Omaha daily bee., 1898-06-12

They do not understand the Spanish
language nor the people. They cut prices
and often make statements which cannot
be relied upon. II is useless TO send a
man down here who does not understand
the language, and until Spanish speaking
drummefs can be educated as far as selling
is concerned I should think that dealing
through such frms as the Graces and Flint,
Eddy q Co. would be most profitable. These
companies will handle anything, and they
charge a commission on their sales. Every
manufacturing establishment in the United
States should look upon this territory as a
part OF It's legitimate field and get into 1t
as soon as possible. We should at once
begin to educate our commercial travellers
in Spanish and should have some of our
best statesmen going from city to city push
ing American goods. 1t is useless to send
catalogues and pamphlets, for these are
thrown into the waste baskets. One of the
Objectionable features of the trade in the
eyes OF the American is that most Of the
German and English sales are made with
the understanding that the goods are to be
paid for within from thirty to sixty days
after arrival, and that many of the firms,
while perfectly good, do not appreciate the
value of a few days interest and are slow
in settling their accounts. The business
should be done on from thirty to sixty days
sight. This is asked by many of the
American statesmen, and the Peruvians are
gradually becoming accustomed to 1t.
AS far as wealth and business are con-
cerned, 1t seems to me that Spanish America
has the galloping consumption. do not
mean by this that the business done here
is not as great as in times past. 1t is in-T
creasing every year. But 1t is rapidly going
out OF the hands of the natives and into
those of foreigners. This is so not only
with the commercial establishments, but
with every legitimate business that will pay
a dividend or make a dollar. Some Of the
best OF the mines are now in the possession
OF foreign companies. The big sugar
estates, which have made fortunes for
Peruvians In the past, and in which today a
working capital of more than SIT, 900, 600 is
employed, have largely gone into the hands
of the English. Some estates are owned by
Chinese and 1 have spoken Of the large
holdings Of the house of w. r. Grace &
Co. The railways are almost altogether
owned by the English, although the great
coal line concession granted to the. Pacific
company OF New York will give us a big
railway zone in Peru. The oil fields are
chiefly worked by a rich Italian named
Piaggio Of Callao and several English syn
dicates. The chief bakery and brewery of
Lima was started by two enterprising
Observation-Disclosures and Johnston-and sold
out by them at a big profit to an English
syndicate, which is paying large dividends.
How They Do Business In Peru.
AS to commercial business, the Peruvians
have allowed it to go Utmost entirely into
foreign hands. Many of them are ashamed
to be engaged in trade, and they have, as
a people, no business instincts. There are
not a half dozen native firms in Peru which
now do What would be called a large bust
ness. The signs over the stores of Lima
are German, French, Italian, English and
Chinese. There are about 25 900 Chinese in
Peru, the most Of whom were originally
brought here to work the sugar estates and
guano islands. They are now well-to-dC
and many of them have become wealthy
Some of them own the sugar plantations
upon which they shaved and others have
large mercantile establishments here. Tht
Germans monopolize to a large extent thu
dry goods, knick knacks, hardware and min
ing machinery sales of Lima. They ar,
ready to go into anything in which they
see a chance to make money. The Italian.
are the grocers of the city, and you fine
them selling fine groceries in nearly ever!
big Peruvian town. The English sell DIR,
goods, crockery, paints, oils and machinery
and the chief dealers in silks, wines an,
brandies are the French. There are a few
Spanish book stores. The banks are almos
all foreign and the stock owned in the divi
dend paying companies is chiefly in foreigl
hands.
l find that these people. down here ar
not satisfied with the low rates of interes
which now prevail in Europe and America
Good loans can be gotten at 10 per cent an
l and 2 per cent a month is not uncommo
on paper issued for a short time. In som
cases 8 per cent only is asked, but there ar
always commissions which increase the reg
ular interest rates. The pawnbrokers do
big business, and you find them in ever
block. Many of the stock companies pa
good dividends. The Lima Water Work
company pays ~ per cent quarterly, and tn
Lima Gas company, which has a capital c
1000, 900 (silver), pays 5 per cent, and tn
!, probability Is that the stock was largel
watered. The Peruvian Telephone company
which furnishes Lima with its service a
about half the rates charged in America
, cities, gives annual dividends of 10 per cen.
! The capital of the telephone company
, 500, 600. One OF the insurance companie
! here pays dividends of 10 per cent. A -four
{ ing milling company pays s per cent and
wheat warehouse company a like amour
Some of the stock companies which do tn
best are those which deal with or throug
e the government. There is the Society fo
the Collection Of Taxes, which buys the rigf
OF the government to collect the taxes O
! alcohol and tobacco. 1t pays, l believe,
lump sum, and has in place of it the revenu
= receipts. This company has a capital
!, 81, 900. 900 (%silver), and its stock is 100 pc
8 cent above par. 1t paid a dividend OF almo.
: 100 per cent last quarter, and Is one of I'll
best things in Peru. Then there is the Sa
s Lorenzo company, which has vaults out
the island of San Lorenzo, in which all in
G porters OF dynamite and other explosives al
i compelled by law to store their goods. TIL
G shares in this company have a face valu
y OF $50 (%silver), and the dividends of the la!
: two months were 500 a share. Another con
e pany which owns the sole concession Il
G manufacturing tobacco has a capital of 5000
$ 600 and pays a IL per cent dividend, viii
g the Lima Benevolent society, which mar
d ages the lottery, and with the proceeds
the weekly drawings keeps up certain schoo
and hospitals, pays s per cent a year.
s FRANK G. CARPENTER.
MAKES A PLEA FOR HARMON