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RAILWAY DEVELOPMENT IN THE REPUBLIC

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The place Argentina holds in the world is due to the meat and wheat it sends to other lands. But having recognised its fecundity as a good food-producing area, it is well to start at the beginning. Argentina may have had fine grazing tracks capable of rearing untold millions of cattle and arable land that had only to be scratched to yield excellent crops of cereals; but without transport values are at a minimum. Accordingly, the development and prosperity of the Argentine is mainly due to railways. The sum of £300,000,000 British capital is invested in Argentine railways and electric tramways.

I travelled a good deal in the Republic, from Buenos Aires to Inca in the Andes, and from Tucuman in the north to Bahia Blanca in the south. I journeyed over hundreds of miles of flat, featureless, dreary country that grew nothing but wild grasses until a few years ago. And there are plenty of sandy, bush-studded, alkali-stricken acres—just as you find barren patches in the United States, Canada, Siberia, and Australia—but there are thousands of leagues awakened into life, estancias with great herds of cattle munching at the alfalfa, stretches of wheat and maize, on and on, as though without end, the only break on the horizon being the colonist's mud hut, a clump of trees—and it always seems the same clump of trees—which indicates a ranch, and the ever-whirring American water-wheel. As you travel through England it is the spires of churches that pierce the sky. The only thing that ever pierces the sky on the Argentine pampas is the zinc American water-wheel. The Argentine estanciero thinks a water-wheel is of more use to him than a church.

All over this land, zigzagging, curving, intersecting, sometimes running in an absolutely straight line for a hundred and fifty miles, is the greatest length of railway lines in the world for a population of seven millions. The towns are far apart; villages are few. You journey half a day, and, except at the little wayside stations, do not see more than half a dozen folk on the land. Yet it is a smiling land, and greets the sunshine with abundance. The railways in the Argentine are to garner this wealth. Freight trains, with cars of the colossal American pattern, trundle their long length across the plains.

I recall one night when, at a forgotten siding, the engine drew out to get water, taking a saunter along the train side. It was brilliantly lit with electricity, and the restaurant car, with the usual little red-shaded lamps on the tables, was busy; crowds of passengers were dining, and the usual waiters were scurrying, and there was the usual Continental fare, and champagne and Moselle wines, and the usual mineral waters you get on the Nord express. That gleaming train in central South America was the symbol of what railway enterprise has done in Argentina.

There are 20,000 miles of railroads in the Republic. The British showed the way in the initial building, and their lines pass through some of the fattest territory. The French have been tardy followers, but have constructed useful minor lines. The Argentine Government has built State lines through country that was suitable for colonisation, but which did not appeal to the outside investor. These State railways are financially a failure. One reason is that the territory through which they run is not of the best. The principal reason is that they are the prey of the politicians. Constituencies have to be considered, and innumerable jobs found for the hangers-on of political parties. Business conditions are the last to be thought of, and, though the Government has done well in throwing these lines into distant regions needing development, they are not likely to succeed until placed under different control.

Not only have the Argentines themselves not started railway companies, but they have no money invested in the foreign companies. One cause is that, though the Government insists on a local board of directors, the real board of directors is abroad, chiefly in London. Another cause is that dividends are limited by law to 7 per cent., and that is not a sufficient return for the Argentine. He does not care to touch investments that do not yield 12 per cent., and when he gets 30 per cent. he thinks that about fair—and the country is so prosperous it can afford it.

Although within the last fifteen years millions of British money have poured into Argentina for railway construction, the investor in the old days cast a hesitating eye on South America as a place to sink his capital. In the 'fifties a railway a few miles long was all that Argentina could boast, and ten years later, when 7 per cent. was guaranteed, money was not forthcoming. As an inducement to construct a line between Rosario and Cordoba the absolute ownership of three miles on either side of the line was offered. Even with such an attraction the British investor was shy.

Gradually, however, money was forthcoming, and lines were laid. In the 'eighties there came a spurt. It was not till the years following 1900 that money could be had for the asking. Lines cobwebbed the profitable country; distant points were linked up; land which previously had little beyond prairie value bounced up in price.

Though to-day there is a thought in the public mind that a little too much money has been thrown into Argentina, that land prices are too inflated—which they are—I have traversed districts which three years ago were wilderness; but a spur of railway has been driven into them, and instantly farming has been started. I saw hundreds of freshly-built homesteads—crude, and the life harsh, but it was the beginning of great things—and alfalfa had been laid down, and cattle were feeding, and wide spaces which previously were sandy and apparently inhospitable were carpeted with the bright green of new wheat. Just as in Canada there is a belief that the breaking up of the land had decreased the severity of the frost, so there is a belief in Argentina that rains follow the plough. Places which formerly had little rainfall, and which had a doubtful agricultural future, are proving successful. Yet without the advance of railways the country would have been as forlorn as when the Indians roved the pampas.

CENTRAL ARGENTINE RAILWAY COMPANY'S GRAIN ELEVATORS AT BUENOS AIRES.

Railway companies in England have had to fight landowners to make headway. In Argentina landowners welcome the coming of a railway, for obvious reasons. Most of the wealthy Argentines owe their fortunes to their land being benefited by the railways. As a rule, out in the far districts, a railway company can get the necessary land for nothing. Owners are willing to make financial contributions. The general managers of the big British railways in Argentina get large salaries—£7,000 a year. This is partly to remove them from the range of temptation of being bribed by owners, syndicates, or land companies to authorise the making of railways where they would not be economically advisable. Of course, extensions near the big towns cost the railways as much as they would in England. I know a man who thirty years ago bought a piece of land for £1,600. He sold it to a railway company for over £200,000.

Though foreign capital is having so extensive a run in networking the country with railways, the Argentine Government has a much closer grip on the working of the lines than the Board of Trade has on English companies. It is therefore no misrepresentation to say that, whilst private owners are glad to have their property enhanced in value by the juxtaposition of a railway, the Government puts obstacles in the way for what are ostensibly public reasons. Accordingly, expensive "diplomacy" has sometimes to be used. The Government is sufficiently aware of the return the foreign investor gets—and when fresh extensions are sought it invariably withholds its consent until some concession has been wrung out of the company, such as an undertaking to construct a line through a district that cannot, for some time at any rate, be a success. There is never any guarantee that another company will not be formed to work the same district. The Government smiles at the fight between the two lines for traffic—to the public benefit. When companies propose to amalgamate the Government either makes such demands in regard to uneconomic lines that the thing falls through or a veto is put upon the amalgamation altogether.

Perhaps it is due to the excellence of the railways that the Argentine high roads are so bad. And frankly, though I know most of the new lands of the world, I know of no region where the country roads are so villainous as in this Republic. Rarely are they anything beyond mother earth. In wet weather they are quagmires, and I have seen vehicles stranded, unable to be hauled by a team of five horses. In summer, when rain is absent, they are foot-deep furrows of dust. I shall never forget a motor excursion through the sugar plantations round about Tucuman. The way was like a magnified ploughed field, and all the ridges were of dust. We drove through it as an engine drives through snow.

All railway material comes in duty free, but one of the conditions is that 3 per cent. of the profits shall be used for the making of roads leading to railway stations. The companies do not object, because the call is not large, and it is to their interest that agriculturists should be able to get their produce to the railway station to be transported over the lines.

The Direccion-General de Ferrocarriles is the authority over the railways in Argentina. It decides the number of trains which shall be run, and it insists on the number of coaches. There must be a certain number of dormitory cars on all-night trains, and restaurant cars are obligatory over certain distances. Every train carries a letter-box, and recently the companies have been squeezed into carrying the mails for nothing. A medicine chest, a stretcher, a bicycle—so that quick communication can be made with the nearest station in case of accident—and all sorts of necessities in case of a breakdown are compulsory. Every carriage is thoroughly disinfected every month, and there is always a card to be initialled by an inspector. All bedding and mattresses are subject to scientific disinfection such as I have seen nowhere in Europe.

No time-tables can be altered without the sanction of the National Railway Board at least two months before coming into operation. If trains stop at stations for which they are not scheduled a heavy fine is imposed; and all late trains, and the reason, have to be reported to the Government authority. No alteration, however small, to a station building or to the design of rolling stock is permissible without the sanction of the Government representatives. A complaint book is at every station, open to anyone to complain on any subject. Guards also keep a book. Many of the complaints are amusing. I heard of one man who insisted on writing in the complaint book that "everything was in perfect order and the staff faultless." Occasionally passengers will have a dispute, and whilst one will find fault in the complaint book with the manners of the train attendants, another will write beneath that the attendants are all right, and it is the complainant's manners which are at fault.

There are the usual buffers in front of an engine; but they are all hinged, and have to be hoisted backwards when a train is travelling, because if an animal were run into, the cow-catcher might not be able to throw the beast aside, for it could be caught between the catcher and the protruding buffer. Though, on the face of it, the Government subjects the companies to innumerable restrictions, and frequently imposes vexatious regulations, it must be recognised that public safety is the thought behind them all.

The Amazing Argentine: A New Land of Enterprise

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