and  950  pounds,  live  weight. 

About  20,000  head  of  cattle  per  year  are  exported  from  Puerto 
Cabello  to  Cuba,  coming  from  the^ame  source.    The  same  grades  are* 
taken,  and  in  1920  the  price  paid  was  7  cents  per  pound  on  the  hoof 
for  4  and  5  year  old  steers,  live  weight,  after  24  hours  in  corral 
without  feed  or  water. 

Shipments  of  live  cattle  from  Venezuela  (Puerto  Cabello  and 
Guanta)  to  Cuba  during  1920  were  valued  at  about  $2,000,000. 

Throughout  the  semiarid  plateau  of  Barquisimeto  and  in  the  Coro 
region  goat  farming  is  the  principal  industry.  The  male  animals  are 
killed  for  the  skins.  A  sort  of  hard  cheese  is  made  from  the  milk  of 
the  she  goats  and  consumed  in  all  parts  of  the  country.    Since  the 

floats  are  bred  at  little  cost  on  the  open,  arid  range,  profits  are  very 
arge.  During  the  latter  years  of  the  war,  with  skins  selling  in  New 
York  at  $1  and  more  per  pound,  returns  were  enormous.  Copo 
exports  an  average  of  6,500  tons  of  goat  manure  to  the  United  States 

annually. 

No  figures  are  available  regarding  the  extent  of  the  industry,  nor 
can  an  approximate  estimate  be  made  of  the  number  of  ammals. 
The  skins  from  the  Barquisimeto  region  are  shipped  out  through 
Puerto  Cabello,  via  the  Bolivar  Railway  and  Tuoacas.  A  great  num- 
ber of  the  skins  produced  aroimd  Coro  find  their  way  to  Curasao,  and 
from  there  are  exported  chiefly  to  the  United  States. 

In  1917  Puerto  Cabello  exported  1,053,807  pounds  of  goatskins, 
valued  at  $394,772,  of  which  the  United  States  received  902,428 
pounds,  valued  at  $370,418.  In  1918,  425,950  pounds  were  exported, 
Talued  at  $112,320,  of  which  the  United  States  received  457,280 
pounds,  valued  at  $136,951.  In  1919  the  amount  was  2,322,866 
pounds,  valued  at  $1,504,913 ;  the  United  States  received  all  but  2,509 
pounds. 


266     7ENEZTJEIA :  A  COMMEBCIAIi  AND  INDUSTBIAL  HANDBOOK. 

The  port  of  La  Vela  de  Coro  exported  690,161  pounds  of  goatskins 
in  1917,  valued  at  $241,936;  in  1918,  687,030  pounds,  valued  at 
$281,890;  and  in  1919,  946.818  pounds,  valued  at  $504,350. 

During  the  last  half  ox  1920  prices  for  skins  steadily  declined^ 
with  a  iSiarp  drop  toward  the  end  of  the  year.  Owners  declarcKi 
that  with  New  York  prices  at  between  27^  and  32^  cents  per  pound 
(November  30,  1920,  quotation)  for  the  superior  and  inferior  grades 
of  skins,  and  with  the  Falcon  State  export  tax,  they  could  not  afford 
to  continue  shipments.  However,  these  prices  are  on  a  par  with  pre- 
war quotations,  and  it  is  generally  thought  that  the  industry  can 
continue  with  a  fair  margin  of  profit  Owners  of  flocks  estimated 
the  net  profit  on  each  skin  at  1  bolivar  ($0.193) ,  which  they  considered 
too  low. 

Exports  of  cattle  hides  f  roiii  La  Vela  de  Coro  during  recent  years 
have  been  inconsiderabla  In  1916  Puerto  Cabello  shipped  2,729,740 
pounds,  valued  at  $491,593,  and  in  1917,  2,793,700  pounds,  valued  at 
$465,691.  Shipments  fell  off  in  1918  to  1,136,500  pounds,  valued  at 
$134,120,  the  reason  for  this  decrease  being  found  in  the  lack  of  ocean 
tonnage  for  transportation  and  in  the  i^strictions  imposed  by  the 
allied  Goyemmente.  Heavy  exports  to  the  United  States  were  re- 
newed in  1919  and  1920,  the  statistics  for  1919  showing  that  Puerto 
Cabello  exported  4,796,669  pounds  of  cattle  hides,  valued  at  $801,660. 

TRANSPORTATION. 

There  are  three  railways  entirely  within  the  district,  having  a  total 
length  of  164  miles;  and  the  Gran  Ferrocarril  de  Venezuela  ("Grerman 
railway  ")  connects  Valencia  with  Caracas,  the  capital  of  the  country, 
this  line  serving  the  eastern  part  of  the  district,  east  of  Valencia  ana 
as  far  as  Maracay. 


i 


PUERTO  CABBLLO  *  VALENCIA  RAILWAY. 

The  Puerto  Cabello  &  Valencia  Railway  is  54.75  kilometers  long 
1  kilometer=0.62  mile)  and  runs  from  Puerto  Cabello  to  Valencia. 
t  climbs  over  a  mountain  pass  1,952  feet  high  and  between  kilometers 
13  and  17  from  Valencia  has  a  rack-rail  section  2.4  miles  in  length, 
over  which  the  ^rade  is  8  per  cent,  the  steepest  gradient  on  the  smooth- 
rail  sections  bemg  3^  per  cent.  All  the  way  from  Naguanagua,  8 
Idlometers  from  Valencia,  the  line  follows  the  break  through  the 
range  formed  by  the  canyon  of  a  small  mountain  stream  which  comes 
out  at  the  coast  at  El  Palito.  8  kilometers  from  Puerto  Cabello  proper. 
The  actual  running  time  tor  passenger  trains  is  two  and  one-half 
hours. 

The  gauge  is  3-(  feet:  the  minimum  radius  of  curves  is  91^  meters 
(1  meter =3.28  feet) ;  tnere  are  33  bridges  and  viaducts,  with  a  com- 
bined length  of  915.5  meters,  and  one  tunnel  76.25  meters  in  length  in 
solid  rock.  The  roadbed  follows  the  eastern  side  of  the  canyon.  The 
rail  on  the  rack  section  runs  70  pounds  and  on  the  others  55  pounds 
to  the  yard. 

Boiling  stock  consists  of  10  locomotives  with  a  total  weight  of  398 
tons.  New  equipment  needed,  including  several  new  ]pcomotives,  has 
not  been  purchased  during  the  war^  either  from  the  United  States 
or  England,  on  account  of  the  excessive  cost.  There  are  13  passenger 
coaches,  26  flat  cars,  43  box  cars,  and  28  stock  cars,  the  freight  cars 


J 


MM 


PUERTO  CABELLO  AND  VALENCIA  COMMERCIAL  DISTRICT.      267 

having  a  capacity  of  15  tons  each.  The  passenger  tariff  equals  7^ 
cents  per  mile  for  first  class  and  6  cents  for  second  class.  The  freight 
rate  is  equivalent  to  20  cents  per  ton-mile,  although  the  management, 
in  order  to  increase  tonnage  traffic,  made  a  reduction  on  down-grade, 
or  export,  tonnage,  including  such  products  as  coflfee,  sugar,  hides, 
etc.  The  cost  of  construction  was  363,960  bolivars  ($70,242)  per 
kilometer. 

The  capital  of  the  company  is  20,200,000  bolivars  ($3,898,600) ,  rep- 
resenting the  sum  invested.  The  1918  report  of  the  company,  pub- 
lished in  London,  showed  6  per  cent  first-charge  coupon  bonds  as 
amounting  to  £180,000  ($876,970),  the  interest  paid  being  5  per  cent 
and  the  price  74;  ordinary  shares,  at  £10  ($48.66),  amounted  to 
£460,000  ($2,238,690),  the  interest  paid  was  IJ  per  cent,  and  the  price 
was  2.  The  road  was  built  under  a  Government  guaranty  of  7  per 
cent  on  the  capital  invested.  This  rate  was  never  earned,  and  there 
followed  years  of  dispute  as  to  the  amounts  actually  invested  and 
actually  earned.  Some  pavments  on  this  account  were  made  by  the 
Venezuelan  Government ;  the  guaranty  was  reduced  to  6  per  cent,  and 
in  1916  it  was  definitely  canceled  in  consideration  of  a  cash  payment 
of  £190,000  ($924,636). 

In  1838,  the  year  construction  was  completed,  the  road  carried 
62,299  passengers  of  both  classes,  producing  a  revenue  of  206,340 
bolivars  ($39,631).  and  16,182  tons  of  freight,  producing  921,261 
bolivars  ($177,803).  Expenses  were  629,336  bolivars  ($102,162). 
The  best  year  of  the  road  was  in  1903,  when  the  German  railway 
was  being  built;  67,619  passengers  were  carried  and  41,162  tons  of 
freight,  the  total  gross  earnings  being  2,082,843  bolivars  ($401,989). 
Again  in  1917,  increased  exports  of  corn  and  other  products  brought 
about  by  war  conditions  increased  the  freight  traffic  to  64,063  tons, 
with  gross  earnings  at  1,262,697  bolivars  ($243,701).  Increased  oper- 
ating expenses  were  incurred  during  the  war  years.  Fuel  was  expen- 
sive, as  well  as  repair  and  replacement  parts,  and  wages  had  to  be 
increased  generally  by  about  40  per  cent. 

The  roundhouse  and  repair  shops  are  located  in  Valencia.  The 
manager  is  W.  A.  Littell  (address,  Valencia,  Venezuela),  whose  office 
does  all  the  purchasing,  most  of  the  equipment  and  supplies  being 
purchased  in  England  through  the  London  office. 

In  1919  the  road  carried  63,990  passengers  and  66,120  tons  of 
freight,  the  gross  earnings  being  1,472,061  bolivars  ($284,108)  and 
the  expenses  823,706  bolivars  ($168,976). 

Except  for  the  coffee  plantation  along  the  right  of  way  at  Las 
Trincheras  in  the  canyon  and  a  short  stretch  of  country  near  Va- 
lencia, the  territory  traversed  by  the  line  is  unproductive  and  moun- 
tainous. From  300  to  700  headf  of  beef  cattle  have  been  used  daily 
at  the  plant  of  the  Venezuelan  Meat  Products  Co.  in  the  port,  but 
these  cattle  were  nearly  all  driven  down  to  the  coast  over  the  high- 
way paralleling  the  railway,  this  method  being  thought  cheaper. 

The  locomotives  on  the  rack-rail  section  use  oil  for  fuel,  furnished 
from  the  tanks  of  the  Caribbean  Petroleum  Co.  at  Puerto  Cabello, 
which  also  supphr  the  Bolivar  Eailway,  running  from  Tucacas  to 
Barquisimeto.  Venezuelan  coal  is  used  on  the  other  sections,  being 
furnished  from  the  supply  at  the  port  handled  by  the  Government 
and  originating  at  the  Coro  coal  mines. 


268     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL.  HANDBOOK. 

No  new  extensions  or  improvexnfents  are  contemplated  by  the  com- 
pany at  the  present  time.  This  railway  is  controlled  Ivy  the  same 
company  that  controls  the  La  Guaira-Caracas  line.  During  the 
administration  of  Guzman  Blanco,  the  "  German  railway  "  promoters 
were  promised  the  concession  to  the  port,  as  well  as  that  for  a  line 
from  Cagua  to  San  Fernando  de  Apure,  and  another  branch  to  San 
Carlos,  capital  of  the  State  of  Cojedes  and  the  center  of  one  of  the 
richest  undeveloped  agricultural  regions  of  the  Kepublic.    The  pro- 

Eosed  route  from  Valencia  to  San  (Tarlos  would  be  approximately  98 
ilometers  long;  it  would  greatly  assist  in  developing  that  region 
and  wxxuld  add  to  the  traffic  of  both  lines — ^the  one  to  Caracas  and 
the  one  to  the  port.  Just  prior  to  the  war  there  was  serious  thought, 
on  the  part  of  the  British-controlled  roads,  of  purchasing  the  German 
line  between  Caracas  and  Valencia. 

The  Valencia  and  Puerto  Cabello  Highway,  coiiistructed  by  the 
Government  just  parallel  to  the  railway,  carries  considerable  freight 
traffic  in  the  usual  two- wheeled,  one-mule  carts  of  the  coimtry,  and 
the  light  automobile  has  seriously  impaired  passenger-traffic  returns. 

BOLIVAR  RAILWAY. 

The  Bolivar  Railway  was  originally  constructed  in  1835  to  serve 
the  Aroa  copper  mines,  which  were,  however,  shut  down  in  1840. 
In  1862  work  on  both  the  mines  and  the  railway  was  recommenced, 
only  to  be  paralyzed  again.  In  1872  the  work  was  definitely  accom- 
plished, service  to  Barquisimeto  being  established  in  1877,  making 
this  railway  the  oldest  in  Venezuela,  with  the  exception  of  a  short 
line  from  tuerto  Cabello  to  El  Palito,  called  the  Eastern  Railway 
of  Venezuela,  which  was  only  4  kilometers  in  length  (1  kilo- 
meter=0.62  mile).  The  next  line  to  be  put  into  service  was  the 
La  Guaira-Caracas  Railway  in  1883. 

The  Bolivar  Railway  runs  from  the  port  of  Tucacas,  29  miles 
northwest  of  Puerto  Cabello  by  sea,  to  the  copper  mines  of  Aroa 
and  to  Barquisimeto,  capital  of  the  State  of  Lara.  In  1915,  20  kilo- 
meters of  ttie  branch  from  Palma  Sola  to  San  Felipe,  capital  of 
the  State  of  Yaracuy,  were  constructed,  the  total  length  of  42 
kilometers  being  completed  in  1917.  The  length  of  the  main  line 
is  176.5  kilometers  and  the  contract  length  218.5  kilometers.  The 
gauge  is  2  feet,  and  the  rail  runs  48  pounds  to  the  yard.  The  capital 
stock  amounts  to  $6,822,550  United  States  currency,  and  the  invest- 
ment to  date  is  $5,974,600.  The  maximum  grade  is  5.27  per  cent 
and  the  minimum  radius  of  curves  46.83  meters  (1  meter=3.28  feet). 
The  ties  are  of  wood  (with  some  of  steel,  also),  and  there  are  518 
bridges  and  culverts,  having  a  combined  length  of  2,119  meters. 

The  road  has  13  locomotives  with  a  combined  tonnage  of  294,  9 
passenger  coaches,  69  flat  cars,  61  box  cars,  and  125  stock  cars,  the 
freight  capacity  being  10  tons  each.  The  passenger  tariff  is  5.8 
cents  per  mile  for  first  class  and  3.8  cents  per  mile  for  second  class. 
The  freight  rate  charged  equals  29  cents  per  ton-mile. 

From  1895  to  1902  the  road's  gross  income  decreased  steadily  until 
in  the  latter  year  it  was  only  $91,711,  after  which  it  rose  to  $506,590 
in  1913.  The  management  has  made  an  effort  to  increase  agriculture 
along  the  line. 


PUERTO  OABBIiLO  AND  VAMSKCIA  COMMERCIAL  DISTRICT.      269 

The  branch  connecting  the  mines  at  Aroa  with  the  main  line  at 
EI  Hacha  is  13.59  kilometers  in  length  and  has  a  grade  of  5.27  per 
cent.    The  offices  and  shops  are  located  at  El  Hacha. 

By  far  the  best  year  for  the  road  was  1917,  the  increase  in  traffic 
being  due  to  the  movement  of  copper  ore  and  matte  to  the  coast  and 
the  exportation  of  other  products.  The  total  tonnage  handled  was 
76,982  (of  which  41,271  tons  represented  mine  products  for  export). 
The  total  gross  revenue  was  3,371,319  bolivars  ($650,665)  and  the 
expenses  1,912,408  bolivars  ($369,095). 

The  average  cost  of  construction  per  kilometer  was  175,301  bolivars 
($38,833),  The  highest  elevation  encountered  is  at  Duaca,  at  kilo- 
meter 128  from  Tucacas. 

Oil  is  used  for  fuel,  being  supplied  from  the  storage  tanks  of 
the  Caribbean  Petroleum  Co.  at  Puerto  Cabello  and  transferred  to 
Tucacas  in  a  small  motor  tank  vessel  owned  and  operated  by  the 
railway  con^pany.  • 

Improvements  at  Tucacas  consist  of  storage  bins  for  copper  ore 
and  a  set  of  steel  lighters  for  transferring  cargoes  of  ore  and  matte 
to  the  steamers  Ij^ing  at  anchor  in  the  roadstead. 

The  running  time  between  the  port  of  Tucacas  and  Barquisimeto 
is  lOJ  hours,  with  a  stop  of  35  minutes  at  El  Hacha  for  luncheon. 
Passenger  trains  are  operated  on  Mondays  and  Thursdays  both  ways, 
Puerto  Cabello  being  reached  by  means  of  a  steam  launch  that  runs 
between  that  port  and  Tucacas  on  Wednesdays  and  Saturdays. 
This  launch  leaves  Puerto  Cabello  on  Wednesdays  at  2  p.  m.,  reach- 
ing Tucacas  at  5.30  p.  m.  The  traveler  must  remain  in  Tucacas 
that  night  and  take  the  train  for  Barquisimeto  the  next  morning. 
If  the  Saturday  launch  is  taken  (leaving  at  the  same  hour)  the 
traveler  must  remain  in  Tucacas  over  Sunday,  as  there  is  no  train 
to  Barquisimeto  or  San  Felipe^ until  Monday  morning.  Travelers 
from  Barquisimeto  and  San  Felipe  must  remain  over  night  at  the 
port  of  Tucacas.  Salesmen  and  travelers  who  can  afford  it  much 
prefer  the  trip  by  automobile  either  from  Valencia,  via  Montalban 
and  San  Felipe,  or  from  Puerto  Cabello,  via  San  Felipe.    In  the 

{)resent  condition  of  this  road,  it  takes  a  day  of  hard  driving  in*  a 
ight  car  to  reach  Barquisimeto  from  Puerto  Cabello. 

The  manager  of  the  Bolivar  Railway — long  a  resident  of  the 
country — has  about  completed  the  study  of  a  new  proposed  branch, 
or  connecting  line,  which  would  run  from  some  point  on  the  main 
line  to  Valencia  through  the  rich  but  undeveloped  agricultural  lands 
lying  between  the  two  railways.  The  drawbacks  are  the  lack  of 
immediate  tonnage  and  the  remote  prospect  of  development  on  ac- 
count of  the  lack  of  sufficient  population  throughout  the  region. 

CORO  &  LA  VELA  RAILWAY. 

The  Coro  &  La  Vela  Railway  connects  Coro,  the  capital  of  the 
State  of  Falcon,  with  the  seaport  of  La  Vela,  known  as  La  Vela  de 
Coro.  It  is  only  8:^  miles  long  (13.37  kilometers),  and  its  construc- 
tion cost  was  1,040,000  bolivars  ($200,720),  or  77,786  bolivars 
($15,013)  per  kilometer.  The  line  traverses  the  lowlands  forming 
the  base  of  the  peninsula  of  Paraguana,  Coro  being  situated  on  the 
western  side  and  La  Vela  on  the  eastern.  It  is  subject  to  floods  and 
washouts,  and  heavy  competition  is  encountered  in  the  cart  traffic 


270    vekeztjeia:  a  commercial  and  industrial  handbook. 

by  local  workmen,  though  the  Government  cut  the  rates  in  1916  until 
the  cart  traffic  should,  theoretically,  have  ceased. 

The  gauge  is  3^  feet,  weight  of  rail  48  pounds  to  the  yard,  maxi- 
mum curve  radius  117  meters  (1  meter  ==  3.28  feet),  and  maximum 
gradient  0.84  per  cent.  There  are  8  bridges  and  viaducts,  with  a 
total  length  of  366  meters.  The  road  has  2  locomotives  in  operation, 
handling  1  passenger  car,  1  flat  car,  and  1  box  car.  The  passenger 
rate  is  2  bolivars  (|0.386)  for  the  trip,  and  the  freight  rate  on  1  ton 
of  merchandise  either  way  is  20  bolivars  ($3.86). 

This  road  was  taken  over  by  the  Government  under  the  loan  of 
1895,  when  the  accrued  debt  of  the  original  company  was  canceled 
together  with  all  guaranties.  The  best  year  of  the  road  was  its  first 
year  of  operation,  1898,  when  the  gross  receipts  were  68,098  bolivars 
($13,143).  The  maximum  quantity  of  goods  handled  is  10,800  me- 
tric tons.  Expenses  about  equal  income,  and  some  years  the  road  is 
operated  at  a  loss:  It  is  under  the  same  management  as  the  Govern- 
ment coal  mines  of  the  Coro  district.  ■   , 

mCHWAYS. 

The  district  has  four  main  cart-road  highways,  that  from  Valencia 
to  San  Carlos  forming  a  part  of  the  Great  Western  Highway  which 
it  is  planned  to  put  through  eventually  to  the  Colombian  border. 
Barquisimeto  also  has  several  main  roads  which  connect  it  with  the 
important  towns  of  the  region.  Small  two-wheeled  mule  cart^  com- 
pete with  the  railways  for  freight,  and  the  light  automobile  is  carry- 
ing nearly  50  per  cent  of  the  passenger  traffic  where  highways  paral- 
lel railways,  and  nearly  all  of  it  throughout  the  rest  of  the  district. 
The  roads  are  narrow  and  can  not  be  used  for  heavy  auto-truck 
traffic  on  account  of  the  light  surfacing,  the  heavy  grades  encoun- 
tered in  many  places,  and  the  sharp  curves. 

The  Valencia  and  Puerto  Cabello  Highway  is  a  well-constructed 
road  following  the  line  of  the  railway,  which  it  parallels.  Its  length 
is  53.6  kilometers  (1  kilometer  =  0.62  mile),  and  the  run  can  be 
made  by  automobile  in  about  two  hours  during  the  day.  A  good 
driver  can  make  Caracas  from  the  port  in  one  day,  via  Valencia. 

The  Puerto  Cabello  and  San  Felipe  Highway  is  an  old  cart  road 
now  under  reconstruction  via  El  Palito  and  Urama.  The  total  dis- 
tance is  92  kilometers.  No  heavy  elevations  and  grades  are  encoun- 
tered en  route,  but  the  country  is  cut  up  with  small  ranges  of  broken 
hills,  and  there  are  many  small  watercourses  to  be  crossed,  which  are 
flooded  in  the  rainy  season  and  make  motor  traffic  impossible.  New 
steel  bridges  are  being  provided,  however,  and  the  road  rapidly  put 
in  shape  for  all-year  traffic.  A  section  of  the  road  continues  on  to 
Barquisimeto,  via  Guama,  Chivacoa,  and  Yaritagua,  and  construc- 
tion is  under  way  to  connect  with  San  Felipe  and  Puerto  Cabello. 
Light  cars  make  the  run  from  Puerto  Cabello  to  San  Felipe  in  3^ 
hours — and  in  8  hours  more  to  Barquisimeto  during  the  dry  season 
of  the  year. 

An  important  highway  connects  Valencia  with  the  Nirgua  district 
and  is  being  constructed  on  into  San  Felipe.  The  road  has  now  a 
length  of  1(X)  kilometers,  via  Montalban,  in  the  region  of  which  there 
is  considerable  hilly  country  to  be  traversed  en  route. 

The  Valencia  and  San  Carlos  Highway,  98.75  kilometers  in  length, 
is  an  old  road  that  has  recently  been  repaired  and  reconstructed  to 


PTTEBTO  CABBLLO  AKD  VALENCIA  COMMEROIAL  DISTRICT.      271 

fonn  a  part  of  the  Great  Western  Highway  which  will  connect 
Caracas  with  the  Colombian  border  via  Valencia,  San  Carlos, 
Guanare,  and  Barinas — construction  now  being  carried  on  actively  in 
sections  between  San  Carlos  and  Guanare.  The  run  in  an  automobile 
from  Valencia  to  San  Carlos  can  be  made  in  three  hours  in  daylight. 
This  road  crosses  a  rich  agricultural  di3trict,  which  is  the  scene  of 
recent  developments  in  the  way  of  cotton  and  rice  cultivation  and  new 
cattle  pastures. 

The  Barquisimeto-Carora  Highway  formed  a  part  of  the  old  road 
that  was  constructed  by  Gen.  Castro  from  Barquisimeto  to  Santa 
Rita,  on  Lake  Maracaibo,  and  that  has  now  fallen  into  decay,  with  the 
exception  of  the  Carora  section,  which  has  been  kept  up  by  the  State 
government  from  time  to  time,  though  this  road  can  not  be  said  to  be 
in  very  good  condition  at  present.  The  distance  from  Barquisimeto 
is  116  kilometers,  via  Atarigua  and  Arenales,  from  which  place  the 
road  follows  the  narrow  valley  of  the  River  Tocuyo's  headwaters. 

The  Coro-Cumarebo  Highway  connects  the  capital  of  the  State 
of  Falcon  with  the  farming  region  along  the  coast,  centering  at  Cuma- 
rebo.    Its  length  is  43  kilometers. 

Another  old  road  connects  Barquisimeto  with  the  important  inte- 
rior town  of  El  Tocuyo,  69  kilometers  distant,  the  highest  point  being 
passed  at  El  Quibor,  about  halfway.  Tocuyo  lies  at  the  foot  of  the 
Western  Range  of  the  Venezuelan  Andes,  on  the  western  side.  The 
trip  has  been  made  in  automobile-  from  Caracas  to  Trujillo  in  the 
dry  season,  via  Tocuyo  and  Carache,  but  there  is  no  road  beyond 
Tocuyo. 

TRAILS. 

All  the  larger  villages  of  the  interior  and  coast  points  are  connected 
with  one  another  and  with  the  larger  centers  by  mule  trails  of  ex- 
cellent construction  and  repair.  These  trails  serve  for  bringing  down 
the^  coffee,  cacao,  etc.,  from  the  higher  elevations  and  more  difficult 
ground  of  the  interior  to  the  points  of  shipment  for  export.  In  no 
other  country  of  Spanish  America  is  there  such  a  complete  system  of 
good  mule  trails  as  throughout  Venezuela.  They  are  greatly  superior 
to  the  interior  trails  of  Mexico  not  only  in  character  of  construction 
but  also  in  the  attention  bestowed  upon  them  yearly. 

WATERWAYS. 

With  the  exception  of  the  rivers  of  the  far  interior,  which  connect 
Guanare  and  Barinas  with  the  Apure  and  thence  with  the  Orinoco 
during  the  season  of  high  water,  the  only  navigable  river  of  the  dis- 
trict is  the  Rio  Tocuyo,  which  in  the  rainy  season  (reaching  its  maxi- 
mum in  this  region  in  January  and  February)  can  be  ascended  by 
light  boats  and  canoes  as  far  as  the  town  of  Siquisique.  Rafts  of 
lumber  for  ultimate  use  in  Valencia  and  Puerto  Cabello  are  brought 
down  during  each  season  of  high  water,  the  timber  being  cut  during 
the  dry  season.  The  best  known  and  most  valuable  of  the  timber 
extracted  is  the  red  cedar. 

STATISTICS  OF  FOREIGN  TRADE. 

The  average  annual  value  of  imports  into  Puerto  Cabello  during 
the  years  1915, 1916,  and  1917  was  $2,828,748,  of  which  goods  amount- 


272     "VElTEZtJELA :  A  COMMERCIAL  AND  INDUSTRIAIi  HANDBOOK. 

ing  to  $1,805,495,  or  63.8  per  cent,  came  from  the  United  States.  In 
1918  imports  were  reduced  to  $2,061,464  on  account  of  trade  restric- 
tions during  the  latter  years  of  the  World  War,  after  the  entry  of 
the  United  States  into  the  conflict.  In  1919  there  was  a  notable 
increase,  the  imports  at  Puerto  Cabello  amounting  to  $4,023,944. 

Imports  consist  largely  of  staple  products,  provisions  and  manu- 
f actures  suitable  for  everyday  use,  together  with  some  raw  materials 
and  machinery.  Among  the  leading  imports  may  be  mentioned 
flour,  rice,  cotton  manufactured  goods,  iron  and  steel  manufactures, 
bags  and  bagging,  thread,  coal,  drugs  and  medicines,  and  raw'  ma- 
terials for  soap  making.  Paper  and  paper  products  also  form  a  con- 
siderable item.  Import  duty  rates  make  practically  impossible  the 
importation  of  shoes,  laundry  soap,  matcU,  ready-maae  clothing, 
horseshoes,  trunks,  and  furniture. 

Imports  into  La  Vela  de  Coro  were  valued  at  $135,629  in  1919. 
There  is  only  a  poor  market  for  luxuries,  novelties,  and  articles  for 
which  there  is  merely  an  occasional  demand. 

Average  annual  exports  from  Puerto  Cabello  during  1915,  1916, 
and  1917  were  $5,341,252,  of  which  42.7  per  cent  went  to  the  United 
States.  They  consisted  of  the  following  products :  Coffee,  54.2  per 
cent;  cacao,  13.1  per  cent;  hides  and  skins,  12.5  per  cent;  copper  ore 
and  matte,  6.9  per  cent ;  frozen  beef,  6.4  per  cent ;  sugar,  2.6  per  cent ; 
all  other  articles,  4.3  per  cent.  In  1918  the  value  of  Puerto  Cabello's 
exports  was  $3,990,970,  while  in.  1919  they  registered  a  very  great 
increase— to  $16,043,386. 

Exports  from  the  port  of  La  Vela  de  Coro  during  1915,  1916,  and 
1917  averaged  $319,967  per  annum-^goat  skins,  fertilizer,  coffee,  and 
divi-divi  furnishing  the  chief  items.  In  1918  the  value  of  the  ex- 
ports was  $301,479,  while  in  1919  there  was  an  increase  of  more  than 
lOOper  cent,  the  value  being  $687,090. 

W  ar-time  restrictions  on  shipping  served  to  increase  the  relative 
importance  of  La  Guaira  and  Puerto  Cabello  at  the  expense  o^  the 
smaller  ports.  Seagoing  vessels  no  longer  called  at  the  small  ports, 
which  were  compelled  to  supply  their  wants  from  Caracas  by  coast- 
ing trade.  The  gradual  cejitralization  of  the  wholesaling  trade  in 
Caracas  has  also  increased  the  national  coasting  traffic.  Imports 
into  Puerto  Cabello  were  abnormally  great  in  1917  owing  to  the 
enlargement  of  the  meat- freezing  plant  there. 

The  heavy  increase  in  exports  in  1919  was  due  mainly  to  the  renewal 
of  ocean  traffic,  permitting  the  shipment  of  supplies  of  coffee,  cacao, 
hides,  etc.,  held  over  from  the  war  years  and  disposed  of  on  the  Ameri- 
can market  at  extraordinarily  high  prices.  Exports  during  the  first 
part  of  1919  included  at  least  a  part  of  the  1918  crops. 

German  firms  had  on  hand  large  stores  of  coffee,  cacao,  and  hides 
which  they  had  been  forced  to  receive  during  the  war  years  in  return 
for  money  advanced  on  crops  according  to  their  customary  system  of 
trading  in  Venezuela,  and  they  could  not  export  on  account  of  the 
"enemy-trading"  restrictions.  During  the  period  of  high  prices 
in  1919  these  Gferman  firms,  long  established  in  the  country,  realized 
enormous  profits,  the  trading  restrictions  really  reacting  to  their 
very  great  advantage. 

The  following  table  shows  the  articles  invoiced  at  the  American 
consulate  at  Puerto  Cabello  for  exportation  to  the  United  States 
during  1919  and  1920: 


PUEETO  CABlEJAuO  AND  VAL»ENCIA  COMMERCIAL  DISTRICT.      273 


Artides. 


Beans,  Tonka pounds . 

Bones do. . . 

Cocoa do... 

Coffee do. . . 

Drums ,  empt  y number . 

Hides pounds . 

Nuts: 

Coconuts do. . . 

Kola do... 

Orchids do . . . 

Ores,  copper tons. 

Rubber pounds. 

Seeds: 

Cast<N- :...do... 

Cotton do... 

Sisal do... 

Skins: 

Deer w 

Goat 

Slaughterhouse  by-products: 

Fertilizers do. 

Other do . 

Sugar: 

Centrifugal do. 

Raw do. 

Wood do. 

All  other  articles 


do... 
do... 


Total. 


1910 


Quantity. 


6,222 


3,073,090 

14,640,137 

271 

2,394,723 


20,956 

2,319 

64,308 

360,871 


101,705 
2,261,432 


5,434,889 


86,066 


Value. 


$1,}«2 


665,079 

2,568,979 

3,593 

539,982 


3,862 

137, 108 

27,628 

17,607 


24,062 
1,695,872 


257,434 


1,175 
7,172 


5,851,475 


1920 


Quantity. 


407,786 

3,117,277 

7,935,999 

213 

1,603,389 

12,159 
4,907 


4,480 
36,785 


37,397 
21,595 

104,279 
1,264,096 

264,377 
230,023 

7,854,928 

1,011,579 

971,711 


Value. 


t2,506 

664,925 

1,664,661 

2,988 

317,684 

251 
6,320 


40,640 
16,731 


2,081 
1,267 

28,751 
966,378 

2,603 
4^734 

543^349 
86,721 
17, 3« 

4,961 


4;  263, 729 


Returned  American  goods  were  valued  at  $8,710  in  1919  and  $3,391 
in  1920. 

Exports  from  Puerto  Cabello  to  Porto  Rico  decreased  from  $45,440 
in  1919  to  $18,469  in  1920. 

COMMERCIAL  METHODS. 

The  bulk  of  the  business  passing  through  Puerto  Cabello  for  the 
Valencia  and  Barquisimeto  districts  is  done  through  export  com- 
mission houses  in  New  York  who  sell  to  merchants  and  buy  or 
handle  for  them  the  products  of  the  district  for  exportation.  Thia 
business  is  handled  chiefly  on  "  open  account,"  with  a  settlement  from 
time  to  time.  Credit  terms  are  usually  from  60  to  90  days  from 
acceptance  of  draft  by  the  purchaser. 

Commercial  credit  information  is  not  easy  to  obtain,  and  care 
should  be  taken  in  extending  credit,  which  should  usually  be  con- 
fined to  the  old  established  or  accredited  firms  of  standing  in  the 
business  centers  named.  Commercial  operations  should  be  governed 
by  the  economic -factors  of  the  district  covered  by  the  local  firms 
purchasing  supj)lies  of  goods  and  general  merchandise.  Coffee,  con- 
stituting the  principal  article  of  export  and  the  chief  wealth  of  the 
region,  should  be  taken  as  an  indication  of  conditions,  which  are 
largely  dependent  on  prices  and  crop  yields  each  year. 

Credit  information  may  best  be  obtained  bjr  applying  through  the 
New  York  offices  or  branches  of  the  following  banks  which  have 
agencies  or  branches  in  Puerto  Cabello  and  Valencia :  National  City 
Bank  of  New  York;  Mercantile  Bank  of  the  Americas  (Banco  Mer- 
cantil  Americano  de  Caracas) ;  Commercial  Bank  of  Spanish  America 
(Anglo-South  American  Banking  Corporation  (Ltd.),  of  London) ; 


79747°-'22- 


-19 


274   "VENEzyEiA:  a  commercial  and  industrial  handbook. 

Royal  Bank  of  Canada.  This  last-named  bank  is  the  only  one  hav- 
ing a  branch  in  Puerto  Cabello,  the  other  banks  maintaining  agencies. 
The  Mercantile  Bank  of  the  Americas  maintains  a  branch  in  Valencia. 
Two  native  banks,  the  Banco  de  Caracas  and  the  Banco  de  Venezuela, 
maintain  agencies  here  and  can  sometimes  furnish  credit  information 
and  handle  drafts.  Most  of  the  business  originating  in  the  United 
States  is.  however,  handled  by  the  branches  and  agencies  of  the  for- 
eign banks  established  in  the  country  and  having  their  headquarters 
in  Caracas. 

EXTENT  OF  TRADE  AND  VOLUME  OF  BUSINESS. 

Before  the  construction  of  the  Gran  Ferrocarril  de  Venezuela  be- 
tween Caracas  and  Valencia,  the  latter  city  was  the  center  of  trade 
for  the  entire  commercial  district  herein  described. ,  The  German 
houses  predominated  very  largely,  being  organized  to  do  a  general 
import  and  export  business,  making  advances  on  the  crops  and  ex- 
ports of  the  country  directly  to  the  producers,  and  selling  bills  of 
merchandise  at  long  credits  in  the  interior.  The  trade  of  Valencia 
was  even  more  important  than  that  of  Caracas  in  many  ways.  With 
the  completion  of  the  "  German  railway  "  in  1894,  the  trade  gravi- 
tated to  Caracas,  the  political,  financial,  and  commercial  center  of  the 
country.  Many  of  the  larger  German  houses  had  divided  their  ac- 
tivities between  Caracas  and  Valencia,  but  now  concentrated  in  the 
national  capital,  maintaining  branches  in  Valencia  and  Puerto 
Cabello.  The  principal  importers  of  Puerto  Cabello  have  long  been 
German  houses,  the  largest  ones  at  present  being  branches  of  Caracas 
houses,  though  four  of  them  make  the  port  their  headquarters  and 
h^ve  their  main  offices  there,  engaging  strictly  in  the  trade  with  the 
Valencia  and  Barquisimeto  regions  of  the  interior. 

One  large  American  house  (the  Venezuela  Commercial  Co.,  a 
branch  of  W.  R.  Grace  &  Co.)  has  a  large  branch  in  Puerto  Cabello 
and  imports  direct,  selling  to  Valencia,  Barquisimeto,  San  Felipe,  and 
other  less  important  points  of  the  interior.  This  house  has  its  own 
steamship  line,  the  New  Orleans  &  South  American  Steamship  Co., 
with  two  freight  and  passenger  boats  monthly  between  Venezuelan 
ports  and  New  Orleans.  Its  business  is  strictly  wholesale.  The 
other  houses  importing  directly,  and  also  those  which  are  branches 
of  the  large  Caracas  houses,  maintain  retail  stores  as  well  for  the 
local  trade.  AH  stores,  with  the  exception  of  two  that  specialize 
in  groceries,  wines,  and  liquors,  handle  general  merchandise,  of 
which  cheap  cotton  textiles  form  the  larger  part.  They  number  13 
in  all.  Salesmen  from  Caracas,  representing  th^  large  importing 
houses  there,  and  agencies  of  American  and  English  commission 
firms  also  cover  Puerto  Cabello,  Valencia,  Barquisimeto,  and  San 
Felipe,  periodically  by  light  automobile,  thereby  increasing  the  evi- 
dent tendency  of  business  to  concentrate  in  Caracas. 

Valencia  has  24  firms  in  all  lines,  the  stores  handling  general  mer- 
chandise, also  carrying  stocks  of  hardware  and  tools.  Only  a  few 
of  these  firms  import  direct.  Six  of  these  have  a  capital  of  $100,000 
or  more,  seven  have  a  capital  of  $50,000  or  more,  and  there  are  five 
more  that  have  a  capital  of  $25,000  or  more. 

Barquisimeto  has  eight  commercial  houses  of  importance,  of  which 
one  has  a  capital  of  $600,000,  one  $300,000,  one  $200,000,  and  one 


PUERTO  GABEIXO  AND  VALENCIA  COMMERCIAL  DISTRICJT.      275 

$100,000,  all  of  which  are  direct  importers  through  Puerto,  Cabello, 
shipments  being  sent  to  them  via  Tucacas  and  the  Solivar  Railway. 

Coro  has  five  principal  firms,  the  largest  of  which  has  a  capital  of 
$80,000.  There  are  also  several  branches  of  Caracas  houses  estab- 
lished there,  and  several  important  commercial  houses  of  Curagao 
niaintain  branches  in  Cofo  and  La  Vela,  engaged  in  the  goatskin  and 
divi-divi  trade  of  the  region. 

In  the  far  southern  limits  of  the  district,  San  Fernando  de  Apure 
has  six  firms  handling  general  merchandise  and  two  drug  stores. 
The  largest  capital  is  stated  as  $190,000.  San  Fernando  buys  from 
Caracas  and  Valencia,  while  Barinas  and  Guanare  trade  with  the 
nearer  centers  of  Merida  and  Trujillo  by  pack-mule  transport,  and, 
during  the  season  of  high  water  in  the  Apure  and  Orinoco  Eivers, 
exchange  products  for  goods  with  far-away  Ciudad  Bolivar  by 
river  steamer. 

American  firms  interested  in  developing  their  trade  with  this  com- 
mercial territory  of  Venezuela  should  have  their  representatives 
make  Valencia,  Puerto  Cabello,  San  Felipe,  and  Barquisimeto  as 
separate  units — ^taking  the  precaution,  however,  not  to  disturb  trade 
relations  long  established  with  certain  firms  of  these  places  by  the 
large  houses  of  Caracas,  on  which  advance  information  should  be 
obtained.  As  a  rule,  the  large  importing  houses  are  the  principal 
exporters  of  the  country's  products  of  coffee,  cacao,  hides  and  skins, 
etc.,  and  have  long-established  connections  with  the  smaller  dealers 
of  the  interior  who  collect  these  products.  Very  often  advances  have 
been  made  on  crops,  in  the  form  of  either  money  or  merchandise, 
under  special  conditions  arranged  to  attract  exports.  It  is  not  possi- 
ble to  indicate  the  time  and  expense  necessary  to  cover  the  territory, 
as  these  factors  depend  upon  the  line  or  lines  handled,  the  time 
already  spent  by  the  firm  in  Venezuela,  the  work  of  previous  agents 
or  representatives,  and  the  nature  of  the  business — ^that  is,  whether 
direct  representation  of  factories  not  previously  represented  in  the 
country,  or  work  for  a  commission  house,  or  other  kinds  of  commer- 
cial effort. 

The  parcel-post  service  is  being  used  more  and  more  by  importers 
maintaining  general  stores  for  the  purpose  of  keeping  on  hand  small 
but  attractive  stocks  ef  seasonal  merchandise,  such  as  dry  goods, 
women's  wear,  notions,  etc.  This  method,  however,  suffers  in  Vene- 
zuela from  the  practices  of  the  customs  authorities  at  port  of  entry, 
where  all  parcel-post  imports  have  to  be  examined  and  cleared,  the 
importers  being  forced  to  accept  the  customs  liquidation  in  advance 
im  writing,  accepting  all  fines,  etc.,  at  the  same  time.  Importers 
of  the  interior  have  resorted  to  the  services  of  customs  agents  in 
the  ports  of  entry,  who  accept  the  shipments  and  pay  the  duty,  fines 
(if  any),  ete.,  and  then  forward  the  goods  to  the  purchaser  in  the 
interior. 

It  is  thought  that  the  system  in  force  in  the  neighboring  country 
of  Colombia  would  work  out  to  much  better  advantage,  with  the 
goods  passing  through  the  port  of  entry  without  intervention  of  the 
customs  and  in  full  charge  of  the  postal  authorities,  who  later  carry 
out  the  liquidation  of  diarges  and  import  duties  at  the  point  of 
destination  in  the  presence  of  the  addressee. 


276     VENEZUELA:  A  COMMEUCIAL  AND  INDUSTMAIi  HANDBOOK. 

The  strict  requirements  governing  parcel-post  imports  into  Vene- 
zuela are  partly  due  to  the  onerous  customs  regulations  and  partly 
to  the  former  abuse  of  the  service  by  some  merchants  who,  when 
fined  for  infractions  of  the  custom  rules,  refused  to  accept  the  ship- 
ment, which  was  abandoned  to  the  customhouse  then  and  there.  In 
this  the  shippers,  especially  those  of  the  United  States,  were  often 
to  blame,  on  account  of  their  apparent  lack  of  knowledge  of  these 
verjr  regulations  and  the  Venezuelan  customs  requirement,  and  also 
their  lack  of  attention  to  details  of  packing,  declarations,  etc. 

However,  by  1920  parcel-post  shipments  from  the  United  States  had 
greatly  improved  in  these  respects,  customs  employees  declaring  that 
parcels  received  from  the  United  States  were,  as  a  rule,  much  better 
packed  than  those  from  European  countries. 

TENDENCY  OF  TRADE  WITH  UNITED  STATES. 

All  other  factors  of  price,  quality,  and  terms  being  equal,  the 
importers  of  Venezuela  much  prefer  to  buy  in  the  United  States — 
for  two  reasons,  mainly.  The  first  reason  is  found  in  the  shorter 
distance  between  the  two  countries,  which  makes  for  much  quicker 
deliveiy  of  orders;  goods  can  be  delivered  in  about  six  weeks  (from 
date  01  order)  from  the  Atlantic  seaboard  of  the  United  States  as 
compared  with  three  to  four  months  from  Europe.  Shorter  delivery 
time  does  away  with  the  necessity  for  long-credit  terms  and  permits 
the  importer  to  carry  smaller  stocks  of  staple  merchandise,  more 
often  renewed. 

The  second  reason  is  found  in  the  fact  that  the  United  States  is 
the  best  customer  for  Venezuela's  exports,  this  condition  very  often 
resulting  in  balances  carried  in  the  United  States,  greatly  facilitating 
payments,  etc.  Several  large  American  houses  which  are  heavy 
buyers  oi  coffee  maintain  resident  representatives  in  the  Puerto 
Cabello  and  Valencia  districts,  and  other  houses  handling  exports 
from  Venezuela  have  periodical  representation  during  the  shipping 
season. 

In  the  approaching  era  of  competition  with  Europe  the  keynote  of 
exporters  of  the  United  States  should  be  greater  attention  to  the 
details  of  exporting,  such  as  packing,  invoicing,  declarations,  etc. 
Packing  is  the  most  prolific  cause  of  complaint.  This  should  be  as 
light  as  possible  consistent  with  safety  of  contents,  because  duty  is 
assessed  on  the  gross  weight.  Another  freauent  cause  of  complaint 
is  the  damage  to  goods  resulting  from  careless  handling  in  transit; 
steamship  companies  are  seldom  held  responsible  for  the  full  extent 
of  the  damage,  and  insufficient  care  is  taken  in  the  important  matter 
of  insurance,  which  should  in  every  case  cover  full  policy.  Im- 
porters should  themselves  be  satisfied  before  the  shipment  is  sent  out 
that  it  is  fully  covered. 

Since  most  of  the  business  is  handled  through  export  commission 
houses,  which  know  the  trade  conditions  of  the  country  and  its  require- 
ments, greater  cooperation  between  such  houses  and  the  factories  and 
manufacturers  supplying  the  goods  is  needed.  It  is  impossible  for 
the  export  commission  house  always  to  see  and  inspect  goods  before 
shipment  is  made,  and  perhaps  the  greater  portion  of  trade  complaints 


PUERTO  CABELLO'AND  VALENCIA  COMMERCIAL  DISTRICT.      277 

have  their  origin  in  the  careless  way  in  which  orders  are  filled  and 
shipped.  Very  often  the  manufacturer  does  not  understand  the  inti- 
mate bearing  of  some  small  detail,  or  some  apparently  unimportant 
change  in  specifications,  for  which  there  is  really  a  very  good  reason 
and  of  which  the  customer  is  the  best  judge.  The  best  plan  is  for 
exporters  to  follow  to  the  letter  the  instructions  for  billing,  invoicing, 
and  packing  given  by  the  buyer,  who  knows  what  he  has  to  meet. 
So  much  trouble  has  been  experienced  that  purchasers  are  very 
careful  to  set  forth  in  detail  on  their  orders  full  instructions  for 
declaring  merchandise  and  for  packing. 


CIUDAD  BOLIVAR  COMMERCIAL  DISTRICT. 

LOCATION  AND  TERRITORY. 

Ciudad  Bolivar,  situated  on  the  right  bank  of  the  great  Orinoco, 
approximately  230  miles  from  the  Atlantic  Ocean,  is  the  commercial 
and  trading  center  of  a  territory  covering  more  than  half  of  the  total 
area  of  Venezuela.  The  region  is  at  the  same  time  the  least  devel- 
oped and  the  most  interesting  of  the  four  commercial  districts  into 
which  the  country  is  divided.  It  includes  the  territory  of  the  Orinoco 
Eiver  system^  which  drains  204,600  square  miles — an  area  larger  than 
that  of  Spain.  It  also  contains  the  great  mountain  area  of  the  Guiana 
highlands  and  the  Parima*  Range  extending  south  to  the  Brazilian 
frontier — an  area  that  includes  elevated  plains  and  unexplored  for- 
ests. Its  river  system  links  it  with  the  great  plains  of  Colombia  far 
to  the  west  and  southwest.  Another  great  topographical  division  is 
formed  by  the  territory  covered  by  the  Orinoco  delta,  which  extends 
from  the  bcmndary  with  British  Guiana  ©n  the  south  to  the  shore 
opposite  the  island  of  Trinidad  on  the  north. 

Famous  for  two  centuries  as  the  land  of  the  mythical  city  of  Manoa 
and  the  golden  region  believed  to  exist  up  the  Orinoco,  it  was  the 
cause  of  the  first  English  intervention  in  Trinidad  in  1595  and  again 
in  1617  under  Sir  Walter  Raleigh.  In  more  modem  times  the  gold 
fields  of  El  Callao  have  produced  millions,  and  the  territory  of  the 
region  of  Guacipati  and  the  Upper  Uruari  was  the  cause  of  the 
boundary  dispute  between  Venezuela  and  Great  Britain  that  brought 
about  the  invocation  of  the  Monroe  Doctrine  by  President  Cleveland 
in  1895,  the  dispute  being  finally  settled  by  the  award  of  the  tribunal 
of  Paris  on  October  3, 1899. 

The  territory  may  also  be  said  to  include  the  southeastern  corner 
of  the  great  plains  of  Venezuela  lying  north  of  the  Orinoco  and  ex- 
tending as  far  as  Maturin  in  the  State  of  Monagas.  The  edge  of  the 
llanos  north  of  the  Orinoco  as  far  as  San  Fernando  de  Apure  may 
also  be  included,  as  the  river  furnishes  the  highway  of  communica- 
tion as  far  back  as  the  headwaters  of  the  largest  tributarv,  the  Rio 
Apure,  as  Guasdualito,  and  as  far  as  Cobaria  on  the  Rio  Arauca,  on 
the  Colombian  frontier  not  far  south  of  Cucuta. 

The  chief  products  of  this  region,  intensely  tropical  throughout, 
are  those  of  the  forests,  the  river  system  furnishing  the  means  oi 
access  and  transportation.  Next  in  potential  importance  comes  gold 
mining,  now  neglected  but  capable  of  yielding  great  wealth  with  the 
development  of  better  transportation  facilities  to  the  gold  fields, 

TOPOGRAPHY. 

The  great  plains  of  Venezuela  extend  from  the  foot  of  the  Venezu- 
elan Andes  on  the  west  to  the  delta  of  the  Orinooo  on  the  east,  a  dis- 
tance of  roughly  650  miles ;  the  northern  limit  is  the  line  of  the  Coast 
Range,  approximately  200  miles  north  of  the  Orinoco,  tke  river  form- ' 

278 


6S 


or 


Ch 


I 


CIXJDAD  BOLIVAR  COMMERCIAL  DISTRICT.  279 

ing  th«  dividing  line  between  the  northern  plains  and  those  to  the 
south  in  the  region  of  its  great  southern  tributaries,  the  Meta  and 
the  Arauca.  This  latter  territory  is  inaccessible  except  for  the  canoes 
of  the  rubber  hunters  in  the  season  of  high  water  in  the  rivers. 

^  The  delta  of  the  Orinoco,  a  separate  political  division  called  Delta 
Ainacuro,  extends  from  the  Rio  Vd-gre  (an  outlet  of  the  Orinoco, 
which  divides  the  northern  part  of  the  delta  from  the  plains  farther 
inland),  south  to  the  boundary  with  British  Guiana,  taking  in  the 
main  channel  of  the  Orinoco,  called  the  Carosimia,  which  is  navi- 
gable for  steamers  of  about  3,000  tons  as  far  as  Barrancas.  To  the 
north  of  the  Carosimia  there  are  five  principal  outlets  of  the  Ori- 
noco—-the  Rio  Vagre,  the  Rio  Cuscuina,  the  Rio  Pedernales  (con- 
nected with  the  Cuscuina),  the  Rio  Macareo,  and  the  Rio  Mariusas — 
all  flowing  into  the  Atlantic  south  of  Trinidad,  with  the  exception 
of  the  Vagre,  which  empties  into  Vagre  Bay  in  the  Golfo  Triste^ 
f  onned  by  the  Peninsula  of  Paria  and  the  Island  .of  Trinidad.  The 
straits  between  Trinidad  and  the  mainland  are  called  the  Serpent's 
Mouth,  on  the  south,  and  the  Dragon's  Mouth  at  the  northern  en- 
trance. 

The  delta  territory  covers  an  area  of  40,200  square  kilometers  (1 
square  kilometer =0.386  square  mile),  but  the  region  is  one  of  wide 
waterways  lined  with  dense  tropical  forests,  subject  to  overflow  in 
time's  of  high  water  and  interspersed  with  great  swamps.  The 
higher  lands  along  the  watercourses  are  inhabited  by  a  few  tribes 
of  Indians,  numbering  about  9,000,  who  live  by  gathering  the  prod- 
ucts of  the  forest  and  by  fishing.  The  delta  land  is  probably  the 
least  important  of  the  regions  pertaining  to  the  commercial  center 
of  Ciudad  Bolivar,  the  areas  to  the  south  and  up  the  Orinoco  being 
much  more  productive  from  a  commercial  standpoint. 

South  and  east  of  the  Orinoco  lie  the  Guiana  highlands,  which 
include  all  of  that  vast  and  more  or  less  unexplored  region  of  Vene- 
zuela lying  along  the  right  bank  of  the  Orinoco  and  around  its 
headwaters.  This  area  is  primarily  one  huge  plateau  about  1,000 
feet  or  more  in  height,  from  which  rise  a  few  of  the  principal  moun- 
tain ranges  with  some  peaks  over  8,000  feet  high,  while  smaller 
chains  of  hills  link  up  the  larger  ranges  or  mountain  groups.  The 
highest  ground  is  found  along  the  Brazilian  frontier,  beginning  at 
Mount  Koraima  (8,000  feet),  where  Venezuela,  Brazil,  and  British 
Guiana  come  together.  This  main  range  then  extends  to  the  south 
and  west,  in  the  Sierras  Pacaraima  and  Parima,  to  the  headwaters 
of  the  Orinoco  near  Esmeraldas,  in  the  southernmost  part  of  the 
Territory  of  Amazonas.  From  the  Roraima  Range  the  Orinoco- 
Cuyuni  watershed  extends  northward  within  Venezuela,  along  the 
Sierra  Rincote  and  Usupamo  and  the  highlands  of  Puedpa  to  the 
Sierra  Piacoa,  and  thence  southeast  along  the  Sierra  Imataca  to  the 
British  limits  again.  The  Sierra  Maigualida  forms  the  watershed 
between  the  Caura  and  the  Ventuari. 

The  entire  area  is  well  watered  by  the  upper  Orinoco,  which  flows 
here  from  south  to  north,  and  the  Rio  Ventuari  and  other  great 
tributaries,  the  Cuchivero,  Caura,  Aro,  Caroni,  and  their  affluents. 
Large  as  these  rivers  are,  they  are  so  broken  by  rapids  and  so  sub- 
ject to  alternate  floods  and  extreme  low  water  that  travel  along 
them  is  possible  only  in  small  canoes  and  other  portable  craft,  and 
even  then  their  passage  is  fraught  with  danger  and  delay. 


280     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

South  of  the  Orinoco  from  Ciudad  Bolivar  toward  the  Rio 
Paragua,  the  principal  affluent  of  the  Caroni,  there  are  scattered 
areajs  of  table-land  more  or  less  open  and  covered  with  long  grass. 
With  this  exception,  the  whole  enormous  region  of  about  204,600 
square  miles  is  covered  with  tropical  forest,  which  contains  much 
valuable  hardwood  timber,  rubber,  tonka  beans,  copaiba  balsam, 
Brazil  nuts,  and  many  less  known  products  of  the  South  American 
Tropics. 

Tne  Orinoco  rises  in  the  summits  of  the  Parima  Eange  in  the 
southern  part  of  Venezuela,  and  flows  northwest,  north,  and  north- 
east to  its  outlet  in  the  Atlantic  Ocean — a  course  of  about  1,500 
miles.  The  first  large  tributary  is  the  Rio  Ventuari,  which  comes 
from  the  northeast  in  Amazonas  Territory  and  forms  a  large  in- 
terior delta  as  it  joins  the  Orinoco.  Not  lar  beyond  this  point  the 
Eio  Atabapo  enters  the  Orinoco  from  the  south.  From  the  upper 
reaches  of  the  Ria  Negro  (there  called  the  Guainia),  a  tributary  of 
the  Amazon,  to  the  beginning  of  the  Atabapo  is  only  a  short  distance ; 
and  this  is  the  dividing  line  between  the  Orinoco  and  Amazon  water- 
sheds, the  Orinoco  being  connected  with  the  Rio  Negro  by  the  Casi- 
quiare  Canal,  which  is  navigable  for  light  canoes  during  the  rainy 
season.  Thus  it  is  possible  to  travel  by  canoe  from  the  mouth  of 
the  Orinoco  to  the  mouth  of  the  Amazon,  via  this  canal  and  the  Rio 
Negro,  In  fact,  the  trip  has  been  made  by  a  French  explorer,  'who 
spent  some  two  years  on  the  journey  and  whose  exploit  has  never 
been  equaled  except,  possibly,  by  those  of  the  early  adventurers  who 
navigated  the  Amazon,  crossing  from  the  Pacific  to  the  Atlantic  by 
the  nver. 

As  it  flows  north  from  its  junction  with  the  Atabapo,  the  Orinoco 
is  joined  from  the  west  by  the  Guaviare,  the  Vichada,  and  the  great 
Meta,  all  having  their  sources  in  the  Cordillera  Occidental  of  the 
Colombian  Andes.  Of  the  two  smaller  western  tributaries,  the 
Rios  Oapanaparo  and  Arauca,  the  latter  is  the  larger  and  more 
important,  as  it  is  navigable  during  high  water  for  small,  shallow- 
draft  launches  as  far  as  the  Colombian  border. 

From  the  Apure,  the  next  important  tributary,  to  the  ocean  the 
Orinoco  is  joined  on  the  south  by  the  Caura,  the  Aro,  and  the  Caroni. 
The  last-named  is  by  far  the  largest  and,  with  its  tributary,  the 
Paragua,  drains  the  entire  territory  from  the  boundary  with  Brazil 
along  the  mountain  ranges  of  Uriuana  and  Pacaraima.  On  the 
north  the  Orinoco  receives  the  waters  of  many  small  streams  that 
drain  the  great  plains ;  but  none  is  important  until  the  delta  country 
and  the  Rio  Vagre  are  reached. 

The  river  enters  the  sea  through  more  than  50  branches,  the  most 
important  of  which  are  the  Rio  Vagre  and  the  southernmost  channel, 
the  Carosimia.  The  waterway  is  navigable  for  steamers  of  about 
1 ,600  tons  as  far  as  Ciudad  Bolivar — ^by  the  Carosimia  to  Barrancas 
at  the  beginning  of  the  delta  and  thence  by  the  Orinoco. 

The  course  of  the  Orinoco  is  2,373  kilometers  (1  kilometer =0.62 
mile)  in  length,  and  it  is  navigable  for  1,930  kilometers  from  the 
Atlantic  Ocean.  River  steamers  of  60  tons'  burden  can  ascend  the 
Orinoco  from  Ciudad  Bolivar  to  San  Fernando  de  Apure  on  the 
Rio  Apure  during  the  season  of  high  water,  and  small  steamers 
follow  on  up  the  Apure,  the  Arauca,  and  the  Meta  nearly  as  far 


CIUDAD  BOLIVAR  COMMEECIAL  DISTRICT,  281 

again.  However,  there  are  rapids  that  constitute. an  impediment  to 
navigation  during  the  dry  season  of  the  year  (December  to  June) 
so  that  only  the  smallest  steamers  (less  than  40  tons'  burden)  can 
get  as  far  as  San  Fernando  and  these  only  with  difficulty. 

The  Eio  Apure  has  a  length  of  1,187  kilometers,  of  which  1,005  kilo- 
meters are  navigable.  The  territory  drained  by  this  river  and  its 
tributaries  covers  approximately  128,000  square  kilometers.  The 
Uribante  is  a  tributary  of  the  Apufe  that  rises  near  San  Cristobal, 
capital  of  the  State  of  Tachira,  and  flows  around  the  end  of  the 
Venezuelan  Andes  from  the  southern  slope  of  the  Maracaibo  western 
watershed.  Other  tributaries  are  the  Portuguesa  and  the  Guarico. 
The  Portuguesa  drains  the  great  area  south  of  Lake  Valencia  and 
Barquisimeto  and  joins  the  Apure  at* the  town  of  San  Fernando  de 
Apure.  The  Rio  Guarico  rises  near  Lake  Valencia  south  of  the 
Coast  Range  and  very  near  the  Caribbean  Sea.  This  river,  navigable 
for  small  canoes  as  far  as  the  town  of  Calabozo  in  the  wet  season, 
crosses  the  great  plains  of  Venezuela.  Along  its  headwaters  it  has 
the  aspect  oi  a  swift  mountain  stream  in  many  places ;  it  runs  through 
groups  of  hills,  which  form  the  inland  chain  of  the  Coast  Range, 
and,  according  to  present  plans,  is  to  provide  hydroelectric  power 
for  the  central  industrial  region  of  Venezuela. 

The  Guaviare  has  a  total  length  of  663  kilometers  and  drains  an 
area  estimated  at  37,280  square  kilometers.  The  Meta  is  902  kilo- 
meters long  and  is  navigable  for  almost  its  entire  length  in  the  season 
of  high  water.  It  drams  an  area  estimated  at  111,600  square  kilo- 
meters. The  Caroni  has  a  length  of  892  kilometers,  of  which  ap- 
proximately 782  kilometers  are  navigable  for  canoes.  The  drainage 
area  is  estimated  at  66,800  square  kilometers.  The  Cuyuni  and  its 
tributary,  the  Yuruari^  rise  in  the  Guiana  highlands  in  Venezuelan 
territory.  The  Cuyuni,  which  flows  into  the  Essequibo  near  George- 
town in  British  Guiana,  drains  a  very  large  area.  The  Rio  Negro 
drains  a  territory  in  Venezuela  calculated  at  100,000  square  kilo- 
meters, but  this  territory  is  a  part  of  the  great  Amazon  basin. 

Details  of  the  navigation  oi  the  Orinoco  River  system  are  given 
under  the  heading  "  Transportation." 

SURVEY  OF  TERRITORY  OP  AMAZONAS. 

As  the  territory  directly  tributary  to  Ciudad  Bolivar  will  be  de- 
scribed in  more  detail  later,  the  present  description  of  the  river  sys- 
tem need  include  only  a  general  survey  of  the  vast  and  little-known 
Territory  of  Amazonas,  which  lies  to  the  east  of  the  Orinoco  and  the 
Rio  Negro,  extending  as  far  north  as  the  confluence  of  the 
Rio  Meta  and  including  the  ill-defined  watershed  between  the  Ori- 
noco and  Amazon  basins.  The  area  included  in  this  territory  amounts 
to  about  281,700  square  kilometers  (1  square  kilometer=:0.386  square 
mile) ,  and  the  population,  as  estimated  in  December,  1917,  was  45,097, 
a  density  of  0.2  per  square  kilometer.  Of  this  enormous  region  prac- 
tically nothing  is  known,  save  the  character  of  the  country  along  the 
banks  of  the  principal  rivers  and  such  parts  of  the  hills  and  forests 
as  have  been  traversed  by  the  rubber  hunters  and  the  few  explorers 
who  have  penetrated  the  hinterland  of  the  Orinoco  and  the  Guianas. 


282     VENEZTJEtA :  A  COMMEECIAL  AKD  IITDUSTRIAIi  HANDBOOK, 

On  the  northern  and  eastern  borders  the  generarcharacter  of  this 
great  region  is  like  that  of  Bolivar.  To  the  south  the  Brazilian  fron- 
tier follows  the  watershed  of  the  Parima  Range  and  those  of  the 
Uriuana  and  Pacaraima  farther  to  the  east.  Leaving  the  southern 
extremity  of  the  Parima  Range,  the  Brazilian  line  strikes  southwest  to 
the  Rio  Negro,  this  line  not  being  marked  by  well-defined  natural 
features. 

The  center  of  this  huge  area  is  the  village  of  San  Fernando  de 
Atabapo,  situated  where  the  Orinoco,  Atabapo,  and  Guaviare  are 
joined.  The  place  is  little  more  than  a  collection  of  rubber-hunters' 
huts.  It  was  credited  with  a  population  of  about  400  in  the  last 
national  census  of  Venezuela,  but  it  is  the  largest  settlement  in  the 
entire  region  and  owes  its  existence  to  its  location  at  the  meeting 
point  of  three  waterways  and  its  proximity  to  a  fourth — ^the  Ven- 
tuari.  A  channel  connects  the  Atabapo  and  the  Orinoco  behind  the 
town,  making  it  practically  an  island ;  the  Imiridi  and  the  Guaviare 
enter  the  Atabapo  opposite  the  settlement,  the  contrast  between  the 
white  waters  of  the  (Juaviare,  the  blacky  clear  stream  of  the  Atabapo, 
and  the  muddy  Orinoco  being  very  noticeable.  San  Fernando  is  the 
capital  of  the  Territory  of  Amazonas  and  the  seat  of  the  governor,  the 
court  of  the  first  instance,  and  minor  offices,  whose  personnel  consti- 
tute an  appreciable  proportion  of  the  permanent  population. 

In  old  colonial  times  the  upper  Orinoco  basin  included  some  of  the 
best-known,  as  well  as  some  of  the  least-explored,  districts  of  the  en- 
tire territory.  The  old  Jesuit  mission  station  of  Esmeraldas  (longi- 
tude 65°  40'  W.;  latitude  3°  11'  N.)  marks  the  limit  of  the 
attempt  at  civilization.  Esmeraldas,  situated  above  the  Casiquiare 
Canal,  has  been  visited  in  modern  times  by  travelers,  and  the 
constant  explorations  of  the  rubber  prospectors  have  furnished 
some  information  about  the  river  and  its  immediate  neighborhood  as 
far  as  San  Fernando  de  Atabapo.  In  Humboldt's  time  Esmeraldas 
was  a  flourishing  settlement,  but  to-day  nothing  remains  but  a  few 
huts.  The  falls  of  Guahtaribo  are  about  120  miles  above  Esmeraldas ; 
but  the  ferocity  of  the  Guahtaribo  Indians  has  discouraged  explora- 
tion in  this  direction.  Only  one  man  has  ever  claimed  to  have  reached 
the  source  of  the  Orinoco. 

The  Atures  Rapids,  the  largest  on  the  Orinoco,  form  an  effectual 
barrier  to  through  steamer  communication  with  the  upper  river,  a 
difficulty  formerly  obviated  during  the  heyday  of  the  rubber  trade  by 
the  construction  of  the  now  disused  wagon  road  between  Pericos 
^Zamuro)  and  Salvajitos  above  the  rapids,  a  distance  of  14  kilometers 
(1  kilometer=0.62  mile). 

Humboldt  described  the  Atures  and  Maipures  Rapids  as  "  a  count- 
less number  of  small  cascades  succeeding  each  other  like  steps."  His 
description  continues: 

The  "raudal"  (the  Spanish  term  for  this  kind  of  waterfall)  is  formed  by 
an  archipelago  of  small  islands  and  rocks,  which  so  contract  the  bed  of  the 
river  that  its  natural  width  of  more  than  8,500  feet  is  often  reduced  to  far 
less,  the  navigable  channel  being  only  20  feet  in  width.  At  the  present  day  the 
eastern  side  is  far  less  accessible  and  far  more  dangerous  than  the  western. 

It  was  \^th  surprise  that  the  fall  of  the  Rapids  of  Maipures  was  found  to 
be  only  30  or  32  feet ;  the  foaming  surface  several  miles  in  length  is  intersected 
by  masses  of  black  rock  crowned  with  trees. 


CIXTDAB  BOLIVAR  COMMERCIAL  DISTRICT.  283 

A  canal  might  be  opened  between  the  Cameji  and  the  Toparo,  which  would 
become  a  navigable  arm  of  the  Orinoco,  and  supersede  the  dangerous  bed  of 
the  river. 

The  raudal  of  Atures  is  exactly  similar  to  that  of  Maipures,  consisting  of 
a  cluster  of  islands,  between  which  the  river  forces  its  passage  for  some 
18,000  to  24,000  feet.  ♦  ♦  ♦  Rocks,  lilje  dikes,  connect  one  island  with 
another.  In  one  place  the  water  shoots  over  these  dikes,  at  another  it  falls  into 
their  cavities  with  a  deafening  hollow  sound.  In  some  places  <:ertain  portions 
of  the  river  bed  are  dry,  in  consequence  of  the  stream  having  opened  for  itself 
a  subterranean  passage. 

The  old  Compaiiia  de  Navegaci6n  Fluvial  y  Costaiiera  concession 
provided  for  the  construction  of  a  steam  or  electric  railway  to  pro- 
vide a  land  connection  between  a  proposed  service  of  Upper  River 
steamers  and  those  of  the  Lower  River  below  Atures. 

On  the  right  bank  of  the  Orinoco  above  the  rapids,  in  the  region 
of  the  small  rivers  Sipapo  and  Cataniapo,  are  the  hills  forming  the 
watershed  between  these  rivers  and  the  V  entuari.  In  this  region 
live  the  Piaroa  Indians;  the  term  appears  to  be  a  general  one,  in- 
cluding branches  of  the  Maipures,  Atures,  and  other  tribes.  The 
country  inland  is  unexplored. 

Near  the  river  and  at  intervals  throughout  the  regions  are  found 
grassy  plains,  or  savannahs,  and  in  the  forest  surrounding  these  open 
places  are  vast  numbers  oi  rubber  trees  {Hevea  guianensis  and  H, 
hrasiliensis).  The  wild  rubber  has  been  exploited  to  some  extent, 
not  always  with  proper  method,  but  the  prodiiction  of  the  district  is 
far  below  its  possibilities.  Cultivated-rubber  plantations  do  not 
exist.  The  lack  of  development  is  due  to  the  lack  of  population; 
all  the  available  labor  works  at  rubber  gathering  in  season.  Near 
San  Fernando  de  Atabapo  there  exists  a  small  Brazil-nut  (Bertho- 
lettia  exeelsa)  plantation,  but  enormous  quantities  of  nuts  rot  on 
the  ground  in  the  forest.  There  are  also  wild  cacao  groves  along 
the  river  in  several  places. 

Mineral  resources  are  also  said  to  exist.  Indians  show  samples  of 
copper,  iron,  manganese,  and  even  gold.  The  rocks  of  the  exposed 
places  in  the  falls  show  mineralization  signs  in  many  places.  Cop- 
per is  reported  on  the  river  bank  below  Pericos. 

The  46  miles  of  clear  water  between  the  falls  of  Maipures  and 
Atures  is  navigable  for  steamers  during  the  greater  part  of  the 
year.  Above  Maipures  there  is  no  serious  hindrance  to  navigation, 
even  through  to  the  Amazon  by  way  of  the  Casiquiare  Canal  to  the 
Rio  Negro. 

The  Ventuari  is  the  largest  of  the  tributaries  of  the  upper  Orinoco, 
yet  some  300  miles  of  the  stream  are  unknown  to  white  men.  As  far 
as  the  valley  has  been  explored,  alternating  forests  and  grass-covered 
plains  are  to  be  found.  Scientists  claim  that  the  geological  forma- 
tion of  the  entire  region  to  the  east  is  the  same  as  that  of  the  Guiana 
highlands,  the  floor  being  of  the  same  granite  as  that  of  the  Roraima 
Hills  and  the  Callao  gold  fields.  It  seems  justifiable  to  suppose  that 
the  same  pre-Cambriah  sediments  formed  the  mountains,  and  it 
may  be  found  that  Mount  Duida,  which  is  visible  to  the  northeast 
from  Esmeraldas,  and  the  ranges  toward  the  Guianas  are  pierced  by 
those  dikes  and  sills  which  elsewhere  in  the  Guianas  are  often  ac- 
companied by  gold  and  other  ores.  In  the  old  colonial  days  a  trail 
ran  from  Esmeraldas  to  the  Lower  Orinoco  by  way  of  the  Caura; 


284     VENEZUELA:  A  COMMERCIAL  AKD  INDUSTRIAIi  HANDBOOK. 

the  route  lay  up  the  Padamo  and  then  across  the  headwaters  of  the 
Ventuari  to  the  source  of  the  Erewato,  a  tributary  of  the  Caura. 
Along  this  road  the  Spaniards  maintained  a  chain  oi  forts  for  a  dis- 
tance of  50  leagues.  A  runner  could  make  the  distance  from  Esmer- 
aldas  to  the  mouth  of  the  Erewato  in  12  days. 

At  the  point  where  the  Rio  Guainia  forms  the  Rio  Negro,  as  the 
stream  is  called  on  the  Amazon  side  of  the  low  watershed,  is  the 
village  of  Maroa,  the  seat  of  government  of  the  Rio  Negro  district. 
The  Guainia  being  a  deep,  clear  ("  black  ")  stream,  the  sky  cloudless, 
and  mosquitoes  absent,  the  climate  is  fairly  good.  The  forests  of 
the  Guainia  and  the  Rio  Negro  are  comparatively  little  known,  but 
some  rubber  is  collected  along  their  banks.  The  old  settlement  of 
San  Carlos  on  the  Rio  Negro  below  the  junction  of  the  Casiquiare 
Canal  is  now  abandoned,  and  there  are  no  settlements  before  the  hill 
known  as  the  Cerro  del  Cucuhy,  which  marks  the  Brazilian  frontier, 
is  reached. 

During  the  old  days  of  the  rubber  trade,  this  vast  region  was  better 
known  and  more  developed  than  it  is  to-day.  Venezuela  has  great 
areas  still  undeveloped  along  the  Caribbean  seaboard  for  which  the 
Government  is  endeavoring  to  attract  European  immigration.  It  is 
doubtful  whether  the  great  Orinoco  country  will  be  developed,  unless 
some  gold  strike  should  attract  prospectors  and  miners,  as  was  the 
case  with  Alaska.  Any  attempt  at  settlement  would  involve  great 
hardships,  on  account  of  the  heat,  insect  pests,  etc.,  to  say  nothing  of 
transportation  difficulties.  Under  present  conditions,  the  rubber 
gatherers  retire  down  the  river  to  the  settlements  and  to  Ciudad 
Bolivar  between  seasons,  and  the  permanent  population  is  very  small. 
(For  a  more  detailed  account  of  the  conditions  in  the  Orinoco  River 
basin,  see  the  section  on  rubber,  p.  309.) 

CLIMATE— FLOOD  STAGES  OF  LOWER  ORINOCO. 

The  hydrographical  and  meteorological  station  at  Ciudad  Bolivar 
has  rendered  excellent  service  in  the  collection  of  climatic  data  dur- 
ing the  last  few  years.  The  maximum  temperature  (average)  in 
the  shade  is  32.2°  C.  (92°  F.)  with  40.5°  C.  (105°  F.)  in  the  sun. 
The  minimum  temperature  averages  24°  C.  (75.2°  F.)  in  the  shade. 
The  relative  humidity  is  87°  to  91°.  The  prevailing  wind  is  the 
northeast  trade,  without  which  the  region  would  become  almost  un- 
inhabitable. 

The  average  flood  height  on  the  Orinoco  is  12.36  meters  (1  meter= 
3.28  feet)  for  the  year  at  Ciudad  Bolivar;  the  highest  monthly 
average  being  2.18  meters,  registered  usually  in  the  months  of  July, 
August,  and  Sejptember,  during  the  heaviest  part  of  the  annual 
rainy  season,  which  begins  in  April.  The  most  rapid  rate  of  flood 
is  0.25  meter  per  hour,  and  the  average  0.15  meter  per  hour.  From 
October  to  December  the  waters  gradually  recede,  the  average  rate 
of  recession  being  0.056  meter  per  day  and  the  highest  rate  O.U 
meter  per  day.  The  highest  monthly  rate  of  flood  (4.39  meters) 
occurred  in  May,  1916. 

It  is  known  that  heavy  rains  occur  in  the  remote  regions  of  the 
upper  Orinoco  much  earlier  than  at  Ciudad  Bolivar.  Flood  waters 
have  been  received  at  Ciudad  Bolivar  in  April,  so  it  was  concluded 


OITJDAD  BOLIVAK  COMMERCIAL  DISTRICT.  285 

that  heavy  precipitation  had  occurred  in  March  in  Amazonas  Ter- 
ritory. 

GENERAL  SURVEY  OF  STATE  OF  BOLJVAR. 

Much  of  what  has  been  said  of  the  Territory  of  Amazonas  would 
apply  to  the  general  description  of  the  Federal  State  of  Bolivar. 

The  Orinoco  forms  the  northern  boundary  of  the  State,  separating 
it  from  the  more  northern  States  of  Monagas,  Anzoategui,  and  Gua- 
rico.  The  southern  boundary  line  is  that  with  Brazil  and  the  Fed- 
eral Territory  of  Amazonas.  The  boundary  on  the  east  is  the  Fed- 
eral Territory  of  Delta  Amacuro,  and  British  Guiana;  and  on  the 
west,  the  State  of  Apure  and  the  Federal  Territory  of  Amazonas. 
According  to  the  official  data  published  in  October,  1916,  the  popula- 
tion of  Bolivar  was  68,757  and  the  total  area  is  238,000  square 
kilometers  (1  square  kilometer =0.386  square  mile),  giving  a  density 
of  population  of  0.3  per  square  kilometer.  The  State  of  Bolivar  and 
the  Territory  of  Amazonas  are  by  far  the  largest  of  the  Venezuelan 
political  divisions. 

The  State  of  Bolivar  is  divided  into  5  districts  and  18  municipali- 
ties. The  town  of  Caicara  is  the  capital  of  the  district  of  Cedeno. 
It  has  about  1,200  inhabitants  and  is  situated  on  the  right  bank  of 
the  Orinoco,  346  kilometers  (1  kilometer =0.62  mile)  from  Ciudad 
Bolivar.  The  population  of  the  district  is  3,847.  The  largest  district 
in  population  is  that  of  the  capital  of  the  State,  Ciudad  Bolivar,  with 
21,582  people,  according  to  the  national  census  of  1891.  Upata  is  the 
capital  of  the  district  of  Piar,  with  more  than  10,000  people.  Upata 
is  situated  in  the  interior,  distant  90  kilometers  from  the  port  of  San 
Felix  (on  the  Piacoa  Channel,  south  of  Barrancas).  The  town  has 
a  population  of  about  5,000  people,  and  is  on  the  overland  route  to 
the  El  Callao  gold  fields  and  Guacipati.  Guacipati  is  the  capital  of 
the  district  of  Koscio,  which  has  about  13,000  inhabitants.  Moitaco 
is  the  capital  of  the  district  of  Sucre,  which  has  about  8,000  inhabi- 
tants. It  is  situated  on  the  right  bank  of  the  Orinoco  not  far  above 
Ciudad  Bolivar  in  the  region  of  the  great  Sicapra  Mesas  that  lie  on 
the  north  shore. 

The  other  principal  towns  of  the  State,  all  of  which  are  commer- 
cially tributary  to  Ciudad  Bolivar,  are  Tumeremo,  El  Callao,  El  Pal- 
mar, and  San  Felix.  Tumeremo,  in  the  district  of  Roscio,  distant  270 
kilometers  overland  from  San  Felix,  has  a  population  of  6,000.  The 
town  is  located  on  the  Yuruari  River  to  the  south  of  the  El  Callao 
gold  fields  and  is  of  greater  importance  than  Guacipati.    Its  trade  is 

Srincipally  with  Georgetown  in  British  Guiana  via  the  Yuruari 
iver.  El  Callao  grew  up  around  the  gold  mines  when  these  were 
being  worked  extensively  20  years  and  more  ago.  It  now  has  about 
2,000  people,  their  occupation  being  principally  gold  mining  and 
placer  washing  on  a  small  scale.  El  Palmar  in  the  district  of  Piar, 
180  kilometers  overland  from  San  Felix,  has  a  population  of  about 
1,500.  San  Felix  is  a  port  of  entry  only,  situated  on  the  Orinoco  at 
the  point  of  junction  of  the  Caroni,  110  kilometers  below  Ciudad 
Bolivar.    The  place  has  a  population  of  about  1,000. 

As  an  interesting  comparison  of  the  size  of  the  State  of  Bolivar,  of 
Venezuela,  it  may  be  mentioned  that  it  covers  about  the  same  area  as 
Portugal,  Greece,  and  Denmark  combined.    These  countries  have  a 


286     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

population  of  about  15,000,000;  the  <State  of  Bolivar  has  less  than 
70,000. 

The  capital,  Ciudad  Bolivar,  or  Angostura  (latitude  8°  8'  52''  N. ; 
longitude  63°  33'*  17"  W.),  fourth  in  importance  of  Venezuelan  ports, 
is  situated  on  the  right  bank  of  the  Orinoco,  370  kilometers  by  river 
from  Barimas  Point  (Mocomoco  Point)  at  the  entrance  frpm  the 
sea  to  the  Carosimia  channel  of  the  Orinoco.  The  elevation  above 
sea  level  is  36  meters  (1  meter=3.28  feet). 

CIUDAD  BOLIVAR. 

The  national  census  of  1891  gave  Ciudad  Bolivar  a  population  of 
17,535;  the  estimated  population  on  June  30,  1915,  was  given  offi- 
cially as  21,595.  This  number  included  the  entire  popiUation  of 
the  municipality,  the  city  proper  containing  possibly  15,000  people. 
It  is  estimated  that  about  6,000  men  are  engaged  in  the  rubber  and 
forest-products  industry  for  which  Ciudad  JBolivar  is  the  head- 
quarters, and  these  men,  or  most  of  them,  make  their  homes  in  the 
city  during  the  period  between  seasons  in  the  forests.  Work  in  the 
forests  is  carried  on  during  the  wet  season  of  the  year,  from  April 
to  October.  The  same  season  applies,  for  the  most  part,  to  the  work 
in  the  gold-bearing  rivers  and  reefs.  The  two  industries  are  the 
basis  of  the  commercial  activity  of  the  district. 

The  f orei^  colony  of  Ciudad  Bolivar  includes  many  nationalities 
of  widely  different  character  and  origin.  The  merchants  are  mostly 
Corsicans,  Germans,  and  Syrians,  with  a  few  Italians.  The  peon 
element  and  small  rubber  or  chicle  contractors  are  represented  by 
Venezuelans  from  the  district  of  Roscio,  State  of  Bolivar  (a  very 
small  number) ,  from  far-away  Maracaibo,  Caracas  and  the  Federal 
District,  from  the  Valencia  district,  and  from  the  eastern  Venezuelan 
seaboard  and  Cristobal  Colon  region.  There  are  also  Negroes  from 
the  West  Indies  (principally  Trinidad) ,  East  Indian  coolies,  Negroes 
from  British  and  Dutch  Guiana,  and  a  sprinkling  of  Syrians, 
Italians,  and  Corsicans. 

The  whole  business  element  is  actuated  by  the  spirit  of  adventure, 
stimulated  by  the  far  horizon  of  the  great  hinterland  of  the  Orinoco. 
As  a  result  of  a  rich  "  strike  "  on  some  hitherto  unknown  gold-bear- 
ing stream,  or  a  good  season  in  rubber  or  chicle,  after  the  discovery 
of  a  new  natural  plantation  of  the  trees,  a  small  fortune  majr  be 
made  in  a  few  months.  The  well-known  method  of  "  grubstaking  " 
has  been  adopted  by  the  merchants,  and  by  means  of  it  they  control 
tiie  output  of  forest  and  placer  products.  Together  with  the  great 
risk  of  loss  goes  the  factor  of  large  margin  of  profit  and  the  chance 
of  enormous  gains  at  one  stroke. 

Needless  to  say,  this  spirit  of  adventure  is  not  conducive  to  con- 
structive nor  conservative  methods;  it  leads  rather  to  exploitation 
for  immediate  greater  gain.  Ciudad  Bolivar  may  be  likened  to  a 
Western  mining  camp  in  a  mining  rush ;  only  over  it  hang  the  heat 
and  humidity  of  the  Tropics. 

Founded  in  1764  by  the  then  governor  of  the  Orinoco  Province, 
the  city  is  located  on  a  granite  hill  118  feet  above  sea  level,  on  the 
right  bank  of  the  Orinoco.  The  original  name  was  San  Thome  de 
la  Nueva  Guayana,  to  distinguish  the  place  from  Guayana  Vieja 
down  the  river.    This  name  was  later  changed  to  Angostura  from 


CIXJDAD  BOLIVAR  COMMEEOIAIi  DISTRICT.  287 

the  fact  that  the  river  here  narrows  down  to  800  meters,  thereby 
causing  the  rise  in  the  river  to  be  most  felt  at  this  point  in  the  rainy 
season.  There  is  a  gradual  descent  from  the  high  ground  behind 
the  town  to  the  waterfront,  where  there  is  a  good  street  recently 
paved  and  modernized  by  the  progressive  State  government.  This 
thoroughfare  is  the  principal  business  and  residence  street.  During 
the  day  the  granite  formation  on  which  the  town  is  built  seems  to 
absorb  the  heat,  rendering  the  atmosphere  very  oppressive  during 
the  night.  The  mean  a'nnual  temperature  is  86.6°  F.  With  the 
exception  of  San  Fernando  de  Apure,  shut  in  by  its  surrounding 
hills,  Ciudad  Bolivar  is  the  hottest  place  in  Venezuela. 

The  customs  district  of  Ciudad  Bolivar  includes  the  ports  of  San 
Felix,  formerlv  called  Puerto  Tablas;  Barrancas,  about  80  miles 
below  Ciudad  Bolivar  near  the  Rio  Vagre  outlet ;  Tucupita,  on  the 
Eio  Vagre ;  Soledad,  ^st  opposite  Ciudad  Bolivar,  on  the  Orinoco ; 
and  Uracoa,  on  the  river  oi  that  name,  a  branch  of  the  Rio  Vagre, 
this  place  being  more  or  less  tributary,  commercially,  to  Barrancas. 
Barrancas  and  San  Felix  are  ports  for  exports  only,  all  imports  be- 
ing cleared  at  Ciudad  Bolivar  and  distributed  by  river  traffic  from 
there.  All  the  ports  named  are  ports  of  both  inward  and  outward 
shipment  for  coastwise  traffic.  A  special  permit  is  required  to  allow 
passengers  to  disembark  at  any  of  these  ports  without  first  having 
visited  Ciudad  Bolivar.  Prior  to  the  decree  of  July  1,  1917,  Bar- 
rancas and  San  Felix  were  ports  of  both  import  and  export.  It 
takes  8  hours  by  steamer  each  way  to  go  from  San  Felix  to  Ciudad 
Bolivar,  and  9  to  10  hours  from  Barrancas. 

Port  of  Spain,  Trinidad,  is  the  point  of  transshipment*  in  and  out, 
and  more  Ciudad  Bolivar  business  is  transacted  there  than  in  the 
capital  of  the  country,  on  account  of  its  greater  proximity  and  more 
rapid  means  of  communication. 

Ciudad  Bolivar  has  an  electric-lighting  plant,  an  ice  plant  in  con- 
nection with  a  brewery  (Cerveceria  de  Cfiudad  Bolivar),  one  club 
(Club  del  Comercio),  two  hotels,  two  garages,  six  drug  stores,  one 
printing  establishment,  and  one  newspaper.  El  Luchador.  At  the 
time  of  this  investigation,  eight  lawyers,  three  dentists,  and  ten 
doctors  constituted  its  professional  personnel.  A  river  dyke  has 
been  built  for  the  protection  of  the  exposed  side  of  the  town  from 
the  river,  new  intercommunication  bridges  have  been  constructed,  and 
the  principal  street  has  been  repaved  with  cement.  Attention  is  also 
being  given  to  more  work  on  the  country  roads.  Upata  has  two  auto- 
mobile transport  concerns  engaged  in  overland  passenger  traffic 
during  the  dry  season  between  San  Felix,  El  Palmar,  Guacipati,  and 
El  Sallao.  There  are  about  60  light  automobiles  in  use  in  and  about 
the  capital,  and  cars  can  be  obtained  for  trips  across  the  country. 

RIVER  PORT  OF  SAN  FELIX. 

The  river  port  of  San  Felix,  called  Las  Tablas,  is  situated  on  the 
right  bank  of  the  Orinoco  just  below  the  mouth  of  the  Caroni,  about 
80  miles  below  Ciudad  Bolivar,  and  is  the  port  of  entry  for  the  most 
populous  districts  of  the  State,  lying  east  of  the  Caroni;  i.  e.,  Heres, 
Piar,  and  Roscio.  From  here  the  wagon  trains  climb  the  plateau 
behind  the  town  and  travel  overland  90  kilometers  (1  kilometer= 
0.62  mile)  to  Upata,  from  there  150  kilometers  to  Guacipati,  capital 


288     VENEZUELA:  A  COMMERCIAL*  AND TNTDUSTRIAIi  HANDBOOK. 

of  the  district  of  Eoscio ;  from  there  25  kilometers  to  El  Callao ;  and 
from  there  60  kilometers  to  Tumeremo — a  total  distance  of  325 
kilometers.  The  route  passes  through  numerous  small  villages  and 
towns,  of  which  those  named  are  the  largest. 

San  Felix  has  its  customhouse,  a  hotel,  and  a  telegraph  office.  The 
customs  administration  is  under  Ciudad  Bolivar  jurisdiction.  The 
freight  paid  in  San  Felix  for  transport  to  and  from  the  interior 
points  named  amounts  to  more  than  $200,000  annually,  and,  in  the 
boom  times  of  the  El  Callao  gold  fields,  it  reached  approximately 
$1,000,000.  The  British  Government  maintains  a  consular  agency  at 
San  Felix. 

FALLS  OF  THE  CARONI—WATER-POWER  RIGHTS  AND  RELATED 

PROJECTS. 

The  falls  of  the  Caroni,  near  San  Felix,  have  been  famous  since  the 
days  of  Raleigh.  The  river  comes  from  the  slopes  of  the  Sierra 
Pacaraima,  on  the  boundary  with  Brazil^  and  travels  as  a  compara- 
tively quiet  stream  until  very  near  its  junction  with  the  Orinoco. 
The  falls  have  a  sheer  drop  of  60  feet  over  polished  granite  and 

f  resent  enormous  possibilities  for  hydroelectric-power  development, 
n  December,  1919,  the  Venezuelan  Minister  of  Fomento  (Develop- 
ment) agreed  to  grant  a  concession  to  an  American  for  the  water- 
power  rights  of  the  falls  of  the  Caroni  and  for  the  construction  of 
an  electric  railway  from  the  Orinoco  to  the  El  Callao  gold  fields. 
The  matter  was  submitted  for  approval  at  the  1920  mid-year  meet- 
ing of  the  Venezuelan  Congress,  but  the  failure  of  the  prospective 
concessionaire  to  appear  or  to  provide  for  adequate  representation 
caused  the  matter  to  be  postponed  indefinitely. 

Much  might  be  said  in  favor  of  this  scheme  solely  as  a  local  de- 
velopment ;  the  most  attractive  feature,  however,  is  the  evident  pos- 
sibility of  opening  the  practically  abandoned  El  Callao  gold  fields. 
From  1871  to  1892,  when  it  became  involved  in  endless  litigation,  the 
El  Callao  Co.  (English)  paid  £1,933,288  ($9,408,346)  in  dividends. 
In  1884  it  extracted  177,055  ounces  of  gold.  There  is  every  reason  to 
believe  that  the  region  contains  vast  mineral  wealth  in  gold-bearing 
gravel,  sands,  and  reefs. 

Outside  of  the  tropical  climate  the  country  to  be  crossed  presents 
no  difficulties  to  the  railway  builder  except  a  few  low  places  that 
are  flooded  during  the  wet  season.  In  the  dry  season  the  trip  has 
been  made  by  automobile  from  El  Callao  to  Ciudad  Bolivar,  via  the 
crossing  at  Guri  (also  spelled  Gury)  on  the  Caroni  above  the  falls, 
in  12  hours'  running  time.  A  narrow-gauge  line  would  not  prove 
costly  to  construct.  The  initial  investment  for  the  power  plant  at 
the  falls  would,  of  course,  be  high,  but  the  power  could  be  utilized 
at  the  mines,  where  enormous  areas  of  low-grade  gold-bearing  ores 
are  known  to  exist.  The  Caroni,  and  its  main  tributary,  the  Fara- 
gua,  have  gold-bearing  sands  also,  and  there  are  many  scattered 
mining  districts  where  hundreds  of  men,  women,  and  children  make 
their  living  by  washing  for  gold  in  small  quantities,  employing  the 
most  primitive  methods. 

On  account  of  the  tropical  climate,  any  undertaking  of  this  nature 
would  have  to  be  carried  out  on  a  scale  sufficient  to  permit  the  estab- 
lishment of  sanitary  camps  with  modern  medical  equipment. 


CIUDAD  BOLIVAB  COMMERCIAL  DISTRICT.  289 

The  Government  is  well-disposed  toward  any  project  to  develop 
transportation  and  mining  in  this  region.  Moreover,  the  forests, 
not  yet  exploited  on  account  of  the  excessive  cost  of  transportation 
of  foodstuffs  in,  and  products  out  to  the  river,  would  be  made  more 
accessible  and  the  work  stimulated.  There  is  also  the  possibility  of 
live-stock  development.  Fairly  large  steamers  of  1,500  and  2,000 
tons  come  up  the  river  as  faf  as  Ciudad  Bolivar  to  load  live  beef 
cattle  for  French  Guiana,  and  there  is  an  increasing  market  in  near- 
by Trinidad  and  also  in  Uuba  and  Porto  Rico.  (See  also  section  on 
"  JLabor  conditions.") 

To  large  companies  interested  in  developing  large  bodies  of  low- 
grade  ores  this  region  presents  an  opportunity  worthy  of  careful 
study  and  appraisement.  There  are  great  deposits  of  high-grade 
iron  ore  farther  down  the  river  at  Imataca,  easily  approachable  for 
steamers  of  3,000  tons'  burden. 

TRANSPORTATION. 

There  are  no  railways  in  the  Ciudad  Bolivar  district.  The  Ori- 
noco River  and  its  tributaries  form  the  principal  means  of  com- 
munication to  and  from  the  great  area  of  the  interior. 

RIVER  TRANSPORTATION. 

In  Venezuela  and  Colombia  a  ^navigable  "  body  of  water  is  not 
always  navigable  for  power  vessels;  it  may  be  navigable  only  for 
the  dugout  canoe  of  the  natives,  and  that  very  often  only  at  high 
water,  during  and  following  the  rainy  season  of  the  year.  Under 
such  interpretation  there  are  few  streams  of  the  entire  Orinoco  sys- 
tem that  are  not  navigable  for  greater  or  less  distances. 

Steamer  service  is  maintained  by  the  Compaiiia  Anonima  Vene- 
zolana  de  Navegaci6n.  The  old  company,  the  Compaiiia  de  Nave- 
gacion  Fluvial  y  Costanera,  was  sued  by  the  Government  in  1916  for 
noncompliance  with  contract,  the  Government  claiming  that  the  com- 
pany had  failed  to  clean  out  certain  channels  and  do  specified  dredg- 
ing work  in  Lake  Maracaibo  and  certain  rivers,  and  that  the  vessels 
of  the  company  failed  to  fulfill  conditions  of  adequate  service.  The 
old  company  had  two  ocean-going  steamers  in  the  coastwise  trade, 
two  steam  shallow-draft  launches  on  the  Orinoco,  and  five  steamers 
and  auxiliary  vessels  on  Lake  Maracaibo.  Under  the  old  concession 
the  Government  paid  the  company  a  monthly  subsidy  of  20,000 
bolivars  ($3,860),  and  it  enjoyed  the  exclusive  right  of  navigation 
and  steamer  service  on  Lake  Maracaibo  and  the  Orinoco  River  and 
along  the  coast.  Following  the  suit  by  the  Government  the  company 
was  reorganized  and  renamed. 

Besides  the  vessels  of  the  coastwise  and  Lake  Maracaibo  fleets, 
those  of  the  Orinoco  service  are  as  follows:  Delta  (309  tons),  service 
between  Port  of  Spain,  Trinidad,  and  Ciudad  Bolivar,"  weekly ;  river 
steamer  Apure  (191  tons)  and  river  steamer  Alian&a  (147  tons),  both 
operating  between  Ciudad  Bolivar  and  San  Fernando  de  Apure  on 
a  more  or  less  regular  schedule;  river. steamer  Arauca  (71  tons) ; 
river  steamer  Amparo  (41  tons) ;  and  river  steamer  Boy  oca  (31  tons) , 
all  operating  from  Ciudad  Bolivar  up  the  Orinoco  and  its  tributaries. 
There  is  also  the  auxiliary  pontoon  Vencedor^  used  as  a  repair  shop, 
etc. 

79747'— 22 ^20 


290     VENEZUELA :  A  COMMEAGIAL  AKD  INDUSTRIAL  HANDBOOK. 

The  Orinoco  route  proper  takes  in  the  following  towns:  Palmar, 
Moitaco,  Maria  Luisa,  Mapire,  Las  Bonitas,  Caicara,  and  Cabruta* 
The  first  port  of  call  on  the  Apure  is  the  village  of  Aricuna ;  then 
follows  San  Fernando  de  Apure,  the  most  important  settlement  in 
the  entire  territory  above  Ciudad  Bolivar.  On  the  Apure  follows 
Apurito,  at  the  junction  with  the  Rio  Apurito,  really  a  continuation 
of  the  Guarico;  then  Catalina,  the  river  shipping  point  for  distant 
Guanare,  capital  of  the  State  of  Portuguesa;  then  Puerto  Nutrias, 
the  second  town  of  importance  next  to  San  Fernando  de  Apure; 
then  Palmarito ;  and,  last  of  all,  Guasdualito,  at  the  head  of  steamer 
navigation  on  the  Rio  Apure.  This  route  covers  more  than  500  miles 
of  river  navigation.  The  upper  reaches  of  the  Apure  are  traveled 
only  by  three  small  river-type  boats  in  the  wet  season  when  there  is 
sufficient  water.  Frequent  rapids,  rocks,  sand  and  mud  bars,  and  the 
changing  course  of  the  river  make  traffic  extremely  slow  and  tedious 
and  also  costly.  On  account  of  the  difficulties  of  navigation,  the 
irregularity  of  the  freight  oflFerings  (which  are  greatly  dependent 
upon  seasonal  conditions),  and  other  factors,  a  regular  schedule  is 
impossible. 

Continuous  service  is  maintained,  except  in  years  of  unusual  low 
water  in  the  Orinoco,  from  Ciudad  Bolivar  to  San  Fernando  de 
Apure,  and  up  the  Orinoco  as  far  as  the  Rio  Meta. 

The  lower  Orinoco  division  inokides  the  seasonal  navigation  of  the 
Rios  Cojedes,  Portuguesa,  Guanare,  and  Arauca.  The  Rio  Portu- 
guesa division  begins  at  the  entrance  of  the  Portiiguesa  just  opposite 
San  Fernando  de  Apure  at  Puerto  Miranda.  The  first  village  is 
Camaguan,  then  La  Union,  at  the  junction  of  the  Guanare  Viejo; 
then  Guadarrama,  at  the  junction  of  the  Rio  Guanarito  Viejo.  Half- 
way between  Guadarrama  and  El  Baul  the  Rio  Portuguesa  turns 
sharply  to  the  west  and  navigation  follows  on  up  the  Rio  Cojedes  as 
far  as  El  Baul.  Starting  at  La  Union,  on  the  Portuguesa,  the 
Guanare  is  navigable  as  far  as  Arismendi.  The  Portuguesa  is  also 
navigable  above  Guadarrama,  passing  Florida,  to  San  Lorenzo, 
distant  only  22  miles  overland  from  the  capital,  Guanare;  and  it  is 
over  this  route  that  most  of  the  products  of  the  district,  principally 
tobacco,  are  shipped  out  to  market  in  Ciudad  Bolivar.  The  Rio 
Arauca  division  begins  at  Alcala,  the  river  stations  being  San 
Rafael,  Yagual,  Chiricoa,  El  Viento,  and  Amparo.  The  last  named 
is  an  important  river  port  at  the  head  of  steamer  navigation  on  the 
Arauca.  It  lies  just  south  of  Guasdualito  on  the  Apure,  and,  like 
the  Apure,  receives  trade  by  canoe  traffic  from  the  Colombian  border. 

The  next  tributary  of  the  Orinoco,  included  in  the  upper-river 
division  of  navigation,  is  the  Rio  Capanaparo,  navigable  as  far  as 
the  small  villages  of  Lagunola  and  San  Francisco.  The  Meta  is 
navigable  as  far  as  Apostadero,  to  which  place  steamers  from  Ciudad 
Bolivar  ascend  for  rubber  and  hides.  The  last  station  on  the 
upper  Orinoco  is  Pericos  (Zamuro),  just  below  the  falls  or  rapids  of 
Atures. 

River  transportation  is  a. matter  of  seasons  and  the  condition  of 
the  rivers.  From  June  to  November  the  larger  river  steamers,  carry- 
ing cargo  of  about  150  tons,  operate  regularly  between  Ciudad  Boli- 
var and  San  Fernando  de  Apure,  the  upstream  journey  taking  10 
days  and  the  downstream  trip  6  days,  as  a  rule.    The  time  of  travel 


CIUDAD  BOLIVAR  OOMMEEOIAL.  DISTRICT.  291 

on  the  tributaries  can  not  be  consistently  recorded,  since  the  smaller 
30  and  40  ton  stern-wheel  launches  pick  up  freight  and  passengers 
when  and  where  offered,  much  time  is  lost  loading  wood  for  fuel, 
and  the  rivers  themselves  often  present  impediments  to  navigation, 
such  as  sand  bars,  mud  banks,  and  tree  snags,  the  pilots  being  obliged 
to  follow  the  drift  of  the  current.  The  channels  change  with  every 
flood  season,  and  the  boats  can  not  run  at  night  except  on  the  lower 
river  below  San  Fernando.  The  two  small  launches  operate  as  far 
up  as  San  Fernando  de  Apure  during  almost  the  entire  year.  Ac- 
tivity on  the  upper  reaches  of  the  Orinoco,  Apure,  Arauca,  Meta, 
etc.,  is  dependent  upon  the  rainy  season  and  the  movement  of  the 
rubber  gatherers  and  their  camps.  The  rainy  season  lasts  from 
April  to  November. 

The  Delta^  running  between  Ciudad  Bolivar  and  Port  of  Spain, 
Trinidad,  furnishes  the  connecting  link  between  the  city  and  the 
outside  world.  The  running  time  is  two  days  each  way,  and  one 
round  trip  is  m^de  each  week. 

The  river  passenger  fare  from  Ciudad  Bolivar  to  Guasdualito,  at 
the  head  of  navigation  on  the  upper  Apure  (Rio  Sarare),  is  262 
bolivars  f $50.57  at  normal  exchange)  for  the  up-river  trip  and  231 
bolivars  ($44.58)  for  the  down-river  trip.  Other  river  fares  are  in 
proportion.  Passengers  provide  themselves  with  their  own  sleeping 
arrangements — hammock  or  camp  bed,  sheets,  towels,  toilet  articles, 
etc.  For  a  long  river  trip  certain  items  of  food  also  should  be  carried 
to  eke  out  the  limited  and  poorly  prepared  and  served  cuisine  of  the 
boats.  Mosquito  bar  and  other  means  of  protection  against  insects 
are  necessary  likewise. 

FOREIGN  STEAMER  SERVICE. 

During  the  wet  season  the  Welcome  Steamship  Co.  (Ltd.)  operates 
a  monthly  service  up  the  Orinoco  as  far  as  Ciudad  Bolivar  and  con- 
nects with  the  ports  of  Demerara,  Paramaribo,  Cayenne,  and  Port  of 
Spain.  The  French  steamer  Bieiwenida  operates  between  Ciudad 
Bolivar,  San  Felix,  and  Barrancas  in  the  live-cattle  trade  with  French 
Guiana  (Cayenne).  The  ocean-going  vessels  that  come  up  to  Ciudad 
Bolivar  average  about  1,600  tons'  burden. 

Passengers  to  and  from  Ciudad  Bolivar  usually  plan  to  make  con- 
nections at  Port  of  Spain  and  use  the  foreign  steamer  lines  that  run 
along  the  Caribbean  between  Trinidad  and  Colon,  Panama.  There 
are  also  the  two  vessels  of  the  Venezuelan  Navigation  Co.,  which 
make  all  coastwise  ports  between  Port  of  Spain  and  Maracaibo.  At 
present,  with  all  the  old  steamer  lines  in  operation  again  after  their 
practical  suspension  during  the  war,  very  good  connections  for 
Ciudad  Bolivar  can  be  made,  as  there  is  a  Spanish,  Dutch,  French, 
Italian,  or  British  boat  at  least  once  a  week  from  Curasao,  Puerto 
Cabello,  or  La  Guaira  (Caracas)  to  Port  of  Spain  or  return.  Not 
more  than  one  week's  delay  would  be  experienced  in  Port  of  Spain  in 
getting  a  boat  for  Ciudad  Bolivar. 

OVERLAND  TRANSPORTATION. 

The  principal  overland  route  is  that  connecting  San  Felix  with 
Tumeremo — 325  kilometers  (1  kilometer=:0.62  mue) — the  distance 
by  road  to  the  El  Callao  gold  fields  being  265  kilometers.     The 


292     VENEZUELA :  A  COMMEECIAL  AND  INDITSTRIAL  HANDBOOK. 

normal  freight  rate  between  San  Felix  and  Tumeremo  is  about  100 
bolivars  ($19.30)  for  each  100  kilos.  At  times  of  bad  rainy  seasons, 
disease  among  the  draft  animals,  or  extraordinary  demand,  this  rate 
has  been  as  high  as  $40,  which  was  paid  in  1912  and  1913.  This  road 
is  kept  in  a  fair  state  of  repair  by  the  State  government.  Overland 
transport  to  other  parts  of  the  district  is  enormous  in  cost.  Tracks 
through  the  forests  and  jungles  have  to  be  cut  ahead  of  the  pack 
animals  by  peons  swinging  machetes  and  axes.  This  must  be  done 
for  the  transport  to  the  river  outlets  of  the  season's  product  of  rubber, 
balata,  chicle,  etc.  It  is  impossible  for  the  State  government  to  open 
and  care  for  these  roads,  which  penetrate  entirely  unpopulated  re- 
gions  for  great  distances,  since  the  areas  of  forest  activities  are 
constantly  changing  with  the  advance  into  the  forests  of  the  gum 
exploitations  carried  on  by  small  and  large  contractors.  Off  the 
Wagon  road  from  San  Felix  or  away  from  a  navigable  stream, 
transportation  is  dependent  upon  the  pack  animal,  and  for  this 
service  oxen  are  universally  used.  Mules  are  scarce  and  high  priced 
on  account  of  the  ravages  of  the  climate. 

Merchandise  proceeds  southward  from  San  Felix  packed  in  four- 
wheeled  wagons  drawn  by  three  or  four  yoke  of  oxen,  similar  to  the 
prairie  schooners  of  the  old  West  in  the  United  States ;  or  in  small, 
two-wheeled,  one-mule  carts  like  those  so  much  used  in  other  regions 
of  Venezuela.  These  vehicles  bring  back  the  products  of  the  region, 
hides  and  balata,  some  rubber  and  chicle,  and  the  small  amount  of 
gold  now  produced.  The  325  kilometers  to  Tmneremo  may  take  two 
weeks  to  two  months,  according  to  the  season  of  the  year,  the  condi- 
tion of  the  draft  stock,  etc.  Prior  to  the  energetic  administration  of 
Gen.  Gomez  and  his  able  lieutenant,  Gen.  Mkrcelino  Torres  Garcia, 
governor  of  the  State  of  Bolivar,  little  attention  was  paid  to  road 
construction  or  repair,  the  route  remaining  a  mere  wagon  track 
through  the  forests  and  sandy  plains  of  the  uplands  above  the  river 
levels.  There  were  stretches  of  swampy  ground  where  wagons  be- 
came bogged  in  deep  mudholes  for  days  at  a  time. 

Passengers  make  the  trip  on  riding  mules,  the  distance  to  Guaci- 
pati  being:  covered  in  two  and  one-half  days  of  actual  time  in  the 
saddle.  The  road  passes  through  Upata,  capital  of  the  Piar  district, 
which  is  about  one  long,  hard  day's  ride  from  San  Felix.  After 
climbing  the  mesa  back  of  the  river  the  road  runs  across  a  stretch 
of  sandy,  open  ground,  with  a  few  trees,  for  about  one  and  one-half 
or  two  hours  of  riding,  when  the  edge  of  the  forest  is  reached.  Seven 
hours  are  needed  by  the  rider,  if  not  impeded  by  baggage  pack  ani- 
mals, to  traverse  this  forest,  and  Upata  is  reached  alter  two  hours 
more  of  hard  riding  over  open  grassy  plains.  Upata  has  a  hotel,  a 
telegraph  office,  and  some  small  stores. 

After  leaving  Upata  the  road  crosses  the  Orinoco-Cuyuni  water- 
shed and  comes  out  of  the  hills  onto  open  plains  used  as  cattle  ranches, 
with  small  villages  here  and  there,  before  the  capital  of  the  Koscio 
district,  Guacipati,  is  reached.  The  distance  between  Upata  and 
Guacipati  is  15  hours'  hard  riding,  the  usual  saddle  traveling  time 
being  two  days.  Native  travelers  take  four  to  five  days  in  reaching 
Guacipati  from  the  river  at  San  Felix.  Guacipati  was  at  one  time 
the  center  of  the  balata  industry,  large  Quantities  of»  the  gum  being 
obtained  from  the  neighboring  forests,    but  the  careless  and  waste- 


CtttDAB  BOLIVAR  COMMERCIAL  blSTRICf.  29^ 

ful  cnstom  of  chopping  down  the  trees  instead  of  tapping  them  has 
destroyed  the  industry,  and  this,  together  with  the  decrease  in  min- 
ing activity  of  El  Callao,  only  25  kilometers  away,  has  hurt  its  trade. 
There  are  evidences  here,  however,  of  more  commercial  movement 
than  at  Upata. 

El  Callao  is  situated  on  the  right  bank  of  the  Eio  Yuruari,  being 
built  on  and  around  the  site  of  the  famous  mine  of  the  same  name 
which  had  been  worked  since  earliest  times  by  the  Indians.  The 
whole  region  is  auriferous  and  many  old  workings  exist  at  Caratal, 
Tupuguen  (the  site  of  the  old  Spanish  mission) ,  Callao  Bis,  Mocupia, 
etc.  Free  gold  was  extracted  from  a  depth  of  about  20  feet.  Various 
mills  were  erected  during  the  boom  days  of  the  early  eighties. 

Away  from  the  auriferous  district  there  are  great  expanses  of 
savannahs,  which  are  divided  into  cattle  ranches.  There  are  also 
small  sugar-cane  plantations.  In  colonial  times  this  region  was  the 
most  developed.  Trade  was  carried  on  with  what  is  now  British  and 
Dutch  Guiana,  the  route  being  up  to  the  town  of  Cura,  then  the  most 
important  commercial  center  in  the  region.  The  old  Dutch  traders 
were  also  active  here.  The  old  Spanish  settlements  are  marked 
to-day  by  the  ruins  of  the  towns  at  Tupuquen,  Carapo,  Sicapra,  and 
Cura.  At  Cura  there  was  a  bridge  over  the  Yuruari,  the  only  one 
recorded  in  the  entire  region.  About  one  day's  ride  south  of  El 
Callao  is  the  town  of  Tumeremo,  now  the  center  of  the  balata  in- 
dustry of  the  great  forests  that  stretch  to  the  south  and  to  the  west 
toward  the  Caroni. 

Along  the  Caroni  for  50  miles  from  its  mouth  there  are  great 
cattle  plains^and  good  highland  country  is  found  all  the  way  to  the 
bend  of  the  Paragua,  the  principal  tributary  of  the  Caroni.  Ciudad 
Bolivar  merchants  have  been  interested  in  the  gold  washings  of  the 
river  recently,  and  camps  have  been  gradually  established  at  the  sites 
of  the  old  Capuchin  missions. 

Above  Ciudad  Bolivar  the  Orinoco  flows  smoothly  between  the 
plains  on  the  north  side  and  the  granite  hills  and  savannahs  on 
the  south  side,  until  Moitaco  is  reached,  about  72  miles  from  Ciudad 
Bolivar.  Just  abov^  Moitaco  there  is  a  huge  bend  in  the  form 
of  an  S,  containing  many  islands,  where  the  current  is  swift  and 
increases  in  strength  as  the  Boca  del  Infierno  is  reached.  Here  the 
whole  stream  rushes  through  a  narrow  gorge  with  such  force  as 
often  to  drive  back  river  steamers.  Beyond  this  hindrance  to  navi- 
gation the  river  becomes  wide  again,  but  it  has  many  rocks  and  islets. 

The  Caura,  like  most  of  the  tributaries  of  the  Orinoco,  flows 
through  savannahs  for  the  last  40  or  50  miles  of  its  course ;  but  the 
country  is  broken  by  groups  of  hills  with  belts  of  trees  along  the 
river.  There  are  a  few  small  settlements  in  the  region.  Considerable 
rice  is  grown  here  for  the  Ciudad  Bolivar  marketr  Little  is  known 
of  the  upper  reaches  of  the  Caura,  but  in  the  forests  of  this  region 
the  tonka  bean,  called  "  sarrapia,"  grows  to  perfection,  and  also  the 
balsam  of  copaiba.  About  130  miles  fron^  the  mouth  of  the  Caura 
are  the  fall  of  Para,  with  a  total  descent  of  about  200  feet,  according 
to  Andre,  the  author  of  the  only  authentic  account  of  the  upper 
Caura.  Above  the  falls  the  Caura  is  called  the  Merevari.  The  chief 
tributaries  of  the  Caura  on  the  west  bank  are.  the  Rio  Micare  and  the 
Rio  Erevato,  above  Para,  once  colonized  by  the  early  missionaries) 


294     "VENEZUELA :  A  COMMEBCIAL,  AND  INDUSTRIAL.  HANDBOOK. 

and  afterwards  on  the  route  of  the  overland  trail  to  the  upper  Ori- 
noco, previously  mentioned. 

The  Cuchivero,  which  enters  the  Orinoco  15  miles  below  the  river 
town  of  Caicara,  is  much  smaller  than  the  Caura,  but  it  is  better  known 
on  account  of  the  cattle  ranched  that  are  being  developed  in  the 
region.  The  waters  of  the  Guanaimo,  a  tributary  of  the  Cuchivero, 
are  said  to  be  affected  by  the  quantities  of  sarsaparilla  that  grow^ 
along  its  banks.  The  region  is  one  rich  in  rubber,  copaiba,  quinine, 
mahogany,  and  other  valuable  forest  products.  Traces  of  gold, 
cinnabar,  and  silver  have  been  found  in  the  hills. 

Travel  in  the  entire  Orinoco  Valley  is  far  from  pleasant.  There 
are  myriads  of  mosquitoes,  sand  flies,  and  grass  ticks  to  contend  with, 
as,  well  as  many  other  insect  pests.  During  the  rainy  season  the 
humidity  is  very  high,  and  during  the  dry  season  the  effect  of  the 
northeast  trade  wind  is  felt  throughout  the  flat  country  along  the 
lower  river  and  the  nights  are  often  chilly  on  account  of  the  heavy 
dews. 

The  trip  between  Caracas  and  Ciudad  Bolivar,  via  Valencia  and 
the  overland  route  has  frequently  been  made  by  light  automobile  to 
San  Fernando  de  Apure,  a  distance  from  the  German  railway  at 
Cagua  of  more  than  200  miles,  and  then  down  the  river  by  steamer. 
This  journey,  however,  which  takes  about  12  days,  can  be  accom- 

Elished  only  during  the  dry  season.    The  llanos  can  not  be  traversed 
y  automobile  or  wheeled  vehicle  during  the  rainy  season  on  account 
of  their  flooded  areas,  resembling  the     pampas. 

Salesmen  take  in  Ciudad  Bolivar  from  Port  of  Spain,  Trinidad,  in 
passing  to  or  from  the  east  coast  of  South  America  or  covering  the 
Caribbean  territory. 

AGRICULTURE. 

Not  much  can  be  said  for  the  agricultural  development  of  the  dis- 
trict. The  population  is  too  small,  and  the  principal  industries  have 
always  been  the  gathering  of  forest  products  and  the  mining  of  gold, 
with  even  cattle  as  a  subordinate  consideration,  though  there  are 
many  large  areas  of  suitable  cattle  lands  in  the  district  and  live  stock 
requires  less  labor  than  any  of  the  other  industries  of  the  country. 

It  may  be  instructive  to  contrast  the  productivity  of  Bolivar  with 
that  of  the  State  of  Falcon,  which  is  considered  to  be  the  most  arid 
and  sterile  in  the  Eepublic.  In  spite  of  the  rich  soil  of  Guiana,  the 
abundant  rainfall,  and  the  excellent  natural  conditions,  as  compared 
with  the  smaller  area  and  lack  of  moisture  of  Falcon,  the  Bolivar  dis- 
trict does  not  produce  sufficient  agricultural  products  to  feed  itself. 
The  State  of  Falcon  has  24,800  square  kilometers  (1  square  kilo- 
meter =0.386  square  mile)  of  surface,  as  compared  with  the  238,000 
square  kilometers  of  the  State  of  Bolivar.  Falcon  has  139,110  in- 
habitants, while  Bolivar  has  68,757.  Falcon  produces  corn  for  ex- 
port to  Curagao,  and  its  total  production  of  foodstuffs  amounts  to 
42,380,000  kilos  (1  kilo=2.2046  pounds),  but  Bolivar  produces  only 
4,720,000  kilos  or  agricultural  foodstuffs,  or  only  about  68  kilos  per 
capita — ^not  suflicient  to  feed  its  own  people.  Rice,  flour,  and  canned 
goods  are  imported  from  the  United  States. 

However,  agricultural  production  has  been  increasing  of  late  years 
since  the  industry  has  been  stimulated  by  official  action,  and  it  may 


CIUDAD  BOLIVAB  COMMEEOIAIi  DISTRICT. 


295 


be  predicted  that  enough  rice  will  soon  be  produced  to  satisfy  the 
domestic  demand. 

The  following  figures,  representing  averages  for  the  years  1915- 
1918,  show  the  total  agricultural  production  of  the  State  of  Bolivar: 

Kilos. 

Ooffee 77,623 

Cacao 5, 060 

Brown  sugar 1, 054, 772 

Rice 806, 842 

Tobacco 6, 975 

Corn 1, 483, 978 

Beans 216, 593 

Other  products — yucca,  bananas,  etc 1, 067, 395 

Total 4,719,238 

Production  in  the  various  districts  of  the  State  was  as  follows: 

Kilos. 

Piar  (capital,  Upata) '. 2, 145, 903 

Sucre  (capital,  MoitacoV. 1, 161, 479 

Heres  (capital,  Ciudad  Bolivar) 813, 842 

Cedeno  (capital,  Caicara) 535, 674 

Roscio  (capital,  Guacipati) 62, 340 

The   classification   of  the   above   production   by   districts   is   as 
follows: 


Districts. 

Cacao. 

Sugar. 

Rice. 

Com. 

Bmns. 

Coffee. 

Tobacco. 

Others. 

Cedeno 

Kilos. 

Kilos. 
3,532 
257,460 
638,200 
48,300 
107,280 

Kilos. 
286, S73 
159,110 
98,664 

Kilos. 
245,165 
251,510 
605,131 
ll,04(i 
371,132 

KUos. 
1,104 
18,392 
61,927 

Kilos. 

Kilos. 

KOos. 

Heres 

127  370 

Piar 

6,060 

77,623 

6,975 

652  323 

Roscio 

3  000 

Socre 

263,195 

135,170 

284  702 

As  has  been  said,  the  commercial  houses  of  Ciudad  Bolivar  are  ab- 
sorbed in  the  business  of  collecting  and  selling  forest  products. 
Without  any  guaranty  other  than  the  personal  honesty  of  the  con- 
tractor, about  15,000,000  bolivars  ($2,900,000)  are  advanced  annually 
to  the  men  engaged  in  the  collection  of  rubber,  balata,  balsam  of 
copaiba,  sarsaparilla,  tonka  beans,  etc. ;  and,  however  honest  these 
workers  may  be,  the  forest  industry  is  subject  to  many  difficulties. 
Seasons  with  too  much  or  too  little  rain  affect  the  yields  of  the  for- 
est areas;  often  laborers  can  not  be  recruited  in  sufficient  numbers 
to  exploit  a  given  area ;  the  concessions  granted  by  the  Government 
may  not  contain  enough  accessible  trees  producing  the  desired 
product ;  and  there  is  always  the  chance  of  sudden  market-price  re- 
ductions. The  productive  forest  areas  are  increasingly  distant 
from  their  transportation  outlets  because  of  the  lack  of  conservation 
and  systematic  exploitation,  and,  during  the  dry  season  of  the  year, 
the  6,000  or  more  men  engaged  in  the  forest  work  do  not  take  up 
other  occupations,  such  as  that  of  farming,  even  on  a  small  scale. 
Both  the  National  and  the  State  Governments  have  taken  every 
means  to  stimulate  interest  in  agriculture  in  the  district.  Prizes 
are  offered  for  the  largest  harvest,  seed  is  distributed  free  of  charge, 
and  experts  of  the  Ministry  of  Fomento  (Development)  have  been 


296     VENEZUELA :  A  COMMERCIAL  AKD  IKDtJSTRIAL  HANDBOOK, 

sent  to  study  methods  and  to  institute  a  proper  system  in  the  forest 
work,  whicn  heretofore,  has  always  been  carried  on  in  a  ruinous 
manner  (ruinous,  so  far  as  the  future  is  concerned,  on  account  of 
the  great  destruction  of  the  wealth-producing  trees) . 

LIVE-STOCK  INDUSTRY. 

Before  the  war  lard  was  imported  from  the  United  States;  now, 
although  not  enough  is  produced  in  the  district  to  supply  the  needs 
of  the  people,  sufficient  quantities  to  satisfy  the  demand  are  imported 
by  coastwise  vessels  from  the  other  ports  of  Venezuela. 

There  are  many  areas  in  the  district  more  or  less  fitted  for  cattle 
raising.  The  entire  immediate  region  of  the  Orinoco  is  reasonably 
suitable  for  cattle,  and  the  plains  stretch  away  to  the  north  as  far 
as  the  Coast  Range  of  the  peninsula  of  Paria  and  the  Carupano 
region.  Between  iJpata  and  Guacipati  there  is  a  region  of  savan- 
nahs ;  the  Caroni  and  the  Caura  have  suitable  areas,  also.  However, 
although  the  industry  was  developed  from  the  time  of  the  Spanish 
colonization,  it  was  also  the  first  to  suffer  during  the  various  in- 
ternal disturbances  from  which  the  country  has  suffered  in  the  past. 

According  to  a  census  taken  in  October,  1918,  there  were  700  stock 
owners  in  the  five  districts,  possessing  126,739  beef  cattle,  5,854 
horses,  434  mules,  3,067  burros,  3,258  hogs,  and  4,484  goats.  A  few 
of  the  wealthier  owners  have  imported  Cebu  bulls  for  crossbreeding, 
and  there  is  increasing  interest  in  the  cattle  industry,  with  some  dis- 
cussion of  a  new  packing  house  for  chilled  beef  to  be  located  at 
Barrancas. 

The  cattle  suffer  from  diseases,  however,  and  one  has  always  to 
combat  the  tropical  climate  and  its  attendant  conditions.  During 
the  rainy  season  large  surfaces  of  the  lowlands  along  the  rivers  are 
inundated  and  become  filled  with  water  growth,  which  afterwards 
rots  and  causes  sickness  among  the  cattle  which  follow  the  green 
feed  along  the  receding  water  lines. 

On  the  higher  plains,  away  from  the  rivers,  there  is  generally  scant 
feed  for  the  cattle  during  two  seasons  of  the  year.  The  natural 
grasses  are  coarse  and  hard  when  drj^,  and  the  cattle  have  abundant 
feed  only  during  the  first  period  of  the  rainy  season,  after  which  the 
plains  are  partly  flooded,  the  stock  being  forced  to  mi^ate  from 
elevated  "  island  "  to  "  island."'  There  is  also  a  good  period  follow- 
ing the  recession  of  the  waters,  but  the  plains  are  soon  scorched  by 
the  sun  and  the  cattle  are  forced  to  congregate  along  the  watercourses, 
where  they  find  green  feed.  The  solution  is  the  planting  in  fenced 
pastures  of  some  artificial  pasture  grass,  such  as  the  well-known 
jPara  or  the  guinea.  Ticks  are  also  very  troublesome,  and  dipping 
pens  should  be  arranged. 

The  Bolivar  district  of  Venezuela  has  long  been  the  chief  source 
of  the  beef  supply  for  the  island  of  Trinidad,  British  West  Indies, 
the  cattle  being  shipped  by  steamer  and  slaughtered  locally.  (See 
p.  111.)  British  Guiana  possesses  similar  cattle  lands,  which,  how- 
ever, are  less  accessible  to  transportation  than  those  of  Bolivar,  being 
far  removed  from  the  coast  and  the  navigable  river  leading  to  the 
principal  seaport.  In  1919  two  companies  were  formed  to  develop 
the  cattle  industry  of  British  Guiana  for  the  Trinidad  market,  it 
being  planned  to  supply  about  50,000  head  for  the  export  trade 


OIin)AD  BOLIVAB  COMMERCIAL  DISTRICT.  297 

within  a  few  years.  In  the  meantime  Bolivar  continues  to  export 
live  cattle  to  Trinidad  and  French  Guiana. 

These  cattle  are  shipped  principally  from  Ciudad  Bolivar  and 
the  port  of  Barrancas,  below  Ciuaad  Bolivar,  the  number  shipped 
annually  averaging  about  3,620  head  from  the  former  port  and 
1,470  from  the  latter,  if  one  estimates  the  average  weight  on  the  hoof 
at  point  of  shipment  at  950  pounds,  which  is  the  usual  export  weight 
for  Venezuelan  cattle.  The  port  of  Barrancas  also  ships  about  700 
head  per  annum  to  French  Guiana,  and  an  average  of  3,240  head  of 
live  beef  cattle  to  the  British  island  of  Barbados. 

The  average  declared-export  value  per  head  is  given  as  108  bolivars, 
or  $20.84;  but  this  figure  does  not  represent  the  value  of  fattened 
steers  of  this  class  in  the  Bolivar  district,  where  the  average  price  is 
around  $45  per  head. 

Exports  of  dried  or  "  jerked  "  beef  are  very  small,  amounting  to 
only  2,000  pounds  per  annum,  though  there  is  a  rather  large  local 
business  in  supplying  such  meat  for  the  camps. 

Exports  of  dairy  products  consist  of  about  30,000  pounds  of  cheese, 
which  is  taken  principally  by  Trinidad,  75  per  cent  of  the  amount 
being  shipped  from  Oiudad  Bolivar  and  the  remainder  from  Bar- 
rancas. 

FOOD  PRODUCTS  EXPORTED  TO  TRINIDAD. 

In  spite  of  the  low  agricultural  production  in  the  Bolivar  district 
the  demand  for  foodstuffs  in  Trinidad  has  stimulated  considerable 
export  business  in  corn,  beans,  and  sugar.  During  the  year  1919 
Ciudad  Bolivar,  Barrancas,  and  San  Felix  exported  to  Trinidad  968 
metric  tons  (1  metric  ton=2,205  pounds)  of  com,  valued  at  210,186 
bolivars  ($40,566) ,  of  which  amount  Barrancas  furnished  762  tons. 

During  the  same  year  the  district  exported  to  Trinidad  23  metric 
tons  of  beans,  valued  at  10,103  bolivars  ($1,950). 

Barrancas  also  sends  large  quantities  of  bananas  and  plantains  to 
Trinidad  as  a  staple  food  product,  shipments  amounting  during  1919 
to  159,140  kilos,  valued  at  22,020  bolivars  ($4,250). 

MINING. 

The  gold  fields  of  the  El  Callao  region  were  worked  by  the  Indians 
from  tne  earliest  times  and  undoubtedly  furnished  the  basis  for 
the  legend  of  the  mythical  city  of  Manoa,  which  was  current  in 
Europe  during  two  centuries  of  New  World  discovery  and  which  was 
the  leading  inducement  behind  a  number  of  expeditions,  such  as 
the  two  of  oir  Walter  Raleigh. 

The  same  geological  formation  exists  throughout  the  Guiana  high- 
lands and  the  mountain  ranges  of  the  Sierra  Pacaraima,  Sierra 
Uriuana,  and  Sierra  Parima,  and  explorations  have  determined  its 
continuation,  in  a  more  or  less  regular  character,  through  to  the 
west  along  the  region  of  the  headwaters  of  the  Caroni,  Paragua,  and 
Caura  Rivers.  The  Guahibos  inhabiting  the  western  slopes  of  the 
Parima  Range  near  the  source  of  the  Orinoco  are  known  to  have 
gold,  and  most  of  the  smaller  ti:ibes  of  Indians  who  trade  along  the 
Orinoco  with  the  rubber  camps  bring  in  small  quantities.  Man- 
ganese, copper,  and  iron  are  known  to  exist  in  widely  scattered 
regions. 


298     VENEZUELA.:  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 

GEOLOGY  OF  DISTRICT. 

The  Guiana  highlands  include  all  the  vast  region  in  the  eastern 
part  of  the  State  of  Bolivar,  bounded  by  the  Orinoco  on  the  north, 
by  British  Guiana  on  the  east,  and  by  Brazil  on  the  south,  amount- 
ing to  about  204,000  square  miles.  They  are  formed  of  the  oldest 
rocks  in  Venezuela  and  also  represent  one  of  the  oldest  land  surfaces 
of  the  world.  The  great  elevated  plateau  from  which  rise  the  peaks 
and  mountain  chains  of  Guiana  appears  everywhere  to  be  composed 
of  the  same  or  similar  rocks — gneisses,  hornblende,  schists,  and  gran- 
ites, all  containing  evidence  of  great  geological  antiquity.  This 
formation  has  been  called  by  geologists  the  "  Guiana  complex  "  and 
is  considered  as  more  or  less  equivalent  in  age  to  the  Lewisian  gneiss 
of  Scotland,  and  therefore  one  of  the  oldest  members  of  the  Archean 
system.    As  L.  V.  Dalton  says : 

Traces  of  the  agencies  of  erosion  are  seei.  in  the  present  form  of  dikes  of 
quartz-porphyries  and  felsite,  which  were  once  forced  in  a  molten  condition 
into  crevices  and  joints  of  the  then  less  soUd  deposits. 

After  the  cooling  of  these  intrusions  and  wearing  down  of  the  whole  mass 
by  atmospheric  Influences,  the  movements  of  the  earth's  crust  produced  a  shal- 
low sea  or  series  of  lakes  over  what  is  now  Guayana,  and  in  these  waters  a 
series  of  beds  of  red  and  white  sandstones,  coarse  conglomerate,  and  red  shale 
were  laid  down  to  a  depth  of  about  2,000  feet.  Later  this  area  was  again 
elevated  into  dry  land,  the  sediments  were  consolidated,  and  again  veins  or 
dikes  of  basalt,  dolerite,  and  similar  dark,  heavy  rocks  in  molten  condition 
forced  themselves  into  the  fractures  of  gneisses  and  sandstones  aUke.  These 
sandstones  are  here  named  the  Roraima  series,  from  their  occurrence  in  that 
mountain,  and  they  now  remain  in  isolated  peaks  or  chains  of  hills  all  over 
Guayana,  which,  since  the  far-off  period  when  the  series  was  first  consolidated, 
seems  to  have  be^i  always  dry  land. 

The  points  at  which  the  Roraima  beds  have  been  left  as  upstanding  masses 
of  horizontally  stratified  material,  in  place  of  being  completely  denuded  from 
the  ancient  foundation  of  gneiss,  appear  to  have  been  determined  in  many 
cases  by  the  exceptional  accumulations  of  molten  igneous  rock,  which  has 
hardened  and  remained  as  a  cap  to  protect  the  softer  sandstones  bedow  from 
the  effects  of  atmospheric  weathering.  Where  this  has  been  the  case,  the 
strange  vertical-sided,  flat-topped  mountains  of  Gpayana  are  the  result. 

Gold  is  generally  found  along  the  later  intrusive  dikes,  the  smallest  dikes 
being  the  richest,  while  most  gold  is  found  where  a  basalt  intrusion  crosses 
one  of  the  older  ones. 

HISTORY  OF  GUATANA  GOLD  FIELDS. 

Although  this  district  was  undoubtedly  the  source  of  the  gold  seen 
by  the  early  navigators  who  touched  the  Guayana  coast,  the  "con- 
quistadores  "  did  not  mal^e  any  discoveries  in  this  region,  and  it  was 
not  until  the  establishment  oi  the  old  mission  at  Tupucjuen  on  the 
Yuruari  (south  of  what  is  now  the  town  of  Guacipati)  m  the  early 
part  of  the  eighteenth  century  that  the  gold  fields  became  known  by 
the  discovery  of  the  ancient  crude  placer  workings  of  the  native 
Indians  of  that  region.  The  work  done  by  the  missionaries  was 
very  indefinite^  and  it  was  not  until  1842,  when  the  region  was  visited 
by  the  Brazilian,  Pedro  J.  Ayres,  that  the  existence  of  extensive 
gold  fields  was  made  known.  It  was  not  until  1849  that  crude  wash- 
ings were  established  along  the  Yuruari  and  in  the  valley  of  the 
Anacupay.    By  1875  there  were  400  men  engaged  in  the  work,  the 

Eroduction  of  that  year,  as  officially  reported,  reaching  1,500,000 
olivars  ($289,500).  The  greater  part  of  this  production  was  in 
placer  dust,  but  there  were  also  nuggets  of  quartz  origin,  among 
these  being  one  of  250  ounces  and  another  of  24  ounces. 


OIUDAD  BOLIVAB  COMMEECIAL  DISTRICT.  299 

Until  the  year  1869  the  methods  employed  were  very  crude,  on 
account  of  the  ignorance  of  the  people  of  thfe  region  and  the  entire 
lack  of  capital  for  machinery  and  modern  equipment  with  which 
to  crush  the  quartz  and  pump  the  shallow  shafts.  The  gravel  and 
sands  were  washed  by  hand  in  wooden  pans. 

In  1860  the  Venezuelan  Government  passed  favorable  mining 
legislation  so  as  to  attract  mining  companies,  and  in  that  year  the 
first  stamp  mill,  similar  in  design  to  those  used  in  California,  was 
imported  and  installed  on  the  "Buen  Ketiro"  claim,  which,  how»- 
ever,  was  finally  abandoned  as  a  failure.  Numerous  otlier  com- 
panies were  forqied  and  erected  mills  in  the  region,  and  some  of 
them  still  are  continuing  operations,  notwithstanding  the  great  diffi- 
culties encountered  in  the  high  cost  of  transportation,  the  ravages  of 
the  climate,  difficult  and  costly  labor  supply,  etc. 

It  was  first  thought  that  the  formation  containing  the  gold  was 
purely  alluvial  and  that  the  supply  of  the  metal  did  not  originate  in 
the  immediate  region.  It  was  afterwards  proven  that  gold  was  con- 
tained in  the  veins  of  quartz  which  everywhere  cross  me  formation 
in  this  region  (El  Callao). 

The  Bio  Yuruari  marks  the  dividing  line  between  two  distinct  di- 
visions of  the  formation,  the  northern  side  being  dominated  by  gran- 
ite rock,  while  the  southern  division,  where  the  gold  mines  are 
found,  is  characterized  by  basalt,  according  to  Attwood,  and  by 
diorite,  according  to  Naissant. 

The  massif  of  the  mineralized  region  is  composed  almost  entirely 
of  this  amphibological  rock,  the  diorite,  called  "bluestone"  by  the 
miners  on  account  of  its  bluish-green  color.  There  are  also  rocks  of 
secondary  importance,  such  as  quartzite,  seen  in  manv  places,  and  a 
rock  of  basaltic  structure,  the  outcroppings  of  which  are  most  no^ 
ticed  in  the  bed  of  the  Mocupia. 

The  gold  of  Guiana  originates  nearly  always  in  quartz  veins  that 
are  incrusted  in  the  diorite  and  are  not  clearly  seen  on  the  surface  in 
their  original  form  on  account  of  atmospheric  disintegration  and 
erosion.  The  diorite  presents  itself  under  many  different  aspects. 
When  it  is  traversed  by  the  gold-bearing  quartz  veins,  it  frequently 
carries  gold  itself  in  paying  quantity,  but  when  this  occurs  the  rook 
is  found  to  be  very  hard. 

From  the  diorite  the  veins  pass  to  an  upper  cap  consisting  of  a 
clay  like  mass  derived  from  the  diorite;  this  is  greasy  to  the  touch 
and  its  hardness  increases  with  the  depth,  which  is  from  100  to  150 
feet,  and  in  some  places  as  much  as  300  feet.  In  this  cap  the  gold- 
bearing  quartz  veins  disappear.  This  cap  extends  almost  through- 
out the  entire  region,  but  not  always  with  identical  characteristics. 
Its  aspect  and  nature  change  with  the  conditions  of  its  bed ;  on 
top  it  is  generally  earthy,  more  homogeneous  and  less  clayish,  and 
more  red  in  color  than  lower  down;  it  has  been  observed  that  its 
colorization  is  always  in  direct  relation  with  the  degree  of  mineral- 
ization of  the  neighboring  formations.  From  yellow,  alongside  of 
the  poor  quartz  vems,  it  becomes  a  bright  red  or  ocher  in  the  neigh- 
borhood of  the  gold-bearing  veins,  the  colors  being  produced  by  the 
disintegration  of  the  oxide  of  iron. 

The  gold-bearing  quartz  veins  never  appear  in  their  original  state 
in  this  cap  formation;  they  are  more  or  less  altered  and  even  pul- 


800     VENEZtJELA  t  A  COMME&ClAL  AKD  INDUSTRIAL  HANDBOOK. 

yerized  and  poorly  mineralized ;  at  times  even  the  richest  show  small 
traces  of  gold,  and  in  the  others  the  metal  disappears  altogether.  The 
gold  values  can  not  be  determined  by  testing  the  float  or  sands  of  the 
streams  or  wash,  but  are  found  in  the  veins  farther  down  in  the 
solid  diorite  formation  that  lies  underneath,  at  a  depth  of  100  to 
300  feet. 

The  alterations  suffered  by  the  construction  of  the  formation  in 
the  mining  region,  to  a  certain  depth,  are  not  equally  severe  in  all 
of  the  district.  In  the  higher  elevations,  the  alterations  suffered  by 
the  diorites,  quartz,  and  otner  formations,  and  consequently  the  effect 
on  the  richness  of  the  veins,  has  been  less  accentuated,  and  it  has 
been  possible  to  work  the  veins  from  their  outcroppings,  as  was  the 
case  with  the  "  Panama  "  mine,  which  produced  ore  running  3  and 
4  ounces  of  gold  to  the  ton  from  veins  situated  on  the  slope  of  the 
hill,  while  properties  lower  down  in  the  bottom  of  the  valley  did  not 
show  values  until  a  depth  of  100  or  120  feet  had  been  reached. 

The  veins  of  these  mines  have  been  known  to  reach  a  width  of  9  to 
10  feet  in  some  places,  but  are  usually  small,  narrow  veins.  They 
usually  run  in  two  directions — some  north  and  south  (these  being 
considered  the  richest,  as  has  been  shown  in  the  case  of  the  El  Callao 
Mining  Co.)  and  the  others  east  and  west  (with  less  mineral,  but  con- 
taining workable  values). 

The  gold  itself  is  found  in  five  different  forms — ^gold  intimately 
mixed  with  other  minerals;  general  sulphur  combinations,  coming 
under  the  heading  of  pyrites ;  fine  native  gold,  visible  with  the  glass ; 
flour  gold ;  and  large  nuggets.  As  in  all  gold  regions,  there  is  found 
a  great  abundance  of  iron  pyrites,  and  some  of  the  richest  of  the  ores 
have  been  thrown  away  on  account  of  the  inability  of  the  companies 
to  separate  properly  the  values  contained.  It  is  known  by  experience 
that  when  the  ores  extracted  contain  a  kind  of  hornblende,,  even  in 
small  quantity,  their  values  are  very  low,  or  nil.  The  history  of  the 
region  has  been  that  values  have  nearly  always  increased  with  depth, 
alSiough  the  width  of  a  vein  is  no  indication  of  its  richness.  The 
pyrites  content  also  increases  with  the  depth. 

The  richest  ground  worked  ran,  on  an  average,  14  ounces  to  the 
ton ;  other  rich  mines  gave  an  average  of  3  to  4  ounces  to  the  ton, 
but  most  of  the  veins  worked  gave  an  average  of  1 J  ounces  to  the  ton. 

Records  from  1866  to  1914  show  a  total  production  of  80,990  kilos 
(1  kilo=2.2046  pounds)  of  gold  from  the  El  Callao  field,  the  amount 
being  469  kilos  in  1866  and  gradually  increasing  to  7,042  in  1884, 
after  which  it  declined  to  849  kilos  in  1914.  These  figures  do  not  in- 
clude the  years  of  1886, 1892, 1893, 1894,  and  1895.  The  figures  from 
1904  to  1914  have  been  taken  from  the  official  records  of  the  Ciudad 
Bolivar  customhouse  and  include  the  gold  exported  in  the  form  of 
bars  and  dust.  In  addition  there  were  exported  placer  concentrates 
weighing  21,697  kilos,  valued  at  298,768  bolivars  ($57,660).  Giving 
the  kilo  of  gold  produced  by  these  mines  an  average  of  3,000  bolivars 
($679),  it  may  be  estimated  that  the  Guayana  gold  fields  have 
produced,  up  to  1916,  the  enormous  sum  of  265,000,000  bolivars 
($61,146,000).^ 

^  FoUowisg  the  same  system  of  calculation,  It  may  be  said  tbat  the  Guayana  gold  fields 
produced  2.343  kilos  of  gold  in  1916,  2,441  kilos  in  1916.  1,100  kilos  in  1917,  and  858 
kilos  in  19l8,  or  6,748  kilos  more  than  the  above  figures  indicate. 


CIUDAD  BOLIVAR  COMMERCIAL  DISTRICT. 


301 


"SL  CALLAO"  GOLD  MINB. 

The  major  portion  of  this  production  belongs  to  the  El  Callao 
mine.  This  mine,  unknown  in  1865,  began  work  in  1870,  with  a 
capital  of  only  120,000  bolivars  ($23,160),  divided  into  12  shares  of 
10,000  bolivars  each;  in  1872  the  company  increased  its  capital  to 
322,000  bolivars  ($62,146) ;  and  later,  in  1882,  without  new  assess- 
ments on  the  shareholders,  the  capital  was  raised  to  32,200,000 
bolivars  ($6,214,600),  the  old  shares  being  converted  into  32,200 
new  shares  of  1,000  bolivars  ($193^  each. 

The  history  of  the  production  oi  the  El  Callao  mine  is  interesting. 
It  reached  its  zenith  in  1886,  after  which  its  production  decreased 
on  account  of  the  gradual  decrease  in  values  carried  by  the  vein, 
which  was  lost  suddenly  in  1887  at  a  depth  of  250  meters  (1  meter= 
3.28  feet)  in  a  great  mass  of  quartzite — in  spite  of  which  the  com- 
pany continued  to  work  the  property  and  pay  dividends,  but  at  the 
expense  of  the  pillars  left  in  the  mine  and  by  working  old  ore  that 
had  been  previously  thrown  on  the  dump. 

Following  are  figures  for  the  El  Callao  mine  production,  taken 
from  authentic  records  of  the  company : 

[BoUvar- 10.103.] 


Years. 


1R71 

1872 

1873 

1874 

1875 

1876 

1877 

1878 

1879 

1880 

1881 

1882 

1883 

1884 

1885 

1886 

1887 

1888 

1889 

1890 

Total 


Ore 
crushed. 


Tow. 

015 

2,300 

3,051 

3,963 

11,859 

12,419 

11,685 

9,673 

11,894 

18,624 

24,978 

22,406 

24,750 

30,936 

47,223 

73,708 

66,167 

54,152 

57,310 

53,057 


540,672 


Gold  bars. 


Ounces. 

3,219.60 

8,226.67 

12,308.00 

17,187.68 

81,278.83 

42,542.06 

48,168.58 

49,638.88 

40,308.54 

54,013.71 

72,254.62 

105,396.08 

134,362.68 

177,055.16 

114,454.07 

181.040.20 

73,863.71 

52,598.73 

52,971.35 

49)439.05 


1,820,329.09 


Average 
pertoD. 


Ounce*. 
6.25 
8.  "57 
4.03 
4.33 
2.63 
3.42 
4.12 
6.13 
8.38 
2.90 
2.89 
4.70 
5.42 
5.72 
2.42 
3.45 
1.11 
0.97 
0.92 
0.93 


Value. 


Bolh>ar9. 

278,638 

712,319 

1,063,838 

1,544  690 

3,648  640 

4,169,256 

4,778,683 

4,892,519 

3,897,127 

5,200,723 

6,970,219 

10.150,585 

12,941,689 

17,076,190 

10,963,943 

17,285,148 

7,107,001 

5,040,281 

5,144,002 

4,784,103 


127,050.091 


From  1875  to  1890  the  El  Callao  Mining  Co.  paid  in  dividends  a 
total  of  49,203,400  bolivars  ($9,496^56) ;  in  1886  it  paid  11,012,400 
bolivars  ($2,125,393)  out  of  the  total  production  of  the  mine  amount- 
ing to  17,285,148  bolivars  ($3,336,034). 

.  After  1890  the  company  continued  to  work  the  low-grade  ore  on 
the  dumps,  and  put  60  stamps  on  custom  work  for  the  neighboring 
properties ;  some  of  these  made  good  profits,  milling  as  much  as  2,000 
tons  per  month  with  a  gold  yield  of  3  to  7^'  ounces  to  the  ton.  Many 
of  the  old  dumps  were  also  worked  over  by  local  merchants  and 
private  companies. 

The  great  fame  of  the  El  Callao  mine  produced  a  fabulous  demand 
for  its  shares,  which  were  quoted  on  the  London  and  Paris  markets 
at  as  high  as  2,200,000  francs  ($424,600)  per  share. 


802     VENEZUELA :  A  GOMMEBOIAL  AND  INDUSTRIAIi  HANDBOOK. 

The  exploitation  of  theise  rich  gold  deposits  gave  rise  to  two  very 
distinct  effects — one  favorable,  since  they  enriched  the  shareholders 
of  the  rich  properties  and  filled  the  region  with  prosperity,  and 
the  other  adverse,  because  the  very  richness  of  the  mine  gave  oppor- 
tunity to  expend  exorbitant  sums  in  the  working  and  other  services 
of  the  property.  Thus  the  cost  of  milling  1  ton  of  ore  gradually 
became  225  bolivars,  or  the  equivalent  of  2^  ounces  of  gold,  when 
it  is  a  well-known  fact  that  under  existing  conditions  the  extraction 
should  not  have  cost  more  than  50  bolivars  ($9.65)  per  ton  of  ore 
mined  and  milled,  including  all  expenses  and  even  the  amortization 
of  the  capital.  In  the  Transvaal  the  total  expense  does  not  exceed 
$4.80  to  $5.80  per  ton  of  ore  milled. 

Another  feature  of  the  extravagant  management  was  the  harmful 
effect  on  the  other  less  important  mining  properties.  It  is  a  well- 
known  fact  that  the  average  yield  of  gold  from  the  various  veins 
of  the  region  is  1  to  1^.  ounces  per  ton.  These  other  properties  could 
not  continue  to  compete  with  the  El  Callao  company  for  labor  and 
supplies,  nor  pay  comparable  salaries  and  other  charges,  and  still 
operate  at  a  profit,  working  their  lower-grade  ores. 

It  is  true  that  in  1887  the  cost  per  ton  was  reduced  to  71  bolivars 
*  ($13.70)  and  later  to  as  low  as  40  bolivars  ($7.72)  in  the  "  Colom- 
bia "  mine,  and  again  to  37  bolivars  ($7.14)  in  the  "  Eemington  " 
mine,  proving  that  the  vein  matter  of  this  region  could  be  mined  and 
milled  as  cheaply  as  in  the  Transvaal;  but  this  took  place  after 
"  El  Callao  "  had  failed  because  of  the  loss  of  the  vein,  and  after 
the  mistaken  idea  had  been  implanted  in  the  district  that  a  vein,  in 
order  to  be  commercially  valuable,  had  to  have  at  least  a  width  of 
4  to  5  feet  and  run  2J  ounces  of  gold  to  the  ton. 

The  low-grade  ores  and  tailings  were  thrown  away,  and  no  plant 
was  installed  to  treat  pyrites  ore,  not  amalgamable  with  mercury 
plates.  It  was  estimated  that  an  average  of  1.750  kilos  (1  kilo  == 
2.2046  pounds)  of  gold  were  lost  daily  during  the  working  of  the 
"  El  Callao  "  mine,  and  in  1883  the  consulting  engineer  declared  that 
the  mill  tailings  carried  an  average  of  $12.54  to  the  ton.  More  recent 
assays  of  these  tailings  showed  an  average  of  3^  pennyweights  of 
gold  to  the  ton  (1  pennyweight  =  1,557  grams),  worth  in  Venezuela 
16.36  bolivars  ($3,157).  No  cyanide  plant  was  installed  by  the 
company. 

Labor  charges  have  since  decreased  by  at  least  75  per  cent  in  the 
region  and  transportation  (overland  from  the  river)  has  also  lowered 
in  cost. 

One  of  the  principal  factors  of  the  high  cost  of  operation  in  this 
field  has  been  that  of  transportation  between  the  field  and  the  Ori- 
noco River.  During  the  period  of  greatest  prosperity  of  the  "  El 
Callao  "  mine  many  plans  were  advanced  for  the  construction  of  a 
railway  from  Piacoa  (below  San  Felix)  to  El  Callao — a  distance 
of  about  180  kilometers  (1  kilometer  =  0.62  mile)  over  savannahs, 
with  few  accidents  of  topography — ^but  nothing  ever  came  of  them. 
Overland  transport  from  the  river  is  fairly  easy  during  the  dry  sea- 
son of  the  year,  but  almost  impossible  during  the  rainy  season. 
Freight  on  machinery  reached  the  high  figure  of  800  to  1,200  boli- 
vars ($154.40  to  $231.60)  per  ton. 


CIUDAD  BOLIVAR  COMMEBCIAL  DISTBICT.  303 

GOLD-MINING  COMPANIES. 

Up  to  the  year  1915  the  number  of  gold-mine  concessions  in 
Venezuela  granted  by  the  Government  was  74,  of  which  73  belonged 
to  the  El  Callao  district  (State  of  Bolivar)  and  one  was  in  the 
State  of  Miranda.  Of  the  73  mines  in  Bolivar,  only  28  are  producing 
revenue  for  the  National  Government  (3  per  cent  of  the  gross  pro- 
duction) ^  and  of  these  onlv  15  were  in  operation  at  the  time  of  the 
writer's  mvestigation.  Oi  these  latter,  the  following  are  the  most 
important  properties : 

The  New  Callao  Oold  Mining  Co.  (British)  holds  the  properties  of  the  old  El 
Callao  Co.,  the  capital  being  given  as  £300,000  ($1459,950).  Use  is  being  made 
of  the  old  machinery  and  equipment,  only  30  stamps  being  in  daily  operation, 
In  connection  with  a  small  cyanide  plant  for  the  tailings  of  the  mUl.  The 
vein  being  worked  runs  northeast  by  southwest  and  it  is  worlsed  from  a  shaft 
485.5  feet  deep,  from  which  there  are  four  driftsi  on  the  vein,  the  first  being 
at  a  depth  of  173.8  feet  from  the  surface.  The  new  company  milled  2,253 
tons  of  ore  in  1913,  which  produced  20,300  grams  (1  gram  =  0.03215  Troy 
ounce)  of  gold.  The  cyanide  plant  treated  a  total  of  20,956  tons  of  tailings, 
which  netted  70  kilos  (1  kUo  ='  2.2046  pounds)  of  gold. 

The  Goldfieide  of  Venezuela  {Lt,d>)  (British)  own  various  concessions  (among 
them  the  property  known  as  "La  Providencia " ) ,  covering  in  all  a  surface  of 
301.83  hectares  (1  hectare  =  2.47  acres).  Work  was  suspended  in  July,  1913. 
Operations  from  April  to  June,  1913,  showed  a  total  of  1,625  tons  of  ore  milled, 
which  produced  41.442  kilos  of  gold,  or  0.85  ounce  per  ton. 

The  Amparo  Mining  Co.  iL4d,)  (British)  owns  the  concession  known  as  "La 
Paz,"  tx>vering  150  hectares.  A  new  stamp  mill  was  completed  in  1914  and  a 
cyanide  plant  was  being  installed. 

The  El  Dorado  Rubber,  Batata,  d  Oold  Mining  Co,  (Ltd,)  (British)  possesses 
the  placer  concession  called  "  Perseverancia,"  of  400  hectares,  the  vein  property 
known  as  "  San  Carlos,"  of  200  hectares,  and  another  placer  property  called 
**  La  Hechicera,"  also  of  400  hectares.  On  another  vein  property  of  280  hectares 
this  company  has  recently  installed  a  new  mill  with  a  capacity  of  15  to  25  tons 
per  day  of  24  hours,  and  other  machinery  Is  being  brought  in  for  the  other 
properties  mentioned.  The  company  has  a  capital  of  3,300,000  bolivars 
($636,900)  and  is  also  active  in  the  exploitation  of  large  forest  concessions  of 
rubber  and  balata. 

**  Lo  Increihlej"  capitalized  in  Venezuela  with  native  capital  of  2,000,000 
bolivars  ($386,000),  divided  into  shares  of  25  bolivars  ($4,825)  each,  owns  valu- 
able claims  within  5  kilometers  (1  kilometer =0.62  mile)  of  El  Callao.  Opera- 
tions were  begun  in  1914,  and  a  total  of  13,379  tons  of  ore  had  been  crushed  up 
to  May,  1915,  yielding  8,974  ounces  of  gold,  or  an  average  of  0.671  ounces  per 
ton.  The  cost  of  the  initial  operation  was  given  as  52.14  bolivars  ($10.06)  i>er 
ton  of  ore  mined  and  milled. 

In  1918  12  companies  were  engaged  in  mining  gold,  all  in  the  E] 
Callao  district  of  the  State  of  Bolivar,  the  total  production  being 
officially  stated  at  712,007  grams ;  fully  one-third  of  this  production 
was  credited  to  one  company,  the  Ifew  Callao  Gold  Mining  Co. 
(Ltd.).  The  gold  output,  according  to  official  figures,  was  958,304 
grams  in  1917.  During  the  year  1919  (the  latest  period  for  which 
official  statistics  are  available)  Ciudad  Bolivar  exported  a  total  of 
1,843,008  bolivars'  ($355,701)  worth  of  gold,  weighing  764,442  grams, 
of  which  the  United  States  received  469,642  grams,  France  62,000 
grams,  and  Trinidad  225,000  grams.  In  1917  exports  of  gold 
amounted  to  902,501  grams,  valued  at  $533,919. 

The  total  value  of  gold  exported  from  all  Venezuela  in  1917  was 
4,681,705  bolivars  ($903,569),  of  which  the  United  States  received 
4,523,934  bolivars  ($873,119) ,  with  the  remainder  going  to  Trinidad. 
In  1918  the  amount  was  2,348,915  bolivars  ($453,341),  of  which  the 


304     VENEZUELA :  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 

United  States  received  1,625,181  bolivars  ($348,558)  and  France 
344,661  bolivars  ($66,520),  Trinidad  getting  379,073  bolivars 
($73,161) . 

"Lo  Increible"  mine  is  located  8  miles  northwest  of  El  Callao. 
By  the  end  of  1918  a  total  of  40,000  tons  of  ore  had  been  crushed, 
yielding  an  average  of  over  i  ounce  net  per  ton,  with  J  ounce  re- 
maining in  the  tailings.  The  plant  consists  of  a  20-stamp  mill,  using 
a  20-mesh  screen.  The  cyanide  plant  was  being  installed,  with  26,000 
tons  ready  for  it  on  completion,  and  new  viens  were  being  prospected 
for  better  ores. 

The  Cicapra  district,  about  26  miles  northeast  of  El  Callao,  made 
a  sensation  10  or  15  years  ago  as  a  result  of  the  discovery  of  a  succes- 
sion of  rich  surface  pockets  containing  coarse  gold,  found  in  the  grass 
roots  amon^  the  low  hills  bordering  the  Cicapra  Kiver,  a  tributary  of 
the  Yuruan.  The  gold  was  found  in  decomposed  schist.  A  portion 
of  this  district  is  now  being  exploited  by  a  Venezuelan  company  with 
its  headquarters  in  Caracas,  known  as  the  Compania  Yuruari.  A 
small  clamshell  dredge  with  a  capacity  of  200  cubic  yards  per  day  has 
been  put  on  the  ground,  which  has  been  prospected  with  a  churn 
drill,  with  the  result  that  some  millions  of  cubic  yards  of  gravel  have 
been  laid  out,  carrying  an  average  of  $1  per  yard,  which,  it  is  thought, 
can  be  worked  at  a  cost  of  $0.50  per  yard. 

There  are  two  French  companies  operating  in  the  Cuyuni-El 
Dorado  district,  which  embraces  the  extreme  southeastern  part  of 
Venezuelan  Guiana,  and  in  this  section  are  also  located  the  properties 
of  the  El  Dorado  Rubber,  Balata  &  Gold  Mining  Co.  (Ltd.) .  Several 
thousand  ounces  of  gold  are  produced  in  this  section  annually  by 
crude  hand  washing  carried  on  by  the  natives. 

(Note. — For  more  details  regarding  the  imports  and  exports  of 
gold  of  Venezuela,  see  page  381. 

LABOR  CONDITIONS  IN  GOLD  FIELDS. 

Labor  conditions  in  the  gold  fields  are  constantly  being  disturbed 
by  the  rumors  of  rich  strikes  like  that  in  the  Venamo  VsQley  on  the 
borders  of  British  Guiana  in  December,  1911,  and  it  is  almost  a 
weekly  occurrence  to  see  entire  families  starting  out  with  pan,  pick, 
and  snovel  to  try  their  fortunes  in  some  new  discovery. 

Labor  is  obtained  from  the  West  Indies,  for  the  most  part,  and 
wages  average  5  bolivars  ($1.16)  per  day,  though  skilled  labor  has 
to  be  paid  much  more — indifferent  pipe  jfitters,  donkey  men,  etc., 
getting  as  high  as  16  to  20  bolivars  ($3.09  to  $3.86)  per  day.  Food 
IS  scarce  and  expensive,  especially  in  the  new  outlymg  districts  to 
which  it  has  to  be  packed  in  on  mules  or  oxen,  with  the  dimatic  con- 
ditions very  bad  indeed.  No  large  camp  could  long  exist  without 
modern  medical  organization  against  the  prevalent  malaria. 

As  a  rule  the  average  natives  (mostly  Negroes  and  mulattoes)  much 
prefer  to  mine  and  wash  gravel  on  their  own  account,  averaging  a  few 
cents  per  day  and  living  in  hopes  of  a  rich  strike  of  some  pocket. 
They  are  experts  at  "  gouging "  out  the  softer  crevices  in  the  reef 
formations  with  their  pointed  steel  bars,  which  they  use  in  prefer- 
ence to  the  common  pick,  and  they  also  know  the  "  pinta,"  or  colors 
indicating  better  values,  etc. 


CIUDAD  BOLIVAR  COMMEBCIAL  DISTRICT. 


305 


METHODS  PREVAILING  IN  INDUSTRY. 

The  early  attempts  to  develop  the  region  seem  to  have  been  carried 
out  in  a  very  careless  manner.  Mills  were  put  up  by  recently  floated 
companies  on  any  rich  strike,  and  when  the  veins  were  worked  out 
the  properties  were  abandoned  without  much  effort  to  locate  and 
prospect  new  ground.  Among  the  many  companies  that  have  been 
floated  from  time  to  time  may  be  mentioned  the  Nacupai.  Chili, 
Potosl,  Union,  Victory,  and  Choco.  However,  one  of  the  old  com- 
panies, the  Goldfields  of  Venezuela  (Ltd.),  has  been  systematically 
engaged  in  absorbing  many  of  the  old  holdings,  and  modern  methods 
are  being  adopted  under  the  direction  of  a  manager  with  many  years 
of  experience  in  the  peculiarities  of  the  region. 

In  view  of  the  large  area  over  which  many  bodies  of  low-grade  ore 
are  to  be  found,  it  would  appear  that  the  future  of  this  mining  dis- 
trict depends  upon  the  development  of  transportation  from  the 
Orinoco  Kiver.  A  railway  could  be  operated  by  ample  water  power, 
and  the  route  presents  no  very  great  engineering  difficulties. 

GOLD  PRODUCTION  IN  CIUDAD  BOLIVAR  DISTRICT  BY  COMPANIES. 

In  the  following  table  there  is  given  the  1919  production  of  gold 
exported  through  the  Ciudad  Bolivar  customhouse  by  each  company 
now  operating  m  the  district : 

[Oram— 0.03215  troy  ounce;  bolivar— $0,103.) 


Name  of  company. 


CaraalSol 

Riqueza 

AltoCuyuni ■. 

B^ca 

guebrada  de  Ore 
oldfields  of  Venezuela 

Nueva  Panama 

ElMame 

El  Diamente 

'Cuyuni 

La  Salvacidn 

Free  ground,  placers,  etc 

New  Callao  Gold  Mining  Co. 
La  Paz : 


Total. 


1919 


First  half  year. 


Grams. 


24,157.95 

26,330.60 

17,802.18 

4,650.00 

3,348.00 

124,159.00 

29,371.00 

4,650.00 

2, 790. 00 

9,788.00 

1,550.00 

168>922.2S 


417,609.01 


Bolivars. 


70,058 
70,359 
61,887 
13,485 
10,044 

372,476 

88,113 

13,485 

8,091 

29,364 

4,495 

496,253 


1,234,110 


Second  half  year. 


Grams. 


17,844.57 

19,292.75 

12,379.10 

7,750.00 


122,210.00 

20,809.00 

7,750.00 

7^750.00 


7,750.00 

156,692.56 

1,357.00 

35,558.55 


417, 143. 53 


Bolivars. 


61,740 
5^940 
35^899 
22,476 


368,360 
62,427 
22,475 
22,475 


22,476 

462, 216 

4,071 

106,687 


1,237,257 


Note.— Reduced  to  customary  American  units,  the  total  for  the  year  was  26,837.0  ounces,  valued  at 
1476,074  United  States  currency. 

IRON   DEPOSITS  OF  IMATACA. 

Various  deposits  of  iron  ore  have  been  referred  to  in  the  descrip- 
tions of  the  imperfectly  known  parts  of  the  country,  but  the  only 
deposit  that  has  attracted  the  interest  of  capital  is  that  of  Imataca  in 
the  foothills  of  the  range  of  the  same  name  in  the  Delta  Amacuro. ter- 
ritory, on  the  banks  of  the  Cano  Carosimia.  The  veins  are  numerous 
and  extensive,  and  in  1901,  700  tons  of  the  ore  w6re  shipped  to  Balti* 
more,  where  it  was  described  as  being  magnetic^  with  60  to  70  per  cent 

79747**— 22 ^21 


306     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAIi  HANDBOOK. 

of  pure  iron  content.  The  main  deposit  is  known  as  Imataca,  but 
there  are  also  neighboring  "  mines  "  called  "  Tequemdama,"  "  El  Sal- 
vador," "  Nicaragua,"  "  La  Magdalena,"  "  El  Encantado,"  "  Costa 
Rica,"  and  "Yucatan."  A  concession  was  granted  by  the  Govern- 
ment on  August  14, 1911,  to  the  Canadian- Venezuelan  Ore  Co.  (Ltd.) , 
of  Halifax,  ifova  Scotia,  which  included  the  right  to  establish  a  cus- 
toms station  for  export  only  and  to  handle  the  imports  of  the  company 
at  Nueva  Angostura  (Imataca)  in  order  to  avoid  the  long  trip  up  to 
Ciudad  Bolivar  to  clear  customs  business. 

In  1912  this  company  exported  to  the  United  States  a  total  of  12,100 
tons  of  ore,  valued  at  217,800  bolivars  ($42,036),  and  in  1913  exports 
totaled  56,975  tons,  valued  at  930,550  bolivars  ($179,596).  The  ore 
is  described  as  being  a  crystallized  hematite,  containing  68  to  69  per 
cent  of  pure  iron,  2  to  3  per  cent  of  silica,  0.2  to  0.4  per  cent  of  mois- 
ture, and  traces  of  phosphorus,  sulphur,  and  titanic  acid — having  all 
the  properties  of  a  fine  Bessemer  ore.  The  ore  in  the  form  of  limon- 
ite  is  found  also,  but  these  deposits  are  of  too  costly  extraction  and 
too  low  grade  to  permit  of  their  commercial  exploitation. 

The  work  accomplished  by  the  company  uncovered  two  large  par- 
allel veins,  running  generally  east  and  west,  with  a  variable  mdine 
from  the  horizontal  of  86  to  88  degrees,  with  a  thickness  of  4.5  and 
2.4  meters  (1  meter=3.28  feet),  respectively.  Work  was  begun  on 
an  outcropping  distant  2,500  meters  from  the  dock,  about  60  tons  per 
day  being  extracted.  There  is  also  a  vein  4,180  meters  from  the  same 
loading  dock  that  has  a  width  of  18  meters  on  an  average  and  25 
meters  maximum,  and  that  has  been  estimated  to  contain  4,000,000 
tons  of  ore  down  to  the  water  level.  The  daily  rate  of  extraction  was 
300  tons  in  10  hours. 

The  Canadian- Venezuelan  Ore  Co.  (Ltd.)  was  capitalized  at 
$4,347,500,  divided  into  shares,  with  6  per  cent  first-mortgage  bonds, 
due  in  1927,  outstanding  to  the  value  of  $1,000,000.  The  equipment 
installed  in  1911  and  1912  included  four  steam  boilers  with  a  total 
capacity  of  1,000  horsepower,  a  large  steam  turbine,  air  compressor 
and  air-drill  equipment,  lines  of  railway  for  ore  transport,  and  an 
automatic  loader  at  the  dock  with  a  capacity  of  300  to  500  tons  of 
ore  per  hour  into  the  vessel. 

The  concession  included  all  of  the  known  iron  deposits  of  the  re- 

g'on,  in  return  for  which  the  company  was  to  pay  the  Venezuelan* 
ovemment  20  cents  per  ton,  in  addition  to  an  initial  payment, 
until  $385,000  had  been  paid,  and  10  cents  per  ton  thereafter.  The 
enterprise  was  presumably  unsuccessful,  as  the  company  became  in- 
volved in  litigation  in  1913  and  liquidated.  The  magnificent  equip- 
ment has  since  been  taken  over  by  the  Venezuelan  Government  and 
has  been  transferred  to  the  coal  mines  of  Naricual  (Barcelona)  and 
the  port  of  Guanta,  which  are  operated  by  the  National  Government. 
It  is  estimated  that  75,000  to  90,000  tons  of  ore  can  be  shipped 
monthly  from  these  veins,  which  are  situated  about  75  miles  up  the 
river  from  the  mouth  of  the  Orinoco.  However,  sand  bars  at  the 
mouth  of  the  river  impede  the  navigation  of  the  stream  by  vessels 
of  more  than  1,500  tons  burden  during  all  of  the  year.  It  is  inter- 
esting to  note  that  these  iron  deposits  were  first  worked  by  George 
Turiiubull,  of  New  York,  about  25  years  ago.  The  chief  difficulty 
encountered  in  the  working  of  these  mines  seems  to  have  been  that 
of  the  tonnage  limitation  imposed  by  the  draft  of  the  river,  the 


CIUDAD  BOLIVAR  COMMERCIAL  DISTRICT.  807 

ressels  capable  of  lanjiing  at  the  min^s  being  too  small  to  handle  the 
ore  economically  in  large  bulk  shipments  in  competition  with  other 
producing  centers.  Other  difficulties  are,  of  course,  those  inherent  in 
the  conditions  of  the  country — ^the  tropical  climate,  scarcity  of 
labor,  etc. 

FOREST  PRODUCTS. 

The  commerce  of  Ciudad  Bolivar  is  dependent  upon  the  exploita- 
tion of  the  natural  products  of  the  forest,  collected  over  territory 
that  may  be  said  to  extend  500  miles  or  more  inland  to  the  west  and 
southwest,  and  200  miles  to  the  south.  Its  position  at  the  head  of 
deep-water  navigation  on  the  Orinoco  makes  it  the  natural  center 
of  the  trade  for  the  entire  Orinoco  system. 

The  forest  products  collected  at  the  port  constitute  at  least  80  per 
cent  of  the  exports,  and  the  market  conditions  with  respect  to  these 
articles  of  export  naturally  affect  the  trade  and  economic  condition 
of  the  entire  region  of  which  Ciudad  Bolivar  is  the  commercial  and 
financial  center.  There  are  two  other  important  factors  of  wealth 
in  the  district — (1)  the  gold  production  of  the  Venezuelan  Guiana 
fields  and  (2)  the  cattle  industry,  the  export  of  beef  cattle  and  hides 
forming  a  considerable  item  in  comparison  with  other  annual  totals. 

The  forest  products,  in  th«  order  of  their  importance,  are :  Balata, 
rubber,  tonka  beans  ("sarrapia"),  chicle,  balsam  of  copaiba,  sarsa- 
parilla,  cebadilla  ("  sabadilla  "),  and  sernamby,  a  kind  of  rubber. 

There  are  also  many  kinds  of  valuable  woods,  including  the  red  and 
white  cedar  (called  "Spanish  cedar"  in  the  American  market), 
lignum- vitae,  vera,  gre^iheart,  etc.,  and  a  number  of  dyewoods,  such 
as  "brazil"  {Haematoxylon  Brazuetto)^  otherwise  known  as  "cam- 
peche"  (Mexico),  and  logwood  {Haematoxylon  campechianum). 
One  £nds  also  the  "  mora  "  and  fustic  {ChZorophora  tinctoria) ,  yield- 
ing a  well-known  yellow  dye,  which  has  been  exported  to  France. 
The  bark  of  the  onatillo,  or  "ontillo"  {Viamia  ferruginea) ^  yields 
a  reddish  resinous  substance,  which  slightly  resembles  (and  can  be 
used  in  the  same  manner  as)  gamboge,  while  the  bark  of  the  amarillo 
(Aspidosperma  Dargasii)  contains  a  yellow  dye.  Except  for  small 
shipments  of  cedar  logs  to  Trinidad,  no  lumber  or  dyewoods  are  ex- 
ported from  Ciudad  Bolivar  <in  account  of  the  lack  oi  sufficient  labor 
and  the  great  distances  and  difficulties  of  transportation ;  attention  is 
concentrated  on  other  products  of  the  forest  that  are  more  easily  se- 
cured and  transported.  Some  mahogany  has  been  brought  out  from 
the  Delta  Amacuro. 

There  are  also  27  known  plants  capable  of  producing  dependable 
dyes,  among  these  being  the  "  f  ruta  de  Tina,"  "  sangrito,"  "  quarema," 
"  anil  silvestre,"  and  "  concha  de  corona  " ;  the  first  produces  a  deep 
purple  color,  the  second  a  red,  the  third  a  purple,  the  fourth  a  blue, 
and  the  last-named  a  blue  also.  Medicinal  plants  are  found  in  great 
abundance.  Many  of  these,  as  well  as  the  dye  plants,  are  known  and 
used  by  the  Indians  of  the  district.  With  the  exception  of  "saba- 
dilla "  for  flavoring  use  and  the  sarsaparilla  root,  none  are  gathered 
and  exported  commercially. 

FINE  HARPWOODS. 

The  forest  zones  of  Venezuela  contain  many  varieties  of  commer- 
cially important  woods,  but  their  classification  by  areas  is  limited 


308     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

to  the  accessible  reffions.  Mahogany  is  found  throughout  the  basal 
belt  of  the  country  from  sea  level  to  elevations  around  1,000  feet,  but 
it  has  been  exploited  commercially  only  in  the  region  of  the  Lower 
Orinoco  and  Lake  Maracaibo.  Germany  and  France  were  the  best 
customers  for  Venezuelan  wood  exports,  but  this  trade  has  been  com- 
pletely disorganized  by  conditions  brought  about  by  the  war,  and 
the  United  States,  now  Venezuela's  best  market  for  other  items  of 
export,  takes  only  certain  limited  kinds,  in  spite  of  the  great  variety 
that  might  be  offered  if  a  market  were  created. 

A  great  many  of  Venezuela's  fine  woods  are  exceptionally  well 
suited  for  fine  cabinet  work,  veneering,  etc.,  but  are  practically  un- 
known to  buyers  in  foreign  markets.  Modern  industry,  established 
on  a  scientific  basis,  requires  scientific  classification  of  raw  mate- 
rials, and  heretofore  most  of  the  fine  woods  exported  from  Venezuela, 
and  others  that  might  be  exported,  have  been  known  only  hj  purely 
local  names,  differing  in  the  various  regions  of  the  country  m  which 
the  woods  are  found.  Many  of  these  woods  are  also  found  in  other 
Latin  American  countries.  For  example,  a  certain  wood  may  be 
exported  from  Honduras  under  a  local  name  by  which  it  is  known 
in  the  foreign  market  consuming  it.  The  same  wood  may  exist  in 
merchantable  quantities  in  Venezuela,  but  be  known  under  an  en- 
tirely different  local  name.  When  an  inquiry  arrives  in  Venezuela 
giving  the  market  name  it  is  answered  that  no  such  wood  exists  in 
the  country  and  thus  an  opportunity  is  lost. 

Following  are  short  descriptions  of  woods  that  might  be  exported 
from  the  Ciudad  Bolivar  district:" 

Amarillo  (Aspidosperma  VargaaU  CDC), — CaUed  locaUy  "naranjmo"  and 
**  Umoncillo."  Formerly  exported  to  Europe  but  in  small  demand  to-day.  Used 
as  substitute  for  box  for  xylograph  work,  graduated  scales,  rulers,  etc.  Found 
principally  in  the  drier  reaches  of  the  forest  and  in  the  valleys  of  the  coast. 
The  wood  Is  of  clear  color,  heavy  and  hard. 

Caoha  (Swiet&iia  Candollei  Pittier). — Known  as  "Venezuelan  mahogany." 
Exported  principally  from  Maracaibo,  but  found  throughout  the  country,  in- 
cluding the  Delta  Amacuro,  where  it  is  more  or  less  accessible  to  water  trans- 
port. Venezuelan  mahogany  figures  third  and  last  In  the  list  of  commercial 
mahogany  in  foreign  markets,  being  next  to  "Santo  Domingo^*  (Swietenia 
.mahogani  I/.),  which  is  the  real  mahogany  and  should  not  be  confused  with 
the  so-called  Venezuelan  species.  Central  American  grades  {Swietenia  mac- 
crophylla)  are  also  more  valuable  than  Venezuelan  mahogany. 

Cedro  Amargo  (Cedrela  Glaatiovii  C  DC). — ^This  is  one  of  the  best  woods  of 
tropical  America  and  has  long  taken  in  Venezuela  the  place  that  pine  and  of>^V 
have  in  the  United  States  and  Europe.  It  possesses  great  durability,  resist' 
ance  to  the  attacks  of  wood-destroying  insects  and  to  the  effects  of  heat  and 
moisture,  a  hard  but  easily  worked  surface,  and  light  weight  (density,  0.40- 
0.60).  In  Venes^uela  it  is  used  very  extensively  in  cabinet  and  furniture  work, 
interior  fittings,  etc.  The  tree  has  been  confused  with  the  Cedrela  odorata 
of  the  Antilles,  which  belongs  to  the  group  of  sweet  cedars,  not  found  as  yet 
in  Venezuela.  It  grows  well  at  all  elevations  up  to  1,200  feet  above  sea  level, 
but  prefers  high  and  dry  mesa  and  hilly  lands. 

Ebano  {Cdesalpinia  Ehano  Karat  cmd  C  punctata  WilM.), — ^Exported  from 
Maracaibo  until  1917,  when  shipments  ceased.  One  of  the  finest  of  tropical 
hardwoods.  Color  varying  from  dark  black  to  reddish  brown,  and  heavily 
grained.     Specific  gravity,  1.15,  according  to  Ernst. 

Ouayacan  {Ouajacum  officinale  L.). — The  lignum-vit»  of  commerce.  Very 
fine  grained,  heavy,  and  compact 

Mora  {Dvmorphandra  exceUa  (Schomh.)  BMlon.). — ^This  is  a  wood  of  the 
Delta  Amacuro  of  the  Orinoco  and  of  Guiana  and  should  not  be  confused  with 
the  dyewood  of  the  same  name.    The  weight  of  1  cubic  meter  is  1,050  kiloa 

"  Taken  from  "  Bsbozo  de  las  ForiiiAcio>iies  Vegetales  de  Veneenela,"  by  Henry  Plttlcr. 


CIUDAD  BOLIVAB  COMMEBCIAli  DISTEICT.  809 

Its  brilliant  black  and  yellow  coloring  makes  it  valuable  as  a  fine  cabinet  wood 
and  for  inlay  work. 

Viruviro  {Nectandra  Rodiei  (Schoinb,)  Mez.). — ^The  "greenheart"  of  the 
English  and  American  markets;  principally  exported  from  British  Guiana, 
but  also  found  in  merchantable  quantitias  in  Venezuelan  Guiana.  None  is 
exported  as  yet.    Used  in  naval  construction,  ttc. 

The  port  of  Maracaibo  leads  in  the  exportation  of  timber  from 
Venezuela  to  foreign  markets.  The  other  areas  of  timber  production 
are  in  the  State  of  Yaracuy,  the  outlet  being  the  Rio  Yaracuy,  and 
the  State  of  Lara,  operations  being  carried  on  along  the  Kio  Tocuyo. 

The  difficulties  oi  lumber  exploitation  in  the  entire  Bolivar  dis- 
trict are,  of  course,  related  to  the  general  shortage  of  labor  and  the 
greater  ease  v^ith  vc^hich  other  forest  products,  such  as  rubber,  balata, 
etc.,  can  be  procured. 

BUBBBR. 

Ciudad  Bolivar  is  the  chief  port  in  Venezuela  for  the  exportation 
of  rubber.  Fifteen  years  ago  the  annual  production  of  the  country 
was  calculated  at  about  70,000  kilos  (1  kilo=2.2046  pounds),  and  this 
production  increased  rapidly,  the  annual  average  from  1913  to  1918 
Deing  180,800  kilos,  (jonsiderable  quantities  of  rubber  also  leave 
the  country  by  the  route  of  the  Rio  Negro  and  the  Amazon,  outside 
the  control  of  the  Venezuelan  customs  authorities. 

There  are  no  rubber  plantations  of  note  in  the  country,  the  product 
exported  being  from  the  natural  plantations  of  the  forests.  Various 
species  of  the  Hevea  family  ("  euforbiaceas  ")  are  found  in  Vene- 
zuela. At  least  two  of  them  {H,  irasUiensis  {H,  B.  K.)  Muell.- 
Arg.)  and  {H.  minor  Hemsl.)  are  indigenous  to  the  region,  and  the 
first  named  has  been  successfullv  cultivated.  The  plant  requires 
swampy  lands,  a  deep  clayish  soil,  always  moist,  and  a  temperature 
never  less  than  18°  C.  (64.4°  F.).  ^ 

Numerous  other  plants  produce  kinds  of  rubber  in  Venezuela. 
There  are  a  number  of  lianas  and  reeds  of  lactiferous  character  that 
merit  investigation;  it  is  known  that  the  hancornia  or  mangabeira, 
producer  of  an  important  amount  of  rubber  in  Brazil,  is  one  of  the 
Venezuelan  lianas,  and  there  is  also  the  "  jazmin  falcon  "  (Allamanda 
cathartica).  Among  the  trees,  special  attention  is  merited  by  cer- 
tain species  of  Sapzu/m.  Several  years  ago  there  was  universal  in- 
terest in  Venezuela  in  the  cultivation  of  the  "  castilla  "  tree,  known 
as  the  Central  American  rubber  tree,  which  was  thought  to  be  a 
large  producer  of  the  valuable  gum  and  could  serve  at  the  same  time 
as  the  necessary  shade  tree  for  the  coffee  and  cacao  plantations. 
But  the  investigations  of  the  United  States  Department  of  Agricul- 
ture in  Central  America  and  southern  Mexico  had  shown  this  species 
to  be  of  small  value  as  a  rubber  producer,  and  its  value  as  a  shade 
tree  was  also  negligible,  with  the  result  that  a  number  of  good  coffee 
and  cacao  plantations  were  ruined.  * 

"  Semamby  "  is  the  name  under  which  an  inferior  grade  of  crude 
rubber  is  exported,  the  word  having  been  borrowed  from  Brazil. 
In  the  Venezuelan  statistical  records  it  represents  the  inferior  and 
most  impure  grade  of  crude  rubber. 

ABEAS  OF  FBODUCnON. 

It  has  been  shown  that  the  rubber  plant  is  found  in  commercial 
quantities  throughout  the  entire  Orinoco  Basin.    The  work  of  gather- 


310     VENEZtJ^iLA:  A  OOMMBEClAL  AlSTD  IlJDtJ^l^IAl.  HANDBOOK. 

ing  the  gum  has  been  carried  on  for  years  along  the  rivers  of  the 
Orinoco  system,  but  there  has  been  little  regard  for  systematic  ex- 
ploitation, and  the  more  easily  accessible  natural  plantations  have 
been  gradually  destroyed  by  the  careless  and  mischievous  method  of 
chopping  down  the  producing  tree^  in  order  to  obtain  a  greater 
immediate  yield,  rsither  than  a  regular  9,nnu»l  production.  In  a  few 
cases,  large  firms  heavily  interested  in  the  mibVer  trade  have  carried 
out  systematic  exploitation  under  a  strict  policy  of  conservation,  but 
these  examples  have  been  rare  in  the  distridt.  Back  from  the  navi- 
gable rivers  there  are  undoubtedly  great  arms  oi  rubber  territory  in 
a  virgin  state  which  have  not  been  touched  as  yet  and  which  will 
become  productive  when  better  prices  and  greftter  organization  in  the 
industry  make  their  exploitation  possible. 

The  center  of  the  balata  industry  was  on(5e  the  town  of  Guacipati, 
but  the  destruction  of  the  trees  has  caused  the  field  to  move  to  the 
south  and  southwest,  and  the  center  is  now  Tumeremo,  265  kilometers 
(1  kilometer =0.62  miles)  from  the  river  port  of  San  Felix  and  85 
kilometers  south  of  Guacipati,  with  the  rubber  fields  still  farther  in 
the  interior  and  receding  year  by  year  as  the  barbarous  method  of 
destruction  advances. 

Studies  made  recently  of  the  rubber  and  balata  industry  in  the 
Bolivar  district  prove  that  it  is  only  a  question  of  time,  if  the  pres- 
ent methods  are  continued,  until  the  industry  will  practically  disap- 
pear, as  the  productive  regions  will  become  too  far  removed  from 
transportation  to  be  profitable. 

It  is  also  very  doubtful  whether  an  organised  attempt  to  cultivs^te 
rubber  on  a  large  scale  would  prove  successful,  in  view  of  the  present 
conditions  in  the  district.  There  is  a  lack  of  sufficient  labor  and  the 
workers  have  long  been  accustomed  to  the  free  and  easy  exploita- 
tion of  the  forests  in  a  haphazard  manner,  &r  to  a  more  or  less 
nomadic  life  following  the  gold  diggings  in  the  Guiana  district. 
Large  numbers  of  workmen  would  have  te  be  recruited  in  the  West 
Indies,  whose  surplus  labor  is  already  supplying  the  cane  fields  of 
Cuba  and  Porto  Rico,  the  banana  plantatioas  pf  Costa  Rica  and 
Colombia,  and  the  labor  at  the  Panama  Canal  The  only  solution 
would  be  the  bringing  in  of  coolie  laborers  froiB  the  Orient  m  order  to 
be  in  a  position  to  compete  with  Java  and  Sumatra  and  «ther  rubber- 
producing  countries  of  the  East,  which  have  an  enormous  supply  of 
very  cheap  labor  right  on  the  ground.  Similar  attempts  at  rubber 
development  have  failed  in  the  Patia  River  region  of  Colombia  for 
the  same  reason — ^lack  of  labor — ^since  the  people  available  easily 
supply  their  small  needs  through  intermittent  activity  in  the  forests 
near  at  hand  and  the  gold  washings  of  the  neighboring  streams. 

Production  for  the  next  few  years  will  depend  largdy  upon  price 
and  market  conditions. 

HETHODS  AND  CONDITIONS  OF  INDXJSTBT. 

The  region  of  the  headwaters  of  the  Orinoco  has  been  called, 
with  reference  to  the  rubber  industry,  a  land  of  greater  promise 
than  the  upper  reaches  of  the  great  Parana,  better  known  as  the 
Rio  Machado,  one  of  the  larger  affluents  of  the  Rio  Madeira.  Three 
months  are  required  to  travel  from  Ciudad  Bolivar  to  the  rapids  of 
Guahibos,  far  above  the  mouth  of  the  Casiquiare  and  above  the  old 


CIUDAD  BOLIVAR  COMMERCIAL  DISTRICT?.  3ll 

mission  site  of  Esmeraldas.  The  river  is  unknown  above  this  point. 
There  are  trading  stations  on  the  Orinoco  beyond  the  mouth  of  the 
Ventuari,  the  Indians  of  the  region  being  the  Maquiritari  Tribe. 

The  cost  of  transportation  from  Ciudad  Bolivar  to  the  Upper 
Orinoco  is  enormous;  the  distance  is  very  great;  there  are  man^ 
falls,  and  portages  have  to  be  made  around  the  rapids.  There  is 
no  regular  system  of  transportation  beyond  the  Apure  River,  steam- 
ers making  the  trip  from  tne  port  to  the  rapids  of  Maipures  accord- 
ing to  the  demands  of  the  season  and  trade.  The  headquarters  of 
the  Upper  Orinoco  rubber  gatherers  is  at  San  Fernando  de  Atabapo, 
the  only  important  settlement  above  the  rapids  of  Maipures.  The 
place  is  a  collection  of  about  100  huts,  presenting  an  appearance 
very  much  like  that  of  a  new  far  western  mining  camp.  From 
Ciudad  Bolivar,  to  reach  the  farthest  outpost  of  the  rubber  industry 
on  the  upper  river,  parcels  have  to  be  carried  in  four  different 
launches,  twice  on  mule  back,  five  times  in  dugout  canoes,  and  eight 
times  on  men's  backs.    There  is  great  loss  from  wreckage  and  theft. 

There  are  a  few  well-organized  companies  with  headquarters  at 
Ciudad  Bolivar,  which  obtain  concessions  for  certain  forest  areas 
from  the  Venezuelan  Government,  and  then  proceed  to  exploit  them 
in  a  systematic  manner,  preserving  the  trees  for  use  year  by  year. 
However,  there  are  no  companies  such  as  the  famous  Asini  Cla.  of 
the  Machado  River  in  Brazil,  which  maintains  a  permanent  camp 
at  Calama,  including  modern  offices,  machine  shop,  launch  service, 
cattle  barns,  etc.,  and  employs  3,500  men,  producing  annually  700 
tons  of  rubber.  There  the  territory  and  camps  are  not  abandoned 
during  the  dry  season,  the  men  gathering  Brazil  nuts  until  the 
rains  come  again  and  the  rubber  season  begins.  Throughout  the 
Venezuelan  rubber  district,  for  the  most  part,  camps  are  abandoned 
during  the  dry  season  (November  to  April),  the  men  retiring  down 
the  river  to  Ciudad  Bolivar  and  other  places  of  the  district  and 
returning  in  the  spring. 

After  the  forest  has  been  "  prospected  "  for  rubber  trees,  the  men 
lay  out  two  routes  of  300  to  500  trees  each,  one  going  out  from  and 
one  coming  into  camp,  trails  being  cut  through  the  forest  under- 
growth. If  it  rains  the  latex  is  spoiled,  as  it  is  useless  when  mixed 
with  water.  One  hundred  pounds  of  latex  yield  60  pounds  of  crude 
rubber  if  the  season  is  a  good  one.  On  an  average,  500  trees  produce 
25  pounds  of  pure  rubber.  Mazarandul  wood  is  used  exclusively  for 
the  smoke  smudge  in  drying  (curing)  the  latex. 

The  old  Venezuelan  system  has,  unfortunately  for  the  future  of 
the  industry,  consisted  of  felling  the  tree  and  scoring  it  as  much 
as  possible  to  secure  the  entire  content  of  the  latex  at  one  working. 

Modem  methods,  which  the  Government  recommends  and  en- 
deavors to  enforce,  are  based  on  the  successful  Brazilian  system,  as 
follows : 

The  rubber  trees  {Hevea  BrasUiensig)  are  subjected  to  the  follow- 
ing rules  for  scoring  and  tapping  the  trees :  At  first  a  long-handled 
narrow-bladed  ax  is  used,  enabling  the  men  to  make  incisions  at 
twice  their  own  height  from  the  ground.  No  tree  less  than  4  spans 
in  circumference  is  touched,  and  cuts  must  be  2  spans  apart,  so 
that,  if  a  tree  has  12  spans^  a  circle  of  6  spans  is  made  each  day. 
At  nrst  these  cuts  are  too  high  to  permit  cups  to  be  placed  to  catch 


312     VENEZUELA:  A  COMMERCIAL.  AND  INDUSTRIAL  HANDBOOK. 

the  latex,  but  they  are  necessary  to  stimulate  the  flow  of  the  sap  of 
the  tree.  These  cuts  are  made  slantingly.  Each  day  a  new  ring 
of  cuts  is  made,  one  span  below  the  last  ring,  so  that  within  one 
week  the  flow  of  sap  is  sufficient  to  be  collected.  A  small  tin  cup 
is  pushed  into  the  bark  of  the  tree  under  each  incision,  to  catch  the 
flowing  sap.  A  short-handled  ax  is  now  used,  and  rows  of  cuts, 
one  breadth  below  the  others,  are  continued  until  the  ground  is 
reached,  when  new  ones  are  started  halfway  between  the  old  ones, 
and  this  is  continued  indefinitely  so  that  the  old  cuts  are  not  reached 
again  for  many  years  and  the  trees  continue  to  produce  rubber  sap. 

Great  care  is  necessary  in  smoking  the  latex.  If  it  is  allowed  to 
stand  too  long  it  will  contain  many  holes,  like  those  in  a  cheese,  and 
then  grades  as  an  inferior  quality.  While  fresh  the  latex  is  smooth 
and  nrm  for  the  best  quality.  The  old  way  was  to  pour  the  latex 
on  a  wooden  paddle  ana  revolve  it  in  the  smoke  until  the  ball  weigh- 
ing several  pounds  was  produced.  This  method  made  layers  of 
mixed  quality.  The  best  method  now  employed  is  to  use  cylin- 
drical wooden  spools,  about  12  inches  long  and  9  to  10  inches  in 
diameter,  with  low  flanges  at  each  end,  resembling  a  shallow  spool. 
After  the  latex  is  smoked  evenly,  it  is  cut  off  and  makes  a  flat  slab, 
in  which  form  it  is  more  easily  packed  for  transport  and  is  also  of 
more  uniform  grade. 

In  the  Venezuelan  fields,  when  the  trees  are  not  cut  down  and 
destroyed,  a  V-shaped  cut  has  been  used,  but  has  been  allowed  to 
cover  the  tree  entirely,  causing  its  death. 

The  exploitation  of  rubber  and  balata  in  Bolivar  and  Amazonas 
has  been  carried  on  in  an  absurd,  anti-economic,  and  irrational  manner 
for  years,  despite  the  efforts  of  the  Government,  which  since  1917  has 
refused  permits  of  exploitation  near  Maipures  on  account  of  the  fear 
of  the  total  destruction  of  the  wealth  of  the  region.  Few,  if  any, 
of  the  buyers  of  the  products  of  the  forests — ^that  is,  the  merchants 
of  Ciudad  Bolivar — ^nave  ever  penetrated  into  the  forests  or  visited 
the  source  of  the  products  that  they  handle,  and  many  of  them  do  not 
even  know  the  leaves  or  botanical  properties  of  the  plants  and  trees. 
Such  a  visit  to  the  producing  regions  would  require  a  journey  of  50 
to  100  leagues  from  the  city  (league=2.63  miles). 

It  is  estimated  that  there  are  about  6,000  men  engaged  in  the  work 
of  the  forests,  in  rubber,  balata,  "sarrapia,"  etc.  The  merchants 
and  traders  of  Ciudad  Bolivar  invest  annually  the  sum  of  approxi- 
mately 15,000,000  bolivars  ($2,895,000),  in  the  industry,  advancing 
a  huge  sum  in  anticipation  of  a  good  year  in  the  forests.  Advances 
are  made  without  evident  security,  other  than  the  known  reputa- 
tion for  honesty  and  industry  of  the  individuals  engaged  in  the 
work. 

An  unfavorable  factor,  in  addition  to  the  reckless  system  of 
destruction  of  the  bearing  trees,  has  been  the  increasing  custom  of 
adulterating  the  gums  collected.  There  are  manj  plants  of  the 
forest  areas  that  produce  a  latex,  or  gum,  similar  in  appearance  to 
the  rubber,  or  balata;  these  are  known  to  the  workmen,  who  in- 
troduce them  into  the  pure  latex  in  order  to  gain  higher  weights 
and  hence  better  pay  for  their  work.  The  men  are  often  very  care- 
less and  destroy  more  trees  than  they  tap  intelligently — the  waste 


CIUDAD  BOLIVAB  COMMEECIAL  DISTRICT,  313 

being  terriffic.  It  has  been  said  that  the  native  Indians  are  the  best 
rubber  and  balata  gatherers  and  workers,  being  more  careful  and 
intelligent  than  the  native  of  mixed  mulatto  or  Indian  blood.  The 
practice  of  adulteration  has  done  much  to  discredit  the  products  of 
Venezuela  in  foreign  markets,  and  much  lower  prices  are  being  paid 
for  them. 

Since  1917  the  attention  of  the  Government  has  been  directed  to  the 
destruction  of  the  natural  wealth  of  the  national  forests,  but  the 
merchants  do  not  cooperate,  and  the  salaries  paid  to  the  zone  inspec- 
tors are  so  low  that  very  often  they  can  not  afford  to  own  or  hire 
the  necessary  travel  equipment  (saddle  and  pack  mules  and  camp 
outfits)  to  cover  the  enormous  territories  of  exploitation.  Amon^ 
the  men  actually  engaged  in  the  work  one  finds  a  great  ignorance  ana 
indifference  to  the  future. 

Eecent  legislation  calls  for  careful  supervision  of  the  concessions 
and  methods  of  collection  of  the  gums,  etc.,  and  requirements  have 
been  modeled  after  the  regulations  in  effect  in  British  Guiana  (the 
Downs  Land  Regulation,  1915)  and  in  Dutch  Guiana,  which  pro- 
vide that  no  tree  under  36  inches  in  circumference  shall  be  touched, 
and  then  only  one-half  of  the  surface,  at  any  one  time  (season), 
with  heavy  penalties  for  those  who  cut  down  the  trees. 

Concessions  for  the  exploitation  of  given  forest  areas  are  made  to 
contain  these  conservation  provisions,  but  the  greed  of  the  conces- 
sionaires, who  in  turn  are  controlled  by  the  merchants  of  Ciudad 
Bolivar,  combined  with  the  ineffectual  system  of  supervision  and 
inspection  and  the  attitude  of  the  workmen,  defeat  every  effort  at 
conservation  of  the  natural  wealth  of  the  district.  Eecent  careful 
survevs  of  the  rubber  and  balata  industry  of  Bolivar  show  that  it 
is  only  a  question  of  time  until  it  will  cease  to  occupy  a  leading 
position. 

There  is  also  the  eternal  psychology  of  the  pioneer  and  the  lure 
of  fortune  in  the  unknown  chance  of  the  forest.  The  entire  system 
of  trade  of  Ciudad  Bolivar  and  the  district  may  be  said  to  be  based 
on  speculation  and  on  chance. 

The  method  employed  is  like  that  of  "  grubstaking  "  in  the  mining 
districts  of  the  United  States.  During  the  dry  season  of  the  year 
(November  to  April)  the  men  lie  about  in  the  towns  of  the  district, 
waiting  for  the  rubber  season  to  begin.  Then  there  is  a  rush  td  the 
city  and  application  to  the  merchants  for  supplies  of  food,  arms, 
clothing,  and  equipment,  which  are  to  be  furnished  on  credit  and 
paid  for  by  products  to  be  collected  during  the  season  in  the  jungles. 
Usually  there  are  small  contractors,  or  leaders,  whom  a  group  of  men 
follow  year  by  year  and  who  ally  themselves  with  the  larger  con- 
cessionaires, who  are  very  often  the  merchants  themselves.  It  is 
often  the  case  that  the  men,  soon  after  their  season  in  the  forests, 
have  dissipated  their  earnings  and  have  to  be  sustained  on  credit 
during  the  dry  season  also.  There  is  such  a  scarcity  of  men  that 
their  demands  must  be  met  if  the  contractor  hopes  to  secure  suffi- 
cient numbers  to  exploit  the  concession.  Each  peon,  or  workman, 
must  have  heavy  advances  for  his  family,  his  equipment,  etc.,  and 
these  demands  the  contractor  must  meet;  the  sums  received  by  each 
individual  often  average  from  800  to  1,000  bolivars  ($154.40  to  $193) 
as  an  advance  on  his  season's  work,  the  amount  being  supplied  either 


314     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

in  money  or  in  merchandise,  or  both.    The  average  equipment  of  a 
rubber  or  balata  gatherer  for  the  season  is  as  follows: 

Value  In 
boliyars. 

1  hat,  felt,  average  value 40 

1  blanket,  cotton 80 

1  revolver,  caliber  9  millimeters,  long  barrel,  rubber  handle,  and  100  cart- 
ridges   110 

1  cartridge  belt 25 

1  hammock,   ordinary 12 

1  blanket,  light  weight 10 

1  towel,  Ught  (similar  to  bath  towel) . 10 

1  pair  of  sandals,  and  other  articles  of  clothing,  etc 20 

Provisions,  rum,  tobacco,  etc 5 

1  or  2  suits  of  light-weight  clothing 80 

Total 392 

EXPORTS    OF   BUBBEB. 

The  amount  of  rubber  exported  to  the  United  States  in  1914  was 
valued  at  $173,969  and  in  1915  at  $137,083,  exports  of  balata  being 
much  greater.  During  the  five  most  recent  years  the  exports  of 
rubber  from  Ciudad  Bolivar  to  this  country  have  been :  1916,  282,650 
pounds,  valued  at  $170,068 ;  1917,  340,237  pounds,  valued  at  $162,819 ; 
1918,  64,165  pounds,  valued  at  $23,482 ;  1919,  337,792  pounds,  valued 
at  $122,245 ;  1920,  209,022  pounds,  valued  at  $50,016.  The  foregoing 
figures  are  those  of  the  American  consular  agency. 

The  official  Venezuelan  Government  statistics  state  that  during 
the  year  1919  (the  latest  period  for  which  such  figures  are  available) 
Ciudad  Bolivar  exported  to  the  United  States  136,796  kilos  (kilo= 
2.2046  pounds)  of  rubber,  valued  at  586,709  bolivars  ($113,235).  and 
34,235  kilos  of  semamby,  valued  at  81,381  bolivars  ($15,707).  Other 
shipments  included  9,314  kilos  of  rubber  to  Great  Britain,  valued  at 
36,572  bolivars  ($7,058),  and  10,664  kilos,  valued  at  46,410  bolivars 
($8,957),  to  Trinidad,  for  ultimate  shipment  to  Great  Britain. 

BALATA. 

METHODS  AND  CONDITIONS  OF  INDUSTBY. 

At  the  present  time  the  town  of  Tumeremo  is  the  largest  center  of 
the  balata  industry,  the  exploitations  extending  to  the  south  and 
southwest  toward  the  Caroni  River.  Other  areas  of  collection  are 
found  along  the  lower  reaches  of  the  Caroni,  Caura,  and  other  rivers, 
including  the  Maipures  region  of  the  Orinoco.  More  attention  has 
been  paid  to  the  collection  of  balata  than  to  rubber  on  account  of  the 
greater  proximity  of  the  areas  containing  the  trees  and  also  on  ac- 
count of  the  constant  demand  from  Great  Britain.  The  towns  of 
El  Callao,  Guacipati,  and  Upata  continue  to  do  a  declining  trade  in 
balata. 

The  conditions  described  in  the  case  of  the  rubber  industry  also 
apply  to  the  balata  industry ;  there  is  the  same  careless,  thoughtless, 
and  wasteful  destruction  of  the  trees,  and  labor  conditions  are  identi- 
cal. The  Guiana  forests  have  the  advantage  of  greater  proximity 
to  the  market  center  of  Ciudad  Bolivar,  but  transportation  is  over- 
land over  the  route  described  from  Tumeremo  to  San  Felix  on  tiie 


ClUDAD  BOLIVAR  COMMERCIAL  DISTRICT.  816 

Orinoco  River,  costing  quite  as  much  as  the  long  river  route  to  the 
rubber  camps  of  the  Upper  Orinoco.  The  production  and  value  of 
balata  exceeds  that  of  rubber  at  the  present  time,  and  the  demand 
for  this  product  has  been  greater  in  England  than  in  the  United 
States. 

Balata  was  described  in  1883  by  Ernst  as  a  species  of  gutta-percha, 
not  of  much  value  and  not  known  to  commerce  at  that  time.  From 
1913  to  1918  Venezuela  exported  an  average  annual  quantity  of 
1,436,200  kilos  (1  kilo=2.2046  pounds),  valued  at  5,522,332  bolivars 
($1,065,811).  In  this  total  there  is  not  counted  the  quantities  of 
"  pendare  "  and  "  purguo  "  also  exported  and  used  as  suostitutes  for 
gutta-percha.  The  balata  grows  all  over  the  Guianas  and  as  far 
south  as  Sao  Paiilo  and  Minas  Geraes  in  Brazil,  the  Venezuelan 
variety  being  Mimusopa  balata  Gaetn.,  which  is  also  found  in  the 
West  Indies.  The  Mvntusovs  globosa  Gaetn.  is  the  plant  of  the 
"  purguo  "  or  "  purvio  "  ana  is  a  native  of  the  island  of  Trinidad 
and  Sie  immediate  Venezuelan  coast  section.  It  is  not  true  that 
•'  pendare  "  is  derived  from  the  same  species  of  tree. 

The  balata  grows  usually  at  the  foot  of  the  hills  where  the  soil  is 
moist  and  fertile,  but  not  swampy.  The  tree  is  found  scattered 
among  the  other  species  of  the  forest  and  runs  about  four  or  five  to 
the  hectare  (1  hectare=2.47  acres),  on  an  average,  though  natural 
plantations  have  been  found  where  there  were  as  many  as  40  trees 
to  the  hectare. 

It  is  estimated  that  each  tree  produces  an  average  of  3  gallons  of 
latex,  giving  8  kilos  of  balata.  The  average  price  is  160  bolivars 
($30.88)  per  100  pounds.  The  balata  tree  sometimes  grows  to 
a  height  of  25  meters  (1  meter=3.28  feet),  with  a  diameter  of  77 
centimeters  (1  centimeter=0.39  inch).  A  tree  15  centimeters  in 
thickness  may  be  tapped.  The  outer  bark  does  not  contain  the  latex 
and  is  about  3  centimeters  thick.  The  inner  bark  has  a  thickness  of 
8  millimeters  and  contains  the  greatest  amount  of  the  desired  sap,  or 
latex,  though  care  must  be  exercised  not  to  cut  through  to  the  inside 
against  the  wood,  as  the  tannic  acid  also  contained  in  the  sap  of  the 
tree  would  soon  turn  the  juice  black.  Carefully  exploited  areas  of 
balata  in  Dutch  Guiana  have  produced  again  in  two  years'  time. 

In  British  and  Dutch  Guiana  the  taller  trees  are  scored  by  means 
of  ladders  made  in  the  forests  and  reaching  to  a  height  of  5  meters 
or  more,  while  in  Venezuelan  territory  this  is  not  done,  the  men  pre- 
ferring the  easier  method  of  felling  the  tree,  when  a  greater  immedi- 
ate yield  is  obtained.  An  interesting  estimate  of  the  annual  loss 
occurring  in  Venezuela  from  this  vicious  and  wasteful  method  of 
destruction  of  forest  wealth  is  as  follows : 

It  has  been  calculated  that  each  balata  tree  produces,  on  an  aver- 
age, 3  gallons  of  latex,  giving  8  kilos  of  balata,  which  is  sold  at  an 
average  price  of  160  bolivars  ($30.88)  per  100  pounds  (quintal). 
This  makes  the  value  of  each  tree  felled  27.95  bonvars  ($5.39).  If 
the  tree  were  scored  (tapped)  standing,  by  the  method  recommended, 
which  would  preserve  it  for  many  years  of  constant  production,  1 
gallon  of  latex  would  be  produced,  rendering  (more  or  less)  3  kilos 
of  gum,  worth  10.44  bolivars  ($2.01).  This  sum  represents  the  annual 
average  value  of  each  tree  producing  balata.  It  is  also  estimated  that 
in  the  past  there  have  been  10,000  men,  on  an  average,  engaged  in  the 


316     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

balata  industry  during  the  season,  which  lasts  from  the  15th  or  30th 
of  May  to  the  end  of  August  and  from  the  middle  of  November  to 
about  the  15th  of  February  (during  some  years^  when  the  rainy 
season  lasts  through  to  February,  the  season  is  continuous,  except  for 
the  period  during  which  the  tree  is  in  flower).  The  men  work  only 
during  the  first  half  of  the  day  in  the  forest,  returning  to  their  huts 
to  perform  the  work  of  curing  the  collection  of  the  day.  An  average 
of  two  trees  are  felled  per  day,  which,  in  six  months  (the  length  of 
the  season)  would  amount  to  3,600,000  trees;  and,  with  this  destruc- 
tion going  on  during  the  10  years  of  the  balata  industry,  36,000,000 
trees  have  been  destroyed.  Taking  the  value  of  each  tree  ($2.01)  and 
estimating  the  annual  yield,  an  average  value  for  the  10  jrears  may  be 
said  to  be  80  bolivars,  or  $15.44,  per  tree.  This  almost  inconceivable 
destruction  of  wealth  has  amounted,  if  the  foregoing  calculations  are 
correct,  to  more  than  half  a  billion  dollars. 

By  working  the  trees  carefully  by  the  tapping  method  recom- 
mended, from  6  to  8  trees  can  be  handled  per  day.  In  reality,  the 
greater  number  of  trees  worked  by  tapping  more  than  compensates 
for  the  greater  immediate  yield  from  each  tree  after  it  is  felled. 
Several  of  the  Tumeremo  contractors  (concessionaires),  such  as  the 
firm  of  Bianchi  &  Odreman,  have  adopted  the  British  Guiana  equip- 
ment of  climbing  belt,  spurs,  etc.,  and  the  work  of  their  men  is  care- 
fully supervised  as  far  as  possible ;  but  the  general  condition  of  the 
industry  is  one  of  waste,  the  productive  areas  are  becoming  more 
and  more  distant  from  the  river,  and  the  cost  of  collection  and 
marketing  is  consequently  higher  as  time  goes  on. 

During  1917  the  Venezuelan  Government  issued  a  total  of  218 
permits  to  exploit  balata  in  the  territory  of  the  State  of  Bolivar 
alone.  These  218  permits  covered  an  area  of  272,000  square  hectares, 
and  the  payments  to  the  national  treasury  amounted  to  43,600 
bolivars  ($8,415),  or  an  avera^  of  200  bolivars  ($38.60)  per  con- 
cession. The  permits  were  divided  among  the  districts  of  the  State 
as  follows :  District  of  Eoscio,  169 ;  Piar,  23 ;  Heres,  11 ;  Cedeno,  9 ; 
and  Sucre,  6. 

According  to  the  law  and  regulations  governing  these  forest- 
exploitation  permits,  each  permit  should  cover  exactly  1,250  hec- 
tares ;  but  in  actual  practice  they  really  include  much  more  territory 
than  that  allotted,  as  there  exists  no  systematic  inspection  or  sur- 
vey of  the  lands  allotted  and  the  office  of  the  State  intendant  of 
public  lands  and  forests  is  handicapped  by  the  lack  of  sufficient  per- 
sonnel and  funds  for  proper  administration  and  supervision. 
Boundaries  and  limits  are,  at  best,  indefinite  in  the  partially  explored 
country  covered  by  these  concessions;  and  local  names  for  points  of 
identification  change,  resulting  in  great  confusion.  Theire  is  a  limit  of 
25  claims  allowed  to  any  one  contractor.  It  is  customary  for  the  mer- 
chants interested  in  the  balata  and  rubber  trade  to  secure  the  per- 
mits, basing  their  operations  on  the  reports  received  from  their 
foremen  or  subcontractors.  They  do  not  know  the  territory  them- 
selves, as  a  rule.  The  intendant's  office  is  little  more  than  a  tax- 
collection  agency  for  the  fiscal  department  of  the  Government,  the 
procedure  being  for  this  office  to  receive  the  applications  for  con- 
cessions, publish  these  in  the  local  press  as  required  by  law,  and  then 
refer  the  matter  to  Caracas,  where  it  comes  under  the  administra- 


CIUDAD  BOLIVAR  COMMERCIAL  DISTRICT.  317 

tion  of  the  Ministry  of  Fomento  (Developfnent) — after  which  the 
intendant  makes  out  the  tax  or  rental  liquidation  on  which  the  con- 
tractor pays  the  annual  rental  tax  to  the  Government.  Upon  the 
payment  of  the  rental  tax  the  contractor  is  ready  to  begin  exploita- 
tion and  practically  fixes  his  own  limits,  the  only  possible  objection 
or  interference  being  that  of  some  other  interested  contractor  on 
adjoining  territory.  In  the  solicitation  of  exploitation  permits,  local 
landmarks  and  natural  divisions  are  named  oy  the  contractor,  and, 
without  proper  maps,  surveys,  or  other  information,  the  office  of  the 
intendant  of  public  lands  and  forests  is  practically  helpless  to 
determine  proper  boundaries  and  divisions. 


EXPOBTB  OF  BALATA. 


Exports  of  balata  from  all  Venezuela  for  the  year  1913  were  valued 
at  10,632,994  bolivars  ($2,032,8.68),, but  fell  off  to  3,619,812  bolivars 
($698,624)  in  1914,  on  account  of  the  closing  of  the  British  market, 
which  had  always  been  the  principal  one  for  Venezuelan  balata  up  to 
the  beginning  of  the  war.  Exports  of  balata  from  all  Venezuela  for 
four  more  recent  years  have  been:  1916,  626  metric  tons  (1  metric 
ton=2,205  pounds),  valued  at  2.936,697  bolivars  ($566,883);  1917, 
1,172  tons,  valued  at  6,641,840  bolivars  ($1,281,875) ;  1918, 1,242  tons, 
valued  at  6,801,556  bolivars  ($1,312,700) ;  1919,  1,120  tons,  valued  at 
6,504,484  bolivars  ($1J255,365). 

In  1916  exports  of  oalata  from  the  single  port  of  Ciudad  Bolivar, 
according  to  Venezuelan  Government  statistics,  reached  the  total  oi 
626  metric  tons,  valued  at  2,936,697  bolivars  ($566,783),  of  which  the 
United  States  received  241  tons,  valued  at  1,070,229  bolivars  ($206,- 
554) :  Great  Britain  373  tons,  valued  at  1,813,286  bolivars  ($349,964) ; 
and  Trinidad  10  tons,  valued  at  42,600  bolivars  ($8,222).  For  the 
year  1917  the  amount  was  1,172  tons,  divided  as  follows:  United 
States,  163  tons,  valued  at  874,707  bolivars  ($168,818) ;  Great  Britain 
944  tons,  valued  at  5,450,271  bolivars  ($1,051,902) ;  Trinidad  62  tons, 
valued  at  308,275  bolivars  ($59,497).  In  1918  Ciudad  Bolivar's  total 
shipments  of  balata  amounted  to  1,243  metric  tons,  valued  at  6,801,- 
556  bolivars  ($1,312,700),  of  which  the  United  States  received  187 
tons,  valued  at  964,475  bolivars  ($186,144) ;  Great  Britain  516  tons, 
valued  at  2,942,194  bolivars  ($567,843);  and  Trinidad  529  tons, 
valued  at  2,894,887  bolivars  ($558,713)— this  last  being  mostly  for 
transshipment  to  Great  Britain.  In  1918  Trinidad  received  a  large 
part  of  the  shipments  from  Ciudad  Bolivar  for  transshipment,  on  ac- 
count of  the  increasing  shortage  of  ocean  tonnage  and  also  because  of 
the  better  trading  facilities  that  had  been  provided  on  the  island  in 
connection  with  British  interests  in  Ciudad  Bolivar.  During  the 
year  1919  Ciudad  Bolivar's  shipments  of  balata  were :  United  States 
377  metric  tons,  valued  at  2,086,585  bolivars  ($402,711) ;  Great 
Britain  439  tons,  valued  at  2,577,603  bolivars  ($497,477) ;  Trinidad 
298  tons,  valued  at  1,810,297  bolivars  ($349,387)— making  a  total  of 
1,114  tons,  valued  at  6,474,485  bolivars  ($1,249,575). 

As  stated,  the  foregoing  figures  are  from  the  official  statistics  pub- 
lished by  the  Venezuelan  Government.  According  to  the  figures  of 
the  American  consular  agency  at  the  port  the  declared  exports  of 
balata  from  Ciudad  Bolivar  to  the  United  States  have  been  as  fol- 


818     VENEZUELA.:  A  CX)MMEBCIAL  AKD  INDUSTRIAL  HANDBOOK. 

lows :  1914,  $292,482 ;  1916,  $350,148 ;  1916,  584,341  pounds,  valued  at 
$269,273;  1917,  603,555  pounds,  valued  at  $300,424;  1918.  413,353 
pounds,  valued  at  $193,285 ;  1919, 778,538  pounds,  valued  at  $443,356 ; 
1920,  371,749  pounds,  valued  at  $212,599. 

PBICE  QUOTATIONS. 

The  average  price  paid  in  Ciudad  Bolivar  has  been  mentioned  as 
160  bolivars  ($30.88)  per  100  pounds.  This  local  price  fluctuates 
with  the  New  York  and  Liverpool  quotations.  On  September  30, 
1920,  balata  was  quoted  in  New  York  at  $0.64-$0.65  per  pound,  in 
block^  and  did  not  appear  to  be  suffering  from  the  general  de- 
cline in  prices  of  nearly  all  Venezuelan  exports;  quotations  remained 
firm  at  $0.64  per  pound  in  New  York  at  the  end  of  November,  1920, 
and  commission  merchants  were  recommending  prompt  shipment  of 
stocks  on  hand. 

FUTUEE  OF  INDUSTBY. 

On  account  of  the  wasteful  method^' or  rather  lack  of  method,  of 
exploitation,  and  the  constantly  receding  areas  of  production  as  the 
forests  become  more  and  more  exhausted,  bringing  about  higher 
transportation  costs  and  increased  collection  costs  as  the  number  of 
tress  gradually  becomes  depleted,  it  is  only  a  question  of  time  until 
the  production  of  the  district  will  suffer  a  sharp  decline,  unless  the 
Government  can  imdertake  vigorous  conservation  action  and  en- 
force proper  methods  of  exploitation  of  the  forests.  For  the  pres- 
ent, the  annual  amount  exported  is  dependent  upon  market  condi- 
tions in  the  United  States  and  the  United  Kingdom.  A  few  con- 
tractors who  have  undertaken  the  development  of  the  industry  in  an 
organized  manner  will  continue  to  ship  regular  quantities  for  years 
to  come. 

CHICLE. 

From  1910  to  1914  Ciudad  Bolivar  exported  an  annual  average  of 
251,275  kilos  (1  kilo=2.2046  pounds)  of  chicle.  Prof.  Pittier,  agri- 
cultural and  botanical  expert  for  the  Venezuelan  Government,  in  his 
published  study  of  the  national  plant  life  (Ecological  Review  of  the 
Natural  and  Agricultural  Products  of  Venezuela,  1920),  makes  the 
statement  that  the  Venezuelan  chicle  is  not  derived  from  the  nispero 
(Achras  Sapota  L.)  but  from  species  of  the  same  family  (Achras) 
that  have  not  as  yet  been  scientifically  classified;  and  he  adds  that 
he  himself  demonstrated  that  the  chicle  of  Yucatan  and  Guatemala 
is  also  not  derived  from  the  above-named  plant  (Achras  Sapota  Z.). 

CONDITIONS  OF   INDUSTBY. 

The  value  of  the  plant  was  unknown  generally  in  the  Bolivar  dis- 
trict until  1911  when  a  total  of  593  kilos  (1  kilo=2.2046  pounds) 
was  exported,  and  the  industry  rapidly  increased,  1,902  kilos  being 
exported  in  1912,  68,000  kilos  in  1913,  264,320  kilos  in  1914,  and 
464,361  kilos  in  the  first  half  of  1915.  At  that  time  only  one  or  two 
chewing-gilm  manufacturers  of  the  United  States  had  learned  to  use 
Venezuelan  chicle,  but  these,  it  was  said,  found  it  better  and  cheaper 
than  the  Mexican  product. 


CnJDAD  BOLIVAB  COMMERCIAL.  DISTRICT. 


319 


The  same  general  forest  zones  and  areas  applying  to  rubber  and 
balata  also  apply  to  chicle,  and  the  same  general  conditions  obtain 
in  the  industry.  The  main  difficulties  are  in  preventing  the  introduc- 
tion into  the  gum,  in  the  forests,  of  other  similar  vegetable  saps  and 
gums  to  produce  more  weight.  Merchants  handling  chicle  at  Ciudad 
Bolivar  and  the  other  points  of  collection  have  frequently  been 
forced  to  adopt  the  method  of  boiling  the  raw  gum  in  order  to  free 
it  from  the  suostitutes  and  adulterations  before  shipment  for  export. 

EXPOBTS  FEOM  CIUDAD  BOLIVAB — ^AMEBICAN  IMPOBTS  FBOM  AIX  VENEZUELA. 

The  following  table  shows  the  exports  of  chicle  from  Ciudad 
Bolivar  to  the  United  States  for  the  last  eight  years,  according  to 
the  figures  of  the  American  consular  agency : 


Years. 

Pounds. 

1914 

1915 

1916 

135,680 

1917 

170,445 

Value. 


$130,416 

411,490 

24,469 

45,440 


Years. 


1918 
1919 
1920 


Founds. 


665,753 
166,665 
509,113 


Value. 


$150,616 

49,170 

145,603 


The  official  returns  of  the  United  States  show  the  following  imports 
of  chicle  from  Venezuela  as  a  whole  during  five  recent  years: 


Years. 


Fiscal  3rear  1916.... 
Fiscal  year  1917.... 
Calendar  year  1918. 
Calendar  year  mO. 
Calendar  year  1920 


Pounds. 


930,535 
137,967 
541,750 
172,077 
414,426 


Value. 


$213,023 

23,324 

138,615 

40,142 

108,657 


TONKA  BEANS   (SARRAPIA). 

The  tonka  beans  of  commerce  are  the  seeds  of  the  beautiful  Guiana 
tree  belonging  to  the  family  of  Papilionacese  {Coumarouna  odorata 
A%Al.)^  found  throughout  the  district,  but  principally  gathered  along 
the  Orinoco,  Cuchivero,  and  Caura  Rivers.  Its  value  lies  in  the 
aromatic  extract  of  what  is  called  the  "coumarin" — used  in  per- 
fumery, in  flavoring  extracts,  and  for  cigarettes  and  other  perfumed 
tobaccos. 

Prior  to  1912,  the  industry  of  gathering  the  beans  for  market  was 
the  chief  means  of  livelihood  of  the  people  of  the  Caura  River  region, 
but  the  low  prices  following  this  period  turned  their  attention  to 
rice  growing  to  a  greater  extent.  The  demand  revived  in  1917, 
when  shipments  were  heavy.  The  industry  of  collecting  this  prod- 
uct of  the  forest  has  the  advantage  of  being  in  season  when  the  men 
are  not  engaged  in  the  rubber,  balata,  or  chicle  collection,  the  pods 
producing  the  kernels  becoming  ripe  in  the  dry  season  of  the  year 
(November  to  April).  The  kernels  are  merely  picked  from  the 
ground  and  sent  down  the  river  to  Ciudad  Bolivar  for  transship- 
ment to  Trinidad  (Port  of  Spain),  where  they  are  prepared  for 
export,  one  firm  possessing  a  practical  monopoly  of  the  trade  in  this 
article. 


320     VENEZUELA:  A  COMMEECIAL  AND  INDUSTRIAL  HANDBOOK. 

Trinidad's  trade  in  this  product  is  described  by  Consul  H.  D. 
Baker  in  a  report  dated  August  19, 1920 : 

One  of  the  most  important  exports  of  Trinidad,  and  one  in  which  the  island 
has  a  practical  monopoly  in  the  world's  commerce,  is  tonka  heans,  the  market 
for  which  is  chiefly  in  the  United  States,  where  the  beans  are  used  extensively 
by  various  tobacco  companies  for  perfuming  smoking  tobaccos.  There  is  also 
a  limited  market  for  these  beans  in  France  and  Germany,  where  they  are  used 
in  connection  with  the  manufacture  of  various  perfumes.  The  use  of  tonka 
beans  by  tobacco  and  perfume  manufacturers,  though  apparently  of  consider- 
able importance  in  many  instances,  is  nevertheless,  generally  speaking,  ob- 
scured in  trade  secrecy,  and  details  concerning  this  use  are  confined  to  the 
manufacturers  themselves. 

Tonka  beans  are  not  produced  in  Trinidad,  but  in  the  forests  of  the  Caura 
and  Orinoco  Rivers  in  Venezuela,  where  the  trees  grow  wild  in  great  num- 
bers and  with  an  excellent  quality  of  fruit,  with  a  large  content  of  "  coumarin," 
which  is  the  active  principle  of  the  odor,  or  perfume,  that  gives  the  kernel 
its  commercial  importance.  Trinidad,  however,  has  its  part  in  the  industry, 
being  the  place  from  which  the  beans  are  exported,  because  the  curing  process 
is  effected  there.  The  beans  are  soaked  in  rum  for  a  few  days,  after  which 
they  are  spread  out  to  dry  for  a  short  period,  during  which  drying  process 
innumerable  small  crystals  form  upon  the  surface,  giving  the  beans  a  frosted 
appearance  and  emitting  a  strong  and  rather  sickening  aroma.  These  crys- 
tals are  the  active  principle  of  the  perfume. 

The  export  trade  is  controlled  by  one  firm  in  Trinidad  (Port  of  Spain), 
which  manages  the  curing.  It  advances  money  to  the  coUectors  of  the  beans 
in  Venezuela. 

The  exports  of  tonka  beans  to  the  United  States  show  large  variations  from 
year  to  year  and  apparently  depend  a  good  deal  on  the  prices,  which  fluctuate 
considerably.  It  is  undei*stood  to  be  the  policy  of  American  manufacturers 
who  make  use  of  such  beans  to  buy  in  large  quantities  and  accumulate  large 
stocks  when  prices  are  favorable  and  perhaps  not  buy  at  all  when  prices 
seem  too  high.  In  1917  Trinidad  exported  to  the  United  States,  as  shown 
by  the  returns  of  the  American  consulate,  752,601  jwunds,  valued  at  $472,055; 
in  1918  the  shipments  decreased  to  19,213  pounds,  valued  at  $11,439,  while 
they  increased  again  in  1919  to  171,560  pounds,  valued  at  $167,221i  [Editor's 
Note. — In  1920  the  amount  exported  to  the  United  States  was  586,289  pounds, 
valued  at  $833,064.] 

The  total  value  of  tonka  beans  exported  from  Vei^ezuela  in  1913 
was  3,639,200  bolivars  ($702,366) ;  in  1914,  48,308  bolivars  ($9,323)  ; 
and  in  the  first  half  of  1915,  445,223  bolivars  ($85,928).  Exports 
for  the  years  1916  and  1917  were  variously  declared  as  "tonka 
beans"  and  as  "sarrapia" — actually  one  and  the  saine  thing — ^the 
combined  totals  giving,  for  1916, 123  metric  tons  (1  metric  ton=:2,205 
pounds),  valued  at  142,088  bolivars  ($27,423),  and  for  1917,  966 
metric  tons,  valued  at  361,317  bolivars  ($69,541),  In  1918  shipments 
from  Venezuela  to  the  United  States  totaled  only  83  metric  tons, 
valued  at  82,267  bolivars  ($15,686). 

CEBADILLA. 

"Cebadilla"  is  another  product  of  the  forests  of  Bolivar  and 
Guiana  that  attained  a  considerable  demand  during  the  war.  Ceba- 
dilla  consists  of  the  seeds  of  the  Schoenocaulon  omcinale  Aaa  Gray^ 
and  from  them  is  extracted  the  veratrina,  the  powder  being  used  also 
in  insecticide  preparations.  Prior  to  1914  the  bulk  of  the  exports 
of  this  product  went  to  Germany,  but  during  the  conflict  it  was 
divided  between  France,  Great  Britain,  and  the  United  States.  The 
domestic  name  "cebadilla,"  a  diminutive  of  the  Spanish  word 
"  cebada,"  meaning  barley,  is  also  given  as  "  sabadilla,"  under  which 
name  it  is  exported. 


CITJDAD  BOLIVAR  COMMERCIAL  DISTRICT. 


321 


Following  are  excerpts  from  a  report  by  Consul  Homer  Brett,  at 
La  Guaira,  Venezuela,  dated  March  21, 1916,  and  published  in  Com- 
merce Reports  April  14, 1916 : 

A  press  telegram  from  England  recently  published  in  Caracas  stating  that  the 
asphyxiating  and  tear-producing  gases  us^  in  the  present  war  are  made  from 
**  sabadilla,"  a  product  exported  only  from  Venezuela,  has  caused  considerable 
discussion. 

The  highly  poisonous  seeds  have  long  been  used  in  medicine.  The  substances 
produced  from  sabadilla  seed  are  cavadine,  or  crystallized  veratric,  an  alkaloid 
with  the  formula  CmH«0»N;  veratric  acid  (CHmO^),  and  sabadalline  (CiHw- 
0»N).  This  last  is  an  amorphous,  pleasant-smelling  alkaloid  that  accelerates 
the  beating  of  the  heart. 

While  nothing  is  known  here  as  to  its  use  in  the  production  of  war  gases, 
it  is  a  fact  that  sabadilla  dust  irritates  the  eyes,  the  throat,  and  especially 
the  nose  so  much  that  laborers  working  with  it  are  obliged  to  wear  protecting 
masks.  Sabadilla  powder  is  used  by  cattle  raisers  in  this  country  as  an 
insecticide  with  excellent  results.  It  is  stated  that  in  Europe  it  is  used  in  the 
manufacture  of  disinfectants,  and  that  in  the  Balkan  States  and  Russia  it  is 
employed  in  tanning  fine  leathers  and  as  a  mordant  for  dyes. 

The  first  exportation  from  Venezuela  was  made  to  Hamburg  25  or  30  years 
ago.  The  foreign  demand  has  never  amounted  to  more  than  5,000  sacks  an- 
nually. Whenever  production  passes  beyond  this  point  the  price  has  fallen 
below  the  cost  of  gathering.  It  is  not  a  cultivated  crop,  but  might  become  such 
if  new  uses  were  discovered  which  would  cause  an  increased  and  regular  de- 
mand. It  grows  in  the  vicinity  of  Caracas  and  is  exported  from  La  Guaira. 
The  exports  during  the  whole  of  1913  and  1914  and  the  first  six  months  of  1915 
are  given  below: 


Countries. 

1913 

1914 

January-June,  1915. 

KUos. 

Bolivars. 

Kilns. 

Bolivars. 

KilOR. 

Bolivars. 

United  States 

34,215 

112,826 

2,300 

16,400 

24,916 

90,250 

1,840 

11,479 

6,286 

4,400 

OermftT^v-  -r.... r 

247,226 

220,598 

France 

13,435 

65,687 

840 

9,406 
45,468 

Netherlands 

0,320 

7,992 

Bpain t^t--, 

588 

Italy 

3,487 

2,440 

Total , ^. . 

256,546 

228,590 

169,228 

130,925 

86,248 

59,861 

For  the  entire  year  of  1915  exports  of  sabadilla  to  the  United  States,  as  de- 
clared at  the  La  Guaira  consulate  and  the  Caracas  agency,  were  61,433  pounds, 
valued  at  $9,097,  as  against  73,732  pounds,  worth  $7,454,  in  1914.  The  news- 
papers state  that  inmiediately  after  publication  of  the  press  telegram  above 
mentioned  the  price  of  sabadilla  in  Caracas  rose  from  40  bolivars  ($7.72)  to  60 
bolivars  ($11.58)  per  220  pounds,  but  that  none  is  to  be  had  in  the  market. 

In  1917  Venezuela  as  a  whole  exported  231  metric  tons  of  cebadilla, 
valued  at  144,676  bolivars  ($27,922}.  In  1918  the  quantity  was  75 
tons  and  the  value  63,242  bolivars  ($10,276) . 

BALSAM  OF  COPAIBA. 

Balsam  of  Copaiba  is  exported  from  Bolivar  and  also  from  Mara- 
caibo  in  Venezuela,  the  Maracaibo  grade  being  considered  superior  to 
the  Orinoco  production,  which  it  also  exceeds  in  quantity.  The  total 
exports  since  1913  have  averaged  57,370  kilos  annually  (1  kilo=2.2046 
pounds) ,  with  a  tendency  to  diminish.  The  balsam  is  extracted  from 
the  truuK  of  the  Copcdfera  o-fficinalis  Willd.  and  also,  very  probably, 
from  other  species  of  the  same  family.    The  tree  is  found  through- 


79747*— 22- 


-22 


822     VENEZUELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

out  all  the  forest  areas  adjoining  the  savannahs  of  the  Orinoco  basin 
in  Venezuela  and  also  in  the  Lake  Maracaibo  region.  Its  local  name 
is  "  cabima,"  or  "  cabimba." 

Conditions  of  the  industry  in  the  Ciudad  Bolivar  commercial  dis- 
trict are  very  generally  similar  to  those  of  the  rubber  and  balata 
industries. 

Declared  exports  of  this  balsam  to  the  United  States  in  1914:  from 
Ciudad  Bolivar  were  valued  at  $10,851  and  in  1915  at  $2,459.  In 
1916  exports  to  the  United  States  totaled  16,448  pounds,  valued  at 
$5,057;  in  1917,  17,125  pounds,  valued  at  $7,651;  in  1918,  28,202 
pounds,  valued  at  $12,562 ;  in  1919,  43,737  pounds,  valued  at  $14,090 ; 
and  in  1920,  5,878  pounds,  valued  at  $1,542. 

During  the  year  1916  Venezuela  as  a  whole  exported  to  the  United 
States  a  total  of  89,312  pounds  of  copaiba  balsam,  valued  at  $36,693, 
the  bulk  of  the  amount  coming  from  Maracaibo.  In  1917  exports  to 
the  United  States  totaled  84,869  pounds,  valued  at  $44,539.  In  1918 
shipments  amounted  to  119,756  pounds,  valued  at  $82,171. 

The  total  output  of  the  country  in  1917  was  53  metric  tons  (1  metric 
ton=:2,205  pounds)  and  in  1918,  30  metric  tons. 

About  one-third  of  the  balsam  of  copaiba  produced  in  the  Bolivar 
region  goes  to  Trinidad  for  reexport  to  the  United  Kingdom. 

Small  quantities  of  divi-divi  are  exported  from  Ciudad  Bolivar  and 
the  other  ports  of  the  district. 

OTHER  FOREST  PRODUCTS,  NOT  EXPORTED. 

Other  forest  products,  which  are  not  exported,  are  mentioned  below : 

ANGOSTUBA  BABK. 

This  medicinal  bark  forms  the  basis  of  the  famous  Angostura 
Bitters,  formerly  manufactured  in  Ciudad  Bolivar  (of  which  the 
old  name  was  Angostura),  but  now  made  by  the  inventor's  family 
in  Port  of  Spain,  Trinidad.  It  is  the  bark  of  the  tree  scientifically 
known  as  Cusparia  trifoliata  (WUld.)  Engler^  which  is  found  scat- 
tered throughout  the  forests  of  the  eastern  and  central  part  of  the 
Orinoco  Valley.  Its  properties  are  known  to  be  those  of  a  fever 
specific  and  tonic.  The  bark  has  not  been  exported  since  1913  from 
Ciudad  Bolivar. 

QUINA. 

Four  kinds  of  "  quina "  are  known  to  exist  in  the  forests  of  the 
Bolivar  district,  namely,  Cmchona  tucujensia  Karst^  C.  cordifolia 
Karst^  Ladenhergia  moritziana  {Klotz8ch)8chum,^  and  Z.  macro- 
carpa  Schvm.  Although  from  10  to  1,000  kilos  (1  kilo=2.2046 
pounds)  have  been  annually  exported  from  Venezuela,  principally 
from  the  Andean  region  of  the  country,  via  Maracaibo,  the  product 
is  not  exported  at  present  from  Ciudad  Bolivar.  The  Venezuelan 
product  is  used  principally  in  New  York  in  the  preparation  of  den- 
tifrice pastes. 

8ABSAPABILLA. 

Sarsaparilla,  found  in  large  quantities  (according  to  reports)  along 
the  Rio  Guaniamo,  a  tributary  of  the  Cuchivero,  and  existing  also  in 
many  other  places  of  the  district,  was  formerly  exported.  The  vari- 
ous species  of  smilax  which  produce  the  root  merit  attention. 


CIUDAD  BOLIVAR  COMMERCIAL  DISTRICT. 


323 


IPECAC. 


"  Raicilla  "  (or  "  epecaguana,"  as  it  is  also  called  in  Venezuela  and 
Colombia)  is  the  ipecac  of  commerce.  It  is  also  found  in  abundance, 
according  to  reports,  but  no  attention  has  jet  been  paid  to  it  for  ex- 
portation from  the  district.  It  is  sometimes  contused  with  other 
products  on  account  of  the  general  application  of  the  name  "  raicilla," 
or  "  little  root." 


KAPOK. 


Another  forest  product  is  the  kapok  of  commerce,  which  has  been 
exported  in  small  quantities,  not  at  all  proportionate  to  the  growing 
demand  of  the  world's  markets  for  the  product.  There  are  several 
good  species  of  the  Bomboxeas  in  the  district,  but  the  wool  or  silk  is 
not  collected,  on  account  of  the  lack  of  knowledge  and  interest  and 
the  scant  labor  supply. 

VEGETABLE  WAXES,  ETC. 

I 

There  are  also  several  valuable  vegetable  waxes,  varnish  gums,  etc., 
among  the  latter  the  palm  of  the  species  Ceroxylon^  foimd  also  in 
Colombia. 

Innumerable  varieties  of  medicinal  plants  and  herbs  are  found  in 
the  district. 

TRADE  IN  HIDES  AND  SKINS. 

The  exportation  of  cattle  hides  from  Ciudad  Bolivar  is  entirely 
out  of  proportion  to  the  number  of  beef  cattle  actually  in  the  imme- 
diate district^  this  number  being  given  in  1918  as  about  128,000  head. 
Hides  come  into  the  port  from  the  entire  Lower  Orinoco,  Guarico, 
Apure,  and  Arauca  River  Valleys,  being  shipped  from  great  dis- 
tances, because  the  river  system  affords  the  only  cheap  means  of 
transportation  to  market.  Hides  constitute  by  far  the  largest  item 
of  export  from  Ciudad  Bolivar.  Those  going  to  the  United  States 
in  1914,  according  to  the  figures  of  the  American  consular  agency, 
were  valued  at  $558,028  and  in  1915  at  $774,217;  in  1916  the  amount 
was  2,558,730  pounds,  valued  at  $671,574;  in  1917,  932,963  pounds, 
valued  at  $293,438;  in  1918,  393,670  pounds,  valued  at  $88,221;  in 
1919,  2,988,684  pounds,  valued  at  $1,053,507;  and  in  1920,  974,026 
pounds,  valued  at  $254,943. 

The  following  table  will  give  an  idea  of  the  volume  and  destina- 
tion of  the  port's  prewar  and  recent  trade  in  cattle  hides,  according 
to  Venezuelan  Government  statistics : 

{KUo-2.2046  pounds;  boUvar- 10.193.1 


Countries  of  destina- 

1913 

1914 

1915 

1916 

tion. 

KUos. 

Bolivars. 

Kilos. 

Bolivars. 

Kilos. 

Bolivars. 

Kilos. 

BoUvBra. 

Beltdum 

47,000 

74,883 

, 

Curacao -. 

5,625 

19,402 

irVance 

36,075 

433,567 

2,130 

86,667 

1,116,568 

5,600 

9,650 
194,861 

24,889 
534,586 

QAnnanv 

Qreat  Britain 

1,621 

1,425 

1,080 

980,242 

4,418 

2,850 

3,240 

2,580,989 

flnain   - . .   .  - ,  - ,  r .  -  ^  -  - 

1,187 

420 

738,572 

3,199 

420 

1,875,732 

Trinidad 

200 
827,499 

621 
2,170,722 

United  States 

460,351 

1,319,366 

Total.. 

1,346,471 

3,454,862 

944,690 

2,438,826 

984,368 

2,591,497 

465,976 

1,338,768 

824     VENFiZUEIA :  A  COMMEECIAL  AUD  INDUSTBIAL  HANDBOOK. 


Countries   of  destination. 


Barbados 

Canada 

Cura^o 

France 

Great  Britain. 

Trinidad 

United  States. 

Total.... 


1917 


KQos. 


»9,S68 


1,206 

20,254 

279,718 


400,746 


Bdivars. 


272,388 


3,087 

54,198 

790,265 


1,119,938 


1918 


KHos. 


10,057 
40,000 


134,378 

66,950 

201.582 


452,867 


Bolivars. 


19,596 
74,000 


307,857 
143,092 
403,794 


948,341 


1919 


KUos. 


11,000 

126,433 

95,658 

1,417,191 


1,650,282 


Bolivars. 


38,280 

412,185 

319,095 

4,717,218 


6,487,678 


The  United  States  takes  by  far  the  greater  part  of  the  exports 
of  goat  and  deer  skins  from  Ciudad  Bolivar.  Exports  to  this  coun- 
try invoiced  at  the  American  consular  agency  have  been  as  follows 
during  four  recent  years: 


Articles. 

1917 

1918 

1919 

1920 

Founds. 

Value. 

Pounds. 

Value. 

Pounds. 

Value. 

Pounds. 

Value. 

Goatskins 

10,621 
171,134 

$5,499 
41,482 

3,489 
66,170 

$1,320 

Deerskins  --...», 

49.368 

19,890 

4,809 

$731 

14,540 

Both  Curasao  and  Trinidad  take  some  goat  and  deer  skins  for 
reexport,  the  trade  being  carried  on  by  small  sailing  schooners, 
operating  frequently  in  this  interisland  traflS^c  and  pickmg  up  small 
lots  of  cargo  here  and  there. 

AIGRETTE  PLUMES. 

Aigrette  plumes  form  another  important  item  in  the  trade  of 
Ciudad  Bolivar,  the  exports  reaching  the  high  figure  of  2,483  kilos 
(1  kilo=:2.2046  pounds),  valued  at  3,165,215  bolivars  ($610,886),  in 
1913,  and  gradually  diminishing  until  in  1917  none  were  sent  out  of 
the  country,  according  to  the  official  returns.  The  law  no  longer 
permits  the  killing  oi  the  birds  for  their  feathers  (plumes),  and 
concessions  are  granted  to  individuals  for  the  right  to  collect  the 
dropped  or  moulted  plumes  found  at  the  habitual  roosting  places  of 
the  cranes.  It  may  be  supposed  that  the  very  strict  enforcement  of 
the  national  law  against  the  possession  of  firearms  has  had  a  great 
deal  to  do  with  the  falling  off  of  recent  exports. 

KINDS  OF  BIRDS. 

.  Both  the  large  and  the  small  species  of  the  aigrette  crane  exist 
in  large  numbers  in  many  parts  of  Venezuela,  inhabiting  the  low- 
lands and  also  the  overflow  areas  of  the  great  llanos.  The  larger 
bird  bears  the  long,  straight  aigrette  plume,  averaging  from  15  to  20 
inches  in  length,  and  the  smaller  bird,  exactly  like  the  large  one, 
bears  the  small,  curled  plume,  which  is  known  in  Venezuela  by  the 
local  name  of  "  pluma  cnumba  "  and  is  by  far  the  more  valuable  of 
the  two. 


CIUDAD  BOLIVAR  COKMEECIAL  DISTRICT.  325 

The  importation  of  aigrettes  into  the  United  States  is  prohibited, 
and  Dr.  William  T.  Homaday's  book,  Our  Vanishing  Wild  Life,  in 
1913  cited  the  manner  of  obtaining  the  plumes  in  Venezuela — ^that 
is,  the  slaughter  of  the  birds  in  their  habitual  nesting  places  for  the 
feathers.  As  the  trade  in  aigrettes  constitutes  a  considerable  item  in 
the  annual  exports  of  Venezuela,  the  prohibition  of  entry  of  the 
plumes  into  the  United  States,  Canada,  and  Germany  was  a  blow 
to  the  industry,  and  the  Venezuelan  Government  has  legislated  on 
the  subject.  The  national  law  of  June  26,  1917  (Official  Gazette, 
No.  13,193,  Art.  2)  prohibits  the  killing  of  the  birds  lor  their  feathers 
(plumes)  and  dictates  that  the  plumes  can  only  be  collected  from  the 
ground  during  the  molting  season,  from  July  to  November.  The 
entire  law  sets  forth  strict  provisions  for  the  conservation  of  the 
birds  and  prohibits  the  exportation  of  plumes  illegally  obtained. 
Contracts  are  provided  for,  whereby  responsible  people  can  obtain 
an  exclusive  right  to  the  collection  of  plumes  from  known  "gar- 
ceros,"  or  roosting  places  of  the  birds,  and  supervision  is  maintained 
in  the  areas  that  the  birds  inhabit. 

The  larger  bird  is  called  by  the  natives  "  garza  blanca  "  and  the 
smaller  one  "  chosmita,"  or  "  chumbita."  Commercially,  the  longer 
plumes  of  the  garza  blanca  are  known  as  aigrettes  and  the  curled 
short  plumes  of  the  chumbita  are  called  "  crosses."  Each  bird  of 
both  sizes  carries  25  to  30  plumes  on  each  wing  during  the  season. 
Those  of  the  male  bird  are  more  brilliant  and  larger  than  those  of 
the  female.  The  plumes  taken  from  killed  birds  are  known  as  "  live 
plumes"  and  have  a  higher  commercial  value  than  the  "dead 
plumes  "  collected  from  the  ground  where  they  have  been  dropped 
by  the  birds  in  molting.  It  is  claimed  that  tlEie  dead  plumes  have 
lost  their  brilliancy  and  become  brittle  and  of  less  value.  The 
chosmita,  according  to  the  opinion  of  observers,  does  not  drop  the 
plumes  in  molting  but  breaks  them  off  in  penetrating  the  growth 
where  the  nest  is.  The  plumes  from  one  well-feathered  chosmita 
weigh,  on  an  average,  1^  to  2  grams  for  each  bird,  while  those  from 
the  garza  blanca  (aigrettes)  weigh  5  to  6  grams. 

DEVELOPMENT  AND  CHARACTER  OF  INDUSTRY. 

The  exploitation  of  the  aigrette  was  begun  in  Venezuela  in  1884 
and  gave  large  returns  to  individuals  and  to  the  Government.  Dur- 
ing the  first  eight  years  of  the  industry  the  aigrettes  were  worth 
from  700  to  800  bolivars  ($135  to  $164)  per  kilo  (1  kilo  =  2.2046 
pounds),  and  the  crosses  from  1,200  to  1,600  bolivars  ($232  to  $309) 
per  kilo.  The  price  increased  in  the  period  from  1896  to  1901  to 
1,000  bolivars  ($193)  per  kilo  for  the  aigrettes  and  3,000  to  4,000 
bolivars  ($579  to  $772)  per  kilo  for  the  crosse  plumes.  After  1901 
the  price  declined,  but  again  recovered  in  1904,  remaining  firm  until 
1910,  when  it  again  declined,  increasing  again  in  1913  to  its  maximum 
of  1,800  bolivars  ($347)  per  kilo  for  the  aigrettes  and  6,000  to  8,000 
bolivars  ($1,158  to  $1,544)  for  the  crosse  plumes.  The  war  brought 
about  another  decline  in  their  value  for  export. 

Many  ranchers  of  the  Guarico  and  Apure  River  region  have  in- 
stalled "  garceros  "  or  breeding  farms  for  the  birds,  with  very  good 
results,  and  the  industry  is  fast  becoming  more  profitable.  The 
breeders  are  seeing  that  the  law  is  enforced  in  their  districts,  and 


826     VENEZUELA :  A  COMMERCIAL  AND  INDUSTBIAIj  HANDBOOK. 

poaching  is  being  stopped.  The  new  regulations  against  the  owner- 
ship and  carrying  of  firearms  in  Venezuela  is  also  having  its  effect 
in  this  regard.  No  one  is  allowed  to  have  even  a  shotgun  without 
official  permit  and  regulation,  and  the  owners  of  "  garceros  "  under 
concessions  from  the  Government  have  adopted  the  system  of  guard- 
ing the  roosting  and  feeding  places  of  the  birds  to  prevent  poaching, 
not  only  poaching  by  killing  the  birds  but  also  by  theft  of  the  dis- 
carded plumes. 

The  aigrette  industry  has  been  best  developed  in  the  llanos  south 
of  Valencia  and  around  San  Carlos.  During  March  and  April  the 
birds  are  scattered  throughout  the  plains  along  the  partly  dry  water- 
courses and  lagoons,  the  season  being  completely  dry.  Many  of  the 
birds  migrate  to  great  distances  from  their  habitual  places  of  con- 

gregation.  By  the  end  of  May  the  rainy  season  has  begun  (in  the 
anos),  but  the  bird  has  not  as  yet  grown  the  plumes.  In  June  the 
plumes  begin  to  appear  on  the  back  of  the  bird  at  the  shoulder  of 
the  wing.  These  tiny  fine  plumes  are  called  by  the  manufacturers 
of  adornments  "  nuptial  plumes  "  and  are  considered  the  most  valu- 
able, but  the  bird  must  be  killed  to  obtain  them.  By  the  end  of  July 
the  plumes  are  not  fully  developed  but  are  very  clean  and  fine  and 
constitute  an  extra  fine  grade ;  the  bird  must  be  killed  to  obtain  them. 
During  August  and  up  to  the  15th  of  September  the  plumes  have 
reached  full  development  and  are  classed  as  of  superior  grade,  des- 

Eite  the  fact  that  the  delicate  ends  have  been  slightly  damaged, 
during  the  latter  part  of  September  and  during  October  the  birds 
begin  to  discard  the  plumes  while  in  the  molting  season.  The  tips 
have  suffered  some  damage  by  this  time,  and  the  feathers  are  usually 
imperfect.  From  October  15  to  November  15  the  cranes  have  dis- 
carded the  greater  quantity  of  the  plumes,  and  by  this  time  the 
feathers  are  dirty,  the  tips  are  broken,  and  the  quality  is  very 
inferior. 

PBOGRESS  OF  BREEDING. 

From  March  to  June  the  birds  are  dispersed  throughout  the  coun- 
try, living  along  the  margins  of  the  lagoons,  rivers,  and  sloughs 
wnere  food  is  found.  (The  aigrette  crane  is  a  wader.)  By  July 
some  of  the  birds  have  begun  to  appear  in  the  "  garceros "  or  cus- 
tomary breeding  places.  X/ate  in  August  the  breeding  season  is 
under  way,  but  is  not  uniform,  as  nest  building,  egg  laying,  and 
hatched  families  are  found  all  at  one  time.  By  the  end  of  Septem- 
ber the  little  birds  are  well  grown  and  can  look  out  for  themselves. 
In  December  the  birds  begin  to  leave  the  breeding  grounds  and  dis- 
perse throughout  the  plams  and  rivers,  none  being  left  by  the  end 
of  January. 

PROCESS  OF  COLLECTING  PLUMES. 

In  July  the  owners  of  "garcero"  concessions  begin  to  establish 
the  ffuards  over  the  breeding  places  of  the  cranes.  Some  owners  watch 
the  garceros "  during  all  the  year.  The  collection  of  the  plumes 
begins  in  October  and  lasts  until  the  first  days  of  December.  The 
work  is  accomplished  by  means  of  canoes  working  along  the  water 
courses,  the  plumes  bemg  gathered  from  the  trees  and  from  the 
water.  Two  trips  are  made  over  a  given  course  each  day,  one  in 
the  morning  and  one  in  the  afternoon* 


CIUDAD  BOLIVAB  COMMERCIAL  DISTRICT.  827 

SEASONS  OF  EXPORTATION. 

In  July  the  "left-overs"  from  the  preceding  season  are  ex- 
ported to  Europe  (these  being  of  the  lowest  quality),  and  some  fine 
"  live  "  plumes  are  sent  out  to  the  coast,  having  been  brought  in  to 
San  Fernando  de  Apure  under  special  circumstances  from  the  Upper 
Orinoco  and  other  rivers  of  the  system  (that  is,  killed  birds  from 
regions  not  under  the  supervision  of  the  authorities).  In  August 
there  are  exported  such  small  amounts  of  plumes  as  have  been 
gathered  from  the  feeding  places  and  roosting  plaices  in  widely 
scattered  districts  and  some  plumes  that  have  been  obtained  by 
the  hunters  in  the  more  remote  regions  away  from  the  areas  coming 
under  the  vigilance  of  the  concessionaires  or  landowners.  During 
October  and  November  the  plumes  collected  in  the  breeding  places 
(molted  plumes)  are  exported,  this  amount  being  the  largest  and 
representing  80  to  90  per  cent  of  the  total  harvest  of  the  year. 

From  December  to  April  the  dealers  of  the  interior  buy  up  the 
small  amounts  that  come  in  from  time  to  time  from  points  of  the 
far  interior,  and  these  are  sent  down  the  Orinoco  to  Ciudad  Bolivar 
in  the  first  steamers  during  the  rainv  season — ^in  June  or  July,  ac- 
cording to  the  season  and  quantity  oi  water  in  the  tributaries  of  the 
Orinoco  reached  by  the  light  craft  plying  in  this  trade.  The  ex- 
porters estimate  the  time  for  these  plumes  to  arrive  on  the  European 
markets  just  ahead  of  the  new  season's  takings. 

The  plumes  are  carefully  classified  by  size  and  appearance,  tied 
in  small  bunches,  and  packed  for  export  in  small  ainc  or  tin  boxes, 
great  care  being  taken  not  to  damage  the  fine  thread  of  the  plume. 

GENERAL  NOTES. 

The  owners  of  "  garceros  "  maintain  that  the  hunting  of  the  birds 
destroys  the  industry,  as  they  leave  the  districts  in  which  they  are 
shot  at  and  do  not  return,  but  will  return  year  after  year  to  places 
where  they  find  they  are  unmolested  and  will  eventually  become  quite 
tame.  It  is  a  fact  that  some  long-established  and  well-guarded 
"garceros"  have  increased  the  output  of  plumes  by  100  per  cent 
since  effective  measures  were  taken  to  preserve  the  lives  of  the  birds, 
which  come  in  increasing  numbers.  The  best  "  garceros  "  are  those 
that  are  flooded  earlier  in  the  rainy  season,  this  condition  causing 
the  birds  to  congregate  and  breed  sooner,  with  the  result  that  the 
plume  is  more  fresh  and  less  broken.  The  male  birds  are  distin- 
guished from  the  females  during  the  breeding  season  by  the  fact  that 
Siey  do  riot  remain  in  the  "garceros"  at  night,  but  retire  to  cer- 
tain habitual  roosting  places  after  feeding  the  young  birds.  These 
roosting  places  are  carefully  watched,  as  here  are  found  the  plumes 
of  the  male  bird,  which  are  longer  and  more  brilliant  than  those  of 
the  female. 

Owners  of  "garceros"  pay  the  Government  an  annual  rent  vary- 
ing from  600  bolivars  ($116)  for  "  garceros  "  producing  2  to  4.75  kilos 
(1  kilo=2.2046  pounds)  of  plumes  to  as  high  as  6,000  bolivars 
($1,158)  for  a  production  of  40  kilos  or  more.  In  1913  the  Caracas 
market  paid  as  high  as  4  bolivars  ($0.77)  and  more  per  gram  for 
aigrettes  and  8  bolivars  ($1.54)  per  gram  for  the  crosse  plumes. 
Since  the  war  the  price  has  declined  very  considerably  on  account  of 
the  slack  demand  from  Europe. 


328     VENEZtTELA :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 


STATISTICS  OF  EXPORTS. 


The  following  table  shows  the  exports  of  these  plumes  from  Vene- 
zuela during  recent  years: 


[Kilo- 2.2046  pounds;  bolivar- $0,193.] 


Years. 


1910 
1911 
1912 
1913 
1914 
1915 


Kilos. 


1,189.875 
2,044.000 
1,309.000 
2,682.288 
311.114 
2,115.088 


Bolivars. 


656,815 

1,673,767 

1,332,897 

3,250,986 

163,012 

861,858 


Years. 


1916 

1917 ♦.. 

1918 

1919  (first  half) 

Total.... 


Kilos. 


850.430 

539.279 

1,143.650 

1,253.375 


13,43&099 


Bolivars. 


629,644 

476,889 

736,307 

1,369,986 


10,052,111 


The  exportation  of  aigrette  plumes  from  Ciudad  Bolivar  has 
practically  ceased  since  1915,  according  to  the  official  records  of  the 
Government,  except  for  a  few  small  shipments  to  Martinique  in  1916, 
amounting  to  61  kilos  and  valued  at  22,396  bolivars  ($4,322).  The 
big  year  for  the  trade  was  in  1913,  when  2,483  kilos  were  exported, 
valued  at  3,165,216  bolivars  ($610,886).  Of  this  amount, France  took 
1,849  kilos,  valued  at  2,215,458  bolivars  r$427,583) ;  the  United 
States.  196  kilos,  valued  at  228,551  bolivars  ($44,110) ;  and  Germany, 
215  kilos,  valued  at  292,197  bolivars  ($66,394). 

It  is  a  fact  that  the  smaller  bird  of  the  species — the  one  having  the 
crosse  plume — is  becoining  more  and  more  scarce,  and  it  is  more 
difficult  to  obtain  these  plumes.  Maracaibo,  Puerto  Cabello,  La 
Guaira,  and  Carupano  are  also  ports  of  export  for  this  product. 

COMMERCE  AND  TRADE  OF  CIUDAD  BOLIVAR  DISTRICT. 

Ciudad  Bolivar  is  the  trading  and  financial  center  of  the  State  of 
Bolivar  and  the  port  for  the  entire  river  system  of  Amazonas  terri- 
tory and  the  upper  Apure  and  Arauca  territory.  It  receives  products 
(principally  hiSes,  rubber,  etc.)  from  the  far-away  Colombian  border 
Via  the  rivers  mentioned,  and  also  controls  the  trade  and  commerce 
of  the  Venezuelan  Guiana  region  of  the  State  of  Bolivar,  via  the 
river  port  of  San  Felix  (Las  Tablas),  situated  at  the  mouth  of  the 
Caroni  River  where  it  joins  the  Orinoco.  A  few  of  the  merchants 
of  Upata,  Guacipati,  Tumeremo,  etc.,  are  in  a  position  to  import 
directly  from  foreign  markets  and  do  buy  through  export  commis- 
sion houses  with  which  they  have  long-established  relations,  the 
latter  taking  care  of  their  shipments  of  balata,  hides,  and  other 
export  products. 

The  commercial  movement  of  Ciudad  Bolivar  becomes  very  active 
during  the  period  just  prior  to  the  rainy  season  (April  and  May| , 
as  this  is  the  time  for  outfitting  the  rubber,  balata,  and  chicle  col- 
lectors, as  has  been  previously  described  (see  p.  313).  As  soon  as 
navigation  opens  on  the  upper  Orinoco,  steamers  start  to  leave 
Ciudad  Bolivar  for  the  Falls  of  Maipures,  the  upper  Arauca,  etc., 
and  goods  start  to  move  to  the  Guiana  region  via  San  Felix  and  the 
usual  overland  wagon  route,  or  in  boats  and  canoes  up  the  Caroni 
as  far  as  Gury  and  then  overland  to  Tumeremo,  etc.,  for  the  balata 
industry.  During  the  dry  season  motor  trucks  have  been  employed 
on  the  latter  route,  the  terrain  being  so  favorable  that  the  tnp  nas 


OIUDAD  BOLIVAR  OOMMEBCIAL  DISTRICT.  329 

been  made  in  a  light  passenger  car  from  El  Callao  to  Ciudad  Bolivar 
in  12  hours  by  way  oi  the  Ghiry  ford  of  the  Caroni. 

Ciudad  Bolivar  has  an  electric  lighting^  plant,  as  has  also  Upata, 
and  the  brewery  (Cervecerfa  de  Ciudad  Bolivar)  supplies  beer  and 
ice  to  the  population  of  the  capital.  Other  manufacturing  plants 
consi^  of  small  soap  and /candle  factories,  corn  mills,  and  bottled 
soda  waters. 

BANKING. 

Many  of  the  larger  business  houses  also  do  a  general  private  banlc- 
in^  business  in  connection  with  their  other  lines — the  principal  house 
hems  Dalton  &  Co.  Sues.,  of  Ciudad  Bolivar  and  Port  of  Spain, 
empfoying  British  and  Canadian  capital  and  acting  as  buyers  of 
export  products,  bankers,  and  merchants  for  the  articles  needed  in 
the  district.  The  German- Venezuelan  house  of  Blohm  y  Cia.  has 
long  been  very  active  in  this  center  and  is  the  leading  house  in  all 
lines,  being  operated  as  a  branch  of  the  Caracas  house  of  the  same 
name.  The  Caracas  house  of  Santana  y  Cia.  also  maintains  a  branch 
in  Ciudad  Bolivar. 

The  banks  of  the  country  are  represented  by  a  branch  of  the  Royal 
Bank  of  Canada  and  the  agency  of  the  Banco  de  Venezuela.  The 
Banco  Mercantil  Americano  de  Caracas  (Mercantile  Bank  of  the 
Americas)  and  the  National  City  Bank  of  New  York  also  have 
agents  here. 

COMMERCIAL  METHODS. 

As  elsewhere  in  Venezuela,  the  import  and  export  business  is  car- 
ried on  principally  through  export  commission  houses  in  New  York 
and  Europe,  these  houses  taking  care  of  items  of  export  handled  by 
the  merchants  and  shipping  miscellaneous  lots  of  general  merchan- 
dise to  their  customers,  the  accounts  being  usually  carried  in  the  well- 
known  and  much-used  "  open-account  "  system  so  lon^  in  vogue  in  the 
country.  There  is  little  specialization  in  merchandising,  except  in 
the  drug  trade,  .which  is  handled  by  licensed  pharmacists  and  in 
which  the  German  houses  lead. 

Imported  articles  are  numerous  and  varied  in  nature,  but  princi- 
pally such  as  are  suited  to  the  needs  of  a  population  living  under 
primitive  conditions.  The  largest  and  most  important  item  of  im- 
portation consists  of  cheap  cotton  goods,  with  drugs  and  medicines 
and  hardware  next  in  importance.  The  trade  barometer  may  be  said 
to  be  the  market  condition  of  rubber,  balata,  and  chicle,  unless  gold 
mining  should  again  become  important  and  thereby  stimulate  trade  as 
in  the  days  of  tne  El  Callao  bonanza. 

The  leading  merchants  include  Italians,  Corsicans,  Moroccan  Jews, 
Syrians,  Spaniards,  Sicilians,  Germans,  a  few  British,  and  Venezue- 
lans. The  Italians,  Germans,  and  Syrians  may  be  said  to  form  the 
most  influential  foreign  elements  in  commercial  circles,  though  Brit- 
ish interests  allied  with  the  commercial  element  of  Trinidad  have  re- 
cently become  an  increasingly .  powerful  factor,  taking  full  advan- 
tage of  better  foreign  banking  facilities,  the  proximity  of  Port  of 
Spain,  and  the  more  rapid  means  of  communication.  Port  of  Spain 
is,  in  reality,  the  point  of  transshipment  of  nearlj^  all  of  Ciudad  Boli- 
var's exports  and  imports,  including  those  coming  in  by  coastwise 
traffic,  the  vessels  of  the  Venezuelan  Navigation  Co.  connecting  with 
their  ooat,  the  Delta^  at  that  port. 


d30     VENEZUELA :  A  COMMERCIAL  AND  INDUSTBIAL  HANDBOOK. 


VOLUME  OF  TRADE. 


Tn  1913  the  imports  at  Ciudad  Bolivar  amounted  to  $1,176,020,  of 
which  $504,541  worth  came  from  the  United  States,  and  $953,711 
worth  of  products  were  sent  to  the  United  States  out  of  a  total  of 
$1,988,477  worth  of  exports.  From  January  1  to  June  30,  1915,  im- 
ports amounted  to  $276,936,  more  than  hijf  of  these  coming  from  the 
United  States  and  less  than  one-fourth  from  Great  Britain,  the  near- 
est competitor. 

The  declared  exports  to  the  United  States  invoiced  at  the  consular 
agency  during  four  recent  years  are  shown  in  the  following  table : 


» 

Articles. 

m? 

1918 

1919 

1920 

Pounds. 

Value. 

Pounds. 

Value. 

Pounds. 

Value. 

Pounds. 

Value. 

Balata 

603,555 
17,125 
16,146 

$300,426 
7,651 
4,529 

413,353 

28,202 

1,113 

15,050 

893,670 

1193,285 

12,562 

156 

293 

88,221 

778,538 
43,737 
47,588 

$443,356 
14,089 
15,602 

871,749 

5,878 
8,948 

8212,506 

Balsam  of  copaiba 

1.543 

HftlfsVliis 

2,346 

Cattle  bones 

Cattle  hides 

982,963 

293,438 

2,988,684 

1,058,507 

974,026 

8,904 

509,118 

254.943 

Cattle  horns 

203 

Chicle 

170,445 

45,440 

565,753 
87,835 

150,616 
4,043 

166,665 

72,400 

122,116 

812 

193 

171,184 

4,800 

10,621 

1,128 

756 

49,170 

17,119 

24,468 

97 

9 

41,481 

793 

5,499 

237,982 

386 

145,603 

Cocoa 

Coffee 

Cotton 

Deer  horns 

844 

56,170 

5,346 

3,489 

2,189 

15 

Deerslrins 

49,368 

9,890 

4,809 

731 

14,540 

Drums  (emptv) 

OoatsklTM , ,  ^ 

1,820 
492,708 

Gold 

116,569 

135,490 
756 

Household  effects 

Jewelry  waste 

683 

392 

Manele  bark 

11,666 

71 

Old  copper  and  metals . . 

2,476 

218 

337,792 

215 

89 

122,245 

Bloe.... " 

Rubber 

340,237 

162,819 

64,165 
668 

23,482 
65 

209,022 

50,016 

Salted  meat 

Samples  of  timber,  etc .... 

232 

10 

S^rpamby.  - . 

4,3i2 

1,070 

20,086 

854 

1,731 

4,813 

202 

117,101 

SilYersmfth  swAAnf tikr.  .  ^ 

SlriminineSr  r   .   a 

1,365 

22,054 

Tftpflft'lnd. . .  .  ... 

19 
607 

3 
243 

TATibf^beaPR ^ 

270, 

833 

4,051 

2,918 

2,819 
64 

1,597 

Typewriters 

65 

Water-hoc  skins 

484 

194 

28 

357 

IVIM^nim^]  Qlrinq     .    . 

All  other  aittclefl 

3,451 

99,243 

Total 

945,046 

710,330 

4,776,503 

2,151,471 

12,160,281 

1,199,962 

To  show  the  relative  importance  of  imports  from  and  exports  to 
the  various  countries,  the  following  table  xs  given  for  the  year  1919 : 


[EUo- 2.2046  pounds;  bolivar»f0.193.) 


Countries. 


Barbados 

Colombia 

Cura^^ 

France 

French  Guiana. 
Oraat  Britain.. 

Italy 

Netherlands.... 

Spain 

Trinidad 

United  States.. 


Total. 


Imports  fiom— 


Kilos. 


67,447 
'65*216 


809,662 

4,987 

21,114 

19,354 

873,842 

4,288,261 


5,639,883 


Bolivars. 


134,416 


288,236 


1,711,578 

26  056 

49,074 

46,348 

8,131,460 

7,213,240 


12,589,408 


Exports  to— 


Kilos. 


808,000 

9,613 

64,041 

11,071 

675,468 

594,362 


2,772,511 
^284,639 


6,669,705 


BoUvan. 


77,000 

19,1S9 

162,  las 

907,544 

177,868 

3,074,066 


8,796,766 
9,963,500 


17,4n,603 


CIUDAD  BOLIVAR  COMMERCIAI^  DISTRICT.  331 

During  the  year  1919  the  customhouse  of  Barrancas,  for  export 
only,  sent  877,415  kilos  of  exports,  valued  at  218,700  bolivars 
($42,209),  to  Barbados;  312,140  kilos,  valued  at  78,706  bolivars 
($16,190),  to  French  Guiana;  and  1,598,558  kilos,  valued  at  854,173 
bolivars  ($164,855),  to  Trinidad.  San  Felix  exported  a  total  of 
12,464  kilos,  valued  at  3,535  bolivars  ($682) ,  to  Trinidad  exclusively. 

FUTURE  ASPECTS  OF  TRADE  WITH  CIUDAD  BOLIVAR. 

It  has  been  seen  that  the  foreign  trade  of  Venezuela  and  its  control 
are  dependent  upon  transportation  service  and  markets  for  the  ex- 
port products  of  the  various  regions  into  which  the  country  is 
divided  commercially.  The  future  of  American  trade  with  Ciudad 
Bolivar  depends  upon  the  ability  of  this  country  to  continue  to 
absorb  the  greater  part  of  the  products  exported,  at  a  fair  market 
price,  and  to  provide  rapid  ocean  freight  service  to  and  from  th« 
port  of  transshipment — Port  of  Spain,  Trinidad.  The  keynote  of 
this  trade  in  merchandise  and  supplies  should  be  a  more  intensive 
study  of  the  details  of  the  market  conditions  and  the  demand  for 
goods,  a  wider  knowledge  of  the  district  and  its  economic  conditions, 
and  greater  attention  to  the  small  details  of  exporting,  such  as  pack- 
ing, invoicing,  packing  lists,  etc. 

Nearly  all  of  the  smaller  merchants  of  the  interior  who  now  buy 
at  wholesale  from  the  larger  importers  in  Ciudad  Bolivar  on  long- 
term  credits  (which  are  universally  based  on  the  crop,  or  harvest, 
seasons  of  balata  and  rubber)  want  to  become  direct  importers,  but 
they  have  not  sufficient  capital,  as  a  rule,  to  permit  them  to  do  this 
with  safety.  Unless  resident  agents  or  representatives  of  the  firm 
are  on  the  ground,  it  is  thought  better  to  protect  the  large  importer, 
who  has  capital  sufficient  to  enable  him  to  meet  readily  the  demands 
of  the  usual  terms  of  export  shipments  from  the  United  States  (90 
to  120  days  from  date  of  invoice) ,  and  let  him,  in  turn,  take  care  of 
the  dealer  of  the  interior,  whom  he  has  a  much  better  opportunity 
to  know  intimately.  The  very  character  of  the  trade  of  the  district 
makes  credit  risks  very  great;  there  is  constant  speculation  in  arti- 
cles of  both  import  and  export,  and  the  general  conditions  of  the 
rubber  and  balata  markets  make  credit  extensions  hazardous  in  the 
extreme,  except  in  dealing  with  long-established  and  well-known 
houses. 


TRANSPORTATION. 

OCEAN  STEAMSHIP  SERVICE. 

LINES  TOUCHING  AT  VENEZUELAN  PORTS. 

Venezuela  is  easily  accessible  by  water  by  reason  of  its  extended 
coast  line,  numerous  harbors,  and  navigable  rivers.  La  Guaira,  the 
seaport  ox  the  capital,  is  the  most  important  port  of  call  for  regular 
steamers.    The  next  important  port  is  Puerto  Cabello,  then  Caru- 

f)ano,  Quanta,  and  Cumana  (Puerto  Sucre)  on  the  Caribbean  coast 
ine,  while  Ciudad  Bolivar ^70  miles  from  the  mouth  of  the  Orinoco, 
is  the  port  for  the  great  Bolivar  and  Amazonas  territory.  Mara- 
caibo,  on  Lake  Maracaibo,  is  the  most  important  of  inland  ports,  and 
is  accessible  for  ocean-going  steamers  of  less  than  11-foot  draft,  being 
connected  with  the  Caribbean  Sea  by  a  channel  34  miles  long  and  5 
to  6  miles  wide. 

Coastwise  water  traffic  is  carried  by  the  vessels  of  the  national 
steamship  company,  the  Compafiia  Yenezolana  de  Navegaci6n,  which 
also  controls  water  traffic  on  the  Orinoco  and  on  Lake  Maracaibo. 
Semimonthly  service  is  maintained  along  the  coast  between  Maracaibo 
and  Ciudad  Bolivar,  touching  at  La  Vela  de  Coro,  Puerto  Cabello, 
La  Guaira.  Quanta,  Puertio  Sucre,  Carupano,  Eio  Caribe,  Cristobal 
Colon,  ana  Port  of  Spain,  Trinidad  (British  West  Indies),  whence 
connection  is  made  by  vessel  of  the  same  company  for  the  trip  to 
Ciudad  Bolivar  up  the  Orinoco. 

Rapid  steamer  connections  for  the  north  or  south  Atlantic  are 
afforded  by  the  steamers  of  the  various  European  lines  touching 
along  the  coast,  the  transfers  being  made  at  Trinidad,  Martinique,  or 
Barbados. 

Ocean  communication  with  foreign  countries  was  maintained  prior 
to  the  war  by  nine  steamship  companies,  as  follows  : 

The  Red  "  D  "  Line  of  steamers,  an  American  company  of  New 
York,  maintained  a  weekly  passenger  and  freight  service  between 
New  York,  La  Quaira,  Puerto  Cabello,  and  Curasao,  Dutch  West 
Indies,  transfer  for  Maracaibo  being  effected  at  Curagao. 

The  Royal  Mail  Steam  Packet  Go.^  a  British  Southampton  line, 
with  vessels  sailing  every  two  weeks  from  Barbados,  touched  at  Caru- 
pano, La  Quaira,  and  Puerto  Cabello,  and  connecting  with  Curasao, 
Colombian  ports,  and  the  Panama  Canal. 

The  Harriaon  Steamship  Co,^  a  British  line  from  Liverpool, 
touched  twice  a  month  for  freight  only  at  La  Quaira  and  Puerto 
Cabello,  with  way  ports  and  the  Canal. 

The  Covipagnie  Generale  Transatlantique.  a  French  line  from 
St.  Nazaire  and  Bordeaux,  touched  at  La  Guaira  twice  a  month 
and  once  at  Marseille. 

The  Koninglyjke  West  Indische  Mail  Dienst  {Royal  Dutch  West 
India  MaU)^  a  Dutch  line  from  Amsterdam,  maintained  semi- 
monthly service  touching  at  Carupano,  Quanta,  La  Quaira,  and 
Puerto  Cabello,  with  connections  at  Curasao  for  Maracaibo,  and  a 
route  by  way  ports  of  Colombia  to  the  Canal  and  the  Atlantic  coast 
of  Central  America. 

332 


TRANSPORTATIOlSr.  833 

Vessels  of  the  Hamburg -American  Line^  of  Germany,  arrived 
twice  a  month  at  La  Guaira  and  Puerto  Cabello. 

The  Gompania  Transatldntica  Espanola^  a  Spanish  line  from 
Barcelona,  touched  once  a  month  at  La  Guiara  and  Puerto  Cabello, 
taking  in  Curasao,  Colombian  ports,  the  Canal,  and  a  route  to 
Cuba,  etc. 

La  Veloce^  an  Italian  line  from  Genoa,  touched  once  a  month  at 
La  Guaira  and  Puerto  Cabello,  with  a  route  via  Curasao  to  Co- 
lombian ports  and  the  Canal. 

During  the  war  the  total  volume  of  tonnage  materially  decreased. 
Germany  disappeared  from  the  list  entirely,  and  the  tonnage  of 
the  other  European  countries  was  heavily  curtailed,  whereas  there 
was  an  appreciable  gain  for  the  United  States  and  a  notable  in- 
crease in  Venezuelan  coastwise  trade.  Since  the  armistice  the 
temporary  shortage  of  tonnage  has  been  relieved  with  the  reap- 
pearance of  the  usual  number  of  French,  Dutch,  British,  Italian, 
and  Spanish  boats,  the  Royal  Dutch  West  India  Mail  being 
especially  active  with  the  addition  of  new  steamers  and  more 
frequent  service. 

Increased  shipping  facilities  since  the  war  have  been  provided  by 
the  inauguration  of  the  service  of  the  new  Italian  company  known  as 
Com/pania  Transatldntica  Italiana^  with  12  new  motor  vessels 
either  already  in  service  or  under  construction,  and  with  two 
12,000-ton  Diesel-engined  freighters  now  operating  between  Genoa 
and  Callao  in  Peru,  via  the  West  Indies,  Venezuelan  and  Colombian 
ports  of  call,  Curasao,  and  the  Canal. 

The  Johnston  Line  of  steamers  has  also  extended  its  service  from 
Scandinavian  ports  and  New  York  to  Trinidad,  Venezuelan  and 
Colombian  ports,  and  the  Canal,  with  a  monthly  freight  service; 
and  cement,  paper,  and  iron  manufactures  are  now  commg  in  from 
Sweden.  The  Banco  Mercantil  Americano  de  Caracas  acts  as  agent 
for  this  line. 

The  Leyland  Line^  of  Liverpool,  has  also  placed  the  Venezuelan 
ports  of  La  Guaira  and  Puerto  Cabello  on  a  monthly  sailing  list 
for  freight. 

American  tonnage  and  ocean  service  was  increased  during  the  last 
year  of  the  war  by  the  inauguration  of  the  service  of  the  New 
Orleans  cfe  South  American  Steamship  Go.  (owned  by  W.  E.  Grace 
&  Co.)  between  New  Orleans,  the  West  Indies,  and  Venezuelan,  Co- 
lombiaii,  and  Atlantic  ports  of  Central  America,  touching  at  the 
canal  (Colon),  with  two  steamers,  one  for  freight  only  ancT one  for 
both  passengers  and  freight,  affording  a  service  with  New  Orleans 
semimonthly  for  freight  ana  once  a  month  for  passengers. 

The  Norwegian  ships  chartered  by  the  Garibbean  Steamshiv  Oo. 
(Alejandro  Angel  &  Coj  Colombians,  of  New  York)  also  made  Vene- 
zuelan ports  of  call  beginning  in  the  early  part  of  1920,  maintaining 
a  freight  service  for  transfer  of  cargo  from  Mar acaibo  for  New  York 
by  one  small  boat  operating  between  Curasao  and  Maracaibo. 

American  Minister  Preston  McGoodwin  announces  the  establish- 
ment of  a  regular  steamship  service  between  New  York  and  the  ports 
of  Venezuela  by  the  Royou,  Dutch  West  India  Mail.  The  itinerary 
will  include  Amsterdam,  Paramaribo,  Georgetown,  Barbados,  Port 
of  Spain,  Carupaiio,  Porlamar,  Cumana,  La  Guaira,  Puerto  Cabello, 


334     VENEZUELA :  A  COMMERCIAL,  AND  INDUSTRIAL  HANDBOOK. 

Curagao,  and  New  York.  On  the  return  trip  vessels  will  make 
regular  stops  at  one  of  the  northern  ports  of  Haiti.  The  service  will 
be  fortnightly. 

As  fast  as  normal  conditions  were  established,  the  European  com- 
panies were  quick  to  replace  their  former  service  and  even  added 
to  it,  as  has  been  shown.  The  United  States  has  only  one  line  (the 
Red  "  D  "  line)  carrying  passengers  between  Venezuelan  ports  and 
New  York,  and  the  vessels  of  this  line  are  inadequate.  Trade  fol- 
lows transportation  facilities,  and  there  exists  in  Venezuela  an  in- 
sistent demand  for  better  ocean  service  with  the  United  States,  and 
more  especially  better  passenger  accommodations.  No  more  impor- 
tant measure  can  be  recommended  for  the  furtherance  of  American 
trade  with  this  region  than  the  establishment  of  a  new  and  active  line 
of  steamers  which  would  touch  frequently  at  West  Indian  ports, 
Barbados,  Trinidad,  the  Venezuelan  ports  of  Carupano,  La  Guaira, 
Puerto  Cabello,  Curagao,  Colombian  ports,  and  the  Canal,  swinging 
around  in  a  big  circle  as  the  European  boats  always  do  in  order  to 
collect  enough  return  cargo  to  fill  up  the  ships  for  the  home  passage. 
Fast  and  well-appointed  steamers  should  be  put  on  the  run  to  and 
from  New  York.  Without  such  service,  a  large  portion  of  the  pres- 
ent trade  will  drift  back  to  European  channels,  more  especially  if 
Europe  takes  a  renewed  interest  in  Venezuelan  export  products. 

The  interests  of  Venezuela  would  be  distinctly  served  by  a  reduc- 
tion of  the  port  and  tonnage  dues  at  La  Guaira,  the  principal  port 
of  import  and  export,  and  by  reforms  in  the  present  too  strict  sys- 
tem of  fines  for  slight  infractions  of  the  laws  governing  shipping. 
Simultaneous  loading  and  unloading  of  cargo  is  now  permitted  by 
the  regulations,  and  this  measure  has  effected  great  economy  of  time 
and  expense  for  the  companies  engaged  in  the  trade  with  Venezuela. 

Uniform  port  and  customs  regulations  affecting  shipping  through- 
out the  Caribbean  Islands,  Venezuela,  Colombia,  and  the.  Central 
American  countries  would  do  much  to  correct  the  present  state  of 
confusion  and  difficulty  always  encountered  on  account  of  the  many 
conflicting  and  different  regulations  in  force  at  the  various  ports  of 
call. 

(Descriptions  of  Venezuelan  harbors,  their  facilities,  commerce, 
regulations,  etc.,  are  contained  in  the  several  district  reports,  begin- 
ning on  p.  118.) 

COMPETITIVE  FREIGHT  RATES  AND  COMBINATION  TO  CONTROL  OCEAN  FREIGHT. 

In  December,  1919,  the  Venezuelan  Subconference  of  the  West 
Indies  Atlantic  Steamship  Companies,  representing  the  Eoyal  Mail 
Steam  Packet  Co.,  the  Compagnie  G^nerale  Transatlantique,  the 
Frederick  Leyland  line,  Thos.  &  Jas.  Harrison,  La  Veloce,  the 
Companfa  Transatl&ntica  Espaiiola  (Barcelona),  and  the  Rojral 
Dutch  West  India  Mail,  published  a  notice  to  shippers  advising 
them  that  the  secretary  in  London  of  the  Committee  oi  the  Associa- 
tion of  West  India  Transatlantic  Steamship  Companies  stated  that 
the  terms  of  the  circulars  regarding  refund  of  freight  charges  must 
always  be  applied  strictly,  and  that,  in  consequence,  any  shipments 
made  on  the  steamers  of  competing  lines  would  cause  the  loss  to  the 
shipper  of  the  refund  made  on  shipments  on  the  vessels  in  the  asso* 
elation. 


TRANSPORTATION.  835 

This  association  refund  is  understood  to  be  a  rebate  of  10  per  cent 
of  the  freights  paid  during  the  year  to  the  steamship  companies  be- 
longing to  the  association,  provided  the  shipper  makes  no  other  ship- 
ments on  competing  lines.  This  arrangement  existed  prior  to  the 
war  and  has  since  been  renewed.  The  object  of  this  association  is  to 
prevent  competition  between  steamship  companies  serving  the  same 
ports,  a  minimum  freight  rate  being  fixed  by  the  association  and 
its  members  binding  themselves  not  to  charge  less  than  the  mini- 
mum established.  The  combination  affects  not  only  steamers  operat- 
ing between  European  ports  and  Venezuela,  but  those  to  the  United 
States  as  well,  because  the  Leyland  and  Harrison  lines  go  from  Vene- 
zuelan ports  to  the  Canal  and  then  to  the  Gulf  ports  of  the  United 
States.  The  new  Italian  line,  the  Compaiiia  Transatlantica  Italiana, 
which  is  operating  the  new  motor  ships  in  the  trade,  and  which  also 
includes  the  ports  of  the  west  coast  of  South  America^  has  not  yet 
entered  the  association  mentioned. 

VENEZUELA'S  TRADE  WTTH  NEW  ORLEANS. 

For  more  than  10  years  many  of  the  exporting  firms  of  Venezuela 
haye  been  desirous  of  entering  the  New  Orleans  market  with  hides, 
coffee,  cacao,  divi-divi,  guano,  etc.,  being  convinced  that  it  would  be 
to  their  advantage  to  find  a  competing  market  in  the  United  States, 
as  heretofore  all  shipments  have  gone  exclusively  to  New  York,  with 
few  exceptions.  Prior  to  the  establishment  of  the  service  of  the  New 
Orleans  &  South  American  Steamship  Co.  (W.  E.  Grace  &  Co.)  in 
1918,  there  had  been  no  regular  service  with  New  Orleans;  several 
Venezuelan  firms  had  imported  rice^  flour,  and  drugs  from  New  Or- 
leans and  Gulf  ports  by  means  of  transshipment  at  Colon,  but  this 
route  proved  to  be  very  unsatisfactory  on  account  of  the  long  delays 
encountered  at  Colon,  and  this  trade,  started  in  1915,  had  to  be 
abandoned. 

One  of  the  greatest  advantages  to  Venezuelan  shippers  in  selling 
their  export  products  in  New  Orleans  is  that  warehouse  charges  and 
the  freight  rates  to  inland  points  are  much  cheaper  than  those  in 
New  York.  On  account  of  the  heavy  demand  in  New  Orleans  for 
hides,  and  the  fact  that  they  are  bought  at  the  dock,  thereby  avioiding 
warehouse  charges,  exporters  are  encouraged  to  develop  this  outlet, 
for  their  exports.  St.  Louis  is  one  of  the  world's  heaviest  purchasers 
of  hides  and  divi-divi;  a  very  important  market  for  hardwoods,  and 
a  distributer  of  coffee  and  other  products  such  as  Venezuela  fur- 
nishes, with  the  added  advantage  or  cheap  water  transportation  from 
New  Orleans.  American  exports  that  can  advantageously  be  shipped 
by  way  of  New  Orleans  are  barbed  wire,  hardware,  drugs  and  medi- 
cines, machinery,  refined  petroleum  products,  textiles,  and  general 
merchandise.  Foreign  rice  can  be  shipped  by  this  route  more  cheaply 
than  from  New  York. 

The  difficulties  presented  to  the  steamship  companies  considering 
this  trade  oonsist  chiefly  of  the  trouble  experienced  in  securing  re- 
turn cargoes.  In  1917  the  Mexican  Fruit  &  Steamship  Co.  experi- 
mented with  three  boats  in  this  route,  and  the  United  Steamship  Co. 
sent  a  freighter  down  in  1916.  The  market  for  Venezuelan  products 
has  always  been  chiefly  in  New  York,  because  New  York  has  pos- 
sessed the  business  machinery  to  take  care  of  the  prompt  disposal  of 


336     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

imports  of  hides,  coffee,  cacao,  rubber,  etc.  What  seems  to  be  most 
needed  is  the  provision  of  such  machinery  at  New  Orleans  whereby 
the  export  houses  will  also  buy  or  handle  Venezuelan,  Colombian, 
and  Central  American  products,  disposing  of  them  in  the  great  mar- 
kets of  the  Middle  West.  It  is  to  be  hoped  that  the  efforts  of  the 
Mississippi  Valley  Association  will  result,  in  time,  in  the  formation 
of  adequate  facilities  for  such  an  exchange,  because,  as  long  as  New 
York  and  European  ports  continue  to  take  the  bulk  of  the  exports 
from  the  Caribbean  route  covered,  the  countries  in  question  will  also 
carry  their  buying  accounts  at  the  places  where  they  sell  their  ex- 
port products. 

RAILWAYS. 

EXTENT  AND  CHARACTER  OF  LINES— FREIGHT  AND  PASSENGER  RATES. 

Venezuela  has  11  short  lines  of  railways,  the  longest  of  which,  the 
Great  Eailway  of  Venezuela,  has  a  total  rail  length  of  178.9  kilometers 
(1  kilometer=0.62  mile),  with  4.81  kilometers  in  one  short  branch 
line.  The  total  rail  length  of  the  existing  lines  is  994.34  kilometers, 
or  530  miles,  making  7  feet  of  railway  for  every  square  mile  of 
territory,  and  11.8  inches  per  capita  of  the  population.  To  this  total 
there  should  be  added  the  7  kilometers  of  the  electric  suburban  line 
along  the  beach  from  La  Guaira  to  Macuto ;  the  5.5  kilometers  of  the 
suburban  line  from  Caracas  to  the  suburb  of  El  Valle;  the  16  kilo- 
meters of  the  narrow-gauge  line  serving  the  loading  port  of  the 
Guanoco  (Bermudez  Lake)  asphalt  deposits  in  the  State  of  Sucre ;  the 
3  kilometers  of  the  line  serving  the  asphalt  lake  of  Guanipa ;  and  the 
15  kilometers  serving  the  oil  fields  of  the  Caribbean  Petroleum  Co. 
from  the  wells  to  the  Lake  Maracaibo  loading  port  of  San  Lorenzo, 
where  the  small  refinery  is  also  located.  Of  the  total  given  above^,  44 
kilometers  should  be  deducted  from  the  mileage  in  actual  operation, 
as  the  old  narrow-gauge  line  from  the  asphalt  deposits  of  Inciarte 
to  the  River  Limon  in  the  State  of  Zulia  is  not  in  operation  at  the 
present  time,  though  the  prospective  opening  of  the  near-by  coal 
fields  by  the  Caribbean  Coal  Co.  Will  put  this  road  in  active  service 
again. 

The  average  freight  rate  is  30.5  cents  per  ton-mile;  the  average 
passenger  rate  is  6.57  cents  per  mile  for  first  class  and  4.6  cents  per 
mile  for  second  class.  All  lines  are  of  narrow  gauge,  the  various  widths 
being  3  feet  6  inches,  1  meter  (39.37  inches),  3  feet,  and  2  feet.  As  a 
rule  there  is  no  interchange  of  cars  between  the  various  roads  where 
connection  is  made.  Freights  are  based  upon  weights  without  regard 
to  class  or  value  of  the  merchandise  carried,  and  no  reductions  are 
made  for  carload  or  other  quantity  shipments.  With  one  exception, 
the  equipment  is  of  European  type  and  manufacture.  With  two 
exceptions,  the  roads  are  short  lines  from  a  port  to  a  city  or  a  more 

Eopiilous  district  on  the  highlands  not  far  from  water  transportation 
y  river  to  tidewater. 

Practically  all  of  the  existing  lines  were  built  between  1881  and 
1893  under  Government  subsidies  and  guaranties  of  interest  upon  the 
capital  invested.  This  policy  was  greatly  modified  by  the  laws  of 
1892  and  1897,  with  the  result  that  not  a  single  mile  of  track  was  con- 
striicted  from  that  time  until  the  new  law  of  1912  was  passed,  after 
which  some  extensions  of  the  existing  lines  were  made  in  1914. 


TRANSPORTATrON.  337 

In  1895  the  Government  raised  by  loan  the  sum  of  50,000,000  boli- 
vars ($9,650,000),  with  which  three  of  the  least  profitable  roads  were 
taken  over,  the  accrued  debt  upon  the  guaranties  paid,  and  the  guar- 
anteeing clauses  canceled  in  all  contracts  except  that  of  the  Puerto 
Cabello  &  Valencia  Railway,  which  in  1916  accepted  a  cash  payment 
of  £190,000  ($92,635)  in  payment  of  all  accrued  indebtedness  and  for 
the  cancellation  of  the  interest  guaranty  for  the  future. 

On  several  of  the  main  roads  traffic  is  lighter  now  than  25  years 
ago,  and  notwithstanding  the  fact  that  rail  transportation  of  freight 
is  as  expensive  as  that  of  the  cart  and  pack  mule,  scarcely  any  of 
the  enterprises  have  earned  a  fair  return  on  their  investment,  though 
certainly  transportation  has  been  quickened  and  rates  have  been 
steadied  if  not  cheapened.  It  is  very  probable  that  in  several  cases 
capital  investments  have  been  smaller  and  earnings  higher  than  the 
statistics  indicate. 

The  reasons  for  the  conditions  shown  lie  in  the  sparseness  of  the 
population  and  its  distribution  in  a  long,  narrow  strip  of  territory 
skirting  the  seaboard  (leading  to  the  construction  of  short,  uncon- 
nected lines),  in  the  very  moderate  producing  and  purchasing  power 
of  the  people,  and  in  the  general  refusal  of  the  lines  to  grant  low 
rates  for  commodities  of  small  value. 

TOTAL  CARGO  MOVEMENT. 

In  1915  the  total  cargo  movement  over  all  lines  was  280,621  metric 
tons,  which,  on  a  basis  of  300  working  days  per  year,  gives  a  daily 
movement  of  only  If  tons  per  mile  of  line.  The  total  movement  of 
freight  in  1919  was  as  follows : 

Metric  tons. 

La  Guaira  &  Caracas  Railway 76, 334 

Great  Railway  of  Venezuela 60,  495 

Carenero  Railway 6, 922 

Puerto  Cabello  &  Valencia  Railway 55, 120 

Santa  Barbara  &  El  Vlgia  Railway 17,  821 

Bolivar  Railway 38,  820 

Tachira  Railway 19  561 

Central  Railway  of  Venezuela 22,  790 

La  Ceiba  Railway 21,706 

Guanta-Barcelona   Railway 28, 862 

La  Vela  &  Coro  Railway 10,  828 

Maiquetla-Macuto  (La  Guaira)  Railway 2,  562 

Total 361, 821 

EXTENSIONS  AND  NEW  CONSTRUCTION. 

The  Tachira  Railway  (Gran  Ferrocarril  del  Tachira),  now  operat- 
ing between  the  Catatumbo  Eiver  and  La  Uraca,  in  the  direction  of 
San  Cristobal,  near  the  Colombian  frontier,  holds  a  concession,  dat- 
ing from  1913,  for  the  extension  of  its  line  to  the  city  of  San  Cris- 
tobal, and  a  preferential  right  to  build  from  there  to  Periquera  at 
the  junction  of  the  Apure  and  Uribante  Rivers.  Such  an  extension 
would  cross  the  low  watershed  of  the  southern  part  of  the  Venezuelan 
Andes  at  a  low  eKvation  and  would  extend  out  onto  the  cattle  plains. 

The  Bolivar  Railway  contemplates  several  extensions  and  branches 
at  some  future  time,  including  a  new  connecting  line  between  Bar- 
quisimeto  and  Valencia. 

79747**— 22 ^23 


338     VENEZUELA:  A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

The  Great  Railway  of  Venezuela  (German  road)  has  a  conces- 
sion for  an  extension  from  Valencia  to  San  Carlos  out  on  the 
western  part  of  the  llanos,  and  has  the  preferential  right  to  con- 
struct a  line  from  Cagua,  via  Villa  Cura  and  San  Juan  de  Los 
Morros,  to  San  Fernando  de  Apure,  crossing  the  great  plains  and 
connecting  the  Caribbean  seaboard  with  the  heart  of  the  Orinoco 
country. 

A  railway  108  kilometers  long  from  Valencia  westward  through 
Montalban  to  Nirgua  and  Barquisimeto  has  long  been  projected  and 
planned,  but  the  country  is  rough  and  broken,  for  the  most  part,  and 
it  is  doubtful  whether  such  a  line  could  be  built  cheaply  enough  to 
pay.  The  manager  of  the  Puerto  Cabello  &  Valencia  Railway  has 
a  concession  for  a  cableway  over  this  route. 

The  excellence  of  the  harbor  of  Guanta  has  suggested  extensions 
of  the  existing  railway  southward  into  the  plains  and  through  to 
Ciudad  Bolivar,  with  a  branch  to  Maturin,  but  the  country  to  be 
^.raversed  is  little  inhabited  and  the  line  would  have  to  await  a 
problematical  development  of  the  country  before  returns  could  be 
realized. 

A  new  line  from  the  coal  fields  of  the  River  Limon  district  to  the 
new  proposed  port  of  Castilletes  has  been  contracted  for  with  the 
Government  by  the  Caribbean  Coal  Co.,  an  American  concern.  Coal 
and  asphalt  would  be  practically  the  only  available  freight. 

Possibly  the  next  railway  development  to  be  actually  carried  out 
will  be  the  proposed  electric  railway  between  Maracay  and  the  new 
proposed  port  of  Turiama  Bay,  about  20  miles  by  water  east  of 
Puerto  Cabello— Turiama  Bay  having  been  selected  as  the  new  port 
site  in  preference  to  Ocumare  de  la  Costa  by  the  American  engineers 
in  charge  of  the  preliminary  survey  work.  The  proposed  line  would 
connect  Maracay  with  the  new  port  on  the  Caribbean,  the  route 
following  very  closely  the  present  automobile  road  across  the  Coast 
Range.  The  road  distance  between  Ocumare  and  Maracay  is  58.7 
kilometers,  and  the  highest  elevation  is  approximately  3,600  feet. 
The  powerful  political  and  closely  allied  cattle  interests  of  the 
country  are  planning  to  make  Maracay  an  industrial  center,  with 
new  cotton  mills  and  other  industries,  and  also  to  erect  a  new  beef- 
chilling  plant  at  the  new  port.  Maracay  controls  the  outlet  for 
beef  cattle  from  the  llanos.  It  is  proposed  to  make  Turiama  a 
free  port  equipped  with  bonded  warehouses,  etc.  Sufficient  hydro- 
electric power  can  be  developed  along  the  right-of-way  to  operate 
the  railway,  which  will  be  of  narrow  gauge,  and  for  the  proposed 
industrial  enterprises  planned  for  the  town  of  Maracay. 

A  concession  was  arranged  by  an  American  promotor  in  1919  for 
a  new  electric  line  from  the  river  port  of  San  Felix  (Las  Tablas) 
on  the  Orinoco  to  the  El  Callao  gold  fields  in  Venezuelan  Guiana, 
using  the  power  from  the  great  tails  of  the  Caroni  River,  but  the 
proposition  was  allowed  to  lapse  by  the  failure  to  provide  for  repre- 
sentation at  the  last  meeting  of  the  Venezuelan  Congress  after  the 
Minister  of  Fomento  had  agreed  to  grant  the  concession. 

9 

COMPETITION  FROM  CART  ROADS. 

Five  of  the  principal  railways  of  Venezuela  are  practically  par- 
alleled by  cart  roads  over  which  freight  is  transported  in  th^  com- 


TBANSPOETATION.  839 

mon  two-wheeled  mule  carts  of  the  country  as  cheaply  as  over  the 
railways,  this  traffic  cutting  heavily  into  the  receipts  of  the  roads. 
Even  on  the  long  111-mile  naul  between  Caracas  and  Valencia  (the 
cart  road  is  somewhat  shorter)  these  carts  compete  with  the  German 
railway  successfully.  Merchandise  and  produce  is  hauled  at  the 
same  freight  rate  per  ton  as  the  railways  cnarge,  with  the  additional 
advantage  that  goods  are  delivered  directly  to  store  or  warehouse, 
there  being  no  cartage  charges  from  a  terminal  to  the  center  of  the 
city. 

The  Government  is  carrying  out  a  very  extensive  program  of  road 
building  and  improvement  of  existing  highways,  and  the  extension 
of  the  roads  into  the  practically  undeveloped  interior  will,  in  time, 
react  favorably  for  the  railways  in  providing  additional  cargoes.  It 
is  not  possible  to  give  actual  tonnage  figures  showing  the  exact  ex- 
tent to  which  this  competition  by  cart  enters  into  the  total  tonnage 
movement  of  the  various  districts,  but  a  conservative  estimate  might 
place  it  at  about  one-half. 

RAILWAY  LAWS. 

The  law  of  June  13, 1912,  emphasized  the  provision  that  concessions 
for  new  railways  in  the  country  must  comply  with  the  clause  requir- 
ing that  exact  data  be  given  as  to  when  construction  will  commence 
and  finish.  This  same  law  also  provided  for  a  preliminary  deposit 
of  20  bolivars  ($3.86)  per  kilometer  (1  kilometer=0.62  mile)  of 
projected  line,  plus  such  sums  in  guaranty  as  Congress  shall  deter- 
mine (limited  to  50,000  bolivars,  or  $9,650).  Another  important  pro- 
vision of  the  new  law  was  that  all  new  construction  was  to  be  of 
"  standard  "  gauge  of  the  United  States  and  Canada. 

The  most  recent  legislation  on  railways  was  the  law  passed  on 
June  4,  1918,  which  reenacted  the  law  of  1917.  One  of  the  principal 
clauses  of  this  law,  in  conjunction  with  its  provisions  regarding  new 
companies,  emphasizes  the  policy  of  the  Government  to  avoid  giving 
concessions  which  may,  at  any  time,  be  the  subject  of  diplomatic 
claims. 

The  law  of  June  4, 1918,  passed  by  the  Congress  of  Venezuela  and 
approved  by  the  President  on  June  4,  1918,  refers  to  railway  conces- 
sions in  Venezuela,  and  contains  the  following  articles  that  are  new 
or  change  similar  provisions  in  old  laws : 

Abt.  3.  The  Government  of  the  Republic  will  guarantee  no  interest  on  capital 
invested  in  the  construction  of  railways. 

Aet.  11.  A  contractor  for  any  railway  is  obligejd  to  make  a  cash  deposit  of 
an  amount  proportionate  to  the  length  of  the  line  and  the  width  of  the  gauge, 
as  follows:  0.610-meter  gauge,  600  bolivars  ($116)  per  kilometer;  0.915-meter 
grange,  900  bolivars  ($174)  per  kilometer;  1.07-meter  gauge,  1,000  bolivars 
($193)  per  kilometer;  1.435-meter  gauge,  1,400  bolivars  ($270)  per  kilometer. 
The  Federal  Executive  may  reduce  this  deposit  at  his  discretion  by  as  much  as 
15  per  cent. 

Abt.  25.  The  Federal  Executive  may  or  may  not  reserve  in  contracts  the  right 
of  buying  the  railway  and  its  equipment  upon  six  months*  notice  to  the  com- 
pany. It  is  optional  to  the  Government  to  make  this  purchase  upon  appraisal, 
paying  a  20  per  cent  premium  on  the  value  of  the  enterprise,  or  by  paying  th6 
price  represented  by  the  vrlue  of  the  capital  stock  at  the  time  of  purchase  with 
a  premium  of  10  per  cent.  In  all  cases  of  purchase,  the  appraisal  shall  be  made 
by  experts,  and  the  purchase  price  shall  be  paid  to  the  company  upon  transfer 
of  property. 

Abt.  33.  The  Federal  Executive  shall  have  the  power  to  require  a  reduction 
of  rates  when  the  annual  tonnage  transported  by  the  road  shaU  exceed  a  certain 


840     VENEZTJELA :  A  COMMEBdIAL  AND  INDUSTRIAL  HANDBOOK. 

amount  to  be  fixed  in  each  case.  For  the  purpose  of' this  reduction. the  follow- 
ing rules  shall  be  followed:  If  the  average  freight  carried  in  any  year  shall 
exceed  the  amount  fixed,  the  rate  for  the  subsequent  years  shall  be  the  reduced 
minimum  rate ;  but  if  in  any  of  the  following  years  the  annual  tonnage  shall 
again  fall  to  a  lesser  amount,  the  rate  in  force  for  the  succeeding  year  shall  be 
the  pl*eceding  maximum  rate,  and  so  on,  successively. 

Akt.  43.  In  contracts  for  building  railways  there  shall  be  granted  the  right  to 
import,  free  of  duty,  during  the  first  25  years  of  the  concession,  rolling  stock, 
engines,  tools,  utensils,  and  the  necessary  implements  for  the  building,  exploi- 
tation, and  maintenance  of  the  Une  and  its  branches,  it  being  understood  that 
said  franchise  shall  lapse  if  it  be  proved  that  any  of  the  exempted  goods  have 
been  designed  for  uses  other  than  those  of  the  company  which  obtained  the  con- 
tract, without  the  express  permission  of  the  Ministry  of  Public  Works.  For  the 
purpose  of  the  exemption  from  customs  duties,  the  corresponding  provisions  of 
the  Code  of  Finance  must  be  complied  with  [that  is,  all  articles  imported  must 
be  declared  in  the  usual  manner]. 

The  law  of  June  12,  1917,  and  the  one  quoted  above  contain  the 
following  general  essential  features  having  to  do  with  the  construc- 
tion, operation,  and  equipment  of  railways  by  domestic  and  foreign 
companies  and  individuals: 

(1)  That  all  enterprises  be  approved  by  the  National  Congress. 
That  all  controversies  be  settled  in  the  Venezuelan  courts.  That 
at  least  one-half  of  the  employees  be  native  Venezuelans.  That  no 
interest  be  guaranteed  by  the  Grovernment  upon  the  capital  invested. 

(2)  That  complete  plans  of  any  railway  project  be  submitted  to 
the  Minister  of  I*ublic  Works  before  the  beginning  of  operations, 
and  that  deposits  of  money  be  placed  in  the  National  Treasury  as 
a  guaranty  of  integrity. 

(3)  That  construction  regulations  and  standard  measurements  be 
careiully  observed  as  well  as  provisions  for  roadbeds,  crossings,  etc. 

(4)  That  rival  lines,  in  close  proximity  to  those  already  con- 
structed, be  prohibited,  and  that  branches  or  prolongations  of  exist- 
ing lines  be  permitted  in  accordance  with  regulations. 

(5)  That  the  right  be  reserved  by  the  National  Government  to 
take  over  all  railways  after  40  years  of  service,  if  desired.  (See  pro- 
visions for  payment,  in  art.  26,  law  of  June  4, 1918.) 

(6)  That  rates  fixed  by  owners  be  approved  by  the  ministry,  that 
mails  be  carried  free,  and  that  reductions  be  allowed  to  Government 
employees,  as  well  as  on  materials  destined  for  the  improvement  of 
public  works. 

(7)  Privileges:  That  no  excessive  taxes  be  levied  on  the  railways; 
that  a  fair  proportion  of  the  unclaimed  public  lands  be  ceded  to 
the  new  railways;  that  free  transportation  be  allowed  for  railway 
material ;  that  railways  be  allowed  to  erect  telegraph  and  telephone 
lines,  provided  that  the  Government  be  granted  free  use  of  them ; 
and  that  the  railway  employees  be  exempt  from  military  duty  except 
in  the  case  of  international  war. 

LIST  OF  UNES— TECHNICAL  DATA— CAPITALIZATION. 

The  total  rail  length  of  the  roads  of  Venezuela  in  1920  was  1,039 
kilometers  (1  kilometer=0.62  mile),  distributed  as  follows: 

Kilometers.  Miles. 

La  Gualra  &  Caracas  Railway :  Main  line 36. 65  22. 77 

Great  Railway  of  Venezuela: 

Main  line,  Caracas  to  Valencia 178,90 

Branch;  town  of  Guigue  to  Lake  Valencia 4. 81 

183.71        114.15 


TRANSPORTATiaK.  341 

Kllometo's.  Miles. 

Puerto  Cabello  &  Valencia  Railway:  Main  line 54.75         34.02. 

Bolivar  Railway: 

Main  line,  Tucacas  to  Barqulsimeto 163.  25 

Branch,  Palma  Sola  to  San  Felipe 42. 00 , 

Branch,  Bl  Hacha  to  Aroa  Mines 13.  59 

Branch,  "  La  Oumaragua  "  Mine 3. 20 

Branch,  kilometer  13,  quarry  and  timber 10. 00 

232.04        144.41 

Tachira   Railway:   Main   line,   Encontrados    (Rio 

Catatumbo)  to  Tachira  Station  (La  Uraca) 120. 00         74. 56 

La  Ceiba  Railway: 

Main  line,  La  Ceiba  to  Motatan 81.36 

Branch,  Central  La  Ceiba  (sugar  mill) 3.  67 

85.03  53.01 

Central  Railway  of  Venezuela :  Main  line,  Caracas 

to  Yare :. 73.  48  45. 66 

Carenero  Railway :  Main  line,  Carenero  to  Guapo-  54. 40         33. 80 

Quanta-Barcelona  Railway: 

Main  line,  Guanta  to  Barcelona 18.  81 

Branch,  Barcelona  to  Naricual  mines 17.  60 

36. 41  22. 62 

Santa  Barbara  &  El  Vigia  Railway:  Main  line, 

Santa  Barbara  (Rio  Escalante)  to  El  Vigia 60.00         37.28 

La  Vela  &  Coro  Railway:  Main  line,  La  Vela  to 

Ooro 13.37  8.31 

Electric  suburban  line,  Maiquetia  to  Macuto :  Main 

line  (formerly  a  steam  line) 7.00  4.35 

Electric  suburban  line,  Caracas  to  El  Valle:  Main 

line  (formerly  a  steam  line) 5.50  3.42 

Zulia  Asphalt  Co.  Railway :  Main  line,  Inciarte  to 

Rio  Limon. 44.00  27.34 

Bermudez  Lake  Asphalt  Railway:  Main  line  to 

Cano  San  Juan 15.00  9.32 

Guanipa  Asphalt  Line  (Maturin) 3.00  1.86 

Caribbean   Petroleum   Co.*s  Railway:   Main   line, 

lake  port  of  San  Lorenzo  to  oil  wells 15.  00  9.  32 

Total 1, 039. 34        646. 20 

NoTB.^ — The  Central  Railway  of  Venezuela  has  under  construction  its  extension  from 
Tare  to  Ocumare  del  Tuy,  a  distance  of  10  kilometers. 

The  following  table  gives  technical  data  for  the  Venezuelan  rail- 
ways: 

[Meter-3.28feet.] 


RaUways. 


La  Ouaira  &  Caracas  Railway — 

Oreat  Railway  of  Venezuela 

Puerto  Cabello'  &  Valencia  Rail- 
way  

Boliyar  Railway 

Tachira  Railway 

La  Ceiba  Rail  way 

Central  Ridlway  of  Venezuela 

Carenero  Railway 

Guanta-Naricual  (Barcelona)  Rail- 
way  , 

Santa  Barbara  &  El  Vigia  RaOway , 

La  Vela  A  Coro  RaQway 

Electric,  MaiquetiapMacuto 


Gauge. 


Meters. 


0.915 
1.067 

1.067 
.610 

1 
.915 

1.067 
.916 

1.067 

1 

.915 
.915 


Feet. 


3 
3} 

3i 
2 

3.28 
3 

3 

3i 
3.28 
3 
3 


Rail 
weight. 


Pounds 
per  yd. 
65 

47 

66 

48 
40 
40 
60 
40 

40 
40 
40 
36 


Maxi- 
mum 
grade. 


Peret 
3.75 
2.20 

8.00 
6.27 
2.60 
3.00 
4.00 
3.00 

2.50 

2.00 

.84 

3.00 


Mini- 
mum 
curve 
radius. 


Bridges. 


Meters, 
43 

75 

9L6 

46.83 

75 

80 

50 

84 

125 

100 

117 

80 


Num- 
ber. 


15 
210 

33 
518 
24 
37 
75 
77 

6 
15 

8 
10 


Length. 


Timnels. 


Meters, 
281.5 
4,656.4 

915.5 
2,119.07 

785 
1,356 

724 

877 

265 

138 

366 

50 


Num- 
ber. 


8 
86 


Length. 


14 


Meters. 

379.5 

6,249.15 

76.25 


36 


48L8 


342     VENEZUELA :  A  COMIfBBCIAL  AHD  INDUSTBUOj  HANDBOOK. 

The  following  table  shows  the  capitalization  in  1920  of  the  various 
lines: 

[BollTBr^fO.ISn;  kilometer— 0.62  mile.] 


Railways. 

Initial 

kUometera. 

AvwagB 

1            MO 

:         Doo 

1         wo 

MW 

]              900 

■    i 

DOO 

If 

ss-'oo 
Tioo 

""Bh 

'S-f^ 

»:^ 

141,811 

300,  MB,  US 

B75.« 

lie  capital  of  this  "Oermau 


Tile  csplltil  invested  In  the  Quanta-Naricusl  Ralliray  includes  the  cost  of  docks,  buUdlDgg.oi 
iTcbouses,  etc. 

CAPITALIZATION  BY  NATIONALITY. 


Venemelan  capital. 

Qorem- 

Private. 

Brittab. 

-^ 

Franoh, 

Bolreari, 

Bollni,. 

BoIIcori. 

18,180,000 

Joltoort. 

BMmt,. 

78,666,666 

so,»o,aoo 

30;H«;!i00 

II,  MO,  000 

»,  680,000 

B,  199.746 

!;S;S 

600.000 

0.291,825 

The  following  table  shows  the  present  actual  investment  in  the 
various  railways  and  the  percentages  of  profit  on  the  sums  invested : 


Railways. 

prrfll. 

m? 

1018 

l»l» 

i 
i 

If 

8.85 

&.13 

a.o« 
.<» 

6.10 
1.60 
6.66 

4.4S 

i:S 

<IlT6 

m 

6.10 
.66 
6.60 

13i,SHS87 

4.40 

3.TS 

TRANSPOBTATIOK. 


348 


The  Great  Railway  of  Venezuela  (German  railway)  reduced  its 
capitalization  in  1920  from  79,000,000  bolivars  to  21,000,000  marks, 
which  at  par  is  equivalent  to  26,250,000  bolivars. 

The  Puerto  Cabello  &  Valencia  Railway  also  reduced  its  capital 
from  20,200,000  to  16,160,000  bolivars,  the  capital  of  the  company 
now  appearing  (in  English  pounds)  as  follows: 

46,000  shares  common  stock  at  £10  each £460,  000 

First-mortgage  bonds 180,000 

640.000 

The  Central  Railway  of  Venezuela  reduced  its  capital  in  1918  from 
19,650,000  to  14,792,712  bolivars,  the  capital  of  the  company  now 
appearing  as  follows  (converted  at  the  rate  of  25.25  bolivars  to  the 
pound) : 

Issued  200,000  shares  of  stock  of  £1  each £200, 000 

First-mortgage  bonds  of  £10  each 251, 700 

Second-mortgage  bonds  of  £10  each 134, 150 

585,  850 

The  following  table  shows  the  "  coefficients  of  operation  "  (the  per- 
centage of  operating  expense  with  relation  to  gross  income)  of  the 
Venezuelan  railways: 


Railways. 


La  OuMra  Ac  Caracas  Railway 

Great  Railway  of  Venezuela 

Puerto  Cabello  &,  Valencia  Railway 

BoUvar  Railway 

Tachtra  Railway 

lA  Cdba  Railway 

Central  Railway  of  Venezuela 

Carenero  Railway 

Ouanta-Naricuaf  Railway 

Santa  Barbara  &  £1  Vigia  Railway. 

1a  Vela  &  Coro  Railway 

Maiquetia-Macuto  Electric  Line 


1917 

1918 

Per  cent. 

Per  cent. 

49.00 

54.15 

6a  06 

55.08 

56.81 

50.32 

56.73 

71.73 

54.83 

45.00 

58.00 

57.35 

63.46 

72.26 

99.97 

99.94 

96.85 

98.16 

65.92 

59.11 

68.80 

98.14 

56.43 

54.81 

1919 


Per  cffttt. 
48.53 
50.99 
55.95 
71.65 
3d.  81 
45.67 
86.46 
99.53 
96.29 
50.32 
102.40 
54.06 


For  freight  and  passenger  tariffs  of  the  Venezuelan  railways,  the 
reader  is  referred  to  "Los  Ferrocarriles  de  Venezuela,"  an  official 
publication  of  the  Ministry  of  Public  Works  (Caracas,  1920),  which 
may  be  consulted  at  the  Bureau  of  Foreign  and  Domestic  Commerce 
or  any  of  its  district  or  cooperative  offices. 

Below  are  certain  significant  figures  for  the  year  1918,  covering 
the  12  active  lines  : 


Years. 


1908 
1909 
1910 
1911 
1912 
1913 
1914 
1«15 
1916 
1917 
1918 
1919 


Passengers. 

Cargo 
trans- 
ported. 

Receipts. 

Expendi- 
tures. 

Metric  tons. 

Bolivan. 

Bolimrs. 

413,004 

183,845 

8,918,561 

6,259,861 

444,162 

170,894 

8,781,479 

6,039,269 

607,061 

209,206 

9,438,801 

6,181,833 

575,074 

229,483 

10,790,199 

6,219,525 

650,492 

258,059 

12,984,562 

7,005,480 

612.404 

283,000 

13,206,259 

7,069,344 

737,741 

268,605 

12,878,699 

7,582,004 

808,803 

280.620 

12,527,864 

7,202,561 

884,456 

299,112 

12,928,170 

7,674,701 

1,006,005 

389,749 

16,235,99S 

8,317,399 

1,018,268 

334,076 

13,318,353 

8,179,896 

1,201,668 

361,821 

16,410,102 

9,469,279 

344     VENEZUELA :  A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

The  following  table  shows  the  rolling  stock  of  the  various  roads : 


Locomotives. 

Cars. 

Number 

o{  trains 

daily. 

Distance 

run 

daily. 

Average 

speed 

per  hour. 

Railways. 

1 

Num- 
ber. 

Weight. 

Freight. 

Passen- 
gers. 

La  Qualra  &  Caracas  Railway 

Great  Railway  of  Venezuela 

Central  Railway 

15 

17 
9 
2 

10 
5 
1 

15 
6 
7 
4 
5 

Tons. 
558 
656 
290 

32 
3S0 

90 

15 
309 
135 
210 

84 
126 

117 

152 

51 

1 

97 

37 

1 

277 

53 

24 

6 

22 

28 

31 

13 

6 

13 

6 

1 

9 

7 

7 

8 

4 

10 
16 
44 
8 
2 
1 
2 
2 
2 
2 
1 
2 

SXlomeUn, 
360 
802 
600 
103 
108 
109 

52 
348 
326 
468 
170 

74 

KUomeUrs. 
17 
30 
20 

Maiquetia-Macuto 

15 

Puerto  CabelIo<& Valencia  Railway. 
Carenero  Railway 

25 
20 

La  Vela  &  Coro  Railway 

20 

Bolivar  Railway 

20 

LaCeiba  Railway 

20 

nVh<»'fi  Railway'.  ... 

\b\ 

Ouanta-Naricual  Railway 

Santa  Barbara  &  El  Vigia  Railway. 

20 
15 

Total 

96 

2,886 

838 

132 

92 

3,410 

Following  is  a  synopsis  of  certain  data  for  five  of  the  more  im- 
portant Venezuelan  railways,  by  selected  years,  from  the  time  they 
began  operations : 


LA  GUAIRA  &  CARACAS  RAILWAY. 


Years. 

Number  of 
passengers. 

Product  of 

passenger 

traffic. 

Freight 

tran.s- 

ported. 

Total 
receipts. 

Total 

expenses. 

1883 

16,879 
50,505 
74,984 
65,159 
47,292 
66,865 
67,668 
78,565 
86,806 
81,214 

BolUvari. 
149,871 
432,285 
603,496 
451, 719 
378,160 
389,720 
432,861 
633,798 
476,467 
468,941 

Mdric  toru. 
7,574 
69,181 
81,748 
73,294 
60,869 
64^839 
55,670 
55,855 
70,134 
66,303 

BoHvan. 
440,838 
2,347,690 
3,330,902 
2,728,677 
1,726,631 
1,86^795 
1,874,363 
2,561,798 
2,348,695 
2,199,326 

Bolivars. 
388^547 
1,097,066 

1885 

1890 

2,144,609 
1,350,947 

1895 

1900 

968,732 
1,018,780 

1905 

1910 

926,753 
1,125,685 
1, 017, 529 

1912 

1916 

1917 

1, 077, 783 

GREAT  RAILWAY  OF  VENEZUELA. 


1894 
1805 
1900 
1905 
1910 
1912 
1916 
1917 


178,225 
152,217 
126,026 
133,407 
139,225 
194,840 
182,601 
189,812 


1,138,645 

1,046,777 

757,642 

725,002 

749, 410 

1,090,086 

1,006,622 

1,081,362 


14,932 
23,118 
24,951 
26,351 
33,528 
42,562 
37,916 
35,848 


1, 879, 494 
2,071,262 
1,872,975 
1,916,024 
2,168,700 
2,752,627 
2,653,348 
2,763,822 


2,702,303 
2,035,925 
1,537,669 
1,460,965 
1,388,455 
1,552,808 
1,575,385 
1,660,022 


CENTRAL  RAILWAY  OF  VlfNEZUELA. 


1887 
1890 
1805 
1900 
1905 
1910 
1012 
1916 
1917 


30,072 

90,003 

81,643 

67,366 

61,824 

160,742 

215,367 

268,304 

a07,8tt 


78,430 
135,695 
119,836 
88^303 
66,200 
128,682 
184.155 
237,271 
260^951 


1,129 

3,875 

2,970 

1,300 

7,246 

17,169 

26,142 

25,660 

81»196 


86,500 
180,580 
144,825 
102,925 
111,507 
282,714 
636,207 
884,047 
1,240,419 


126,630 
245,286 
159,787 
86,618 
116,201 
260,671 
430,448 
677,586 
787,196 


THANSPOBIATIOn'. 
POBRTO  OABBLLO  A  VALENCIA  BAILWAT. 


v.„. 

Number  ol 

F^uduet  of 
trafllc. 

Freight 

pitted. 

Totsl 
receipts. 

Bipenaes. 

02,299 
4B,U3 

216,66] 

ill 

JfdrfcfiHu. 
1^181 

w 
is 

*         1. 

'■■     I 

St 

\     1 

StUMFl. 

763^™ 
SH.'OJl 
«B<S10 

fflS 

BOLIVAR  BAIL  WAV. 


ISH 

Bl,S36 

|i 

116,117 
130,123 

1 

t,091,G31 

as 

^'^ 

'I'm 

tSSlS 

Below  is  a  synopsis  of  the  1918  a 
lines: 


(BoUrar-IO.lia:  in 


id  1919  statistics  for  the  12  active 

^ton— l,W5pauiidi.J 


Yeara. 

passengers. 

Prodaetof 

Freight. 

Totilre- 
celpla. 

Total  ex- 
penses. 

La  Oualra  A  Caracu  Railwar: 

as 

178,814 

220,999 

.t'S 
IgS 

z,s 

2?'l!?l 
J;  Si 

173,183 
£39,108 

63, 7W 
65,120 

3e;8M 

!!;a 

as 
as 

21,139 
2§,8a2 

8,289 
10,828 

2;  582 

lis 

317,201 
314; 139 

1;  472;  061 

as 

1;  571;  381 

B§9,S26 
1,418,069 

175,460 

m;k8 

202,176 
270,628 

Bolftw*. 

17. 

S. 

1< 
11 

■' 

1 

3U5 

OBJ 

709 
»40 

S 

070 
AN 
MS 

1S3 
U3 

763 
681 

areat  RiUwaj  ol  VeneiueUi; 

'^'"'Sr.^'?': 

81^677 

Puerlo  Cabella  &  Valencia  Railway: 

IS;^ 

Bolivar  Railway: 

625,688 

La  Cdbs  Railvay: 

QuaDta-Niricuai  BiilVsV": 

172  221 

CoroALaViOafiaUirar: 

64;7»7 

"»ffir*^">^"""' 

For  detailed  accounts  of  the  history,  lines,  right  of  way,  and  class 
of  service  and  traffic  of  all  railways  of  Venezuela  the  reader  is  re- 


346     VENEZUELA :  A  COMMEBCIAL  AND  INDUSTRIAIi  HANDBOOK. 

f  erred  to  the  chapters  on  the  several  commercial  districts,  begimiing 
on  page  118. 

When  analyzing  the  above  figures  it  should  be  borne  in  mind  that 
the  year  1919  was  one  of  extraordinary  prosperity  and  movement  in 
all  lines  of  industry  and  commerce,  and  it  is  not  probable  that  the 
tonnage  movement  will  equal  that  of  1919  for  some  time  to  come,  in 
view  of  the  general  depression  obtaining  in  the  world's  markets  for 
Venezuela's  export  products  and  the  general  financial  and  commercial 
situation  at  the  end  of  1920. 

NATIONAL  SYSTEM  OF  HIGHWAYS. 

DEVELOPMENT  OF  ROAD-BUILDING  FBOGRAM. 

From  1908  to  the  present  time  the  repair  and  construction  of  old 
and  new  cart  roads  may  be  said  to  have  constituted  the  chief  policy 
of  the  administration  of  Gen.  Gomez  and  the  principal  work  per- 
formed by  the  Ministry  of  Public  Works.  Approximately  60  per 
cent  of  the  total  appropriation  of  the  Ministry  of  Public  Works  is 
destined  for  road  work  each  year.  The  entire  commercial  districts 
of  Caracas,  Valencia,  Puerto  Cabello,  and  Barquisimeto  are  now  con- 
nected by  cart  roads  which  make  these  centers  accessible  by  auto- 
mobile. The  two- wheeled  mule  carts  of  the  country  compete  witii  the 
existing  railways  over  these  roads,  which  constitute  one  of  the  most 
important  elements  in  the  development  of  the  industrial  and  com- 
mercial life  of  the  Republic. 

During  these  last  12  years  a  total  of  2,662  kilometers  (1  kilometer= 
0.62  mile)  of  principal  highways  have  either  been  reconstructed  or 
newly  constructed ;  whereas  at  the  beginning  of  the  Gomez  adminis- 
tration there  were  only  a  few  roads,  in  a  bad  state  of  repair  and  prac- 
tically impassable  for  wheeled  traffic.  In  addition  to  the  above  total, 
1,775  kilometers  of  new  road  have  been  surveyed  and  are  actually 
under  construction  by  divisions,  the  program  including  the  work 
being  done  by  the  National  Government  and  by  the  governments  of 
the  States  under  the  existing  plan  whereby  the  National  Government 
constructs  the  main  highways  and  the  States  the  connecting  roads 
from  the  State  capitals  and  principal  centers  of  population  to  these 
highways. 

In  conjunction  with  the  national  program  of  road  building  is  that 
for  the  repair  and  construction  of  the  pack  trails  which  act  as  feeders 
for  the  main  highways  and  make  even  the  outlying  and  more  inac- 
cessible parts  of  the  States  available  for  more  intensive  development. 
Prior  to  this  work  by  the  Government  the  annual  rainy  season  was  a 
period  of  practical  paralysis  of  movement,  freights  increased  enor- 
mously in  cost  on  account  of  the  difficulties  of  transit  without  good 
roads  and  trails,  and  the  development  of  the  outlying  districts  was 
hindered.  Freights  are  now  stabilized  all  the  year  round,  resulting 
in  a  great  economy  for  the  country. 

Taking  the  territorial  area,  population,  and  national  wealth  as  a 
basis  of  comparison,  one  can  find  in  no  other  couxitry  of  Latin  America 
to-day  any  such  development  of  roads  and  highways  as  in  Venezuela. 
In  this  respect  Venezuela  is  far  ahead  of  Mexico,  a  richer  and  much 
more  populous  country. 


J 


TRANSPORTATION.  847 

GREAT  WESTBBN  HIGHWAY. 

The  Great  Western  Highway  is  the  most  ambitious  feature  of  the 
entire  road-building  program,  as  it  will  connect  Caracas  with  the 
western  frontier  at  the  ColomDian  border  near  San  Cristobal,  cross- 
ing eight  States  of  the  Republic,  and,  when  completed,  it  will  have 
a  total  length  of  872  kilometers  (1  kilometer =0.62  mile).  The  po- 
litical divisions  crossed  include  the  Federal  District  and  the  States 
of  Miranda.  Aragua,  Carabobo,  Cojedes,  Portuguesa,  Zamora,  and 
Tachira.  The  principal  towns  and  cities  placed  in  connection  by  this 
route  will  be  as  follows:  Caracas,  La  Victoria,  Maracay,  Valencia, 
San  Carlos,  Guanare,  Barinas,  Ciudad  Bolivia,  San  Antonio  de  Ca- 
paro,  San  Cristobal,  and  San  Antonio  del  Tachira.  The  route  is 
from  the  capital  (Caracas)  through  the  broken  hills  of  the  valley 
between  the  two  divisions  of  the  Coast  Range  to  Lake  Valencia  and 
the  city  of  that  name,  then  southwest  to  San  Carlos,  and  so  on  across 
the  great  plains  following  the  low  ground  at  the  foot  of  the  Westiern 
Andes  to  the  watershed  at  the  extreme  southern  end  of  the  Venezue- 
lan Andes,  where  the  pass  of  the  River  Uribante  affords  an  easy 
grade  across  the  watershed  to  the  western  divide,  San  Cristobal,  and 
the  Colombian  border.  Regions  long  practically  abandoned  by  de- 
velopment, such  as  those  of  Guanare  and  Barinas,  will  be  placed 
within  two  days'  automobile  journey  of  Caracas,  and  the  rich  agri- 
cultur.al  and  pastoral  regions  of  these  centers  will  be  opened  up  for 
modern  development. 

Following  are  the  sections  of  this  highway  that  have  been  repaired 
or  newly  constructed : 

Kilometers.     Miles* 
Caracas  to  Valencia:  Under  reconstruction;  macadam  as  far  as 

Los  Teques,  18  miles 160  99.4 

Valencia  to  San  Carlos :  Reconstructed • 80  49.  7 

San  Carlos  to  Guanare:  Repaired  from  Guanare  to  the  ford  of 

the  River  Portuguesa 11  6.8 

Guanare  to  Barinas: 

Repaired  from  ford  of  River  Guanare  to  Bocono 35  21. 7 

Repaired  from  Guanare  to  River  Guanare .__      6  3.7 

Barinas  to  San  Antonio  de  Caparo : 

Constructed  from  Barinas  to  Ciudad  Bolivia 60  37.  2 

Construction     begun    between     San    Antonio     and     Santa 

Barbara * 107  66. 4 

From  San  Antonio  de  Caparo,  main  road  west:  Construction 

started 16  9. 9 

Rio  Frio  to  San  Cristobal :  Under  construction: 31  19. 2 

506  314. 0 

Automobile  and  freight  cart  service  is  now  (1920)  maintained 
from  Caracas  as  far  as  San  Carlos,  and  the  work  of  connecting  up 
the  remaining  sections  is  being  rapidly  pushed  by  the  Government 
engineers  at  the  present  time. 

GREAT  EASTERN  HIGHWAY. 

The  Great  Eastern  Highwav  will  have  a  total  length  of  1,011  kilo- 
meters (1  kilometer=0.62  mile)  when  completed  and  will  form  the 
overland  highway  between  the  capital  (Caracas),  Ciudad  Bolivar  on 
the  Orinoco,  and  Tumeremo,  in  the  heart  of  the  balata  country  and 
south  of  the  famous  gold  fields  of  El  Callao  in  Venezuelan  Guiana. 


348     VENEZUEIA :  A  GOMMEBOIAL  AND  INDUSTRIAL  HANDBOOK. 

This  road  will  pass  through  four  States — ^Aragua,  Guarico,  An- 
zoategui,  and  Bolivar — the  route  lying  between  the  towns  of  Cagua, 
Villa  Cura,  San  Juan  de  los  Morros,  Ortiz,  El  Sombrero,  Barbacoas, 
Chaguaramas,  Valle  de  la  Pascua,  Tucupido.  Zaraza,  Aragua  de  Bar- 
celona, Cantaura,  Soledad,  and  Ciudad  Bolivar  on  the  Orinoco, 
whence  the  route  will  cross  the  River  Caroni  at  the  fords  of  Guri 
and  connect  with  the  present  wagon  road  from  San  Felix  to  Tu- 
meremo,  traversing  Venezuelan  Guiana. 

These  two  main  highways  will  traverse  the  entire  country  inland 
from  east  to  west  and  will  afford  connection  with  the  seaboard  over 
the  roads  already  constructed  or  surveyed,  as  follows:  Carretera 
Central  de  Tachira,  now  under  active  construction:  Central  de  Tru- 

i'illo,  also  under  construction;  Puerto  Cabello  to  Valencia  and  San 
Telipe;  Maracay  to  Ocumare  de  la  Costa;  La  Guaira  to  Caracas; 
Caracas  to  Guatire;  the  new  resurveyed  road  from  Barcelona  to 
Soledad,  which  crosses  the  eastern  Coast  Range  to  the  llanos  and 
which  is  now  under  construction. by  the  State  government;  the  pro- 
jected prolongation  of  the  Great  Eastern  Highway  from  Sombrero 
to  Calabozo  and  thence  on  south  across  the  plains  to  Saji  Fernando 
de  Apure;  that  of  Cumana  to  Cumanacoa — thus  connecting  the 
Caribbean  seaboard  with  the  interior  river  waterway  system  of 
transportation  and  the  eastern  section  with  the  western  frontier 
regions. 

LISTS  OF  ROADS. 

The  following  list  shows  the  highways  of  the  country  (some  of 
which  form  a  part  of  either  the  Great  Western  or  the  Great  Eastern 
Highway)  that  are  being  repaired  after  old  construction,  recon- 
structed, newly  constructed,  or  surveyed : 

Central  Highway  of  Tachira :                                                       Kilometers.      Miles. 
From  La  Uraca,  at  end  of  Tachira  Railway,  to  San  Cris- 
tobal: Under  construction 86  53.40 

Branch  road  to  Urena  on  Colombian  border,  San  Antonio 

and  Rubio :  Constructed  1920 52  32. 30 

Caracas  to  Guatire :  Paved  in  part  with  macadam 50  31. 06 

La  Guaira-Caracas :  Reconstructed  and  partly  paved  with  ma- 
cadam   - 36  22. 36 

Southern  Highway,  Caracas  to  Charallave:  An  old  road  re- 
cently repaired  and  reconstructed  in  part J 52  32. 31 

Valencia  to  Puerto  Cabello:  Newly  constructed 54  33.55 

Puerto  Cabello  to  San  Felipe:  Under  construction  at  present 
time ©1  36. 54 

Central  Highway  of  Trujillo:  Under  construction  (to  connect 
Trujillo  with  end  of  La  Ceiba  Railway  at  Motatan,  via 
Valera) 32  19.88 

Maracay  to  Ocumare  de  la  Costa :  Newly  constructed  road 59  86. 66 

Llanos  Highway,  Turmero  to  Calabozo  section:  Under  con- 
struction (completed  from  Cagua,  on  German  Railway,  to 
San  Juan  de  los  Morros) 178        110.60 

Barquisimeto  to  Trujillo:  Surveyed  (under  construction  from 

Barquisimeto  to  Carora) 310        192.62 

Barquisimeto  to  Yaritagua:  Under  construction  (to  connect 
with  Valencia  via  Nirgua  and  Montalban)^ 30  18.64 

Barquisimeto  to  Tocuyo :  Under  repair 75    .      46. 60 

Barquisimeto  to  Duaca,  on  Bolivar  Railway :  Projected  to  port 
of  Tucacas,  paralleling  railway 45         27.96 

Barquisimeto  to  Guanare:  Under  repair  between  Qulbor  and 
Sanare 17  10. 56 

Coro  to  Cumarebo :  Uilder  repair,  State  of  Falcon 35         21. 74 

Maracaibo  to  Perija,  State  of  Zulia:  Under  survey  and  loca- 
tion at  present  time 85         62.81 


TRANSPORTATION.    '  849 

Kilometera      Miles. 

Charallave  to  San  Casimiro:  Under  repair  (continuation  of  38         23.61, 

Southern  Highway  to  Ocumare) 19         11.80 

Valencia  to  Guigue :  Under  constnictlon 30         18.  64 

Maracay  to  Guigue,  south  of  Lake  Valencia  route 50         31.  06 

Valencia  to  Nirgua:  Under  repair 104          64.62 

La  Guaira  to  Macuto  Coast  Line:  Under  repair  at  present 

time 6           3. 10 

Macuto  to  La  Sabana  Coast  Route:  Repair  work  as  far  as 

kilometer  10  from  Macuto 10           6.20 

Merlda  to  El  Vigia  at  end  of  Santa  Barbara  &  El  Vlgla  Rail- 
way :  Completed  in  1920  as  far  as  Lagunillas 30         18.  64 

Tlmotes  to  Valera,  to  connect  with  La  Ceiba  Railway :  Under 

construction;  to  date : 4           2.48 

San  Felipe  to  Nirgua  Highway  section,  to  connect  with  road 
from   Valencia    to    Barquisimeto :    Under    construction;    to 

date 27          16. 77 

Cagua  to  Santa  Cruz:  Under  repair 5           3.10 

Barcelona   to   San  Mateo,   State  of  Anzoategui:   Relocation 

and   repair 55          34. 17 

Cumana  to  Cumanacoa :  Under  construction ;  to  date 22          18.  67 

Carupano  to  Tunapuy:  Reconstructed  for 10           6.21 

Carupano  to  Cariaco:  Under  construction;  to  date 40         24.85 

Rio  Caribe  to  Yaguarapato :  Under  construction 12           7.  45 

Carupano  to  Rio  Caribe :  Under  construction ;  to  date 6           3.  72 

Carupano  to  El  Pilar :  Under  construction ;  to  date 5           3. 10 

Maturin  to  Cano  Frances :  Under  construction ;  to  date 13           8. 07 

La  Vela  de  Coro,  State  of  Falcon,  to  lake  port  of  Altagracia, 

in  State  of  Zulia:  Under  survey 220        136.  TO 

San  Carlos  to  Manrique,  State  of  Cojedes,  to  connect  with 

Great  Western  Highway  :  Reconstruction 20          12.  42 

Maracaibo  to  Bellavista,  suburban  road:  Construction 5           3.10 

Tinaco  to  Pao,  to  connect  with  Greq,t  Western  Highway :  Un- 
der repair 40          24. 85 

Asuncion  to  Porlamar,  island  of  Margarita:  Construction 9            5.59 

Asuncion  to  Port  Fermin,  island  of  Margarita:  Reconstruc- 
tion  .. ^ 12            7.45 

Asuncion  to  Juan  Griego  Bay,  island  of  Margarita :  Repairs—  14            8. 69 

Juan  Griego  Bay  to  Punta  Piedras,  island  of  Margarita 32          19. 88 

Porlamar  to  connect  with  above  road,  island  of  Margarita 16           9. 94 

Porlamar  to  Pampatar,  island  of  Margarita :  Repairs 8           4. 97 

Asuncion  to  Pampatar,  island  of  Margarita :  Repairs 8           4. 97 

The  above  total  length  of  highways  that  are  being  repaired,  are 
under  construction,  or  are  under  process  of  survey  at  the  present 
time  (end  of  1920),  added  to  the  totals  given  for  the  sections  of  the 
Great  Western  Highway,  makes  2,662  kilometers,  or  1,654  miles. 

To  this  total  must  be  added  the  lengths  of  the  main  highways 

which  are  already  surveyed  and  mapped  but  on  which  construction 
has  not  yet  been  undertaken  (with  the  exception  of  important  bridge 
work  at  various  points),  as  follows: 

Kilometers.  Miles. 

Great  Western  Highway  of  Venezuela ;  remainder  of  route 

not  included  in  the  above 366  227. 42 

Great  Eastern  Highway  of  Venezuela,  from  its  connec- 
tion with  Great  Western  Highway  between  Turmero  and 

San  Mateo 1,  Oil  628. 20 

Central  Highway  of  Tachira;  branch  road  to  Urena,  San 

Antonio  and  Rubio,  not  included  in  above 25  15.  53 

Cumana  to  Cumanacoa;  remainder  of  construction 33  20.50 

Carupano  to  Tunapuy;  remainder  of  construction 20  12.42 

Maturin  to  Cano  San  Juan,  navigable  channel  to  Gulf  of 

Paria:  Under  survey  at  present  time 63  39.14 

Merida  to  El  Vigia  Highway,  to  end  of  railway:  Under 

mvyey  from  LaguniUfts  to  BJ  Vigia— •^,.^-»—^»-*,-.-^^        55  34. 17 


350     VENEZUELA. :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Kilometers.  Miles. 

Tovar  to  Santa  Cruz,  State  of  Merida :  Survey 17  10. 56 

Timotes  to  connect  with  Barquisimeto  Highway  to  Tru- 

jillo;  first  section  in  Trujillo 10  6.21 

Altagracia  de  Orituco  to  San  Fernando  de  Macaira,  State 

or   Guarico 30  18. 64 

Sabaneta  to  Puerto  Nutrias,  State  of  Zamora 145  90.09 

Total 1, 775 

HIGHWAY  LEGISLATION. 


1, 103. 00 


The  executive  decree  of  June  24, 1910,  assigned  at  least  one-half  of 
the  revenue  of  the  Ministry  of  Public  Works  to  road  construction 
and  survey  work.  The  Great  Eastern  Highway  was  created  by  an- 
other executive  decree  of  August  11,  1916;  and  the  decree  of  Janu- 
ary 24,  1917,  made  this  road  a  part  of  the  highway  from  the  river 
port  of  San  Felipe  to  Tumeremo  in  the  Guiana  region  of  Venezuela, 
with  a  donation  of  Federal  aid  to  the  State  of  Bolivar  to  defray 
construction  expenses.  As  required,  the  Central  Government  assists 
the  States  in  road  building  by  the  assignment  of  funds  from  the 
general  fund  of  the  Ministry  of  Public  Works,  and  engineers  in  the 
employ  of  the  department  are  delegated  to  serve  on  the  work  of  the 
States  building  program  wherever  necessary. 

FUNDS  ALLOTTED  TO  ROAD  CONSTRUCTION. 

In  1910  there  were  only  about  80  miles  of  road  in  Venezuela  prac- 
ticable for  wheeled  traffic.  From  that  year  up  to  the  end  of  the 
fiscal  year  1916  (June  30),  390  miles  of  road  had  been  newly  con- 
structed and  a  total  of  885  miles  of  old  road  repaired  and  put  into 
condition  for  traffic  use,  making  a  total  of  1,275  miles  at  the  close  of 
that  year.  From  1910  to  the  end  of  1916  about  $3,860,000  was  spent 
by  the  Government  in  highway  construction  and  repair  work,  a  sum 
considerably  in  excess  of  the  entire  amounts  expended  upon  the 
roads  of  the  country  during  the  preceding  35  years.  The  following 
table  shows  the  amount  invested  by  the  Government  of  Venezuela 
in  public  works  since  1915,  the  amount  allotted  to  road  work,  and  its 
percentage : 


Years. 


1915 

1916 

1917 

1918 

1919 

Total  or  average 


Total  invest- 
ment in  pub- 
lic works 
(round  num- 
bers). 


Bolivars. 
4,400,000 
6,250,000 
8,700,000 
5,800,000 

10,500,000 


35,650,000 


Total  invest 

ment  in  roads 

and  hifi;hways 

(round  num 

bers). 


Bolivars. 
2,350,000 
4,150,000 
4,800,000 
3,650,000 
6,300,000 


21,250,000 


Percentaj^ 
invested  in 
road  work. 


53 
66 
55 
63 
60 


eo 


ROAD-BUILDING  SPECIFICATIONS—METHOD  OF  CONSTRUCTION— MATERIALS  USED. 

The  territory  crossed  by  the  various  roads  and  highways  of  Vene- 
zuela is  so  varied  in  character,  from  rough  mountainous  country  to 
level  swampy  plains,  and  the  need  for  roads  has  been  so  great,  that 


TRANSPOBTATION.  851 

the  road-building  program  has  been  carried  out  in  a  rapid  manner, 
the  expense  always  being  consistent  with  the  national  policy  of 
governmental  economy  in  administration  and  expenditure,  and  the 
character  of  the  road  constructed  being  in  keeping  with  tne  imme- 
diate needs  of  the  particular  district  or  region  to  be  traversed  and  its 
economic  development.  The  Great  Western  Highway  is,  however, 
somewhat  of  an  exception  to  this  general  rule,  and,  like  the  Maracay 
to  Ocumare  de  la  Costa  road,  may  be  said  to  have  had  its  conception 
in  strategic  needs  at  the  time. 

The  word  "  highway,"  when  applied  to  roads  in  Venezuela,  is 
misleading  to  the  average  American  mind,  as  the  highways  are  really 
narrow  cart  roads,  full  of  shiarp  curves  and  heavy  grades  in  the 
mountainous  part  of  the  country  and  not  practicable  for  heavy 
motor-truck  traffic — the  general  plan  being,  as  stated  above,  to  pro- 
vide a  road  of  a  temporary  sart,  then  later  widen  and  improve  it 
as  the  needs  of  the  traffic  and  development  dictate.  Thus  the  road 
from  Caracas  to  La  Guaira  is  now  being  repaved  with  6  inches  of 
stone  (macadam),  as  are  also  the  roads  from  Caracas  to  Guatire 
and  from  Caracas  to  Valencia,  the  paving  having  reached  as  far  as 
Los  Teques,  30  kilometers  from  Caracas  (1  kilometer =0.62  mile), 
by  the  end  of  1920.  When  reconstructed  the  existing  roads  are 
widened  in  various  dangerous  places,  but,  as  a  rule,  the  usual  width 
is  not  increased.  So  far  as  automobile  traffic  is  concerned,  all  the 
roads  may  be  said  to  be  much  too  narrow,  with  too  sharp  turns  and 
heavy  grades  in  places  of  difficult  ground.  This  is  especially  true 
of  the  La  Guaira  and  Caracas  Highway,  the  Puerto  Cabello  and 
Valencia  Highway,  and  the  Caracas- Valencia  Highway,  which  are 
the  most  traveled  roads  of  the  country  at  present.  The  roads  may 
be  said  to  be  admirable  cart  roads  for  the  common  two-wheeled, 
easily  handled  mule  cart  of  the  country,  but  not  automobile  high- 
ways. 

Speaking  generally,  road-building  specifications  may  be  said  to  be 
as  follows:  Streets  and  suburban  highways  within  city  limits  are 
ordinarily  required  to  have  a  width  of  6  meters  (1  meter=3,28  feet), 
including  pavement,  sidewalk,  and  drains.  The  clear  width  of 
bridges  is  4.27  meters.  The  minimum  curve  radius  is  ordinarily  20 
meters,  but  is  often  reduced  to  15  meters  to  avoid  excessive  expense 
in  removing  earth  and  making  cuts.  The  maximum  grade  is  5  per 
cent,  but,  to  overcome  serious  obstacles  or  for  reasons  of  economy, 
the  maximum  grade  is  often  increased  to  7  and  8  per  cent  over  short 
sections  of  road.  The  bridges  must  have  sufficient  resistance  to  sup- 
port an  overload  of  480  kilos  per  square  meter  (98.3  pounds  per 
square  foot)  and  the  weight  of  a  15-ton  roller.  The  abutments  of 
bridges  are  usually  of  concrete.  Macadamizing  is  done  by  the  fol- 
lowing method,  near-at-hand  materials  being  always  used :  A  6-inch 
layer  of  country  rock,  2,  3,  4,  5,  and  6  inches  in  size  (diameter)  is 
laid  by  hand  on  the  dirt  surface  after  this  has  been  rolled  and  trav- 
eled for  a  certain  length  of  time  previously.  This  layer  averages 
about  6  inches  in  thickness.  On  top  of  this  is  placed,  after  rolling 
again,  another  layer  of  hand-broken  stone  sized  to  about  1  inch. 
This  is  rolled  into  place,  and  a  "  cap "  of  sand  and  small  washed 
gravel  taken  from  some  near-by  stream  bed  is  put  on  top  and  rolled. 
Kepair  of  "  chuck  holes "  and  washings  is  made  by  merely  filling 


852     VENEZUELA :  A  COMMBECIAL  AND  INDUSTRIAL  HANDBOOK. 

with  this  sand  and  gravel,  which  soon  cuts  out.  One  repair  man 
is  allotted  to  sections  of  from  2  to  5  kilometers  of  new  road  (1  kilo- 
meter=0.62  mile). 

Highways  outside  of  city  limits  have  a  maximum  width  of  sur- 
face of  4.5  meters  and  a  "crown"  of  one-thirtieth  to  one-fiftieth  in 
this  width.  Ditching  is  from  0.60  to  0.80  meter  in  width  at  the  top, 
0.30  to  0.40  on  the  bottom,  and  the  depth  is  usually  from  0.40  to 
0.50  meter. 

Highway  traffic  in  Venezuela  is  regulated  by  an  Executive  decree 
of  July  1,  1915,  published  in  the  Official  Gazette  of  July  2,  1915, 
No.  12549. 

In  laying  out  roads  the  engineers  have  always  followed  the  con- 
tour of  the  mountainsides  on  their  grade  allowance.  Looking  at  a 
road  from  the  distance  of  an  opposite  mountainside,  one  sees  a 
straight  line  inclined  to  the  percentage  of  grade.  Seen  from  above, 
a  road  is  a  series  of  more  or  less  sharp  curves,  twisting  with  the 
formation  of  the  hillside.  No  projections  are  cut  away,  and  bridges 
are  used  only  over  the  larger  streams.  Drains  are  usually  made  of 
the  flat,  tile-like  stone  found  in  abundance  in  most  parts  of  the 
country,  although  concrete  is  used  for  the  larger  ones,  especially  on 
the  Caracas  and  La  Guaira  Highway,  on  which  a  great  deal  of  new 
work  is  being  done. 

Sides  of  cuts  are  held  in  place  very  often  by  a  sort  of  dry  masonry 
wall  "  tied  "  into  the  bank.  In  soft  ground  on  steep  hillsides,  where 
there  is  very  often  a  great  deal  of  spring  seepage  which  keeps  the 
ground  in  a  wet  and  shifting  condition,  a  very  clever  system  for 
holding  surface  has  been  worked  out.  The  road  is  cut  down  to  the 
grade  and  width  by  bar  and  shovel  and  then  crossed  with  lines  of 
cobblestones  carefully  placed  in  position  by  hand  as  for  a  cobble 
pavement,  these  lines  (like  the  ties  of  a  railway)  being  from  6  to  8 
inches  thick,  from  1  foot  to  2  feet  wide,  and  spaced  from  3  to  4  feet 
apart,  according  to  the  nature  of  the  ground  and  the  amount  of  water 
to  be  carried  off  in  drainage.  Dirt  is  filled  in  between  these  cross- 
ings of  cobble,  and  then  the  surface  is  laid  on.  The  result  is  that 
the  water  from  the  seepages,  collecting  in  the  upper  side  ditch,  finds 
its  way  across  the  road  under  the  surface  through  the  cobble  sec- 
tions which  also  form  a  support,  in  the  soft  ground,  for  the  surfacing 
of  the  road.  The  Maracay  and  Ocumare  de  la  Costa  road  has  a 
number  of  such  sections.  This  road,  60  kilometers  in  length,  cost 
$455,682  to  construct,  or  an  average  of  $12,223  per  mile.  Mountain 
sections  cost,  where  rock  work  is  encountered,  an  average  of  $24,734 
per  mile.  The  cost  of  1  square  meter  (10.76  square  feet)  of  ma- 
cadam, as  described,  is  4.60  bolivars  ($0.89),  or  $0.75  per  square  yard. 

USE  OF  ROAD-MAKING  MACHINEBT. 

On  account  of  the  unskilled  character  of  the  labor  available,  the 
broken  nature  of  the  ground  covered  (with  its  varying  conditions  of 
soil,  rock,  topography,  etc.),  and  the  sectional  nature  of  the  work,  as 
well  as  the  lack  of  general  knowledge  of  the  advantages  of  modern 
road-making  machinery,  little  machinery  is  used  in  Venezuela  for 
highway  construction  with  the  exception  of  steam  rollers,  of  which 
the  Department  of  Public  Works  possesses  an  adequate  number  for 


TBANSPOETATION.  353 

the  work  in  the  Caracas  district  and  for  the  Great  .Western  High- 
way now  under  way. 

As  no  heavy  cuts  are  attempted  except  in  extreme  cases  in  the 
mountains,  little  dynamite  is  used  for  road  work,  but  such  work  as  is 
done  with  explosives  is  carefully  handled  and  shots  are  detonated 
with  the  hand  battery  of  plunger  type.  There  are  numerous  places 
on  the  new  roads  where  a  few  heavy  charges  of  black  powder, 
detonated  with  dynamite,  would  do  good  work  m  cutting  down  sharp 
turns  and  filling  the  intervening  depression,  but  the  engmeers  seem  to 
prefer  a  series  of  curves  on  grade. 

There  are  long  stretches  of  the  road  west  of  Valencia  now 
under  construction  at  different  points  (according  to  political  divi- 
sions of  the  States  through  which  the  road  passes)  which  are  fairly 
level,  crossing  the  llanos  of  San  Carlos  and  beyond,  where  ditching 
machines  and  graders  could  be  used  to  advantage  in  the  soft  soil. 
Rock  for  surfacing,  now  broken  by  hand  and  hammer,  could  be  much 
more  advantageously  handled  with  small  portable  rock  crushers  op- 
erated by  gasoline  engines.  Plows  for  grading  are  not  used,  the 
work  being  done  with  shovels  and  wheelbarrows ;  small  two- wheeled 
one-mule  carts  are  also  used. 

The  great  trouble  with  the  use  of  heavy  machinery  for  road  build- 
ing in  Venezuela  is  the  lack  of  draft  animals  capable  of  hauling 
heavy  equipment.  The  native  mules  are  all  very  small — ^not  over 
600  pounds  in  weight — and  it  seems  impossible  for  the  men  to  drive 
them  together  "  in  team  "  (that  is,  to  make  them  pull  together) ; 
the  manner  in  vogue  is  not  driving  but  is  more  like  herding  the 
animals  along.  Small  gas  tractors  of  the  caterpillar  type  would 
have  to  be  used  for  traction  for  ditching  machines  and  graders,  as 
well  as  for  plowing.  The  present  roads  are  too  narrow  in  width  and 
the  turns  too  sharp  to  permit  the  use  of  a  "  string  "  of  four-wheeled 
wagons  of  the  "  dump  "  type,  for  grading  and  filling,  drawn  by 
tractors. 

Another  factor  preventing  the  use  of  modern  complicated  ma- 
chinery is  the  sectional  nature  of  the  work,  which  is  carried  on  from 
various  points  at  one  time,  the  men  being  drawn  from  outlying  dis- 
tricts, as  has  been  explained,  and  the  road  not  being  completed  be- 
tween sections  under  construction.  There  is  also  the  important  factor 
of  the  varying  nature  of  the  ground  to  be  worked ;  a  machine  might 
do  very  well  m  one  place,  while  a  few  kilometers  away  it  might  have 
to  be  readjusted,  or  might  be  found  entirely  unfit  for  the  nature  of 

the  soil. 

The  Department  of  Public  Works  is  in  charge  of  an  able  and 
energetic  engineer.  Dr.  Luis  Velez,  Minister  of  Public  Works,  who  is 
interested  in  all  modern  construction  devices  and  new  machinery 
equipment.  American  manufacturers  of  road-building  machinery 
would  do  well  to  get  in  touch  with  his  office,  sending  catalogues,  etc., 
and  making  their  offers  include  the  sending  to  the  country  of  a  prac- 
tical highway  engineer  and  road-machine  man  to  cooperate  with  the 
department  m  the  l)roper  use  and  adaptation  of  the  machines.  AH 
literature  should  be  in  Spanish,  with  specifications,  so  far  as  possible, 
in  the  metric  system. 

The  roads  and  highways  of  each  commercial  district  are  described 
in  the  reports  beginning  on  page  118. 

79747*— 22 ^24 


354     VENEZUELA.:  A  COMMEECIAL  AKD  INDUSTRIAL  HANDBOOK. 
VENEZUELA  AS  AN  AUTOMOBILE  MARKET. 

The  Government  encourages  the  importation  of  motor  vehicles  by 
giving'them  a  very  low  tariff  classification.  Both  trucks  and  cars 
pay  an  import  duty  equal  to  $0.68  per  100  pounds,  ^ross  weight.* 
In  June,  1918,  it  was  estimated  that  there  were  1,600  light  passenger 
cars  in  the  country  in  active  service,  and  about  30  motor  trucks. 
The  latter  are  used  for  city  trucking,  since  for  long-distance  haul- 
ing motor  trucks  can  not  compete  with  the  two- wheeled  cart  of  the 
country,  on  account  of  the  high  cost  of  gasoline  (never  less  than  $0.60 
per  gallon),  the  high  wages  demanded  by  the  truck  drivers,  the 
very  long  and  steep  grades  with  sharp  curves  encountered  on  most 
of  the  roads  in  and  about  Caracas,  the  lack  of  sufficient  surface  on 
the  roads  to  withstand  heavy  traffic  of  this  kind,  the  high  cost  of 
tires,  replacement  parts,  and  repair  work,  and  the  apparent  inability 
of  the  native  drivers  to  appreciate  the  value  of  time  or  the  necessity 
of  keeping  the  truck  moving. 

As  an  example  of  the  difficulties  to  be  encountered  in  motor-truck 
transportation  in  Venezuela,  the  road  from  Caracas  to  La  Guaira 
may  be  cited.  This  road  is  23  miles  long  and  climbs  from  sea  level  to 
an  elevation  of  3,293  feet  in  a  distance  of  9.32  miles. 

The  present  road  mileage  of  the  country  practicable  for  automobiles 
may  be  said  to  be  about  1,600.  Associated  with  this  road  construc- 
tion (and  constituting,  to  some  extent,  both  cause  and  effect)  have 
been  the  increasing  imports  of  automobiles  into  Venezuela  from  the 
United  States  and  Europe.  The  shipments  of  American  cars  into 
the  country  have  averaged  315  per  year  for  the  last  eight  years,  the 
total  number  of  cars  exported  to  Venezuela  by  the  UnitSi  States  dur- 
ing this  period  being  2,565. 

SHIPMENTS  OF  MOTOR  VEHICLES  FROM  UNITED  STATES  TO  VENEZUELA. 

With  the  exception  of  the  calendar  year  1918.  when  war  restric- 
tions lowered  exports,  the  shipments  of  motor  vehicles  from  the 
United  States  to  Venezuela  have  gained  steadily  since  1913,  as  is 
shown  by  the  following  table  of  exports  of  commercial  and  pas- 
senger cars,  parts,  tires,  and  motor  cycles;  this  statement  does  not 
include  the  shipments  from  the  close  of  the  fiscal  year  1918  to  the 
beginning  of  the  calendar  year  1919,  when  the  motor  trucks  num- 
bered 2  and  the  passenger  cars  39 : 

1  As  a  result  of  the  efforts  of  American  diplomatic  representatives,  a  ministeriaJ  resolu- 
tion published  in  the  Diario  Oflcial  of  Venezuela  Sept.  17,  1921,  established  a  special 
schedule  in  the  Venezuelan  customs  law  for  automobile  trailers  ("  carro  de  compana 
adoptable  a  automovll  ")  under  the  next  to  the  lowest  class,  which  is  dutiable  at  the  rate 
of  0.10  bolivar  (less  than  2  cents  United  States  currency)  per  kilo  (2.2046  pounds).  The 
accessories  Included  with  trailers,  which .  are  much  in  demand  in  Venesuela  for  the  use 
of  employees  of  petroleum  development  companies,  are  to  be  admitted  at  the  same  rate, 
namely :  1  canvas  tent  with  supports,  2  mattresses,  2  quilts,  4  pillows,  1  stove,  1  suspen- 
sion draft  board,  1  electric-light  socket  and  its  extension  cord,  and  1  folding  table.  Tnese 
accessories  were  formerly  dutiable  at  rates  ranging  from  not  less  than  fourth  class,  15 
cents  duty  (United  States  currency)  per  kilo,  to  sixth  class,  which  pays  60  cents  duty 
(United  States  currency)  per  kilo. 


TRANSPOBTATIOK. 


355 


Periods. 

Commerdal 
cars. 

Passenger 
cars. 

Parts. 

Tires. 

Motor 
cycles. 

Total 

Num- 
ber. 

Value. 

Num- 
ber. 

Value. 

value. 

Fiscal  ye&rs: 

1913 

23 
12 
3 
6 
14 
16 

41 
166 

134,291 
28,228 
7,164 
13,029 
28,602 
12,410 

24,679 
107,956 

104 
126 
227 
618 
542 
160 

293 

869 

$109,499 
102,073 
143,086 
314,156 
327,507 
97,485 

300,888 
812,743 

120,703 
36,286 
28,760 
40,783 
87,768 
67*873 

110,496 
257,934 

110,708 

20,439 

32,635 

71,849 

128,966 

166,612 

226,953 
285,497 

$3,466 

4,726 

912 

466 

4,746 

573 

1,885 
2,384 

$178,082 

1914 

191,751 

1916 

212,547 

1916 

440,273 

1917 

577,489 

1918 

281,953 

Calendar  years: 

1919 

664,801 

1920 

1,466,514 

MARKET  FLUCTUATIONS. 

The  automobile  market  in  Venezuela  (the  center  of  which  is  in 
the  ca{)ital,  Caracas,  with  the  next  most  important  district  that  of 
Valencia  and  Puerto  Cabello)  at  the  end  of  1920  was  at  a  point  of 
saturation,  following  heavy  imports  of  light  cars  during  the  two 
preceding  years.  With  greatly  decreased  market  prices  for  the 
country's  export  products,  principally  coffee  and  cacao,  upon  which 
the  general  economic  condition  of  the  country  rests,  the  ready  de- 
mand for  cars  that  prevailed  during  1919  and  the  first  part  of  1920 
had  almost  ceased  and  the  country  was  facing  a  period  of  retrench- 
ment and  readjustment  following  a  period  of  speculation,  over- 
extension of  credit,  etc.  It  remains  to  be  seen  just  how  far  the 
increased  provision  of  new  roads  penetrating  into  a  territory  as  yet 
undeveloped  will  counterbalance  present  economic  conditions.  In 
view  of  the  scant  population  and  general  lack  of  labor  in  the  rural 
districts,  and  the  present  unfavorable  market  condition,  it  is  very 
doubtful  whether  the  quantities  and  values  of  the  1919  and  1920 
imports  of  automobiles  will  be  repeated  for  several  years  to  come. 

AVERAGE  PRICES  OF  CARS  AND  TRUCKS  IMPORTED. 

The  average  price  of  passenger  cars  exported  from  the  United 
States  to  Venezuela  has  varied  considerably ;  in  1913  it  was  $1,052, 
in  1917  it  fell  to  $604,  in  1919  it  rose  to  $1,026,  and  in  1920  it  dropped 
slightly,  to  $936.  Motor  trucks  have  also  changed  in  price,  the 
average  being  $1,490  in  1913,  $2,035  in  1917,  and  only  $599  in  1919 
and  $692  in  1920.  This  change  in  the  average  cost  of  cars  has  been 
due  to  the  increasing  purchasing  power  of  the  middle  class  of  the 
people  and  to  the  more  general  use  of  the  automobile  for  country 
transport,  combined  with  the  better  sales  agencies  in  the  trade,  the 
demand  being  for  the  cheaper  grade  of  light  car,  which  is  much 
better  suited  to  the  narrow,  unpaved  highways  of  the  country  than 
are  heavy  cars. 

TOTAL  IMPORTS  OF  AUTOMOBILES. 

The  official  statistics  of  Venezuela  show  that  in  the  last  pre-war 
year  the  United  States  sent  two-thirds  of  the  total  number  of  cars 
imported  into  Venezuela,  while  the  remaining  third  was  contributed 
by  European  countries,  among  which  France  held  the  leading  place. 


356     VENEZXJEIA:  a  commercial  AKD  IIT^DUSTBIAIi  HANDBOOK. 

After  1914,  however,  the  only  imports  other  than  those  received 
from  the  United  States  were  transshipments  from  Trinidad  and 
neighboring  parts  of  Colombia.  The  following  table  shows  the  total 
imports  of  motor  vehicles  in  1913, 1916,  and  1919 : 

[1010-2.2046  pounds;  boUvar-|0.193.] 


Countries  of  origin. 


United  States.... 

France 

United  Kingdom. 

Netherlands 

Germany 

Italy 

Colombia 

Curaoao 

Trinidad 


Total. 


1013 


Kilos. 


226,296 

34,677 

24,544 

25,609 

6,590 

525 


317,240 


BoUvars. 


736,219 

147,677 

93,782 

87,262 

18,200 

1,900 


1,085,040 


1915 


Kilos. 


544, 747 
1,570 


2,305 


3,908 


652.530 


Bolivars. 


1,245,323 
6,000 


3,500 


14,550 


1919 


KUos. 


517,478 


2,490 
1,200 
1,713 


1,269,373 


522,881 


Bolivars. 


1,359,671 


15,600 
4,000 
6,742 


1,386,013 


CUSTOMS  DUTIES. 

An  American  consul  warns  exporters  not  to  include  extra  wheels 
or  other  spare  parts  with  shipments  of  automobiles  to  Venezuela,  as 
such  extras  would  cause  fines  by  the  customs.  The  import  duty  on 
motor  cars  and  trucks  amounts  to  $0.68  per  100  pounds  of  gross 
weight,  on  motor  cycles  to  $3.43  per  100  pounds  of  gross  weight,  and 
on  automobile  parts  and  tires  to  $10.28  per  100  poun(£i  of  gross  weight. 

AGENCIES. 

The  capital,  Caracas,  is  considered  the  best  location  for  a  general  • 
agency ;  the  capital  is  the  center  of  the  commercial  and  financial  life 
of  the  country  and  of  the  automobile  business,  as  more  than  half  of 
the  cars  used  in  Venezuela  are  found  here  or  in  this  district.  Sub- 
agencies  might  be  established  with  good  results  at  Maracaibo  (to 
take  care  of  the  entire  Maracaibo  and  Andean  region  of  Venezuela 
and  the  Cucuta  region  of  Colombia) ,  at  Valencia,  Puerto  Cabello,  and 
Barquisimeto,  though  this  latter  point  could  also  be  taken  care  of 
from  Puerto  Cabello. 

EUKOPEAN  COMPETITION. 

The  only  active  competition  to  be  expected  by  American  automobile 
manufacturers  in  the  Venezuelan  market  is  that  from  Italy  and 
Germany.  Toward  the  close  of  1920  the  Fiat,  of  Italy^  placed  an 
agency  m  Caracas  with  a  local  concern  and  was  preparing  to  ship 
both  light  cars  and  a  small  gas  farm  tractor  to  compete  with  the  well- 
known  American  makes  of  both  of  these  machines.  One  sample  car 
had  reached  Caracas  by  November,  and  it  was  seen  to  be  a  very  at- 
tractive small  five-passenger  car  which  would  retail  at  a  price  to  com- 
pete with  American  cars  of  the  same  size  and  type.  A  well-known 
German  automobile  company  had  also  placed  a  small  light  car  on  the 
market  in  November,  1920,  and  additional  shipments  were  promised 
in  the  near  future.  The  low  value  of  the  German  mark  and  Italian 
lira  made  purchase  of  those  cars  additionally  attractive  to  Vene- 


TRANSPORTATIOK, 


857 


zuelan  buyers  in  comparison  with  American  cars,  which  were  being 
adversely  affected  by  the  high  premium  on  the  dollar. 

TAXES  IMPOSED  BY  GOVERNMENT  ON  TRUCKS  AND  CARS. 

The  only  taxes  imposed  by  the  Government  of  Venezuela  on  pas- 
senger cars  is  the  import  duty  already  mentioned.  All  passenger 
cars  pay  a  monthly  tax  of  10  bolivars  ($1.93)  to  the  municipality, 
and  no  other  form  of  tax  is  paid  unless  the  cars  are  used  for  hire  or 
in  the  public  service  for  fare  or  pay.  Taxicabs  pay  at  the  rate  of  20 
bolivars  f$3.86)  per  month  to  the  municipality,  these  cars  being  in- 
variably nve  or  seven  passenger  touring  cars  operating  at  "  per-hour  " 
rates.  Commercial  trucks  pay  a  tax  to  the  municipality  of  40  boli- 
vars ($7.72)  per  month.  A  driver's  license,  which  is  paid  only  once 
(and  then  for  drivers  of  public  cars  only),  costs  10  bolivars  ($1.93). 

Motor- vehicle  dealers  pay  to  the  municipality  the  usual  600  bolivars 
($115.80)  municipal  agency  tax,  paid  by  all  agents  of  foreign  or  do- 
mestic concerns.  If  the  dealer  is  engaged  in  buying  and  selling  cars, 
accessories,  etc.,  the  tax  is  assessed  according  to  the  annual  volume  of 
business  done. 


FOREIGN  TRADE. 

The  first  perceptible  impulse  to  Venezuelan  commerce  became 
manifest  after  1843,  as  a  result  of  legislation  organizing  navigation 
and  giving  access  to  the  harbors  of  the  RepuDlic,  There  was  a 
gradual  increase  until  1860,  the  leading  countries  with  which  trade 
was  maintained  being  the  United  States,  Great  Britain,  Francej  and 
Germany,  in  the  order  named.  A  protective  system  was  first  insti- 
tuted in  1896,  the  customhouse  regulations  prohibiting  the  importa- 
tion of  merchandise  that  tended  to  injure  similar  national  products. 

By  this  time  the  chief  articles  of  importation  were :  From  the 
United  States,  grain,  hams,  butter,  kerosencj  marble,  wood,  paper, 
caustic  soda,  potash,  salt«d  meats,  chickens,  biscuits,  and  machinery; 
from  England,  coal,  cement,  railway  equipment,  agricultural  imple- 
ments, iron  in  bulk,  and  cotton  cloth ;  from  Germany,  writing  ma- 
terials, rice,  cigars,  beer,  drugs,  medicines,  glass,  cheese,  sweets,  per- 
fumery, silks  and  cottons. 

TOTALS  FOR  VENEZUELAN  COMMERCE. 

The  tables  below  show  total  figures  for  the  commerce  of  Venezuela : 

TRADE  BY  FISCAL  YEARft 
[1  bolivar- to.  I»3.) 


Years. 

import,. 

ExportB. 

Years. 

!..«. 

ETpati^ 

fii>liHiri. 

11:1 
S;S:S 

a'iss 

il 
1     1 

J    i 

tfl? 

BO^. 

Z%-Z 

I 

IM 

5 

i 

TRADE  BY  CALENDAR  YEARa 


Years. 

,.„„. 

■w™. 

Y^r,. 

Imports. 

..p™. 

BoUwai. 
63,S58,19e 
50,849,891 
GO, 601, 978 

III 

Bolivan. 

8  ,182,837 

SSI 

Bolfnri. 
T2.47J,M3 

lH,eM,88« 
T7,2M,BS) 

Botivvt. 

FOREIGN  TRADE.  859 

EXPORT  FIGURES. 

In  the  following  tables,  detailed  figures  are  given  for  the  export 
trade  of  Venezuela : 

EXPORTS   BY   PRtNCIPAL  ARTICLES. 

[1  boUvar- 10.193.1 


„,,„. 

m» 

1910 

.... 

1912 

i-U, ' 

clhar: 
7n,306 
050,643 

11,36«,SJ0 
3,872, BBS 

1           4S 

1,B73,767 

BM«i 

ll 

,. 

817,437 

m'sil 

220,978 
Ua.458 

l,00t,3S3 
l,«04,S62 
«»,130 

A.:... 

ma 

.... 

1918 

IBIB 

B 

,JS3 

&20,M4 

53»,1S6 
912,702 

671,080 

«a3)a43 

ffr-fi. 

floifwr*. 

!;S;S 

IB,  798,  DM 
1,383,188 

'.lis 

738,307 

1  S,481.139 

388,852 

2,  MS,  935 

is 

3,BS7,6B8 

1,699.274 

3,985 

899 
8,835 

1 

S3t 

826 
87S 

889 
109 

340 

2;*^;^ 

"^w 

3,(»9,35S 

EXPORTS  BY  COUNTRIES. 


Coiintrtasoldestbiitlon. 

1909 

1910 

IBU 

1BI2 

678,868 

4;8»0 
1,228;  817 

BoUntri. 
415,314 

30i;933 
77,332 

'°^;t8 

494,   50 
795    69 
8,778  934 
31,928,360 
22,120  2(rt 
738,387 

6,M0,867 

BM^.. 

Fanee 

5;5»;7;» 

6,678; 850 

149,285 
13,42D;ie7 

32,687;  T7S 

36,824,741 
20,428,642 

i;ioi;d42 

r.m'M 

8,61.1,874 
3i;4B5;084 

10,714,031 
38;725:030 

'    ' 

360    VENEZUELA :  A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 


EXPORTS  BY  COUNTRIES— Continued. 


Countries  of  destination. 


Aruba 

Barbados 

Brazil 

Canary  Islands... 

Colombia 

Cuba 

CuraQao 

Denmark 

France 

Grenada 

Guadeloupe 

Guiana,  French.. 

Italy 

Martinique 

Netherlands 

Norway.* 

Panama 

Porto  Rico, 

Santa  Lucia , 

Spain 

S'^eden 

Trinidad 

United  Kingdom . 
United  States 


1915 


Bolivars. 


17,446 


14, 


125,945 
235,984 
101,920 
662,931 
128,216 
950,562 
1,950 


2, 


479,802 
713, 129 


10, 


1. 
5, 

68, 


912,146 
232,965 
10,003 
11,050 
403,071 
469,617 
215,987 
929,385 
224,474 
238,925 


1916 


Bolivars. 


16,255 

672,000 

84,775 

342,264 

90,190 

8,758,710 

140,560 

22,418,087 

7,271 


419,735 
2,419,224 

262,116 
3,296,850 


3,785 

14,300 

298,374 

10,429,477 


4,074,352 

2,786,443 

61,117,983 


1917 


Bolivars. 
38,349 
331,770 


142,364 

600,399 

6,880 

9,218,685 

25,894 

14,836,083 

24,734 

45,890 

257,734 

1,423,267 

491,664 

805,270 


823,091 

1,492,290 

12,075,956 


6,037,621 

5,922,299 

66,282,822 


1918 


Bolivars. 
106,330 
450,192 


40,150 

612,203 

719, 151 

15,041,452 


8,468,912 
26,069 


421,377 
1,142,422 
1,178,677 
2,397,634 


26,670 

327,166 

2,971,202 

8,873,769 


9,892,129 

3,653,497 

46,055,107 


1919 


Bolivars. 
102,678 
443,351 


583,371 

614,955 

1,211,345 

17,853,187 


53,812,104 

3,155 

79,300 

440,060 

617,993 

1,528,88ft 

13,216,192 


7,996 

123,560 

757,550 

16,815,279 


12,306,157 

15,514,970 

122,372,096 


EXPORTS  BY  CUSTOMHOUSES. 


Customhouses. 

1915 

1916 

1917 

1918 

1919 

Barrancas 

Bolivars. 

333, 234 

5, 748, 780 

16, 107, 767 

4,521,494 

363,326 
31, 124, 251 

780, 114 
35, 573, 803 

221, 225 
25,  QiH,  2JsO 

827, 481 

Bolivars. 

806,470 

5,438,172 

11,987,709 

3,806,836 

396, 570 

29,855,276 

1,668,255 

35, 849,  Oil 

213,641 

27, 425, 248 

201,  OGl 

Bolivars. 

625,971 

4,550,824 

1^792,635 

5,268,851 

453,031 

31,014,469 

2, 523, 220 

32,265,603 

362, 349 

28,368,189 

170,608 

53,705 

1,582.920 

Bolivars. 

370, 843 

3, 121, 173 

11,732,735 

5,529,989 

447,368 

28,003,024 

1,562,069 

28,696,481 

770,950 

21,053,151 

239, 055 

214,940 

916.450 

Bolivars. 
1, 151, 579 

Canipano 

7,857,015 
17. 477, 003 

Ciudad  Bolivar 

Cristobal  Colon 

7,596,840 

Guanta , 

-  1,301,050 

La  Guaira 

55,094,918 

3,560,053 

77,332,398 

500,759 

La  Vela 

Maracaibo 

Pampatar 

Puerto  CabeUo 

83,126,353 

2,606,983 

637,383 

Puerto  Sucre 

RIoCaribc 

Tucacas 

420.  S79 

San  Antonio  del  Tachira 

15,680 

3,600 

Tucacas 

1,582,920 

916,450 

420,879 

Venezuelan  official  statistics  always  show  a  smaller  total  of  ex- 
ports to  the  United  States  than  do  export  declarations  made  in 
American  consulates.  This  is  due  to  the  fact  that  values  of  export- 
able products  are  usually  understated  and  many  articles  declared  in 
the  customhouses  for  Curagao  and  Trinidad  are  invoiced  for  the 
United  States. 

The  most  noticeable  feature  of  recent  statistics  of  exportation 
from  Venezuela  is  that  food  products  such  as  sugar,  corn,  corn 
meal,  lard,  coconut  oil,  cottonseed  oil,  and  beans  have  all  been  ex- 
ported in  considerable  quantity.  Before  the  war  all  these  articles 
were  imported  into  Venezuela,  whereas,  under  the  stimulus  of  hiti;h 
prices  and  the  encouragement  given  agriculture  by  the  Government, 
production  is  sufficient  not  only  for  domestic  requirements  but  also 
to  supply  neighboring  countries.  Whether  the  country  will  (con- 
tinue to  produce  such  a  surplus  of  foods  under  peace  c  onditions 
and  prices  is  doubtful,  but  this  would  not  be  so  if  it  were  possible 


FOBBIGK  TRADfi. 


361 


to  reduce  the  level  of  internal  transportation  rates,  which  are  often 
prohibitive  for  articles  of  low  value  in  proportion  to  their  weight. 

IMPORT  FIGURES. 

Figures  for  Venezuela's  imports  are  presented  below: 

IMPORTS  BY  COUNTRIES. 
[1  boUyar  - 10.193.] 


Countries  of  origin^ 


Argentina 

Austria 

Belgium , 

China 

Colombia 

Costa  Rica 

Cuba 

Denmark 

Ecuador 

France 

Germany 

Italy 

Netherlands 

Panama 

Portugal 

Spain 

United  Kingdom. 
United  States 


1909 


Bolivars. 


16,330 

217,887 


10,469 


2,500 

3,415,320 

10,745,247 

1, 836, 932 

2,959,211 

4,082 

1,400 

2,729,662 

12,327,480 

16,326,452 


1910 


Bolivart. 


42,391 
214,340 


2,500 


8^457 


2,500 

5,175,680 

10, 566, 255 

1,725,866 

4,739,407 


437 

2, 785, 132 

19,284,710 

19,636,527 


1911 


Bolivars, 


22,079 

658,287 

2,336 

23,135 

500 

13,266 


9,624,684 

16,559,301 

3,094,971 

6,927,690 


3,452,593 
27,888,018 
27,045,443 


1912 


Bolivars. 

22,264 

>37,909 

738,692 

8,007 

61,794 


6,176 


13,558,477 

16, 577, 143 

3,733,883 

8,658,043 


4, 800, 235 
22,971,381 
35,402,833 


Countries  of  origin. 


Argentina 

Canary  Islands. . . 

China 

Colombia 

Cuba 

Curasao 

Denmark 

Ecuador 

France 

Ouiana,  British... 

Italy 

Netherlands 

Panama 

Porto  Rico 

Spain 

Swedtti 

Trinidad 

United  Kingdom. 
United  States.... 


1915 


Bolivars. 
418»031 


165,213 
38,240 
40,808 


3,391,347 

800 

2,512,055 

4,071,474 

1,404 

1,652 

3,376,205 

6,862 

823,981 

14,245,012 

41, 156, 573 


1916 


Bolivars. 


2,330 

18,400 

160,049 

349,365 

138,727 

453,153 

11,563 

5,144,099 


2,174,800 

1,298,122 

17, 519 

21,5.50 

5^996,236 


873, 126 
23, 118, 999 
67,143,664 


1917 


Bolivars.. 


7,660 
i67,'523' 


905,058 

76,888 

10,500 

4,921,095 


1,501,031 

329,486 

29,827 

81,628 

6,565,082 


727,608 
18,935,657 
80,631,122 


1918 


Bolivars. 


598 


2,264,753 

20,058 

707,433 

21,284 


1,654,460 


920,703 

21,341 

286,001 

620,363 

2,239,941 


328,098 
22,059,464 
45,944,621 


1919 


Bolivars. 


982 


220, 317 

24,945 

900,442 

103,912 


4,016,422 
250 

1,077,551 

1,893,264 
314,211 
306,855 

5,393,049 


4,007,974 

33,922,438 

124,824,196 


IMPORTS  BY  CUSTOMHOUSES. 


Customhouses. 


Barrancas 

Carupano 

Ciudad  Bolivar 

Cristobal  Colon 

Quanta 

La  Guaira 

La  Vela 

Maracaibo 

Pampatar 

Puerto  CabeUo 

Puerto  Sucre 

San  Antonio  del  Tachira 


1915 

1916 

1917 

Bolivars. 

Bolivars. 

Bolivars. 

25,458 

35,410 

15,629 

2,331,196 

2,989,188 

2,907,423 

4,667,080 

6,287,064 

6,690,357 

423,011 

378, 740 

837,072 

87,679 

8,080 

200 

33,925,809 

64,967,8.'53 

69,244,070 

363,030 

703,856 

552,905 

15,292,994 

25,329,033 

19,386,412 

82,396 

126,739 

176,345 

11,839,757 

16,592,002 

15,536,309 

157,892 

30,624 

32,615 

596,661 

463,353 

581,834 

1918 


Bolivars. 


1,020,648 

3,741,328 

461, 579 


62, 926, 524 

305,688 

7,893,118 

52,454 

10,681,161 

124, 490 

37,960 


1919 


Bolivars. 


852,719 

12,589,409 

791,766 


103,347,775 

702,742 

37,678,363 

122,688 

20,849,450 

283,690 

25^164 


362    VENEZUELA  :  A  COMMBEOIAL  AND  INDUSTRIAL  HANDBOOK. 

Additional  imports  by  parcel  post  (now  segregated  by  the  Vene- 
zuelan statistical  office^  amounted  in  1919  to  8,786,340  bolivars 
($1,695,764),  from  the  loUowing  sources: 

Bolivars. 

United  States 7, 602, 077 

United  Kingdom 503, 564 

France 322, 079 

Italy 216,158 

Spain -        57, 587 

Other  countries 84, 875 

Shipments  by  parcel  post  included  drugs,  medicines,  jewelry, 
watches,  hats,  cotton  goods,  silks,  rubber  goods,  etc. 

The  following  table  shows  the  value  in  United  States  currency  of 
the  principal  articles  imported  into  Venezuela,  by  countries  of  origin : 


Articles  and  countries  of 
origin. 


Agricultural  implements 

United  States 

United  Kingdom 

Spain 

Arms  and  accessories 

United  States 

Automobiles 

United  States 

United  Kingdom  (Trini- 
dad)  

Bags,  empty 

United  States 

United  Kingdom 

France 

Porto  Rico 

Colombia 

Curapao 

Spain 

iTinidad 


"•^gSft 


ted  States 

United  Kingdom. 

Colombia 

ain. 


Spain.. 
Irance. 


Beer. 

United  States 

United  Kingdom. 

Denmark 

Netherlands 

Belting 

United  States 

United  Kingdom. 
Beverages 

United  States 

United  Kingdom. 

France 

Netherlands 

Italy 

Trinidad 

Curacao 

Spain 

Biscuit 

United  States 

United  Kingdom. 

Spain 

franoe 

Trinidad 

Books,  printed 

United  States 

Spain 

Irance 

United  Kingdom . 

Panama 

Italy 

Colombia 

Butter 

United  States 

Denmark 


1917 


$41,058 

32,612 

6,130 

2,316 

10,030 

10,016 

376,895 

267,776 

9,119 

108,469 

32,875 

52.895 


9,939 


353,919 
669 

351,359 

694 

1,197 


21,389 

16,389 

2,069 

1,453 

677 

28,555 

25,550 

2,854 

206,811 

22,290 

17,332 

154,550 

1,791 

1,716 

686 
4,802 

73,675 

66,472 

1,982 

1,646 

723 

2,889 

34,386 
9,083 

14,583 
9,755 


73,775 
37,768 
13,387 


1018 


$132,437 
73,800 
68,124 


257 


209,875 
208,475 


151,875 
81,192 
45,852 
10,397 


7,145 

4,218 

2,404 

662 

142,950 


105,993 
800 


36,572 

3,118 

446 

1,961 


29,532 
29,319 
213 
160,021 
63,874 
30,673 
58,717 


1,146 
2,585 
1,279 
1,647 
14,952 
7,603 


323 


7,126 

24,385 

4,623 

9,931 

1,608 

6,111 

1,154 

668 

400 

14,411 

2,871 


Articles  and  countries  of 
origin. 


Butter— Continued. 

Netherland  s 

Spain 

tJnited  Kingdom 

Pahama 

Trinidad 

Buttons 

United  States 

United  Kingdom 

France 

Netherlands 

Italy 

Spain 

Curasao 

Panama 

Canned  and  preserved  foods. 

United  States 

France 

Italy 

Spidn 

Trinidad 

United  Kingdom 

Carbonic  add  gas 

United  States 

Trinidad 

France 

Cartridges 

United  States 

Trinidad 

Cement 

United  States 

Trinidad 

Netherlands 

Curasao 

Barbados 

Cuba 

Bonaire , 

Cheese , 

United  States.. 

Netherlands 

Italy 

France , 

Coal 

United  States 

United  Kingdom 

Curasao 

Confectionery 

United  States 

United  Kingdom 

France 

Italy 

Spain 

Cordage 

United  States 

Italy 

Trinidad 

Cotton  manufactures: 

Knit  goods 

United  States 


1917 


$9,810 

6,920 

5,776 

124 

47,204 

11,826 

965 

9,245 

52 

13,758 

10,312 

1,046 


95,113 
76,602 

2,782 

400 

11,236 

3,664 

906 

13,652 

11,903 

1,609 


32,038 

31,912 

126 

129,670 

71,283 

22,430 

9,981 


11,701 

7,042 

2,909 

95 

789 

193,664 

52,898 

30,996 

108,876 

64,309 

33,097 

3,230 

11,035 

4,018 

1,793 

173,229 

164,419 

16,777 

1,428 

422,614 
74,605 


1918 


1728 


10,812 

20,820 

6,739 

1,276 

3,173 


7,574 
576 


1,483 

73.907 

69,829 

302 


3,312 
451 


9,991 

8,887 

377 

727 


112,804 
90,211 


217 
16,168 
2,351 
2,256 
976 
6,777 
6,677 


90,207 
14,492 
37,199 
38,616 
24,215 
20,606 


1,848 

116 

1,141 

121,926 

119,870 

144 

1,366 

157,600 
102,008 


FOSEIOK  TRADE. 


868 


Articles  and  countries  of 
origin. 


Cotton  manafaotures— Con. 
Knit  Eoods— Continued. 

XTnited  Kingdom — 

France 

Netherlands 

Spain. 

Ifaly 

Panama... 

Trinidad 

Canvas  and  duck 

United  States 

Ignited  Kingdom 

Spain 

Trinidad 

Embroidery 

United  States 

United  Kingdom 

France 

Panama 

Blankets 

United  States 

Spain 

United  Kingdom 

France 

Handkerdiiefs  and  tow- 
eling  

United  States 

United  Kingdom 

^ain 

f^nama 

Trinidad 

Lace  and  trimmings 

United  States 

United  Kingdom.... 

France 

Netherlands 

Thread,  cotton  and  linen 
yam. 

United  States 

United  Kingdom.... 

France 

Netherlands 

Italy 

Spam 

Panama 

Cloths,  woolens,  etc 

United  States 

United  Kingdom 

France 

Netherlands 

Italy 

Spain 

iMnidad 

Cotton,  raw 

United  States 

United  Kingdom 

Disinfectants 

United  States 

United  Kingdom 

Drugs,  medicines,  and  chem- 

United'  StatesV.'. '.'.'.'.'.'.'.'.'. 

United  Kingdom 

France 

Italy 

Spain 

Netherlands 

Trinidad 

Earthenwareand  crockery . . . 

United  States 

United  Kingdom 

Netherlands 

Italy 

Trinidad 

Panama 

Electrical  apparatus 

United  States 

United  Kindgom 

Electric  lainps 

United  States 

Electric  light  bulbs 

United  States 


1017 


13,436 

29,733 

145 

306,757 

7,832 


162,879 

129,544 

22,171 

10,083 

1,081 

13,952 

77 

781 

12,691 


154,362 

125,364 

22,336 

3,171 

3,010 

00,329 

4,184 

68,526 

17,046 


103,803 

1,260 

97,227 

4,141 

1,187 

221,001 

33,819 

174, 132 

3,947 

102 


8,332 


3,934,222 

1,203,265 

2,327,788 

89,971 

4,479 

72,505 

234,282 

1,417 

167,386 

158,762 

8,623 

38,270 

29,009 

9.194 

052,563 

629, 427 

24,322 

236,126 

33,945 

26,850 

1,219 


99,990 

26,032 

63,742 

7,256 

1,177 


194,252 

188,568 

4,958 

5,320 

4,340 

36,510 

35,504 


1018 


1414 

8,147 

385 

37,307 

6,879 

2,073 

483 

45,901 

45,901 


113,025 

11,127 

100,038 

445 

1,226 

126,881 

124,322 

612 

028 


61,853 

20,702 

25,415 

2,011 

2,363 

462 

047 

472 

475 


534,417 

15,424 

417,377 

1,821 


15,387 

81,745 

1,783 

3,226,818 

483,000 

2,450,345 

240,471 


23,811 

27,714 

1,417 


17,646 

11,787 

6,743 

815,800 

661,224 

55,311 

72,509 

18,607 

6,507 


1,068 

138,086 

73,500 

60,365 


2,683 

1,427 

128,880 

125,900 

2,766 

6,762 

6,549 

14,471 

14,181 


Articles  and  countries  of 
origin. 


Engines,  gas,  and  oil  motors. 
United  States. 


United  Kingdom 

France 

Trinidad 

Curacao 

Explosives 

United  States 

Flour,  wheat 

united  States 

Curacao 

.     Trinidad 

Panama 

Colombia 

Spain 

Orain: 
Rice 

United  StotesV." '.'.'.'. 

Trinidad 

Barley,  malted 

United  Stotes 

Colombia 

Glass: 

Bottles 

United  States 

Trinidad 

United  Kingdom . . . 
Manufactures,  n.  e.  s.... 

United  States 

United  Kingdom . . . 

France 

Italy 

Plate  and  flat 

United  States 

Gold  coin 

United  States 

Curacao 

Iron: 

Domestic  ware 

United  States 

United  Kingdom . . . 

Netherlands 

Spain 

Iron  manufactures,  n.  e.  s 

United  States 

United  Kingdom... 

Netherlands 

Curacao 

Unfinished  and  structural 

United  States 

United  Kingdom . . . 

Trinidad 

Pipes  and  tubes 

United  States 

United  Kingdom... 

Netherlands 

Trinidad 

Nails 

United  States 

United  Kingdom . . . 
Lamps,  lanterns,  and  accesso- 
ries  

United  States.. 

Lard 

United  States 

Leather 

United  States 

France 

Spain 

United  Kingdom 

Machines   and    machinery, 
n.e.s 


United  States 

United  Kingdom 

France 

Trinidad 

Materials  for  hats  and  unfin- 

ii^ed  hats 

United  States 

United  Kingdom 

France 

Italy 


1017 


$100,550 

06,085 

1,073 

6,548 

2,841 


23,034 

23,034 

1, 155, 800 

1,151,775 

2,634 

1,400 


641,038 

635,881 

6,357 

76,289 

75,758 


75,707 

73,532 

2,266 


57,833 
40,403 


6,180 


13,054 

13,047 

3,560,563 

3,548,036 

12,528 

160,284 

143,192 

18,038 

4,310 

1,941 

259,050 

239,048 

13,746 

553 


163,262 

162,470 

783 


281,542 

272,868 

2,776 

5,602 


50,637 

54,824 

4,813 

18,065 

17,836 

70,177 

70,177 

261,066 

206,685 

34,605 

3  530 


104,455 

6,371 
4,037 


51,482 
0,091 

12,435 
5,353 

13,012 


1018 


I68»114 
64,442 

713 

1,260 

364 

1,230 

7,437 

7,437 

584,502 

480,120 

304 

5,016 

78,746 

16,817 

7,500 

480,506 

487,575 

1,033 

8.403 

7,664 

030 

16,413 
11,523 

4,743 

52,216 

47,013 

074 

2,120 

1,104 

14,805 

14,450 

1,061,021 

1,056,621 

6,300 

107,054 
89,928 
17,868 


130,392 

123,080 

14,528 

06i 

45,578 

44,482 

317 

779 

81,^08 

80,271 

81 

■**i,'624 

50,542 

48,300 

082 

12,709 

12,608 

14,738 

14,198 

194,681 

187,112 

3,672 

2,010 

1,435 

90,781 
76,172 
11,247 

*i,*892 

34,634 

15,578 

11,398 

807 

5,043 


364    VENEZtJEtiA.:  A  COMMERCIAL  AKD  INDUSTRIAL  HANDBOOK. 


Articles  and  countries  of 
origin. 


Materials  for  hats  and  un- 
finished hats— Continued. 

Spain 

Colombia 

Office  supplies ^ 

United  States 

United  Kingdom 

France 

OOs: 

Machine 

United  States 

Trinidad 

Gasoline  and  benzene 

United  States 

Curasao 

Netherlands 

Trinidad 

Kerosene 

United  States 

Trinidad 

Linseed 

United  States 

United  Kingdom 

Trinidad 

Olive  oils 

United  States 

France 

Italy 

Spain 

Olives  and  capers 

United  States 

France 

Spain 

Italy :. 

Paints 

United  States 

United  Kingdom 

Trinidad 

Enamel  and  colors 

United  States 

United  Kingdom 

Paper: 

Print  paper 

United  States 

•Wallpaper 

United  States 

United  Kingdom 

Cigarette  paper 

Spain 

Other  paper  products 

United  States 

United  Kingdom 

France 

Italy 

Spain 

Paraffin 

United  States 

Perfumery 

United  States 

United  Kingdom 

France 


1917 


•5,479 

4,319 

32,179 

28,171 

3,586 


65,981 

64,463 

1,499 

316,244 

269,912 

9,222 

5,820 

4,290 

225,126 

223,126 

1,894 

80,294 

26,810 

2,705 


87.931 
3,004 
6,819 

74,702 
2,910 

18,595 
2,890 
1,700 
8,171 


83,440 

74,207 

6,133 

2,016 

61,397 

67, 146 

2,374 

142,722 

142,722 

11,009 

3,286 


41,642 

41,642 

334,560 

266,560 

3,377 

4,301 

23,192 

27,463 

148,424 

148,424 

176,047 

62,331 

12,287 

96,881 


1918 


$32,154 

30,000 

1,800 

167 

74,970 

73,120 

1,791 

131,272 

128,971 

750 

1,551 

128,051 

126,835 

1,216 

41,801 

40,571 


1,250 

41,579 

3,519 

5,688 

31,432 

122 

16,455 

1,400 

818 

13,274 

851 

37,639 

34,120 

166 

3,519 

33  015 

32,000 

542 

52,536 

52,363 

3,473 

1,214 

2,259 

51,865 

51,865 

21,390 

18,143 

581 

371 


2,109 

312,682 

312,682 

162,075 

90,978 

24,741 

45,456 


Articles  and  countries  of 
origin. 


Perfumery— Continued. 

Italy.. 

Spain 

Pumps 

United  States 

United  Kingdom 

Railway  materials 

United  States 

United  Kingdom 

Porto  Rico 

Trinidad 

Rubber  tires 

United  States 

Rubber  manuftictures 

United  States 

United  Kingdom 

France 

Sardines 

United  States 

Spain 

France 

Soda  (except  silicate) 

United  States 

United  Kingdom 

France 

Spices  and  groceries,  n.  e.  s. 

United  States 

Spain 

Stearin 

United  States 

Tools 

United  States 

United  Kingdom 

France 

Toys 

United  States 

Spain ^ 

France 

United  Kingdom 

Wine 

United  States 

United  Kingdom 

France 

Italy 

Spain 

Wire: 

Barbed 

United  States 

Galvanized 

United  States 

Woolen  goods: 

Baize 

United  Kingdom . . 
United  States 

Other 

United  States 

United  Kingdom.. 

France 

Spain 

Panama 


1917 


$1,441 

3,561 

19,043 

18,821 

222 

117,192 

105,211 

8,774 

2,725 


3,862 

3,r80 

59,613 

62,295 

3,511 

2,435 

97,686 

18,011 

76,310 

1,608 

59,613 

53,265 

3,511 

2,435 

87,821 

77,845 

3,595 

220,333 

220,333 

97,372 

82,387 

12,211 

1,943 

39,198 

26,729 

6,405 

5,203 


256,386 
11,823 
13,961 
54,886 
23,752 

150,096 

65,010 
63,523 
63,884 
63,313 

46,408 

45,109 

1,299 

127,700 

58,621 

101,970 

2,239 

9,285 


1918 


$900 

12,482 
15,287 


84,347 

82,719 

859 


558 

2,032 

2,032 

42,385 

38,212 

4,173 


25,456 

9,870 

15,2d8 


177,295 

143,719 

33,291 


84,951 

79,730 

4,49U 

187,866 

187,666 

58,824 

35,555 

22.512 

254 

9,654 

7,736 

243 

639 

622 

273,694 

18,031 

11,039 

35,686 

74,732 

125,661 

31,855 
25,623 
27,633 
27,633 

27,797 
27,797 


96,623 
16,387 
73,265 


4,109 
1,947 


VENEZUELAN  COMMERCE  DURING  1917,  1918,  AND  1919. 

During  the  last  two  years  of  the  war  Venezuela's  foreign  trade 
showed  a  series  of  decreased  totals  on  the  whole,  and  where  occasional 
increases  occurred  they  were  due  to  higher  prices  for  the  smaller 
quantities  of  goods  or  produce,  and  also  to  the  exports  of  corn  and 
beans  to  the  United  States.  The  entry  of  the  United  States  into 
the  war  greatly  affected  the  country's  trade  on  account  of  the  impprt 
and  export  restrictions  imposed  and  the  shortage  of  ocean  tonnage. 

But  the  country  was  spared  the  trials  of  those  less  fortunate  or 
less  wisely  governed.  In  the  early  days  of  the  European  War  Gen. 
Gomez  issued  an  appeal  to  all  classes  of  Venezuelan  society  urging 


F0BEI6N  TRAPS.  365 

them  to  bend  every  energy  to  increase  the  national  production  of 
food.  The  response  was  general,  the  seasons  were  favorable,  high 
prices  added  a  stimulus,  and  during  the  years  that  followed  Venezuela 
not  only  did  not  suffer  from  the  lack  of  foodstuffs  formerly  imported 
in  large  quantities,  but  was  able  to  export  quantities  of  com,  meal, 
lard,  coconut  oil,  sugar,  tobacco,  beans,  and  beef  to  the  neighboring 
islailds  of  the  West  Indies  and  to  the  Allied  countries,  in  addition  to 
maintaining  production  of  the  usual  staples,  coffee,  cacao,  hides, 
balata,  and  gold. 

Because  of  the  export  restrictions  of  the  belligerent  powers  it  was 
impossible  to  obtain  goods  abroad,  except  at  very  high  prices  and 
in  limited  quantities,  and  though  for  the  first  time  in  the  commercial 
history  of  the  nation  merchants  went  as  far  as  Japan  in  search  of 
salable  goods,  the  total  imports  for  1918  amounted  to  only  77,244,950 
bolivars  ($14,908,275),  whereas  exports,  being  restricted  less  severely, 
amounted  to  97,613,154  bolivars  ($18,839,339),  giving  a  balance  of 
trade  in  Venezuela's  favor  of  more  than  20,000,000  bolivars.  It  was 
impossible  to  import  gold  to  redress  this  balance,  and  exchange  swung 
violently  in  Venezuela's  favor;  for  months  American  dollars  were 

Surchasable  at  rates  as  low  as  4.20  bolivars  (par  is  5.20),  and  in 
[aracaibo  at  one  time  the  rate  was  4  bolivars,  or  77  cents.  Many  mer- 
chants were  wise  enough  to  purchase  large  amounts  of  dollars  at  this 
price. 

These  so-called  "  favorable  "  exchange  rates  reacted  very  unfavor- 
ably upon  the  Venezuelan  export  trade  and  upon  the  price  of  export- 
able commodities.  Coffee,  cacao,  and  hides  dropped  to  a  very  low 
level  in  price,  and  the  mining  of  gold  in  the  Ciudad  Bolivar  region 
became  temporarily  impossible.  Also,  these  rates  put  a  stop  for  the 
time  being  to  the  investment  in  Venezuela  of  American  and  other 
outside  capital,  which,  with  the  encouragement  of  the  Venezuelan 
Government,  had  been  coming  in  on  an  increasing  scale.  The  two 
American  and  two  British  banks  in  Caracas,  having  no  way  to  ob- 
tain the  national  currency  except  by  the  sale  of  the  dollar  or  sterling 
drafts,  had  a  very  difficult  situation  to  face. 

At  the  close  of  1918  the  first  effect  of  the  armistice  was  very  un- 
favorable commercially.  Many  merchants  had  large  stocks  of  goods 
on  hand,  purchased  at  high  prices  during  the  war,  and,  believing 
that  peace  meant  a  sudden  drop  in  values,  they  threw  these  on  the 
market  for  what  they  would  bring.  For  some  weeks  prices  of 
textiles  were  lower  in  Caracas  than  in  New  York  or  Manchester. 
The  large  German  firms  of  the  country  had  been  prevented  from 
obtaining  any  large  stocks  of  goods  by  the  various  "trading  with 
the  enemy  "  laws,  and,  having  much  ready  cash  in  hand,  they  took 
full  advantage  of  these  offerings  and  ultimately  obtained  large  profits. 

On  account  of  the  general  restrictions  and  difficulties  encountered 
in  obtaining  merchandise,  more  especially  those  items  on  the  con- 
servation lists  of  the  Allies,  each  merchant  had  sent  in  orders  far  ex- 
ceeding his  immediate  or  season's  requirements  (or  perhaps  suffi- 
cient for  the  entire  country),  hoping  that  his  individual  permit 
might  get  through  and  large  profits  be  realized  at  a  stroke,  but  when 
it  was  seen  that  permits  for  all  would  be  granted  at  the  same  time  all 
hastened  to  cancel  their  orders,  fearing  also  the  predicted  general 
drop  in  values.  It  was  early  in  1919  before  it  was  seen  that  there 
would  be  no  general  lowering  of  prices,  but,  on  the  other  hand,  an 


366     VENEZUEIA :  A  COMMEECIAIi  AND  INDUSTRIAL  HANDBOOK. 

increase  in  nearly  all  lines,  and  this  situation,  combined  with  the 
large  pjrofits  being  realized  irom  export  products,  precipitated  a  rush 
of  buying  that  omy  ended  by  the  middle  of  1920,  when  all  markets 
collapsed. 

Roughly,  it  may  be  said  that  Venezuela  imports  annually  about 
$20,000,000  worth  of  general  merchandise  and  materials,  the  prin- 
cipal items  being:  Cotton  manufactures,  $4,070,000;  knit  goods, 
$400,000;  chemicals,  drugs,  and  medicines,  $2,702,000;  wheat  flour, 
$1,500,000;  machinery,  $500,000;  automobiles,  $500,000;  paper  and 
paper  products,  $400,000;  wines  and  liquors,  $480,000.  AH  manu- 
factured articles  not  unsuited  to  the  Tropics  are  imported,  with  the 
exception  of  shoes,  candles,  matches,  salt,  boxes,  ready-made  clothing, 
trunks,  and  leather  goods  such  as  harness  and  saddlery,  upon  which 
the  tariff  rates  are  prohibitive.  The  demand  for  luxuries  is  small, 
being  limited  to  about  15  per  cent  of  the  total  population  and  to  the 
larger  cities. 

Exports  average  annually  about  $23,000,000  and  consist  principally 
of  coffee  and  cacao,  together  with  hides  and  skins,  balata,  sugar,  and 
mineral  and  forest  products. 

The  details  of  conditions  in  Venezuela  in  1917  and  1918  do  not 
apply  in  any  way  to  the  situation  in  1919.  On  the  contrary,  it  would 
be  difficult  to  cite  a  more  relatively  prosperous  country  in  all  of  Latin 
America  during  that  period.  Coffee,  the  country's  great  staple  of 
export,  was  selling  at  prices  equal  to  almost  three  times  its  prewar 
level;  the  past  crop  was  excellent  in  quality  and  volume;  prospects 
for  the  new  season  could  not  have  been  better,  and  this  greatly  in- 
fluenced expansion  in  all  lines  of  trade  and  domestic  industrial  de- 
velopment as  well.  Cacao,  the  second  product  in  importance,  was  in 
a  similar  condition,  the  United  States  taking  large  quantities  for  re- 
export to  Europe.  Hides  were  selling  at  about  50  cents  per  pound 
in  New  York  and  another  important  item,  goatskins,  at  more  than  a 
dollar  a  pound.  The  import  statistics  of  the  United  States  for  June, 
1919,  showed  imports  of  Venezuelan  products  to  the  amount  of 
$3,340,000  for  that  month.  Not  one  but  several  shipments  of  Ameri- 
can gold  coin  of  more  than  one  million  dollars  were  received.  Wages 
in  all  lines  of  work  advanced,  and  the  prices  of  shares  of  all  the  well- 
managed  native  industrial  concerns  doubled  during  the  first  half 
of  the  year  in  question.  With  the  certainty  of  large  increases  in  the 
customs  revenue,  the  Government  announced  that  its  large  gold  sur- 
plus would  be  invested  in  public  works,  and  work  was  begun  on  a 
number  of  much-needed  improvements,  including  the  new  sewerage 
system  for  Caracas. 

There  were  several  strikes  for  higher  wages,  all  of  which  were 
promptty  won  by  the  workers,  but  there  was  no  chronic  labor  a^ta- 
tion.  The  balance  of  trade  between  the  country  and  the  United 
States  continued  heavily  in  favor  of  Venezuela.  For  the  12  months 
ended  June  30,  1919,  the  United  States  purchased  from  Venezuela 
products  to  the  value  of  $19,732,709  and  sold  to  that  nation  only 
$9,275,680,  although  heavy  purchases  of  merchandise  during  the 
latter  part  of  1919  and  the  early  months  of  1920  soon  wiped  out  this 
balance  of  trade. 

Every  prejudice  and  inclination  is  in  favor  of  Americans  and 
American  goods,  and  it  is  the  duty  of  every  American  exporter  and 


FOBBIGN  TRADE.  867 

manufacturer  to  study  this  market,  to  learn  to  provide  more  things 
that  Venezuela  needs  and  desires,  and  to  render  better  service  in  ex- 
porting. 

Were  it  not  for  the  fact  that  the  Venezuelan  tariff  law  imposes  a 
30  per  cent  surtax  upon  all  imports  from  the  Caribbean  dependencies 
of  other  powers,  a  thriving  trade  would  exist  with  Porto  Rico,  as 
Venezuela  charcoal,  coal,  fertilizer,  corn,  meat,  and  salt  are  in  de- 
mand there.  Venezuelan  imports  from  Porto  Rico  are  necessarily 
confined  to  the  few  articles  on  the  free  list,  and  schooners  going 
laden  to  Puerto  Rico  are  usually  obliged  to  return  in  ballast.  The 
same  conditions  also  apply  to  the  British,  French,  and  Dutch  West 
Indies. 

The  name  of  Japan  does  not  appear  in  the  list  of  countries  sup- 
plying Venezuelan  imports  during  1918  and  1919,  but,  nevertheless, 
the  entrance  of  Japanese  merchandise  into  Venezuela  upon  a  consid- 
erable scale  is  one  of  the  most  noticeable  of  recent  commercial  devel- 
opments. In  Caracas  many  of  the  fancy-goods  stores  have  nothing 
but  Japanese  articles  in  stock,  and  many  small  hardware  products 
from  the  same  country  are  to  be  found  in  other  establishments.  This 
merchandise,  though  purchased  in  Japan,  is  shipped  via  the  United 
States,  invoiced  'there,  and  credited  to  this  country  in  the  statistics. 
It  is  generallv  true  that  Venezuelan  statistics  show  only  the  country 
from  which  the  shipment  to  Venezuela  was  made  and  not  the  country 
of  origin  of  the  goods. 

AMERICAN  TRADE  WITH  NORTH-COAST  COUNTRIES. 

The  commerce  of  the  United  States  with  the  north-coast  countries,' 
Colombia,  Venezuela,  and  the  GuianaSj  during  1920  amounted  to  13 
per  cent  of  its  aggregate  South  American  trade.  Colombia,  which 
ranked  fourth  among  South  American  countries,  outstripped  the 
other  territories  of  this  group  considerably  during  1920,  and,  with 
the  exception  of  Bolivia,  showed  the  greatest  relative  growth. 
American  exports  to  Colombia  increased  from  $24,143,646  m  1919 
to  $59,133,277  in  1920,  or  144  per  cent.  The  principal  gains  occurred 
in  cotton  manufactures  (which  increased  $15,000,000),  pipes  and  fit- 
tings, steel  rails,  wire,  sheets,  plates,  structural  iron  and  steel,  etc. 
Imports  from  Colombia  increased  only  from  $42,911,409  in  1919  to  , 
$53,641,738  in  1920,  or  25  per  cent.  Coffee  is  practically  the  only 
exporta-ble  product  showing  any  appreciable  increase  during  1920. 

American  import  and  export  trade  with  Venezuela  during  1920 
increased  10  per  cent,  amounting  to  $51,593,258,  as  compared  with 
$46,539,987  in  1919.  Exports  to  Venezuela  more  than  doubled,  in- 
creasing from  $14,429,202  to  $29,204,396,  chiefly  owing  to  larger 
shipments  of  cotton  manufactures,  wheat  flour,  automobiles,  pipes, 
fittings,  and  wire.  American  imports  from  Venezuela  declined  30 
per  cent,  from  $32,110,785  in  1919  to  $22,388,862  in  1920.  Coffee  and 
hides,  shipments  of  which  amounted  to  approximately  $11,000,000 
less  in  the  latter  year  than  in  1919,  were  chiefly  responsible  for  this 
decline. 

SUMMARY  OF  VENEZUELAN  TRADE  CONDITIONS  IN  1920. 

Statistics  covering  imports  to  the  United  States  from  South 
America  during  the  first  half  of  1920  reflect  generally  the  confidence 


868     VENEZUELA :  A  COMMBBCIAL  AND  INDUSTRIAL  HANDBOOK. 

felt  in  business  circles  and  the  optimistic  tone  of  the  market.  As  a 
result  of  the  sudden  break  in  prices  for  coffee,  hides,  cacao,  rubber, 
etc.,  imports  suffered  a  decline.  Though  no  actual  decrease  took 
place  until  the  third  quarter  of  the  year,  statistics  during  the  second 
three  months  of  1920  failed  to  show  as  great  an  increase  in  percent- 
ages as  those  of  the  first  three  months.  During  July,  August,  and 
September  there  was  a  drop  in  Import  values  oi  about  8  per  cent  as 
compared  with  the  corresponding  months  of  1919,  only  imports  from 
Cuba  and  Mexico  showing  increases  during  the  third  quarter.  Dur- 
ing the  last  quarter  of  1920  imports  into  the  United  States  from 
Venezuela  fell  off  by  about  40  per  cent  in  common  with  those  from 
other  South  American  countries. 

The  market  depression  and  the  general  unfavorable  exchange 
situation  during  the  last  half  of  1920  are  not  observable  in  the 
statistics  covering  exports  to  Venezuela,  the  figures  for  the  last 
quarter  of  1920  showing  a  greater  percentage  of  increase  over  1919 
tnan  any  other  period  of  the  year.  This  can  be  accounted  for 
partly  by  the  fact  that  goods  shipped  during  the  period  were  ordered 
during  the  early  part  of  the  year,  when  many  plants  were  unable 
to  fill  orders  immediately.  While  no  moratorium  has  been  declared 
in  Venezuela  and  there  has  been  no  port  congestion,  the  general 
conditions  are  those  of  the  other  Latin  American  countries,  brought 
about  by  the  extraordinary  period  of  prosperity  (following  the  high 
prices  received  for  export  products  during  the  war  and  during  the 
year  and  a  half  following  the  armistice^,  which  resulted  in  an  era 
of  inflated  values,  intense  speculation  m  all  lines,  and  a  general 
overextension  of  credits,  both  by  the  foreign  banking  institutions 
in  the  country  and  by  the  native  banking  concerns  and  merchants. 

UNFAVORABLE  FINANCIAL  CONDITION. 

The  trend  of  the  financial  situation  in  Venezuela  during  De- 
cember, 1920,  was  unfavorable,  and  it  was  felt  that  the  bottom 
of  the  decline  had  not  been  reached.  During  the  period  of  pros- 
perity in  the  later  war  years  and  following  the  armistice,  credit  was 
abused  for  speculative  purposes,  domestic  inflation  took  place,  and 
merchants  speculated  in  export  products  (principally  coffee),  in  mer- 
.  chandise  (principally  cotton  manufactures),  and  in  loreign  exchange, 
being  attracted  by  the  low  value  of  the  pound  sterling,  French  franc, 
and  German  mark,  chiefly  the  last  two.  Commodity  pricfes  were 
caused  to  attain  an  unwarranted  high  level,  and  when  it  became  evi- 
dent that  prices  could  not  be  maintained  at  this  level,  because  im- 
ported goods  were  much  cheaper  than  the  values  of  the  heavy  over- 
stocks purchased  during  the  latter  part  of  1919  and  the  first  quarter 
of  1920,  the  banks  naturally  began  to  curb  credits,  not  only  for  the 
purpose  of  protecting  themselves  but  also  to  discourage  and  reduce 
speculative  holdings  and  to  bring  about  a  most  necessary  deflation. 
The  curtailment  of  the  foreign  demand  for  export  products  of  Vene- 
zuela hastened  the  drop  in  prices,  particularly  with  respect  to  coffee, 
cacao,  and  cotton.  It  was  predicted  that  the  general  price  level  of 
Venezuela's  export  products  would  reach  in  January  a  still  lower 
level,  and  that  a  general  business  depression  was  inevitable. 


FOREIGN  TRADE.  369 

Failures  among  the  smaller  concerns  were  already  occurring,  and 
more  serious  failures  were  feared,  as  it  was  known  that  several  of  the 
largest  importing  houses  which  had  speculated  heavily  in  coffee  and 
foreign  exchange  were  only  being  sustained  by  their  creditors  for 
the  time  being,  during  the  period  of  liquidation.  It  was  considered 
by  many  that  the  credit  restrictions  were  dangerously  drastic  at  a 
critical  time. 

An  outstanding  feature  of  the  situation  was  the  fact  that  British 
houses  were  continuing  to  allow  the  usual  credits  to  their  well- 
established  customers,  whereas  the  largest  American  export  com- 
mission houses  of  New  York  would  no  longer  receive  export  prod- 
ucts on  consignment  or  "open  account"  and  the  American  branch 
banks  in  Venezuela  no  longer  made  advances  on  such  shipments, 
unless  sold  at  the  market  on  arrival. 

EFFECT  OF  EXCHANGE. 

As  a  result  of  the  above  conditions,  supplemented  by  the  existence 
of  a  heavily  overstocked  market  of  imported  merchandise,  a  greatly 
decreased  demand  from  the  interior  on  account  of  the  drop  in  coffee 
values,  and  a  present  unfavorable  exchange  rate  with  the  United 
States,  the  demand  for  further  importation  was  dull  and  will  con- 
tinue so  until  prices  for  export  products  in  foreign  countries  have 
increased  somewhat.  There  had  occurred  already  a  marked  decline 
in  the  imports  of  American  goods. 

At  the  beginning  of  the  last  quarter  of  1920  it  was  hoped  that 
exports  of  sugar  to  the  United  States,  estimated  at  some  $4,000,000, 
and  exports  of  live  beef  cattle  to  Cuba,  amounting  to  some  $2,000,000 
in  value,  would  help  the  exchange  situation  by  releasing  additional 
New  York  drafts  in  the  Caracas  and  Maracaibo  markets,  but  the 
drop  in  sugar  prices  prevented  the  export  of  the  surplus  sugar  crop 
from  the  Maracaibo  district,  and  a  threatening  political  condition 
in  November  held  the  cattle  money  out  of  the  country  for  the  time 
being,  at  least ;  so  the  desired  effect  on  exchange  was  not  realized  and 
the  dollar  continued  at  a  heavy  premium  of  about  13  j>er  cent. 
When. exchange  reaches  a  point  above  a  10  per  cent  premium,  the 
Venezuelan  importers  often  refuse  to  purchase  drafts  but  offer  to 
pay  in  gold  in  a  Venezuelan  bank. 

OUTLOOK  FOR  FUTURE. 

With  an  overstocked  market  in  textiles,  which  constitute  the  prin- 
cipal imports  of  the  country,  with  low  prices  for  export  products 
(though  these  prices  are  not  less  than  for  normal  prewar  years  when 
plantations  existed  at  a  profit) ,  and  with  a  heavy  burden  of  specula- 
tion to  overcome,  it  may  be  stated  that  the  Venezuelan  market  will 
not  be  a  very  active  one  for  several  years  to  come.  There  is  not  a 
sufficient  population  to  permit  any  great  increase  in  production  in 
any  line,  with  the  possible  exception  of  the  cattle  industry,  to  com- 
pensate for  the  prevailing  low  values  of  exports.  A  significant 
feature  of  the  situation  during  the  last  part  of  1920  was  the  fact 
that  British  houses  continued  to  offer  the  same  long  terms  of  credit, 
usually  six  months,  to  their  long-established  cuSomers;  and  the 

79747°— 22 26 


370     VENEZUELA :  A  COMMERCIAL.  AND  INDUSTRIAL.  HANDBOOK. 

establishment  of  new  agencies  and  branches  of  European  houses  con- 
tinued, although  this  latter  development  may  have  been  due  rather 
to  plans  made  earlier,  just  after  the  armistice. 

As  regards  trade  with  the  United  States  and  the  holding  of  the 
position  gained  during  and  just  after  the  war,  two  things  are  most 
necessary — ^the  American  exporter  must  pay  greater  attention  to 
the  details  of  exporting,  make  a  better  stuay  of  the  needs  of  the 
Venezuelan  market,  and  base  his  credit  operations  on  the  economic 
factors  of  the  country;  and  better  ocean  transportation  facilities 
must  be  provided  in  competition  with  the  greatly  increased  and 
much  better  service  from  Europe.  The  bulk  of  the  trade  with 
Venezuela  is  carried  on  through  export  commission  houses  which 
conduct  the  business  with  their  Venezuelan  clients  on  the  well- 
known  and  long-used  "open  account"  basis — that  is,  crediting  on 
account  the  export  products  received,  and  charing  to  the  client  the 
general  merchandise  shipped.  There  is  very  little  specialization  in 
lines  of  trade  in  Venezuela,  most  stores  carrying  a  general  stoc^  and 
buying  long  lists  of  miscellaneous  goods  through  their  commission 
house  as  needed  for  the  season.  The  services  of  the  export  com- 
mission houses  have  been  greatly  handicapped  in  the  United  States 
by  the  failure  of  the  manufacturer  to  cooperate  properly  with  the 
exporters  in  the  important  matter  of  packing  and  shipment. 

PARCEL-FOST  TRADE. 

Before  the  war  France,  Germany^  and  Italy  led  in  this  trade  by 
parcel  post,  which  is  employed  principally  for  the  conveyance  of  fine 
goods  of  small  weight,  such  as  silks,  perfumes,  fine  feathers,  buttons, 
laces,  trimmings,  and  medicines.  The  cost  of  sending  a  parcel-post 
package  from  France,  Italy,  or  Germany  to  Venezuela  is  considerably 
less  than  the  cost  of  sending  similar  packages  from  the  United  States. 
Formerly  this  service  was  especially  favored  because  of  the  freedom 
from  customs  fines  and  penalties.  Now,  however,  by  a  new  law  the 
recipient  of  a  package  is  required  to  sign  an  acceptance  in  which  he 
assumes  all  responsioility  for  the  correctness  of  the  declaration,  and 
in  case  pt  any  discrepancy  in  this,  fines  and  confiscations  are  imposed 
the  saine  as  in  importation  by  freight.  Many  American  exporters, 
particularly  those  sending  cheap  jewelry  to  persons  of  small  responsi- 
bility, have  suffered  losses  because  of  confiscation  of  the  goods  by  the 
customs  authorities  and  the  refusal  of  the  consignee  to  pay  for  tnem. 
Parcel-post  packages  should  never  be  sent  to  the  consulate  or  any 
other  person  without  previous  advice,  for,  unless  the  shipper  and  the 
articles  are  known,  the  consignee  can  not  risk  signing  an  acceptance. 

Parcel-post  shipments  into  Venezuela  come  under  the  direct  super- 
vision and  handling  of  the  customs  at  the  port  of  entry,  liquidation 
of  import  duties  and  charges  being  made  at  the  port  of  entry  before 
shipment  can  be  made  into  the  interior  to  final  point  of  destination. 

When  the  writer  was  in  Venezuela,  there  was  universal  complaint 
on  the  part  of  importers  regarding  the  long  and  vexatious  delays 
in  the  transmission  of  parcel-post  packages  between  port  of  entry  and 
final  destination.  As  an  example,  such  a  condition  of  congestion, 
caused  by  inadequate  storage  and  handling  space  and  lack  of  per- 
soimel,  existed  in  La  Guaira,  the  chief  port  of  entry  of  parcel-post 


FOBBIGN  TRADE.  371 

matter,  during  the  last  half  of  1920,  that  it  often  took  two  months 
to  get  a  package  into  the  hands  of  the  addressee  in  Caracas,  23  miles 
away,  arter  its  receipt  at  La  Guaira.  However,  the  custoinhouse  at 
La  (Juaira  was  being  enlarged  and  more  ample  space  provided  for 
parcel*post  traffic.  Better  service  was  promised,  a  20-day  limit  being 
nxed  between  time  of  receipt  at  port  of  entry  and  delivery  to  a(f 
dressee  in  Caracas  and  this  limit  was  to  be  shortened  later.  Mer- 
chants in  Caracas  and  other  towns  of  the  interior  have  been  forced 
to  adopt  the  system  of  giving  powers  of  attorney  to  agents  resident 
in  the  ports  of  entry,  to'  fill  out  the  necessary  provisions  of  acceptance 
of  responsibility  for  parcel-post  shipments  as  required  by  the  new 
customs  regulations  covering  such  importations.  The  post^  office 
authorities  nad  also  adopted  the  method  of  periodically  publishing 
in  the  daily  newspapers  of  the  capital  the  lists  of  paroel-post  ship- 
ments  arriVing,  ^ting  name  of  consignee,  name  of  shipper,  ami 
class  of  contents. 

Merchandising  in  Venezuela,  with  the  exception  of  the  drug  line 
(and  also  hardware  in  a  few  instances),  is  very  general  in  its  char- 
acter; there  is  little  specialization  in  the  lines  carried,  and  the  stores 
are  usually  general-merchandise  establishments,  both  wholesale  and 
retail.  The  parcel-post  system  offers  an  excellent  medium  for  rapid 
deliveries  of  seasonal  goods,  new  styles,  novelties,  and  goods  of  light 
weiffht,  small  bulk,  and  high  price,  enabling  the  importers  to  keep 
on  hand  and  on  display  a  constantly  dianging,  attractive,  small 
stock  of  seasonal  merchandise  on  which  a  good  profit  is  realized  and 
which  serves  to  attract  customers.  The  system  is  also  a  great  boon 
to  the  small  importers  of  the  interior  in  out-of-the-way  places  where 
communication  is  difficult  and  freight  transport  slow  and  costly.  The 
export  trade  of  the  United  States  with  Venezuela  can  be  greatly  in- 
creased by  judicious  use  of  the  parcel-post  service,  and  new  business 
can  be  created  in  certain  lines  entirely  by  correspondence  and  the  use 
of  small,  often-renewed  catalogues,  the  loose-leaf  system  being  recom- 
mended. Jewelry  novelties,  notions,  ornaments,  fancy  dry  goods, 
haberdashery,  lingerie,  and  allied  lines  can  all  be  handled  by  this 
method.  At  present  the  system  is  most  used  by  the  exi)ort  commis- 
sion Rouses,  their  Venezuelan  clients  ordering  certain  articles  shipped 
to  them  in  this  manner  as  a  means  of  saving  time  and  freight  charges. 

Under  existing  conditions,  however,  American  trade  with  Vene^ 
zuela  by  parcel  post  is  heavily  handicapped  in  comparison  with  that 
from  European  countries  which  have  entered  into  advantageous 
parcel-post  conventions  with  Venezuela.  It  costs  more  to  send  a 
parcel-post  shipment  of  the  same  weight,  bulk,  and  contents  to  Vene- 
zuela from  the  United  States  than  from  Germany,  France,  Italy,  or 
Spain.  This  difference  is  due  to  the  rates  charged  by  the  United 
States  on  export  matter  to  Venezuela,  these  being  double  (or  more) 
the  charges  of  European  countries.  Prior  to  the  war  the  bulk  of 
Venezuem's  parcel-post  imports  came  from  France,  with  the  United 
States  doing  about  84  per  cent  as  much  business  of  this  character 
as  France.  During  and  since  the  war,  however,  the  bulk  of  the  im- 
ports by  parcel  post  have  come  from  the  United  States. 

Accormng  to  the  convention  concluded  between  Venezuela  and  the 
United  i^tatos  on  May  1, 1839,  the  postal  service  of  the  Venezuelan 


872     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

% 

a 

Government  is  allowed  to  charge  1.50  bolivars  ($0.29)  on  each  parcel- 
post  package  of  6  kilos  (11.02  pounds)  or  less  coming  from  the 
United  States,  and  the  United  States  is  allowed  to  charge  a  like 
amount  on  matter  coming  from  Venezuela;  but  the  United  States 
does  not  do  this  in  actual  practice,  charging  only  the  usual  rate  of 
5  cents,  the  same  as  on  matter  imported  from  other  foreign  countries 
into  the  United  States.  The  Venezuelan  postal  service  charges  a  fixed 
rate  of  1.76  bolivars  ($0.34)  on  matter  from  European  countries,  while 
its  charge  on  matter  from  the  United  States  is  only  1.50  bolivars 
($0.29)  per  package. 

Two  charges  are  imposed  on  each  package  dispatched  from  the 
United  States  to  Venezuela  or  vice  versa — an  export  tax  collected  in 
the  country  of  origin  and  forming  a  part  of  its  revenue ;  and  another, 
in  reality  an  export  tax,  collected  in  the  country  of  destination  and 
forming  a  part  of  the  revenue  of  the  latter  country.  The  export  tax 
(charge)  in  both  countries  (Venezuela  and  the  United  States)  is 
8.25  bolivars  ($1.59)  for  5  kilos  (11.02  pounds).  The  import  tax 
charge  is  1.50  bolivars  ($0.29)  in  Venezuela,  and  actually  5  cents  in 
the  United  States,  on  packages  from  Venezuela,  although  by  the 
terms  of  the  convention  the  "Cmited  States  has  the  right  to  charge  an 
equal  amount,  namely,  $0.29. 

Bolivars. 

Tax  belonging  to  the  United  States 8. 25 

Tax  belonging  to  Venezuela 1. 50 

9.75 

Tax  belonging  to  ISuropean  countries 3.25 

Tax  belonging  to  Venezuela 1.75 

5.00 

Or: 

Tax  belonging  to  European  countries 2. 25 

Tax  belonging  to  Venezuela * 1.  75 

4.00 

From  the  above  it  is  seen  that  parcel-post  packages  weighing  5 
kilos  or  less  from  the  United  States  are  penalized  by  either  4.75 
bolivars  ($0,916)  or  5.75  bolivars  ($1.11)  in  competition  with  Euro- 
pean countries,  of  which  Spain  enjoys  the  lowest  rate  by  virtue  of  the 
recent  favorable  convention  with  Venezuela. 

On  matter  from  the  United  States,  Venezuela  collects  its  own 
charges  in  the  form  of  a  fixed  import  tax  of  1.50  bolivars  ($0.29), 
while  on  packages  from  Europe  the  European  Governments  collect 
these  charges  and  remit  to  Venezuela  every  six  months.  American 
exporters  to  Venezuela  would  be  greatly  benefited  by  a  revision  of 
the  old  parcel-post  convention  between  the  two  nations  and  also 
by  a  consistent  decrease  in  the  export  charges  by  the  United  States 
on  parcel-post  shipments  to  Venezuela,  making  them  equivalent  to 
those  now  in  force  by  European  countries  competing  in  this  trade. 

Many  of  the  smaller  manufacturing  plants  of  the  United  States 
(even  those  on  the  Pacific  coast)  which  are  making  a  varied  line 
of  goods  suitable  for  the  Venezuelan,  Colombian,  and  Ecuadorian 
trade  can,  by  using  correspondence  and  catalogues  in  'Spanish,  secure 


FOREIGN  TRADE.  873 

considerable  business  through  the  parcel-post  system  of  shipment 
directly  to  customers  in  those  countries.  Heretofore  the  matter  of 
credits  and  payment  has  been  a  stumbling  block  in  the  development 
of  trade  by  this  means,  but  certain  American  branch  banks  have  pro- 
vided a  system  whereby  the  goods  can  be  sent  directly  to  the  bank  at 
the  port  of  entry  or  final  destination,  according  to  the  regulations  of 
the  country  in  question,  and  payment  can  be  secured  before  or  at  the 
time  of  actual  delivery  to  the  customer  for  a  small  charge  entirely 
consistent  with  the  service  rendered.  Latin  American  trade  lists  are 
now  available  also,  showing  the  relative  size  of  firms,  etc.,  their 
general  line  of  merchandising,  and  other  valuable  information. 


BANKS  AND  BANKING. 

LISTS  OF  NATIVE  AND  FOREIGN  INSTITUTIONS. 

Up  to  the  time  of  the  establishment  of  foreign  banks  in  Venezuela 
banking  was  controlled  chiefly  by  three  native  institutions  and  their 
agencies — ^the  Bank  of  Venezuela,  the  Bank  of  Caracas,  and  the  Bank 
01  Maracaibo.  Caracas  is  the  bajiMng  and  commercial  center  of  the 
country. 

The  chartered  banks  of  Venezuela  now  number  four,  as  follows : 

Banco  de  Venezuela;  capital,  12,000,000  boUvars  ($2,316,000). 
Banco  de  Caracas;  capital,  6,000,000  bolivars  ($1,158,000). 
Banco  de  Maracaibo;  capital,  1^50,000  bolivars  ($241,250). 
Banco  Comercial  de  Maracaibo;  capital,  400,000  boUvars  ($77,200). 

The  first  three  native  banks  are  "  banks  of  issue,"  possessing  the 
rirfit  to  issue  paper  currency. 
The  f orei'gn  banks  now  established  in  Venezuela  are  as  follows : 


Banks. 


NationalCitj  Bank  of  New  York 

American  Meroantile  Bank  of  Caracas, 

affiliated  with  Mercantile  Bank  of  the 

Americas. 
Royal  Bank  of  Canada 


Commercial  Bank  of  Spanish  America 
(now  affiliated  with  Anglo-South  Ameri- 
can Banking  Corporation,  London). 

Desohanel  International  Corporation  of 
Venesuela. 

Hollandsche  Bank  Voor  West-Indie  (Cura- 
sao Trading  Co.). 


Established 
(Caracas). 


Nov.  17, 1917 

Nov.  14,1917 , 

Oct.  1,1916 

Long  established  in 
Venezuela. 

Dec.  12, 1919. 


Agencies  and  branches  in  VemesuelA. 


Ciudad  Bolivar,  Maraoalbo. 
La  Guaira,  Maracaibo,  Puerto  CabeHo, 
Valencia. 

Ciudad  Bolivar,  Puerto  Cabello,  Mara- 
caibo. 
Caracas,  Puerto  Cabello. 


Caracas,  La  Guaira. 

Caracas,  La  Guaira;  also  WiOeiiistad, 
in  Curasao. 


Nora  (November,  1920).— Mercantile  Overseas  Corporation  no  longer  in  existence  in  Venesuela.    Opera- 
tions discontinued.   Mercantile  Bank  has  no  brandi  or  true  agency  in  Ciudad  Bolivar. 

Most  of  the  important  importing  and  exporting  houses  of  the 
country  do  a  private  banking  business  and  some  pay  a  higher  rate 
of  interest  than  the  regular  oanks.  The  largest  of  these  firms  are 
as  follows : 

H.  L.  Boulton  &  Co.,  all  large  cities  of  Venezuela. 

Blohm  &  Co.,  all  large  cities. 

Hellmund  &  Co.,  all  large  cities. 

J.  Boccardo  y  Cfa,  Caracas,  Valencia. 

Curacao  Trading  Co.,  of  Caracas,  all  large  cities. 

L.  Perez  Diaz  &  Perrit  y  Cfa,  Caracas,  La  Guaira. 

Dalton  &  Co.,  Ciudad  Bolivar,  and  Port  of  Spain,  Trinidad. 

BANK  OF  VENEZUELA. 

The  Bank  of  Venezuela  was  established  March  24,  1882,  as  the 
Commercial  Bank;  its  name  was  changed  in  1890  to  the  Bank  of 
Venezuela,  capitalized  at  8,000,000  bolivars  ($1,544,000).  It  was 
again  reconstituted  in  1899  with  15,000,000  bolivars  ($2,895,000)  of 

3f4 


BANKS  AND  BANKING.  375 

cafjital,  divided  into  506  shares  of  20,000  bolivars  ($3,860)  each,  sub- 
scribed in  the  country  by  national  and  foreign  merchants.  Three- 
fourths  of  the  capital  had  been  paid  in  by  March,  1904,  the  other  hot 
being  required. 

The  administration  consists  of  five  directors,  one  of  whom  is 
elected  president  by  the  general  assembly  of  the  bondholders. 
Agencies  are  established  in  La  Guaira,  Puerto  Cabello,  Valencia, 
]!i<£aracaibo,  Coro,  San  Cristobal,  Barcelona,  Cumana,  Carupano, 
Porlamar,  Juan  Griego,  Guiria,  Maturin,  Ciudad  Bolivar,  Trujillo, 
Maracay,  Ocumare  del  Tuy,  Rio  Chico,  and  San  Felipe,  the  last  five 
agencies  having  been  established  in  1915  at  the  suggestion  of  the 
Minister  of  Finance,  in  order  to  facilitate  the  business  and  trade  of 
the  interior  regions  of  the  country  as  well  as  the  collection  of  G«v« 
ernment  revenues. 

The  principal  source  of  profit  of  the  Banco  de  Venezuela  is  its 
service  as  fiscal  agent  of  the  Government  of  Venezuela  in  receiving 
and  disbursing  of  Government  funds,  for  which  service  it  has  been 
paid  a  2  per  cent  commission.  A  dividend  of  12  per  cent  was  paid  in 
1914.  Capital  in  1918  stood  at  9,000,000  bolivars  ($1,737,000) ,  paid 
up,  and  reserves  2,905,217  bolivars  ($660,707).  The  capital  of  this 
bank  has  since  been  increased  to  12,000,000  bolivars  ($2,316,000), 
with  the  reserve  fund,  on  May  31,  1920,  at  2,244,823  bolivars 
($433,251)  and  the  guaranty  fimd  at  1,179,812  bolivars  ($227,704). 
Currency  of  the  Banco  de  Venezuela  in  circulation  May  31,  1920, 
anaounted  to  17,879,250  bolivars  ($3,450,696),  with  an  additional 
375,690  bolivars  ($72,508)  on  hand  in  the  main  office  at  Caracas  and 
5,464,920  bolivars  ($1,064,730)  on  hand  in  branches  throughout  the 
country,  making  the  total  bill  issue  on  May  31, 1920,  23,719,860  boli- 
vars ($4,578,933).  Loans  amounted  to  27.387,969  bolivars  ($5,285,- 
878)  and  the  cash  on  hand  to  45,735,788  bolivars  ($8,827,007)  in  gold 
coin,  1,424,306  bolivars  ($274,891)  in  silver,  and  939  bolivars  ($181) 
in  nickel,  or  a  total  of  48,688,643  ($9,377,608).  Earnings  totaled 
6,627,984  bolivars  ($1,279,201).  The  sight  deposit  of  the  National 
Government  totaled  on  May  31,  1920,  the  sum  of  61,536,944  bolivars 
($11,876,630) ,  this  huge  sum  being  payable  on  demand  to  the  Govern- 
ment in  gold  coin,  according  to  the  contract  with  the  Government  and 
certain  subsequent  regulations  imposed  by  the  Ministry  of  Finance 
(Hacienda) . 

The  shares  of  the  Banco  de  Venezuela  were  quoted,  August  14, 
1920,  at  160  per  cent — coupons  at  162  per  cent.  A  considerable  reduc- 
tion in  the  market  price  of  the  stock  was  registered  after  the  estab- 
lishment of  the  Royal  Bank  of  Canada  in  Caracas  on  October  1, 1916, 
because  of  the  lowering  of  interest  rates  and  the  selling  of  exchange 
on  a  4-point  margin  instead  of  the  old  margin  of  10  points.  On 
account  of  the  entry  of  foreign  banks  into  the  field,  the  Banco  de 
Venezuela  and  other  native  banks  have  had  to  lower  interest  rates  to 
as  low  as  8  per  cent  and  to  handle  telegraphic  transfers  of  funds  and 
drafts  at  as  low  as  ^  per  cent. 

In  September,  1920,  when  the  financial  and  commercial  situation 
became  acute  and  credits  were  heavily  restricted  by  all  the  banks  in 
Venezuela,  interest  rates  were  again  raised,  the  prevailing  rate  being 
10  per  cent  for  first-class  loans.  This  increase  was  put  in  force  by  afl 
the  foreign  banks  at  about  the  same  time. 


376     VENEZUELA:  A  COMMEBOIAL  AND  INDUSTRIAL  HANDBOOK* 

At  the  same  time  the  bank's  margin  on  exchange  transactions  was 
increased  from  4  to  10  points  in  order  to  afford  greater  protection  dur- 
ing the  period  of  violent  fluctuation. 

In  1920  a  proposition  was  submitted  to  the  stockholders  to  increase 
the  capital  ot  the  Banco  de  Venezuela  to  24,000,000  bolivars  ($4,632,- 
000) .  Bondholders  were  to  signify  their  intention  to  take  lip  the  new 
issue  by  the  last  of  September,  fiate  in  December  it  was  announced 
that  the  new  stock  had  been  fully  subscribed. 

According  to  the  new  contract  with  the  Government  (published 
June  26, 1920)  the  rate  of  commission  was  to  be  IJ  per  cent  for  1920, 
1^  per  cent  for  1921,  and  1  per  cent  thereafter  for  a  period  of  eight 
years  from  date.  The  bank  is  accorded  telegraph  and  postal  frank 
throughout  the  country.  Being  the  fiscal  agents  of  the  Government, 
this  bank  is  practically  under  Government  control  through  the  Min- 
istry of  Hacienda  (Finance),  and  its  action  in  the  commercial  field 
is  therefore  limited  to  a  great  extent,  although  the  management  is 
progressive  and  fully  alive  to  the  economic  necessities  of  the  country 
m  relation  to  banking.^ 

BANK  OF  CARACAS. 

The  Bank  of  Caracas  was  established  in  1890,  exclusively  as  a 
commercial  bank,  capitalized  at  6,000,000  bolivars  ($1,158,000). 
Three-fourths  of  the  capital  was  paid  in,  divided  into  600  nominal 
shares  of  10,000  bolivars  ($1,930)  each,  subscribed  by  resident  mer- 
chants in  the  country.  Branches  of  this  bank  are  located  at  La 
Guaira,  Carupano,  Barcelona,  Ciudad  Bolivar,  Puerto  Cabello,  Coro, 
and  Maracaibo.  In  other  cities  it  makes  use  of  the  agencies  of  the 
Bank  of  Venezuela. 

This  bank  possesses  the  right  to  issue  9,000,000  bolivars  ($1,737,000) 
in  bank  notes.  The  issue  of  bank  notes  up  to  within  one-tenth  of  the 
stock  issue  is  allowed  by  the  charter.  A  dividend  of  8  per  cent  is 
paid.  The  capital  in  1919  stood  at  6,000,000  bolivars  ($1,158,000),  pf 
which  4,600,000  bolivars  ($868,500)  had  been  paid  up. 

The  balance  sheet  of  the  Banco  de  Caracas  has  shown  for  the  past 
three  years  a  cash  position  fluctuating  between  3,000,000  and  5,000,000 
bolivars,  the  proportion  represented  by  gold  coin  having  increased 
from  1,700,000  bolivars  ($328,100)  in  December,  1916,  to  2,400,000 
bolivars  ($463,200)  in  February,  1919.  The  total  increase  in  gold 
coin  held  by  the  two  leading  native  banks  of  Caracas  was  about 
7,500,000  bolivars  ($1,447,500),  while  the  advance  in  the  total  gold 
imports  and  exports  was  about  27,000,000  bolivars  ($5,211,000),  with 
a  net  increase  of  about  20,000,000  bolivars  ($3,860,000)  of  imports 
over  exports. 

For  a  number  of  years  past  the  policy  of  the  Banco  de  Caracas  has 
been  a  very  conservative  one;  ordinarily,  only  first-class  real-estate 
mortgages  are  taken  as  security  for  loans,  the  bank  having  the 
reputation  of  specializing  in  this  class  of  business.  Since  the  estab- 
lishment of  the  foreign  branch  banks  in  the  country  this  bank  has 

1  The  president  of  the  Banco  de  Venezuela  is  one  of  the  members  of  the  loan  and  credit 
committee  of  the  American  Mercantile  Bank  of  Caracas,  and  under  his  direction  the 
Banco  de  Venezuela  extends  banking  assistance  to  all  the  foreign  branch  banks  located 
in  the  country  and  cooperates  with  them  to  the  fullest  possible  extent. 


BAKKS  AND  BAKKING.  877 

adopted  numerous  reforms  and  more  modem  commercial  methods, 
and  has  made  excellent  progress  in  many  new  lines. 

The  following  statement  shows  the  condition  of  the  Banco  de 
Caracas  as  of  June  30,  1920 : 

Bolivars. 

Gro3S  profits  for  the  half  year 630, 061 

Plus  former  surplus 93,  383 

723,444 
Less  discounts  on  obligations  due 105, 674 

617, 770 
Less  expenses  and  amortization  fund i 115, 047 

Leaving  a  net  profit  for  the  six  months  of 502, 723 

Amount  belonging  to  reserve  fund 40, 934 

Amount  belonging  to  guaranty  fund 20, 467 

61,401 

441, 322 
Amounts  received  by — 

Manager 3, 667 

Directors 3, 666 

Employees 11, 000 

18,333 

422, 989 
Amounts  distributed — 

In  April,  1920 60, 000 

In  June,  1920 60, 000 

120, 000 

Leaving 302, 989 

Dividend  of  300  bolivars  per  share  ordered  by  directorate.  180, 000 

Balance  left  in  reserve  for  next  semester 122, 989 

The  profit-and-loss  account  June  30, 1920,  was : 

Balance  left  over  from  preceding  semester 93, 383 

Gross  profits 630,061 

723, 444 

Less — 

General   expenses 109, 489 

Depreciation,  building 3,  718 

Insurance 1, 840 

Discounts  of  obligations  due 105,674 

220, 721 

Net  earnings,  six  m6nths____ 502, 723 

The  June  30,  1920,  balance  sheet  of  the  Banco  de  Caracas  shows 
the  following  items  of  interest:  Cash  on  hand,  3,717,970  bolivars 
($717,568),  of  which  the  sum  of  2,100,043  bolivars  ($405,308)  was 
held  in  gold  coin.  Other  assets  amounted  to  5,379,748  bolivars 
($1,038,291),  of  which  3,000,886  ($1,038,291)  was  in  30-day  paper. 
Loans  amounted  to  5,379,748  bolivars  ($1,038,291) ,  of  which  4,436,347 
($856,215)  was  in  real-estate  mortgage  loans.  Property  held  under 
mortgage  was  given  as  2,796,579  bolivars  ($539,740),  and  holdings 
in  guaranty  amounted  to  34,889,923  bolivars  ($6,733,755).  Bills 
amounted  to  a  total  of  5,820,000  bolivars  ($1,123,260),  with  5,678,800 
($1,096,008)  in  circulation.  Deposits  amounted  to  a  total  of  6,- 
136,338  bolivars  ($1,184,313),  of  which  open  accounts  reached  the 


878   veneztjeia:  a  commeecial  akd  industrial  handbook. 

sum  of  4,390^83  bolivars  ($847,383)  and  1,028,885  bolivars 
($198,675)  was  held  in  the  savings  department.  The  reserve  fund 
was  1,218,901  bolivars  ($235,248)  and  the  guaranty  fund  500,000 
bolivars  ($96,500). 

BANK  OF  MARACAIBO. 

The  Bank  of  Maracaibo  was  founded  in  1889  with  a  capital  of 
1,250,000  bolivars  ($241,250),  three-fourths  of  which  was  paid  in. 

The  administration  is  carried  on  hy  three  principal  and  three  sup- 
plementary (alternate)  directors,  five  principal  and  five  supple- 
mentary members  of  the  assembly  of  delegates,  two  principal  and 
two  supplementarv  commissioners,  and  two  fiscal  inspectors.  The 
Banco  de  Maracaibo  is  also  a  bank  of  issue,  making  the  third  of  the 
native  banks  possessing  this  privilege  in  Venezuela. 

The  balance  sheet  ror  the  month  of  May,  1920,  showed  bills  in 
circulation  amountinff  to  1,807,280  bolivars  ($348,805),  with  67,720 
bolivars  ($13,070)  in  hand.  Cash  on  hand  amounted  to  921,447  boli- 
vars ($177,839),  of  which  783,250  bolivars  ($151,167)  was  in  gold 
coin.  Deposits  amounted  to  1,965,970  bolivars  ($379,432).  Loans 
were:  Real  estate,  974,947  bolivars  ($188,165);  real  and  personal, 
28,806  bolivars  ($5,560);  and  personal  (firms),  876,492  bolivars 
($169,163).    The  reserve  fund  was  125,000  bolivars  ($24,125). 

The  Bank  of  Maracaibo  confines  its  operations  to  that  city  and 
district. 

COMMERCIAL  BANK  OF  MARACAIBO. 

The  Commercial  Bank  of  Maracaibo  was  established  in  that  city  in 
September,  1915.  Its  capital  is  only  400,000  bolivars  ($77,200). 
but  it  promised  to  be  of  considerable  local  importance  owing  to  the 
introduction  of  new  banking  methods  and  relief  to  the  borrower 
from  the  high  interest  rates.  The  balance  sheet  of  this  bank  for 
June  30,  1920,  showed  a  total  of  1,352,384  bolivars  ($261,010).  Cash 
amounted  to  366,903  bolivars  ($70,812),  of  which  there  was  317,628 
bolivars  ($61,302)  in  gold  coin,  30,675  bolivars  ($5,920)  in  silver, 
3,950  bolivars  ($762)  in  bills  of  the  same  bank,  and  14,650  bolivars 
($2,827)  in  bills  of  other  banks. 

DESCHANEL  INTERNATIONAL  CORPORATION. 

The  Deschariel  International  Corporation  of  Venezuela,  with 
branches  in  Paris,  New  York,  Bordeaux,  and  Zurich,  does  a  general 
mercantile  banking  business,  maintaining  also  a  savings  department 
in  which  6  and  6  per  cent  is  paid  on  deposits,  interest  being  credited 
monthly,  with  the  condition  that  there  shall  be  no  loss  of  interest 
to  date  if  the  deposit  is  withdrawn  before  the  expiration  of  the 
time  limit  stipulated. 

HOLLANDSCHE  BANK  VOOR  WEST-INDIE. 

The  HoUandsche  Bank  voor  West-Indie  in  Caracas  also  maintains 
a  savings  department,  as  do  all  the  other  foreign  branch  banks  and 
the  American  Mercantile  Bank  of  Caracas. 


BANKS  AKD  BANKING.  379 

CHARACTER  OF  BUSINESS  CARRIED  ON  BY  NATIVE  BANKS. 

The  business  of  the  native  banks  may  be  outlined  as  follows :  * 

Discounts. — ^Notes  and  commercial  paper. 

Loans, — Fixed  term,  secured  by  satisfactory  guaranties  or  stocks  or  other 
securities  of  market  value. 

Credits, — Open  accounts  secured  by  stocks  or  other  security. 

Deposits, — Checking  accounts  or  term  deposits. 

Collections, — CoUection  of  coupons,  notes,  and  commercial  paper,  in  Vene- 
zuela. 

Trust  departfnent, — Receipt  of  all  kinds  of  values  in  trust  under  conditions 
specially  arranged. 

Brokerap^  department — ^Buying  and  selling  of  property,  stocks  and  bonds, 
and  other  values  in  accordance  with  instructions. 

Payments  and  remittances, — Taking  charge  of  payments  in  Caracas  and 
throughout  the  country  and  making  remittances ;  also  foreign,  business. 

Exchange^  international. — ^Taking  drafts  on  foreign  banks,  issuing  drafts, 
checks,  and  orders  by  telegraph  and  cable,  etc. ;  foreign  business. 

Letters  of  credit, — Venezuela  and  foreign  capitals. 

Savings  bank  department. — Operated  according  to  banking  regulations. 

PROGRESS  OF  BANKING  SYSTEM. 

The  banking  laws  of  Venezuela  established  in  1904  a  new  national 
bank  of  issue  and  a  bank  of  mortgage  credit.  As  a  rule,  difficulty 
existed  in  mortgaging  property,  despite  the  natural  richness  of  the 
country,  as  the  large  exporting  houses  took  the  mortgages  at  ian 
annual  interest  of  12  per  cent,  a  rate  too  high  for  encouragement 
of  the  industry  of  the  country.  Since  the  establishment  of  foreign 
banks  in  Venezuela  rates  have  been  normalized  at  between  8  and  9 
per  cent  for  prime  commercial  loans  (1920),  with  interest  on  favor- 
able balances  paid  by  the  banks  at  4  per  cent  per  annum.  ^ 

Great  progress  of  Venezuela's  banking  system  began  in  1916  and 
continued  throughout  1917,  1918,  and  1919.  In  the  Federal  District 
and  Maracaibo,  banking  enterprises  were  organized,  as  well  as  a 
number  of  commercial  and  industrial  enterprises.  The  Royal  Bank 
of  Canada,  which  opened  for  business  in  Puerto  Cabello  in  October, 
1916,  was  the  first  foreign  institution  to  engage,  strictly  speaking, 
in  the  banking  business  of  the  Republic.  It  was  also  the  only  bank- 
ing house  of  Puerto  Cabello  that  could  supply  the  needs  of  commerce, 
as  the  agency  of  the  Banco  de  Venezuela  can  transact  only  a  limited 
class  of  business.' 

For  institutions  to  become  banks  of  issue,  a  considerable  amount 
of  Government  control  and  supervision  is  required.  The  particular 
operations  of  these  banks  are  governed  by  special  statutes,  and  busi- 
ness operations  in  general  by  the  Code  of  Commerce.  Venezuelan 
law  permits  any  foreign  bank,  properly  chartered  under  the  laws 
of  its  own  country,  to  do  business  in  the  Republic  upon  filing  a  cer- 
tification of  its  charter  and  duly  registering  in  accordance  with  the 
laws. 

BUSINESS  OF  FOREIGN  BANKS. 

The  business  of  the  foreign  banks  consists  largely  of  commercial 
loans,  usually  made  by  overdrafts,  of  exchange  transactions,  etc. 

'  — — - 

'A  great  part  of  the  business  is  in  loans  by  credits  in  open  accounts,  often  yfithout 

security. 
•Commerce  Reports,  Dec.  17,  1917,  p.  339. 


380     VENEZUELA:  A  COMMERCIAL  AKD  INDUSTRIAL  HANDBOOK. 

These  banks  do  not,  as  a  rule,  make  advances  on  the  products  of  the 
country,  as  is  often  done  by  the  native  banks;  although  advances 
against  products  are  the  specialty  of  the  American  Mercantile  Bank 
of  Caracas  and  the  Commercial  Bank  of  Spanish  America.  Deposits 
are  small,  and,  in  the  past,  foreign  banks  have  found  themselves  con- 
stantly in  the  need  of  importing  gold,  their  inability  to  do  which  in 
1917  completely  upset  the  market.* 

FACTORS  AFFECTING  BANKING  ACTIVITIES. 

Venezuelan  silver  coins  are  on  a  parity  with  gold.  Paper  currency 
issued  by  the  Banco  de  Venezuela,  Banco  de  Caracas,  and  Banco  ae 
Maracaibo,  although  not  legal  tender,  is  generally  accepted  at  its  face 
value.  The  circulation  of  bank  notes  is  limited  in  the  interior  because 
of  the  usual  aversion  of  the  people  to  paper  money,  even  though  it  is 
perfectly  guaranteed.  Contracts,  mortgages,  bank  notes,  and  other 
obligations  are  pajrable  in  gold,  with  the  exception  of  an  obligatory 
amount  of  silver  limited  to  500  bolivars  ($96.50),  and  the  ban&  that 
issue  notes  do  so  only  against  deposits  of  gold,  though  a  certain 
amount  of  prime  30-day  commercial  paper  is  taken  into  considera- 
tion. The  State  does  not  issue  notes  or  compete  with  the  banks  in 
issuing  paper  money.  On  the  whole,  banking  le^slation  is  similar  to 
that  of  the  United  States.  Interest  rates  range  from  8  to  10  per  cent 
per  annum  for  commercial  loans ;  this  is  not  high  for  a  country  that 
needs  as  much  capital  as  Venezuela. 

HANDLING  OF  DRAFTS. 

The  handling  of  drafts  forms  an  important  part  of  the  banking 
business  of  the  country.  Foreign  drafts  on  Venezuela  are  subject  to  a 
graduated  stamp  tax,  from  0.05  bolivar,  for  drafts  valued  at  25  to  50 
bolivars,  to  1  bolivar  on  drafts  valued  at  601  to  1,000  bolivars  (1  boli- 
var=$0.193).  In  case  of  drafts  sent  from  the  interior  for  collection, 
the  drawee  does  not  pay  collection  charges  or  for  the  stamps,  as  the 
purchaser  assumes  the  charges,  which  were  formerly  met  by  certain 
of  the  banks.  Sending  drafts  to  the  banks  with  documents  attached 
affords  no  protection  to  the  foreign  seller,  as  the  consignee  named  in 
the  invoice  can,  for  a  small  sum,  secure  similar  documents  from  the 
customhouse  (see  p.  896).  In  order  to  obviate  this  difficulty  and  to 
furnish  protection  to  American  exporters,  the  American  Mercantile 
Bank  of  Caracas  (Banco  Mercantil  Americano  de  Caracas)  has  es- 
tablished branches  at  La  Guaira  and  Puerto  Cabello  which  receive 
consignments,  charging  the  importer  the  current  commission  of  1  per 
cent  for  clearing  the  goods  through  the  customhouse  and  reshippmg 
to  Caracas  or  the  interior— delivering  the  merchandise  to  the  importer 
only  against  payment  or  acceptance  of  the  draft,  or  in  accordance 
with  other  special  instructions  by  the  shippers. 

GOLD  AND  SILVER  COIN  IN  VENEZUELA. 

The  total  increase  in  gold  coin  held  by  the  banks  of  Venezuela  and 
the  Bank  of  Caracas  during  the  past  three  years  was  about  7^500,000 
boliyars  ($1,447,500),  while  the  advance  in  the  total  gold  imports 

«  Commerce  Reports,  Apr.  8,  1918,  p.  98. 


BANKS  AND  BANKING. 


381 


and  exports  was  about  27,000,000  bolivars  ($5,211,000),  with  a  net 
increase  of  about  20,000,000  bolivars  ($3,860,000)  of  imports  over 
exports. 

According  to  the  experience  of  expert  authorities  on  the  gold  situa- 
tion in  Venezuela,  about  one-half  of  the  gold  receipts  was  in  perma- 
nent circulation  in  various  parts  of  the  country,  most  of  the  rest  being 
held  bv  the  remaining  banks  as  a  reserve,  though  at  least  25  per  cent, 
or  $1,000,000,  is  in  the  hands  of  the  large  Oerman  houses  in  Caracas 
and  Maracaibo  which  had  hoarded  gold  as  a  means  of  protection  dur- 
ing the  war  period.  Although  official  confirmation  is  lacking,  reliable 
sources  state  that  the  Banco  de  Venezuela  has  gradually  converted  its 
receipts  into  gold  coin,  until  a  large  portion  of  the  Government  de- 
posits on  the  books  of  the  bank  in  1919  (35,000,000  bolivars)  was 
actually  represented  by  gold  coin  slowly  withdrawn  from  circulation. 
At  various  times  during  1917  and  1918  the  Bank  of  Venezuela,  be- 
cause of  the  shortage  of  silver  and  paper  currency,  was  forced  to  dis- 
burse gold  coin  in  payment  of  checks,  but  as  most  of  this  gold  was 
subsequently  returned  in  the  shape  of  deposits  no  serious  effect  was 
sustained. 

No  gold  coin  is  seen  in  or  around  Caracas,  the  capital,  and  very 
little  in  the  other  principal  business  centers  of  the  country,  it  being 
held  by  the  banks.  But  gold  and  silver  coin  is  used  exclusively  by 
the  people  of  the  great  western  Andean  region  and  throughout  the 
sparsely  populated  llanos  in  the  cattle  country,  where  the  gold  is 
hoarded  and  is  consequently  lost  to  circulation.  In  the  commercial 
centers  the  paper  currency  of  the  banks  of  issue  is  the  principal 
medium  of  exchange.  There  is  an  irreducible  minimum  of  paper 
currency  needed  for  daily  commercial  use,  therefore,  with  a  total  of 
approximately  13,636,610  bolivars  ($2,612,373)  issued  up  to  May  31. 
1920  (exact  figures  taken  from  balance  sheets  of  the  three  banks  oi 
issue),  distributed  as  follows:  - 

* 

JBanco  de  Venezuela :  In  hand,  375,690  boUvars  ($72,508) ;  in  circulation, 

5,464,920  bolivars  ($1,054,730). 
Banco  de  Caracas:  In  hand,  141,200  boUvars  ($27,252);  in  circulation, 

5,678,800  bolivars  ($1,095,008). 
Banco  de  Maracaibo:  In  hand,  67,720  bolivars  ($13,070.) ;  in  circulation, 

1,807,280  bolivars  ($348,805). 

Even  if  the  gold  reserves  of  the  banks  should  become  depleted  there 
is  little  danger  of  a  run  on  these  banks  to  convert  paper  into  gold 
according  to  law,  as  this  would  immediately  stop  all  business  and  a 
moratorium  would  have  to  be  declared. 

The  following  table  shows  Venezuela's  imports  and  exports  of 
gold: 

(1  boUTar-10.193.] 


Years. 


1915. 
1916. 
1917. 
1918. 
1919. 


Gold  coin 
importdd. 


Bolivart. 


9,229,886 
18,448,511 

6,149,131 
46,223,397 


Odd  dust 
and  bars 
exported. 


BcUvart. 


1,613,676 
26,617 


2,498,639 


NetgaiB 

for 

Vemetaela. 


Bottvart. 
130,340,822 

7,616,209 
18,421,894 

6,149,131 
48,724,768 


>  <)Dantit7  of  gold  in  country. 


882     VENEZUELA :  A  COMMERGIAIi  AND  IKDVSTBIAL  HANDBOOK. 

Therefore  the  stock  of  coined  gold  existing  in  Venezuela  at  the  dose 
of  the  year  1919  amounted  to  106,252,824  bolivars  or  $20,506,796 
American  gold.  The  population  having  been  stated  as  2,844,618, 
the  actual  amount  of  gold  in  the  country  per  capita  may  be  estimated 
to  be  37.35  bolivars  or  $7.21 ;  the  total  per  capita  at  the  end  of  1918 
was  only  23.16  bolivars,  or  $4.63,  showing  an  increase  of  $2.58  per 
capita  during  1919  as  a  result  of  the  heavy  importations  of  American 
gold  to  balance  the  favorable  trade  balance  of  Venezuela. 

The  stock  of  silver  existing  in  Venezuela  is  estimated  at  about 
40,000,000  bolivars  (about  $8,000,000).  In  1918  the  per  capita  in 
silver  was  estimated  to  be  14.82  bolivars,  or  $2.26. 

INTEREST  PAID,  BANKING  METHODS,  ETC 

As  a  rule  no  interest  is  paid  on  deposits  of  current  account.  Time 
deposits  and  savings  accounts  pay  3  per  cent.    Interest  rates  were  8 

Eer  cent  per  annum  on  short-term  commercial  paper,  but  this  rate 
as  been  increased  in  1920,  in  most  cases,  to  9  per  cent  on  prime  com- 
mercial paper,  and  during  the  latter  part  of  the  year^  to  10  per  cent. 

When  the  National  City  Bank  of  New  York  established  its  branch 
in  Caracas  in  September,  1917,  it  was  planned  to  allow  six  months 
credit  to  merchants,  with  privilege  of  extension — leaving  the  mer- 
chants to  finance  the  coffee  and  cacao  growers,  instead  of  advancing 
funds  directlv  to  the  planters  as  was  the  old  German  system  carried 
out  by  the  German  commercial  houses  handling  exports  as  well  as 
imports  and  doing  a  private  banking  business.  This  policy  of  protec- 
tion of  the  merchants  is  calculated  to  give  prestige  with  customers 
that  was  not  enjoyed  under  the  old  German  system. 

The  Commercial  Bank  of  Spanish  America  does  a  general  com- 
mercial banking  business  and  acts  as  eiport  and  import  commission 
agent,  also  makmg  advances  on  products  of  export. 

All  the  foreign  branch  banks,  including  the  American  Mercantile 
Bank  of  Caracas,  have  savings  departments. 

Advertisements  of  the  Deschanel  International  Corporation  an- 
nounce the  payment  of  5  and  6  per  cent  interest  on  savings  and  time 
deposits,  with  interest  credited  monthly  and  no  loss  of  interest  to 
date  upon  removal  of  deposits  before  the  expiration  of  the  time  limit. 
This  concern  also  represents  a  number  of  European  commercial  houses 
and  does  a  general  import  and  export  commission  business. 

EFFECT  OF  FOREIGN  BANKS. 

The  establishment  of  foreign  branch  banks  in  Venezuela  has 
greatly  facilitated  business  in  jul  lines.  Long-term  loans  and  exten- 
sive credits  have  been  made  possible  and  credit  facilities  greatly 
extended.  The  native  banks  have  had  to  meet  this  new  competition 
by  granting  more  liberal  terms  to  importers  and  exporters  and  busi- 
ness people  in  general. 

The  aouses  of  the  exchange  situation  have  been  corrected,  and 
importers  aYe  now  purchasing  drafts  directly  from  the  banks  instead 
of  from  the  exporters  who  held  the  paper. 

Native  banks  required  excessive  security  for  loans  and  made  as 
high  as  4  per  cent  in  selling  and  buying  drafts.    Interest  rates  have 


BANKS  AND  BANKING.  388 

been  lowered  from  the  former  figures  of  10  and  even  12  per  cent  (or 
more)  to  a  uniform  8  and  9  per  cent  under  normal  conditions. 

The  entire  system  of  banking  in  Venezuela  has  been  modernized 
through  the  influence  of  the  foreign  branch  banks,  and  it  may  be 
said  that  the  country  is  very  well  taken  care  of  in  all  financial  and 
banking  lines,  the  service  being  entirely  adequate  to  the  present  needs 
of  the  country. 

STAMP  TAXES  IN   CONNECTION  WITH  DRAFTS. 

As  the  handling  of  drafts  forms  such  an  important  part  of  bank- 
ing business  in  Venezuela,  the  following  points  may  be  of  interest 
in  regard  to  them.  Drafts  of  all  kinds  must  bear  stamps  according 
to  their  value  as  shown  below : 


Value  of  draft. 

Stamp 
required. 

Value  of  draft. 

Stamp 
required. 

25  to  50  bolivars 

BoUoar. 

0.05 

.10 

.20 

.30 

301  to  400  bolivars 

BoHvar. 
0.40 

61  to  100  bolivars 

401  to  500  bolivars 

.50 

101  to  200  bolivars 

501  to  1.000  bolivars 

LOO 

201  to  300  bolivars 

For  sums  larger  than  those  shown  above  the  tax  is  1  bolivar 
($0,193)  for  each  1,000  bolivars  or  fraction. 

In  case  of  drafts  from  foreign  countries  sent  for  collection,  accord- 
ing to  local  custom,  the  drawee  does  not  pay  collection  charges  or 
stamps.  The  purchaser  of  a  draft  in  Venezuela  pays  for  the  stamps, 
though  formerly  certain  banks  assumed  this  charge. 

Foreign  branch  banks,  when  affixing  stamps  on  drafts  presented 
in  Venezuela  for  collection,  charge  for  the  amount  so  expended  and 
remit  the  net  proceeds  of  the  dralt  collected. 

In  an  opinion  handed  down  by  the  Direccion  de  la  Renta  Interna 
(Internal  Eevenue  Bureau)  in  Caracas,  July  7,  1920,  addressed  to 
the  various  banks  of  the  city,  signed  bj  the  Minister  of  Finance  (Ha- 
cienda) and  referring  to  the  application  of  article  15  of  the  national 
stamp  law,  which  deals  with  stamps  on  drafts  for  collection  and 
other  similar  documents,  it  was  held  that  no  doubt  could  attach  to 
the  meaning  of  this  article,  even  if  "  documents "  were  referred  to 
in  a  general  way,  the  meaning  being  for  any  documents  or  instru- 
ments of  any  nature  whatever  in  which  an  obligation  or  right  is 
expressed,  and  that  drafts  for  collection  were  held  to  be  within  this 
meaning  and  therefore  subject  to  the  requirements  of  the  stamp-tax 
law  in  order  to  acquire  legal  validity  and  sanction,  even  in  case  these 
documents  (such  as  drafts  for  collection  in  Venezuela  from  the 
United  States  or  European  countries)  do  not  originate  in  the  coun- 
try. Their  effect  is  in  V  enezuela,  and  recourse  is  had  to  Venezuelan 
public  functionaries  for  the  effects  of  the  laws,  therefore  drafts  and 
other  foreign  documents  used  in  Venezuela  are  subject  to  the  pay- 
ment of  the  usual  stamp  taxes  required  by  the  Ley  del  Impuesto 
Nacional  de  Estampillas,  article  16. 

BANKING  LAWS  OF  VENEZUELA. 

In  a  report  dated  July  6,  1918,  the  American  minister  at  Caracas 
writes  that  according  to  the  law  formerly  in  force  and  also  the  one 


384     VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

that  had  just  been  enacted  by  the  Congress  and  approved  by  the 
Provisional  President,  banks  in  Venezuela  are  classified  in  three 
groups,  as  follows : 

1.  Deposit,  drawing  or  checking,  and  loan  and  discount  banks. 

2.  Banks  of  issue. 

3.  Real-estate  and  mortgage  banks. 

BANKS  OF  DEPOSIT. 

Banks  included  in  the  first  group  may  be  established  in  the  same 
manner  as  any  other  commercial  firm — that  is,  by  one  individual,  by  a 
private  firm,  by  silent  partnership  of  shareholders,  and  by  limited 
stock  companies.  Foreign  capitalists  desiring  to  establi^  a  bank  of 
this  kind  in  Venezuela  are  required  to  comply  with  the  general  provi- 
sions of  the  Code  of  Commerce,  either  for  single  individuals  or  for 
any  of  the  various  kinds  of  companies  recognized  by  Venezuelan 
law.  These  provisions  and  requisites  are  as  follows:  For  an  in- 
dividual it  will  suffice  to  register  at  the  commercial  court,  and  for 
a  private  firm  consisting  oi  more  than  one  individual  a  copy  of 
the  contract  between  the  partners  and  also  an  extract  or  summary 
of  the  same  must  be  filed  with  the  registry  of  commerce,  together 
with  the  names  of  the  partners  and  the  title  of  the  firm.  In  the 
case  of  a  simple  partnership  of  shareholders,  the  acting  partners 
must  register  the  company,  stating  that  there  is  a  silent  partnership 
and  giving  the  amount  of  the  capital  paid  up  or  to  be  paid  up.  In 
the  case  of  a  stock  company  or  a  silent  partnership  of  shareholders 
the  managers,  within  10  days  after  the  first  session  of  the  founders 
or  organizers  ("constitutive  assembly")  should  make  a  declaration 
before  the  commerce  court  stating  that  all  requirements  have  been 
complied  with  for  the  organization  of  the  company.  To  such  dec- 
larations there  must  be  attached  a  complete  list  of  the  sharehold- 
ers, a  statement  of  the  paid-up  capital,  a  copy  of  the  acts  of  the 
assembly,  and  a  copy  of  the  by-laws.  This  declaration  must  be  pub- 
lished in  the  local  papers  within  the  same  period  of  10  days. 

But  if  the  bank  is  established  abroad  and  the  purpose  is  to  operate 
in,  or  establish  branches  in,  Venezuela,  the  necessary  distinction 
should  be  made ;  that  is,  if  it  is  not  a  stock  company  or  silent  partner- 
ship of  shareholders,  the  provisions  of  the  Commercial  Code  should 
be  complied  with ;  if  it  is  a  silent  partnership  or  stock  company,  the 
company  should  be  registered  in  the  registry  of  commerce  of  the  place 
in  which  the  agency,  branch,  or  business  is  established,  and  publica- 
tion should  be  made  in  the  local  press  of  the  charter  and  other  docu- 
ments necessary  for  the  establishment  of  the  company,  according  to 
the  laws  of  the  country  of  origin ;  also,  a  legalized  copy  of  such  arti- 
cles of  the  law  as  are  applicable  in  Venezuela,  and  a  copy  of  the  com- 
pany's by-laws,  must  be  filed  with  the  regii^ry  of  commerce.  Any 
future  modification  of  a  contract  or  of  the  by-laws  is  subject  to  the 
same  requirement.  These  companies  should  have  in  Venezuela  a  rep- 
resentative duly  authorized  and  empowered,  within  the  terms  of  the 
contract  (or  concession)  and  the  titles  of  the  company.  (Arts.  294 
to  296  of  the  Commercial  Code.) 

If  the  company  is  formed  or  incorporated  in  a  foreign  country,  but 
its  principal  object  is  to  operate  in  Venezuela,  all  the  formalities  aix)ve 
mentioned  should  be  complied  with,  and  tne  company  will,  for  all 


BANKS  AND  BANKING.  385 

purposes  and  effects,  be  considered  a  native  institution.    This  is  ac- 
cording to  the  law  of  June  4,  1918. 

BANKS  OF  ISSUE. 

The  banks  of  issue  must  be  "  constituted  "  in  Venezuela,  in  accord- 
ance with  the  Venezuelan  laws,  and  must  have  their  principal  offices 
in  Venezuela.  Their  capital  must  be  in  legal  gold  coin.  They  must 
file  with  the  Ministry  of  Fomento  (Development)  a  complete  copy  of 
their  charter,  of  the  entry  made  at  the  registry  of  commerce,  and  of 
the  constitutive  documents  of  the  bank.  The  entry  made  at  the 
registry  of  commerce  must  include  a  statement  as  to  the  character  of 
the  bank,  its  name,  its  capital,  the  commercial  lines  iJb  will  exploit, 
its  address  and  legal  domicile,  and  a  certified  copy  of  its  by-laws, 
which  must  be  approved  first  by  the  Federal  Executive. 

Since  authority  to  issue  bank  notes  is  granted  only  by  the  Govern- 
ment, the  Federal  Executive  will  determine,  after  the  by-laws  are 
approved  and  the  other  documents  examined,  whether  or  not  it  will 

frant  the  necessary  licenses  to  issue  bank  notes  and,  if  it  will,  the 
ate  of  issue  and  all  other  details  concerning  them. 
After  the  bank  is  duly  constituted  and  the  licenses  to  issue  bank 
notes  have  been  granted,  there  will  be  applied  the  other  provisions 
of  the  law  pertaining  to  the  function  or  operation  of  the  bank. 

The  provisions  referred  to  in  the  last  three  of  the  foregoing  para- 
graphs are  contained  in  the  law  of  June  4, 1918. 

In  conclusion,  banks  of  issue  must  perform  the  following  essen- 
tial acts : 

1.  Lodge  with  the  Department  of  Public  Control  within  16  days 
following  that  of  their  formation  (with  an  extension  of  time  up  to 
15  days  further,  according  to  the  distance  of  the  place  of  the  regis- 
tration office)  a  full  and  duly  authenticated  copy  of  the  contract  of 
association,  if  there  should  be  one,  together  with  the  note  made  in  the 
public  registry  of  such  contract,  in  which  there  must  be  set  forth: 
(a)  The  name  assumed  by  the  bank;  (6)  the  capital  thereof;  (c)  the 
method  and  periods  in  which  said  capital  must  be  paid  up;  (d)  the 
object  which  the  institution  proposes;  (e)  the  place  of  its  registered 
office ;  (/)  its  duration.  . 

2.  Lodge  also  with  the  Department  of  Public  Control,  within  the 
same  period,  a  copy  of  the  regulations  of  the  bank,  in  which  there 
must  be  set  forth  with  the  utmost  clearness  its  internal  system  of 
control  and  the  conditions  of  its  operation. 

3.  Remit  to  the  Department  of  Public  Control  within  30  days  fol- 
lowing, and  advertise  in  the  press,  the  balance  sheet  of  each  month, 
extracted  from  its  books,  in  which  there  must  appear  the  total  amount 
of  notes  in  circulation  and  those  in  the  coffers  of  the  bank,  the  total 
of  the  deposits,  and  that  of  the  negotiable  securities  in  hand  which 
are  regarded  as  realizable  at  maturity ;  that  of  those  overdue,  of  those 
not  capable  of  realization,  and  of  those  carried  to  a  separate  account ; 
the  amount  of  the  advances  to  directors,  managers,  and  other  agents 
of  the  bank ;  and,  finally,  that  of  the  obligations  of  the  bank. 

The  bank  is  also  bound  to  declare,  to  the  Department  of  Public 
Control,  the  number  of  branches  it  founds,  with  a  statement  of  the 
capital  allocated  to  them  for  their  operations  and  of  the  place  of 
their  business. 

79747"— -22 ^26 


386     VENEZUEI4A :  A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

When  the  essentials  laid  down  in  paragraph  1  of  this  article  have 
been  fulfilled,  the  Federal  Executive  will  authorize  the  establishment 
of  the  bank. 

MORTGAGE  AND  BEAL  ESTATE  BANKS. 

Mortgage  and  real  estate  banks  operate  in  accordance  with  special 
laws,  and  as  no  special  law  has  been  promulgated,  the  formalities 
of  the  organization  of  such  bank  have  not  been  provided  for. 
Officials  of  the  Ministries  of  Finance  and  Fomento  (Development) 
have  stated  that  mortgage  and  real  estate  banks  are  subject  to  the 
provisions  of  the  Commercial  Code  and  of  the  law  of  June  4,  1918, 
above  mentioned. 

RECENT  BANKING  LEGISLATION. 

A  new  law  on  banking  was  published  in  Caracas  on  June  26, 1920, 
having  to  do  principally  with  the  Government  control  of  the  Bank 
of  Venezuela.  Commissions  for  services  as  the  fiscal  agent  of  the 
Government  were  fixed  at  IJ  per  cent  for  1920,  then  IJ  per  cent  for 
the  following  year,  and  1  per  cent  for  eight  vears  thereafter.  The 
bank  was  accorded  postal  and  telegraph  franfes  by  the  Government 
for  official  business  pertaining  to  the  collection  and  handling  of  Gov- 
ernment funds,  etc. 

During  this  same  session  of  Congress  a  new  banking  law  referring 
to  foreign  banks  and  their  branches  went  to  the  second  reading,  but 
is  now  in  suspension.  This  proposed  new  law,  never  published,  may 
be  said  to  have  been  copied  from  the  Federal  reserve  act  of  the 
United  States.  A  strong  protest  was  made  by  the  foreign  banks, 
their  objections  having  to  do  principally  with  the  provisions  of  the 
proposed  law  which  prohibited  the  investment  by  the  foreign  banks 
of  their  surplus  out  of  the  country. 


TARIFF  SYSTEM  AND  REGULATIONS  ON  IMPORT  TRADE. 

GENERAL  CHARACTER  AND  PURPOSE  OF  TARIFF  SYSTEM. 

While  serving  as  an  important  source  of  governmental  revenue, 
the  tariff  system  of  Venezuela  has  for  a  partial  purpose  the  encour- 
agement and  protection  of  domestic  agriculture  and  industry.  On 
manufactured  goods  the  import  duties  are  highly  protective,  and 
under  them  such  domestic  factories  as  have  been  established  can 
operate  at  a  profit  in  competition  with  foreign-made  imported  arti- 
cles, despite  the  fact  that  all  machinery  and  equipment  and  most  of 
the  raw  materials  have  to  be  imported  at  great  expense.  Thus,  the 
importation  of  shoes,  ready-maae  clothing,  laundry  soap,  matches, 
horseshoes,  trunks  ,and  furniture  is  so  heavily  taxed  as  to  be  com- 
mercially impossible.  Sea  salt  and  saccharin  and  similar  sugar 
substitutes  are  expressly  forbidden,  while  the  manufacture  of 
matches  is  a  Government  monopoly,  and  the  importation  of  war 
materials,  apparatus  for  coining  money,  silver^  nickel,  and  copper 
coins,  ana  cigarette  paper  is  reserved  to  the  National  Government. 

ARTICLES  ADMITTED  FREE  OF  DUTY. 

On  the  other  hand,  the  tariff  system  is  designed  to  encourage  na- 
tional development  alon^  broad  lines  by  exempting  from  import 
duties  agricultural  machines  and  tools;  equipment  for  sugar  mills; 
certain  machinery  for  mining,  foundries,  and  textile  mills;  heavy 
chemicals,  disinfectants,  and  fertilizers ;  printing  presses,  type,  and 
paper  for  scientific  publications  and  for  public  instruction;  certain 
classes  of  lumber;  and  even  common  ba^  when  intended  for  the 
reexportation  of  certain  native  products.  To  encourage  the  develop- 
ment of  the  oU  resources  of  the  country,  automobile  trailers  and  usual 
accessories,  much  in  demand  for  the  use  of  employees  of  petroleum 
development  companies,  have,  by  decree  of  September  17,  1921,  been 
transferred  to*  a  low-duty  class. 

The  full  list  of  articles  that  may  be  imported  into  Venezuela  free 
of  import  duty  is  as  follows: 

Carbolic  acid;  arsenic,  sulphur,  carbolineum,  creoline,  and  similar  disinfect- 
ants, chloro-naphtholeum,  sodic  crisodol,  calcium  chloride,  eucalyptus  (liquid), 
phenoline,  formaldehyde,  calcium  hypochlorite,  hyco,  corrosive  sublimate,  copper 
sulphate,  ferrous  sulphate,  sulphur  candles,  zenoleum,  and  other  liquids,  pastes, 
balls,  and  powders  used  to  exterminate  insects,  mice,  and  rats. 

Sulphuric  acid. 

Barbed  wire  for  fences,  iron  wire  netting  with  meshes  at  least  3  centimeters 
(1.18  inches)  ea<ih  way ;  other  iron  wire  netting  for  fencing  and  iron  staples  not 
less  than  2}  centimeters  (0.98  inch)  wide,  made  of  wire  exceeding  8  mUlimetera 
(0.12  inch)  in  diameter. 

Live  animals. 

Disinfecting  apparatus  of  aU  kinds. 

Apparatus  for  exterminating  insects  and  charges  therefor, 

Oofllns  containing  bodies  and  urns  with  ashes. 

Ck>al  and  carbons  for  electric  arc  lights. 

Calcium  carbide. 

Catalogues. 

Roman  cement. 

Wood  asheii 

387 


388    VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Ice,  when  imported  through  ports  where  there  are  no  factories  for  the  manu- 
facture of  ice  or  where  the  ice  factories  are  not  in  operation. 

Refractory  bricks,  earth,  sand,  and  stone. 

Latrines  and  urinals  with  their  accessories. 

Copy  books,  pamphlets,  and  schoolbooks,  and  Spanish  dictionaries. 

Books,  bound  or  unbound,  treating  of  sciences,  arts,  and  trades,  including 
Spanish  dictionaries. 

Haffkine's  vaccine ;  Yersln*s  serum. 

Machinery  for  mining  and  foundries  and  textile  machinery,  not  otherwise 
specified. 

Windmills  and  repair  parts  and  machines  for  drilling  artesian  wells. 

Small  samples  of  fabrics,  of  wall  paper  in  pieces  not  over  50  centimeters  (19.7 
inches)  long,  and  of  other  goods,  provided  they  are  not  salaUe.  (Samples  in 
excess  of  25  kilos  will  be  assessed  at  the  rate  of  0.25  bolivar  per  kilo. ) 

Gold  coin  of  legal  currency. 

Grape  skins ;  yeast,  alcoholic,  of  all  kinds. 

Live  plants,  bulbs,  and  tubers  not  specified,  for  agricultural  purposes. 

Printing  presses  and  type,  leads,  and  other  metal  articles  for  printing;  pre- 
pared ink,  including  that  used  in  lithography ;  heavy  paper  for  mining  matrices, 
and  the  alloy  of  lead  and  aluminum  (type  metal)  used  for  printing  by  the  stereo- 
type process. 

Bridges,  together  with  chains,  flooring,  and  component  parts,  when  imported 
by  agricultural  enterprises. 

Quinine  of  the  following  formulae : 

Quinine  sulphate  (CaoHa«N20,)S04H,-f  THsO. 

Quinine  bisulphate,  C5»HwNa08.S04H,+7H20. 

Quinine  hydrobromide,  C2oH24N202.HBr+H20. 

Quinine  hydrochloride,  C»H24N202.HCl-f  2H2O. 

Quinine  bihydrochloride,  C2oHa4N202.2HCl. 

Quinine  valerianate,  CaoH»tNa02.C5Hio02-f  12H20. 

Quinine  hydrochlorsulphate  (C2oH2iNa02)2HCl.S04H2+3H20. 

Common  secondhand  bags,  imported  to  be  used  for  the  exportation  of  man- 
grove bark,  mother-of-pearl  shell,  and  divi-divi,  provided  the  importer  prove  the 
reexportation  of  these  bags.  The  customs  authorities  will  require  the  importers 
to  give  security  for  the  amount  of  the  duty  on  the  bags  for  a  period  not  exceeding 
six  months. 

Natural  Stassfurt  salts,  Chile  saltpeter  (for  agricultural  uses  as  a  fertilizer), 
ammonium  sulphate,  potassium  sulphate,  acid  phosphates,  and  substances  not 
specified,  of  animal,  vegetable,  mineral,  or  composite  origin,  which  are  suitable 
for  use  only  as  fertilizers. 

Beams  of  pine  or  pitch  pine  exceeding  25  centimeters  (about  1  inch)  in 
thickness. 

Rat  and  mouse  traps. 

The  following  machines  and  implements  for  agricultural  use:  Stump  pullers; 
plows  and  plowshares;  fanning  mills,  sorters,  shellers,  pulpers,  washers,  pol- 
ishers, rakes,  driers,  separators,  and  hullers,  for  the  treatment  of  coffee;  hoes, 
mattocks,  bush  knives  (calabozos),  trowels,  shovels,  weed  hooks,  axes,  iron 
shovels,  picks,  pruning  knives  and  shears  of  all  kinds,  and  machetes  for  clearing 
the  ground,  with  or  without  wooden  handles;  fanning  miUs;  coconut  shellers; 
igrain  hullers ;  fiber  strippers ;  shellers ;  cotton  gins ;  weeders ;  manure  spreaders; 
manure  forks  and  sickles;  sprayers,  automatic,  for  watering  and  disinfecting; 
hydraulic  baling  presses  (prensas  para  empacar)  ;  oil  presses;  scrapers  for 
stripping  henequen,  pita,  and  similar  fibers;  rakes  and  similar  tools;  rollers 
and  clod  crushers  of  all  kinds ;  driers  for  the  treatment  of  cacao ;  reapers  and 
harvesters;  seeders;  haversacks;  and  repair  parts. 

Personal  effects  brought  in  by  foreign  diplomatic  ofl^cials  and  by  national 
envoys  upon  their  return,  subject  to  compliance  with  the  legal  formalities. 

Passengers*  baggage,  excepting  new  articles  and  furniture,  which  shall  be 
dutiable,  even  if  used,  according  to  the  proper  tariff  classification,  with  a  reduc- 
tion in  proportion  to  depreciation  caused  by  use. 

Note. — ^The  import  duties  on  new  articles  imported  as  baggage  shall  be  subject 
to  a  surtax  of  20  per  cent,  and  to  an  additional  surtax  of  30  per  cent  if  imported 
from  the  West  Indies. 

Apparatus  for  purifying,  clarifying,  evaporating,  and  granulating  sugar ;  brass 
pumps  for  cane  juice;  pumps  for  molasses;  sugar  carts;  centrifugal  machines; 
sugar-cane  carriers  with  their  iron  and  wood  fittings;  copper,  brass,  or  iron 
evaporating  pans  for  cane  juice;  bagasse  burners  and  grating;  bagasse  driers; 


TARIFF  SYSTEM  AND  REGULATIONS  ON  IMPORT  TRADE.         889 

Steel  tanks  with  conical  bottoms  for  cane  Juice;  steel  tanks  for  purified  cane 
Juice  and  for  cane  juice  sirup  (melado) ;  cylindrical  steel  tanks  for  hot  water, 
tanks  with  strainers  for  cane  juice ;  tanks  for  molasses ;  sugar  mills  and  spare 
parts ;  steam  pipes  and  other  articles,  including  buildings  and  railway  material, 
imported  for  the  establishment  of  sugar  centrals.    Small  iron  posts  for  fences. 

White  printing  paper,  neither  sized  nor  glazed,  intended  exclusively  for  print- 
ing of  periodicals  or  books  of  a  scientific  nature  or  for  public  instruction. 

Cloth-covered  cork  life-preservers. 

Raw  cotton. 

Sulphide  of  carbon. 

Eleven-inch  paper  strips  for  monotyi)e  printing  presses. 

Wire  covers  for  food. 

Flytraps. 

Paper  and  ribbon  for  catching  flies. 

Wooden  tjrpe  boxes. 

Composing  frames. 

Common  machetes. 

Rice  polishers. 

TREATMENT  OF  IMPORTS  FROM  VARIOUS  COUNTRIES. 

Venezuela  has  a  single-tariff  system,  the  rates  of  which  are  now 
applied  equally  to  imports  from  all  countries  except  those  from  the 
West  Indies,  which  are  subject  to  an  additional  surtax  of  30  per  cent 
of  the  import  duty,  in  accordance  with  the  law  of  June  4, 1881.  This 
tax  is  imposed  to  bring  about  the  establishment  of  wholesale  houses 
in  Venezuela  and  to  protect  Venezuelan  merchants  from  the  com- 

fetition  of  stocks  of  merchandise  maintained  in  some  of  the  West 
ndian  islands,  such  as  Trinidad  and  Curacao. 
The  Executive  is  authorized  to  increase  up  to  25  per  cent  the  im- 
port duties  on  goods  from  foreign  countries  which  do  not  provide 
in  their  treaties  with  Venezuela  for  most-favored-nation  treatment. 
Venezuelan  products  are  now  accorded  most-favored-nation  treat- 
ment in  the  United  States. 

TRANSLATIONS  OF  TARIFF  LAW  AVAILABLE. 

The  customs  tariff  law  under  which  imports  into  Venezuela  are 
now  assessed  has  been  in  effect  since  June,  1915,  the  changes  since 
that  time  having  provided  mainly  for  minor  increases  or  decreases 
in  duty  on  specific  articles  or  having  been  merely  changes  as  to  the 
classification  of  particular  goods. 

An  English  translation  of  "The  Customs  Tariff  of  Venezuela" 
was  published  by  the  United  States  Bureau  of  Foreign  and  Do- 
mestic Commerce  in  1916  (Tariff  Series  No.  33),  which  shows  the 
full  schedule  of  import  duties  in  dollars  and  cents  per  100  pounds, 
as  well  as  in  bolivars  and  kilos,  the  Venezuelan  units  of  value  and 
weight.  It  may  be  obtained  for  the  nominal  sum  of  15  cents  from 
the  Superintendent  of  Documents,  Government  Printing  Office, 
Washington,  D.  C,  or  from  any  of  the  district  or  cooperative  offices 
of  the  Bureau  of  Foreign  and  Domestic  Commerce.  The  minor  sub- 
sequent changes  have  been  published  from  t^me  to  time  in  Commerce 
Reports  and  may  be  learned  by  application  to  the  Bureau's  Division 
of  Foreign  Tariffs  at  Washington,  D.  C. 

Late  in  1920  the  Minister  of  Foreign  Relations,  Commercial  and 
Industrial  Bureau,  of  the  Venezuelan  Government^  completed  a  new 
English  translation  of  the  tariff,  which  includes  all  changes  and  new 


I 


890   VENEZUELA:  A  COMMEBOIAL  AND  INDUSTBIAL  HANDBOOK. 

rulings  up  to  June  30, 1920.  This  translation  is  to  be  published  and 
distributed  in  the  United  States  through  the  office  of  the  Venezuelan 
commercial  agent,  whose  headquarters  are  in  New  York  City. 

The  same  bureau  of  the  Venezuelan  Ministry  of  Foreign  Kelations 
is  also  preparing  translations  of  other  pertinent  laws  of  Veuecnela, 
such  as  the  customs  reflations  governing  masters  of  vessels,  the 
rules  for  preparation  of  invoices  and  shipping  documents,  pure-food 
law,  etc.  These  will  be  distributed  in  the  Umted  States  tnrough  the 
same  agencies. 

METHOD  OF  IMPOSITION  OF  IMPORT  DUTIES. 

CLASSIFICATION  OF  GOODS  FOR  DUTY  FURPOSBS. 

The  classification  of  dutiable  goods  under  the  present  tariff  law  is 
based  upon  the  character  of  the  articles  or  their  component  materials. 
The  rates  of  duty  in  the  Venezuelan  tariff  are  arranged  according 
to  a  schedule  of  9  classes,  with  rates  ranging  from  0.05  bolivar 
(about  $0.01)  per  kilo  ^ross  for  the  first  class,  to  20  bolivars  ($3.86) 
^er  kilo  gross  for  the  ninth  class.  In  addition  to  the  rates  provided 
jor  by  the  schedule,  some  articles  are  subject  to  specific  or  ad  valorem 
surtaxes,  which  presumably  are  intended  to  make  the  schedule  more 
elastic  and  are  applied  in  many  instances  to  cover  variations  in 
quality  or  admixtures  of  component  materials  of  a  higher  grade. 
These  surtaxes  should  be  distinguished  from  the  general  surtaxes 
amounting  to  56.55  per  cent  of  the  duty,  later  described,  which  apply 
to  all  imports  into  Venezuela. 

DUTIABLE  WEIGHT. 

Imports  into  Venezuela  are  dutiable  on  gross  weight,  i.  e.,  in- 
clusive of  the  weight  of  the  containers.  In  case  the  containers  con- 
sist of  articles  specified  in  the  tariff  under  a  higher  tariff  classifica- 
tion than  the  contents,  such  as  trunks,  valises,  traveling  ba^,  etc., 
they  are  assessed  for  duty  under  their  own  classification.  In  the  case 
of  goods  dutiable  under  the  first  class  of  the  tariff  only  containers 
and  packing  consisting  of  bag^ng,  oilcloth,  iron,  zinc,  or  lead,  or 
barrels  or  cases  of  wood,  iron,  zinc,  or  lead,  are  admitted  at  the  rate 
applied  to  the  contents,  while  other  containers  are  assessed  for  duty 
under  their  own  tariff  classifications.^ 

SURTAXES. 

All  dutiable  imports  into  Venezuela  are  subject  to  the  following 
surtaxes : 

Two  surtaxes  of  12^  per  cent  of  the  duty  each,  authorized  by  the 
decree  of  April  25,  1901,  and  known,  respectively,  as  the  national 
tax  (Impuesto  Nacional)  and  the  territorial  tax  (impuesto  Teri-i- 
torial). 

^  If  goods,  ordinarily  imported  from  European  countries  in  containers  of  wood,  iron, 
Kinc,  or  lead,  are  imported  from  the  West  Indies  without  any  containers,  or  in  bales  or 
cartons,  they  are  subject  to  a  surtax  of  20  per  cent  of  the  duty.  When  goods  ordinarily 
Imported  from  European  countries  packed  in  hemp  cloth  and  oilcloth  and  reenforced  with 
ties  or  hoops  are  imported  from  the  West  Indies  packed  merely  In  hemp  cloth,  the^  are 
subject  to  a  surtax  of  10  per  cent  of  the  duty. 


TABIFF  SYSTBM  AND  RBGUIATIONS  ON  IMPORT  TRADE.        891 

A  surtax  of  30  per  cent  of  the  duty,  established  by  the  decree  of 
February  16, 1903,  for  the  purpose  of  paying  off  the  foreign  indebt- 
edness and  continued  by  the  resolution  of  June  4, 1912,  to  be  used  for 
internal  improvements. 

A  surtax  of  1  per  cent,  based  on  the  duty  increased  by  the  other 
surtaxes,  imposed  bv  the  decree  of  December  29,  1910,  and  known 
as  a  sanitation  tax  (Impuesto  de  Sanidad) . 

In  addition  to  the  above  there  are  a  number  of  surtaxes,  specific 
or  ad  valorem,  prescribed  by  the  tariff  for  specified  articles. 

DUTIABLB  VALUE. 

While  most  rates  of  duty  into  Venezuela  are  specific  in  amount, 
the  surtaxes  prescribed  for  specified  articles  are  often  ad  valorem  in 
form — that  is,  so  much  per  kilo,  plus  such  a  per  cent  of  value.  In 
the  computation  of  these  ad  valorem  duties  it  is  provided  by  an 
executive  decree  of  November  19, 1920,  that  the  consignees  shall  con- 
vert the  values  given  in  the  consular  invoices  into  bolivars  at  the 
rate  current  on  the  date  of  arrival  of  the  shipment,  instead  of  on 
the  fixed  gold  basis  (of  19.3  cents  per  bolivar)  as  was  formerly  the 
practice.  Because  of  the  premium  on  the  dollar,  this  change  has 
affected  unfavorably  such  imports  from  the  United  States  as  are 
subject  to  ad  valorem  rates,  as  compared  with  those  froni  European 
countries. 

EXAMPLES  OP  CALCULATION  OF  DUTIES. 

The  following  illustration  will  show  the  methods  of  calculating 
duty  on  imports  into  Vemezuela : 


Articles  and  duty. 


Bolivars  per  100  kilos. 


From  all  coun- 
tries except  West 
Indies. 


CARDBOARD. 


3>uty  (0.10  bolivar  per  kilo) 

Surtax  of  55  per  cent  of  duty  (30  per  cent  plus  12}  per  cent  plus  12} 
percent) 

Special  surtax  of  30  per  cent  on  imports  ftom  West  Indies 

.  Sanitation  tax  of  1  per  cent  of  duty  increased  by  other  surtaxes 


Total. 


PRINTING  PAPER. 


Duty  (0.10  bolivar  per  kilo  plus  25  per  cent  of  duty) 

Surtax  of  65  per  cent 

Special  surtax  of  30  per  cent  on  imports  from  West  Indies 

Sanitation  tax  of  1  per  cent  of  duty  increased  by  other  surtaxes. 


Total. 


WALL  PAPER. 


Duty  (0.76  boUvar  per  kilo  plus  10  per  cent  ad  valorem) 

Surtax  of  66  per  cent  of  duty 

Spedal  surtax  of  30  per  cent  on  imports  from  West  Indies 

Sanitation  tax  of  1  per  cent  of  duty  i&creased  by  other  surtaxes. 

Total 


10.00 
5.50 


.165 


16.665 


12.50 
6.876 


196 


19.571 


Adwul. 
76.00+10% 
41.25+  5.6% 


1. 16+.  155% 


117.41+15.655% 


From  West 
Indies. 


10.00 

5.50 
3.00 
.185 


18.685 


12.50 
6.875 
3.76 
.231 


23.356 


Ad  vol. 
76.00+10% 
41.25+  6.6% 
22.60+  '" 
1.39+.li 


140.14+18.685% 


392    VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

It  should  be  noted  that  the  above  amounts  do  not  include  certain 
expenses  incidental  to  the  delivery  of  imported  goods  after  arrival  at 
Venezuelan  ports,  such  as  port  charges,  wharfage  dues,  and  ware- 
house charges. 

SPECIAL  REGULATIONS  ON  CERTAIN  IMPORTS. 

In  the  case  of  certain  articles,  such  as  explosives,  certain  prepared 
foods,  and  pharmaceutical  preparations,  there  are  special  restrictions 
in  regard  to  importation,  inspection,  or  sale  which  must  be  complied 
with. 

EXPLOSIVES  AND  FIREARMS. 

According  to  the  decree  of  June  4,  1914,  the  importation  of  explo- 
sives, with  the  exception  of  ordinary  gunpowder,  is  subject  to  a  permit 
which  may  be  granted  as  a  result  of  an  application  through  the 
Ministry  of  the  Interior.  Explosives  must  be  stored  in  warehouses 
designated  by  the  Ministry  of  War  and  Marine,  and  their  use  by  the 
importer  is  under  the  control  of  the  authorities  by  whom  the  impor- 
tation has  been  authorized.  The  importation  and  sale  of  dynamite 
has  been  restricted  by  the  decree  of  June  27,  1913,  to  the  National 
Government  operating  through  the  Department  of  Public  Works. 

Firearms  may  be  shipped  only  by  special  permit  from  the  Govern- 
ment of  Venezuela. 

PURE-FOOD  REGULATIONS. 

The  pure-food  regulations  of  Venezuela  prohibit  the  manufacture 
and  sale  of  food  products  injurious  to  health  and  require  that  adul- 
terated and  imitation  products  be  plainly  labeled  as  such,  both  on 
the  immediate  container  and  outer  packing,  and  that  their  component 
substances  be  specified.  Such  labels  must  be  in  Spanish,  with  trans- 
lations into  such  other  languages  as  may  be  desired.  Besides  regu- 
lating the  marking  of  foodstuffs,  the  law  establishes  standards  of 
purity  for  a  number  of  alimentary  products,  including  farinaceous 
foodstuffs,  milk  and  milk  preparations,  and  dairy  products.  In 
addition,  detailed  requirements  are  prescribed  for  alcoholic  beverages, 
and  the  necessity  of  plainly  indicating  their  actual  ingredients  and 
place  of  origin  is  emphasized. 

It  may  be  of  interest  to  note  in  this  connection  that  the  rates  of 
duty  prescribed  by  the  tariff  for  oleomargarine  and  other  butter 
substitutes  are  considerably  higher  than  the  import  duty  on  butter. 

All  shipments  of  foodstuffs  should  bear  a  Government  stamp  of 
inspection  or  be  accompanied  by  a  sworn  statement  that  the  goods 
have  been  inspected  by  competent  authority. 

PHARMACEUTICAL  PRODUCTS. 

An  executive  decree,  issued  on  January  18, 1921,  by  the  Venezuelan 
Government,  provides  regulations  for  the  practice  of  pharmacy  in 
accordance  with  the  provisions  of  article  17  of  the  pharmacy  law 
of  June  14,  1920.  Articles  80  to  90  of  these  regulations  prescribe 
minute  details  of  the  requirements  for  the  analysis,  registration, 
and  labeling  of  pharmaceutical  specialties,  with  fines  for  failure  to 
conform  to  the  provisions  of  the  regulations.     The  preparations 


TARIFF  SYSTEM  AND  REGULATIONS  ON  IMPORT  TRADE,         393 

authorized  by  the  Central  Bureau  of  Public  Health  before  the  pro- 
mulgation  or  the  present  regulations  were  required  to  comply  with 
the  regulations  within  six  months  after  the  date  of  the  decree.  After 
three  months  from  the  promulgation  of  the  decree  importation  of 
preparations  not  previously  authorized  by  the  Director  of  National 
Sanitation  was  prohibited. 

Articles  92  to  104  regulate  the  importation  and  sale  of  all  vaccines 
and  serums.  All  such  products  are  rec[uired  to  conform  to  specified 
regulations  for  registration  and  labeling.  When  documentary  evi- 
dence that  the  product  has  been  manufactured  under  Government 
supervision  in  the  country  of  origin  is  not  furnished,  analysis  is 
required  at  the  expense  of  the  importer,  who  must  furnish  samples 
and  all  material  for  analysis.^ 

SANITARY  PREPARATIONS  AND  EQUIPMSNT. 

Article  2,  No.  1,  of  the  Venezuelan  customs  tariff,  1915,  provides 
for  the  importation,  free  of  duty,  of  a  number  of  sanitary  and  disin- 
fectant chemicals  and  preparations,  sanitary  appliances,  etc.,  the 
intent  of  the  law  being  to  stimulate  the  importation  of  such  articles, 
including  insect  and  vermin  exterminators,  etc.  In  a  number  oi 
cases  (Nos.  1  to  41,  inclusive,  of  the  tariff)  special  formulas  and  ar- 
ticles are  cited  as  being  placed  on  this  free  list. 

American  manufacturers  of  such  articles  and  substances  who  are 
interested  in  increasing  their  trade  with  Venezuela  should  endeavor 
to  have  their  goods  placed  on  this  free  list.  This  can  be  accomplished 
by  presenting  to  the  Ministry  of  Hacienda  a  solicitation  which  should 
contain  a  description  of  the  article  or  preparation,  its  effect  and  uses, 
etc.  This  application  is  referred  to  the  National  Sanitary  Depart- 
ment for  verification,  upon  which  the  Ministry  of  Hacienda  allows  the 
free  importation  of  the  goods  in  question.  Duplicate  samples  of  the 
preparations  must  be  sent  with  the  solicitation,  which  can  be  made 
by  the  resident  agent  of  the  company,  or  by  an  attorney  of  Caracas, 
acting  for  the  company.  The  cost  is  50  bolivars  ($9.65)  for  each  item. 
Various  items  can  be  included  by  one  firm  in  the  same  solicitation. 

INTERNAL  TAXES  ON  TOBACCO  AND  UQUORS. 

The  internal  tax  on  cigarettes  provided  for  by  the  law  of  June  12, 
1915,  is  5  bolivars  per  kilo. 

The  internal  revenue  law  of  June  12, 1915,  prescribes  the  following 
internal  taxes  for  imported  liquors : 

Brandy  and  rum,  1.25  bolivars  per  liter;  gin,  bitters,  anisette,  and 
the  like,  1.50  bolivars  per  liter;  and  cognac,  whisky,  etc.,  250  bolivars 
per  liter.  For  liquors  of  an  alcoholic  strength  exceeding  50°  the  tax 
IS  increased  proportionately.  The  tax  on  imported  beer  is  0.30  boli- 
var per  liter.  The  tax  on  imported  liquors  is  collected  at  the  same 
time  as  the  import  duties.  If  liquor  upon  which  the  internal  tax  has 
been  paid  is  exported  or  used  in  the  manufacture  of  denatured  alco- 
hol, a  refund  of  the  taxes  will  be  made  upon  compliance  with  the 
rules  prescribed. 


s  The  text  of  this  law  and  regulations  under  it  is  on  file  in  the  Bureau  of  Foreign  and 
Domestic  Commerce,  and  specific  information  can  be  obtained  upon  request. 


894    VENEZTJEIA:  a  COMMBBCIAL  and  nSTDUSTRIAIi  HANDBOOK. 
SHIPPING  INSTRUCTIONS  AND  CUSTOMS  REGULATIONS. 

CONSULAR-INVOICE  REGULATIONS  AND  FEES. 

Consular  invoices  in  the  Spanish  language  are  required,  and  in 
making  them  out  ^eat  care  should  be  exercised,  as  goods  must  be 
invoiced  precisely  m  the  language  of  the  tariff  law.  Fines  are  im- 
posed very  often  for  the  use  of  ditto  marks,  abbreviations,  interlinea- 
tions, leaving  lines  blank,  or  other  errors.  If  goods  are  declared  in 
a  class  lower  than  that  in  which  they  rightly  belong,  the  goods  are 
confiscated.  Consignees  should  prescribe  the  exact  wording  for  in- 
voice declarations,  and  the  shippers  should  never  vary  from  this  nor 
venture  to  substitute  any  goods.  Many  firms  have  lost  shipments 
because  on  arrival  they  were  found  to  be  of  different  weight  from 
the  sample  upon  which  the  classification  was  based. 

Shippers  of  merchandise  to  Venezuela  must  present  to  the  Venezue- 
lan consul  for  certification  four  copies  of  the  consular  invoice,  which 
should  contain  the  following  data :  The  names  of  the  shipper  and  the 
consignee,  the  port  of  shipment,  the  port  of  destination,  the  kind  of 
vessel,  its  name,  nationality,  and  the  name  of  its  captain ;  the  mark, 
number,  kind,  and  destination  of  each  package,  its  contents,  exact 
gross  weight  in  kilos,  and  its  value.  The  contents  must  be  declared 
bv  designating  the  name  of  each  kind  of  merchandise,  without 
abbreviations  or  the  use  of  ditto  marks,  mentioning  the  component 
material  and  the  quality  or  circumstance  which  distmguishes  it  from 
other  merchandise  of  the  same  name  s'pecified  in  the  tariff  under 
a  different  classification.  In  the  case  of  shipments  from  foreign 
colonies,  the  tariff  class  must  also  be  indicated  in  the  invoice. 

If  the  shippers  are  not  acquainted  with  the  Spanish  language,  the 
consular  officer  must  translate  the  invoice,  making  three  extra  copies 
of  the  translation.  When  the  original  invoice  does  not  exceed  30 
hand- written  lines,  the  charge  will  oe  $3  gold  for  the  four  copies  of 
the  translation ;  a  charge  of  3  cents  will  be  made  for  each  additional 
line. 

The  regular  fee  for  the  certification  of  a  consular  invoice  is  fixed 
at  1  per  cent  of  the  invoice  value  of  the  shipment,  with  a  minimum 
charge  of  5  bolivars  ($0,965). 

A  copy  of  the  consular  invoice  of  Venezuela  is  given  below : 


FACTUBA   CONSULAR  DE  VENEZUELA. 

Consular  Invoice  of  Venezuela. 

Factura  de  mercaderias  embarcadas  en  este  puerto  por— 
Invoice       of      goods        shipped    from    this     port       by 

vapor ,  de  nadonalidad ,  su  capit4n 

steamer  nationality  captain 

y  a  la  conBigiiaci<5n  de . 

asd        consigned        to 


-,  a  bordo  del 

onboard  the 


■j  con  destino  a 
destined  for 


Bultoe. 
Packages. 


Harcas. 
Marks. 


Numera- 

ckSn. 
Numbers. 


Cantidad 
endfras. 
Quantity 
In  figures. 


Cantidad 

en  letras. 

Quantity 

in  writing. 


Clase  de 

bultos. 

Kind  of 

packages. 


Contendio. 
Contents. 


Peso  brute. 
Oross  weight. 


Kilo- 

gramos 

en  dfras. 

KUosin 

figures. 


KUo- 

gramos 

en  letras. 

KUosin 

writing. 


Valor. 
Value. 


TABIFF  BYBTBM  AND  BEGUIATIONS  OK  IMPOBT  TBADB.        395 

The  following  declaration,  at  the  bottom  of  the  invoice,  must  be 
signed  by  shippers : 

Bajo  juramento,  declaramos  que  los  valores  anotados  en  estafactura  son  verdaderos. 
Under  oath  we  declare  that  the  values  given  in  this  invoioe  are  correct. 

It  is  advisable  to  present  consular  invoices  for  certification  not 
later  than  the  day  previous  to  the  sailing  of  the  vessels.  As  a  result 
of  a  report  by  the  consuls  that  shippers  often  present  their  invoices 
for  certification  at  the  last  moment,  leaving  the  consul  insufficient 
time  for  their  examination  and  for  insertion  of  the  required  data,  a 
ruling  has  been  made  that  when  invoices  are  presented  at  the  consu- 
late shortly  before  the  departure  of  the  vessel,  the  consul  must  notify 
the  shippers  of  the  penalties  to  which  the  consignees  will  be  subjected 
for  incomplete  data.  If  the  shippers  insist  on  forwarding  the  in- 
voices on  their  own  responsibility,  the  consul  will  write  at  the  bottom 
of  the  invoice :  "Advertencia.  No  revisada  por  haber  sido  presentada 
2  horas  antes  de  la  salida  del  buque."  (Warning.  Not  verified, 
because  presented  two  hours  before  sailing  of  vessel.) 

When,  after  a  consular  invoice  has  been  certified,  a  change  is  to  be 
made  on  account  of  short  shipment  or  other  circumstances,  the  consul 
will  write  a  note  at  the  bottom  of  the  invoice  (not  in  the  body), 
stating  the  circumstances,  and  will  sign  the  note. 

WARNINGS  FOR  PRBPARAIION  OF  SHIPMENTS  AND  BOGUMBNTS. 

Articles  belonging  to  two  or  more  tariff  classes  should  not  be  packed 
in  the  same  case,  for  when  so  packed  the  entire  contents,  of  the  case 
will  be  dutiable  at  the  rate  applicable  to  the  article  under  the  highest 
classification. 

Packages  may  be  marked  with  either  stencil  or  brush.  Weights 
need  not  be  shown  on  packages. 

Packages  having  the  same  contents,  size,  weight,  and  form,  such 
as  bags,  cases,  barrels,  kits,  etc.,  of  cereals,  soap,  chinaware,  macaroni, 
candles,  and  similar  merchandise,  marked  with  the  same  numbers 
of  marks,  may  be  included  in  one  item. 

Packages  with  different  marks  may  be  included  in  one  invoice,  but 
merchandise  for  different  ports  must  not  be  included  in  the  same 
invoice. 

Great  care  should  be  exercised  in  making  out  invoices,  as  the 
customs  authorities  in  Venezuela  impose  fines  for  slight  irregu- 
larities.   The  following  should  be  kept  in  mind : 

Every  article  must  be  properly  and  explicitly  described  in  the 
invoice  in  the  language  of  the  tariff  law.  If  an  article  is  known 
by  various  names  in  different  countries,  the  exporter  should  satisfy 
himself  as  to  its  Venezuelan  designation. 

If  an  article  is  called  by  a  name  applied  to  goods  of  a  class  lower 
than  the  Venezuelan  classification,  the  article  is  liable  to  confisca- 
tion as  contraband. 

If  an  article  is  misnamed,  and  because  of  this  misnaming  is  placed 
in  a  class  higher  than  its  proper  classification,  the  importer  must  pay 
the  duty  of  the  higher  class. 

If  the  name  given  in  the  invoice  is  not  specific,  the  importer  must 
pay  a  fine  equal  to  double  the  duty  on  the  article.    Thus,  "wine"  is 


396    VEKEZUEIA:  A  COMMERCIAL  AND  INDUSTBIAL  HANDBOOK. 

not  considered  a  sufficiently  specific  designation  of  "white  wine  in 
bottles  of  1  quart  each." 

The  main  trouble  appears  to  lie  in  the  low  salaries  paid  to  customs 
employees  and  the  terms  of  the  regulations,  which  allow  the  em- 
ployees 60  per  cent  of  the  fines  collected  or  of  the  proceeds  of  the 
goods  confiscated  by  the  Government. 

This  is  one  of  the  main  reasons  why  Venezuelan  importers  prefer 
terms  to  cash  payment,  as,  upon  any  discrepancy  resulting  in  con- 
fiscation or  fine,  they  usually  abanaon  the  goods  promptly  to  the 
shipper  or  his  agents,  alleging  that  instructions  regarding  con- 
sular declarations  were  not  followed  or  that  the  goods  were  not  in 
accordance  with  samples  upon  which  the  order  was  based.  The  only 
safe  way  for  American  firms  to  proceed  is  to  require  always  that  the 
customer  specify  on  the  order  the  manner  and  exact  language  of 
consular  declaration,  and  to  have  the  goods  always  agree  minutely 
with  samples. 

In  the  above  connection  it  is  also  of  interest  to  note  that  import 
duties  must  be  paid  on  goods  appearing  on  the  consular  invoices 
whether  the  goods  are  short-shipped  or  not.  Duty  is  paid  on  goods 
lost  in  transit  by  the  steamship  companies,  and  this  is  a  very  pro- 
lific cause  of  complaint  on  the  part  of  importers,  as  the  steamship 
company  (Bed  "D"  Line)  which  handles  the  bulk  of  the  Venezuelan 
shipments  from  the  United  States  is  protected  by  the  "  $100  limit  per 
package"  clause  of  its  bill-of -lading  contract.  In  insuring  ship- 
ments for  Venezuela  this  fact  must  be  taken  into  account  and  the 
consignee  protected  for  the  full  "landed"  value  of  the  goods,  which 
includes  duty  paid. 

BILLS  OF  LAniNG— INSECURITY  OF  "TO  ORDER"  SHIPMENTS. 

Bills  of  lading  do  not  require  certification ;  consuls,  however,  are  to 
certify  as  many  as  five  copies  without  charge  when  so  requested  by 
shippers ;  should  more  than  five  copies  be  desired,  a  charge  may  be 
made  for  each  additional  copy, 

"  To  order "  shipments,  with  drafts  attached  to  documents,  afford 
no  security  of  payment  in  Venezuela,  inasmuch  as  bills  of  lading  have 
no  legal  standing,  and  the  customs  authorities  will  deliver  goods  to 
the  consignee  whose  name  appears  on  the  consular  invoice,  upon  the 
payment  of  the  duties,  without  demanding  any  further  proof  of 
ownership.  American  consular  officials  in  Venezuela  have  repeatedly 
warned  exporters  against  unscrupulous  persons  who  make  a  practice 
of  taking  advantage  of  this  feature  of  the  customs  procedure  to  de- 
fraud foreign  firms  of  thousands  of  dollars  annually. 

To  discourage  this  practice  the  Venezuelan  regulations  impose  a 
penalty  upon  the  captain  of  a  vessel  carrying  "  to  order  "  shipments, 
and  goods  so  consigned  are,  moreover,  subject  to  a  surtax  of  26  per 
cent  of  the  duty. 

As  a  means  of  obviating  the  difficulties  of  "  to  order  "  shipments, 
facilities  are  available  for  consignment  through  a  responsible  local 
house,  to  turn  over  the  merchandise  to  the  consignee  upon  the  pay- 
ment or  acceptance  of  the  draft. 


TARIFF  SYSTEM  AKD  REGULATIONS  ON  IMPORT  TRADE.         397 

SHIPMSNTS  BT  PARCEL  POST. 

The  postage  rate  on  packages  sent  by  parcel  post  is  12  cents  per 
pound,  or  fraction  thereof.  Every  parcel  must  be  packed  securely 
and  substantially,  but  in  such  a  way  that  it  can  be  opened  without 
damaging  the  contents  or  the  covering,  in  order  that  its  contents 
may  be  readily  examined  by  postmasters  and  customs  officers.  Ex- 
cept for  packages  to  Colombia,  the  greatest  length  permissible  is  3^ 
feet  and  the  greatest  length  and  girth  combined  6  feet.  A  parcel 
not  more  than  3^  feet  in  length  may  measure  as  much  as  2  feet  6 
inches  in  girth,  or  around  its  thickest  part.  A  shorter  parcel  may  be 
thicker.  The  most  convenient  mode  of  measuring  is  by  a  tape  line 
6  feet  lonff.  So  much  of  the  tape  as  is  not  used  in  measuring  the 
length  is  the  measure  of  the  maximum  girth  possible.  The  maximum 
weight  allowed  is  6  kilos  (1  kilo=2.2046  pounds). 

Fundamentally,  the  parcel  post  service  and  importation  by  this 
method  is  under  the  direct  control  of  the  Executive.  The  Executive 
decree  of  September  26,  1918,  which  contains  the  most  recent  legisla- 
tion governing  parcel-post  imports,  may  be  summarized  as  follows: 

AU  merchandise  not  excluded  by  the  customs  tariff  may  be  imported  through 
the  parcel  post  service. 

A  parcel-post  package  must  not  exceed  a  gross  weight  of  5  kilos,  and  Its  vol- 
ume will  be  fixed  according  to  the  article. 

The  package  must  be  conveniently  packed  and  wrapped  with  solid  cloth  and 
must  not  contain  any  correspondence.  Should  any  correspondence  be  found  in 
the  parcel,  double  postage  rates  will  be  charged  the  receiver. 

Packages  containing  gold,  silver,  or  other  valuable  article  should  bear  a  label 
indicating  its  contents,  with  the  words  "  Objetos  preciosos,"  which  should  be 
written  with  letters  about  1  centimeter  in  height. 

Each  package  must  be  accompanied  by  a  declaration,  in  quadruplicate,  stating 
the  kind  of  merchandise  contained,  its  class  (according  to  the  customs  tariff), 
its  net  weight,  its  value,  and  the  other  data  required  by  the  international  con- 
ventions.   The  declaration  may  be  made  in  any  language. 

In  case  a  package  should  not  be  accompanied  by  the  declaration  mentioned, 
the  receiver  may  obtain  the  parcel  provided  he  opens  it  in  the  presence  of  the 
customs  authorities  and  pays  a  double  tax.  The  receiver  will  also  be  required 
to  ask  the  sender  to  forward  promptly  the  declaration,  and,  upon  its  receipt, 
he  w^ill  deliver  it  to  the  customs  authorities.  If  within  80  days  from  the  date 
of  receipt  of  the  parcel  the  declaration  is  not  received,  the  receiver  of  the 
package  will  be  bound  to  deliver  to  the  customs  authorities  a  copy  of  his  letter 
requesting  the  declaration  and  pay  a  penalty  of  25  to  500  bolivars. 

For  customs  purposes  the  wrapping  of  parcel-post  packages  will  be  placed  in 
Class  III  (import  duty  on  gross  weight,  0.25  bolivar  (4.7  cents)  per  kilo)  when 
the  contents  belong  to  the  same  or  to  a  higher  class.  In  case  the  articles  con- 
tained are  free  of  duty  or  belong  to  Class  I  or  II,  the  wrapping  will  be  classified 
according  to  the  merchandise  contained.  In  case  the  package  contains  articles 
belonging  to  different  classes  (mixed  shipment),  each  article  will  be  weighed 
separately  and  will  pay  according  to  its  class,  but  a  minimum  of  100  grams 
will  be  fixed  for  each  article — that  is,  a  parcel  weighing  less  than  1(X)  grams  wiU 
have  to  pay  as  if  weighing  100  grams.  It  is  understood  that  the  wi:apping 
means  merely  the  cloth  and  straw  or  paper  used  outside  of  the  articles. 
Bottles,  boxes,  etc.,  will  be  Included  in  the  weight  of  each  article. 

Goods  imported  by  parcel  post  will  be  subject  to  the  same  Import  duties  as 
goods  imported  in  the  ordinary  manner  by  freight 

An  extra  charge  of  0.25  boUvar  (4.7  cents)  will  be  levied  on  each  parcel-post 
package,  but  on  parcels  imported  from  the  United  States  of  America  the  charge 
will  be  raised  to  1.50  bolivars  (20  cents). 

Parcels  not  accepted  by  the  receiver  wUl  be  duly  returned  to  the  sender. 

When  parcels  are  found  to  contain  articles  belonging  to  a  higher  class  of  the 
tariff  than  the  one  declared,  or  articles  of  which  the  importation  is  prohibited, 
the  importer  will  be  filled  according  to  the  customs  regulations. 


898    VENEZUELA:  A  COMMBECIAL  AIH)  rNTDXTSTRIAL  HANDBOOK. 

When  the  declaration  does  not  specify  the  goods  according  to  the  customs 
tariff,  the  Importer  will  be  subject  to  a  penalty  of  15  per  cent  of  the  import  duty. 

In  case  a  parcel  Is  found  to  have  a  weight  3  per  cent  In  excess  of  the  weight 
given  in  the  declaration,  the  importer  will  be  fined  15  per  cent  of  the  duty. 

For  fuller  discussion  of  the  advantages  and  difficulties  of  shipments 
to  Venezuela  by  parcel  post,  see  section  on  "Parcel-post  trade,'' 
page  370. 

CUSTCHIS  ENTRY  OF  IMPORTS. 

The  importer  must  present,  within  four  clear  days  from  the  date 
of  the  official  inspection  of  the  vessel,  the  certified  invoice  accom- 
panied by  two  copies  of  the  entry,  showing  the  total  number  and 
value  of  packages,  in  addition  to  the  data  contained  in  the  invoice. 

In  case  the  importer  refuses  to  accept  the  consignment,  he  must 
notify  the  customs  authorities  to  that  effect  within  the  time  limit 
allowed  for  the  presentation  of  the  entry.  If  no  person  authorized 
by  the  shipper  or  otherwise  responsible  takes  charce  of  the  entry  of 
t&e  shipment  within  15  davs  from  the  date  of  the  notice  by  the  im- 
porter,  the  shipment  is  to  6e  considered  as  abandoned  and  to  be  dis- 
posed of  at  public  sale.  Any  amount  realized  from  the  sale  in  ex- 
cess of  the  duty  and  other  cnarges  is  deposited  for  a  period  of  six 
months  with  the  customs  authorities  and  is  to  be  turned  over,  upon 
claim  and  proper  identification,  to  the  consignee.  If  the  consignee 
fails  to  present  a  claim  within  the  period  of  six  months,  the  money 
is  turned  over  to  the  National  Treasury. 

If  the  certified  invoice  has  been  received  either  by  the  importer  or 
the  customs  authorities,  and  the  consignee  fails  to  make  an  entry 
within  the  prescribed  period  of  four  days,  he  is  subject  to  a  fine  of 
100  bolivars  ($19.30)  for  the  first  day  and  of  10  bolivars  for  each 
succeeding  day.  At  the  end  of  60  days  the  shipment  will  be  con- 
sidered as  abandoned  and  disposed  of  accordingly. 

In  case  the  importer  fails  to  receive  his  copy  of  the  certified  in- 
voice he  may  obtain^  upon  written  request,  the  copy  forwarded  to 
the  customs  authorities,  so  as  to  enable  him  to  make  out  his  entry. 
In  such  cases  the  importer  must  give  a  written  guaranty  to  present 
the  invoice  within  the  "  transmarine  period ''  (i.  e.,  40  days  for  ship- 
ments from  Europe,  20  days  from  the  United  States,  and  10  days 
from  the  West  Indies).  Failure  .to  present  the  invoice  within  the 
assigned  time  limit  shall  subject  the  importer  to  a  fine  of  5  per  cent 
of  the  duty. 

If  neither  the  customs  authorities  nor  the  importer  have  received 
a  copy  of  the  invoice,  the  goods  shall  be  deposited  at  the  custom- 
house for  a  period  of  40  days,  counting  from  the  expiration  of  the 
time  limit  for  the  presentation  of  the  entry,  and  if  the  invoices  are 
not  received  within  that  period,  and  it  is  shown  by  the  manifest  that 
the  shipper  had  turned  them  over  to  the  consul,  the  MinistiY  of 
Finance  shall,  upon  the  request  of  the  importer  and  a  report  ox  the 
proper  customs  officials,  authorize  the  clearance  of  the  shipment  and 
prescribe  the  measures  to  be  taken  so  as  to  safeguard  the  interests 
of  the  Treasury.  A  surtax  of  10  per  cent  of  the  duty  is  to  be  levied 
on  such  shipments.  If  no  application  is  made  for  the  dearance  of 
the  shipment  under  the  conditions  described  above  within  20  days 
after  the  expiration  of  the  40-day  time  limit,  the  shipment  shall  be 
considered  as  abandoned. 


TABEPF  SYSTEM  AKD  KBGULATIONS  OK  IMPORT  TBADB.        399 

In  the  case  of  shipments  cleared  without  the  presentation  of  in- 
voices^ at  least  half  of  the  packages  constituting  the  shipment  shall 
be  weighed,  opened^  and  examined,  and  double  fines  shall  be  imposed 
for  any  discrepancies  that  may  be  discovered,  provided  it  is  shown 
by  Ihe  manifest  that  the  shipper  had  failed  to  submit  the  invoices 
for  certification. 

In  case  of  disagreement  between  the  importer  and  the  customs 
authorities  as  to  we  customs  classification  of  the  merchandise,  the 
case  is  to  be  referred  to  two  experts,  one  named  by  the  importer  and 
the  other  by  the  official  in  charge  of  the  customhouse.  If  the  cus- 
toms authorities  refuse  to  abide  by  the  decision  of  the  experts,  they 
may  submit  the  case  to  the  Ministry  of  Finance,  whose  decision  shall 
be  final. 

If  the  importer  is  dissatisfied  with  the  liquidation  of  the  shipment, 
he  may  appeal  to  the  Ministry  of  Finance  within  three  days  from  the 
tim^  he  is  notified  of  the  results  of  the  liquidation. 

CUSTOMS  PENALTIES  FOR  UEBBGULABITIES. 

Fines  imposed  upon  importers  for  failure  to  comply  with  the  vari- 
ous provisions  of  the  customs  regulations  are  as  follows : 

For  failure  to  make  entry  within  four  days  from  the  time  of  the 
inspection  of  the  vessel  and  upon  receipt  of  invoices  by  the  importer 
or  the  customs  authorities,  100  bolivars  ($19.30)  for  the  first  day 
and  10  bolivars  ($1.93)  for  each  succeeding  day.  If  the  goods  are 
not  claimed  within  a  period  of  60  days,  the  shipment  is  considered 
as  abandoned  and  disposed  of  at  public  sale. 

In  case  of  a  discrepancy  between  the  various  copies  of  the  invoices, 
whether  in  regard  to  number  of  packages,  weight,  description,  or,  in 
case  of  exports  from  the  West  Indies,  m  regard  to  tariff  class,  a  fine 
of  25  bolivars  ($4,825)  is  to  be  imposed  for  each  item  showing  such 
discrepancy. 

Failure  to  specify  in  the  invoice  the  names  of  the  shipper  and  con- 
signee, ports  of  shipment  and  destination,  the  kind  of  vessel,  its 
nationality  and  name,  and  the  name  of  the  captain,  is  penalized  by  a 
fine  of  50  bolivars  (^9.65^.  If  the  invoices  fail  to  show  the  mark, 
destination,  number  and  kind,  contents,  gross  weight  in  kilos,  and 
value  of  each  package,  a  fine  of  from  125  to  1,000  bolivars  ($24,125 
to  $198)  is  to  be  imposed.  No  fine,  however,  is  levied  in  the  case 
of  goods  invoiced  under  the  free  list  for  failure  to  specify  in  the 
invoice  the  quality  or  circumstance  that  distinguishes  them  from 
other  merchandise  of  the  same  name  specified  in  a  different  tariff 
class. 

in  case  of  undervaluation,  supported  by  legal  proof  furnished  by 
the  consul,  there  is  to  be  levied  a  surtax  equal  to  the  percentage  of 
difference  between  the  declared  value  and  the  actual  value  as  proved 
by  the  consul. 

If  upon  examination  the  shipment  is  found  to  weigh  more  than  is 
indicated  in  the  invoice,  duty  shall  be  levied  on  the  weight  ascer- 
tained by  examination,  and  ii  the  difference  exceeds  5  per  cent,  there 
shall  be  imposed  a  fine  equal  to  the  duty  caused  by  the  difference  in 
weight. 

It  the  weight  ascertained  by  examination  is  less  that  the  declared 
weight,  duty  shall  be  calculated  on  the  basis  of  the  latter,  but  a  dis- 


400    VBNEZtFBLA:  A  OOMMEBCIAIi  AND  INDUSTMAIi  HANDBOOK. 

count  for  leakage  may  be  allowed  on  certain  articles  upon  application 
to  the  Ministry  of  Finance. 

If  upon  examination  it  is  found  that  some  packages  contain  goods 
of  a  higher  tariff  classification  than  that  declared  in  the  entry,  the 
duty  shall  be  levied  on  the  basis  of  the  highest  class  as  ascertained  by 
examination,  and  tjie  goods  incorrectly  declared  shall  be  considered 
as  contraband.  . 

If  the  examination  shows  that  some  packages  contain  goods  sub- 
ject to  a  lower  classification  than  that  declared  in  the  entry,  duty 
shall  be  collected  according  to  the  classification  given  in  the  entry. 

In  case  the  difference  in  weight  or  in  designation  resulting  in  a 
higher  tariff  classification  affects  more  than  two  packages  of  those 
included  in  one  invoice,  there  shall  be  imposed,  in  addition  to  the 
fines  on  each  package,  a  surtax  of  25  per  cent  of  the  total  amount 
of  such  fines. 

APPEALS  POSSIBLE  AGAINST  CERTAIN  CUSTOMS  PENALTIES. 

The  fines  and  surcharges  established  by  Venezuelan  law  are  to  be 
levied  and  enforced  by  the  chief  of  customs,  but  interested  parties 
are  allowed  the  right  of  appeal  before  the  Minister  of  the  Treasury. 
Inasmuch  as  the  provision  of  the  law  respecting  goods  declared  to  be 
contraband  are  subject  to  judgment  by  the  tribunals,  which  may  or 
may  not  sustain  the  judgment  of  the  customs  authorities,  the  latter 
must  therefore  look  to  the  tribunals  for  such  judgment  to  become 
binding. 

The  judgment  of  the  Minister  of  the  Treasury  will  be  sought  by 
the  customs  authorities  only  in  the  following  cases : 

When  such  judgment  is  specified  by  law. 

When  the  questions  involved  are  not  provided  for  by  law  or 
by  subsequent  resolutions. 

(3^  Wnen  the  merchandise  involved  is  not  specified  in  any  tariff 
classification  or  in  any  subsequent  resolutions  of  the  ministry. 


u 


NEED  FOB  GBBATEB  CARE  BT  AMEBICAN  EXPORTERS. 

When  considering  the  problem  of  the  difficulties  of  exporting  to 
Venezuela,  the  shipper  must  bear  in  mind  that  his  customer  is  not  to 
blame  in  any  way  for  the  more  or  less  stringent  regulations  in  force 
in  his  country ;  tnat  it  is  greatly  to  his  interest  to  import  goods  at  as 
low  a  rate  of  duty  as  possible ;  and  that  careful  attention  to  detail  and 
to  instructions  on  the  part  of  the  exporter  will  go  a  very  long  way 
toward  securing  a  permanent  customer  for  his  house,  since  most 
Venezuelan  importers  would  rather  pay  a  slightly  higher  price  to  an 
old  and  tried  house  ttan  risk  the  possible  consequences  in  the  shape 
of  heavy  fines  and  long  disputes  with  a  new  house  selling  at  a  lower 
price. 

It  should  also  be  borne  in  mind  that  the  above  observation  applies 
in  greater  or  less  degree  to  all  of  the  Latin  American  countries.  The 
British  and  German  houses  which  have  exported  for  many  years  to 
Latin  America  fully  understood  these  fine  points  of  the  trade,  having 
made  an  exact  study  in  minute  detail  of  all  the  special  requirements 
of  each  country.  Inuring  the  scramble  for  trade  following  the  war, 
the  traveler  in  Latin  America  heard  on  every  side  numerous  com- 


TARIFF  SYSTEM  AND  REGULATIONS  ON  IMPORT  TRADE.        401 

plaints  founded  on  the  general  lack  of  care  and  attention  on  the  part 
of  the  American  exporter,  and  unfavorable  comparisons  were  made, 
the  importers  being  long  used  to  the.  exact  system  of  their  old  Euro- 
pean firms. 

Textiles,  principally  cotton  manufactures,  bein^  the  largest  item 
of  importation  into  Venezuela,  and  the  customs-tarifF  classification  of 
textiles  being  based  on  the  weight  per  square  meter  of  the  goods  and 
the  number  of  threads  contained  fn  a  sauare  of  5  miUim^rs,  im- 
porters  are  constantly  troubled  by  mistaken  classification  of  goods, 
because  shipments  do  not  agree  exactly  with  the  samples  on  which 
the  order  was  based  and  the  classification  directed  by  the  purchaser. 
As  a  rule,  the  first  intimation  of  such  discrepancy  is  the  receipt  of 
notification  of  a  heavy  fine  imposed  by  the  customs  authorities.  Im- 
porters usually  pay  these  fines  and  look  to  the  exporter  for  reimburse- 
ment. American  exporters  can  not  be  too  careful  in  this  regard  when 
making  shipments  to  Venezuela.  The  same  rule  applies  also  to  ship- 
ments of  goods  of  mixed  materials,  such  as  silk  and  cotton  mixtures. 
The  content  of  raw  silk,  called  "  animal "  silk  in  the  Venezuelan  tariff, 
must  be  carefully  determined  and  exactly  stated  in  the  declaration. 

The  above  is  the  principal  reason  why  Venezuelan  importers  of 
textiles  refuse  to  pay  cash  before  or  upon  shipment,  and  also  why  ex- 
port commission  houses  hold  such  a  large  portion  of  the  trade  in 
this  line. 

The  same  remarks  apply  to  substitution  of  merchandise,  even  when 
an  article  or  material  of  greater  value  or  better  quality  than  that 
ordered  is  sent.  The  only  safe  procedure  in  case  substitution  or 
change  in  the  order  is  necessary  for  the  exporter  is  to  communicate 
first  with  the  customer  in  Venezuela  and  secure  his  permission  for 
such  change  and  his  instructions  regarding  the  new  declaration  of 
the  goods  in  the  consular  invoice. 

COMMERCIAL  TRAVELERS'  REGULATIONS. 

Commercial  travelers  coming  to  Venezuela  are  not  required  by  law 
to  bring  any  documents  other  than  a  passport  visaed  by  the  Vene- 
zuelan consul  at  the  port  of  departure,  which  is  required  of  all 
travelers. 

A  power  of  attorney  is  not  necessary.  It  may  be  advisable,  how- 
ever, as  tending  to  inspire  confidence  on  the  part  of  buyers,  but  is 
not  required  by  any  legal  authority. 

The  commercial  traveler  may  begin  soliciting  business  as  soon  as 
he  is  permitted  to  land.  No  officially  certified  papers,  official  licenses, 
warrants,  or  permits  to  do  business  are  required.  His  clientele  is 
not  limited. 

CUSTOMS  TREATMENT  OF  SAMPLES  AND   ADVERTISING  MATTER. 

Samples  of  no  commercial  value,  such  as  small  pieces  of  fabrics 
and  wall  paper  not  exceeding  50  centimeters  (19.7  inches)  in  length, 
are  admitted  free  of  duty  to  an  amount  of  25  kilos  (55  pounds). 
Samples  of  fabrics  in  excess  of  that  amount  are  dutiable  at  $3.43 
per  100  pounds  gross  weight. 

On  samples  admitted  free  of  duty  a  bond  is  required  guaranteeing 
their  reexportation  within  one  year.    If  duties  have  actually  been 

79747**— 22 27 


402    VENEZUELA:  A  COMMBBCIAIi  AND  INDUSTRIAL  HANDBOOK. 

paid  they  can  not  be  refunded.  Duties  are  collected  upon  any  por- 
tion of  samples  not  reexported  within  the  time  specified. 

Samples  may  be  reexported  through  any  port  of  the  Bepublic, 
but  the  traveler  must  present  the  bill  of  lading  of  the  coasting 
steamer  (^'poliza  de  caootaje")  on  which  the  samples  have  been 
sent  to  the  customhouse  where  exportation  is  to  be  made,  and  the 
items  must  agree  exactly  with  the  samples  presented  by  the  traveler 
and  with  the  list  of  samples  as  made  out  upon  their  entry.  The 
"  poliza  de  cabotaje  "  must  be  obtained  when  the  traveler  gives  the 
original  bond.    It  should  be  carefully  preserved. 

As  a  rule,  when  samples  are  brought  as  baggage  they  can  be 
cleared  within  a  few  hours.  Samples  having  no  commercial  value 
can  be  cleared  without  difEiculty,  but  a  customs  broker  will  be  able 
to  expedite  the  clearance  of  samples  having  a  definite  value. 

Catalogues,  as  such,  are  free  of  duty.  Printed  matter  used  for  ad- 
vertising purposes,  such  as  pamphlets,  calendars  mounted  on  litho- 
graphed boards,  etc.,  must  pay  a.  dutj  of  $1.37  per  100  pounds  gross 
weight.  Advertising  matter  with  lithographed  or  printed  designs 
bearing  no  advertisements  (printed  matter)  pays  a  duty  of  $17.13 
per  100  pounds  gross  weight. 

To  avoid  excess  baggage  charges  it  is  desirable  to  send  baggage 
from  La  Guaira  to  Caracas  by  Ireight,  which  costs  $0.68  per  100 
kilos  ($0.26  per  100  pounds).  If  carried  as  excess  baggage  it  costs 
$1.93  per  100  kilos  ($0,876  per  100  pounds). 


COMMERCIAL  PRACTICES  AND  REQUIREMENTS. 

SLIGHT  SPECIALIZATION  IN  MERCHANDISING— TENDENCY 

TOWARD  MODERN  METHODS. 

Except  in  the  drug  and  chemical  trade,  there  is  very  little  speciali- 
zation in  merchandising  in  Venezuela;  all  the  larger  stores  carry  a 
general,  miscellaneous  assortment  of  goods,  the  principal  line  being, 
of  course,  cotton  manufactures.  However,  in  Caracas,  there  are  now 
a  few  stores  specializing  in  men's  clothing  and  haberdashery,  a  few 
specializing  in  wall  paper,  paints,  oils,  and  glass,  and  one  or  two 
stores  tiiat  handle  and  stock  hardware  exclusively.  This  is  not  true 
of  the  other  larger  towns  of  the  country.  As  a  rule,  the  larger  firms 
do  both  a  retail  and  a  wholesale  business — selling  at  wholesale  in  the 
interior;  handling,  either  on  consignment  or  by  direct  purchase 
(usually  secured  through  crop  advances) ,  the  bulK  of  the  coffee  and 
cacao  orops;  and  also  buying  and  exporting  hides  and  skins  and  the 
other  products  of  the  country.  A  few  of  the  larger  firms  have 
recently  adopted  a  system  of  partial  segregation  of  departments, 
lines  such  as  nardware  being  handled  separately,  but  under  the  same 
firm  name  and  nearly  always  in  the  same  building. 

The  general  tendency  of  the  country  is  toward  more  modem  and 
up-to-date  methods.  Stores  advertise  liberally  in  the  local  papers; 
new,  large  show  windows  are  being  installed;  show  cases  are  beinc 
put  in  for  the  better  and  more  attractive  display  of  goods  offered 
for  sale;  and  better  interior  lighting  is  being  provided!  The  stores 
of  Caracas,  Valencia,  Puerto  Cabello,  and  Maracaibo  present  a  very 
attractive  appearance,  and  several  new,  modern  concrete  buildings 
are  being  erected  by  the  larger  firms.  Street  lighting  is  being 
adopted  also,  and  many  fine  electric  signs  are  seen  at  night  in 
Caracas. 

SERVICES  OF  EXPORT  COMMISSION  HOUSES. 

All  the  export  commission  houses  maintain  either  branch  offices  in 
the  principal  cities  of  Venezuela,  with  the  main  office  in  Caracas 
(which  is  the  commercial,  financial,  and  political  center  of  the  coun- 
try), or  large  agencies,  which  in  turn  maintain  branch  offices  in  the 
other  cities.  The  advantage  is  that  they  have  a  representative  on  the 
ground,  constantly  in  touch  with  customers  and  conditions  and  the 
needs  of  the  market ;  differences  and  disputes  are  settled  personally, 
and  the  customer  knows  that  he  has  care  and  attention  at  all  times. 
Prior  to  the  war  almost  the  entire  trade  of  the  country  was  carried 
on  through  commission  houses,  which  represented,  in  many  cases, 
large  manufacturers  for  exclusive  lines.  The  advantage  of  this  sys- 
tem to  the  manufacturer  consisted  of  the  fact  that  the  export  com- 
mission house  paid  him  cash  for  the  goods  shipped  on  his  orders,  dis- 
counting bills  at  the  bank  and  running  an  "  open  account "  in  most 
cases  with  the  Venezuelan  customer,  lor  whom  exports  were  also 

403 


404    VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

handled  on  consignment.  This  made  a  very  convenient  system  for 
the  buyer  in  Venezuela.  He  had  very  few  accounts  running,  and  his 
export  commission  house  took  care  of  all  his  needs,  securing  and 
shipping  him  long  lists  of  miscellaneous  merchandise  and  materials. 
Latterly,  a  nuinber  of  very  large  lobbing  houses  in  textiles^  drugs 
and  medicines,  hardware,  etc.,  have  placed  their  agents  in  the  country, 
and  the  English  textile  trade  has  long  taken  care  of  its  Venezuelan 
business  through  large  jobbing  houses,  which  sent  salesmen  periodi- 
cally to  the  country  and  neighboring  commercial  territory.  A  feature 
of  the  trade  developments  after  the  war  was  the  increasing  number 
of  new  American  export  firms  represented  in  the  country  oy  sales- 
men, and  also  the  increasing  effort  through  personal  representation  in 
the  country  of  large  jobbing  houses  and  manufacturers. 

NECESSITY  FOB  PERSONAL  REPRESENTATION. 

Nowhere  else  does  personal  representation  count  for  so  much  in 
trade  as  in  Latin  America.  Salesmen  and  representatives  of  Ameri- 
can firms  should  be  selected  with  the  greatest  possible  care  for  per- 
sonal character  and  manners^  knowledge  of  the  language  and  customs, 
and  experience  and  familiarity  with  tne  line  to  be  handled. 

.  Great  care  should  be  taken  in  the  selection  of  agents.  As  a  rule, 
natives  acting  as  agents  for  manufacturers  or  jobbers  take  on  too 
many  lines — first,  to  keep  them  away  from  others,  and,  second,  merely 
in  ordier  to  have  a  long  list  of  agencies  in  their  oifices.  Needless  to 
say,  individual  lines  and  those  paying  a  small  commission  do  not 
get  the  proper  attention  and  service.  A  good  agent  is  entirely  worthy 
of  his  hire  and  entitled  to  perhaps  a  wider  margin  of  commission 
than. elsewhere  (as  in  the  United  States,  Canada,  or  certain  European 
countries)  on  account  of  the  general  character  of  Venezuelan  busi- 
ness and  the  exigencies  of  the  trade.  A  competent  agent  renders  in- 
valuable service  in  the  settlement  of  disputes  and  differences — making 
new  customers,  holding  old  ones,  watching  the  market  and  economic 
conditions,  and  in  general  building  up  the  tr$,de  of  his  principals. 
An  agent  without  proper  qualifications  can  do  a  proportionate  amount 
of  harm,  and  in  less  time. 

Many  complaints  have  been  registered  regarding  the  general  treat- 
ment of  agents  by  American  firms  in  the  past.  In  Venezuela  a  letter 
of  appointment  is  looked  upon  as  equivalent  to  an  agency  contract, 
such  view  being  upheld  by  the  law,  and  an  agency  so  gi^en  can  not  be 
•canceled  by  mere  verbal  or  written  notice  unless  there  i6  an  express 
provision  to  that  effect  in  the  agreement.  The  general  conditions  and 
terttis  applied  to  agencies  by  merchants  of  Great  Britain  are  usually 
recogniz^  as  standard  in  Venezuela.  The  obligation  is  more  binding 
than  is  generally  considered  the  case  in  the  United  States,  and  any 
small  offense  against  the  sacredness  of  the  agreement  does  a  great 
deal  of  harm,  as  the  matter  is  soon  common  taiowledge  in  the  small 
centers  of  the  country. 

TERRITORY  OP  AGENTS. 

While  £rms  resident  in  Caracas  compete  with  the  importer  of 
Puerto  Cabellp,  Vaflencia^  Maracaibo,  and  Ciudad  Bolivar  by  means 
of  branch  houses  and  resident  subagents,  and  also  through  travelhig 


COMMERCIAL  PRACTICES  AND  REQtJIREMENTS.  405 

salesmen,  sent  out  periodically  according  to  the  buying  seasons,  an 
American  firm  contemplating  the  giving  of  agencies  m  Venezuela 
should,  by  all  means,  be  first  assured  of  the  ability  of  the  prospective 
agent  or  agency  firm  to  cover  properly  the  territory  of  the  country. 
Otherwise,  it  is  better  practice  to  allow  one  agency  for  Caracas, 
another  for  Maracaibo,  and  another  for  Giudad  Bolivar.  The  Cara- 
cas agency  can  easily  take  care  of  the  Valencia  and  Puerto  Cabello 
territory,  which  includes  Barquisimeto,  if  it  is  at  all  active  and 
well  organized  for  the  business  in  hand.  The  growing  tendency 
is  for  large  firms  of  importers,  with  headquartet's  in  Caracas,  to 
establish  branch  houses  and  stores  in  the  other  commercial  centers 
of  the  country,  causing  Caracas  to  become  more  and  more  the  com- 
mercial  center  of  the  country  and  thereby  greatly  simplifying  busi- 
ness  so  far  as  territory  for  sales  is  concerned. 

Several  of  the  largest  houses  in  the  country  have  been  built  up 
during  and  since  the  war  with  agencies  for  American  specialties, 
maintaining  branches  throughout  the  country  in  the  principal  cen- 
ters of  commerce  and  trade. 

CREDITS. 

The  consensus  of  opinion  in  the  United  States  seems  to  point 
toward  the  general  idea  that  long-term  credits  are  necessary  in 
South  America.  It  is  also  true  that,  as  a  rule,  merchants  figure  on- 
disposing  of  and  collecting  for  the  goods  imported  before  making 
payment  to  the  foreign  shipper,  and  that  buying  seasons  are  from 
one  crop  season  to  another.  The  older  German  firms,  long;  es-. 
tablished  in  Venezuela,  had  built  up  a  large  business  by  their  sys- 
tem of  protection  of  the  jjlanter,  to  whom  fliey  advanced  goods  and 
money,  taking  payment  in  products  of  export,  making  a  balance, 
once  a  year,  and  allowing  accounts  to  run  over  to  another  season  if 
the  last  one  had  proved  to  be  a  bad  one  for  the  planter* 

Another  element  to  be  considered  is  the  fact  that  most  of  the 
merchants  doing  a  small  retail  business  and  purchasing  at  wholesale 
from  the  larger  importers  with  capital,  want  to  become  direct  im- 
porters as  soon  as  possible ;  but,  not  possessing  sufficient  capital,  they 
must  be  granted  long-term  credits,  since  their  customers  of  the  inte- 
rior pay  from  one  crop  season  to  another.  In  coffee,  which  is  the. 
chief  export  product,  this  means  once  a  year. 

In  view  of  the  small  relative  population  of  Venezuela,  its  low 
purchasing  power  and  lack  of  increase  in  production,  and  the  fact 
that  there  is  very  active  competition  in  all  lines  of  trade  in  the 
country,  the  better  policy  would  appear  to  be  one  of  protection  of 
the  large  importer  with  sufficient  capital  to  meet  his  bills  promptly 
on  a  reasonable  credit  allowance  consistent  with  the  delivery  time 
of  shipments  from  date  of  invoice.  As  a  matter  of  fact,  the  la,r^ 
importing  houses,  possessing  sufficient  liquid  capital,  look  upon  this 
capital  as  their  chief  advantage  over  the  smaller  dealers  whom  they 
consider  their  legitimate  wholesale  customers,  and  the  Americaii 
policy  of  selling  to  large  and  small  houses  alike  in  the  same  city  and 
at  the  same  discounts,  terms,  etc.,  without  consideration  of 'the  rela- 
tive aitaounts  of  the  bills,  has  been  severely  condemned. 

It  appears  that  the  general  policy  of  the  foreign  banks  has  been 
one  of  protection  of  the  large  importer,  letting  him  take  care  of 


406    VENEZUELA. :  A  GOMMEBOIAL  AND  INDUSTRIAL  HANDBOOK. 

the  business  of  the  planter,  the  trade  of  the  interior,  and  the  local 
retail  trade.  Care  should  be  exercised  in  allowing  credit,  such  oper- 
ations being  based  on  the  general  economic  conditions  of  the  par- 
ticular district  in  question  with  respect  to  crop  conditions,  seasons, 
etc,  and  the  actual  merchandise  needs  of  the  tributary  population 
regardless  of  the  demands  of  the  importers  for  larger  stocl^  of  goods. 
Credit  should  be  allowed  only  to  long  and  well  established  firms, 
who  should  be  permitted  to  take  care  of  the  local  retail  trade  and  its 
credit  problems  and  of  the  trade  with  the  interior. 

Such  a  policy  has  the  added  advantages  of  greatly  simplifying 
business  relations,  and  also  that  of  eliminating  the  necessity  for  long 
terms  on  account  of  the  fact  that  business  is  being  done  with  firms 
having  sufficient  capital  to  meet  the  usual  terms  now  in  force. 

With  a  weekly  freight  service  from  American  ports  to  Venezuela 
and  reasonable  aelivery  service  from  the  factories,  and  also  allowing 
for  delays  in  dispatch  through  the  Venezuelan  customs  at  port  oi 
entry,  the  terms  now  in  force — namely,  from  90  to  120  days'  date,  or 
even  90  days'  sight — are  sufficient  and  are  not  objected  to  by  the 
larger  importers  who  have  sufficient  capital.  On  account  of  the  de- 
lay in  transfer  of  shipments  for  Maracaibo  at  Willemstad,  Curasao, 
bills  for  that  port  might  be  allowed  another  30  days,  according  to 
judgment  and  arrangement,  if  necessary.  The  same  e:xtension  should 
also  be  considered  for  Ciudad  Bolivar,  as  shipments  for  that  port 
must  be  transshipped  at  Port  of  Spain,  Trinidad. 

In  the  past,  Venezuelan  firms  have  been  very  chary  about  giving 
out  credit  information  about  themselves,  and  this  was  very  difficult 
to  obtain,  for  several  reasons.  Now,  however,  the  establishment  of 
the  foreign  banks  in  the  country  has  brought  home  to  the  various 
firms  the  value  of  making  credit  statements  from  time  to  time  to 
their  bankers,  and  American  firms  will  have  no  great  difficulty  in 
securing  credit  information  from  either  of  the  American  banks 
maintaining  branches  in  Venezuela. 

The  Banco  Mercantil  Americano  de  Caracas  (Mercantile  Bank  of 
the  Americas)  has  also  established  the  service  of  receiving  shipments  ^ 
at  the  ports  of  entry,  paying  the  import  duties  (which  must  be  paid 
witiiin  48  hours  after  receipt  of  the  liquidation  by  the  customhouse) , 
and  holding  the  goods  until  the  customer  has  either  paid  for  them 
or  accepted  the  draft,  or  making  such  other  disposition  as  may  be 
directed  by  the  shipper.  Such  consignments  are  made  directly  to 
the  bank  and  in  the  oank's  name;  the  possession  of  the  shipping  doc- 
uments with  draft  attached  is  no  protection  to  the  shipper,  since  the 
purchaser,  or  other  person  whose  name  appears  on  the  consular  in- 
voice, can,  upon  the  payment  of  the  import  duties,  take  the  goods 
out  of  the  customhouse,  the  Venezuelan  law  recognizing  him  as  the 
owner  of  the  shipment.  If  the  purchaser  has  not  a  copy  of  the  con- 
sular invoice  he  can  easily  secure  one  upon  application  to  the  cus- 
tomhouse and  the  payment  of  a  small  fee  for  the  copy.  "  To  order  " 
shipments  are  unlawful.  Steamship  companies  can  not  even  retain 
control  over  cargo  for  collection  oi  freight  after  it  arrives  in  port. 

FIRST  ORDERS--THE  GETTING  AND  HOLDING  OF  TRADE. 

It  may  be  well  to  state  here  that  it  is  the  usual  .practice  of  most 
Venezuelan  and  other  Latin  American  importers  to  give  a  small 

_  I  I  ■  ■      ■  '  -  ■  ■  ■  .        -■     -       ■  ^^ —    -     ■ —  -    -"T  ~T r-       -111 — 1 

*  8m  footnote  OA  pb  IM. 


COMMEBCIAL  PRACTIOES  AND  REQUIREMENTS.  407 

order  to  a  salesman  representing  a  house  new  in  the  field.  This 
is  done  with  the  idea  of  "trying  out"  the  new  house,  and  the  firm 
will  do  well  to  pay  the  strictest  attention  to  every  detail  of  that 
firat  order,  which  should  always  go  forward  perfect  in  every  de- 
tail. If  mistakes  are  made  in  packing,  invoicing,  consular  declara- 
tion, or  other  matters  it  will  take  a  great  deal  of  hard  work  to  undo 
the  harm  done  and  really  establish  the  firm  in  the  market  in  competi- 
tion with  older  houses  Imown  to  the  trade  and  experienced  in  the  de- 
tails. Nothing  will  ^  farther  toward  building  up  a  trade  with  Latin 
America  than  attention  to  small  details. 

MEANS  TO  ATTAIN  PROFICIENCY. 

Since  the  export  trade  of  the  United  States  has  become  a  more  im- 
portant factor  for  the  Nation,  a  great  many  managers  and  business 
executives  have  taken  up  the  study  of  these  details,  but  more  than  this 
is  needed.  It  is  not  possible  for  one  man,  or  even  a  group  of  men,  in 
any  large  export  concern  or  factory  organization  to  supervise  person- 
ally all  the  requisite  details.  The  solution  lies  in  a  process  of  general 
education  in  foreign-trade  methods,  especially  in  the  encouragement 
of  study  and  the  acquirement  of  knowledge  by  the  minor  employees 
who  have  direct  supervision  of  the  details  of  all  shipments. 

The  office  force,  shipping  force  (shipping  clerks  and  packing  fore- 
men^ ,  and  department  superintendents  should  be  encouraged  to  study 
foreign  trade— commercial  geography,  document  technique,  com- 
mercial laws,  etc. — ^and  a  "  foreign-trade  atmosphere  "  should  be  cre- 
ated in  the  country.  Courses  in  foreign  trade  are  now  available  in 
man^r  of  the  coUe^  and  universities  of  the  country,  but  this  is  not 
sufficient.  Executives  should  provide  the  incentive  for  study  by  their 
employees,  who  should  be  assisted  to  obtain  books  and  other  means 
of  education  in  foreign  trade  and  information  regarding  the  sources 
of  data  pertaining  to  the  subject.  Several  of  the  largest  and  most 
successful  banks  and  exporting  houses  which  maintain  branches  in 
foreign  countries  have  established  their  own  schools  of  foreign  trade, 
and  meir  employees  have  been  obliged  to  take  full  advantage  of  the 
facilities  offered.  More  education  is  necessary,  the  greatest  difficulty 
encountered  by  banks  and  export  firms  being  the  universal  lack  of 
experienced  employees  to  car^  on  their  bulness.  To  supply  thi? 
need,  in  many  cases,  foreigners  who  have  the  necessary  training  and 
experience  are  employed. 

NEGU6ENT  FACTORIES. 

Great  harm  to  the  future  of  American  export  trade  is  being  caused 
by  the  lack  of  proper  cooperation  between  the  manufacturer  and  the 
export  house.  The  export  house  pays  cash  for  the  groods,  discounting 
its  bills  at  the  bank  and  receiving  a  small  commission  from  the  fac- 
tory for  the  placing  of  the  order,  this  commission  being  taken  care  of 
in  the  expoH  price  quoted.  Mc^  of  the  larger  export  houses  are 
located  in  New  York^  as  the  principal  port  of  shipment  to  South 
America  and  to  Europe.  On  account  of  the  congestion  in  the  port  of 
New  York,  the  high  cost  of  space,  and  the  exorbitant  labor  and 
cartage  charges,  it  is  not  possible  nor  practical,  though  it  has  been 
tried,  for  export  houses  to  inspect  every  shipment  arriving  at  the 


408    VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

port  for  export  for  the  account  of  their  clients.  The  mistakes  in 
filling  orders,  in  packing,  in  substitution  of  merchandise,  etc.,  ^et  by 
the  export  house  and  cause  fines  to  the  importer  in  Latin  America,  as 
well  as  other  extraordinary  expenses,  imf  oreseen  when  the  order  was 

g laced.  The  purchaser  makes  his  claim  against  the  export  house  that 
as  his  account ;  the  export  house  in  turn  makes  its  claim  against  the 
factory ;  but  there  has  been  an  enormous  amount  of  complaint  in  the 
United  States  during  the  past  two  years  against  factories  that  do  not 
pack  properly,  that  do  not  follow  instructions,  and  that  do  not  pay 
claims  when  they  are  to  blame  for  trouble  with  the  client  of  the 
exporting  house.  When  damage  occurs  on  account  of  bad  packing, 
theft,  or  other  cause  of  loss,  there  are  many  factories  that  take  their 
stand  upon  the  contention  that  the  goods  were  delivered  in  good  con- 
dition at  the  port  of  shipment  (export). 

To  obviate  these  difficulties  export  houses  have  been  making  up 
"black  lists"  of  factories  that  do  not  pack  properly,  or  follow  in- 
structions, or  pay  attention  to  claims  against  them ;  and  some  of  the 
largest  houses  are  threatening  to  go  out  of  business  and  only  handle 
go<Kls  made  by  factories  that  they  themselves  control. 

The  smaller  factories  and  plants  that  can  not  afford  to  send  their 
own  men  to  Latin  America  tor  trade  getting  must  consider  the  ad- 
vantages offered  by  the  export  commission  house  and  should  take 
better  care  in  following  instructions  to  the  letter,  bearing  in  mind 
that  the  export  house  Imows  the  market  where  the  goods  are  goin^ 
and  all  of  its  special  requirements  and  details,  while  the  manufac- 
turer usually  does  not  know  these  and  has  not  taken  the  trouble  to 
learn  them,  being  confined  to  the  work  and  problem  of  production. 

PROPER  PACKING  FOR  VENEZUELA. 

As  all  the  important  trading  centers  of  the  country  are  near  the 
Caribbean  seaboard,  or  have  river  or  lake  ports,  such  as  Ciudad  Boli- 
var and  Maracaibo,  no  special  packing  requirements  can  be  cited  for 
Venezuela,  except  that  the  packing  should  be  as  light  as  possible, 
consistent  with  the  safety  of  the  goods  contained,  because  of  the  fact 
that  the  customs  duties  are  assessed  upon  the  gross  weight  of  the 
package. 

Textiles  should  always  be  packed  in  pressed  waterproofed  bales, 
tied  with  iron  strapping,  after  the  old  British  method,  which  has  now 
been  very  generally  adopted  by  American  exporters  of  cotton  manu- 
factures. 

A  great  many  articles  shipped  to  Venezuela  in  packing  boxes  from 
the  United  States — ^such  as  shirts,  etc. — ^might  better  be  packed  in 
pressed  bales.  There  is  no  objection  on  the  part  of  the  importers  to 
the  pajment  of  packing  charges  for  the  labor  and  material  used ;  the 
material  is  invariably  used  again  by  the  importers  when  repacking 
shipments  for  the  interior  of  the  country,  and  if  not  obtained  in  this 
maimer  it  would  have  to  be  imported  as  a  separate  it^ooi.  This  is  a 
question  for  special  study  on  the  part  of  each  manufacturer. 

Shipments  of  goods  destined  for  Ciudad  Bolivar  and  the  Orinoco 
Biver  should  be  packed  in  square  bales,  boxes,  or  crates.  Barrels  or 
round  containers,  except  for  cement,  should  not  b^  used,  as  all  freight 


COMMERCIAL  PEACTICES  AND  REQUIREMENTS.  409 

must  be  handled  up  the  steep  river  banks  and  logs  often  occurs 
through  the  round  objects  rolling  into  the  water. 

Numerous  complaints  of  damage  to  shipments  of  paper  have  been 
made  during  the  past  two  years  in  Venezuela,  where  large  quantities 
of  fine  lithographing  paper  are  imported  for  the  use  of  the  cigarette 
factories  of  Caracas. 

All  fine  papers  should  be  packed  in  the  following  manner :  Each 
ream  is  made  into  a  package,  laid  flat,  and  wrapped  in  heavy  paper 
with  the  ends  of  wrapping  paper  folded  over  and  pasted  securely — 
not  tied  with  cord,  since  these  cut  and  damage  the  edges  of  the  con- 
tents. Eight  reams  are  then  packed  in  a  pressed  crate,  as  follows : 
The  baseTOards  of  the  crate  should  be  at  least  1  inch  in  thickness 
with  wooden  cleats  running  across  the  width,  nailed  from  the  inside 
outward  and  not  from  the  outside  (cleat  side)  inward,  as  a  nail  is 
very  likely  to  work  loose  and  cut  into  many  sheets  of  paper.  The 
headboards  are  prepared  in  the  same  manner,  and  both  the  top  and 
bottom,  reinforced  by  the  cleats,  should  be  strong  enough  to  prevent 
any  possible  bending  and  to  stand  handling  en  route.  Then  strong 
iron  straps  are  used,  fastened  across  the  top  and  bottom  boards  and 
down  the  sides  and  cinched  when  the  entire  crate  is  pressed  to- 
gether. This  method  prevents  any  possible  movement,  bending,  or 
creasing  of  the  paper,  the  weight  is  as  light  as  possible,  and  this  has 
been  found  the  most  satisfactory  way  to  pack  paper  for  export  to 
Colombia  and  Venezuela.  The  method  described  is  applied  to  all 
fine  papers,  which  are  always  ordered  in  large  standard  sheets,  to  be 
cut  to  size  by  the  numerous  print  and  book  shops  in  the  countries 
mentioned.  The  crate  should,  of  course,  project  far  enough  out  over 
the  edge  of  the  paper  packages  to  prevent  rubbing  against  other 
freight. 

Print  paper  should  be  packed  in  folded  cylindrical  rolls,  covered 
with  a  double  thickness  of  heavy  wrapping  paper,  with  heavy  folded 
ends  to  protect  the  paper,  and  cords  shoma  not  be  placed  over  this 
wrapping  in  such  a  manner  as  to  cause  cutting  of  the  edges  at  the 
ends. 

DAMAGE  CAUSED  BY  CARELESS  HANDLING. 

In  Venezuela  the  responsibilitv  for  damage  to  goods  in  transit  can* 
be  placed  more  readily  than  in  Colombia,  where  goods  undergo  many 
handlings  in  the  country  before  reaching  their  final  destination.  On 
account  of  the  requirements  for  light  packing,  the  method  of  baling 
has  been  universally  adopted  for  textiles,  but  great  loss,  damage,  and 
complaint  has  been  caused  by  the  careless  handling  of  such  goods  by 
American  carriers,  about  40  per  cent  of  the  bales  received  at  Oaracas 
during  1920  from  the  United  States  showing  marks  of  cargo  hooks, 
the  damage  often  penetrating  far  into  the  bale  and  ruining  many 
yards  of  valuable  cloth.  Similar  shipments  received  from  Europe 
did  not  show  anything  like  such  a  degree  of  damage  from  careless 
handling.  This  is  a  matter  in  which  the  shippers  should  take  an 
active  interest,  to  bring  about  better  methods  of  supervision  and 
control  by  warehouses,  docks,  and  steamship  comp«.nies.  The  respon-? 
sibility  should  be  fixed  somewhere,  because  this  is  one  of  the  many 
relatively  small  matters  that  will  determine  the  prosperity  or  failure 
of  American  foreign  trade  in  the  years  to  come. 


410    VENEZUELA. :  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 
IMPORTANCE   OF  REGISTRATION   OF   TRADE-MARKS. 

The  importance  of  trade-mark  registration  is  much  greater  in 
Venezuela  than  in  the  United  States  on  account  of  the  difference  in 
the  legal  point  of  view  as  to  the  ownership  of  trade-marks.  In  com- 
mon with  most  other  Latin- American  countries,  Venezuela's  system 
of  trade-mark  registration  rests  on  the  "attributive"  system — ^ac- 
cording to  which  the  property  rights  in  a  mark  are  derived  entirely 
from  tne  law  and  depend  upon  the  registration  of  the  trade-mark — 
and  not  upon  what  is  known  as  the  "  declaratory  "  system,  which  is 
recognized  by  common  law  in  the  United  States,  use  being  tiie  basis 
of  property  m  a  mark  and  registration  merely  an  additional  means 
of  protecting  the  property  right  acquired  by  use. 

In  Venezuela  registration  of  a  mark  is  usually  granted  without  in- 
vestigation into  the  right  to  its  use,  though  after  due  notice  to  those 
interested  by  publication  in  the  Official  Gazette.  When  once  effected, 
registration  is  final.  The  importance  of  registration  is  therefore 
greater  than  in  the  United  States,  in  view  of  the  possibilities  of  un- 
fair registration  under  the  trade-mark  laws  in  effect  in  the  country. 

Recent  legislation  in  Venezuela  fully  protects  trade-marks  and 
commercial  names  and  brands  that  have  been  legally  registered.  Un- 
lawful use  of  a  registered  trade-mark,  brand,  or  commercial  name, 
and  imitation  of  goods  protected  by  these  registered  marks,  is  made 
a  matter  of  penal  prosecution  by  the  office  of  the  prefect  of  police 
having  jurisdiction.  So  far  as  the  law  itself  is  concerned  the  issue 
is  perfectly  clear,  but  agents  and  representatives  of  American  firms 
that  have  registered  marks  in  Venezuela  should  be  careful  to  note 
any  such  infractions  or  improper  use  of  their  marks  or  brands  and 
should  at  once  call  the  attention  of  the  proper  authorities  to  the  case, 
furnishing  proof  of  the  violation  of  the  law. 

The  office  of  trade-mark  registration  is  at  the  Ministry  of  Fomento, 
Bamo  de  Privilegio  6  Patentes  de  Industrias,  Caracas. 

The  duration  is  30  years  (renewable). 

The  fees  are :  Seal  and  stamp  for  application,  1.50  bolivars  ($0.29) ; 
seal  and  stamp  for  certificate,  45  bolivars  ($8.68). 

The  application  must  be  made  on  stamped  paper  of  the  seventh 
class  and  should  contain  the  name,  residence,  and  place  of  business 
of  the  applicant ;  the  class  of  articles  to  be  marked ;  a  detailed  de- 
scription of  the  goods  so  marked ;  a  description  of  the  mark,  in  du- 
plicate, showing  the  manner  of  its  application;  10  copies  of  the 
mark;  certificate  of  a  foreign  registration  duly  legalized  by  a  Vene- 
zuelan consul;  and  a  signed  declaration  that  the  party  making  the 
application  has  the  right  to  use  it ;  that  it  does  not  resemble  a  mark 
already  registered,  and  that  the  copies  are  correct  and  exact.  The 
application  must  be  published  in  the  Official  Gazette,  for  which  an 
electrotype  must  be  furnished.  The  final  certificate  is  issued  on 
paper  of  the  third  class.  There  is  separate  registration  of  ^^  marks 
of  manufacture  "  and  "  marks  of  commerce."  If  a  power  of  attorney 
is  included  (as  in  a  case  where  the  application  is  made  for  the  firm 
by  its  agent  in  Venezuela),  it  must  be  legalized  by  a  Venezuelan 
consul.  Registration  is  limited  to  the  duration  of  the  registration  in 
the  country  of  origin,  provided  that  does  not  exceed  30  years. 
«  While  unfair  use  of  trade-marks  and  brands  has  not  been  common 
ia  Venezuela,  there  have  been  several  cases  of  imitation  of  well* 


OOICMEBCIAL  PBACTIOBS  AND  BEQUIBEHENTS.  411 

known  American  brands,  and  American  manufacturers  i^ould  in- 
struct their  representatives  in  the  country  to  be  diligent  in  the  detec- 
tion and  prosecution  of  such  infringements,  and  the  agent  should  be 
supported  by  adequate  allowance  for  expenses  when  such  cases  occur. 

LEGAL  REGISTRATION  OF  DRUGS  AND  PATENT  MEDICINES. 

Article  24,  paragraphs  1,  2,  and  3.  of  the  national  sanitary  law  of 
Venezuela,  contained  m  the  organic  decree  of  the  sanitary  laws,  dated 
January  2,  1920,  provides  for  the  rigid  inspection  of  all  drugs  and 
medicinal  preparations  offered  for  sale  in  the  country  by  the  National 
Sanitary  Service,  which  was  provided  for  by  the  above-cited  de- 
cree. rrioT  laws  provided  for  the  registration  of  patent  medicines 
in  connection  with  trade-marks,  etc.,  but  this  new  law  provides  also 
that  the  chemical  formula  of  the  remedy  shall  be  included.  It  was 
held  that  old  registrations  must  be  made  a^ain,  to  include  the  chem- 
ical formula  of  the  drugs,  patent  or  proprietary  medicines,  chemical 
combinations,  etc. 

In  an  official  notice  of  the  National  Sanitary  Service,  issued  by  its 
central  office  at  Caracas  and  dated  September  24,  1920,  attention 
was  called  to  the  effects  of  this  law.  Applications  can  be  made 
through  the  Ministry  of  Hacienda  (Treasury  Department)  in  Cara- 
cas, the  cost  being  50  bolivars  ($9.65)  for  each  separate  article 
registered.  Registration  can  be  made  by  the  duly  authorized  agent 
of  the  company  or  individual  residing  in  a  foreign  country,  and  any 
properlv  registered  druggist  can  make  such  registration  for  the 
firms  whose  goods  he  handles.  Unless  such  registration  is  made,  dru^- 
^sts  and  others  offering  unregistered  articles  for  sale  will  be  heavily 
fined. 

While  the  letter  of  this  law  requires  an  exact  copv  of  the  chemical 
formula  to  be  registered,  in  cases  where  a  valuable  secret  formula 
is  involved,  a  statement  such  as  that  given  by  the  manufacturers  of 
Enos  Fruit  Salts  is  accepted,  as  follows : 

Enos  Fruit  Salts:  Derivative  compound;  cpntainlng  about  46  per  cent  of 
fruit  derivative,  together  with  about  52  per  cent  of  alkaline  salt,  for  producinii 
effervescence. 

It  is  the  intent  of  the  national  sanitary  law  not  to  hamper  trade, 
but  to  protect  the  ignorant  mass  of  the  population  from  abuse  by  the 
sale  of  worthless  or  harmful  remedies. 

REGISTRATION  OF  FOREIGN  COMPANIES. 

The  registration  of  foreign  corporations  in  Venezuela  is  governed 
by  the  provisions  of  the  Commercial  Code,  which  are  to  tlie  effect 
that  foreign  companies  must  establish  a  legal  residence  in  Venezuela 
and  maintain  a  duly  legalized  representative  in  the  capital.  A  new 
law  of  July  4,  1917,  provided  for  the  establishment  of  stock  ex- 
changes in  all  the  commercial  centers  of  the  country  where  there  are 
chambers  of  commerce.  Every  company  with  circulating  bonds  or 
stocks  was  obliged  to  register  with  the  exchange  offices,  paying  a 
registry  fee  of  one-fifth  per  1,000  of  the  subscribed  capital  as  a 
registration  fee.  A  period  of  90  days  was  allowed  for  all  stock  com- 
panies then  existent  in  the  country  to  register. 


412    VENEZUELA:  A  COMMERCIAL  AND  IKDUSTRlAIi  HANDBOOK. 
REGISTRATION  OF  TYPEWRITTEN  DOCUMENTS. 

A  decree  of  November  11,  1911,  forbade  the  registration  of  type- 
written documents,  but  the  provisions  of  this  law  have  since  been 
made  applicable  only  to  documents  that  are  presented  for  registration 
in  the  office  of  the  registrar,  and  not  applicable  to  any  other  docu- 
ments. However,  according  to  an  interpretation  recently  handed 
down  by  the  Ministry  of  Foreign  Eelations  to  the  Ministry  of  the 
Interior  and  approved  by  the  latter,  typewritten  documents  may  be 
authenticated  by  the  principal  and  subordinate  registrars  of  the  Re- 
public, regardless  of  the  resolution  in  question.  This  was  made 
Sossible  by  the  desire  to  aid  in  the  registration  of  important  legal 
ocuments  originating  in  foreign  countries. 

EFFECTIVE  METHODS  OF  ADVERTISING. 

The  catalogue,  well  presented  and  printed  in  Spanish,  may  be 
said  to  be  the  best  means  of  trade  promotion  in  Venezuela,  aside 
from  the  direct  personal  effort  of  representatives  of  the  firm  desir- 
ing to  increase  its  trade  with  that  country.  As  a  rule,  catalogues  are 
valued  highly,  kept  on  file,  and  referred  to  frequently  by  the  aver- 
age-Venezuelan  importer.  They  are  also  eagerly  searched  for  new 
and  attractive  goods  which  it  is  thought  wiU  have  a  ready  sale  in 
the  country.  The  best  and  most  effective  catalogues  are  those  printed 
in  the  Spanish  language  and  giving  the  weights  and  measures  in 
both  systems,  the  equivalents  of  our  system  being  given  in  the  metric 
system.  This  greatly  assists  the  merchants  in  calculating  import 
duties,  freights,  etc.,  and  in  making  comparisons  with  similar  goods 
from  Europe.  It  should  be  borne  in  mind  that  the  Venezuelan  im- 
porter is  a  vei^  shrewd  business  man  and  takes  every  advantage  of 
comparative  onerings  from  all  market  sources,  carefully  cc»nparing 
prices  from  Manchester,  Liverpool,  Hamburg,  and  New  York  and 
taking  into  account  the  difference  in  time,  freight  rates,  etc. 

All  catalogues  should  display  illustrations  of  the  factories  or  build- 
ings of  the  concern,  as  importers  like  to  feel  that  they  are  doing  busi- 
ness with  a  large  concern.  Interior  views  of  departments,  showing 
methods  and  processes,  are  very  attractive  and  interesting  for  the 
buyers.  Cuts  made  from  actual  photographs  of  packing  methods, 
etc.,  are  useful. 

Competition  is  very  keen  in  merchandising  in  Venezuela  in  all 
lines,  and  merchants  are  glad  to  receive  new  bulletins  of  seasonal 
goods  of  attractive  design  and  appearance  and  new  styles. 

Catalogues  sent  to  the  consulates  usually  do  little  good,  on  account 
of  the  fact  that  the  consulates  are  at  the  seaports  where  little  business 
is  done,  the  large  firms  being  in  the  capital  and  interior  cities  (except 
for  Maracaibo,  which  is  both  a  port  and  an  important  commercial 
center).  It  is  not  the  custom  of  the  country  for  the  merchants  to 
visit  the  consulates  and  refer  to  the  catalogues.  The  best  method 
iM  for  the  firm  to  send  each  prospective  customer  on  the  list  a  catalogue 
direct,  with  a  letter  treating  for  new  business  and  explaining  semce, 
methods,  etc. 

Advertising  in  the  better  known  bilingual  magazines  (nearly  all 
of  which  can  be  found  in  Caracas,  Valencia,  Puerto  Cabello,  and 
Maracaibo  in  the  stores,  clubs,  chambers  of  commerce,  and  homes  of 


COMMBECIAL.  PRACTICES  AND  REQUIREMENTS.  413 

the  merchants)  is  productive  of  good  results^  more  especially  where  the 
pictorial  display  shows  the  article  or  material  in  use  in  some  country 
where  conditions  similar  to  those  in  Venezuela  can  be  readily  visual- 
ized bv  the  reader. . 

Wim  the  exception  of  posters  and  pictorial  display  in  the  motion 
pictures,  advertising  in  the  Venezuelan  newspapers  or  magazines 
does  not  reach  about  80  per  cent  of  the  population.  It  should  be 
borne  in  mind  that  printed  matter  is  useful  to  only  about  20  per  cent, 
or  less,  of  the  total  population. 

Local  newspapers  are  always  very  good  mediums  and  are  being 
used  more  and  more  by  American  firms  for  advertising.  The  daily 
papers  are  small,  as  compared  with  those  of  the  United  States,  but 
are  read  carefully  and  completely  and  pass  from  hand  to  hand  very 
often,  thereby  reachinga  greater  number  of  people  than  the  circula- 
tion ngures  indicate.  The  daily  papers  of  Caracas  reach  all  the  im- 
portant points  of  the  interior,  being  distributed  by  mail. 

Catalogues  sent  to  Venezuela  that  are  printed  in  English,  unless 
speciallv  requested  or  intended  to  cover  an  emergency  condition  of 
the  traae,  do  very  little  good  and  may  be  considered  lost  value.  Dur- 
ing the  past  two  years  the  country  has  been  flooded  with  such  cata- 
logues, which  are  a  dead  loss. 

Agents  should  be  kept  well  supplied  with  the  advertising  litera- 
ture of  the  firm,  and  their  ideas  and  suggestions  for  new  publica- 
tions should  be  considered  and  incorporated  whenever  possible. 

A  very  good  method  of  advertising  and  one  that  has  long  been  used 
by  the  older  German  and  British  firms  doing  business  in  Venezuela  is 
that  of  sending  the  customer  a  cordial  personal  letter  on  his  birthday 
and  the  anniversary  of  his  establishment,  a  card  at  Christmas  and 
New  Year's,  and  periodical  personal  letters  about  the  trade  and  con- 
ditions, the  idea  being  to  cultivate  a  personal  relation  between  buyer 
and  seller.  Importers  in  Venezuela  like  to  feel  that  they'count  with 
their  connections  in  the  United  States,  that  they  are  valued  cus- 
tomers, that  their  interests  are  being  watched,  and  that  there  is  a 
personal  basis  of  agreement  and  understanding.  The  usual  stereo- 
typed form  of  trade  letter  does  no  good  whatever,  and  a  stamped 
signature  is  regarded  as  an  insult.  All  letters  to  customers  should 
be  signed  by  the  head  of  the  firm  or  the  manager  of  the  department 
hancuing  the  business. 

For  reaching  the  working  class  of  the  people,  a  good  trade-mark 
of  some  simple  design  is  the  best  method.  The  people  buy  year 
after  year  the  same  articles,  such  as  tools,  cotton  goods,  etc.,  which 
they  know  by  the  mark.  For  a  design  some  familiar  object  of  the 
bountry  should  be  used,  such  as  an  outline  of  an  alligator,  a  monkey, 
a  snake,  a  palm  tree,  a  spear  head,  an  arrow,  a  flower,  a  star,  or 
some  other  such  object.  These  new  trade-marks  should  be  brought 
to  the  attention  of  the  general  nonreading  public  by  means  of  bril- 
liant posters  displayed  on  the  walls  about  the  towns  and  cities.  In 
these  posters  very  little  reading  matter  can  be  used,  but  the  mark 
and  name,  which  should  be  "  catchy  "  in  the  Spanish  tongue,  should 
be  given  great  space  and  displayed  to  the  best  possible  advantage 
with  colors. 

Motion  pictures  can  not  be  overlooked  as  an  advertising  medium. 
All  classes  go  to  the  pictures,  which  are  found  in  nearly  every  small 
town. 


414    VENEZUELA:  A  COMMERCIAL  AND  INDUSTRIAL  HANDBOOK. 

Taking  into  consideration  the  fact  that  only  15  per  cent  of  the 
total  population  can  afford  luxuries,  and  that  the  purchasing  power 
of  the  people  as  a  whole  is  quite  low  (though  it  is  higher  per  capita 
than  in  either  Colombia  or  Ecuador) ,  and  basing  the  comparison  on 
the  total  annual  commerce  of  the  country  in  general,  it  may  be  said 
that  money  spent  on  judicious  and  well-adapted  advertising  in  Vene- 
zuela is  productive  of  greater  and  more  immediate  results  than  in 
the  United  States. 

TRADE-PROMOTIVE  EFFORTS  OF  VENEZUELAN  GOVERNMENT  AND 

CITIZENS. 

By  a  decree  of  March  29,  1919,  the  Venezuelan  Government  cre- 
ated the  post  of  consul  general  of  Venezuela  in  New  Orleans,  with 
jurisdiction  over  the  States  of  Louisiana,  Mississippi^labama,  Geor- 
gia, Texas,  Arkansas,  Missouri,  Iowa,  Nebraska,  Tennessee,  Ken- 
tucky, and  Ohio,  the  remaining  States  of  the  United  States  coming 
under  ^the  jurisdiction  of  the  consul  general  at  New  York.  The 
main  object  of  this  provision  was  to  promote  commercial  relations 
with  the  southern  part  of  the  United  States. 

The  same  year  the  Bureau  of  Commercial  Policy-— corresponding 
to  the  Bureau  of  Foreign  and  Domestic  Commerce  of  the  Unitea 
States,  but  coming  under  the  direction  of  the  Ministry  of  Foreign 
Affairs  of  Venezuela — was  created  and  a  prominent  Venezuelan  was 
sent  to  the  United  States  and  to  Europe  on  a  commercial  mission 
having  to  do  with  the  establishment  of  commercial-agent  offices  in 
the  various  capitals  and  trade  centers  of  the  world.  The  Bureau 
of  Commercial  Policy  has,  since  its  creation,  made  great  strides  in 
the  promotion  of  trade  between  Venezuela  and  the  United  States. 
A  Commercial  and  Industrial  Bulletin  is  published  weekly  and  dis- 
tributed throughout  the  country.  This  publication  contains  timely 
reports  and  articles  relating  to  the  import  and  export  trade  of 
Venezuela  and  also  to  domestic  industries. 

In  June,  1920,  another  special  representative  was  sent  to  Japan 
to  study  the  commercial  relations  of  the  two  countries  and  recom- 
mend an  adequate  means  of  increasing  the  traffic. 

The  decree  of  January  10,  1920,  created  the  posts  of  commercial 
agents  in  the  principal  countries  having  commercial  relations  with 
Venezuela,  namely,  the  United  States,  Great  Britain,  France,  and 
Spain.  The  salary  allowed  was  1,200  bolivars  ^$231.60)  per  month, 
with  a  travel  allowance  of  800  bolivars  ($164.40). 

In  1920,  from  May  until  June,  there  was  held  in  Caracas  the  first 
National  Exposition  of  Venezuela,  but  only  domestic  products  orf 
agriculture  and  manufacture  were  represented,  though  exhibits  were 
invited  of  motor  cars,  trucks,  tractors,  agricultural  implements,  and 
machinery,  etc.  American  manufacturers  lost  an  excellent  oppor- 
tunity to  advertise  their  goods. 

All  the  principal  commercial  centers  of  Venezuela  have  chambers 
of  commerce  which  are  semiofficial  in  character,  with  the  Chamber  of 
Commerce  of  Caracas  acting  as  the  central  national  body.  In  May, 
1920,  an  aCTeement  for  commercial  arbitration  was  concluded  be- 
tween the  Caracas  Chamber  of  Commerce  and  the  Chamber  of  Com- 
merce of  the  United  States,  the  Caracas  Chamber  of  Commerce  act- 


COMMERCIAL  PRACTICES  AND  REQUIREMENTS.  415 

ing  for  the  chambers  of  commerce  of  Maracaibo,  Carupano,  Ciudad 
Bolivar,  and  Puerto  Cabello.  The  agreement  was  very  similar  in  its 
action  and  effect  to  that  previously  made  with  the  Argentine  and 
Brazilian  Chambers  of  Commerce,  whereby  committees  are  appointed 
in  both  countries  to  act  on  all  cases  of  commercial  dispute. 

Lftte  in  1920  a  movement  was  begun  for  the  formation  of  an  Amer- 
ican chamber  of  commerce  in  Caracas  composed  of  members  repre- 
senting American  firms  and  banking  institutions  in  Venezuela,  but 
the  organization  was  delayed  temporarily  on  account  of  the  business 
situation  prevailing  during  that  period. 


MARKETS  FOR  SPECIFIC  CLASSES  OF  MERCHANDISE. 

BAGS  AND  SACKS. 

Venezuela  makes  its  own  bags  from  imported  jute  and  hessians. 
In  1919  the  imports  amounted  to  511^70  kilos  (kilo=2.2046  pounds), 
valued  at  1,253,738  bolivars  ($241,971).  During  the  war,  when  not 
enough  imported  material  could  be  secured,  considerable  interest 
was  displayed  in  the  development  of  the  country's  resources  in 
natural  fibers  such  as  henequen,  sisal,  and  other  species  of  the  agave. 
Many  small  plants  were  started,  making  rough  sisal-fiber  bags  for 
the  coffee  and  cacao  exports,  and  these  factories  continue  to  do  a 
good  business;  but  it  is  not  tnought  that  they  can  continue  to  com- 
pete with  the  imported  jutes  after  conditions  return  to  normal  and 
the  supply  from  India,  through  Great  Britain,  is  obtainable  at  pre- 
war prices  again. 

According  to  Consul  Homer  Brett,  the  market  for  cotton  bags  in 
La  Guaira  is  very  small,  as  no  flour  mills  or  plants  for  grinding  and 
mixing  feed  are  located  there.  The  principal  demand  comes  from 
establishments  turning  out  refined  sugar,  but  even  these  are  sup- 
plied in  large  part  by  the  bags  made  in  the  country  of  domestic 
materials.    Sucn  bags  hold  10  Inlos  of  sugar  (1  kilo=2.2046  pounds) . 

Rates  of  import  duty  have  a  strong  bearing  on  the  demand  for 
foreign-made  sacks  and  are  as  follows,  per  100  pounds  gross  weight : 

Art.  660.  Sacks  of  unbleached  hemp,  jute,  nankeen,  or  simUar  fabric,  $10.28. 
Art.  661.  Sacks  similar  to  above,  but  secondhand,  $3.43. 
Art.  662.  Sacks  of  canvas,  duck,  or  similar  fabric,  $17.13. 

Common,  heavy  bagging  pays  $3.43 ;  lighter  bagging,  $10.28 ;  heavy 
duck  and  duck  of  medium  weight  pay  $10.28 ;  light  duck  pays  $17.13. 
The  domestic  cotton  mills  can  sell  cloth  suitable  for  sacks  at  a  lower 
price  than  imported  material,  but  they  can  not  supply  the  entire 
demand. 

Consul  Frank  Anderson  Henry  states  that  the  exports  from  the 
Puerto  Cabello  district  of  Venezuela  which  require  bagging  consist 
of  coffee,  cocoa,  sugar,  and  frozen  meat.  Coffee  is  usually  shipped  in 
bags  of  60  kilos  each.  It  is  estimated  that  from  300,000  to  500,000 
bags  of  products  are  exported  from  Puerto  Cabello  annually,  not  in- 
cluding frozen  meat.  The  greater  part  of  the  baffging  is  brought  in 
without  previously  being  made  up  mto  sacks,  and  all  bags  imported 
are  secondhand.  This  is  due  to  the  fact  that  the  customs  duty  on  new 
bags  made  of  jute  is  $10.28  per  100  pounds,  while  secondhand  bags 
and  bagging  pay  only  $3.43  per  100  pounds.  According  to  item  27 
of  the  taring  coarse  secondhand  bags  suitable  for  shipping  mangrove 
bark,  divi-divi,  shells,  etc.,  are  admitted  free  of  duty.  Some  bags 
are  made  in  the  country  of  domestic  materials,  the  principal  varieties 
being  of  fique  (agave  fiber)  and  henequen. 

il6 


MABKETS  FOB  SPECIFIC  CLASSES  OF  MERCHANDISE.  417 

CANNED  GOODS. 

The  importation  of  canned  goods  is  limited  to  a  very  small  per- 
centage 01  the  total  population  of  2,800,000  people.  Probably  not 
more  than  10  per  cent  can  be  termed  consumers  of  canned  goods, 
tiiough  the  working  class  is  disposed  to  buy  any  article  that  their 
limited  purses  can  afford.  Probably  not  more  than  1  or  2  per  cent 
are  habitual  consumers  of  canned  goods  of  all  kinds.  Fresh  meats 
and  vegetables  are  abundant  and  cheap,  and  native  fruits  are  reason- 
able in  price,  including  the  great  food  staple  of  the  people,  the  banana 
and  plantain ;  but  milk  is  rather  high  in  price,  retailing  at  10  to  12 
cents  per  quart  in  most  places.  American  canned  fruits  and  vege- 
tables retail  at  50  to  90  cents  per  tin  of  2J  pounds.  Prior  to  the  open- 
ing of  the  Panama  Canal  importers  had  a  keen  interest  in  the  develop- 
ment of  a  direct  trade  in  canned  and  dried  fruits  with  the  Pacific 
coast  of  the  United  States,  but  this  expected  trade  has  not  developed 
to  any  extent  and  the  business  continues  to  be  done  through  the  export 
commission  houses  of  New  York,  the  main  difficulty  appearing  to  be 
the  lack  of  steamer  connections  through  the  Canal  to  Venezuelan 
ports  and  a  lack  of  effort  on  the  part  of  the  Pacific  coast  canners  to 
establish  the  trade  directly.  Importers  are  anxious  to  extend  their 
relations  with  the  Pacific  coast  in  this  trade,  and  with  the  provision 
of  better  steamer  service  between  Pacific  coast  ports  and  tne  Canal 
since  the  war,  with  rapid  connections  at  Colon,  it  is  thought  that 
more  attention  should  be  paid  to  this  development.  Shipments  of 
olive  oil,  which  now  comes  principally  from  Spain,  might  advan- 
tageously be  included  with  canned  fruits  and  dried  fruits  from  Cali- 
fornia. 

In  the  normal  years  before  the  war  Germany  led  in  only  one 
article  of  canned  goods  sold  to  Venezuela,  namely,  butter.  Danish 
butter  has  long  been  used  in  Venezuela  and  is  in  great  favor ;  it  was 
usually  imported  through  Grermany,  but  may  be  credited  to  Den- 
mark. The  United  States  held  the  second  place  with  butter,  al- 
though most  of  the  American  butter  went  to  the  cheaper  trade,  as 
the  quality  was  inferior  and  the  packing  less  attractive  than  in 
the  case  ox  the  butter  from  Europe.  The  modern  dairy  was  estab- 
lished at  Maracay  seven  years  ago  by  Gen.  Gomez  and  now  has  a 
capacity  of  180,000  kilos  (1  kilo=2.2046  pounds)  of  butter  per  year, 
which  amount  greatly  affects  imports  of  the  article ;  moreover,  a  can- 
ning department  has  been  added,  and  tinned  butter  is  shipped  to 
other  centers  of  the  country,  such  as  Maracaibo  and  Ciudad  Bolivar. 
Calculating  the  annual  total  consumption  of  butter  prior  to  the  war 
at  about  $400,000  (imported),  it  may  be  said  that  at  the  present  time 
the  local  domestic  factory  turns  put  about  one-half  of  the  butter  con- 
sumed in  the  country.  The  people  of  the  poorer  class  do  not  use 
butter  in  any  form. 

The  United  States  leads  in  the  shipments  to  Venezuela  of  dried 
meats,  canned  meats,  and  fish  of  all  kinds — with  or  without  vege- 
tables— ^tinned  sausage,  pickles,  and  canned  corn.  It  has  led  also 
in  cottonseed  oil,  although  this  article  has  now  been  removed  from 
the  list  of  imports  on  account  of  the  present  production  of  the 
domestic  mills,  which  is  more  than  enough  to  supply  the  needs  of 
the  entire  country  at  the  present  rate  of  consumption  and  even 

79747**— 22 ^28 


420    VENEZUELA:  A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 


Articles  and  countries  of  origin. 


Earthenware  and  crockery: 

United  States 

United  Elingdom 

Netherlands 

Trinidad 

Panama 

Italy 

Other  countries 


Total. 


Glass  and  manufactures  of: 
Bottles- 
United  States 

Trinidad 

United  Kingdom . . 
Other  countries 


Total. 


Manufactures,  n.  e.  s.- 

United  States 

United  Kingdom. 

Prance 

Italy 

Other  countries.. 


Total. 


Plate  and  flat- 
United  States.. 
Other  countries. 


Total. 


Domestic  wares: 

United  States 

United  Kingdom. 

Netherlands 

Spain 

Other  countries.. 


Total, 


1917 


S26,032 

63,742 

7,256 


1,187 
1,773 


99,990 


73,532 
2,265 


75,797 


40,408 
"6,'i» 


2,250 


57,833 


13,047 
7 


13,064 


143,102 

18,038 

4,310 

1,041 

1,794 


169,284 


1018 


173,500 
60,365 


2,683 
1,427 


110 


188,085 


11,532 


4,743 
138 


16,413 


47,613 

074 

2,120 

1,194 

315 


52,216 


14,459 
346 


14,805 


89,028 

17,868 


149 


107,045 


DAIRY  AND  MEAT  PRODUCTS. 


As  is  stated  by  Consul  Homer  Brett,  the  consumption  of  imported 
dairy  products  in  Venezuela  is  confined  almost  entirely  to  the  larger 
cities,  as  the  poorer  people  in  the  smaller  villages  and  the  country 
neither  need  nor  can  afford  to  eat  imported  foods.  The  imports  of 
these  products  for  the  years  1913, 1916,  and  1919  were  as  follows : 


Articles. 


Butter: 

Pounds 

Value 

Cheese: 

Pounds 

Value 

l£ilk,  condensed: 

Pounds 

Value 


1013 


1.727,880 
1820,030 

666,840 
864,410 

210,875 
118,332 


1016 


600,104 
$101,053 

156,763 
941,908 

70,636 
16,087 


lOIf 


441,808 
8863,819 

01,751 
840,000 

104,518 
813,277 


In  1915  a  modern  creamery  was  established  at  Maracay.  It  is  a 
complete  plant  and  produces  cheese,  canned  milk  and  cream,  and 
hog  products,  as  well  as  more  than  1,000  pounds  of  butter  per  day- 
A  published  statement  says  that  the  milk  used  in  this  "Lactuario" 
is  exceptionally  rich  in  butter  fat,  containing  4J  per  cent,  whereas 
the  average  content  of  milk  in  Holland  is  from  3J  to  3^  per  cent. 
In  other  words,  it  takes,  according  to  the  same  statement,  26  liters 


MARKETS  FOR  SPECIFIC  CLASSES  OF  MERCHANDISE.  421 

(6.86  gallons)  of  Dutch  milk  to  produce  1  kilo  (2.2  pounds)  of 
butter,  whereas  the  same  amount  can  be  obtained  from  18  liters  (4.75 
gallons)  of  the  milk  of  Maracay.  The  butter  is  sealed  in  tins  of 
various  sizes,  but  for  Caracas  consumption  it  is  also  sold  in  ^-pound 
packages  at  a  price  of  80  cents  per  pound,  which  is  much  less  than 
the  present  price  of  tinned  Danish  and  Dutch  butter. 

In  all  the  cities  and  towns  of  Venezuela  milk  is  sold  at  prices 
varying  from  10  to  15  cents  per  quart,  a  considerable  portion  being 
goat's  milk.  The  goats  were  originally  of  Canary  Island  stock,  but 
are  not  the  equal  of  the  present  Canary  goats  as  milkers.  It  is 
possible  to  obtain  homemade  butter,  but  the  quality  is  poor  and  the 
making  of  it  is  unusual.  Because  of  the  steepness  and  narrowness 
of  the  streets  in  many  cities,  milk  wagons  are  not  used,  deliveries 
being  made  on  horseback,  but  it  is  not  unusual  for  cows  to  be  led 
from  door  to  door  and  milked  in  the  presence  of  the  customer.  When 
this  method  is  used  the  average  purchase  is  only  about  half  a  pint, 
the  milk  being  drawn  directly  into  a  glass  furnished  by  the  pur- 
chaser. On  these  door-to-door  trips  calves  always  accompany  the 
cows  and  are  tied  to  one  of  the  cow's  legs  while  milking  is  going  on. 
It  is  not  considered  safe  to  use  milk  except  while  still  warm  from 
the  cow  or  after  it  has  been  boiled. 

Queso  Uanera,  or  cheese  of  the  plains,  is  a  staple  product.  It  is 
a  white,  porous,  and  very  crumbly  cheese,  which  sells  at  present  for 
about  25  cents  per  poimd  wholesale.  A  great  many  of  these  cheeses 
are  produced  in  the  Paraguana  Peninsula  from  goat's  milk;  some- 
times  they  are  very  bad,  and  there  have  been  numerous  instances  of  ' 
poisoning  as  a  result  of  eatins  them.  The  Maracay  creamery  is  now 
making  yellow  cheese  of  good  quality. 

There  are  no  statistics  whatever  in  regard  to  the  dairying  in- 
dustry in  Venezuela.  The  total  number  of  cattle  of  all  kinds  in  the 
Eepublic  is  variously  estimated  at  2,000,000  to  8,000,000  head,  with 
the  opinion  of  many  observers  inclining  toward  the  lower  figures. 
Of  these  only  a  small  percentage  are  ever  milked  at  all,  and  little 
commercial  use  is  made  of  the  milk  or  its  products.  Probably  about 
15,000  cows  in  the  entire  Eepublic  are  milked  for  commercial  pur- 

Koses.  The  annual  values  produced  are  approximately  as  follows: 
[ilk  sales  in  cities  and  towns,  $1,300,000 ;  Maracay  butter  and  cheese, 
etc.,  $270,000 ;  country  cheeses  (mainly  from  goat's  milk) ,  $214,000 ; 
total,  $1,784,000. 

It  is  difficult  even  to  guess  at  the  number  of  goats  that  exist  in 
the  country  or  that  are  milked  regularly. 

There  is  an  increasing  tendency,  in  Venezuelan  import  statistics 
of  meat  and  dairy  products,  to  group  these  and  other  articles  under 
the  general  headmg,  "Conservas  alimenticias,"  or  preserved  foods. 
UntU  the  middle  of  1915  imports  of  hams  were  set  forth  separately, 
but  since  then  these,  as  well  as  sausages,  salt  meat,  and  condensed 
milk,  have  disappeared  from  the  Ust. 

According  to  Venezuelan  figures,  the  country's  total  imports  of 
certain  important  products  during  1919  were  as  follows:  Canned 
and  preserved  foods,  237,089  kilos  (1  kilo=2.2046  pounds),  valued 
at  604,740  bolivars  ($97,415) ;  lard,  59,282  kUos,  valued  at  105,790 
bolivars  ($20,417) ;  stearin,  447,211  kilos,  valued  at  952,691  bolivars 
($183,869) ;  taUow,  12,156  kUos,  valued  at  24,578  bolivars  ($4,748). 


t  • 


424    VENEZUELA:  A  COMMEBCIAL  AND  INDUSTRIAL  HANDBOOK. 

seven  times  the  normal,  but  it  was  found  that  the  product  could  be 
obtained  from  England,  and  the  shortage  was  relieved.  The  supply 
of  gunpowder  became  so  deficient  as  to  interfere  seriously  with  the 
prosecution  of  the  various  forest  industries  of  the  Bolivar  district, 
as  none  could  be  obtained  from  abroad,  ai^d  the  powder  factory  in 
Caracas  could  get  no  saltpeter.  Large  quantities  were  ordered,  but, 
as  soon  as  it  appeared  probable  that  everyone  could  get  powder,  mer- 
chants hastened  to  cancel  their  orders,  to  avoid  being  overstocked 
with  a  commodity  almost  certain  to  decline  in  price. 

Probably  for  some  time  to  come  all  heavy  chemicals  will  continue 
to  be  supplied  by  the  United  States,  as  freight  rates  are  lower  than 
from  Europe  and  deliveries  are  quicker.  The  trade  in  drugs  and 
medicines  is  more  highly  competitive,  and  many  articles  from  France, 
Italy,  and  Spain  are  sold  that  American  producers  might  supply. 
There  has  been  a  great  increase  in  American  sales,  but  it  is  possible 
that  these  have  been  the  result  of  temporary  conditions.  American 
makers  of  patent  medicines  have  lost  trade,  and  are  still  doing  so, 
through  having  appointed  as  agents  foreign  business  firms  directly 
interested  in  promoting  the  sale  of  competing  articles  of  European 
origin.  Where  possible,  American  goods  should  be  represented  by 
American  or  by  Venezuelan  agents.  Eepresentation  by  persons  of 
other  nationality  is  generally  inadvisable. 

There  is  no  reason  to  expect  any  considerable  increase  in  Vene- 
zuelan imports  of  chemicals  for  inaustrial  purposes,  as  there  are  no 
new  manufacturing  industries  in  prospect.  Those  that  exist  do  so 
only  under  the  shelter  of  a  protective  tariff  and  are  limited  to  the 
home  market. 

Imports  of  gasoline  and  kerosene  will  probably  decline,  as  these 
articles  are  now  being  produced  by  a  rennery  that  has  beeA  estab- 
lished in  Venezuela.  JLubricating  oil  is  not  produced,  and  importa- 
tions of  it  have  increased,  principally  because  of  the  growing  use  of 
the  automobile. 

GLOVES. 

Imports  of  gloves  into  Venezuela  are  of  small  extent.  The  use  of 
gloves,  as  Consul  Brett  says,  is  practically  confined  to  the  city  of 
Caracas,  and  even  there  to  the  more  well-to-do  classes ;  in  the  coast 
cities  and  towns  the  heat  makes  the  wearing  of  gloves  of  any  sort 
very  uncomfortable. 

It  being  customary  in  Venezuela  to  go  into  mourning  even  for 
the  most  distant  relatives,  the  principal  demand  in  women's  gloves 
is  for  those  of  black  cotton  to  go'  with  mourning  costumes.  Few 
gloves  of  kid  or  silk  are  worn  and  still  fewer  are  imported  commer- 
cially, because  the  persons  able  to  afford  them  travel  frequently  and 
make  their  purchases  abroad.  No  woolen  gloves  are  used,  and  there 
is  no  appreciable  seasonal  difference  in  the  demand  except  in  so  far 
as  all  merchandise  moves  more  rapidly  in  December  and  January, 
when  the  crops  are  being  sold. 

Gloves  are  used  by  men  to  a  much  less  extent  than  by  women. 
Army  officers  are  practically  the  only  men  ever  seen  wearmg  gloves 
on  the  street.    Soldiers  wear  white  cotton  gloves  with  fiul  dress 


MABKETS  FOR  SPECIFIC  CLASSES  OF  MERCHANDISE,  425 

uniforms  on  special  holidays.  Men  wearing  evening  dress  carry 
white  kid  gloves  but  seldom  put  them  on,  and  under  these  conditions 
one  pair  will  last  for  years.  The  only  work  gloves  in  use  are  those 
of  rubber  for  electrical  work. 

The  tariff  provisions  relating  to  gloves  are  as  follows,  in  dollars 
per  100  pounds  gross  weight: 

Gloves  of  bristles $17. 13 

Bath  gloves  of  cotton  or  other  materials 17. 13 

Gloves  of  cotton,  linen,  or  wool 68. 52 

Gloves  of  skins,  kid,  etc 137. 05 

Fencing  gloves 17. 18 

Boxing   gloves 10. 27 

Silk  gloves  are  not  specified  but  come  under  the  general  provisions 
for  articles  of  silk : 

Articles  of  pure  sUk,  $274.10  plus  28.48  per  cent  ad  valorem. 

Articles  of  pure  silk  mixed  with  other  material,  $187.05  plus  28.48  per  cent 
ad  valoreuL 

Articles,  of  artificial  silk,  pure  or  mixed  with  other  material,  $137.05  plus 
25  per  cent  ad  valorem. 

HARDWARE,  TOOLS,  AND  OTHER  STEEL  PRODUCTS. 

Venezuela  offers  an  increasing  market  for  hardware,  tools,  and 
structural  iron  and  steel  products.  In  the  fiscal  jear  enaed  June  30, 
1914  (a  pre-war  vear) ,  the  imports  of  these  articles  reached  a  total 
of  about  $3,330,000,  divided  approximately  as  follows:  Domestic 
utensils,  $115,000;  building  hardware,  $^,000;  cutlery,  $81,000; 
tools,  etc.,  $132,000. 

American  hardware  is  considered  to  be  a  little  high  in  price  in  Ven- 
ezuela in  comparison  with  the  Grerman  and  English  lines,  but  it  is 
better  and  more  durable.  The  chief  complaint  of  the  importers  in 
this  line  is  that  American  goods  are  too  heavy,  the  import  duty  beingr 
based  on  the  gross  weight  of  the  package.  European  makers  of  hard- 
ware and  tools  study  the  Venezuelan  market  and  make  special  designs 
and  lightweight  articles  to  please  the  trade.  This  fact  has  been  an 
important  element  in  the  sales  that  they  have  made. 

One  large  American  jobbing  house  is  well  represented  in  the  coun- 
try by  a  native  agent  who  covers  the  entire  interior  and  does  a  large 
business,  his  customers  buying  directly  from  his  jobbing  firm  instead 
of  bv  the  usual  channel  of  the  export  commission  house. 

Tne  demand  for  steel  products,  tubing,  etc.,  is  rapidly  increasing  in 
the  Maracaibo  district  on  account  of  tiie  opening  of  the  petroleum 
fields  and  the  coal  mines.  As  a  rule,  however,  the  companies  purchase 
through  their  own  offices  in  the  United  States  or  England.  Jul  horse- 
shoes are  made  from  iron  imported  in  bars,  the  importation  of  the 
manufactured  article  being  rendered  prohibitive  by  a  high  duty  in 
protection  of  the  native  industrv.  The  Maracaibo  region  annually 
takes  about  $60,000  worth  of  barbed  wire  for  fencing. 

American  cutlery  appears  to  have  been  well  e^blished  in  the 
Venezuelan  market  during  the  war,  whereas  prior  to  the  war  the 
market  was  dominated  by  the  English  and  German  product— princi- 
pally the  latter  since  1910.    The  demand  for  this  line  is  steaculy  in- 


428  vekeztjbul:  a  oommebgial  and  industrial  handbook. 

hood  of  Coro  this  is  done  quite  extensively  by  women,  who  make  the 
pakn  straw  into  braids  about  an  inch  in  mameter  and  then  sew  them 
into  a  cheap  hat,  which  sells  there  for  about  $1  a  dozen. 

All  raw  materials  for  the  straw-hat  industry  have  to  be  imported, 
and  the  cost  of  these,  after  freight  and  duty  have  been  paid,  is  cou- 
siderable.  Statistics  are  noit  available  as  to  the  extent  of  raw  mate- 
rials imported. 

Prices  of  imported  supplies  have  been  subject  to  wide  variations 
during  recent  years.  Italy,  France,  England,  and  the  United  States, 
in  the  order  named,  have  been  the  principal  sources  of  supply,  but 
in  this  as  in  other  lines  there  is  a  marked  tendency  to  turn  to  the 
United  States.  Formerly  straw  braid  was  bought  at  $57.90  to  $77.20 
per  bale  of  240  pieces,  the  width  of  the  braid  being  from  16/17  of  a 
millimeter  to  6  millimeters.  Nearly  all  the  braid  used  is  white,  only 
very  small  amounts  of  colored  braid  being  imported.  Criticism  of 
the  straw  braid  from  the  United  States  has  been  made  by  manu- 
facturers, because  it  comes  in  packages  of  100  pieces  instead  of  from 
200  to  300  pieces,  to  which  they  are  accustomed.  They  further  claim 
that  it  is  not  as  well  whitened  as  that  from  Europe.  Importation  of 
supplies  is  made  direct  by  the  manufacturers  or  by  importers  for 
their  account.  There  is  no  production  of  straw  braid  within  the 
confines  of  Venezuela. 

LACES  AND  EMBROIDERIES. 

• 

In  the  Venezuelan  statistics  of  imports,  as  Consul  Homer  Brett 
states,  laces  and  embroideries  are  given  under  the  heads  of  ^'encajes  " 
and ''  passementerie."  The  first  relates  more  or  less  exclusively  to  laces, 
while  the  second  includes  embroideries,  ribbons,  dress  tmnmings, 
and  some  other  similar  articles.  For  the  year  1919  imports  of  laces 
amounted  to  584,925  bolivars  ($112,891),  and  of  ^'passementerie" 
to  88,039  bolivars  ($16,027).  In  both  cases  the  figures  were  ex- 
clusive of  lar^  importations  made  bv  parcel  post,  a  method  ^eatly 
favored  for  &is  and  similar  lines,  tor  the  reasons  that  duties  are 
levied  upon  net  instead  of  gross  weights,  consular  invoices  are  not 
required,  and  the  probability  of  customs  difficulties  are  greatly  re- 
duced. 

There  are  no  "  native  costumes "  in  Venezuela  except,  perhaps,  in 
remote  districts.  In  the  cities  American  and  French  fashion  maga- 
zines are  received  promptly  and  are  followed  with  great  fidelity,  in 
the  making  of  clotbes  for  babies  and  small  children  there  is  a  tend- 
ency to  use  much  more  lace  and  embroidery  than  is  now  customary 
in  the  United  States.  Cotton  and  linen  clothing  can  be  worn  the  year 
round  in  most  Venezuelan  cities,  and  this  leads  to  a  ^eater  propor- 
tional use  of  laces  and  trimmings  among  the  more  well-to-do ;  but  in 
considering  the  market  here  it  should  always  be  remembered  by  the 
prospective  exporter  that  the  mass  of  the  population  has  small  pur- 
chasmg  power,  and  that  the  whole  number  of  people  able  to  purchase 
anything  above  the  barest  necessities  probably  does  not  exceea  200,000 
in  all  Venezuela. 

In  sales  of  cotton  textiles  and  knitted  goods  of  cotton,  American 
trade  has  made  tremendous  strides  in  the  last  few  years,  but  so  far 


MARKETS  FOB  SPECIFIC  CLASSES  OF  MERCHANDISE.  429 

little  progress  is  apparent  in  sales  of  those  manufactures  of  cotton 
the  production  of  which  involves  the  use  of  less  material  and  of  more 
labor.  Handkerchiefs,  towels,  ribbons,  laces,  embroideries,  sewing 
thread,  etc.,  still  come  from  Europe  almost  entirely. 

OPTICAL  GOODS. 

Consul  H.  C.  von  Struve  states  that  imports  of  eyeglasses,  opera 
and  field  glasses,  automobile  goggles,  microscopes,  and  unmounted 
lenses  into  Venezuela  are  very  largely  confined  to  dealers  in  Caracas. 
The  market  for  optical  goods  of  all  kinds  is  very  restricted,  spectacles 
and  eyeglasses  being  the  articles  for  which  there  is  most  demand. 
As  the  number  of  Venezuelans  engaged  in  occupations  that  strain  the 
eyes  is  comparatively  small,  the  majority  leading  an  open-air  life,  the 
demand  for  eyeglasses  is  less  than  it  would  be  with  a  population  of 
3,000,000  in  other  more  industrially  developed  countries. 
*  The  styles  of  eyeglasses  used  in  the  Caracas  district  are  the  same  as 
in  the  "Cfnited  States,  imports  since  1914  coming  almost  exclusively 
from  that  country.  Before  the  war  glasses  and  solid-gold  frames 
were  largely  imported  from  Germany,  as  prices  there  were  much 
cheaper  for  goods  of  equal  Quality;  but  American  goods  have  now 
become  very  popular,  and  unless  offers  are  made  elsewhere  of  better 
goods  or  more  favorable  prices  than  American  dealers  will  make,  the 
prospect  is  that  the  bulk  of  these  goods  will  continue  to  come  from  the 
United  States.  American  lenses  are  said  to  have  attained  an  excellent 
quality.  The  closer  proximity  of  the  United  States  will  be  an  im- 
portant determining  factor  in  this  trade. 

Nothing  in  this  line  is  manufactured  in  Venezuela  except  that 
recently  an  optical  dealer  in  Caracas  has  installed  machinery  to 
grind  lenses,  tne  material  for  which  has  to  be  imported. 

Optical  goods  in  practically  all  cases  are  imported  by  the  whole- 
sale dealer  in  Caracas,  who  furnishes  supplies  to  the  few  small  deal- 
ers in  other  parts  of  the  country  while  at  the  same  time  doing  a  re- 
tail business.  The  trade  is  not  sufficiently  large  to  support  an  ex- 
clusively wholesale  house.  Jewelers  at  times  sell  opera  glasses,  but 
the  trade  in  these  is  negligible.  Importations  by  firms  doing  a 
strictly  retail  business  are  rare. 

A  fair  demand  exists  in  the  Maracaibo  district  for  spectacle  and 
eyeglass  frames  and  mountings,  according  to  Consul  Dudley  G. 
Dwyre,  and  it  is  believed  that  this  will  gradually  increase  as  the 
people  become  educated  to  understand  the  benefits  derived  from  a 
scientific  correction  of  eye  troubles.  There  is  also  a  slight  demand 
for  moimtings  for  automobile  goggles  and  sunglasses,  as  the  glare  of 
the  sun  and  the  sand  is  very  common. 

No  optical  goods  of  any  description  are  manufactured  in  the  dis- 
trict. Before  the  war  some  German  and  French  articles  entered  this 
market,  but  they  were  not  in  any  considerable  quantities  and  were 
not  as  satisfactory  as  American  goods.  American  goods  are  now 
well  known  and  will  be  preferred  as  long  as  they  are  sold  reasonably. 
A  foreign  salesman  entering  this  market  with  equal  goods  and  lower 
prices  might  receive  many  trial  orders. 

The  high  customs  duties  make  retail  prices  quite  high;  therefore 

treat  care  should  be  taken  by  American  firms  to  see  that  orders  are 
lied  exactly  as  specified,  and  that  goods  are  packed  in  strict  accord- 


THE  DUTCH  WEST  INDIES. 

LOCATION,  AREA,  AND  POPULATION. 

The  Dutch  West  Indies  consist  of  two  groups  of  islands,  about  500 
miles  apart. 

The  less  important  of  the  two  groups  lies  a  little  east  of  Porto 
Rico,  between  St.  Thomas  and  St.  Kitts,  and  consists  of  St.  Eustatius 
and  Saba  and  part  of  St.  Martin,  the  ownership  of  which  is  divided 
between  France  and  the  Netherlands.  These  three  islands  are  small 
and  without  harbors,  communication  with  them  being  possible  only 
by  schooner,  as  a  rule.    Their  commercial  importance  is  negligible. 

About  500  miles  southwest  of  the  group  just  mentioned  lie  the 

other  islands  of  the  Dutch  West  Indies — Uuragao,  Bonaire,  and 

Aruba.    Neither  Bonaire  nor  Aruba  has  a  good  harbor,  but  Curasao 

has  one  of  the  best  harbors  in  the  West  Indies,  and,  in  fact,  in  the 

entire  Caribbean  Sea. 

The  most  important  island,  and  the  commercial  and  shipping 
center,  of  the  Dutch  West  Indies  is  Curagao,  which  is  located  just 
north  of  the  coast  of  Venezuela,  almost  opposite  the  peninsula  of 
Paraguana  and  about  60  miles  from  the  Venezuelan  port  of  La  Vela 
de  Coro.  St.  Eustatius,  Saba,  and  St.  Martin  are  in  the  leeward 
group  of  the  West  Indian  Islands. 

The  area  and  population  of  the  Dutch  West  Indies  are : 


Islands. 


Curaoao 

Bonaire 

Aruba 

8t.  Kartin . . . 
8t.  Eustatiiis. 
Saba 

Total... 


Area  in 
square 
miles. 


403 


Popula- 
tion. 


34,168 
6,714 
9,481 
3,369 
1,410 
2,289 


67,381 


ADMINISTRATION. 

^ 

Willemstad,  the  capital,  is  the  seat  of  the  Dutch  colonial  govern- 
ment for  the  West  Indian  colonies  comprising  the  islands  of  the 
two  gjroups  mentioned.  The  administration  is  vested  in  a  governor, 
who  is  assisted  by  a  council  of  4  members,  all  nominated  by  the 
Sovereign ;  there  is  also  a  colonial  council  consisting  of  13  nominated 
members.  Each  island,  with  the  exception  of  Curagao,  where  the 
Governor  resides,  has  a  chief  officer,  or  "  gezaghebber,"  also  ap- 
pointed by  the  Sovereign. 

The  revenues  of  the  colony  are  derived  from  import,  export,  and 
excise  duties,  besides  sundry  land  and  indirect  taxes.  Any  deficit  in 
the  revenue  is  met  by  the  mother  country. 

432 


THE  DUTCH  WEST  INDIES. 


433 


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434  THE  DUTCH   WEST  INDIES. 

TOPOGRAPHY  AND  CLIMATE. 

Physically,  CuraQao  presents  no  specially  noteworthy  features.  It 
has  no  striking  altitudes,  and  its  coast  line  is  free  from  marked 
irregularities ;  out  it  possesses  three  promontories,  Point  Cannon, 
Cape  Marie,  and  Cape  West  Point,  the  first  named  being  a  place  of 
special  danger  to  shipping  because  of  the  strong  current  and  heavy 
swells  that  are  characteristic  of  this  locality. 

The  island  of  Curasao  lies  approximately  northwest  by  southeast. 
Its  length  is  about  40  miles  and  its  width  varies  between  3  and  7 
miles,  tne  narrowest  place  being  between  Cape  Marie  and  the  port 
of  Willemstad  at  Bullen  Bay  on  the  southern  coast.  Point  Cannon 
(or  "Canon")  is  at  the  extreme  southeastern  end  of  the  island,  the 
strong  current  mentioned  setting  along  the  coast  from  east  to  west 
and  striking  close  inshore  at  Willemstad,  where  it  makes  the  en- 
trance to  the  harbor  somewhat  dangerous  to  shipping. 

Climatically  and  geologically,  the  characteristics  of  the  island  pre- 
sent a  strong  resemblance  to  those  of  the  neighboring  coast  of  Vene- 
zuela and  the  peninsula  of  Paraguana.  The  formation,  like  that  of 
many  of  the  West  Indian  Islands,  is  volcanic,  with  a  heavy  coral 
capping. 

For  the  most  part  the  climate  is  very  hot,  although  it  is  tempered 
by  the  prevailing  northeast  trade  winds,  which  sweep  the  entire 
island.  Curagao  suffers  from  the  lack  of  sufficient  rainfall,  and  a 
poor  supply  of  water  is  obtained  from  wells  and  cisterns.  The  land 
is  fertile  in  places,  but  conditions  are  not  altogether  such  as  are 
calculated  to  promote  extensive  cultivation.     Nevertheless,  com  is 

§rown  to  some  extent,  and  tropical  fruits  and  vegetables  are  pro- 
uced  but  not  in  sufficient  quantity  to  support  the  demands  of  the 
population,  quantities  being  imported  from  the  neighboring  coast 
ports  of  Venezuela.  The  island  presents  a  rather  barren  appear- 
ance, there  being  no  heavy  timber  of  any  kind,  and  only  widely 
scattered  scrub,  principally  of  the  divi-divi  tree,  with  a  few  bushes 
here  and  there.  When  the  rains  do  come  there  is  sufficient  grass  to 
support  important  flocks  of  sheep  and  goats,,  but  seasons  are  uncer- 
tain. All  roofs  of  residences,  buildings,  and  warehouses  are  con- 
nected to  cisterns  for  the  collection  of  sufficient  water  for  domes- 
tic use  and  for  shipping.  Condensation  of  sea  water  has  been  tried, 
but  proved  to  be  too  expensive  for  commercial  use  on  a  large  scale. 
Curasao  is  fortunate  m  being  free  from  those  elements  of  atmos- 
pheric disturbance  that  have  so  important  an  influence  on  the  life 
of  most  of  the  West  Indian  islands.  For  one  thing,  the  island  is 
situated  outside  of  the  Caribbean  region  most  affected  by  hurricanes, 
being  visited  by  violent  storms  of  this  character  only  three  times 
during  the  past  hundred  years.  Thunderstorms  are  common  during 
the  wet  season,  and  at  times  slight  earthquakes  are  felt.  Newcomers 
to  Willemstad  are  frequently  annoyed  by  the  glare  of  the  sun  re- 
flected from  the  light-colored  streets  and  walks,  composed  of  ground 
coral  and  shell. 

Travelers  stopping  in  Willemstad  prefer  the  west  side  of  the  har- 
bor with  rooms  facing  the  channel,  where  the  full  benefit  of  the 
trade  wind  is  felt  day  and  night,  affording  a  relief  from  the  heat. 

There  are  two  rainy  seasons  of  uncertain  time  and  duration,  the 
rains  occurring  usually  from  October  to  January  and  from  February 


THE  DUTCH  WEST  INDIES.  *         435 

to  May.    During  the  remainder  of  the  year  there  is  practically  jio 
rain. 

CHARACTERISTICS  OF  INHABITANTS. 

The  population  consists  of  three  races — the  Dutch,  thd  Spanish  and 
Portuguese  Jews,  and  the  Negroes,  the  last  named  representing  about 
85  per  cent  of  the  entire  population. 

The  Dutch  have  charge  of  the  administration,  harbor,  etc. ;  com- 
merce is  in  the  hands  of  the  Jews ;  while  the  Negroes  form  the  bulk 
of  the  working  classes,  tilling  the  soil  to  a  certain  extent,  caring  for 
the  flocks,  and  engaging  in  shipping,  the  interisland  and  mainland 
schooner  traffic,  stevedoring,  the  straw-hat  industry,  etc.  The  offi- 
cial religion  of  the  colonial  government  is  Catholic.  The  Jews  main- 
tain three  synagogues.  The  Negroes  profess  the  Catholic  faith,  but 
they  are  superstitious  and  their  oelief  is  crude.  The  Dutch  Govern- 
ment maintains  a  small  garrison  of  soldiers  at  Willemstad. 

The  Curasao  Negroes  form  a  distinct  type,  as  compared  with  the 
inhabitants  of  the  other  islands  of  the  West  Indies,  such  as  Trinidad, 
Jamaica,  etc.  They  are  good  wooden-ship  carpenters  and  expert 
sailors  with  their  small  schooners.  They  show  the  influence  of  their 
varied  history  and  descent,  even  their  language  being  a  mixture  of 
Spanish,  Portuguese,  Dutch,  and  English,  with  Spanish  predominat- 
ing in  the  patois,  called  locally  "  papamiento  "  and  used  by  all  classes 
in  Curasao  in  daily  intercourse  with  the  Negroes.  A  stranger  can 
make  himself  understood  by  these  Negroes  if  he  has  a  knowledge  of 
Spanish,  and  he  can  make  out  to  understand  them,  in  turn,  though 
with  difficulty. 

The  men  are  all  tall,  raw-boned  fellows,  good  workers,  and  seamen. 
Their  trim,  white-painted,  clipper-bowed  schooners  are  known  all 
over  the  Caribbean  for  their  fine,  neat,  and  well-rigged  appearance. 
The  men  take  great  pride  in  their  fast  passages  to  and  from  the 
islands  and  the  mainland  of  Venezuela  and  Colombia.  They  are 
clannish  and  seldom  stay  long  on  the  mainland.  However,  they  emi- 
grate to  Cuba  for  the  sugar  seasons,  this  being  especially  true  during 
Sie  period  of  high  wages  during  the  war  and  the  year  following  the 
armistice.  Such  emigration  has  crippled  the  industry  of  coaling 
steamers  at  Curasao  during  the  past  two  years,  coaling  companies 
being  forcecj  to  import  and  install  machinery  in  order  to  coal  ves- 
sels in  the  time  required.  The  Curagao  Negroes  are  independent, 
well  dressed,  and  fairly  prosperous,  as  compared  with  the  natives  of 
the  mainland  and  many  of  the  other  islands.  Combined  with  a  good 
physique  they  possess  considerable  initiative  and  courage  and  are 
used  very  successfully  in  heavy  construction  work.  Numbers  of  them 
sail  regularly  in  the  crews  of  Dutch  steamers  and  also  on  vessels  of 
the  Red  "  D  "  Line,  from  New  York. 

LANGUAGE. 

Dutch  is  the  official  language  of  the  colony,  but  Spanish  is  the  one 
most  commonly  used  in  business  and  social  life.  Dutch  and  English 
are  understood  and  used  to  some  extent  by  most  business  men.  Com- 
mercial correspondence  with  any  of  the  business  houses  of  Curasao 
may  be  in  English, 


436  THE  DUTCH  WEST  INDIES. 

WEIGHTS  AND  MEASURES. 

The  metric  system  is  the  official  system  of  weights  and  measures 

of  the  colony. 

POSTAGE  AND  PARCEL  POST. 

EflFective  July  1.  1915,  a  2-cent  letter  postage  went  into  effect  be- 
tween the  United  States  and  Curasao,  including  the  islands  of  Aruba, 
Bonaire,  Saba,  St.  Martin,  and  St.  Eustatius.  Parcel-post  rates  and 
rulings  are  the  same  as  for  the  Netherlands.  The  parcel-post  service 
is  much  used  by  the  merchants  of  Willemstad  for  the  purpose  of 
keeping  in  stock  seasonal  merchandise  of  lines  such  as  dry  goods, 

fancy  wear,  notions,  etc. 

CURRENCY. 

The  Dutch  West  Indies  have  their  own  monetary  system,  but  it  is 
based  on  that  of  the  Netherlands,  the  unit  of  value  being  the  florin, 
equal  to  the  Dutch  gilder  and  divided  into  100  centimes.  One  florin 
equals  $0.40  in  United  States  currency.  The  coins  are:  Silver,  2^- 
florin  piece  (equal  to  $1) ;  1-florin  piece,  ^-florin  piece,  and  J-florin 
piece ;  nickel,  5-centime  piece ;  copper,  2-centime  piece  and  1-centime 
piece.  Paper  currency  consists  of  the  100-florin,  50-florin,  25-florin, 
10-florin,  5-florin,  2^-florin,  and  1-florin  notes  of  the  CuraQaosche 
Bank,  the  only  bank  of  issue.  American  silver,  gold,  and  paper 
money  is  accepted  at  par  with  the  florin  at  the  rate  of  2^  florins 
for  $1  United  States  currency.  New  York  bills  of  exchange  com- 
majided  on  December  31,  1920,  a  premium  of  4^  per  cent,  the  rate 
being  2.6125  florins  for  $1. 

Dutch  guilder  or  Holland  exchange  is  treated  like  any  other  for- 
eign exchange  by  the  banks  and  commercial  houses  of  Curasao.  For 
example,  in  January,  1921,  New  York  exchange  sold  at  2.625  florins 
in  Curasao,  while  New  York  exchange  sold  in  Amsterdam  at  3.250 
guilders,  or  at  a  premium  of  30  per  cent— that  for  Curasao  florins 
being  only  5  per  cent.  However,  an  American  merchant,  with  bills 
to  pay  in  Curasao,  could  not  buy  Dutch  guilders  through  New  York 
and  pay  at  par  with  them  in  Curasao,  as  they  would  be  discounted  at 
the  prevailing  rate  of  exchange.  AH  exchange  rates  fluctuate  in 
Cura<jao  according  to  the  New  York  quotations.  Curasao  florins  are 
not  generally  quoted  in  New  York,  as  there  is  little  demand  for  them, 
while  the  banks  in  Willemstad  quote  dollars. 

All  drafts  for  presentation  in  Curagao  are  collected  by  the  banks 
at  the  prevailing  rate  of  exchange  on  the  day  of  payment — ^that  is, 
the  date  of  maturity. 

The  dollar  was  at  a  heavy  discount  in  Curasao  during  the  war,  the 
maximum  being  20  per  cent  in  the  latter  half  of  1918,  due  to  the 
high  premium  of  the  Dutch  guilder  in  New  York  and  the  excess  of 
exports  from  the  colony,  consisting  principally  of  products  trans 
shipped  from  Colombia  and  Venezuela  through  Curagao  to  the 
United  States,  such  as  coffee,  cacao,  hides  and  skins,  sugar,  divi- 
divi,  etc. 

Before  the  war,  the  Netherlands  had  gold,  silver,  and  notes  in 
circulation,  with  the  notes  exchangeable  for  gold  on  demand.  Now, 
the  gold  has  been  called  and  the  notes  of  the  Netherlands  Bank 
are  no  longer  convertible  into  gold  or  silver  on  demand.    These  notes 


THE  DXTTOH  WEST  IHDIBS.  437 

can  not  be  accepted  in  Curagao,  as  they  are  no  longer  legal  tender, 
the  colony  now  having  its  own  monetary  system. 

During  the  war  gold  could  not  be  imported  to  Curagao  from  the 
United  States  to  correct  the  balance  of  trade.  With  the  present  free 
export  of  gold  from  the  United  States,  it  is  thought  that  dollar  ex- 
change could  not  have  a  discount  of  more  than  2  per  cent,  as,  in  the 
event  of  an  unfavorable  balance  of  trade  for  the  United  States,  it  would 
be  corrected  by  imports  of  gold  to  Curagao.  With  the  sudden  drop 
in  the  prices  of  export  commodities  such  as  coffee,  cacao,  hides  and 
skins,  divi-divi,  etc.,  in  the  latter  part  of  1920,  Curagao  was  again 
becoming  the  depository  for  storage  of  these  exports  from  Venezuelan 
ports  to  await  more  favorable  market  conditions,  and  exports  were 
heavily  curtailed,  making  the  balance  of  trade  unfavorable  to  the 
colony,  with  the  prospect  of  still  higher  premiums  for  dollar  ex- 
change, though  Curagao  merchants,  because  of  the  very  nature  of 
their  business  and  trade,  were  not,  as  a  rule,  as  heavily  overstocked, 
when  the  drop  in  prices  came,  as  those  of  the  mainland  in  Colombia 
and  Venezuela.  The  American  exporter  to  Curagao  draws  in  dollars, 
and  the  favorable  or  adverse  rates  of  exchange  concern  only  the  pur- 
chaser when  buying  New  York  drafts  for  payment. 

The  government  and  merchants  of  Curagao  are  trying  to  maintain 
the  Venezuelan  bolivar  and  American  dollar  at  par  rates,  or  nearly 
so,  on  account  of  the  fact  that  the  colony  does  not  produce  sufficient 
foodstuffs  to  feed  the  population  and  quantities  have  to  be  imported 
from  Venezuela  and  the  United  States  for  domestic  consumption. 

American  paper  currency  was  long  considered  as  equivalent  to  gold, 
but  during  the  war  this  market  was  overrun  by  American  notes 
coming  from  the  South  American  Republics,  where  they  could  not 
be  used  in  the  interior  for  the  same  purposes  as  gold,  and,  as  these 
notes  could  only  be  used  for  remittances  to  the  United  States,  they 
had  to  be  rated  at  a  lower  value  than  the  rate  of  dollar  exchange  on 
account  of  the  expense  of  freight  and  insurance.  The  local  value  of 
these  notes  was  gradually  reduced  to  as  low  as  2.10  florins. 

RATES  OF  EXCHANGE. 

The  colonial  laws  do  not  impose  any  control  of  banking  business, 
everybody  being  free  to  frame  and  conduct  his  business  as  he  may 
deem  expedient.  To  a  certain  extent  the  Curagaosche  Bank,  a  gov- 
ernment institution,  furnishing  money  to  the  local  government  and 
having  the  exclusive  right  to  issue  bank  notes,  controls  the  rates  of 
exchange  by  selling  drafts  at  rates  fixed  from  time  to  time,  which 
influence  local  trading  in  foreign  exchange.  As  has  been  stated,  the 
policy  of  this  bank  and  of  the  local  merclxants  is  to  maintain  dollar 
exchange  and  Venezuelan  bolivars  as  near  par  as  possible,  on  ac- 
count of  the  purchase  of  foodstuffs  for  domestic  consumption.  The 
Curagao  Bank  now  has  correspondents  in  New  York  and  the  principal 
European  cities  and  is  selling  drafts  on  the  Netherlands  and  the 
United  States.  A  consistent  policv  to  carry  through  the  Dutch  cur- 
rency might  have  had  as  a  result  the  quoting  of  sight  drafts  in 
guilders  on  the  Netherlands  at  par,  foreign  drafts  to  be  quoted  with 
premium  or  discount  according  to  the  circumstances.  This  policy 
has  been  adopted  in  the  other  Dutch  colonies,  but  there  is  a  tendency 
in  Curagao  to  keep  the  rate  of  the  American  dollar  as  close  as  pos- 


438 


THE  DUTCH  WEST  INDIES. 


sible  to  par  because  of  the  fact  that  nearly  all  exports  go  to  the 
United  States  and  the  buying  also  is  mostly  with  this  country.  An- 
other eifect  would  have  been  that  Curagao  currency  would  have  been 
subject  to  exchange  fluctuations  of  Holland,  while  the  business  of  the 
colony  was  distinctive  in  its  character. 

In  1914,  at  the  outbreak  of  the  war,  the  rates  of  foreign  exchange  in 
Willemstad  were  as  foUows: 

Guilders,  on  Holland,  at  1.0075  florins. 
Dollars,  on  United  States,  at  2.525  florins. 
Pounds  sterling,  on  England,  at  12.20  florins. 
Francs,  on  France,  at  0.49  florin. 
Marks,  on  Germany,  at  0.59  florin. 
Bolivars,  on  Venezuela,  at  0.465  florin. 

New  York  quotations  of  rates  of  exchange  are  the  basis  of  Curagao 
rates,  but  to  some  extent  the  rates  are  affected  by  quotations  in  Vene- 
zuela and  other  neighboring  countries.  German  marks  are  not  quoted 
now.  After  the  beginning  of  the  war  the  government  sold  postal 
money  orders  only  on  the  Netherlands  and  the  other  Dutch  colonies. 

The  following  table  gives  the  exchange  rates  in  effect  on  January 
1,  1921  ("florins"  are  Cura§ao  florins) : 


Items. 


Selling 
rate. 


Buying 
rate. 


DEAFTS. 


Dollars 

Guilders 

Pounds  sterling 

Francs 

Swiss  francs 

Bolivars  (Venezuela). 
Pesetas  (Spanish)  — 
Marks 


GOLD  COIN,  ETC. 


$20  gold  pieces.  United  States 

united  States  paper  currency . 

Venezuelan  gold,  20  bolivars 

Venezuelan  paper  currency. . . 

Pounds,  gold 

Colombieua  5-peso  gold  coins 


Florifu. 
2.625 

.825 
9.72 

.16 

.43 

.4625 

.36 

.045 


52.50 
2.60 


Florins. 
2.6125 
.8125 


61.76 


9.75 
1.455 
12.50 
12.30 


>  Bolivar. 


BANKS  AND  BANKING. 


The  colony  of  Curasao  is  governed  according  to  rules  established 
by  the  home  Government  in  the  Netherlands.  The  regulations  con- 
tain the  following  article  with  relation  to  banking  in  the  Dutch  West 
Indies:  "  For  the  creation  of  banks  issuing  bank  bills,  institutions  of 
credit,  and  insurance  companies,  concessions  may  be  granted  by  the 
colonial  government  in  ordinance." 

Only  one  bank,  De  Cura^aosche  Bank,  has  been  created  under 
colonial  ordinance  and  is  controlled  by  the  government.  The  article 
quoted  does  not  imply  that  a  bank  can  not  be  created  or  established 
without  concession  granted  by  colonial  ordinance.  "Corporations 
aggregate,"  mercantile  firms,  and  individuals  may  include  banking 
business  in  their  commercial  operations  without  being  subject  to  the 
control  of  the  legislature  or  of  the  executive.  Even  notes  and  coins 
were  issued  by  private  individuals  in  former  years  of  currency  con- 
fusion, but  such  practice  would  undoubtedly  no  longer  be  tolerated 
by  the  government. 


THE  DUTCH  WEST  INDIES. 


439 


Export  duties $14,600 

Pilotage 24, 050 

Contribution  for  pensions 16,000 

Other  sources 73,674 


Total 408,  553 


>» 


Willemstad,  the  port  and  principal  city  of  the  island  of  CuraQao, 
and  also  the  colonial  capital  and  commercial  center,  has  about  14,500 
people.  Land  tax  is  being  paid  on  the  island  on  an  estimated  value 
of  approximately  $3,000,000,  but  the  market  value  is  supposed  to  be 
much  higher.  No  land. tax  is  being  paid  on  government  properties, 
churches,  cemeteries,  schools,  almshouses,  hospitals,  and  similar  build- 
ing if  not  used  for  recreation  purposes. 

The  colony  of  Curasao  is  not  self-supporting;  the  expenditures 
of  the  government  exceed,  the  income  by  about  $270,000  per  annum, 
this  deficit  being  made  up  by  the  Dutch  Government. 

In  the  budget  for  1919  the  income  was  estimated  as  follows  (Cu- 
rasao florins  converted  into  dollars  at  2.50) : 

Import  duties $98,760 

Land    tax 24, 720 

Income    tax 31, 100 

Extra  income  tax 14,000 

Postal   service 11, 400 

Curacao  bank 11,149 

Excise  duties 89, 100 

The  following  are  the  banks  in  the  colony : 

The  Curacao  Bank,  a  government  institution,  established  in  1828. 
The  Savings  Bank  and  Pawnshop  of  Curagao,  a  "  corporation  aggregate, 
established  in  1840. 
The  Curagao  Mortgage  Bank,  a  "  corporation  aggregate,"  established  in  1875. 
The  Postal  Savings  Bank,  a  government  institution,  estabUshed  in  1904. 
Maduro's  Bank,  a  "corporation  aggregate,"  established  in  1916. 
Hollandsche  Bank  voor  West-Indie  (see  below). 

It  is  reported  that  in  the  near  future  a  combination  in  the  Nether- 
lands will  establish  a  bank  at  Curasao  with  branches  in  Dutch 
Guiana  and  in  other  countries. 

The  Curagao  Bank  was  created  to  contribute  to  the  progress  of  the 
colony.  The  bank  has  the  exclusive  right  to  issue  bank  notes.  It 
discounts  promissory  notes  and  bills  of  exchange  which  are  indorsed 
by  at  least  two  responsible  persons;  draws,  purchases,  and  sells 
drafts;  grants  loans  to  promote  agriculture,  industry,  and  the  rais- 
ing of  cattle  (such  loans  to  be  guaranteed  by  good  security^ ;  grants 
loans  guaranteed  by  mortgage  on  real  properties  on  the  island  of 
Curasao  (such  loans  not  to  exceed  60  per  cent  of  the  value  of  the 
property  given  in  the  mortgage) ;  grants  loans  guaranteed  by  prod- 
ucts of  agriculture,  merchandise,  gold,  and  bullion,  for  not  over  three 
months  and  not  exceeding  two-thirds  of  the  value  of  the  security. 

The  bank,  as  agent  of  the  colonial  government,  furnishes  the  money 
required  for  the  expenditures  of  the  government. 

The  rules  provide  that  the  bank  shall  not  participate  in  any  com- 
mercial operations,  industry,  or  other  business,  and  that  it  shall  not 
buy  any  bonds,  goods,  movable  or  immovable,  or  merchandise  if  it  is 
not  to  avoid  losses  on  loans  granted. 

The  administrator  of  finance  in  the  colony  is  the  president  of  the 
bank;  besides,  there  are  four  directors  appointed  by  the  governor. 

The  bank  notes  are  legal  tender  in  the  colony.  The  bank  has  re- 
cently been  authorized  to  issue  up  to  $400,000  in  notes.  The  net 
profit  of  the  bank  is  for  the  colonial  government. 

The  Hollandsche  Bank  voor  West-Indie,  whose  head  office  is  at 
Amsterdam,  opened  a  branch  office  at  Curagao  on  August  11,  1919. 
This  bank  does  a  general  banking  and  exchange  business,  discount- 


440  THE  DUTCH  WEST  INDIES. 

ing  drafts  and  making  advances  on  exports,  etc.  Following  the 
armistice  this  banking  institution  formulated  the  policy  of  establish- 
ing foreign  branch  banks,  a  branch  being  established  in  Surinam, 
Dutch  Guiana,  another  in  Caracas,  Venezuela,  and  still  another  in 
Barranquilla,  Colombia,  with  an  agency  in  Maracaibo,  Venezuela, 
to  take  care  of  the  important  trade  with  the  Maracaibo  Basin,  the 
western  Andean  region  of  Venezela,  and  the  Cucuta  district  of 
Colombia,  all  tributary  to  the  port  of  Maracaibo. 

The  island  6f  Curasao,  of  which  the  port  of  Willemstad  is  the  com- 
mercial and  financial  center,  furnishes  about  70  per  cent  of  the  ex- 
ports of  the  colony  (that  is,  of  all  the  Dutch  West  Indian  Islands) 
and  about  80  per  cent  of  the  imports  are  distributed  there.  During 
and  since  the  war  approximately  75  per  cent  of  all  business  has  been 
with  the  United  States.  New  York  foreign-exchange  quotations  rule 
in  the  Curasao  market,  as  do  New  York  price  quotations  on  articles 
and  products  of  export  from  Curasao. 

THE  PORT  OF  WILLEMSTAD. 

The  chief  asset  of  Curasao  and,  in  fact,  of  the  islands  of  the 
Dutch  West  Indies,  is  the  harbor  of  Willemstad.  Easily  approach- 
able from  the  sea  and  connected  with  the  Inner  Basin,  called  the 
Schottegat  (where  an  entire  fleet  might  lie  at  anchor  in  complete 
protection),  by  a  narrow  but  deep  and  straight  channel,  the  harbor  is 
.  one  of  the  best,  if  not  the  best,  in  the  entire  Caribbean  Sea.  Used 
in  the  old  days  of  the  Spanish  Main  as  a  rendezvous  for  pirate  fleets, 
it  has  long  been  a  port  of  call  and  transshipment,  exports  being  col- 
lected from  Colombia  and  Venezuela  for  forwarding  to  the  United 
States  and  Europe  by  ocean  freight.  During  the  war  Willemstad 
became  an  important  depot  for  coflFee,  cacao,  and  hide  shipments 
from  the  Caribbean  coast  and  Lake  Maracaibo  region  of  Venezuela, 
the  products  being  stored  and  held  here  awaiting  more  favorable 
shipping  and  market  conditions.  Large  profits  in  these  commodities 
were  made  during  1919  and  the  first  half  of  1920.  Shipments  were 
again  pouring  into  Willemstad  during  the  fall  and  winter  of  1920-21, 
and  every  warehouse  was  being  filled  with  coffee,  hides  and  skins, 
cacao,  and  divi-divi,  which  were  stored  for  better  prices,  following 
the  decline  in  the  market  late  in  1920. 

The  Bed  "  D  "  Line  of  steamers  from  New  York  make  Willemstad 
the  headquarters  for  transshipment  to  and  from  Maracaibo  in  Vene- 
zuela, and  the  Royal  Dutch  Mail  Line  maintains  a  small  steamer 
here  which  plies  between  the  port  and  Maracaibo,  handling  cargo  for 
transshipment,  as  there  is  only  12  feet  of  water  over  the  bar  at  the 
entrance  to  the  channel  leading  to  Lake  Maracaibo. 

After  steamer  traffic  was  renewed  following  the  war,  Curagao 
again  became  a  port  of  call  and  coaling  station  for  all  Dutch  vessels 
and  for  steamers  of  the  Italian  and  Spanish  lines  which  make  the 
Caribbean  run  regularly. 

Since  the  erection  of  the  Royal  Dutch  Shell  petroleum  refinery, 
the  port  is  now  one  of  call  for  fuel  oil — Dutch,  French.  Danish,  Nor- 
wegian, American,  and  British  steamers  putting  in  lor  fuel.  The 
Standard  Oil  Co.  has  recently  established  a  fuel-oil  supply  station 
for  ocean  vessels.  On  account  of  the  shallow  entrance  to  Lake 
Maracaibo,  near  the  shore  of  which  the  Venezuelan  oil  wells  are 


THE  DUTCH  WEST  INDIES. 


441 


located,  and  the  good  protected  harbor  and  abundance  of  cheap  and 
efficient  labor  at  Curagao,  the  port  was  selected  as  the  site  for  the 
large  refinery  of  the  Dutch  Shell  Group.  For  the  same  reasons,  an 
American  company  has  been  interested  in  a  plan  to  establish  here 
large  storage  facilities  for  molasses,  to  be  brought  over  in  small 
vessels  from  Venezuela. 

One  of  the  most  important  industries  is  that  of  the  schooner 
trade.  Small  wooden  schooners  are  built  at  Willemstad,  the  lumber 
being  imported  from  the  United  States,  as  well  as  all  other  fittings 
and  materials  for  shipbuilding.  Nearly  100  of  these  schooners  call 
Curasao  their  home  port  and  are  seen  in  every  port  of  the  Caribbean. 
During  the  war  this  trade  was  very  prosperous,  because  of  the  short- 
age of  ocean  tonnage  and  the  demand  for  transshipment  of  cargoes 
of  coffee,  hides,  etc.,  from  Venezuela  and  Colombia.  During  1917 
the  Curagao  Trading  Co.  launched  a  300-ton  schooner  and  Maduro  & 
Sons  started  the  construction  of  a  700-ton  vessel,  the  largest  yet  at- 
tempted on  the  island.  In  1921,  another  similar  schooner  was  com- 
pleted for  the  same  firm  to  be  operated  in  the  Maracaibo  trade. 
These  wooden  vessels  are  well  built,  well  designed  and  rigged,  well 
kepjt  up.  and  handled  in  a  very  expert  manner.  It  was  noted  by  the 
writer,  nowever,  that  the  carpenters  placed  the  butts  of  all  planking 
on  the  frames  instead  of  breaking  the  joints  between  the  frames 
and  using  a  butt-strap  inside  between  frames. 

Schooners  are  built  on  order  for  Cuba,  Porto  Rico,  Colombia, 
Venezuela,  and  other  Caribbean  ports.  There  are  no  statistics  to 
show  the  extent  and  value  of  the  shipbuilding  industry,  but  several 
hundred  men  are  constantly  employed  in  building  and  repairing 
small  wooden  vessels.  About  three  small  schooners  are  built  each 
year  on  the  island  of  Bonaire,  the  materials  being  usually  imported 
through  Curagao. 

Since  the  island  does  not  produce  sufficient  foodstuffs  to  support 
the  population,  the  people  are  dependent  upon  the  shipping  trade, 
the  new  oil  refinery,  and  emigration  to  Cuba  for  the  sugar  season. 

A  comprehensive  account  of  the  port  of  Willemstad,  covering  19 
manuscript  pages  and  giving  full  details  of  the  harbor,  pilotage, 
coaling  and  bunkering,  stevedoring,  piers,  docks  and  warehouses, 
steamer  schedules,  and  other  commercial  and  merchant-marine 
data,  has  been  submitted  in  connection  with  this  report  and  will  be 
loaned  to  interested  persons  who  applv  to  the  Bureau  of  Foreign 
and  Domestic  Commerce,  mentioning  file  No.  46318. 

INDUSTRIES  AND  RESOURCES. 

l.rVE  STOCK. 

The  following  statement  gives  the  stock  of  cattle  in  the  Dutch  West 
Indies  in  1918 : 


Islands. 

Horses. 

Asses. 

Mules. 

Cattle. 

Goats. 

Sheep. 

Swine. 

Cura^^o 

321 
81 
67 

125 
59 
14 

2,215 
866 
800 

3 
213 

1 

91 
31 
15 
13 
35 

1,400 

64 

65 

847 

441 

146 

25,065 
5,285 

14,980 
175 
252 
417 

7,075 

2,616 

1,677 

282 

107 

182 

1,412 

Aruba 

1,563 

Bonaire 

292 

St.  Martin 

152 

St.  Eustatins 

239 

Saba 

267 

Total 

667 

4,088 

185 

2,963 

46,174 

11,938 

8,926 

442  THE  DUTCH  WEST  INDIES. 

Beef  cattle  for  local  consumption,  as  well  as  quantities  of  lard, 
are  imported  from  Coro  in  Venezuela. 

FISHING. 

Aruba  and  Bonaire  export  fish  to  Curasao  for  local  consumption. 
The  export  of  dried  fish  to  foreign  countries  is  of  little  or  no  im- 
portance. 

SALT  INDUSTRY. 

Curagao,  Aruba,  Bonaire,  and  St.  Martin  produce  considerable 
quantities  of  salt,  which  is  exported.  The  other  Windward  Islands 
(Saba  and  St.  Eustatius)  do  not  produce  any  salt.  The  estimated 
annual  production  of  the  Leeward  Islands  is  as  follows:  Curasao, 
100,000  barrels  (of  3^  bushels  per  barrel);  Aruba,  6,000  barrels; 
Bonaire,  100,000  barrels. 

The  salt  is  produced  by  means  of  evaporation  by  the  heat  of  the 
sun  in  open  salt  pans  formed  in  natural  overflow  places  along  the 
sea  and  shallow  lagoons.  None  of  the  estates  are  gathering  salt  to 
full  capacity  at  present  because  of  the  low  prices  offered.  The  oppor- 
tunities to  market  the  product  at  a  reasonable  price  are  not  many  in 
normal  times.  Formerly  $1  or  even  more  has  been  received  per  oar- 
rel  of  salt,  but  not  very  long  ago  20  cents  was  the  average  price  re- 
ceived. Competition  with  the  Colombian  and  Venezuelan  coast  pro- 
ducers is  felt. 

PANAMA-HAT  INDUSTRY. 

One  of  the  principal  industries  of  the  islands  is  the  manufacture  of 
an  imitation  Panama  hat,  the  "  soyate  "  palm  being  imported  from 
Venezuela  and  Colombia  and  the  weaving  being  done  by  hand  in 
the  homes  of  the  people  by  women  and  children.  The  government 
and  private  institutions  have  schools  to  teach  hat  weaving.  The 
price  of  the  staple  hat  is  about  $1.20  per  dozen,  and  the  annual  pro- 
duction approximately  130,000  dozens.  In  1918  the  value  of  the 
hats  exported  to  the  United  States  amounted  to  $164,150.  Prior  to 
the  war  the  output  found  a  ready  market  in  England,  but  this  mar- 
ket was  closed  after  1914.  The  product  soon  found  a  market  in  the 
United  States,  and  exporters  state  that  they  can  not  get  enough  hats 
to  fill  the  demand. 

"CURACAO"  LIQUEUR. 

The  famous  "  Curasao  "  orange  is  cultivated  on  the  island,  the  tree 
and  fruit  both  being  very  small.  The  peel  is  prepared  for  export  to 
the  Netherlands  for  the  manufacture  of  the  "Curasao  "  liqueur.  One 
firm  in  Willemstad  also  engages  in  its  manufacture,  making  a  spe- 
cialty of  this  product  and  importing  from  Porto  Eico  and  Venezuela 
the  rum  and  sugar  that  enter  into  the  ingredients.  At  that  stage  of 
development  of  the  fruit  when  the  rind  contains  its  maximum  quan- 
tity of  oil  the  fruit  is  picked  and  cut  into  quarters;  these  quarters 
are  then  dried  and  pressed  into  half-barrels  for  shipment  to  the 
Netherlands,  where  the  material  passes  through  the  distillation  proc- 
ess for  the  manufacture  of  the  liqueur. 

MINING  AND  MINERALS. 

Mines  of  rock  phosphate  are  located  at  Santa  Barbara  and  are 
operated  by  a  British  company,  which  was  forced  to  curtail  its 


THE  DUTCH  WEST  INDIES.  443 

output  during  the  war  on  account  of  the  shortage  of  ocean  tonnage 
but  is  now  exporting  its  normal  production  of  about  6,000  tons  per 
month  to  the  British  market. 

Curasao  has  a  very  rich  phosphate  mine  lying  at  the  seaside  in  a 
baj  accessible  to  ve^ls  of  large  tonna^.  The  mine  is  said  to  con- 
tain a  large  deposit  of  high-grade  material,  but  dissension  among  the 
stockholders  and  the  difficulties  of  shipment  during  the  war  handi- 
capped development.  The  company  is  now  preparing  to  make  ship- 
ments. 

Saba  has  sulphur  mines,  but  these  are  lying  idle,  possibly  because 
there  is  no  moorage  for  vessels  on  the  island. 

Aruba  has  gold  and  phosphate  mines.  British  companies  tried  to 
work  the  gold  mine^  but  they  never  paid,  and  a  local  company  is 
now  operating,  although,  through  lack  of  the  necessary  materials  for 
extraction,  the  work  had  to  be  suspended  during  the  war.  Some 
years  ago  the  Aruba  Phosphate  Co.  was  dissolved.  It  is  said  that 
phosphates  are  still  available  in  paying  quantities,  but  not  of  high- 
grade  material. 

The  emigration  of  labor  to  Cuba  during  the  period  of  high  sugar 
prices  has  crippled  development  in  mining  on  the  islands. 

AGRICULTURE. 

The  agricultural  resources  of  the  islands  are  not  large;  Shallow 
top  soil  is  found  only  in  spots,  and  the  lack  of  sufficient  rain  and  the 
protracted  seasons  of  drought  cause  prospects  to  be  very  unfavorable 
for  agricultural  development.  Corn  is  produced,  but  not  in  sufficient 
quantity  to  meet  the  demands  of  the  population  of  the  islands,  and 
large  cargoes  have  to  be  imported  from  Venezuela.  Other  foodstuffs, 
such  as  flour,  etc.,  are  imported  from  the  United  States.  Schooners 
returning  from  Venezuela  and  Colombian  coast  ports  bring  in  ba- 
nanas, plantains,  coconuts,  potatoes,  casaba,  beef  cattle,  and  lard. 

Of  the  Windward  Islands,  St.  Martin  and  St.  Eustatius  export 
annually  about  $5,000  and  $10,000  worth  of  cotton,  respectively.  On 
the  Leeward  Islands  experiments  are  being  made  with  sisal  and  coco- 
nuts.   Motor  plows  have  recently  been  introduced. 

Divi-divi,  the  pod  of  which  contains  a  high  percentage  of  tannin, 
and  aloes,  used  for  medicinal  purposes,  are  grown  on  the  islands,  but 
no  attempt  has  been  made  at  cultivation  of  these  plants  on  any  large 
scale,  though  the  aloes  fields  (natural  plantations)  are  regularly 
worked  in  the  season.    The  production  of  these  articles  is  small. 

The  year  1914  was  a  very  unfavorable  one,  particularly  for  the 
Windward  Islands.  The  harvests  were  total  failures  and  the  people 
entirely  dependent  upon  imports  of  foodstuffs.  Aruba,  Bonaire,  and 
the  outlying  rYistricts  of  Curasao  also  suffered  and  work  was  scarce 
on  account  of  the  curtailment  of  shipping.  Manv  of  the  Aruba  work- 
men formerly  found  employment  in  the  banana  fields  of  Santa  Marta, 
Colombia,  but  cutting  was  partially  suspended  during  the  war,  on 
account  of  the  lack  of  tonnage  for  transportation  of  the  fruit  to 
market.  The  Netherlands  assisted  with  contributions  in  money,  and 
the  colonialgovernment  issued  foodstuffs  to  the  needy  to  relieve  the 
situation.  The  year  1915  was  also  bad  on  account  of  the  protracted 
drought,  but  conditions  were  better  in  1916  and  have  since  improved. 
The  erection  of  the  oil  refinery  at  Willemstad,  the  stimulus  given 


444  THE  DUTCH  WEST  INDIES. 

shipbuilding  during  the  war,  and  the  high  wages  secured  in  the 
Cuban  cane  fields  were  of  great  benefit  to  the  colony.  Often  there  is 
not  enough  water  for  live  stock  when  dry  seasons  aie  prolonged. 

MARKETS  FOR  SPECIFIC  CLASSES  OF  MERCHANDISE. 

AMERICAN  FLOUB.  COBN  MEAL.  AND  LARD. 

Prior  to  the  war  flour  was  imported  exclusively  from  the  United 
States,  but  during  the  latter  part  of  1917  it  was  necessary  to  import 
some  irom  Colombia  and  from  Chile,  and  arrangements  were  made 
for  supplies  from  Argentina.  Imports  of  flour  from  the  United 
States  that  year  were  500,000  pounds  less  than  in  1916,  but  the  value 
was  $51,000  greater.  Corn  meal,  which  is  the  staple  food  of  the 
people  of  the  colony,  was  alwavs  imported  from  the  United  States 
prior  to  1917.  In  that  year  only  about  3,375,000  pounds  came  from 
the  United  States,  though  the  normal  annual  import  and  consumption 
is  about  7,200,000  pounds.  The  difficulty  encountered  in  securing 
sufficient  meal  from  the  United  States  and  other  countries  made  it 
necessary  to  import  small  mills  with  which  to  grind  corn  purchased 
in  Venezuela  and  Colombia.  Imports  of  com  rose  from  13,000 
bushels  in  1913,  of  which  about  half  came  from  the  United  States,  to 
81,000  bushels  in  1917,  and  the  amount  has  since  increased,  coming 
almost  entirely  from  Venezuela. 

Lard  formerly  came  almost  exclusively  from  the  United  States. 
Difficulty  in  securing  supplies  caused  the  amounts  imported  to  fall 
from  294,663  pounds  in  1913  to  172,339  pounds  in  1917,  the  supply 
being  made  up  from  Venezuela  and  Colombia,  two  countries  which 
also  formerly  imported  lard  from  the  United  States,  but  which  now 
have  sufficient  for  domestic  demands  and  for  small  exports  to  the  West 
Indies  and  Panama.  Butter,  oleomargarine,  and  cheese  imports  from 
the  United  States  are  increasing,  and  the  goods  are  competing  favor- 
ably with  the  European  articles  formerly  most  used. 

MEATS.  CANNED  GOODS.  ETC 

Salt  meat,  pork  heads,  codfish,  hams  and  bacon,  etc.,  suffered 
during  the  war  on  account  of  the  lack  of  sufficient  supply.  Normal 
imports  amount  to  120,000  pounds  of  salt  meat,  210,000  pounds  of 
pork  heads,  and  115,000  pounds  of  codfish. 

European  canned  goods  were  used  exclusively  before  the  war,  and 
American  canned  foods  were  substituted  with  great  hesitation  when 
they  had  to  be  imported  on  account  of  inability  to  secure  the  usual 
supply  from  Europe,  especially  from  France  and  Holland.  Pre- 
viously only  the  cheaper  grades  of  American  canned  goods  were 
known,  and  it  was  the  common  impression  that  all  American  tinned 
products  were  of  poor  quality.  The  enforced  use  of  the  American 
product  during  the  war  has  corrected  this  impression,  and  Curagao 
is  now  a  good  market  for  American  goods  of  this  class. 

The  colony  uses  about  800,000  pounds  of  potatoes  annually,  300,000 
pounds  of  onions,  and  about  225,00Q  pounds  of  rice.  Some  rice  is 
now  being  brought  over  from  Venezuela.  About  33,000  gallons  of 
beer  is  sold,  now  coming  almost  entirely  from  the  Netherlands.  The 
wine  consumption  is  about  8,500  gallons. 


THE  DUTCH  WEST  INDIES.  445 

MANUFACTURED  GOODS.  DRUGS,  AND  CHBBnCALS. 

The  total  imports  of  manufactured  goods  (not  including  those 
of  iron  or  steel)  into  the  colony  fell  from  $240,000  in  1916  to  $200,000 
in  1917,  but  the  imports  from  the  United  States  decreased  only  by 
$4,000.  Owing  to  the  higher  prices  and  the  limited  buying  power 
of  the  people,  adversely  affected  by  crop  and  industrial  conditions, 
the  total  quantity  of  manufactured  products  fell  off  considerably 
until  1919,  although  the  total  value  was  about  the  same.  Ameri- 
can cotton  prints,  notions,  fancy  goods,  etc.,  are  some  of  the  lines 
that  have  replaced  European  goods  in  this  market,  and  it  is  believed 
that  they  will  continue  to  be  acceptable  during  post-war  competi- 
tion. 

Drugs  and  chemicals  came  from  Germany  and  the  Netherlands 
before  the  war,  but  now  come  exclusively  from  the  United  States. 
Although  there  is  general  satisfaction  with  the  quality  and  price 
of  American  goods  in  this  line,  physicians  in  Curasao  seem  to  pre- 
fer European  drugs,  and  the  indication  is  that  local  drue  and  medi- 
cine importers  may  return  to  European  markets  eventually. 

BUILDING  BfATERIALS— BfACHINERT. 

Lumber,  cement,  and  other  building  materials  are  imported  from 
the  United  States,  with  the  exception  of  brick  and  tiling,  which 
come  from  the  Netherlands.  Some  tiling  for  flooring  is  now  manu- 
factured locally.  Imports  of  cement  are  steadily  increasing,  and 
the  Government  plans  the  erection  of  a  new  customhouse,  post  office, 
and  other  buildings  in  which  considerable  material  will  be  used. 
English  and  Swedish  cement  is  now  a  strong  competitor  in  this 
marketj  the  trade  being  divided  about  evenly,  at  present,  although 
prices  of  Swedish  cement  are  lower  than  those  of  the  American 
product. 

The  value  of  machinery  imports  reached  $300,000  in  1916  and  1917, 
but  fell  to  $173,000  in  1919,  of  which  $145,000  worth  came  from  the 
United  States.  All  the  machinery  and  materials  used  in  the  con- 
struction of  the  oil  refinery  came  from  the  United  States.  There  is 
a  limited  market  for  pumping  machinery,  gasoline  engines,  motor- 
boat  engines,  and  agricultural  implements. 

'   MOTOR  VEHICLES. 

The  excellent  roads  of  Curagao  attract  automobiles  to  the  island, 
and  particularly  to  the  capital,  Willemstad,  where  a  third  of  the 
population  is  located.  The  low  rainfall  and  the  nature  of  the  hard 
soil  make  roads  easy  to  construct  and  maintain,  and  the  entire  island 
can  be  coyered  by  automobile.  The  white  population  of  Curasao 
numbers  only  about  2,000  people,  living  chiefly  in  Willemstad.  In 
May,  1917,  there  were  140  cars  in  the  city,  making  1  for  every  14 
persons  of  the  white  population.  Importations  since  that  time  are 
shown  below.  The  motor  cars  most  in  demand  in  Curasao  are  the 
low  and  medium  priced  models  of  American  make.  There  are  no 
European  cars  on  the  island.  Comparatively  few  motor  trucks  are 
used,  as  the  products  of  the  interior  are  very  scant  and  all  the  ware- 
houses and  stores  either  front  on  the  wharves  or  are  located  within 
a  block  or  two  of  the  water  front,  at  most. 


446 


THE  DUTCH  WEST  IKDIBS. 


The  following  table  shows  the  exports  of  motor  vehicles,  parts, 
and  tires  from  the  United  States  to  the  Dutch  West  Indies : 


Yeara. 


Fiscal  year  1913-14. 
Fiscal  year  1916-17. 
Fiscal  year  1917-18. 
Calendar  year  1919. 
Calendar  year  1920. 


Commercial 
cars. 


Num- 
ber. 


1 
2 


3 
18 


Valae. 


$695 
2,095 


3,095 
8,542 


Passenger 
cars. 


Num- 
ber. 


13 
32 
12 
13 
69 


Value. 


$9,605 

19,191 

7,345 

7,369 

67,376 


Parts. 


$2,754 
6,052 
4,707 
5,435 
8,913 


Tires. 


$746 

7,386 

9,034 

10,390 

23,321 


Motor  cycles. 


Num- 
ber. 


1 
2 
3 
1 
1 


Value. 


$160 
368 
904 
300 
387 


Total 
value. 


$13,850 
35,0»2 
22,080 
26,589 

108,539 


In  January,  1921,  a  new  company  established  a  motor-bus  service, 
using  four  American  trucks  of  a  well-known  make,  equipped  as  pas- 
senger busses.  Only  the  eastern  portion  of  the  city  is  served,  because 
the  heavy  vehicles  can  not  cross  the  swinging  boat  bridge  which  con- 
nects the  two  parts  of  the  town  divided  by  tne  harbor  channel.  The 
service  was  immediately  popular,  as  providing  a  rapid  ^nd  cheap 
means  of  transportation  for  the  residential  section  and  the  suburbs. 

There  are  about  30  American  cars  operated  for  hire  in  Willemstad, 
the  rates  being  7  florins  ($2.80)  per  hour.  These  cars  afford  a  means 
of  rapid  transit  in  and  about  the  city,  and  many  beautiful  trips  can 
be  taken  to  the  outlying  beaches,  old  forts,  and  farms,  including  the 
ostrich  farm,  one  of  the  sights  of  Curagao.  The  trip  around  the  inner 
harbor  is  well  worth  while. 


PETROLEUM. 

As  early  as  1914  it  was  thought  that  the  development  of  petroleum 
in  Venezuela  would  produce  in  time  an  increase  in  the  business  of 
Curagao.  The  producing  fields  are  located  near  the  shores  of  Lake 
Maracaibo  in  Venezuela,  the  greater  part  of  this  oil  would  have  to 
find  its  way  out  of  the  country  by  way  of  Maracaibo,  and,  as  that 
port  is  inaccessible  to  vessels  of  more  than  12-foot  draft,  the  excellent 
harbor  at  Curagao  became  the  most  logical  place  foe  refining  and 
transshipment.  Another  factor  considered  was  the  convenience  of  the 
harbor  for  fueling  ocean  vessels  plying  in  the  Caribbean  trade. 

By  the  end  of  1917  the  plant  of  the  Curagao  Petroleum  Co.  belong- 
ing to  the  British  group  of  the  Royal  Dutch  shell  interests,  was  about 
completed  and  refining  had  commenced  with  supplies  of  crude  oil 
from  the  Maracaibo  field  of  the  Caribbean  Petroleum  Co.  and  from 
the  Tampico  fields  of  Mexico.  Thus  far  about  $2,000,000  has  been 
spent  on  this  refinery,  American  skilled  labor  being  employed  in  its 
erection  and  practically  all  of  the  machinery  and  materials  used  in 
construction  coming  from  the  United  States.  About  1,100  native 
laborers  have  been  stea.dily  employed  since  1914  on  the  project,  the 
operating  force  now  being  reduced  to  600  men.  Two  tihousand  tons 
of  crude  petroleum  are  refined  in  24  hours,  a  20  per  cent  extraction 
being  obtained  from  the  heavy  Venezuelan  crude  oils  used. 

The  plant  is  located  in  the  Schottegat.  or  Inner  Basin  of  the  har- 
bor, about  2  miles  from  Willemstad^  tne  location  being  a  sort  of 


THE  DUTCH  WEST  INDIES.  447 

peninsula  of  the  mainland,  with  excellent  deep-water  wharf  space 
and  mooring  around  around  practically  three  sides  of  the  plant. 

Four  British  monitors  used  along  the  coast  of  Belgium  during  the 
war  have  been  converted  into  shallow-draft  tankers  and  plv  between 
the  refinery  and  San  Lorenzo  on  the  eastern  shore  of  Lake  Maracaibo 
with  crude  oil  from  the  wells  of  the  Caribbean  Petroleum  Co.,  the 
refining  company  controUing^the  export  product  of  the  producing 
company.  The  Caribbean  jPetroleum  Cfo.  also  operates  several 
wooden  barges  in  this  traflBc,  and  supplies  of  crude  and  refined  petro- 
leum are  sent  along  the  Venezuelan  coast  to  Puerto  Cabello  and  La 
Guaira. 

Steamers  prefer  to  take  their  supply  of  fuel  oil  at  Willemstad  from 
the  refinery  (because  special  grades  and  gravities  can  be  obtained 
there)  ^  instead  of  fueling  at  the  two  Venezuelan  ports  mentioned. 

Dunng  the  war  the  refining  company  was  handicapped  in  its  op- 
erations on  account  of  its  inabilitjr  to  ootain  means  of  transportation 
for  the  needed  supplies  of  crude  oil  from  the  Venezuelan  wells.  Ma- 
chinery for  the  manufacture  of  tin  cans  for  gasoline  and  kerosene 
arrived  from  the  United  States  in  the  early  part  of  1920,  and  the 
plant  has  been  producinff  5,000  five-gallon  cans  daily.  Supplies  are 
sent  to  all  the  West  Indian  ports  and  to  the  north  coast  of  South 
America,  as  well  as  to  Jbiurope — principally  to  England  and  the 
Netherlands.  A  steadily  increasing  number  of  vessels  call  at  the  port 
for  fuel  oil.  The  Standard  Oil  Uo.  has  recently  completed  a  tank 
station  iust  inside  of  the  entrance  to  the  Inner  Harbor  for  the  purpose 
of  supplying  fuel  oil  to  steamers  on  the  Caribbean  run.  A  new  wharf 
is  being  constructed  by  Maduro  &  Sons  for  the  company,  to  facilitate 
the  handling  of  vessels  at  the  two  large  tanks. 

Up  to  the  end  of  the  first  six  months  of  1920  the  wells  of  the  Carib- 
bean Petroleum  Co.  at  San  Lorenzo  had  produced  a  total  of  approxi- 
mately 163,000  metric  tons  of  crude  oil,  most  of  which  went  to 
Curagao. 

A  number  of  additional  oil  areas  are  being  prospected  and  drilled 
in  Venezuela  by  British  and  American  companies.  Petroleum  devel- 
opment is  also  going  forward  in  Colombia  in  several  sections,  and  it 
may  be  predicted  that,  in  the  course  of  a  year  or  two,  pipe  lines  will 
be  constructed  directly  to  the  coast,  thus  avoiding  the  difficulty  of  the 
shallow  entrance  to  Lake  Maracaibo. 

COMMERCIAL  SIGNIFICANCE  OF  CURACAO. 

The  commercial  importance  of  the  harbor  of  Willemstad  has  long 
been  recognized  by  the  Dutch  authorities.  In  1914  funds  were  as- 
sured for  improvement  work,  which  resulted  in  the  dredging  of  the 
entrance  channel  and  in  the  deepening  of  the  water  front  alonff  the 
inner  channel  which  leads  to  the  Scnottegat.  In  1916  the  Dutch 
Minister  of  Colonies  made  a  strong  recommendation  before  the 
Dutch  Parliament  for  the  equipment  of  the  harbor  as  a  world  port 
in  anticipation  of  after-the-war  commercial  movement  of  shipping. 
One  hundred  thousand  dollars  was  secured  for  the  improvement  of 
the  harbor  on  Aruba  Island,  and  engineers  were  sent  out  to  make 
complete  surveys,  plans,  and  estimates  of  the  contemplated  improve- 
ments.   The  wireless  station  was  enlarged  and  equipped  for  long-dis- 


448  THE  DtJTGH  WEST  INDIES. 

tance  work,  although  it  can  not  be  used  for  commercial  messages  on 
account  of  the  excmsive  concession  of  the  French  Cable  Co.,  which 
connects  with  Caracas,  in  Venezuela,  via  La  Guaira  and  the  West 
Indies  at  Martinique  and  thence  to  American  and  European  points. 

The  colonial  government  is  favorably  disposed  toward  develop- 
ment and  commercial  projects,  as  the  greater  number  of  the  people 
depend  upon  the  activities  of  the  port  for  their  living.  Taxes  are 
very  low,  and  goods  for  transshipment  pay  no  import  duty  or  other 
charges.    All  port  dues  are  made  as  small  as  possible.     * 

The  harbor  frontage  in  the  channel  is  owned  by  the  colonial  gov- 
ernment, the  Curasao  Trading  Co.,  and  S.  E.  L.  Maduro  &  Sons.  The 
best  frontage  in  the  Inner  Harbor  is  owned  by  the  Curasao  Trading 
Co., 'S.  E.  L.  Maduro  &  Sons,  and  the  Curasao  Petroleum  Co.  (Ba- 
taaf sche  Petroleum  Maatschappij ) .  There  is  an  island  in  the  Inner 
Harbor  owned  by  the  Maal  family,  which  has  deep  water  at  one  end 
suitable  for  wharfs,  landings,  or  storage-tank  space.  Since  the  erec- 
tion of  the  refinery  all  water-front  property  has  increased  greatly  in 
value. 

The  Windward  Islands  of  Saba,  St.  Martin  (southern  half),  and 
St.  Eustatius  are  unimportant  commercially  and  do  their  trading 
with  the  neighboring  islands. 

Curagao  and  the  port  of  Willemstad  form  the  commercial  center 
of  the  Leeward  Group,  comprising  Curagao,  Bonaire,  and  Aruba, 
the  last  two  islands  buving  all  supplies  in  Willemstad.  Here  are 
located  all  the  stores  oi  the  importers,  the  warehouses,  banks,  etc., 
as  well  as  the  residences  of  the  white  population  of  the  colony, 
numbering  2,000  persons.  The  population  of  Willemstad  is  about 
15,000. 

Located  on  the  southern  side  of  the  island  some  16  miles  to  the 
west  of  Point  Cannon,  the  town  is  situated  on  both  sides  of  St. 
Anna  Bay  (as  the  entrance  channel  to  the  inner  harbor  is  called) 
and  fronts  on  the  ocean  on  either  side.  The  channel  runs  directly 
inland,  in  direction  almost  north  and  south,  the  length  being  ap- 

?roximately  1  mile,  and  opens  out  into  the  Schottegat,  or  Inner  Bay. 
he  channel  is  about  700  feet  wide  and  has  30  feet  of  water  at  keel 
width  along  all  of  the  wharves.  It  is  navigable  for  the  largest 
steamers,  vessels  of  over  12,000  tons  running  up  into  the  Schottegat 
with  ease  and  safety.  The  surrounding  country  is  fairly  level,  with 
high  hills  in  groups  to  the  east  toward  Santa  Barbara,  where  the 
phosphate  mines  are  located.  Ancient  forts  protect  both  sides  of 
the  entrance  from  the  sea.  About  9  miles  to  the  east  is  Caracas  Bay, 
the  site  of  the  old  quarantine  station  and  an  old  Spanish  fort  with 
round  tower,  underground  passages,  etc.  The  bathing  beach  here 
is  one  of  the  best  oh  the  island  and  the  location  is  extremely  pic- 
turesque, abounding  in  great  rocks,  etc.,  of  volcanic  formation.  The 
site  has  been  spoken  of  as  a  location  for  a  winter  resort  hotel. 

Two  or  three  story  buildings  line  the  waterfront  of  the  channel, 
the  material  being  that  used  in  all  Spanish-American  countries  and 
the  construction  similar,  with  the  exception  that  the  peaked  Dutch 
roof  with  steps  has  been  added  instead  of  the  flat  roof  such  as  is 
usually  found  in  Latin  America.  The  commercial  part  of  the  town 
is  located  on  the  eastern  side  of  the  channel  called  Pundo,  the  western 
side  being  known  as  Otrabanda,  mainly  devoted  to  hotels  and  resi- 
dences and  a  few  small  retail  stores.  The  suburbs  of  Pundo  are 
called  Pietenuftai  and  extend  along  the  coast  to  the  east.    Just  inland 


THE  DUTCH   WEST  INDIES.  449 

is  a  shallow  bav  which  serves  as  a  harbor  for  small  schooners  and 
boats  and  is  called  the  Waaigat.  Besidences  continue  to  the  north 
of  the  Waaigat,  And  the  waterfront  is  lined  with  wharves  and  ware- 
houses. In  all,  the  city  presents  an  extremely  interesting  and  at- 
tractive appeaj-ance,  and  to  say  the  least,  a  very  novel  one,  combin- 
ing, as  it  does,  much  of  Holland  with  a  strange  admixture  of  Latin 
America. 

It  is  a  meeting  place  for  commercial  travelers  journeying  between 
the  mainland  of  Colombia  and  Venezuela  and  the  West  In(fies.  The 
port  is  a  clearing  house  of  commercial  information  and  gossip  of 
the  Tromcs,  from  Cuba,  Panama,  Colombia,  Venezuela,  and  as  far 
east  as  Trididad.  The  Bed  "  D "  Line  of  steamers  touch  here  to 
and  from  New  York  and  Maracaibo  and  other  Venezuelan  ports. 
Nearly  all  European  steamers  touch  for  coal,  fuel  oil,  or  for  freight 
and  passengers  to  and  from  Colon.  It  is  a  port  of  transshipment 
and  steamer  connections.  Hotel  accommodations  are  good — ^better, 
in  fact,  than  on  most  of  the  mainland — and  are  being  rapidly  im- 
proved to  meet  the  increasing  demand  for  better  quarters  and  service. 

Because  of  the  proximity  of  the  Colombian  and  Venezuelan  coast 
and  the  well-organized  commercial  houses  of  Curagao,  there  exist 
both  the  opportunity  and  the  desire  for  trade ;  but  the  30  per  cent 
surtax  placed  by  the  Venezuelan  Government  on  imports  from  the 
West  Indies  (aimed  principally  at  Curasao,  Trinidad,  and  Porto 
Rico,  but  more  especially  at  Curagao,  because  it  is  a  free  port), 
prevent  the  merchants  from  extending  their  wholesale  trade  to  Vene- 
zuela on  a  large  scale,  despite  the  fact  that  the  greater  part  of 
Venezuela's  export  products  from  the  western  part  of  the  country 
tributary  to  the  Maracaibo  Basin  are  transshipped  at  Willemstad. 

EXTENT  AND  CHARACTER  OF  TRADE. 

The  merchants  of  Willemstad  are  mostly  Jews  of  Portuguese  and 
Spanish  extraction,  descendants  of  the  traders  who  settled  there  in 
Spanish  colonial  times.  While  competing  among  themselves,  they 
are  all  interrelated  by  marriage  ana  closely  connected  by  partner- 
ships and  form  a  compact  and  conservative  commercial  unit.  This 
fact  should  be  borne  m  mind  by  American  travelers  representing 
American  export  houses  when  dealing  with  Curasao  importers. 

There  are  31  importing  firms  in  Willemstad.  of  which  about  12  are 
large,  operating  on  a  capital  of  $160,000  to  $200,000.  Jobbers  and 
wholesalers  as  we  know  them  in  the  United  States  are  unknown  in 
Curasao,  although  there  are  several  native  resident  manufacturers' 
agents  representing  important  manufacturers  and  export  commission 
houses  of  the  United  States  and  taking  care  of  the  local  business  to 
a  very  considerable  extent. 

Merchants  are  both  retailers  and  wholesalers  and  import  their  own 
stocks  either  through  export  commission  houses  in  Europe  and  the 
United  States,  or,  to  a  lesser  extent,  directly  from  manufacturers, 
especially  from  those  who  maintain  foreign  sales  departments  and 
periodically  cover  the  Caribbean  territorv  with  salesmen.  As  else- 
where in  Latin  America,  cotton  textiles  lorm  the  largest  portion  of 
the  purchases  of  merchandise,  constituting  about  60  per  cent  of  the 
total. 

79747^—22 30 


450  THE  DUTCH  WEST  INDIES. 

The  stores  are  well  lighted;  goods  are  attractively  displayed; 
stocks,  while  not  so  large  as  in  Caracas,  Bogota,  or  Barranquilla.  are 
much  more  extensive  as  regards  selection  of  articles  and  merchan- 
dise; the  quality  averages  higher;  and  the  clothing,  dry  goods,  and 
dress  goods  assortment  is  better.  More  attention  is  paid  to  the 
strictly  retail  trade,  which  is  the  largest  item  with  the  importers  of 
Curagao,  than  to  the  wholesale  trade.  Excellent  stocks  of  the  best 
American  merchandise  are  kept  on  hand  and  frequently  renewed. 
The  average  traveler  can  purchase  many  articles  here  that  are  lack- 
ing in  the  stores  of  Venezuela  and  Colombia.  People  from  the  main- 
land, seeking  steamer  connections  here  for  the  West  Indies,  Panama, 
Trinidad,  or  Caracas  do  considerable  shopping  and  outfitting  here, 
ladies  especially  looking  upon  Willemstad  as  an  emporium  :for  dry 
goods,  silks,  dress  goods,  etc. 

Before  the  war,  in  1913,  the  United  States  supplied  a  fraction  less 
than  47  per  cent  of  the  total  imports  of  merchandise  and  manufac- 
tured articles,  the  rest  coming  principally  from  Germany,  the  Neth- 
erlands, France,  England,  and  Spain.  In  1914  the  United  States 
furnished  a  fraction  over  63  per  cent  of  all  imports,  the  imports 
from  the  United  States  increasing  by  $97,000  in  value,  while  those 
from  European  countries  fell  off  materially.  The  following  articles 
were  not  furnished  to  any  appreciable  extent  by  the  United  States 
prior  to  the  war:  Butter,  cheese,  candies  and  chocolates,  candles, 
canned  goods,  cigars  and  cigarettes,  clothing  (ready-made),  drugs 
and  chemicals,  enameled  ware,  glass  and  glassware,  leather  goods, 
liquors,  manuiactures  of  iron  and  steel,  paints,  perfumes,  pottery, 
rice,  soap,  suffar,  and  wines.  In  the  majority  of  cases  the  small 
share  of  the  United  States  in  these  imports  was  due  to  the  fact  that 
the  cost  of  production  in  the  countries  of  origin  was  lower  than  in 
the  United  States.  Gradually,  as  conditions  became  more  difficult 
during  the  war,  the  entire  trade  gravitated  to  the  United  States, 
with  the  exception  of  certain  wellrknown  lines  of  French  perfumes 
and  soaps,  Dutch  beer,  and  French  and  Spanish  wines  and  liquors. 

It  can  be  stated  that,  all  other  things  being  equal,  merchants  of 
Curasao  prefer  to  buy  in  the  United  States,  as  the  better  facilities 
of  communication  and  the  shorter  distance  enable  them  to  receive 
their  stocks  more  quickly,  and  this  relieves  the  necessity  for  long 
credits.  There  is  no  prejudice  of  any  kind  against  American  goods 
at  present  nor  any  preference  for  those  of  any  other  country. 

The  principal  difficulty  in  the  way  of  the  extension  of  American 
trade  prior  to  and  during  the  first  years  of  the  war  were  the  lack 
of  credit  facilities  equal  to  those  offered  by  Europe  and  the  difficulty 
in  presenting  new  goods  to  the  trade,  caused  by  the  lack  of  whole- 
salers and  brokers.  The  establishment  of  better  banking  facilities 
with  New  York  connections  and  the  renewal  of  traffic,  together  with 
the  better  knowledge  of  the  market  on  the  part  of  American  ex- 
porters, have  done  away  with  these  drawbacks.  It  is  to  be  supposed 
that  some  of  this  trade  will  return  to  Germany  later  and  that  Eng- 
land will  continue  to  hold  its  share  of  the  textile  trade,  but  the  United 
States  will  continue  to  hold  in  the  future  the  present  volume  of 
business.  The  trade  can  be  easily  taken  care  of  by  salesmen  making 
the  north  coast  of  Colombia  and  Venezuela  or  coming  down  from 
Cuba  or  the  West  Indies.    No  delays  are  experienced,  as  steamer 


THE  DUTCH  WEST  INDIES.  451 

connections  are  the  best  and  a  few  days  spent  in  Willemstad  will 
well  repay  the  small  additional  expense  for  travelers  handling  com- 
mercial lines. 

Curasao  furnishes  about  70  per  cent  of  the  exports  of  the  colony 
and  takes  about  80  per  cent  of  all  imports.  The  largest  item  of  ex- 
port shown  in  the  Government  statistics  is  coal,  imported  entirely 
from  the  United  States.  Deducting  the  coal  supplies  sold  to  ships, 
the  United  States  took,  in  1914,  34  per  cent  of  the  exports  of  tne 
island,  which  was  greatly  in  excess  of  the  proportion  taken  by  any 
other  country.  The  most  important  articles  of  export  of  which  the 
United  States  formerly  took  but  little  were  divi-divi,  hides,  and 
phosphates ;  of  these,  the  former  two  are  now  exported  more  largely 
to  the  United  States,  while  the  production  of  phosphates,  curtailed 
during  the  war,  goes  to  England. 

During  the  war  the  ccJony  not  only  suffered  from  the  general 
dislocation  of  shipping,  on  which  the  port  depended  to  a  great 
extent,  but  there  were  also  two  bad  years  on  account  of  protracted 
droughts.  During  1916,  1917,  and  1918,  the  Curagao  schooner  trade 
was  active,  and  tne  high  freights  earned  by  the  vessels  aided  in 
relieving  the  situation,  together  with  the  work  on  the  new  oil  refin- 
ery of  the  Royal  Dutch  Shell.  Immense  quantities  of  coffee  were 
stored  for  shipment  after  the  close  of  hostilities,  being  brought 
over  principally  from  the  Maracaibo,  Coro,  and  Puerto  Cabello 
regions  of  Venezuela.  The  straw-hat  industry,  upon  which  many 
of  the  people  depend,  had  gone  through  a  period  of  depression,  on 
account  of  the  closing  of  the  English  market,  before  the  trade  in 
this  article  was  established  with  the  United  States  in  1917.  Many 
of  the  workmen  emigrated  to  Cuba,  attracted  by  the  high  wages 
being  paid  in  the  cane  fields. 

After  the  armistice  Curagao  felt  the  benefit  of  the  high  prices 
obtaining  in  New  York  for  exports  from  South  America,  and  large 
profits  were  made  on  coffee,  hides  and  skins,  tanning  materials,  etc.. 
which  had  been  collected  from  Venezuela  during  the  period  oi 
depression.  The  renewal  of  normal  shipping,  with  the  addition  of 
new  lines  of  steamers,  the  activitv  in  the  oil  business,  and  the  general 
commercial  activity,  all  made  lor  an  era  of  great  prosperity  and 
profit. 

*  When  the  decline  came  in  the  latter  part  of  1920,  Curasao  mer- 
chants were  not  overstocked,  as  was  the  case  on  the  mainland  of 
Venezuela  and  Colombia.  They  had  no  great  stocks  of  staple  goods 
such  as  textiles,  because  they  depend  mainly  on  their  local  and 
transient  retail  trade,  and  their  general  policy  is  that  of  small  stocks 
often  renewed,  with  assortments  to  best  suit  the  demands  of  their 
peculiar  trade.  The  general  condition  of  panic  at  the  end  of  1920 
found  them  with  no  heavy  stocks  of  coffee,  cacao,  or  hides  on 
hand  and  only  with  easily  salable  stocks  of  goods  in  their  stores, 
for  which  there  is  a  growing  local  demand  created  by  the  increasing 
general  prosperity  of  the  people. 

All  the  European  steamship  conxpanies,  with  the  exception  of  the 
Hamburg-American,  have  now  reestablished  their  old  service,  in 
some  cases  (like  that  of  the  Royal  Dutch  West  India  Mail  Co.)  with 
additional  vessels  and  improved  service.  A  new  Italian  company  is 
in  the  trade,  and  there  are  two  new  American  lines.    One,  the  New 


452 


THE  DUTCH  WEST  INDIES. 


Orleans  &  South  American  Steamship  Co.  (W.  R.  Grace  &  Co.), 
provides  bimonthly  service  with  New  Orleans  for  freight  and  pas- 
sengers, while  the  Caribbean  Steamship  Co.  operates  a  line  of  ships 
chartered  for  freight  between  New  York  and  Caribbean  points  and 
maintains  a  small  steamer  at  Cura^ab  for  transshipment  service  with 
Maracaibo. 

FOREIGN-TRADE  FIGURES. 

STATISTICS  OF  IMPORTS. 

The  following  table  shows  the  value  of  articles  imported  into 
Curagao  in  1919  and  1920,  and  also  the  value  of  imports  from  the 
United  States  in  the  same  years : 


Articles. 


Agricultural  implements . 

Automobiles 

Bacon 

Bay  rum 

Beans  and  peas 

Beer  and  malt  extracts. . . 

Bicycles 

Biscuits 

Butter 

Candles 

Candi&s  and  chocolate 

Canned  goods 

Cattle 

Cement 

Cheese 

Cigars 

Cigarettes 

Clothlne 

Coal,  bituminous 

Coffee 

Copper  sheeting 

Com 

Com  meal 

JDrugs  and  chemicals 

Enameled  ware 

Fish: 

Cod 

Others 

Flour 

Frait: 

Fresh 

Preserved 

Jams. 

Furniture 

Glass  and  glassware 

Goats 

Gold  and  silver  ware 

Hats: 

Straw 

Others 

Hay 

Hogs 

Horses 

Ironware  (hardware) 

Lard 

Leather,  sole  and  others. . 
Liquors: 

Gin 

Liquors 

Rum 

Others 

Machinery 

Manufactures  (general). . 

Matches 

Meat: 

Dried 

Salt 


1919 


Total  im- 
ports. 


fZ59 
14,688 
11,897 

4,122 
39,303 

9,842 

457 

10,044 

45,140 

2,339 
12,860 
71,582 
22,126 

8,360 
21,740 

9,104 
45,767 

4,236 

137,186 

22,236 

5,489 

140,967 

121,600 

37,588 

5,093 

3,024 

6,971 

196,576 

13,795 

2,633 

943 

7,716 

5,698 

68 

640 

13,001 

1,407 

86 

118 

40 

6,789 

29,588 

26,316 

5,460 

5,460 


41,014 

16,682 

173, 105 

331,274 

5,323 

8,979 
3,266 


Imports 

from  United 

States. 


$259 

14,688 

10,815 

4,122 

14,041 

4,278 

457 

7,771 

27,927 

2,250 

10,796 

61,340 

806 

4,173 

6,418 

4,397 

5,559 

.2,178 

132,501 


4,209 


90,706 

20,684 

5,000 

3,000 


196,525 

814 
2,624 

900 
5,257 
4,092 


640 

7,284 

1,151 

86 


3,992 

25,228 

7,087 


25,200 

1,230 

145,734 

255,856 

1,879 


2,969 


1920 


Total  im- 
ports. 


$270 

34,376 

29,420 

6,260 

55,990 

22,206 

860 

20,083 

61,158 

7,597 

33,482 

114,155 
26,768 
16,040 
45,620 
17,664 
76,792 
16,220 

387,427 
30,904 
17,068 
91,052 

238,308 

38,030 

6,378 

3,692 

6,629 

362,852 

14,670 
5,830 
3,224 

14,936 

8,932 

418 

1,023 

« 

21,406 

1,684 

820 


40 

2,376 

51,524 

30,892 

19,075 

19,075 

5,416 

59,230 

32,644 

386,087 

611,228 

7,215 

7,802 
12,154 


Imports 

from  United 

states. 


$270 

33,215 

26,610 

6,260 

9,554 

1,972 

816 

6,242 

15,385 

4,720 

23,010 

86,213 


12,646 

388 

3,450 

18,732 

9,306 

337,200 

2,204 

8,700 

4,770 

236,952 

17,476 

3,900 

3,668 

'362,'848 

1,004 
5,060 
1,600 
9,952 
3,950 


670 

7,450 
250 
625 


946 

11,320 

9,621 


16 

66.408 

1,370 

156,470 

318,144 

2,022 


U,610 


THE  DUTOH  WEST  USTDHSS. 


453 


Articles. 


Mineral  water 

Oleomargarine 

OU: 

Crude 

Gasoline 

Kerosene. 

Linseed 

Others  (lubricating). 

Onions 

Paints  and  varnish..... 

Perfumay 

Pianos  and  organs 

Potatoes 

Pottery  and  porcelain. . . 

Rice... 

Rope  (cordage) 

Sacks,  empty 

Sheep 

Shoes 

Soap 

Starch 

Straw  for  hats 

Sugar 

Tar,  pitch,  and  rosin 

Tea 

Tiles  for  roofing 

Tobacco 

Vinegar 

Wines 

Wood; 

Planjcs 

Hardwoods 

All  other  articles 


Total. 


1019 


Total  im- 
ports. 


$864 
7,372 

140,167 

5,672 
10,968 

6,784 
20,026 

8,958 
13,044 
10,898 

4,792 
16,903 
U,785 
17,434 
19,745 
29,933 
286 
30,839 
22,038 
12,292 


120,427 
1,954 
4,117 


21,125 

1,621 

12,918 

41,906 

17,252 

407,571 


2,826,657 


Imports 

from  united 

States. 


$347 
7,014 


6,672 

10,968 

5,518 

17,777 

4,227 

6,536 

4,347 

4,372 

12,213 

2,786 

13,453 

19,649 

20,780 


29,361 

10,042 

9U 


8,60£ 
1,954 
2,616 


18,462 

'"*i,"592 

39,812 

4,547 

864,606 


1,744,997 


1920 


Total  im- 
ports. 


$988 
21,686 

1,656,062 

0,682 

3,376 

11,424 

41,632 

10,040 

11,090 

46,680 

1,980 

25,912 

13,186 

13,594 

25,836 

22,986 

210 

116,500 

27,832 

9,984 

81,440 

183,607 

1,405 

4,138 

100 

25,732 

976 

26,382 

61,156 

13,604 

779,155 


6,204,200 


Imparts 

from  united 

States. 


$150 
11,066 

02,720 

0,682 

8,376 

6,400 

88,306 

3,984 

1,526 

5,880 

1,754 

7,196 

2,960 

11,321 

19,290 

22,140 


105,210 

0,273 

800 


5,670 

1,405 

2,542 

54 

23,098 

926 

40 

48,817 

7,618 

822,888 


2,695,000 


EXPORTS  FROM  CURACAO  TO  UNITED  STATES. 

The  exports  from  Curasao  to  the  United  States  in  1919  and  1920 
are  shown  in  the  following  table,  as  invoiced  at  the  American  con- 
sulate at  Curasao : 


Articles. 


Aloes pounds. 

Cocoa do... 

Coffee do... 

Copaiba  balsam do... 

CmclB : do... 

Com do. . . 

Divl-divi pounds. 

Gasoline. gallons. 

Hats: 

Panama number. 

Palm docen. 

Straw do... 

Hides,  cattle pounds. 

Household  effects 1 

Metals,  old pounds . 

Mdlasses do . . . 

Skins: 

Goat do... 

Sheep do... 

Sisal  fiber do... 

Sugar. do... 

SImambabark do... 

Tortoise  shell do... 


1919 


Quantity. 


1,376,441 


7,318,836 

12,996 

i9,'654,'e34 


600 

02,643 

106,001 


1,324,602 
26,508 
77,664 

7,652,616 


66 


Value. 


$111,030 
'i,'4f6,*952 


123 
'454*766 


394 

164,160 

25,837 

1,677 


777,011 
6,322 
7,467 

663,577 


337 


1920 


Quantity. 


1,133,046 

2,610 

4,642,037 

83,486 


4,360,645 
1,660 

858 

480 

93,597 

2,312 


14,709 
1,100 

63,455 

10,64fi 

08,421 

10,651,270 

6.350 

286 


Value. 


$98,819 

1,280 

1,002,561 

21,722 


6,750 

106,442 

1,390 

2,127 

422 

227,477 

1,480 

2,000 

1,246 

335 

84,453 

4,321 

7,755 

2,473,742 

110 

2,635 


454 


THE  DUTCH  WEST  INDIES. 


Articles. 

1919 

1920 

Quantity. 

Value. 

Quantity. 

Value. 

Woods: 

Box 

$50,089 
1,148 
5,328 

$69,373 
424 

Curaire. 

/ 

Ebony 

6,586 

Mahopany        , , 

20,464 

Bed  oak 

1,608 
20,455 

Roble 

1,952 
2,702 
^968 
5,435 

Vera 

2,534 

Wool 

350 

All  other  articles 

3.438 

Total. 

3,744,099 

4,122,197 

The  value  of  exports  to  Porto  Rico  was  $29,693  in  1919  and  $39,678 
in  1920. 

SHIPS  ENTERING  CURACAO. 

During  1919,  580  steamers,  with  a  total  tonnage  of  780,790,  and 
1,066  sailing  vessels,  with  a  tonnage  of  92,328,  entered  Curasao.  Of 
this  number,  222  steamers  and  37  sailing  vessels  were  American.  The 
tonnage  of  the  former  was  243,330,  and  of  the  latter,  10,208. 

TEXTILE  TRADE. 

Prior  to  the  war  about  one-third  of  all  textiles  imported  came  from 
the  United  States.  The  rest  came  from  England,  France,  and  Spain. 
English  cotton  prints  enjoyed  practically  a  monopoly  of  this  market. 
As  the  war  advanced,  imports  of  textiles  from  France  and  England 
decreased  and  those  from  the  United  States  and  Spain  increased. 
Spain  was  furnishing  cotton  knit  goods,  principally  stockings  and 
underclothing,  but  these  imports  gradually  fell  off  and  the  entire 
supply  of  cotton  and  silk  goods  was  coming  from  the  United  States 
by  the  end  of  1917.  Fancy  dress  goods  of  American  make  are  found 
especially  satisfactory  by  the  importers,  who  predict  that  the  United 
States  will  hold  this  market  for  nearly  all  lines  of  textiles. 

The  mg-rket  has  no  peculiar  requirements,  and  packing  may  be  of 
the  ordinary  kind  used  for  ocean  shipment.  The  usual  cotton  goods 
for  tropical  markets  are  used.  American  ready-made,  lightweight 
clothing  is  becoming  increasingly  popular.  Cheap  cotton  prints  con- 
stitute the  principal  item  of  the  textile  trade,  as  luUy  85  per  cent  of 
the  people  are  Negroes. 

The  duty  on  cotton  goods  and  other  textiles  is  3^  per  cent  ad  va- 
lorem, port  of  shipment.  The  usual  terms  to  responsible  houses  are 
90  days  date.  The  parcel-post  service  can  be  used  to  advantage  by 
American  firms  in  building  up  an  attractive  export  business  with 
Curasao  in  notions,  novelties  in  dry  goods,  haberdashery,  ladies' 
wear,  and  articles  of  distinctive  style.  This  means  has  been  found 
especially  useful  by  the  merchants  for  keeping  on  hand  an  attractive 
display  of  new  and  seasonal  merchandise  oi  high  value  and  good 
margin  of  profit  for  their  retail  trade. 

TARIFF. 

The  tariff  of  the  colony  contains  few  and  simple  provisions,  and 
the  general  policy  is  one  of  noninterference  and  constructive  help  to 


THE  DtTfCH  .WEST?  IJfDlES. 


455 


trade.     The  following  table  shows  all  pertinent  provisions  of  the 
tariff : 


Classification. 


Potatoes 100  kilos. 

Earthenware  and  porcelain,  except  tiles  and  bricks value. 

AutomoUles do... 

Biscuit  (fine) •- do... 

Butter 100  kilos. 

Liquor  spirits hectoliter,  50  per  cent  alcohol,  at  15"  C . 

Glass  and  glassware value- 
Candles Ikilo. 

Cheese 100  kilos. 

Cofltee do... 

Com 64  liters. 

Maif^utne 100  kilos. 

Com  meal 90  kilos. 

Flour,  rye  and  wheat do. . . 

Metal  haniware;  enamel  ware value. 

Fumlture do... 

Pianos,  organs,  etc ^ do. . . 

Petroleum,  remied 100  liters. 

Beef  cattle per  head . 

Rice lOOkUos. 

Carriages,  vehicles value. 

Bicycles do. . . 

Cigars do. . . 

Cigarettes 100. 

Sugar: 

Brown .100  kilos. 

Refined  (white) ^ do. . . 

Ckmf ectionery  and  chocolate value . 

Confiture  fruits do. . . 

FirewOTks ,  etc do . . . 

Tobacco do... 

All  other  goods  not  mentioned  above value . 


Import  duty. 


Percent. 


10 
10 
10 


10 


10 
10 
10 


10 
10 
20 


10 
10 
20 
10 
3 


Florins. 


1.00 


7.50 
1.00 


.10 
5.00 
4.00 

.10 
5.00 

.25 

.50 


.80 
7.50 
1.00 


.10 

1.00 
2.00 


No  duty  is  charged  on  goods  for  t^ansshipme^t  in  or  out  of  the  port. 
No  duties  are  imposed  on : 

BaUast,  as  sand,  nibbish,  and  the  like  not  having  a  commercial  value. 

Ships  not  destined  to  remain  in  the  colony. 

Wrecks  of  vessels  pertaining  to  the  colony. 

Empty  barrels,  bags,  and  those  objects  made  especially  for  transporting 
goods,  provided  these  have  been  used. 

Articles  and  baggage  carried  by  travelers  for  their  personal  use. 

Machinery,  implements  for  agricultural  purposes,  artesian  wells,  electrical 
power  and  iUumination,  aqueducts,  docks,  refineries,  mine-exploitation  work,  etc. 

Machinery  and  equipment  for  telegraph  and  telephone  lines,  etc. 

Straw  and  fiber  for  hat  making,  hides  and  skins,  flags  and  shields  for  con- 
sulates, coal,  mineral  oils,  etc. 

ACCOMMODATIONS  FOR  TRAVELERS. 

There  are  two  principal  hotels  in  Willemstad.  The  Hotel  Ameri- 
cano, located  on  the  west  side  of  the  channel,  of  three  stories  and  con- 
taining 40  rooms,  charges  $3  to  $4  per  day,  with  meals.  The  outside 
rooms  facing  the  channel  are  preferred  by  travelers,  as  these  receive 
day  and  night  the  full  benefit  of  the  trade  winds.  A  new  chef  has 
been  brought  from  Porto  Rico  bv  the  management,  following  the 
policy  of  general  improvement  oi  accommodations  lor  travelers  at 
Curasao. 

The  Hotel  Washington  is  located  on  the  east  side  of  the  channel,  is 
not  on  the  waterfront,  and  hence  does  not  get  the  cooling  effect  of  the 
trade  winds  to  the  fullest  extent    The  building  is  an  old  residence 


456  THE  DUTCH  WEST  INDIES. 

and  few  of  the  rooms  are  as  desirable  as  those  of  the  Hotel  Americano 
across  the  channel.  However,  the  Washington  is  operated  in  connec- 
tion with  the  restaurant  of  the  same  name  and  a  specialty  is  made  of 
good  food — the  best  in  any  public  place  of  Curasao. 

There  are  several  other  hotels,  but  of  lower  class  and  not  frequented 
by  the  average  traveler. 

CABLE  AND  WIRELESS  SERVICE. 

The  colonial  government  has  installed  a  high-power  wireless  sta- 
tion at  Willemstad,  the  power  of  which  has  recently  been  considerably 
increased,  but  this  service  is  not  available  for  commercial  use  except 
to  ships  at  sea,  on  account  of  the  exclusive  concession  given  some  years 
ago  by  tl\e  Government  to  the  French  Cable  Co.,  which  maintains 
lines  to  Caracas  (Venezuela),  Martinique,  Haiti,  and  thence  to  New 
York  and  European  points.  Rates  of  this  company  are  based  on  $1 
per  word,  including  address  and  signature,  from  Willemstad  to  New 
York.  The  line  is  an  old  one.  Service  is  often  interrupted  by  break- 
age at  some  place. 


MONOGRAPHS  AND  TRADE  LISTS   RELATING  TO 

VENEZUELA. 

DEPARTMENT  OF  COMMERCE  MONOGRAPHS. 

In  addition  to  the  information  contained  in  this  handbook,  it 
should  be  noted  that  a  number  of  monographs  previously  published- 
by  the  Bureau  of  Foreign  and  Domestic  Commerce  include  reports 
with  regard  to  specific  phases  of  trade,  finance,  or  industry  in  Vene- 
zuela. These  are  mentioned  below.  The  publications  are  for  sale, 
at  the  indicated  prices,  by  the  Superintendent  of  Documents,  Gov- 
ernment Printing  Office,  Washington,  D.  C,  and  by  the  district  and 
cooperative  offices  of  the  Bureau  of  Foreign  and  Domestic  Commerce. 

BankinsT  Opportunities  in  South  America,  by  William  H.  Lough.  Special  agents 
series  No.  106 ;  1915 ;  156  pages.    Price,  20  cents. 

Investments  in  Latin  America  and  the  British  West  Indies,  by  Frederic  M. 
Halsey.     Special  agents  series  No.  169;  1918;  544  pages.    Price,  50  cents. 

Lumber  Markets  of  the  West  and  North  Coasts  of  South  America,  by  R.  E. 
Simmons.     Special  agents  series  No.  117;  1916;  149  pages.    Price,  25  cents. 

Karkets  for  Construction  Materials  and  Machinery  in  Venezuela,  by  W.  W. 
Ewing.     Special  agents  series  No.  144;  1917;  57  pages.    Price,  10  cents. 

Trade  of  the  United  States  with  the  World,  1914  and  1916  (fiscal  years).  Mis- 
cellaneous series  No.  38 ;  1916 ;  247  pages.    Price,  20  cents. 

Trade  of  the  United  States  with  the  World,  1916  and  1917  (fiscal  years).  Mis- 
cellaneous series  No.  63.  Part  1,  Imports;  1918;  112  pages;  price,  10  cents. 
Part  2,  Exports ;  1918 ;  317  pages ;  price,  20  cents. 

Trade  of  the  United  States  with  the  World,  1917  and  1918  (fiscal  years).  Mis- 
cellaneous series  No.  78.  Part  1,  Imports;  1919;  112  pages;  price,  10  cents. 
Part  2,  Exports ;  1919 ;  346  pages ;  price,  25  cents. 

Trade  of  the  United  States  with  the  World,  1918  and  1919  (calendar  years). 
Miscellaneous  series  No.  106.  Part  1,  Imports;  1920;  103  pages;  price,  10 
cents.    Part  2,  Exports ;  1921 ;  456  pages ;  price,  50  cents. 

One  should  mention  also  "  Commerce  and  Navigation  of  the  United 
States,"  an  annual  publication  giving  in  great  detail  the  trade  of 
the  United  States  with  all  the  countries  of  the  world,  as  well  as  the 
Supplements  to  Commerce  Reports,  which  contain  the  annual  reports 
of  the  American  consuls. 

TRADE  LISTS  AVAILABLE. 

A  great  many  names  of  importers,  exporters,  dealers,  agents,  and 
other  persons  and  firms  connected  with  the  commercial  activity  of 
Venezuela  have  been  obtained  in  recent  years  by  various  representa- 
tives of  the  United  States  Government.  These  names  are  now  on 
file  in  the  Commercial  Intelligence  Division  of  the  Bureau  of  For- 
eign and  Domestic  Commerce.  Numerous  trade  lists  have  been  pre- 
Eared  for  distribution,  arranged  on  the  basis  of  the  commodities 
andled.  These  lists  show  the  character  of  business  conducted  by 
each  firm — that  is,  whether  wholesale,  retail,  commission  merchant, 
or  agent — and  they  are  starred,  to  indicate  the  relative  size  of  each 
firm  in  its  community,  by  one,  two,  or  three  stars.    Information  is 

457 


458       MONOGBAPHS  AND  TBADB  LISTS  RELATING  TO  VENEZUELA. 

also  available  concerning  the  capital,  organization^  and  commercial 
activity  of  each  of  these  Venezuelan  houses.  The  lists  are  furnished 
to  American  business  men  upon  application  to  the  Bureau  of  Foreign 
and  Domestic  Commerce  or  any  of  its  district  or  cooperative  offices. 
The  inquirer  should  state  definitely  the  kind  of  list  that  he  desires; 
if  he  is  concerned  with  the  market  for  a  particular  commodity  or 
class  of  articles,  he  should  be  careful  to  make  a  specific  statement 
to  that  effect. 


Special  Agents  Series  No.  4 


,      • 


«  I 


i' 


N* 


•  ^^  4*  >^*   * 


INDEX. 


Page. 
Acosta  difirtrlct,  petroleum  concession-       101 

Adyertlsing,  effective  methods 412 

Adyertlsing   matter,    customs    treat- 
ment        402 

Agents,  ability  to  cover  territory 404 

necessity  for  care  In  selection 404 

Agricultural     machinery,     field     for 

American    sales 47 

general  review 45 

solution  for  problem  of  increas- 
ing production 32 

tractors 30,  45,  248 

Agriculture,  Ciudad  Bolivar  district-       294 
Dutch  West  Indies,  general  re-  • 

view 443 

governmental     efforts     for     im- 
provement  -  44,  75 

Maracalbo   district,   general   ac- 
count    200-211 

produce  for  Caracas  market 170 

Puerto     Cabello    and     Valencia 

district,  general  account 245-257 

summary  of  principal  products-         48 
survey    of    agricultural    invest- 
ments          69 

zones  of  production 43 

Aigrette  plumes,  exports 328 

industry  in  Ciudad  Bolivar  dis- 
trict  324-328 

Altagracia,  agriculture,  fishing  fleet-       189 

Altitude  of  principal  cities 20 

Amazonas     Territory,    general    sur- 
vey    281-284 

American  Magnesite  Mining  &  Manu- 
facturing   Co.,    claim,    Margarita 

Island 90 

American     Carbon     Co.,     magnesite 

claim,  Margarita  Island 90 

American   Mercantile   Banlc,    Ciudad 

Bolivar  agency 329 

Maracalbo  and  Tovar  branches-      223, 

224 

savings  department 382 

service  in  receiving  shipments-      168, 

406 
Americans,    position    in    commercial 

life 22 

Amparo  Mining  Co.,  operations 803 

Amusements,  Caracas  district 28 

Valencia 239 

Andes     Mountains,     general     topog- 
raphy  .  ft 

Maracalbo  district .       183 


^  Pagt. 

Anglo-Saxon  Petroleum  Co.,  petro- 
leum Interests 96 

Angostura  bark,  Ciudad  Bolivar  dis- 
trict   , 322 

Anzoategui  State,  extent  of  territory-       146 

Apure  River,  description  of  river  and 

tributaries 281 

Aragua   de   Barcelona,   position  and 

trade  relations 146 

Araya  Peninsula,  position  and  prod- 
ucts         154 

Architecture,  Caracas 119 

Area,  administrative  divisions,  Vene- 
zuela           10 

islands  of  Dutch  West  Indies—       432 

States  in  Maracalbo  district 181 

Aroa,  copper  mines 79, 257,  259 

Artistic  development 122 

Aruba    Island,    gold    and   phosphate 

mines 443 

Asphalt,  location  of  deposits 79 

resources  of  Maracalbo  region 213 

Atures   Rapids,    barrier   to    steamer 

communication 282,  283 

Automobiles,  imports,  Venezuela 354-356 

market,  Dutch  West  Indies 445 

market,  Venezuela 354-357 

public,  Caracas 28, 123 

See  also  Motor  trucks. 

Bags  and  sacks,  market 416 

Balsam  of  copaiba,  exports 322 

production,  Ciudad  Bolivar  dis- 
trict — ^ 321 

Balata,  exports 317 

production,  Ciudad  Bolivar  dis- 
trict    314-318 

Banco  Comerclal  de  Maracalbo,  oper- 
ations  224,  378 

Bank  of  Caracas,  operations 376 

Bank  of  Maracalbo,  operations 224,  378 

Bank  of  Venezuela,  operations 374 

Banks,  American  Mercantile  Bank-  168,  223 
activity  in  Maracalbo  district-  222-225 
Banco  Comerclal  de  Mara- 
calbo  224,  37» 

Bank  of  Caracas 376 

Bank  of  Maracalbo—  222,  223,  224,  378 

Bank  of  Venezuela 374 

City  Mortgage  and  Rural  Credit 

Bank-.^ 75 

Ciudad  Bolivar 329 

Curacaosche  Bank 438,  439 

459 


460 


INDBX. 


Page. 
Banks,  DeErchanel  International  Cor- 
poration  378,  382 

Dutch  West  Indies 438 

general  discussion,  Venezuela-  374-386 
Hollandsche    Bank   voor    West- 
Indie  378,  439 

lists  of  institutions 374 

National  aty  Bank 223,  320,  382 

Royal  Bank  of  Canada 223,  329 

Barber  Asphalt  Co.,  petroleum  inter- 
ests  ^ 96 

Barcelona,  coal  deposits 79, 148 

description  of  city 146 

iron-ore  deposits 79 

road  to  Soledad 156 

Barinas,  description  of  town 241 

iron-ore  deposits 79 

location,  temperature 237 

population 236 

Barquislmeto,  copper  deposits 79 

description  of  city ^1 

industries 262 

number  and  character  of  firms.  274 
population,    elevation,   tenipera- 

ture 236 

road  to  Carora 271 

road  to  ToCuyo 271 

Barrancas,  packing  house  advocated..  110 

trade  figures : 331 

Beans,  exports.  La  Vela 250 

production    of   castor   beans   in 

Valencia  district 256 

production    of    tonka    beans    in 

Ciudad  Bolivar  district 319 

Bella  Vista,  petroleum  deposits 92 

Bermudez  Asphalt  Lake 79,  92, 100 

Bermudez  Co.,  petroleum  interests 100 

Bills  of  lading,  requirements 396 

Bplivar    district,    petroleum    conces- 
sion   98 

Bolivar   Oilfields    (company) 102 

Bolivar   Railway,  operations 268 

relation  to  copper  mines 244 

Bolivar  State,  general  survey 285 

Bonaire  Island,   buildiiig  of  schoon- 
ers    441 

Bourse,  Caracas,  companies  listed 178 

Branger  family,  manufacturing  in- 
terests    263 

Breweries,  Caracas  district 174 

location,    Venezuela 115 

Maracaibo 221 

Bricks    and    tiles,    manufacture    at 

Maracaibo 222 

British-Controlled     Oilfields,     petro- 
leum interests 99 

British   Bquatorial   Corporation,   pe- 
troleum interests 102 

British   nationals,   position   in   com- 
mercial life 22 

Buchivacoa,  oil  field 99 

Budget,  national,  1920-21 42 

Building    materials,    market,    Dutch 

'    West   Indies 445 

Bureau  of  Commercial  Policy,  trade- 

promotive   efforts 414 


Pagt. 

Cable  service,  Curacao 456 

Venezuela 7 

Cacao,  exports,  Puerto  Cabello 265,266 

general  review  of  production. 55 

imports  by  United  States  from 

Venezuela 57 

production    In    Maracaibo    dis- 
trict   205 

production    in    Puerto    Cabello 

and   Valencia  district 255 

Cagua,    road    to    San    Fernando    de 

Apure 132 

Canadian-Venezuelan   Ore  Co.,  oper- 
ations  152,  30t> 

Candy,  factories  in   Caracas 173 

Canned  goods,  imports,  Venezuela 419 

market,  Dutch  West  Indies 444 

market,  Venezuela 417 

Cano  Colorado,  road  to  Maturin 157 

trade  figures 164 

Capatarida,  tobacco  production 242 

Capital,  mining  companies 82 

railway   lines 342 

Carabobo  Oilfields  (company) 102 

CaraBobo,  copper  deposits 79 

Carabobo  State,  distribution  of  popu- 
lation   235 

Caracas,  commercial  position-- 118, 166 

commercial    territory    tributary 

to  city 145 

companies  listed  on  bourse 178 

description  of  city 119-124 

location  and  physiography 118 

manufacturing  industries 172-178 

market  for  agricultural  products.  170 
number  of  persons  in  commercial 

lines 179 

number  of  persons  in  trades 180 

number  of  professional  men 179 

number  of  small  shops  and  fac- 
tories    179 

overland       route       to       Ciudad 

Bolivar 294 

rainfall 15 

road  to  Guatire 130 

road  to  La  Guaira 130 

road  to  Ocumare  del  Tuy 130 

road  to  Valencia 130 

Caracas  &  La  Guaira  Railway,  gen- 
eral description  of  line 124 

Caracas  Electric   Light  Co 124 

earache,    products    of    surrounding 

country 192 

Carenero,     general     description     of 

port 142-144 

imports  and  exports 144 

Carenero   Railway,    general   descrip- 
tion of  line 142 

Cargo,  amount  transported  by  rail- 
ways   843-345 

total  movement  on  railways 337 

Cariaco,  road  to  Carupano 167 

Caribbean   Coal   Co.,   concession   for 
railway,   Carrasquero   to   Cas- 

tilletes- 214,  216 


mvEx. 


461 


Pagt. 
Caribbean    Petroleum   Co.,    amounts 

paid  to  Government 81 

petroleum  interests,  general  ac- 
count   •         95 

products  handled  at  Curagao 103 

tanks  at  Puerto  Cabello 248 

Carib  Syndicate,  petroleum  interests.         08 

Caroni  Falls,  water-power  scheme 288 

Carora,  road  to  Barquisimeto 271 

Carriages,  public,  Caracas 28,123 

Carriages  and  carts,  manufacture 116 

Carupano,  commercial  position 155 

general  description  of  port 161-163 

imports  and  exports 163, 164 

relation  to  fishing  industry 113 

road  to  Cariaco 157 

'  road  to  Rio  Caribe 157 

Castilletes,  proposed  coal  port 215,  217 

Catatumbo  River 183 

Cattle,  areas  suitable  for  industry 106 

Ciudad  Bolivar  district 296 

exports 109 

feed  available  on  plains 108 

foreign  investments 110 

hides,    exports,    Puerto    Cabello 

and  La  Vela 266 

outline    of    industry's    develop- 
ment        106 

Puerto     Cabello     and     Valencia 

district-^ 264-266 

Cebadilla,    production    in    Ciudad 

Bolivar  district 820 

Cement,  factory  in  Caracas  suburb 172 

Central     Azucarero     de     La     Ceiba 

(sugar    mill),    operations 208 

Central  Asucarero  del  Zulia    (sugar 

mill),  operations 207 

Central  Gran  Via  (sugar  company), 

organization    208 

Central  Railway  of  Venezuela,  gen- 
eral description  of  line 126 

Chama   River 183,  184 

Chemicals,  market,   Dutch  West  In- 
dies         445 

market,  Venezuela 423 

Chichiriviche,  description  of  port 244 

Chambers  of  commerce 414 

Chicle,   exports l 318,  319 

production    in    Ciudad    Bolivar 

district     318,319 

Chinaware,    market 419 

Chocolate,    manufacture 116, 173 

Clcapra  district,  gold  deposits 304 

Cigars   and    cigarettes,    factories   in 

Caracas  district 82, 115, 174 

market  for  American  cigarettes         63 
problem    of    standardization    in 

domestic  production 60 

use    of    tobacco    by   Venezuelan 

industry 60 

Ciudad  Bolivar,  banking 329 

commercial  position 828 

description  of  city 286 

extent  of  commercial  district 278 

foreign  trade -       830 

overland  route  to  Caracas,,,^.      294 


Pagt. 
Ciudad   Bolivar,   position  as  rubber 

port 809 

trade     relations     with     United 

States 881 

Climate,   Caracas :.-  119 

Ciudad   Bolivar  district 284 

Curacao   -  484 

general   character,   Venezuela —  15 

llanos 16 

Maracaibo  district 16, 184 

Puerto  Cabello  and  Valencia  dis- 
trict     284 

temperature,  mean  annual,  cities  20 

temperature,  variations 15 

Clothing.    See  Wearing  apparel. 

Clubs,  Maracaibo 188 

Coal,  concessions  granted  in  1918 81 

east  of  Barcelona  and  in  Paria 

Peninsula 152 

Falcon  State  production 259,  261 

location  of  deposits,  Venezuela.  79 
Maracaibo  district  deposits—  214-217 
Naricual  fields,  general  descrip- 
tion    148-152 

Unare  mines • 150 

Coast  Range  Mountains,  Carenero —  144 

general   account 10 

La  Guaira 185 

"Oriente"    region 153 

Puerto  Cabello  and  Valencia  dis- 
trict     '- 233 

relation    to    Caracas 118 

Coche  Island,  trade 49 

Coconuts,    production    in    Maracaibo 

district 210 

production  in  Valencia 256 

Coffee,  cost  of  production 54 

exports,  all  Venezuela 51 

exports,  Puerto  C?iibello 254,  255 

importance  and  character  of  in- 
dustry    50 

industry      in      Maracaibo      dis- 
trict    201-204 

prices  and  grades 50,  51,  53,  54 

production  in  Valencia  district-  254 

shipments  from  Cucuta  region 200 

Coins,  description  of  Venezuelan 3 

Dutch  West  Indies  currency 436 

gold  and  silver  in  circulation  in 

Venezuela 880-882 

See  also  Currency. 
Cojedes  State,  distribution  of  popu- 
lation    235 

principal  towns 240 

Colombian  Petroleum  Co.,  petroleum 

interests 101 

Colonization,     contract    made    with 

Germans 71 

Germans  in  Monagas 18 

regions    suitable     for     develop- 
ment   74 

Colon    Development    Co.,    petroleum 

interests 98 

Colon  district,  petroleum  deposits 92 

Commerce.    See    Bxports ;     Foreign 
trade ;  Imports  ;  Trade  methods. 


462 


IISDEX. 


Pact. 

Commlsston     koiuefl.       See    Bzport 
commission    honses;    aleo    Trade 
methods. 
Companies,  listed  on  Caracas  Boorse  .  178 
listed  on  Maracaibo  stock  mar- 
ket   ^ 221 

registration  of  foreign 411 

Commercial  Bank  of  Maracaibo,  oper- 
ations  224,  378 

Commercial  Bank  of  Spanish  Amer- 
ica, character  of  business 882 

Commercial  lines,   representation  in 

Caracas 17ft 

Compafila  Petrolea  del  Tachira,  pe* 

troleum  interests 101 

Concessions,    lumbering,    regulations 

governing 76 

Copaiba  balsam,  exports 322 

production    in    Ciudad    Bolivar 

district 321 

Copper,  location  of  deposits 79 

mines  at.  Aroa 248,  244,  257-259 

Cordage,  manufacture  of 116 

Corn,  exports,  Puerto  Cabello 248 

production      and     consumption, 

Venezuela -. 250 

production    in    Maracaibo    dis- 
trict    209 

Corn    meal,   market  in   Dutch  West 

Indies 444 

Coro,  coal  deposits 79 

copper  deposits 79 

description  of  town 242 

iron-ore  deposits 79 

location,  temperature 236 

number  and  character  of  firms-  275 

population 235 

road  to  Cumarebo 271 

Coro  &  La  Vela  Railway,  operations-  269 
Cotton,  factories  in  Venezuela,  gen- 
eral reference 115 

factories  at  Caracas 174, 176 

factory  at  Cumana 158 

factories  at  Valencia 251,  262,  263 

general  review  of  production 64 

production    in    Maracaibo    dis- 
trict    211 

production  by  States  in  1920 66 

production  in  Valencia  district-  251 
Cottonseed  oil,  industry  in  Valencia 

district 263 

Credits,  conditions  at  Maracaibo 225 

general   discussion 405 

Puerto  Cabello  and  Valencia  dis- 
trict   273 

terms  in  Caracas  district-  167, 168, 169 

Cristobal  Colon,  commercial  position 156 

trade  figures 164, 165 

Cubagua  Island,  trade 49 

Cucuta,     Colombia,     description     of 

city 198 

relation    to    trade    of    Tachira 

State 190 

trade  with  Maracaibo 199,  200 

Cucuta  Hallway,  operations  _*. ^,.  199 


Pag«. 

Cumana,  commercial  position 155 

general  description  of  city  and 

port 157-160 

imports  and  exports 161 

iron-ore  deposits 79 

relation  to  fishing  industry 113 

road  to  Cumanacoa 166 

Mmana  &  Carupano  Pier  &  Tramway 
Co.,  general  account  of  operations.  158 
obligations    and    rights    at    Cu- 
mana   ^ 159 

obligations  and  rights  at  Caru- 
pano   161 

Cumanacoa,  commercial  position 155 

road  to  Cumana 156 

Cumarebo,  road  to  Coro •  271 

Curacao,  building  of  schooners 441 

characteristics  of  inhabitants 435 

commercial  position 49 

foreign  trade 452 

general  importance 447 

number  of  firms  and  character 

of  trade 449 

petroleum  situation 103,  446 

phosphate  mine 443 

salt  production 442 

topography  and  climate 434 

Curagao  Petroleum  Co.,  operations-  103,  446 

Curacaosche  Bank,  operations 439 

Currency,  bank  notes,  Venezuela 3 

Dutch  West  Indies 436 

foreign    coins    legal    tender    in 

Venezuela 3 

monetary   law 4 

Venezuelan  coins -  3 

See  also  Coins. 

Customs  tariff.     See  Tariff. 

Cutlery,  market 1 425 

Dairying,   Caracas  district 172 

plant  at  Maracay 115 

Dairy  products,  exports  from  United 

states  to  Venezuela 422 

imports  to  Venezuela 420 

market 420 

Death  rate  of  principal  cities ._  20 

Debt,  national,  status  of 41 

Delta    Amacuro,   extent   and    topog- 
raphy    279 

Deschanel  International  Corporation, 

general  operations 378 

interest  paid 382 

Diseases,   tropical 16 

See  aiso  Malaria ;  Sanitation. 

Divi-divi,  analysis  of  pods ! 77 

exports,  all  Venezuela 78 

exports,  Maracaibo 213 

production  and  exportation,  Coro 

region 257 

utilization  of  extract 77 

See  aUo  Tanning  materials. 
Documents,     typewritten,     registra- 
tion    412 

Drafts,   practice  in   handling «  380 


INDEX. 


463 


Pace. 
Drags  and  medicines,  legal  registra- 
tion, Venesuela 411 

market,  Datch  West  Indies .  445 

market,  Venezuela 428 

Dry  dock,  Puerto  Cabello 248 

Dutch  West  Indies,  general  descrip- 
tion   482-456 

location,  area,  population . —  432 

Dutch,  inhabitants  of  Curagao 485 

Dyes,  plants' in  Ciudad  Boliyar  dis- 
trict    807 

Barthenware,  imports 420 

Education,  general  review 85 

"  El  Callao  "  gold  mine,  operations-  301 
El   Dorado   Rubber,   Balata.  k  Gold 

Mining  Co.,  operations 803 

Electric  plants,   Carupano 168 

cost  of  lighting  service 27 

Maracalbo 188 

Valencia 238 

Electric  Railway  of  Valencia,  opera- 
tions   238 

El  Encantado,  rapids  used  for  gen- 
eration of  power 124 

El  Isiro,  coal  production 260 

El  Pilar,  coal  deposits 152 

Embroideries.      See   Laces    and   em- 
broideries. 

Enameled  ware,  market 419 

Escalante  Oilfields    (company) 102 

Bscalante  River '  183 

Esmeraldas,  mission  station 282 

Eyeglasses,  market 429 

Exchange,     conditions     and     rates, 

Dutch  West  Indies 437 

effect  on  trade  in  Venezuela.  365,  369 

transactions    at    Maracalbo 223 

Experiment   stations,    agricultural 44 

Explosives,    restrictions    on    impor- 
tation and  use 892 

Export  commission  houses,  functions 

in  trade  with  Caracas  district 168 

services  in   Venezuelan  trade..  403 
See  also  Trade  methods. 

Exports,  aigrette  plumes 328 

balata 317 

balsam  of  copaiba,  Ciudad  Boli- 
var to  United  States 322 

balsam  of  copaiba,  Maracalbo 218 

balsam  of  copaiba,  Venezuela  to 

United  States .'  822 

beans.  La  Vela 250 

beans,  peas,  and  corn 70 

cacao,   Maracalbo 205 

cacao,  Puerto  Cabello 255,  256 

cacao,  Venezuela,   total  and  by 

ports 57 

Carenero 144 

Carupano 158, 159, 164 

cattle  — lOf 

cattle  hides,  Puerto  Cabello  and 

La  Vela 266 

chicle 818,  319 

Ciudad   Bolivar 380 

coconut  oil,  Maracalbo 213 


Page. 

Exports,    coffee,    Maracalbo 203,  204 

coffee,  Puerto  Cabello 254,  255 

coffee,   Venesuela,  total  and  by 

ports 51 

corn,    Maracalbo 209 

corn,  Puerto  Cabello 248 

Cumana   168, 159, 161 

Curagao   458 

divi-divi,   La   Vela 267 

divi-divi,  Maracalbo 218 

divi-dlvi,  Venesuela  as  a  whole-  78,  257 

goatskins,  La  Vela 266 

goatskins,  Puerto  Cabello 265 

gold 303, 381 

Quanta 148 

hides   and   skins,   Ciudad   Boli- 
var    328,  824 

hides  and  skins,  Maracalbo 212 

Higuerote 144 

La  Guaira 140,141,142 

La  Vela 245,272 

Maracalbo   198,  228 

meat 265 

petroleum , 96 

Puerto   Cabello 272,273 

rubber 314 

sugar.    La    Guaira 171 

sugar,     Maracalbo     to     United 

States 206 

sugar,  Puerto  Cabello 248 

sugar,  Venezuela  as  a  whole —         67 

tobacco 60,  61 

tonka  beans 320 

Venezuela  as  a  whole 359 

See  also  Foreign  trade. 

Exposition,  National,  Caracas,  1920-       414 

Falcon   State,  distribution  of  popu- 
lation   235 

iron-ore  deposits 79 

Pees,    consular   Invoices 394 

Fertilizers,    goat    manure,    Coro    re-. 

gion 245 

Fiber,  general  review  of  resources 76 

hat,    production    in    Maracalbo 

district 211 

native,  used  for  sacks 173 

Finances,      functions     of     National 

Treasury 37 

funds  allotted  to  road  construc- 
tion   350 

national  budget,  1920-21 42 

position  of  national  finances  in 

recent  years - 37 

Firearms,    restriction     on     importa- 
tion   392 

Fishing,  Dutch  West  Indies 442 

general    review    of    Venezuelan 

industry 113 

Flour,  market  in  Dutch  West  Indies.  444 

Foodstuffs,  canned  goods,  market 417 

cost  of  food , 27 

increase    in    exports    to    West 

Indies 250 

market,  Dutch  West  Indies 444 

pure-food  regulations .  392 


464 


INDEX. 


Page. 

Forei^   colonies,   Caracas 122 

pofiition  in  commercial  life 22 

Foreign  trade,  Ciudad  Bolivar 330 

Curasao 452 

general  discussion,  Venezuela  as 

a  whole 358-373 

La  Vela 245 

Maracaibo 227-232 

Puerto  Cabello  and  La  Vela»-  271-273 
See  also  Exports ;  Imports. 
BV>re8t     products,     Ciudad     Bolivar 

district 307-323 

Maracaibo  district 212,213 

Puerto  Cabello  and  Valencia  dis- 
trict         257 

Forests,  law  on  conservation 75 

Freight     rates,     coffee     shipments, 

Maracaibo  district 195 

control   by   steamship   combina- 
tion        334 

railway,  average 336 

French   nationals,   position   in    com- 
mercial life : 22 

Fruits,  citrus,  in  Valencia  district 257 

production    in    Maracaibo    dis- 
trict         210 

Fuel  oil,  supply  at  Willemstad 440 

Furniture,  manufacture 116,  lt6 

Creneral  Asphalt   Co.,  petroleum   in- 
terests   95,  98, 100 

Geology,  Ciudad  Bolivar  district—  297,  298 
Germans,     colonization     project     in 

Monagas 18,  71 

commercial    interests   at   Mara- 
caibo  225,  226 

commercial  interests  at  Valencia 

and  Puerto  Cabello 274 

position  in  commercial  life 22,  23 

profits  of  firms  in  Puerto  Cabello 

district 272 

Gibraltar,    history,    present    impor- 
tance         189 

Glass,  factory  at  Caracas 116, 173 

Glassware,  imports 420 

market 419 

Gloves,  market 424 

Goajlra  Indians,  Maracaibo  district-       193 

pursuit  by  ranchers 216 

racial  characteristice 21 

Goats,    Barquisimeto    and    Coro    re- 
gions   265 

Goatskins,  exports.  La  Vela 266 

exports,  Puerto  Cabello 265 

Gold,  coin  in  circulation 380-382 

"  Bl  Callao  "  mine 301 

exports 303 

history  of  Guayana  fields 298 

imports  and  exports 381 

location  of  deposits 79 

mines  on  Aruba  Island 443 

production    in    Ciudad    Bolivar 

district 301-306 

specimens  encountered  in  Valen- 

CU  dlBtrict 259 


Pagt. 

Goldflelds  of  Venezuela   (company), 

operations 303 

Government,  Dutch  West  Indies 432 

Great  Eastern  Highway,  general  de- 
scription   847 

Great  Railway  of  Venezuela,  general 

description 127 

service  at  Valencia 238 

Great  Western  Highway,  general  de- 
scriptions   133,  347 

work  in  Maracaibo  district 195 

Guacipati,  commercial  position 292 

Guahtaribo   Indians,   preventing  ex- 
ploration    282 

Guanare,  description  of  town 241 

population,     location,     tempera- 
ture    236 

Guanoco,  asphalt  deposits 79 

petroleum  field 100 

Quanta,  asphalt  deposits 79 

description  of  port 146-148 

Quanta,  Barcelona,  &  Naricual  Rail- 
way, description  of  line 146, 147 

Quatire,      proposed     railway     from 

Caracas 128 

road  from  Caracas 130 

Guiana  Highlands,  extent  and  topog- 
raphy  11,  279 

geology 298 

Quigue,  description  of  town 240 

Guiria,      merchandise      handled      at 

port 164 

Gulf  Oil  &  Transport  Co.,  petroleum 

interests 102 

Harbors,  Carenero 143 

Carupano 161-163 

Cumana 159, 160 

Quanta 147, 148 

La  Quaira 136 

Maracaibo 198 

Puerto  Cabello 242,  243 

Willemstad 440 

See  also  Shipping. 

Hardware,  imports ^       427 

market 425 

Hats,  manufacture,  Valencia 262 

production  and  importation,  Ma- 
racaibo         222 

market  for  hats  and  hat-making 

supplies 427 

Panama,    production    in    Dutch 

West  Indies 442 

Health,  conditions  in  Maracaibo  dis- 
trict        185 

See  also  Malaria  ;  Sanitation. 
Hides   and    skins,    cattle   hides,   ex- 
ports, Puerto  Cabello  and  La  Vela.       266 

exports,  Maracaibo 212 

goatskins,    exports,   Puerto   Ca- 
bello        265 

goatskins,  exports,  La  Vela 245,  266 

trade  at  Ciudad  Bolivar 323 

Highways.    See  Roads  and  trallo. 


INDEX. 


465 


Page. 

Higiierote,  imports  and  exports 144 

Hollandschc  Bank  voor  West-Indie, 

Curacao   branch 439 

position  in  Venezuela 378 

Homes,  poorer  classes 27 

wealthier  classes,  Caracas 25 

Hosiery,  kind  desired  in  Caracas  dis- 
trict   170 

Hospitals,  Caracas 122 

Hotels  and  pensions,  Caracas 122 

Curacao 456 

Maracaibo 188 

Valencia 239 

I&iataca,  iron  deposits 79,  152,  305-307 

Immigration,  central  board 17 

colonization  by  Germans ^.         18 

Buropean,  after  war 18 

need  of 17 

Imports,  agricultural  implements 46,  47 

automobiles 855,  366 

barbed  wire 46 

canned  goods 419 

Carenero 144 

Carupano 159, 164 

china,  glass,  and  enameled  ware.       420 

cigarettes 64 

Ciudad  Bolivar 330 

cottonseed  oil 66 

Cumana 159, 161 

Curacao 452 

dairy  products 420 

gold ^__ 381 

Guanta •  148 

hardware  and  steel  products 427 

Higuerote 144 

La  Guaira 140,  141,  142 

La  Vela 245,  272 

leather 178 

Maracaibo 198,  280 

Puerto  Cabello 271,  272 

olive  oil 67 

rice 68 

Venezuela  as  a  whole 861 

See  aUo  Foreign  trade;  Tariff. 
Indians,  Goajira,  Maracaibo  district-       192 
Goajira,  pursuit  by  ranchers-.       216 

Guahtarlbo 282 

Motilones,     in     Maracaibo     dis- 
trict        198 

Piaroa 288 

racial  characteristics 21 

Insurance,      companies      at      Mara- 
caibo  222,  223 

La  Previsora,  Venezuelan  com- 
pany        178 

Interest,  rates  paid  by  banks 882 

Investments,   capitalization   of  min- 
ing companies 82 

foreign,  in  cattle  raising 110 

oil  exploration  and  drilling 105 

railway  lines 342 

Invoices,  consular,  requirements ..       394 

Ipecac,  Ciudad  Bolivar  district 823 

Irapa,  merchandise  handled  at  port.       164 

79747**— 22 31 


Pagt. 

Iron,  Imataca  deposits 805-807 

other  deposits . 79 

Italians,  position  in  commercial  life-«  22 

Kapok,  Ciudad  Bolivar  district 328 

Labor     and     wages,     conditions     in 

Valencia    district 247 

domestic  servants f 26 

fishing  industry 114 

gold  fields 304 

hours  per  day « 88 

problem  in  rubber  Industry 810 

scarcity  of  workpeople 82 

schedule  adopted  in  1917 88 

La  Ceiba  Railway,  operations 218 

Laces  and  embroideries,  market 428 

La  Grita,  location  and  products 190 

La    Guaira,    general    description    of 

port 136-138 

imports  and  exports 140-142 

installation  of  new  aqueduct 121 

road  to  Caracas 180 

La  Guaira  Harbour  Corporation 136,  140 

Land  laws 70 

Lands,  Government,  allotments  dur- 
ing   1917-18 18 

Language,  Dutch,  Spanish,  English, 

in  Curacao 435 

English,  knowledge  of  by  Vene- 
zuelans    30 

Spanish,  in  Venezuela 2 

Lara   State,  distribution  of  popula- 
tion    286 

Lard,  market,  Dutch  West  Indies 444 

La     Uraca,     terminus     of     Tachira 

Railway 190 

La  Vela  de  Coro,  description  of  port  246 

foreign  trade 272 

Laws  and  regulations,  banking  legis- 
lation     383-386 

commercial     travelers*     regula- 
tions    401 

customs  regulations 394 

forests  and  waters 76 

governing  concessions   for   lum- 
bering    75« 

governing  mining 80-86 

highway  legislation 350 

land  laws 70 

legislation   concerning   aigrettes  826 

monetary   legislation 4 

parcel-post    imports 6,  6,  397 

petroleum   law 108 

port  regulations  at  La  Guaira-  189 

railway  legislation 839 

saniUry 27, 119, 120 

special    regulations    on    certain 

imports 892 

tariff  law 389 

trade-mark  legislation 410 

Lead,  location  of  deposits ^.  79 

Leather,  tanning  in  Caracas  district  177 
Legislation.     See  Laws  and  regula- 
tions. 


466 


INDEX. 


Page. 

Llqneur,  "  Curagao  " 442 

Liquors,  internal  taxes 393 

industry  in   Caracas 178 

Live  stock,  Cludad  Bolivar 296 

Dutch  West  Indies 441 

for  Caracas  market 170 

Puerto  Cabello  and  Valencia  dis- 
trict      264-266 

Living  coBditibns,  general  review 24 

Maracaibo  district 193 

poorer  classes 27 

small  towns  and  ranches 28 

wealthier   classes 25 

Llanos,  climate j.»         16 

geographic  position 1 

suitability  for  cattle  raising-  107-109 

Valencia  commercial  district 233 

Llanos  Road 182 

"  Lo    Increible "    (gold-mining    com- 
pany), operations 303,304 

Los  Barrosos,  petroleum  concession.       101 

Los  Ipures,  soda  mines 156 

Los  Naranjos,  hydroelectric  plant 124 

Les  Teques,  resort  near  Caracas 28 

Lumber,  production  at  Maracaibo.  212,  213 
regulations     governing     conces- 
sions    75 

See  aJ»o  Woods. 

Macarao    River,    water    supply    for 

Caracas 120 

Machinery,   market   in   Dut«fa   West 

Indies 445 

road  making,  Venezuela .852 

Bee      also      Agricultural      ma- 
chinery. 
Machine      shops      and     ^foundries, 

small,  in  Caracas 178 

Macuto,  suburb  of  La  Guaira 28, 135 

Macuto  Coastline  Railway 128 

Magnesite,    deposits    on    Margarita 

Island 88 

Ifagnesite      Products      Corporation, 

concession  on  Margarita  Island —         90 
Maipures     Rapids,     description     by 

Humboldt 282,  283 

Maiquetia,  suburb  of  La  Guaira 135, 173 

Malaria,     general     prevalence     and 

effect 16 

prevalence  at  La  Guaira 185 

prevalence  at   Maracaibo 185 

prevalence  at  Valencia 288 

See  also  Sanitation. 

Manufactures,      market     in     Dutch 
West  Indies 445 

Manufacturing,  Barquisimeto 262 

Caracas 172-178 

cotton    mills 251 

Cumana i 157, 158 

general  survey 115 

Maracaibo  district 221 

Puerto  Cabello 261,262 

Valencia 2^2 

*8ee     also     Sugar     (for     sugar 
mUl8). 


Pact. 

Maps,  Caracas  district 120 

/  Ciudad  Bolivar  district 278 

Chiragao,  Bonaire,  and  Aruba 433 

Maracaibo  district 182 

petroleum  deposits 93 

Puerto    Cabello     and     Valencia 

district 234 

Venezuela  as  a  whole 458 

Mara  Oil  Exploration  Co 101 

Mara,  petroleum  deposits 92 

Maracaibo,  agriculture  in  district.  200-211 

banking  and  insurance 222-225 

coal  company 214 

companies  listed  on  stock  mar- 
ket         221 

extent  of  commercial  district 181 

foreign  trade 227-232 

forest  resources  of  district 212 

general  description  of  city 187-189 

general  description  of  port 197 

hides  and  skins  in  district 211,  212 

industries  of  city 221 

petroleum    concessions    in    dis- 
trict   98, 102 

railways  in  district 217-221 

rainfall 15, 185 

temperature 184 

trade  methods 225-227 

Maracaibo  Basin,  climate 16 

Maracaibo  Electric  Light  Co.,  opera- 
tions        188 

Maracaibo    Electric   Street    Railway 

operations r- 188 

Mairacaibo  Lake,  asphalt  deposits 79 

topographic  description 183 

"  Maracaibo  lights  " 185 

Maracaibo     Oil      Exploration     Co., 

petroleum  interests 101 

Maracay,  pastures  for  cattle 109 

proposed    railway    to    Turiama 

Bay 838 

road  to  Ocumare  de  la  Costa 131 

Margarita   Island,   fishing  industry.       113 

magnesite  deposits 88 

pearl  beds — 89 

trade '. 49 

Matches,  manufacture  of 116,173 

Maturin,  drilling  for  oil 95 

road  to  Cano  Colorado 157 

slaughtering   of   cattle 111 

Measures.     See  Weights  and   meas- 
ures. 
Meat,  exports  from  United  States  to 

Venezuela 422 

exports  from  Venezuela 265 

market,  Dutch  West  Indies 444 

market,  Venezuela 420 

packing  plant,  Puerto  Cabello.  242,  262 
Venezuelan      salted      meat      in 

Trinidad 111 

Medicines.      See    Drugs    and    medi- 
cines. 

Mene  Grande,  petroleum  field ..         95 

Merida    city,    location    and    Impor- 

tance 191 

rainfall 15 


IKDEZ. 


467 


Pact. 
Merlda  Oilfields  (company) 102 

Merlda  State,  copper  deposits 79 

geographic  description -,       187 

Metric  system,  Importance  of  using-  S 
Minerals,  right  to  prospect  and  ex- 
plore for %7 

Bee  aUo  Coal;   Copper;   Qold; 
etc. 
Mining,  capitalization  of  companies.         82 

Ciudad    Bolivar    district 297-307 

Dutch  West  Indies 442 

formation    of    companies 87 

general  economic  significance —  1 

general   survey 79 

laws  and  regulations 80-86 

Maracaibo   district,   general   ac- 
count    213-217 

payments  to  Government 86 

Puerto     Cabello    and     Valencia 

district 257-261 

See   also   Coal ;    Copper  ;   Gold  ; 
etc. 
Ministry     of    Fomento,     report     on 

Naricual  coal  mines IBl 

Ministry  of  Public  Works,  interest  in 
construction  devices  and  machin- 
ery         858 

purchases  for  Guanta  Railway.       147 

road-building  program 846 

study    of    watershed    near    Ca- 
racas  . 121 

Miranda  Exploration  Co 101 

Monagas  State,  German  colonization 

project-^ 18,  Tl 

petroleum  concessions 102 

Money.  See  Coins;  Currency;  Fi- 
nances. * 

Montalban,  description  of  town 239 

Motatan  River 183, 184 

Motilones  Indians,  Maracaibo  dis- 
trict        193 

Motor  cycles,  shipments  from  United 

States 855 

Motor  trucks,   market,   Dutch   West 

Indies 445 

market,  Venezuela 354 

Bee  also  Automobiles. 

Mountains,    Andes 9, 188 

Coast  Range-  10, 118, 185, 144,153,  233 

Guiana   Highlands 11,  279,  298 

Segovia  Highlands 10,238 

See  alao  Topography. 

Mucuchles,  highest  town  in  Vene- 
zuela — — 191 

Naricual,  coal  deposits 79, 148-152 

National  Cement  Factory,  oper- 
ations    172 

National  City  Bank,  agency  at  Ciu- 
dad Bolivar 329 

branch  at  Maracaibo 223 

policy  of  Caracas  branch 382 

National  Dry  Dock  and  Navy  Yard, 

Puerto  Cabello 243 


Pagt. 

National  Fiber  and  Cordage  Factory, 

production  of  fibers 76 

National  Match  Factory 116, 173 

Navy  yard,  Puerto  Cabello 243 

Negroes^  Curacao 436 

position  in  Venezuelan  life .  22 

New  Callao  Gold  Mining  Co.,  oper- 
ations    308 

New  Bngland  Petroleum  Co 102 

New  Orleans,  trade  with  Venezuela-  335 

Nirgua,  description  of  town 239 

road  to  Valencia 270 

North    Venezuelan    Petroleum    Co., 

petroleum  Interests 101 

shipping  base,  road  building 244 

Ocumare  de  la  Costa,  plan  for  new 

seaport 144,  145 

plan  for  packing  house 100 

road  to  Maracay 131 

Ocumare  del  Tuy,  road  to  Caracas —  130 
Oil,  coconut,  cottonseed,  factory  at 

Cumana 158 

cottonseed,  industry  in  Valencia 

district 263 

fuel,  supply  at  Willemstad 440 

Oil  fields.    See  Petroleum. 

Optical  goods,  market 429 

"Oriente,"    general    description    of 

territory ^-, 153-156 

Orinoco  River,   description   of  river 

and  tributaries 12,  280 

flood  stages 284 

southern  bank,  lands  for  coloni- 
zation   74 

transportation  conditions 289-291 

Packing,    general    statement    of    re- 
quirements   408 

Paez  Exploration  Co 101 

Paper,  factory  at  Caracas 115 

factory  at  Maracay 115 

Paralso  drive,  Caracas 121 

Parcel  post,  Dutch  West  Indies 436 

general  discussion  of  trade 370-373 

increased  use  of  service,  condi- 
tions governing 275 

regulations  govering  shipments-  397 
See  alee  Postage. 
Parla     Peninsula,     outcropplngs    of 

coal 152 

petroleum  field 100 

Parks,  Caracas 121 

Patent    medicines.  See    Drugs    and 
medicines. 

Paujl  Concession,  petroleum 100 

Pearls,  Industry  at  Cubagua,  Coche, 

and  Margarita 89 

Pedernales,  merchandise  handled  at 

port 164 

petroleum  deposits 92, 100 

Penalties,  frauds  or  mistakes  under 

customs  regulations 399 

Perija,  petroleum  deposits 92,  96 

Perija   Exploration   Co 101 


468 


INDEX. 


Page. 
P^troleam,  companies  engaged  in  de- 

Telopment 9&-102 

concessions    in    Puerto    Cabello 

district 259 

contracts  made  by  Federal  Bxec- 

utlve , 81 

exports 06 

Goyemment  revenues 81 

investments  in  exploration  and 

drilling 105 

legislation 108 

location,  of  oil  fields 92 

production  for  entire  country 92 

quality  of  deposits 92,  94 

situation  at  Cura<;ao 108,  446 

taxes  on  developments 104 

See  also  names  of  companies. 
Pharmaceutical  products,  regulations 

governing 392 

Phosphate,  mines  on  Aruba  Island —  443 

mines  in  Dutch  West  Indies 442 

Piaroa  Indians,  region  inhabited 283 

Population,   by   administrative   divi- 
sions   19 

characteristics  of  Curasao  peo- 
ple    435 

effect  of  insulDclent  population.  30 

islands  of  Dutch  West  Indies..  432 

principal  cities 20 

Puerto    Cabello    and    Valencia 

district 235 

racial   characteristics   in   Mara- 

caibo  district 192 

States  in  Maracaibo  district 181 

statistics  for  entire  country 17 

towns  in  Maracaibo  district—  186, 187 
Port  of  Spain,  Trinidad,  transship- 
ment   point    for    Ciudad    Bolivar 

trade 287 

Portuguesa     State,     distribution    of 

population 286 

lands  open  for  colonization 74 

Postage,  Dutch  West  Indies 436 

rates,  Venezuela 6,  6 

regulations     governing     parcel- 
post  Imports 5,  6 

See  also  Parcel  post. 
Potatoes,    production    in    Maracaibo 

district 210 

Precious  metals.    See  Gold  ;  Silver. 

Pregonero,  agricultural  products 190 

Prices,  aigrette  plumes 325 

automobiles  and  trucks 355 

balata 318 

coffee 50,  51,  53,  54,  201,  202 

cotton,  Venezuelan  raw 1.  65 

cotton,  Valencia  district 252 

fish 114 

goatskins 266 

hats 427 

principal  export  products 40 

products  of  oil  refinery 97 

rice 68 

straw  braid 428 

sugar,  in  Caracas  market 171 

sugar,  effect  of  prices 209 


Pagt. 
Professions,  representation  in  Cara- 
cas         179 

Publications,  Department  of  Com- 
merce monographs  on  Venezuela 457 

Public  utilities.  See  Blectrlc  plants ; 
Street  railways ;  Telephone  service ; 
Water  supply. 

Puerto  Cabello,  foreign  trade 271-273 

general  description  of  city  and 

port « 242 

manufacturing  industries 261 

packing  house .       109 

road  to  San  Felipe 270 

road  to  Valencia 270 

Puerto  Cabello  and  Valencia,  extent 
and  character  of  commercial  dis- 
trict         233 

population  of  district  by  politi- 
cal divisions 235 

topography  and   climate  of  dis- 
trict  233,  234 

Puerto  Cabello  &  Valencia  Railway, 

operations 260 

service  at  Valencia 238 

Puerto  Nutrias,  point  of  river  ship- 
ment        241 

Purchasing  power  of  population 24 


« 


llnina,"  Ciudad  Bolivar  district 322 


Racial  characteristics,  Indian  tribes.  21 

Negro  element 22 

Railways,  Bolivar  Railway 268 

Caracas  &  La  Gualra  Railway —  124 

Carenero  Railway 142 

Central  Railway  of  Venesuela 126 

Coro  &  La  Vela  Railway 269 

Cucuta  Railway 199 

general   account   of  Venezuelan 

lines 336-846 

Great   Railway   of   Venezuela 127 

Guanta,  Barcelona,  &  Narlcual 

Railway 146 

La  Celba  Railway 218 

line  at  Guanipa  asphalt  mines.  156 

line  at  Guanoco  asphalt  mines.  150 

Macuto  Coastline  Railway 128 

Puerto  Cabello  &  Valencia  Rail- 
way   266 

Santa  Barbara  ft  El  Vigia  Rail- 
way   219 

Tachira  Railway 218 

See  also  Transportation. 

Rainfall,  Ciudad  Bolivar  district— .  284 

rainy  season 15 

statement  by  months 15 

Refinery,  petroleum,  Curacao 103,  446 

San  Lorenzo 96 

Rents,    furnished    and    unfurnished 

residences 20 

Resorts   In   Caracas   district 28 

Revenues,  from  petroleum 81 

statement  of  national  revenues.  88,  40 
See  alto  Finances ;  Tariff ;  Taxes. 

Regulations.     See  Laws  and  regula- 
tions. 


INDEX. 


469 


Page. 

Bice,  general  reylew  of  production.  67 

imports 68 

production    in    Maracaibo    dis- 
trict    2X0 

production  in  Valencia  district.  262 

Bio  Caribe,   commercial  position 155 

road  to   Yaguaraparo 157 

trade  figures 164 

Bio   Chico,   loading  point   for   agri- 
cultural products 142 

Bio  del  Oro,  petroleum  field 98 

Biyers,     length,     narigable     course, 

drainage  area 14 

Boads  and  trfiils,  Caracas  district  128-185 
competition  of  cart  roads  witb 

railways 888 

Cumana-Carupano  district...  166, 157 
effect  of  road  building  on  mar- 
kets    196 

general   account,   for  all   Vene- 
zuela   846 

lists  of  highways 348-850 

Puerto    Cabello    and    Valencia 

district 270,  271 

Bope,   factory   at   Caracas 173 

Boyal   Bank   of  Canada,  branch   at 

Ciudad  Bolivar 329 

branch   at   Maracaibo 223 

Boyal  Dutch  Shell  group,  petroleum 

Interests 96,  98 

refinery  at  Curacao 103,  446 

Bubber,   exports 314 

production    in    Ciudad    Bolivar 

district 309-314 

Bubber   goods,    market 430 

Bubio,  coffee  plantations 190 

Saba  Island,  sulphur  mines 443 

Sack5,   factory   at   Caracas 173 

See  also  Bags  and  sacks. 
Salesmen's    routes,    Maracaibo    dis- 
trict   196 

Salt,  mine  near  Merida 213 

production  in   Dutch  West   In- 
dies   442 

Samples,  customs  treatment 401 

San  Carlos   (Cojedes),  pastures  for 

cattle 109 

population,   elevation,    tempera- 
ture   . 235 

road  to  Valencia 270 

San  Carlos  de  Zulia,  importance  in 

transportation 189 

San    Cristobal,    capital    of    Tachira 

State 189 

San  Cristobal  Oilfields  (company)..  102 
San  Felipe,  description  of  town —  240 
population,    location,    tempera- 
ture   - -—  236 

road  to  Puerto  Cabello.- 270 

San  Felix,  port  on  Orinoco  Biver —  287 

route  to  Tumeremo 291,292 

trade    figures 381 

Ban  Fernando  de  Apure,  headquar- 
ters of  cattle  company 110,264 

number  and  character  of  firms.  276 


Pftg** 
San    Fernando    de   Apure,   road    to 

Cagua 132 

San  Fernando  de  Atabapo,  descrip- 
tion of  settlement 282 

nut  plantation  in  vicinity 283 

Sanitary    preparations,    importation 

free  of  duty 393 

Sanitation,  Caracas,  measures  insti- 
tuted   119 

Inspection  and   regulations 27 

La    Guaira,    modem    improve- 
ments   135 

to  combat  tropical  diseases 16 

Valencia,  measures  of  Branger 

brothers 263 

San  Juan  de  los  Morros,  outlet  to 

llanos    country 132 

San  Lorenzo,  oil  refinery 96 

Santa  Barbara  &  El  Vigia  Bailway, 

operations 219 

Santa    Barbara    oil    wells 99 

Santa     Bita,     goat     farming,     coco- 
nut plantations 189 

oil    well 99 

Santa    Bosa,    oil    well 99 

Sardinate  Biver,  petroleum  deposits.  92 
Sarsaparilla,     Ciudad     Bolivar     dis- 
trict  w 322 

Sawmill,    Carupano 163 

Seboruco,  ancient  copper  mines 191 

Segovia  Highlands,  land  suitable  for 

fibers 76 

location 233 

topography 10 

Servants . 26 

Sewerage  system,  Carcas 121 

Shipbuilding,     schooners     built     at 

Curacao 441 

Shipping,  careless  handling  of  cargo.  169 

Carenero  port  facilities 143 

Carupano  port  facilities 161-163 

Carupano,  shipping  movement-  163 

Cumana  port  facilities 159 

Cumana,  shipping  movement 160 

Curacao,    shipping   movement 464 

effect  of  war-time  restrictions —  272 

Quanta  port  conditions 148 

instructions  for  exporters 394 

La  Guaira  figures 140 

La   Guaira,  lines  calling 139 

La  Guaira  port  facilities 136 

Maracaibo,  steamship  service 197 

Orinoco  Biver 289-291 

Puerto  Cabello  port  facilities..  242 
steamship     lines     touching     at 

Venezuelan  ports 332-334 

Venezuelan  Navigation  Co 165, 166 

Willemstad  port  conditions 440 

See    al80    Harbors ;    Steamship 
service;   Transportation. 

Shoes,   market,   Caracas 170 

production  at  Maracaibo 222 

shops    in    Caracas 176 

shops     in     Valencia,     Barquisi- 

meto,  Puerto  Cabello 262 


470 


INDEX. 


Pact. 

Shops  and  factories,  small,  number 

in    Caracas 179 

Bllva  district,  petroleum  concession-  101 

Silver,  stock  in  YeneEuela 382 

Sinclair  Exploration  Co.,  petroleum 

interests 102 

Skins.     See  Hides  and  skins. 

Soap,  factories  at  Maracaibo 221 

^    factories  at  Puerto  Cabello 261 

factories  at  Valencia 262 

manufacture,   general   reference  115 
manufacture  and  importation  in 

Caracas  district 177 

Social  conditions 23 

Soda,  deposit  near  Lagunillas 213 

mines  at  Iios  Ipures 156 

Soledad,  road  ta  Barcelona 156 

South   American    Copper    Syndicate, 

mines  at  Aroa 248,244,257-259 

Southern  Oil  &  Transport  Corpora- 
tion, petroleum  interests 102 

Specifications,  road  building 850-352 

Stamp  taxes  on  drafts 383 

Steamship   seryice,   lines   (ailing   at 

Quanta    148 

lines  calling  at  La  Guaira 139 

lines  calling  at  Puerto  Cabello-  243 
lines     calling     at     Venezuelan 

ports    332-334 

lines  calling  at  WiUemstad 440 

Orinoco    River 289-291 

Venezuelan  Navigation  Co 165,166 

vessels  calling  at  Maracaibo 197 

Bee  aUo  Shipping;  Transporta- 
tion. 

Steel   products,   imports 427 

market 425 

Stock  market,  Maracaibo,  companies 

listed    221 

Street  railways,  Caracas 123 

Carupano 158, 163 

Maracaibo 188 

Valencia 238 

Sucre  district,  petroleum  deposits 92 

Sucre  Oilfields  (company) 102 

Sucre  State,  extent  of  territory 153 

Sugar,  exports,  Maracaibo  to  United 

States 206 

exports,  Puerto  Cabello 248,  249 

exports,  Venezuela  as  a  whole 67 

industry  in  Caracas  and  vicinity-  171 
Industry  in  Maracaibo  dis- 
trict    206-209 

production     in     Valencia     dis- 
trict    249 

Sulphur,  mines  on  Saba  Island 443 

Sun  Oil  Co.,  petroleum  interests 102 

Syrians,  position  in  commercial  life.  22 

Tachira  Oilfields   (company) 102 

Tachira  Railway,  operations 218 

Tachira    State,    geographic    descrip- 
tion    187 

Tanneries,  Caracas  district 177 

general  reference 115 

Maracaibo 222 


Page. 

Tanneries,  Puerto  Cabello 261 

Valencia 262 

Tanning    materials,    general    review 

of  resources 77 

Tariff,    duties,     agricultural    equip- 
ment   46 

duties,  bags  and  sacks 416 

duties,  cigarettes 64 

duties,  gloves 426 

'    duties,    meat    and    dairy    prod- 
ucts    422 

duties,  motor  vehicles 354,  356 

duties,  optical  goods 430 

duties,  rubber  goods 431 

effect  of  tariff  on  domestic  man- 
ufacturing  116, 172 

general  account  of  system 387—402 

method  of  assessing  duty 5 

provisions    of    tariff    in    Dutch 

West  Indies 454 

Taxes,  automobiles  and  trucks 357 

internal,  on  tobacco  and  liquors-  393 

petroleum  developments 104 

stamps  on  drafts 883 

Bee  also  Revenues ;  Tariff. 

Telegraph  service 6,  7 

Telephone  service,  Caracas 124 

cost  of  service 27 

Valencia 238 

Temperature,  Ciudad  Bolivar 284 

Texas  Co.,  petroleum  interests 102 

Textiles,     market    in    Dutch     West 

Indies 454 

Bee  also  Cotton. 

Theaters,  Caracas 121 

Tiles.     Bee  Bricks  and  tiles. 

Toas  Island,  coal  deposits 214 

Tobacco,  classes  and  grades 58 

internal  taxes 893 

production  and  consumption 59 

production     in     Valencia     dis- 
trict    253 

regions  of  production 68 

Tocuyo,  road  to  Barquisimeto 271 

Tocuyo  River,  characteristics,  region 

drained 234 

lead  deposits 79 

navigation 271 

Tonka  beans,  exports 320 

production    in    Ciudad    Bolivar 

district 319 

Tools,  market 426 

"  To  order  "  shipments 167, 168,  396 

Topography,    Ciudad    Bolivar    com- 
mercial district 278-281 

coast  line-. 9 

Curacao 434 

effect  on  road  building 129 

main  inland  di^sions 9 

Maracaibo  commercial  district —  183 

mountain  groups 9 

"Oriente"  region 168 

plains 11, 14 

Puerto  Cabello  and  Valencia  dis- 
trict  233,234 

river  systems 12 


INDEX. 


471 


Page. 

Torbes  River .« . 184 

Toyar,    market    center    and    trading 

place. 191 

Tractors,  American,  in  Valencia  dis- 
trict         248 

increasing  use 30,  45 

Trade  lists,  available  at  Department 

of  Commerce 457 

Trade-marks,  procedure   in  register- 
ing         410 

Trade  methods,  Caracas  district 166, 

167, 168 

Ciudad  Bolivar 329 

Curagao 449 

general  discussion 403-415 

Maracalbo  district 225-227 

progressive  tendencies 30 

Puerto     Cabello    and     Valencia 

district 273-275 

Trades,  representation  in  Caracas — .       180 
Trails.     See  Roads  and  trails. 
Tramways.     See  Street  railways. 

Transportation,  Caracas  city 123 

Ciudad  Bolivar  district 289-294 

general  discussion 332-357 

Importance  in  Andean  States 192 

Puerto    Cabello     and    Valencia 

district 266 

See    aleo    Railways;    Shipping; 
Steamship  service. 
Travel,  accommodations  at  Curasao.       455 

conditions  in  Orinoco  Valley 294 

routes   to   interior   from   Mara- 
calbo   ' 193 

Treasury,  National,  outline  of  func- 
tions          37 

Trinidad,  food  products  from  Ciudad 

Bolivar  district 297 

trade  in  tonka  beans 320 

use  of  Venezuelan  salted  meat 111 

Trujillo,   location  and  economic  im- 
portance         192 

Trujillo  Oilfields  (company) 102 

Trujillo    State,    geographic    descrip- 
tion  - 186 

Tucacas,  description  of  port 243,  244 

Tumeremo,   route  to   San   Felix..  291,292 
Turiama     Bay,     plan     for     packing 

house . 109 

proposed  railway  from  Maracay  -       338 

Unare,   coal   mines 150 

United   States,  advantages  in  trade 

with   Venezuela 170 

future   of  trade  relations   with 

Ciudad  Bolivar 881 

position  in  Venezuelan  trade 2 

purchases  of  sugar  from  Mara- 
calbo   206 

purchases  of  Venezuelan  cacao.  57 

purchased  of  Venezuelan  chicle.  819 

purchases  of  Venezuelan  coffee.  52 
purchases  of  Venezuelan  copaiba 

balsam 822 


Page. 
United  States,  purchases  of  Venezue- 
lan   sugar 67 

sales  of  meat  and  dairy  products 

to  Venezuela 422 

sales  of  motor  vehicles  to  Dutch 

West  Indies 446 

sales     of     motor     vehicles     to 

Venezuela 354,  355 

sales  of  rice  to  Venezuela 68 

trade    with    north-coast    coun- 
tries         867 

trade  with   Puerto  Cabello  dis- 
trict   . 276 

Upata,  capital  of  Plar  district 292 

Valencia,  manufacturing  industries.  262 
general  description  of  city  ..  287-239 

number  and  character  of  firms.  274 
population,    elevation,   tempera- 

ture 235 

road  to  Caracas 130 

road  to  Nirgua  district 270 

road  to  Puerto  Cabello 270 

road  to  San  Carlos 27Q 

Valencia  commercial  district.  See 
Puerto  Cabello  and  Valencia. 

Valencia   Electric   Co.,   operations 238 

Valencia  Lake,  location 233 

Valera,  commercial  importance 192 

Venezuela  Commercial  Co.,  opera- 
tions        274 

Venezuela  Meat  Products  Syndicate, 

cattle  interests 110,  264 

packing     plant     at     Puerto 

Cabello 242,  262 

Venezuelan     Falcon     Oil    Ssmdicate, 

petroleum  interests 99 

Venezuelan   Navigation   Co.,   general 

account  of  operations ,  165, 166 

service   at   Maracalbo 197 

service  on  Orinoco 289 

Venezuelan  Oil  Concessions,  petro- 
leum interests '  98 

Venezuelan  Potable  Water  Co 120 

Venezuelan  Sun  (oil  company) 102 

Venezuela    Oilfields    Co.,    petroleum 

interests 102 

Venezuela  Sugar  Co.,  operations 206,  207 

Venezuela  Telephone  &  Electric  Ap- 
pliances Co 124 

Ventuario  River,  character  of  val- 
ley   ^ 283 

Wages.     See  Labor  and  wages. 

Warehouses,   La  Guaira 137 

Maracalbo 198 

Water   power,    plan   for   Caroni 

Falls 288 

Waters,  law  relating  to «        75 

Water  supply,  Caracas 120 

Water  transportation.  See  Ship- 
ping; Steamship  service;  Trans- 
portation. 


472 


INDEX. 


Page. 
Waxes,    Tegetable,    Cludad    Bolivar 

distriot 828 

Wearing   apparel,   manufacture   and 

importation  at  Caracas 176 

tailoring    and    Importation    at 

Maracalbo 222 

Weights  and  measures,  Curacao 486 

Venesuela 3 

West   India   Oil   Co.,   petroleum   in- 
terests   102 

Wharves,  La  Guaira 136 

Maracaibo 198 

Puerto  Cabello 243 

Wheat,  production  in  Maracaibo  dis- 
trict   210 

Willemstad,   character  of  port  and 

town 440,  448 

Wireless  service,   Curacao ..  456 

general  account,  Venezuela .  7 

station  at  Maracaibo . 188 


Page. 
Woods,  Cludad  Bolivar  district..  807-309 

Woodworking,  shops  at  Maracaibo 221 

Yaguaraparo,    merchandise    handled 

at  port 164 

Yaracuy  State,  distribution  of  popu- 
lation   236 

Taritajgua,  description  of  town 240 

Yuruary  River,  gold  deposits 79 

Zambapalo  oil  well 96 

Zamora  district,  petroleum  conces- 
sion    101 

Zamora  State,  distribution  of  popu- 
lation   286 

lands  open  for  colonization 74 

Zulia  Oilfields   (company) 102 

Zulla  River 183 

ZuMa  State,  coal  deposits 79 

geographic    description ..  186 


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