The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1877-10-20

y
, with bankers in Lima at eXorbtant rates
f There are no usury laws in Peru. In 1876 tn,
I price Of Peruvian bonds in London fell to IL
and at last they became unstable at any price
I Work on ,he Meiggs roads was then actually
: though not nOminally, SUSPENDED.
= AT this crisis Meiggs projected the plan
continuing the Oroya road over the Andes Il
the famous mines of Cerro de Pasco, and e
tunnel tue mountains for the Durpo e of drain
= ing the old mines which had been drowned
out for a"es. He got contract with the Gov
eminent for this purpose, on which he reeeiv
ed an advance of ihcir internal bonds of the
nominal value of $5OOO,OOO. 1t is stated thai
ne lad to pay enormous brides 10 get ibis pro
, ject through Meiggs now deposited 81 800,
with tie Tribunal of Commerce, and through
one of his companies, called tle Public Works
} Company issued about million do RS In
} paper pabaole on demand.
I In order TO make this paper acceptable 10
the people, he proposed to raise the value Oh
the paper currency by selling exchange on
! London at better rates than any OF the bankers
or merchants gave, and held ont the idea that,
as these funds would be used for the develop
mcnt of the country, the value of the paper
could not fail 10 be increased. He attempted
to procure financial support both in New York
and London, and caused it 10 DC understood in
Lima that such support had been secured. Fail
| ing 20 get the cooperation of any banker he be-
gan to draw bills ON his brother in London at
ninety days sight which were accepted to
-ome extent by The smaller buyers of exchange,
and the current of confidence began TO run in
Meigg's favor at Lima But in August last it
became known that drafts made by Meiggs on
his brother in London were not paid at matur-
ty. This was "a terrible shock. Meiggs then
made his last rally, and succeeded in getting
the government to guarantee his emission OF
paper money to The amount of five millions, he
returning to them the five millions OF bonds
which they had advanced to him on account
o, the OIoyl and Celro de Pasco road But
the relief came too late. The prestige and the
credit of Meggs had received IA severe blow.
The value OF Peruvian paper dollar, or sol,
in 1915, was ninety Gems in gold. After the
government had guaranteed the issue of paper
by Meiggs, the value of The sol fell to thirty
six cents.
The breaking dowd of his schemes and Of
his credit broke down Mr.. MeiSgs's health.
He had previously had two strokes o. paralysis,
and the shock which this last blow gave him
struck to his vitals. In the crisis of his illness
his enormous jobbery began to be exposed. The
eminent guaranteeing his paper had been
bought and paid for. DR.. La Puente a lawyer,
was accused of having received half million
of dollars to get the decree through, and it is
reported that the president of Peru, Gen. Mari.
ano IgnaciO PradO compelled La Puente to
Idisgorge nearly four hundred thousand dol
lars,
As Meiggs had no moral sense himself, he
continually made the mistake of selecting I'M
scrupulous men for his most intimate cOnfed.
crates These men never hestated to betray
him when they imagined 1t to be to their
interest 10 do so. He was absurdly generous
He had no sound business habits, nor was he
guided by sound business principles. He
would take the most reckless risks and crest 10
his audacity and luck to bring him through.
His career In Peru was a calamity to tie coun-
try. The extravaganza of living which he in
itiated and developed, the ,reck}essness of ex
oenditure into which he lea tire government
the unnatural expansion of trade which the
disbursement of such vast Sums of money Occa-
stoned, caused the financial crisis which came
upon Peru in 1874 and under which she is
still suffering. r..
There is likely't6 be discord among the
many executors of Meiggss will, as their inter-
esis are pretty certain to clash. The executors
stehis sons Henry II. and Minor K Meiggs, j.
hickus, his ne.hew, and Alexander Robertson,
b merchant IF Lima married to Meiggs's
daughter; VIM. H. Ciilley, the superintendent
l6f all of Meiggs's railroad and mining enter
IpHses Charles Rand, an old attache ana friend
l6f Meiggs and Charles Watson, who lately
married Meiggs's niece. AT the time Of
Melggs's death, Watson held his power of at
lager; but it is well known that his views are
mot in harmony with those of the Other execu.
tors
No one ever knew just how much Mr.
Meiggs was worth. His income was supposed
to be exceedingly large He was called Monte
Cristo all along the western coast of South
America He had a large amount of real es
tate, which was bought for the purpose Ofturn
ing it into villa residences in the vicinity Of
Callao and Lima. At the time of his death
this property had ceased to be of much practi-
cal value He also had boulevard property, on
which he had spent good deal of money. His
immense sugar estates were disposed of some
tine before his death. 1t is expected that his
fortune will turn out to be a gigantic wreck,
ION which but little can be saved.
Mr.. MeIggs was man OF imposing appear
ance He was about five feet eight inches IN
height, broad shouldered, muscular, weighed
about 225 pounds, and had the biggest fists and
largest head in South America. His eyes were
gray, deep set, piercing, and kindly in express
| sDn. He had square Jaw and chin a big nose,
large mouth, and firm-closed lips. His coun-
tenance bore the impress of power. He would
have been singled out in any company as a
superior man. He was great mathematician,
and so remarkably quick at figures that the
Chiians and Peruvians are fond of telling sto-
rss about his wonderful arithmetical perform
arces.
Mr.. Meiggs longed to return to the United
Sntes, but could never get all of his forged pa
rol No Sapnrp him AGAINST
cmion. He paid all the poor people in San
Francisco who had claims upon him, and large
suns to others. After many years the Legisla-
tIre of California, under the pressure of influ-
emes which Meiggs knew so well how to bring
tobear, passed special act relieving him from
Oh, penal consequences of his crimes. But
wien he was thus free to return TO the United
States. he did not avail himself of the privi-
! lee, for his fortunes had begun TO wane, and
without the prestige of great success and vast
wealth, he could not face the odium which he