The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-10-11


to his advent in Peru that unhappy country |
was repeatedly ravagod by revolutions I'm
fact. revolution had become a regular line
of business in that republic. Whenever the
"outs" ran low in funds, they would drive
out the Gins" and take their turn at the
treasury. The ms always went out rich,
and were never called tOan account 10y their
SUCCESSORS, who were almost invariably too
well bred to know anything about arth-
metic, bookkeeping. or accounts. or about
anything except looting the treasury. BE-
sides. IL was understood all around that
there was to be no inconyonicnt investigation
of the conduct of gorgcd and surfcitCd
party who retired with courteous alacriiy
before the hostile approach of Il lean and
hungry one.
Such state Of things would never do FOR
MEIdGs In order to build his railroads and
have his contracts carried out promptly by
the Peruvian Government. that Government
must be stable and respected, aud the public
credit be kept at par. MElGGs's method of
procedure was very suplc he paid the
ringlcadcfs OF the rcVoutiuuists so well To-
keep quiet that they could not overthrow
the Government without loss to thcm-
selves. There has been but one attempt az
revolution since his advent in Peru. ia that
disturbance his friend, Gen. BALrA, was
| killed..
This systcm Of wholesale bribery and
blackmal. and MECGs enormous success
with the ArcQuipa road, stimulated the adj
vcnlurcrs and conspirator- Of Peru to strike
| for higher hrhcs than they had yet re-
| cciVcd. They secretly formed q comliua-
| ton against MElGos. who had planned
! vast scheme Of railroads for Peru, 50 that
when he sought to get his contracts from
| the Government, ne encountered a fufmidn-
| bic opposition. ToOVcrcome this he resotted
to colossal bribery. Officers OF the Govern
mcnt and competitors whom he bought on
| made fortunes out OF him. In this way he
secured contracts for building railroads
which altogether were 1907 miles in cN-
tent. and for which he was 10 receive
l2G0O0.0OO. lie set to work to construct the
roads with characteristic energy, but the
cost in many cases exceeded his estimates
and, on the whole, his vast scheme turned
out TO bc financial failure. both To himself
and the Government. Nearly all the roads
are. in fact, useless. They run through re-
gions which furnish neither passengers nor
freight. and the receipts do not begin to paw
I lilt running tNitbNhH. Wv wv Nv NAi'i
Moqucgua road there is only one train %
week. On the Arcquipa and Puno road there
are usually but two trains n week The
Pacasmayo road is also failure, and the
Chinbote road-whch was projected Ia
open up what was supposed To be u rich
mining region that has since been discover
ed to hc If little value remains unfinished
The most disastrous failure ~ all was tho
Callao. Lima and Oroya road. which Is COM
plctcd to within about forty miles of Oroya
Tho entire length Of the road is 100 miles
This road was originally projected under
the pretcxt that the grain and rich product
of the interior could bc brought over IL e
the coast at small cost for transportation
The work Of constructing the road Wa
enormously difficult and costly. The grade
average four and a half per cent, which en-
ginccrs say will preclude it from ever loin.
u paying road. The expense OF constructing
! this road absorbed the entire contract price
: and, in addition MEIGGs was obliged to con
I sumo in the work the profits Of other con
+ tract- and the advances made TO him 10y th
"a Government on agreements for now roads
= In the latter part OF 1874 British capital
4 lists who had lent the money TO Peru for al
T. these enterprises, and the British publ
+ that had bought Peruvian bonds, began e.
n feel great anxiety abou. their investments
: This anxiety was stimulated and kept aliN
a by English engineers and travellers in PERI
n who began to write to the British paper
a about the real character Of tho roads, an
their worthcssncss in financial point d
= view This rendered it difficult for IN
T. agents 81 Peru in London 70 sell their hond'
\ the price Of which, Ia December, 1874, IA
m down to 81 and 81. MEIGGs had taken thcs
r. bonds from the Government at from 70 10 :
"A which was the original price ofissuc and Ia
il sent them to London to be disposed II {
= the best procurable rates. As they were +,
i the most part not sold TIL 1873, when Il
~ price had dropped very low and as he hu
y. 70 pay heavy commissions, he lost emo
p mously by the transaction. Tho Cover
n mont then gave him "a large amount in q
On glncers' certificates Of work done, which
~ Intoxicated with bankers IN Lima at exc
Al htant rates There are no usury laws
H. PERU In 1876 the price 81 Peruvian hon'
nj in London fell to- -, and at last they b.
m came unstable at any price. Work on ii
n MrIGGs roads was then actually, thout
It, not nominaly, suspended.
II, At this crisis MWGGs projected tho pli
Oh continuing TIC OiN. - l'AN wv NAi' +Ait't
he 10 the famous mines OF Crrro de Pasco, an
lc to tunnel the mountains for the purpose
IL draining the old mines which had h-
nj drowned out for ages He got contrn
If with the Government for this purpose,
~, which he received an advance Of their i
nd ternal bonds of the nominal value
Inc S5,OOO,0OO 1t is stated that he had 10 ~
of enormous brides to get this project throue
a. MrIGGs now deposited sl,5oo,0OO with t
m Tribunal OF Commerce, and through one
# his companies, called the Public Wor
~. Company, issued about million dollars
cd paper payable ON demand.
,lo In order to make this paper acceptable
nd the people, he proposed Ia raise the value
die the paper currency by selling exchange
London at better rates than any OF
m bankers or merchants gave, and held {
for the idea that, a. these funds would be us
"a for the development Of the country,
,tv value Of the paper could not fail to be