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Show Sl 1 L-J ''VS l DANIEL RV"IIJES :7i'ciZn? T J'ofTrZ 7Tcj7mT7 I3HWft.MMK3g S A RESULT of having lost its Pacific II seaboard province Gf Antofagasta, follow-jL follow-jL R ing the war with Chile in 1879, Bolivia JF. B found itself shut off from the sea and de- I pendent upon its neighbors for an outlet gl$Sr$)8g$a Great as was the Mow to national Hi JSiU uJf5 n P"de' ,ne Bolivians felt the loss of EIbI Antofagasta more keenly than even the 8 ISnSbiwIsfflSl French that of the Rhine provinces, and a rnen1 serius as was tne loss to the national G'rft3Sl treasury of the revenues derived from 83? u the rich nitrate fields of the lost province, BQSb gufl yet the blow was perhaps less heavy than jl tne Bolivians themselves then thought. It changed entirely the country's economic eco-nomic outview and pushed it forward into lines of development de-velopment which in all probability would otherwise have been delayed for many years. Even prior to 1879 the nitrate fields were for the most part owned by foreigners, for-eigners, the Bolivians themselves being engaged in gold and silver mining. But the taxes from nitrate production produc-tion paid in a large measure the expenses of gov- eminent and with the loss of this revenue the state was forced into consideration of the economic eco-nomic development of the country in other lines than gold and silver production alone. The settled part of Bolivia was then and is to a large extent yet, that high table-land, one of the most spacious and elevated plateaux to be found on the globe, which lies between the western west-ern and the eastern Andes. This table-land ex- tends from about the Argentine border in the south into Peru on the northwest, and is from 60 to 150 miles in width. On the Chilean border the western Cordillera is In reality less a mountain range than a line of huge cliffs. The tableland table-land is itself 12,000 to 13.000 feet clusively settle all the questions arising therefrom, that on October 20, 1904, at Santiago, San-tiago, plenipotentiaries of the two countries signed .the treaty of peace and friendship which put a final end to all disputes between Bolivia and Chile and secured in addition concessions to the former. In the preceding year, 1903, was signed the treaty of Rio de Janeiro with Brazil. "Under this treaty an exchange of territories between the two countries was effected. Bolivia Bo-livia acquired on the southeast the strip of auove sea level anu slopes graauany 2,000 or 3,000 feet up to the crest of the western hills and then falls away abruptly nearly three miles down, 15,000 feet, to the desert land lying between the foot of this immense line of cliffs and the Pacific ocean. To the east of the table-land lies the high Andes, the Cordillera Real, rising ris-ing in Illampu. Illimani, Ancochuma and Sajama over 21,000 feet. North, east and south from the Cordillera Real the land falls away to the great Ama7on and Parana plains. This country, three-fourths of Bolivia in area, is but little settled, but is in natural resources and soil one of the richest parts of the world. It could easily sustain an agricultural agricul-tural population greater than the whole present population of South America. UALOA01HG PAILS (IT GUAQUI, BOLIVIA bear six per cent, interest and the interest in-terest will not be guaranteed by the government. The second-mortgage or income bonds run for 25 years, bear five per cent, interest and are a second sec-ond lien on the roads. Under an agreement made in London Lon-don in 1907 by the Antofagasta and Bolivia Railway Company, which is a British corporation, and Speyer & Co., the Antofagasta Railway Company Com-pany agreed to guarantee the interest inter-est on the line from Oruro to Viacha i and in addition to make a payment to the concessionaires for a majority of the line's stock. This agreement made necessary the law, mentioned above, signed by President Montes of this agreement is to make the new lines serve as feeders to the Antofagasta line instead in-stead of playing the part of competing lines, as would have been the case had the original program pro-gram of construction been carried out. The Oruro to Potosi line of the original plan would partly parallel the Antofagasta line. It is very probable that a complete merger of the Interests In-terests of the Antofagasta and Bolivia Railway Company and the American concessionaires will be made. The first and most pressing need to Bolivia is railways. This need was recognized to a certain extent prior tu iue 4i wu As far back as June, 1863, the national assembly authorized the president to enter into contracts for the building of railways, and in 1868 a concession con-cession was granted to a citizen of the United States to build a railway from Cobiji to Potosi with a government guaranty of seven per cent, on the capital invested. In addition, the concession conces-sion carried a grant of land one league on each side of the line. A number of other concessions were made in 1869,1873.1874,1877,1878 and 1879. In 1904 the Bolivian national office of immigration immi-gration and statistics issued a volume of nearly 400 pages containing the acts, decrees and concessions con-cessions in aid of railways, covering the years 1880 to 1904. Every effort was made by the government gov-ernment during this period to induce capital to invest in railway construction in the country. Perhaps nowhere else in the world were such inducements in-ducements held out by any country to secure the end sought as by Bolivia, following the termination termina-tion of the war with Chile. These inducements were offers of land, mines, exemption from taxation taxa-tion and customs duties, government guaranties, financial aid and exclusive privileges. But unfortunately unfor-tunately for Bolivia the offers were not made in the right quarter. In its eagerness to secure results, re-sults, concessions were granted to and contracts made with the most irresponsible parties, in many cases mere adventurers without capital or influence. The net result was naturally to retard rather than to help railroad construction. In 1904 all that Bolivia had to show in railways rail-ways as a result of 40 years' legislation and innumerable in-numerable contracts were the Guaqui and the Antofagasta roads. The former gave an outlet from La Paz to Lake Titicaca, whence passengers and freight were transported across the lake by boat to the Peruvian port of Puno and thence by the Peruvian railway to Nollendo on the Pacific. The total length of the road from Alto of La Paz to Guaqui on Lake Titicaca was 87 kilometers (54 miles). The gauge was one meter (39.37 inches) and the rails weighed 18 kilograms per meter about 12 pounds per foot. The Antofagasta, Bolivia's first railway, had a total mileage of 925 kilometers (573 miles), a gauge of 75 centimeters (29.53 inches) and rails weighing 17.40 kilograms per meter, or about 11 pounds per foot. It was not until 25 years after the outbreak of the war with Chile and 20 years after the signing of the agreement of April 4, 1884, which marked the close of that war, althougj it did not con- territory lying between its boundary and the Paraguay river, and Brazil acquired Bolivia's claim to the Acre region on the northeast. The latter territory being considered the more valuable, valu-able, Brazil stipulated to pay a cash indemnity of 2,000,000 sterling. These two treaties were of immense consequence conse-quence to Bolivia: first, in relieving her from the old railway and mining entanglements; second, sec-ond, in securing the construction of the Arica-La Arica-La Paz railway; third, through the loan of Chilean Chi-lean credit in interna railway construction; and. fourth, in providing a cash fund of 2.300,000 with which to guarantee or to begin the actual construction of the trunk lines. Following the ratification of the treaties negotiations ne-gotiations were opened with prominent European and American capitalists and on May 19, 1906. a contract was signed with the National City bank and Speyer & Co., of New York. The contract con-tract was signed in La Paz by a representative of the concessionaires and additional stipulations were made on May 22. Under article III of the contract the concessionaires conces-sionaires oblige themselves within a period of 10 years to construct the following railway systems' sys-tems' (a) From Oruro to Viacha, with a branch to the river Desaguadero, connecting with the Arica line. (b) From Oruro to Cochabamba. (c) From Oruro to Potosi. (d) From Potosi to Tupizi, by Caisa and Cata-gaita. Cata-gaita. (e) From Uyuni to Potosi. (f) From La Paz to Puerto Pando. All of these roads are to be one-meter gauge except the last two mentioned, which, in the discretion dis-cretion of the concessionaires, may be of 75 centimeters cen-timeters gauge. The cost of the railways Is estimated at 5,-500,000 5,-500,000 sterling, including 1,200,000 allowed for the La Paz-Puerto Pando line. The concessionaires are authorized to issue two classes of bonds first mortgage and second mortgage, or income bonds. The first mortgage bonds, which are a first lien, are authorized to the amount of 3,700,000 sterling, bear five per cent, interest and are payable in 20 years. The interest for 2C years is guaranteed by the government gov-ernment of Bolivia. A further i3ue of additional first mortgage bonds to the amount of 2,000,000 sterling is authorized in case the Finn of 5,500,000 proves insufficient to build the lines. These bonds will |