Show I I liON CONTROLS IN COSTA RICA hit t Concern Is Alleged to Have Complete e C Control of the Country DEPENDS ON SUGAR MARKET of United Fruit Co Sis Practically Treasurer of the Republic t BY BT FREDERIO J J. HASKIN HASIN AN SN JOSE DE rYE COSTA COST A RI RICA A May tay 15 No 5 No other country in Latin Ji k is is s so o thoroughly bh c controlled 1 d by fo foin for for- lien in interest as Costa Ri Blea a It is 33 lieu said that the r country is s a 3 satra satra- y y of the fhe United Fruit company and andi i i some respects this is not so 50 vEr very verj o far ir aT irom tho truth thith That reat or eor ration Tation has harns developed the banana banan J of the country until Costa Rica Bica as much och dependent on the banana ket for its Us prosperity as Porto I o eo is I dep dependent on the sugar martt marItt mar mar- Itt tt v. v When it is is' recalled that the an an- i production i tiou of bananas amounts to early ton ten million bun bunches hes that it is industry which has been developed tit ch by the United Fruit company nd a tha that industry i. i is maintained by it th there seems to toV o- o most S entirely it or V just Just ground rO for tho the dc designation But Uio tho Ule domination of the United T if company campan does does' not stop there It ith ith its allied c d interests interests practically Ii t the 1 railroads ot o of tho republic and anel Tactically controls them today Pur- Pur rm rii re LUnor nor C C. C Keith Koith president of ofTe Te Fruit comp company ny and head Hue tIe e which have havo built the pra the treasurer tIie l e republic i COata Rica for years I c carried a heavy beary foreign debt e ti time it t defaulted in its i iri-i fot tind and w TV-IB TV e B put on- on n tho the blacklist by y British Corporation of Foreign loreign db There Ther were not funds ugh juch to bo be had bad d to meet the int interest rest c ch lt ti to keep up a reasonable t Is Banker Finally it it wap agreed e by tho foreign that it if the tIle government o t t ta Rica Rila would p permit Minor U. U i. i ith to act ad as banker for tor tho loan bieh amounts to approximately ci eight ht pillion dollar oll money would be lur- lur Hd to to satisfy the old bon boni tJ Dew nev belll being issued the new to o bear 4 01 per pcr cent inter interest t. t for fora n a ear car nom January 1 1911 and C G cr cent interest from January 1 19 1921 1 rede redeemed med Ione 1 was wa advanced advanced ad addition it to the amount necessary ia qT q taRe take u UJ the old d b bonds bonds- iid and all ac- ac J interest FO so as to bring brine tho the thon n w Idan Idea up tt to a total of approximate approximately ly ten million nillion dollars the tho additional funds being provided pro for the thet interest t ments of If f the immediate f future ture and for certain internal improvements im im- im e DrO addition Costa posta Rica nc negotiated another r with I Frei French h Bankers in oidor tc to secure funds to pay payoff off inter inter- 8 al aj o obligations The rhe int internal ire e 08 ics pledged to lo secure the French tJ B But Ut t tho the Keith Joan loan is the para para- b ono one an and 1 at it least Si so ilO long as asas as r remains unpaid Keith Koith is is a 1 t to 0 be be with But Buthi in In Costa Rica aro are such t he is 1 perhaps more mor interested in ilL J prosperity than titan any other man id d this this makes it certain tha bo will nothing i i to place the republic on one one e 0 e b back k track l' l The Tho e Costa Ricans like foreigners foreigner I lev V n r card th their r stable government boin th the product of the thc foreign D invasion Tho The foreigner ith th capital IB iR heartily welcome bo bo- e e e. e the they fa say w with nith th combination of ot Capital foreign brains and naYe nayo na na- yo Ye natural weal wealth h there is no Wa way i Pr prosperity al and d growth In n n this attitude tho CO Costa ta Rican ems ms to be b than his his' compeers i th other of Central merica morica Ho He admits that th the foreign foreign- n. n jis ns getting rich in Costa Rica But j Continued on p page ge 0 I. CORPORATION CONTROLS IN COSTA RICA Continued from Pa pare Dairo e 1 what i if he heis iet asks s the Costa Rican Bican he ho likewise J moneY money moneT for forus forus or orus us Is he ha not bettering the condition of our labor abor as well as of our treasury treas troas- ury f Labor fG fc 1 a a. Day When Whon ono goes out on the banana t plantations and sees Bees laborers g getting ono one dollar a day in good Amori American an gold rold for their work where on once 0 G they thoy pot ot 25 cents eMU h he be frets feels that the Costa Rican 5 conclusion has Somo some degree ol or reason back hack of it ft r Tho The stimulation that the banana industry has given the country is is' in evidence on on every hand liand and though the bi birr fruit com com- t sins Bins m may be beas 35 as s scarlet and In som W Trays ys th they y must be if the half of what one hears is even approximately true it must be bo credited with a measure meas meas- ure ire of th tho peace and prosperity that obtains throughout hoi t the tho country The government of Costa Rica Ica has not always enjoyed healthy financial conditions if indeed its finances nan cs aro are pound today J In Tn n the thc early th the tho was the victim of that same amo same merciless foreign exploitation that hat that characterized nearly early all the Cera- Cera tra ral Anglican American republics at tb that t period In n 1871 1811 it borrowed nearly five million dollars at t least it an rave gave its bonds for that hat amount and got crot about bout The full MI assets of the nation na- na na tion lon even n th the national domain damain were ivere t as security for tor th the debt and the he interest charged ca Was was' 7 per cent centon centon on on the face value of the thaI loan lean The next year a lo loan n of Nearly 12 additional was waa ne negotiated the getting 82 ea each h dollar borrowed and andr obligating it itself to pay 7 per percent cent ent interest on tho the face faco value The liquor tax tar the coffee tax taxi and the thenet thenet net earnings of the railway were pledged to s secure cure this thi loan The he government government gov gov- defaulted on both loans in 1874 and it was waa not until 1885 that thin things s were adjusted 2 again ain And Ana then it t was wae was Minor C. C K Keith who put the deal through Ho Ire persuaded the bondholders bondholder er ore ers to accept now bonds in lieu Heu of the tho old ones at the rate of 50 cents on the ho dollar the interest ou on the new now bonds to be bo i 5 and 4 1 per c of 7 per per cn as on the old ono ones Defaulted in 1895 In spite of this concession Costa Corta Rica Bica defaulted a again ain in in 1895 and again the interest was cut nearly In half haW Again ain in ln- ln l 1901 Ol it li defaulted and continued to default until when a a. new foreign Loan was wag ne negotiated and nd today the tho interest in JD- terest charges with mth Keith as tb the banker bank bank- er of the tho p pledged edged funds are being met promptly and aDd tb the foreign bondholders bondholders' bond bond- holders holders' council has haR expressed the hope bope that in in view view of tho the heavy beavy sacrifices that have been made by the bondholders ers era Costa Rica will atone for it its ch cheek check k- k ered croci financial past by promptly fulfill fulfill- in lug ing its obligations in the tho future The Tho government has enacted a corn com railway law that will at once onee protect the railroad builder and the nation It provides that every every- railroad railroad railroad rail rail- road built under a concession shall be become come the property of the Jov government r ment in n ninety ninety nine nine years ears and that all disputes dis putca between t the tho e government and tho railroad builder must bo ho settled in the thc courts of Costa Rica Bica and under its ita laws aws No railroad concession shall constitute constitute con con- a mon monopoly p ly and and the tho government re reserves orves the right to build or grant concessions concessions con con- cessions for competing roads All AU roads may Tony maybe be bo taken over by the government if f its nc necessities or welfare demand it There are aT many companies of for- for in in Costa Rica Bica who are engaged ed in III n exploiting lands i ap appealing ealin to the he small investors to come down lown here and buy farms These advertisements are usually about on a par with those of a liko like nature in the United States In n the first place they the overdraw tho picture They give giro ive all sorts of data datu that tend to make it appear that a aman aman aman man can make a fortune in a year or two For jor instance they may picture the tho no profits of ot banana farmin farming as bein being from rom to per acre acra a year yet ct the he most experienced banana grower is s satisfied if ho hii c can n show a R profit or 50 per acre And it may be added that the superintendent of a banana farm lann l of ot the United Fruit compan who can show how an era a average e profit of of or that much J per pr acre will get et a U well Well done dono message ftc from headquarters British Consular Agents There are no closer students of living liv- liv in ing ng conditions to to t be he found faund I than nan tho the men men in in tho the consular service of the British government always al al- al ways have bate their oyos eyes out for openings for or opportunities s for British subjects Their heir Their reports to the home homo government go in n the case caso of Costa Rica Bica are that it is I not lot a place for tho man looking for a job ob either cither ns na 8 a laborer as ag an artisan or r as a clerk cleric The declare that about the ho lowest that a man with a family of four can live lire on comfortably in Costa Rica Bica i is j a month Prices are arc even bi higher her here bore than in the United States Butter Buttor sells for lot about 00 GO cents I a pound Beef brin brings a n. price that thai would make mak the tho prices in in the tho United States seem Beom reasonable and the same is true truo of pork One the whole the advice to is not to come to Costa Rica Bica- to look for openings s of ot any kind unless they havo have mono money enough to carry them further Costa Rica Bica has bas just reason to bo be proud of t the tho o place it has jias made for itself in the Central American family of na na ima- tons It ba has lIas peace its people arc are prosperous something of the tho spirit o othe ot of the true republican form of government govern orn ment has bas been caught and the future seems to to- tobe bo be one ODe to which the time republic and its people can look forward with pleasant anticipation I CARIBBEAN Monday POLITICS Prosperous Salvador |