Part 5 (1/2)
To facilitate this business the Company found it necessary to acquire a camp specially adapted for fattening purposes in the Southern part of the Province, so that they might be brought into closer touch with the markets of Rosario and Buenos Aires. They accordingly bought the estancia La Barrancosa in 1906, and have been constantly increasing the area there under alfalfa, equipping it with a full complement of wells and fencing. This estancia lies half way between the towns of San Isabel and Venado Tuerto, from the latter of which it is distant about sixteen miles. But, during the year 1909, a new broad-gauge railway line was opened, leading from Rosario to Bahia Blanca. It pa.s.ses right through the estancia, and by means of a station just outside the boundary the Company have fresh means of despatching their animals to Rosario.
VERA DEPARTMENT.
The headquarters of the Woods Department is situated about eight miles N.W. of the town of Vera, which stands at kilometre 250 north of the City of Santa Fe on the line of the French Railway Company leading from Santa Fe to Resistencia. Sawmills and offices were built, which involved the presence of a considerable number of work-people, for whom houses had to be provided. Consequently, a small village has grown up at the place.
A branch railway was begun in 1905, at a point 13 kilometres north of Vera town, on the French Railway, to penetrate westwards into the Company's forests, and has been extended to a point called Olmos, lying 30 miles away. Along the line two or three hamlets have sprung up, where people connected with the wood industry reside, as well as the Company's officials who control the timber in the neighbourhood.
In 1904 the Company entered into an agreement with Messrs. Albert and Charles Harteneck, Frederick and Charles Portalis, and Hermann Renner, to bring out a Company to work a factory for the manufacture of tannin extract from the wood of the Quebracho Colorado tree, and this factory was ultimately built within the Company's properties at a place called La Gallareta, which is situated 17 kilometres north-west of the Station of Margarita on the French Railway line. The Santa Fe Land Company have also built a branch line from Margarita to this tannin factory.
[Ill.u.s.tration: _Watering-Place at Barrancosa._]
[Ill.u.s.tration: _Wood on the Company's Own Line ready for Loading._]
THE FOLLOWING TABLE SHOWS THE FINANCIAL POSITION OF THE COMPANY FROM 1898 TO THE PRESENT TIME.
Year Share Capital. Deben- Profit. Loss. Placed Balance Dividend ending. tures to Forward. (percent.) Autho- Issued 6 per cent. Reserve.
rised. and fully paid.
30th June, ” 1898 612,500 612,500 ... 420 ... ... Cr. 420 ...
” 1899 612,500 612,500 ... ... 1,650 ... Dr. 1,230 ...
” 1900 612,500 612,500 ... 11,757 ... ... Cr. 2,870 1-1/4 ” 1901 612,500 612,500 ... 9,854 ... 2,000 ” 3,068 1-1/4 ” 1902 612,500 612,500 ... 20,746 ... 10,000 ” 6,158 1-1/4 ” 1903 612,500 612,500 ... 23,988 ... 10,000 ” 7,896 2 ” 1904 612,500 612,500 50,000 28,332 ... 6,000 ” 8,790 3-1/2 ” 1905 612,500 612,500 50,000 36,483 ... 6,000 ” 8,648 5 ” 1906 812,500 612,500 50,000 48,183 ... 6,000 ” 11,018 6-1/2 ” 1907 812,500 766,500 50,000 82,700 ... 12,000 ” 20,398 8 ” 1908 1,000,000 812,500 50,000 91,463 ... 86,628[E] ” 20,611 10 ” 1909 1,000,000 812,500 50,000 115,375 ... 20,000 ” 22,549 10 and Bonus of 1-1/2
[Ill.u.s.tration: _Loading Timber at Wayside Station._]
FOOTNOTES:
[E] Including 76,623 from Share Premiums.
THE VALUE OF LAND IN ARGENTINA.
When one goes to a foreign country, and more especially when he intends to settle there with the idea of making a fortune, he naturally turns his attention to the value of the land, as from this he draws his views of the prosperity of the country. Now, twenty-five years ago the Argentine had comparatively very few railways; consequently, the lands at any long distance from Buenos Aires (the capital) were at a very low value. The province of Buenos Aires, the largest in the country, has always been the most populated, and its lands have always commanded the highest prices, and these have risen tremendously, but not so much of late years in proportion as land in the northern provinces. During the years 1885, 1886, 1887, and 1888, there was a great boom in land.
Foreigners were pouring in, bringing capital; great confidence was put by foreign capitalists in the country, several railways had run out new branches, new railways were built, new banks were opened, and a very large extent of land was opened up and cultivated, and put under wheat and linseed, harvests were good and money was flowing into the country.
Then came a very bad year, 1889; the harvest was practically lost owing to the heavy and continuous rains which fell from December till July with hardly a clear day. This, together with a bad government and the revolution of 1890, created a great panic and a tremendous slump in all land, from which it took a long time to recover. Where people had bought camps and mortgaged them, which was the general thing to do in those days, the mortgagees foreclosed, and, when the camps were auctioned off, they did not fetch half what the properties had been bought for in the first instance, some four or five years previously. This, naturally, had a serious effect on the credit, soundness, and finances of the country, but really, the crisis was not felt until some three or four years after, and it was 1896 and 1897 which were very serious years for the country.
To give one an idea of the value of land in four or five of the princ.i.p.al provinces of the country, I must begin with the Queen Province, as it is called, viz., Buenos Aires. In 1885, property in the city centre was worth 2s. 6d. to 3s. 6d. a yard, whereas to-day it has been sold up to 200 sterling per yard, while suburban lots of 20 yards by 60 yards realised 5 and to-day are fetching 150, and camp lands have risen from 10,000, to 100,000 the square league. Of course this is within a radius of 30 to 50 leagues of the city; lands away to the south and west may yet be bought at 10,000, and, still further south towards Neuquen and the far Pampa, at 2,000 per square league. The province of Buenos Aires is not considered good for alfalfa growing, but has good natural gra.s.s camps.
The province of Santa Fe is a large province, extending from the northern boundary of the province of Buenos Aires to Santiago del Estero, and contains what is known as the Gran Chaco. The southern portion of this province is largely dedicated to the production of wheat, linseed, and maize, for which it is admirably adapted. There are also large estancias carrying vast herds of cattle, sheep, and horses, while the northern portion has vast forests of very fine and valuable timber.
[Ill.u.s.tration: _Wheat ready for Loading at Station on Central Argentine Railway._]
The first part of this province to be developed was the country around Rosario, the large port on the River Parana, where ocean-going steamers call. This, together with good railway accommodation in all directions combined with excellent land in the district, facilitates the cultivation of cereals on a very large scale. Property in Rosario itself is very valuable, and from 30 to 50 a yard is a common figure. In the immediate district of Rosario land is rarely sold in large areas, but may be calculated at 20 an acre, whilst 40 leagues further north it is to-day worth 50,000 a league. I know of one estancia of one league which was bought in 1885 for 2,000, resold, after being sown down in alfalfa and divided into paddocks, without further improvements, at 12,000 (this was in 1903), and again sold in 1909, certainly with further improvements as regards watering arrangements and more paddocks, house, and sheds, etc., in fact, a fair model estancia in good working order, for 60,000. Land on the south-west of Rosario, and about 40 leagues distant, has in the twenty-five years risen from 2,000 a league to 40,000 a league. This is for virgin camp, and to-day in these districts the average price can be stated at from 30,000 to 40,000 per league, yet 300 miles further north land--good land--can be had at from 4,000 to 6,000 per league.
The next province, Cordoba, is one of the most hilly in the country, and has been one of the most developed during latter years. Some twenty years ago this was almost considered a desert, where one was told nothing would grow and cattle could not live. To-day it is one of the most prosperous; wheat and linseed are great products here, while alfalfa, when carefully treated, that is, not overstocked, lives for ever on account of the sandy soil, and water being so near the surface.