The Washington herald., 1919-06-13
.SCHWAB ENTERS
CHILEAN FIELDS
Staked Fortune on Trade
in South America,
Says Holland.

J Hdfc hau cASioDiScS as AhAaAo ss~
steel manufacturing industry OF the
United States when he said at the
Pan-American Commercial Conference
that the great development of the
future of the United States Is going
| to be upon the East coast For there
| is unquestionably to be q very great
development in industry. agriculture
and commerce throughout the entire
length Of the Mississippi Valley. Per-
haps Mr.. Schwab regards New Orleans
as properly to be included in the
East coast.
Furthermore, those who have recent
ly visited the Northwest have spoken
with some amazement Of the develop
ment, not only agricultural but in
dustral, which Is in progress there
We are also to see enlarged exploita-
tion of the mineral resources of the
Rocky Mountain region. The pacific
coast is already feeling the throb Of
commercial and industrial expansion.
Bright Future In South.
Therefore. when Mr.. Schawb spoke
OF the future great development In
the United States as certainly to take
place upon the East coast he must
have had in mind the steel industry.
Certainly, he had in mind enlarged
international trade with South Ameri-
ca. The possibility. even probability
of an increase in our trade with the
continent to the south Of us has
recently loomed large although 1t has
been somewhat overshadowed by the
problems relating to the establish
ment of peace and the financial condi-
tions which will arise when the United
States undertakes to life devastated
Europe out of the morass.
Before the outbreak of the European
war. Mr.. Schwab had already turned
his attention to South America. He
needed ore of a high and special
quality for use in the various steel
manufacturing plants. especially the
! Bethlehem. which are identified by
his name. About the time when other
, American capital interested in mining
and smelling obtained extraordinary
concessions from Chill for the ex-
| ploitation of very rich copper mines
| that are some distance from the coast.
I Mr. Schwab also obtained concessions
which enabled him and his company
to exploit the very rich iron mines
situated near the coast of Chill.
Chill Ore on Delaware.
When it was announced that Mr..
Schwab and his associates would not
only develop these mines but would
( bring the ores in specially constructed
vessels from Chill through the Panama
canal to a convenient point upon the
| Delaware river. some OF his friends
wondered whether he were not un-
ldertaking too much.
Many thousand miles separate the
\ iron ore mines of Chilli from the Della
ware River. whereas ii requires only
few days to transport the Michigan
and Minnesota ores through the
Great Lakes to the steel mills of the
Ohio Valley. and to Gary. it will on
| the other hand require at least a
month or six weeks TO bring the ores
of Chill to the Delaware River.
Mr.. Schwab, however, was never
dismayed by any of the critical sug-
gestions that were made by his
! friends. He was looking for eXclu-
! sive control of almost inconceivably
great deposits of iron ore which pos
sess certain qualities that make II
especially available for the manufac-
ture of steel.
Schwab's Big Adventure.
| Now that peace is substantially as
sured and there is no need for further
concealment Mr.. Schwab felt justified
in telling the South American dele
gates to the Pan-American CONNER
cial conference what he has in con-
temptation and in fact what he al
ready has underway. respecting the
mining and shipment of iron ore from
I Chilli to the Delaware River. 1t was
/ a very great expense that the ex-
ploitation of these Chilian ore fields
entailed. But Mr.. Schwab did not
hesitate to provide all the millions
of capital needed. II the project
proved a failure it might invole some
embarrassment. probably disaster.
for his steel plants. But he was
convinced that 1t could not fail, and
on the other hand would furnish
valuable aid in making his steel or
ganizations as great as any in the
world.
! He told the delegates that he risked
all his fortune, all his reputation.
and the eXistance OF the Bethlehem
Steel corporation in this South Amer
lean adventure. He has created the
/ largest docks and shipping facilities
that are to be found any where in
South America. He has under con-
struction twenty cargo carriers so
built that each one will be able to
/ transport 1000 tons of iron ore on
each trip and he purposes utilizing
the Panama Canal for this service.
These vessels should bring many mill
| lion tons of ore to Mr.. Schwab' S
plants, in a single year.
U. s. Capital Floods Chill.
| Undoubtedly. Mr.. Schwab has in
view the development of a very large
export trade in the commodities which
his various steel manufacturing plants
produce. II he can get his raw mater
ial from South America at compare
lively low cost. then the proximity of
his various plants to deep water will
make it all the easier for him to main-
tain honorable competition with other
steel manufacturing corporations in
the markets of the world.
The flow of American capital into
Chilli alone, represented by invest
ments in the, copper and the iron ore
properties, has already been very
large. Ultimately 1t will mean for
Chill many millions a year. Mr.
Schwab's iron mines are SO situated
that he can do with the ore what
is done in Northern Minnesota. That
| is practically to transfer 1t at very
low cost from the mines to the docks
of his steamers. 1t is said that his
ore can be carried to the vessels from
the mines by means of gravity. The
copper mines of Chill are so far re-
moved from the coast that It has