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Colombia: physical features, natural resources, means of communication, manufactures and industrial development

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Sofia, thence by good mule roads to the different towns
mentioned.

The terms good and bad, as applied to roads, are, of course,
relative, for in these mountainous regions a reasonably safe
mule track is generally all that can be hoped for.

Timbers used in Mining. — The following timbers,
which are usually abundant, are generally used for
mining purposes.





B.W. in Lbs.


Sp. Gr.


Aguatillo (Laurus Carboms) .




. 451


0.43


Amarillo de Pefia (Persea)




. 595


0.66


Arenillo (Laurinea)




. 550


0.52


Chicala (Tecoma Spectabilis) .




. 889


0.91


Dinde {Madura Tinctoria)




. 949


0.69


Gualanday {Jacaranda Gualanday)


. 397


0.53


Guayacan {Leguminosa)




. 763


1.30


Mario (Calophyllum Mariae) .




. 610


0.68


Zenascuro (Carola Augusta) .




. 499


0.46



Mining Laws. — The mining laws of Colombia are
quite liberal, though there is some reason to complain
of the delays involved before securing ratification of
surveys and titles. In some matters the Government
reserves special rights, as in the monopolies of emeralds
and salt, the inheritance of the old Spanish crown mines
and districts. Any one may denounce a mine, and after
surveying and receiving a ratification and licence, for
which quite small fees are charged, the minerals can be
worked, subject to moderate annual dues. Under
certain circumstances it is possible to denounce mines not
only on public lands, but on private property. But
according to a law passed in 1913, oil wells discovered
on lands belonging to the State, whether waste lands or
otherwise, are not transferred by the adj udication of such
lands to private individuals or Corporations, but remain



MINING AND MINERALS 123

the property of the State. And mines on land belonging
to Educational or Charitable Institutions cannot be
denounced without the sanction of the owners. In any
case facilities are always granted for access to the claims,
and, moreover, the claimant is granted preferential
rights to the adjudication of adjoining plots of public
lands required for the exploitation of the mine. Two
drawbacks to the liberality of these laws rather impede
mining developments in the country. When once a
denounced mine has been surveyed and the fees paid,
it becomes the property of the licensee, whether it be
worked or not, and the first successful claimant has
prior claims as to water-rights. The result of this is
that many people take up mining claims purely with
speculative intentions, paying the small fees and taxes
while awaiting an opportune moment to sell their claims.
In this way much valuable mineralised land is held up,
owing to the excessive demands of persons unable or
unwilling to work the claims themselves. There are no
hampering restrictions as regards foreigners.

A few of the more recent enactments by Congress or
Executive Decree are set out here in tabular form.

Law 21 of 1907

Authorises the Government to assume the exclusive right
to export platinum, palladium, irridium, rhodium, osmium
and ruthenium, as well as all radio-active minerals, to issue
new rules for the exploitation of these metals, and to offer
rewards for the discovery of new deposits.

Authorises change in the tax on emerald mines. See
above, under paragraph on emerald mining.

Declares that copper may be denounced like the previous
metals ; landowners being allowed one year to make good
their mining rights in accordance with the general laws ;



124



COLOMBIA



and fixes the royalties payable at half those payable on
previous metals.

Royalties :

For denouncing a gold or silver mine . . $0.50

Grant deed ,, ,, ,, . . $4.00

Annual royalty for rock mine for each 52 sq.

kilometres (20.072 sq. miles) .. .. $1.00

Annual royalty for alluvial mine . . . . $1.00

By paying in one sum twice the amount that
according to law 21 of 1867 should be paid
for 20 years, the owner can acquire the
property of the mine in a permanent form.
No contract for exploitation of mines of coal,
asphalt, petroleum, or gas, entered into with
the Government is valid unless sanctioned by
Congress.

Law 72 of 1910

Declares that the platinum mines can be denounced.

No grants to be made in Choco until the laws are reformed.

The Platinum mines in actual exploitation can be granted
only to the actual owners.

Law 75 of 1913
The Government reserves the right to petroleum wells
in the lands granted to settlers and in all lands belonging
to the State.

Export of Gold from 1905 to 1912



Year.


Description.


Kilos. Gs.


Value in Gold
Dollars.


Totals.








$


$


1905


In bars


2,723 500


1,046,515







In dust


2,601 038


570,420


1,616,935


1906


In bars


5,650 -


2,186,539







In dust


1,378 854


518,926


2,705,465


1907


In bars


5,106 573


2,136,284







In dust


1,749 041


741,457


2,877,741


1908


In bars


6,860 555


2,856,293







In dust


2,224 608


980,581


3,836,874



MINING AND MINERALS 125

Export of Gold from 1905 to 1912 — continued









Value in Gold




Year.


Description,


Kilos. Gs.


Dollars.


Totals.


1909


In bars


5,459 360


$

2,140,912


$




In dust


1,941 645


847,798


2,988,710


1910


In bars


6,190 700


2,293,568







In dust


2,498 013


1,076,384


3,369,952


1911


In bars


7,680 427


2,454,834







In dust


2,891 294


1,296,999


3,751,833


1912


In bars
and dust


19,642 372


6,634,913


6,634,913



The export of platinum, which was valued at £35,119
in 1907, sank to £20,844 in 1908, and rose to over £118,839

in 1912.



CHAPTER XIV

manufactures and minor industries

Present Developments and Future
Possibilities

In Colombia high import duties are the rule, and these
are designed to be protective as well as revenue pro-
ducing. In the past, as at the present day, it has been
the custom of the Government to foster local industries
by very material concessions. Sometimes this has taken
the form of a guaranteed interest on capital involved
both in equipping and establishing factories. More
often exclusive rights to manufacture in specified districts
for definite periods, together with exemption from
central and local taxation, freedom from import duties
on machinery and raw material required has been the
rule. Occasionally money and land grants have been
made. Quite commonly when such concessions have
been made the manufacturers are in their turn bound
to sell their goods at prices ranging from 5 to 15 per cent,
lower than the prices charged for imported goods of a
similar character, it being estimated that the concessions
granted give a preference of from 10 to 25 per cent, and
upwards over imported articles. We may take the boot
factories of Cartagena and Barranquilla as examples.
These are fitted with machinery from America, and
supplied with choice leathers and other raw material
from England, the United States and Germany, free of
import duties. Their boots sell at an average of 2.75
dollars gold for men's, and 2.50 for ladies', retail. While

126



MANUFACTURES AND INDUSTRIES 127

the duties on imported boots are 80 cents gold per
kilogramme gross weight, plus 70 per cent, and 2 per cent,
on the specific duty. Often valuable Government con-
tracts are also awarded to local manufacturers. Apart
from this official fostering of native industries, it will be
found that many of the larger business firms (frequently
acting not only as importing and exporting agents,
but also as bankers) either run or otherwise finance
industrial enterprises. Thus it is frequently the case
that many coffee growers are merely tenants, or are
financed by bill discounting by big coffee collecting and
exporting firms. The same conditions prevail in the
" Panama " hat industry, and to a lesser extent in
that of sugar growing and refining.

Owing to its influence on home and foreign commerce
the textile industry is probably the most important
in all the manufacturing class. Spinning and weaving
are very ancient indigenous arts, both wool and hair,
as well as some vegetable fibres, having been used by the
Indians long prior to the Spanish conquest. But it was
not until 1790 that a priest, Don Cristobal de Restrepo,
introduced the spinning and weaving of cotton among
the Antioquians. Apparently the industry persisted
in a small way, although almost dormant. At the present
day textile factories for cotton and wool of considerable
importance are run at Barranquilla, Bogota, Cartagena,
Medellin, and Samaca. At Barranquilla the Obregon
cotton mill contains over 200 electrically driven British
looms, worked by women and boys. Imported British
grey and coloured yarns are used, and worked up into
grey domestics and coarse coloured drills, about 10,000



128 COLOMBIA

yards being finished per day. It is proposed to start
in conjunction with this a mill to spin native cotton.
In the same town there is a stocking net factory, run
with German capital and machinery, the yarns (grey,
bleached and coloured) being imported from England,
Germany or the United States, as periodical quotations
may render advisable. The twenty-four netting
machines, worked by electricity and attended by women,
turn out 150 dozen under vests, 150 men's drawers and
250 pairs of stocking monthly. They sell at about
60 per cent, less than imported goods.

At Cartagena a large spinning and weaving steam
driven mill is owned by the Banco Union, and has been
run for about a quarter of a century. Native cotton
is spun here, the seed being exported. Coarse yarns,
for grey drilling, are spun, but a certain amount is im-
ported. There are 105 looms, attended by 160 women
and boys. It appears that imported sheeting, paying
20 cents gold per kilogramme, plus 70 per cent, surtax
and 2 per cent, on the specific duty, competes severely
with the local drills. There is a stocking net factory,
with thirty-two machines , at Cartagena, using unbleached
and coloured United States yarns.

In Bogota there are several large and well equipped
mills, some both spinning and weaving, for the production
of cotton and woollen materials of a cheap quality,
chiefly intended for the working classes. Among the
leading firms are the Fabrica Nacional de Tejidos, turning
out black and coloured woollens, and the Sagrada Familia
cotton and wool spinning and weaving mills.

At Medellin the largest spinning and weaving mills



MANUFACTURES AND INDUSTRIES 129

belong to the Compania Antioquena (established in 1905),
which are worked by hydraulic power of 300 h.p. There
are 189 spinning machines with 5,328 spindles and 290
looms ; some 110 men and 400 women turning out over
8,000 yards of cottons and woollens per day. The
Colombiena, established three years later, also spins
and weaves. There are several other smaller
establishments.

At Samaca (Boyaca) the Gran Fabrica de Hilados y
Tejidos spins cotton and wool, and has about 100 looms,
employing some 400 hands to turn out grey domestics
and drills, native cotton being used.

Spinning of wool is very general, and cottage looms are
found all over the country.

It is difficult to obtain any reliable data as regards the
use of vegetable fibres. But the making of sacks,
hammocks and shoes, chiefly from hennequen (agave)
fibre, is well developed so wide apart as in Santander,
Tolima and Nariho. On the other hand, much of the sack-
ing used for sugar and coffee in the Atlantic ports is
imported from England, usually being of Indian- jute.

An extensive and growing industry is that of the
manufacture of " Panama " straw hats, which are made
from fine palm straw. Among the centres of this in-
dustry may be mentioned Atlantico, Bolivar, Caldas,
El Valle, Huila, Tolima and Narifio. In 1912 the exports
of these came to about 120,000 lb. weight, of a declared
value of well over £80,000. But it must be remembered
that the hats are extensively used locally. Of the
better quality, or " Sombreros de Suazus," some
161,000 lb., valued at £151,363 were exported.



130 COLOMBIA

There is a considerable export trade in hides. Tanning
is also carried on locally, in a small way as a rule, but on
a large scale in Antioquia. Only sole and coarse leather
is usually turned out, for boot making and a little
harness work. Finer leather is imported ; and most
of the saddles and harness sets are made of agave fibre.

There is a tanning factory at Cartagena, turning out
tanning extract, and a special secret brand, " Guara,"
produced from red mangrove bark, growing abundantly
wild in the neighbourhood. It is used locally, and also
exported to England and Germany. Both leather
and tanning offer considerable scope for enterprise, more
especially as the breeding of cattle is bound to increase
enormously in the near future.

Of recent years a growing percentage of the vegetable
ivory (tagua nut), collected in the forests, has been
worked up in small local factories into buttons and
kindred objects.

Tobacco, of local growth, is very widely manufactured,
factories for the production of cigars and cigarettes
existing in a great many towns up and down the country.
This branch of manufacture assumes important propor-
tions in the Cauca valley, and also in Tolima, in which
department Ambalema is the principal centre of the
industry, about 120,030 cigars being turned out there
weekly. The former export trade in tobacco and cigars
was large, but is now almost entirely confined to Germany,
which country, however, is steadily increasing its orders.

Cement is now being produced on a fairly big scale,
the two leading factories being found in the Department
of Cundinamarca. One of these is devoted mainly to the



MANUFACTURES AND INDUSTRIES 131

manufacture of tiles and slabs for paving, cisterns and
water conduits, and the other to the production of cement
in powder and in blocks for building purposes. This
has already had a marked effect in reducing the demand
for imported cement.

In connection with the food industries, nearly every
town of any importance has several mineral water
factories. Good aerating and refrigerating machinery is
in steady demand. Breweries, generally producing ales
of the lager type, flourish in several districts. Sugar
calls forth various classes of factories, from refineries
to distilleries. The machinery used is often of primitive
type and local manufacture, but a few well-equipped
establishments are met with. Besides the manufacture
of fermented beverages from the sugar juice, there is a
large and growing export of alcohol, about 40° strength,
much of it going to England. Chocolate factories,
some quite large and expensively equipped, are com-
monly met with in most large towns, and all seem to
prosper. The demand for sweets of all kinds is large.

Milling is, speaking generally, still in a primitive
condition, but is bound to develop without much delay,
for conditions are extremely favourable. At Barran-
quilla there are two flour mills, one at Cartagena, one
at Medellin, three at Bogota and one at Tunja. These
are all well equipped. There is a heavy import duty
on flour, and also, in some cases an internal, or depart-
mental tax. The import duty is 8 cents gold per kilo-
gramme gross weight, plus 70 per cent, surtax and 2 per
cent, on the specific duty. The inter-departmental
tax between Atlantico and Antioquia is 8 dollars gold



132 COLOMBIA

per 250 lb., and between Atlantico and Cundinamarca
16 dollars. At Barranquilla and Cartagena wheat on
an average costs 1.45 dollars gold per bushel of 60 lb.,
plus a duty of about 1 cent per 2 lb. Flour sells at 18
dollars gold per 280 lbs., and the bran fetching locally
a dollar gold for 1001b., and equally good prices in
Trinidad, where most of it goes, pays the running
expenses. It is extremely probable that in the interior
profits are not so large. But it must be remembered
that in many places, especially on the Pacific coast, flour
has to be imported, in spite of the high duty.

Coco-nut palms and ground nuts are almost entirely
neglected from the industrial point of view, though both
products supply some of the fats required by the soap
and candle factories existing in most of the large towns.
For there is a big consumption of both commodities.

Commerce, both as regards imports and exports, is
largely in the hands of merchants at the seaports, with
agents in the interior, who act as commission agents,
as well as direct shippers. It has, however, been found
profitable for firms to open branches, or appoint direct
agents after personal interviews. Circularising is of
little value, and ordinary commercial travelling hardly
more so. At Barranquilla import and export trade is
mainly in the hands of German firms, though other
foreigners have a share. At Cartagena, Colombians
share the trade with a few Syrian firms. At Bogota
it is again the Colombian element that prevails, with a
few English, American and other foreign houses. At
Medellin the native element also prevails, both manu-
facturers and merchants being active and wealthy.



MANUFACTURES AND INDUSTRIES 133

At Manizales, Ibague and Bucaramanga, we again have
Colombian firms in the ascendancy. At Cali there are
also Italians and Germans ; and at San Jose de Cucuta
Italians, German, Syrians and Venezuelans. All the
above-named towns are populous, in some degree manu-
facturing places, and all busy centres of commerce,
both for the collection and distribution of goods. Many
of the native products, and this applies practically to
agricultural products and cattle, are disposed of at the
great periodical fairs held in the commercial centres.
These are usually attended by local merchants or their
representatives.

It is officially stated that all travellers' samples in
small pieces of no value are admitted free of duty up to
25 kilogs. Samples of commercial value pay duty
according to their classification, but may be re-exported
up to 1,000 kilos, within two years from the date of
importation. These must be accompanied by a consular
invoice, which should be made out in the name of the
traveller. If no consular invoice is produced twice the
amount of the consular dues, plus 10 per cent., as a fine,
will be charged. Travellers wishing to re-export samples
must pay the duplicated consular dues and fine, if incurred,
and give a bond to the satisfaction of the Administrator
of Customs that the duties applicable will be paid, plus
interest at the rate of 2 per cent, monthly in case the
re-export be not effected within two years ; the Customs
manifest, the acceptance of the bond for the duties,
must be kept by the traveller for presentation to the
Administrator of the Customs in the port whence he
leaves the country, in order that his samples may be

io — (2248)



134 COLOMBIA

checked ; when this is done, the Administrator will
cancel the bond. If the samples are not re-exported
within two years, or if the import duties have not been
paid, the Administrator of Customs at the port of entry
will collect the duty in terms of the guarantee.

As already stated, when dealing with Inland Com-
munication and Transport, it is of the utmost importance
for any shipper dealing with Colombia to pay the greatest
care to packing. Small, well secured packages must be
the rule. All weights and measurements must be given
according to the metric system.



CHAPTER XV

IMPORT AND EXPORT TRADE

As already explained in the last Chapter, the great bulk
of Colombian trade passes through the hands of large
firms of importers and exporters, for the most part of
Colombian origin. Over 90 per cent, of the import
trade is carried out on current account, that is to say,
six months' credit with interest at the rate of 6 per cent,
for European firms, and at three to four months' credit
at the same interest for United States traders. British
traders usually grant ninety days or at sight ; German,
French, and Spanish firms six months or at sight, and
those of the United States either thirty days' drafts, or
cash on delivery with discounts. Importing firms usually
allow fifteen days' credit for provisions sold in the port
towns, thirty days for outside districts, and for hardware
sent up country from three to four months. But there
are considerable variations in practice ; thus Medellin
merchants customarily grant their clients promissory
notes payable at six, twelve, and eighteen months. Long
credits are necessary in a country of such immense
distances and limited means for quick and cheap
transport.

Statistics as to imports and exports are very deficient,
not only owing to the delay in presenting them, but the
constant changes introduced into the method of tabulating
the information. However, it would appear from such
data as is available that for the thirty years, 1880-1909,

135



136



COLOMBIA



the imports remained practically stationary at a little
under £2,500,000, and the exports at a little over
£3,000,000. There was a slight drop in each case in the
last year. But in 1910 the imports rose to £3,405,127
and the exports to £3,557,361 ; and in 1911 the imports
were valued at £3,621,773, and the exports at £4,475,180.
As regards the countries of origin, taking the four
leading manufacturing and commercial nations, it is
found that for the years 1902-1906 the United Kingdom
sent 30.84 per cent., the United States 31.60, France
23.44 and from Germany 13.98 per cent. For the years
1907-1911 the percentages were : United Kingdom 36.16,
United States 27.54, France 22.28, Germany 13.88.
Thus between the two periods there was a gain of 5.32
per cent, for the United Kingdom and losses of 4.06
for the United States, 1.16 for France and 0.10 Germany.
While there is a gain on the total trade for British goods,
it will be seen later on that ground has been lost by the
United Kingdom in certain classes.

The latest complete statistics available are for the year
1911—



Imports




£


From —




United Kingdom


1,167,757


United States . .


1,080,995


Germany


648,527


France


343,749


Spain


79,546


Panama


6,358


Other Countries


294,838


Total


£3,821,760



IMPORT AND EXPORT TRADE



137



These are the corrected figures of the Director- General
of Statics, which differ slightly from those given by the
British Board of Trade.



Details of Imports


Textiles —


i


United Kingdom


840,543


Germany


238,905


United States


217,989


France


199,558


Spain


19,729


Panama


1,388


Other Countries


107,014


Food-stuffs and Condiments —




United States


275,677


Germany


108,026


United Kingdom


38,265


France


12,404


Panama


883


Other Countries


55,519


Metals —




United States


135,925


United Kingdom


130,500


Germany


99,441


France


18,407


Panama


1,865


Spain


1,158


Other Countries


15,913


Drugs and Medicines —




United States


65,566


France


30,801


Germany


25,582


United Kingdom


27,802


Spain


271


Panama


23


Other Countries


8,395


Railway and other Carriages an


d Wagons —


United States


88,222


United Kingdom


30,221


Germany


6,162


France


1,793


Spain


667


Panama


74


Other Countries . .


12,084



138



COLOMBIA




Materials for Arts and Trades —


i


United States


103,697


United Kingdom


16,995


Germany


11,279


France


2,383


Spain


279


Panama


50


Other Countries


5,908


Alcoholic and other Beverages —




France


39,211


Spain


35,060


United Kingdom


15,846


Germany


14,458


United States


8,411


Panama


97


Other Countries


12,835


Ceramics —




Germany


34,588


United States


26,139


France


8,225


United Kingdom


7,888


Spain


384


Panama


209


Other Countries


14,264


Paper and Cardboard —




United States


38,138


Germany


29,029


France


9,070


Spain


3,998


United Kingdom


3,966


Panama


191


Other Countries


6,365


Lighting and Fuel —




United States


39,314


Germany


9,488


United Kingdom


9,080


Spain


337


Panama


58


France


2,975


Other Countries


13.035


Agriculture and Mining Products-




United Kingdom


28,686


United States


26,319


Germany


3,361


France


260


Panama


73



IMPORT AND EXPORT TRADE



139



Agriculture, etc. — {contd.) — £

Spain . . . . . . . . . . 11

Other Countries . . . . . . . . 5,913

Hides and Skins, and manufactures therefrom —


1  ...  8  
9
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