Magelhaens Straits. — Navigation. 319 



for the first five years,* during the next five years of 100,000 

 doUars, and in the last five years 75,000 dollars, after which 

 all aid from the State is to be withdrawn. Further, the com- 

 pany seeks to be secured in the exclusive right during those 

 fifteen years of working the coal fields,t which are known to 

 exist in the Straits, to be presented free of expense with the 

 land required for the various buildings and stations, and, 

 lastly, permission to fell wood all along Magelhaen's Straits, 

 and in the divergent bays, gulfs, and channels, but on the 

 condition that one half of the soil so reclaimed shall remain 

 the property of the State, the other half to remain in per- 

 petuity the property of the adventurers. From the day on 

 which this project is ushered into existence by the munifi- 

 cence and under the auspices of the Cliilean Government, 

 a new era will commence for the shipping interest along the 

 west coast of South America ! The difficulty is in securing 

 a monopoly of the Straits. At present any captain may run 

 the Straits if he will, and this is occasionally done. An Eng- 

 lish man-of-war passed through in the spring of 1862. 



At last, on 8th May, the European mail came in, but failed 

 to bring the letters we expected, giving us instead only news 



* The Steam-packet Company which now carries the mails twice a month from 

 Valparaiso to the southern ports of Chile, receives an annual subsidy from Govern- 

 ment of 850,000 (£10,500). 



t According to the reports of Mr. George Schuthe, governor of the little colony 

 in the Straits of Magelhaen, some very valuable coal-strata exist near Punta Arenas. 

 These, although difficult of access, would, nevertheless, fetch a high price, consider- 

 ing the high price of coal in the harbours along the east coast of South America. 

 In Buenos Ayres and Monte Video, 12 to 15 days' sail distant, the average price of 

 coal is 12 dollars (£2 10s.) per ton. 



