662 



PERU. 



murders, and gave the names of his victims. 

 Fourteen of the mutineers were shot. 



Posts and Telegraphs. In 1885 the Peruvian 

 post-offices forwarded 865,823 letters and postal 

 cards, and 386,141 newspapers and sample 

 packages. There were in operation in the re- 

 public 2,211 kilometres of telegraph line, the 

 number of offices being 34, dispatching 94,214 

 private, and 16,455 Government messages. 



Railroads. There are in operation 2,600 kilo- 

 metres. Two railroads run from Lima to the 

 higher Andes. One line begins at the coast 

 at Mollendo, south of Callao, and, running by 

 Arequipa, crosses the crest of the Andes, and 

 terminates at Lake Titicaca, 12,800 feet above 

 the sea. The other starts from Lima itself. It . 

 was projected with the intention of piercing 

 the crest of the Cordilleras at an elevation of 

 15,645 feet above the sea, and thence descend- 

 ing to Oroya, a plateau between the maiu 

 ranges. Its ultimate object was to afford a 

 route to the fertile districts on the eastern 

 slopes of the Andes. As yet it has only reached 

 a village called Chicla, 12,200 feet above the 

 sea, its progress having been stopped by the 

 war between Peru and Chili. In November 

 it became apparent that the congressional ac- 

 tion respecting the southern railways, and 

 those of Chimbote and Salaverry would prob- 

 ably give rise to serious complications. Ac- 

 cording to stipulations with the Government, 

 the southern roads, when completed, were to 

 be turned over to the State by the contractor, 

 Henry Meiggs, or by his successors and execu- 

 tors. The roads have not been completed, the 

 contractor alleges, from the fact that the neces- 

 sary money has not been furnished by the Gov- 

 ernment, and it was also said that a large sum 

 for freight and passages was due from the Gov- 

 ernment. In spite of the arguments and proofs 

 adduced, Congress, led by the deputies from 

 the south, ordered the executive to assume the 

 administration of these roads, as well as those 

 connecting Salaverry with Trujillo, and lead- 

 ing from Chimbote to the interior. Prior to 

 the promulgation of this law, the American, 

 British, and German legations at Lima ener- 

 getically protested against such an assumption 

 of dictatorial power by Congress, basing their 

 protest on the fact that, as the contracts were 

 legal and bilateral, there are two parties to be 

 heard, and that such hearing must be given be- 

 fore the proper legal tribunals. Despite these 

 formal protests, the Government adopted vig- 

 orous measures to carry out the orders of Con- 

 gress. The railway from Salaverry to Trujillo, 

 and the fine wharf at the first-named place, con- 

 structed for the Government under contract, 

 since under the control of E. C. Dubois, an 

 American citizen, by virtue of a concession 

 granted by the Government of Iglesias, were in 

 December declared forfeited. The State is also 

 to assume possession of the southern lines. 



Early in October a commission of engineers 

 and mining experts appointed by the Peru- 

 vian bondholders in London, arrived at Callao. 



They were to examine the railways, and make 

 a report regarding the capacity of the lines in 

 question, and the probable increase of business 

 in case of their being extended as originally 

 planned. In December the commission had 

 concluded its labors on the Oroya Railroad and 

 at the Gary de Pasco mining district. The 

 commission next proceeded to examine the Pa- 

 casmayo and Chimbote railroads, and to travel 

 through the rich sugar-producing country in 

 the immediate neighborhood of those lines. 

 After this work is accomplished, an inspection 

 will be made of the southern railroads, and the 

 bondholders will be thoroughly informed as 

 to the prospects of reimbursement from all of 

 these undertakings in which their money has 

 been employed so liberally. 



The Graee-Aranibar Contract. Toward the close 

 of 1886, Mr. Grace, of New York, as the rep- 

 resentative of the European bondholders of the 

 Peruvian debt, made a proposal to the Gov- 

 ernment of Peru for the cancellation of part of 

 the latter and the extension of the railroads. 

 In March, 1887, Mr. M. P. Grace, of the firm 

 of W. R. Grace & Co., New York, in pursuance 

 of this plan, arrived from Lima and left for 

 London, accompanied by Dr. Aranibar, the 

 Peruvian Commissioner. The result of the trip 

 was an arrangement with the committee of 

 bondholders in June, since accepted by the 

 Government at Lima, but still awaiting ratifi- 

 cation by the Peruvian Congress. The chief 

 clauses of the contract that are likely to be rati- 

 fied with some modifications are the following: 

 The Peruvian Government relinquishes to its 

 creditors for sixty-six years 763 miles of its 

 railroads, which the latter engage to extend 

 as stipulated. It furthermore relinquishes to 

 them all the guano the Government still owns 

 on the coast, and all that may he discovered, 

 for a term of sixty-six years. As long as the 

 railroads and guano do not net, together, the 

 sum of 420,000 during two consecutive years, 

 the Government agrees to set aside the annual 

 sum of 120,000 out of the customs revenue 

 of the ports of Mollendo and Payta to cover 

 the deficiency. Peru also granted the creditors 

 forever the coal along the Chimbote-Huaraz 

 Railway, but while doing so retains 15 per 

 cent, of the net profit that those coal deposits 

 shall produce. Another concession grants them 

 the exclusive right of exploitation for fifty 

 years of the Huancavelica cinnabar-mines, 15 

 per cent, to be paid the Government out of the 

 net profits while the grant lasts. Next, the 

 perpetual privilege is conceded the creditors 

 to work all the gold, silver, copper, and lead 

 mines, and other mineral deposits, the Govern- 

 ment only to collect the usual tax of $30 per 

 annum, to which every mine in Peru is subject. 

 A grant is made them of 1,800,000 hectares of 

 arable land, and each family of settling immi- 

 grants is besides to receive 180 hectares under 

 contracts with the creditors' representatives. 

 The Government finally concedes them the 

 privilege of free navigation on the rivers and 



