THE NITRATE DEPOSITS OF CHILE 3 



territory. The report of this commission was pubHshed by the govern- 

 ment and was printed in English, in London, in 1878. It shows that 

 at that time active mining was going on both in Bolivia and in the 

 adjoining Chilean territory. In both regions, Chilean capital and 

 Chilean labor were employed to a large extent. 



As the industry grew, Bolivia imposed an export tax on the nitrate 

 shipped from her territory, which Chile considered inconsistent with 

 certain treaty rights existing between the two countries. Chile 

 protested against the injury done by the tax to her citizens engaged 

 in the industry in Bolivian territory, but Bolivia continued the tax 

 and war ensued in 1879. Peru was in alliance with Bolivia at that 

 time and hence became involved in the fight with Chile. The war 

 lasted until 1883 when peace was declared. Chile had been victori- 

 ous on all sides, and after the war she annexed the two southern 

 provinces of Peru, known as Tacna and Tarapaca, and the Bolivian 

 province of Antofagasta, thus adding not only several hundred miles 

 to the northern extension of her possessions, but also gaining control 

 of all the known nitrate districts of the west coast of South America. 



After the close of the war, the nitrate industry became much 

 more active than formerly. New capital poured into the country 

 and the deposits were rapidly developed. Mr. G. B. Chase, of the 

 United States, and Colonel J. T. North, of England, were among 

 the most active foreign operators, while the Chileans themselves were 

 very energetic in developing the region. The Germans also have 

 acquired large interests in the nitrate fields and are active operators, 

 but the English companies are by far the most numerous of all. 

 Though Americans were among the pioneers in the industry, their 

 operations at present are small compared with those of the English, 

 Germans, and Chileans. 



NATURAL FEATURES OF THE NITRATE REGIONS 



Chile extends along the west coast of South America in a long 

 narrow belt from Peru southward to Cape Horn, a distance of almost 

 3,000 miles. In width it varies from less than 100 miles to rarely over 

 200 miles. It is essentially a mountainous region, being occupied 

 on the east by the main range of the Andes, and on the west by the 

 Coast Range. The Andes rise in rugged peaks to altitudes of from 



