n r p 70-24,543 FALCON, Guillermo Nanez, 1936ERWIN PAUL DIESELDORFF, GERMAN ENTREPRENEUR IN THE ALTA VERAPAZ OF GUATEMALA, 1889-1937. Tulane University, Ph.D., 1970 Economics, history ? University Microfilms, A XERQ\Company, Ann Arbor, Michigan (c) Copyright by Guillermo Nanez Falcon 1970 THIS DISSERTATION HAS BEEN MICROFILMED EXACTLY AS RECEIVED R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r n ERWIN PAUL DIESELDORFF, GERMAN ENTREPRENEUR IN THE ALTA VERAPAZ OF GUATEMALA, 1889-1937 A DISSERTATION SUBMITTED ON THE SIXTH DAY OF MARCH, 1970 TO THE DEPARTMENT OF HISTORY OF THE GRADUATE SCHOOL OF TULANE UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY BY 'Ulllermo Nanez Falcon * APPROVED: Professor W l ^ a a m J Chairman ffith Professor Richard E. Greenl Processor Frank L. Keller Professor Pierre H. Laurent L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r n PREFACE Throughout most of the nineteenth century Guatemala, like many of the other independent nations of Latin America, sought to attract immigrant settlers as a means of increasing its population and stimu­ lating economic development within its borders. During the last three decades of the century, the country’s leaders enacted legislation to encourage spontaneous immigration by individuals and also passed other laws, the purpose of which was to foment development. The inducements ■•i proffered by Guatemala and the commercial and economic potential of the country attracted German investors. A few Germans came during the late 1850's and established mercantile houses in Guatemala City, Gradually their numbers in­ creased, and they expanded their commercial operations into the Pacific highlands and later into the Alta Verapaz, a remote, undevel­ oped province in northern Guatemala. As their businesses prospered, the Germans turned to coffee cultivation, and their work and invest­ ments in agricultural enterprises devoted to coffee helped to develop a nascent industry into a major one. Germans, although not the largest foreign group in Guatemala, by about 1900 dominated retail merchandising as well as the produc­ tion and marketing of coffee, the nation’s chief export crop. In the Alta Verapaz they had achieved virtual hegemony over the economy of the department. Thus, while immigration contributed to the economic development of Guatemala, it brought with it an undesired result: foreign control of the new business it generated. Consequently, during World War II the Nazi sentiments of some of the Germans in Guatemala L ii R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r iia gave the government a pretext to end German economic power "by confis­ cating most of the German-owned properties in the country. Erwin Paul Dieseldorff was one of the Germans who was attracted to Guatemala as a place to settle, to invest capital, and to work. His career in the Alta Verapaz spanned nearly half a century, from 1889 to 1937t and during this time he built up, from a modest beginning, the largest privately owned enterprise in the department. His busi­ ness encompassed not only coffee production and related operations, but retail merchandising, the areas over which the Germans exercised the greatest control. His career paralleled and vas representative of those of other Germans in Guatemala. The present investigation treats Dieseldorff's career as a case study of the process by which German economic power developed in the Alta Verapaz. Details of his personal life are subordinated to an ac­ count of his business operations. Using a topical arrangement, this study examines Dieseldorff's methods of land acquisition, his efforts to achieve vertical integration within the plantation complex, his sources of credit, the administrative structure of his business, the plantation labor system, the application of improved agricultural tech­ niques to increase coffee production, the buying of unprepared or partially processed coffee from small producers, the introduction of new machinery and techniques to produce a better prepared commodity, the efforts he made in cooperation with other planters to provide certain elements of an economic infrastructure by undertaking trans­ portation improvements, and the other economic ventures in which he became involved. This study compares and contrasts Dieseldorff's activities with those of other Germans and native-born Guatemalans. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r & This study is based primarily on materials in the Dieseldorff Collection at Tulane University and private papers in the possession of the present-day firm, W. E, Dieseldorff, Sues. To supplement mate­ rial from manuscript sources the author used Guatemalan law books, government reports, official publications, newspapers, memoirs, and interviews with members of the Dieseldorff family and with persons who worked for Dieseldorff. Also of value were the reports of the German diplomatic officials in Guatemala to the Foreign Ministry office in Berlin. The author would like to express his gratitude to the following persons for their assistance and cooperation in the research and writ­ ing of this study: Professor William Joyce Griffith who suggested the topic and directed this dissertation, as well as the Master's thesis from which the present study developed; the late Dorothee Neal de Dieseldorff who donated the Dieseldorff Collection to Tulane Univer­ sity; Mrs. Fred H. Holmsten, executrix of the Dieseldorff estate, who gave the author permission to use the Dieseldorff family papers in Guatemala; Mrs. Billie Neal de Cox, manager of W. E. Dieseldorff, Sues., whose help greatly facilitated the job of research in Guate­ mala; Erwin Dieseldorff's two daughters, Frau Gertrude Quinckhardt of Hamburg and dona Matilde Dieseldorff de Quirin of Guatemala; Erwin Dieseldorff's first cousins, Mrs. Maria Luisa Dieseldorff de Hempstead and Miss Rosita Dieseldorff, both of Guatemala; gentlemen on the staff of W. E. Dieseldorff, Sues. and the The author also appreciates the generous help and many courtesies extended to him by the directors and staff members of the following institutions and libraries: at Tulane University, the Special Collections Division L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r (Mrs. Connie G. Griffith, Director), and the Latin American Library (Miss Marjorie Le Doux, Director); the Biblioteca Nacional de Guate­ mala and its former director, the late Albertina Galvez; the Hemero- teca Nacional de Guatemala (Rigoberto Bran Azmitia, Director). L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r n TABLE OF CONTENTS PREFACE.......................................................... ii TABLE OF CONTENTS................................................ vi LIST OF M A P S .................................................... vii INTRODUCTION ................................................... 1 CHAPTER I ERWIN PAUL D IESELDORFF ............................ 32 CHAPTER II THE EVOLUTION OF A PLANTATION COMPLEX: METHODS OF ACQUISITION ........................... 81 THE EVOLUTION OF A PLANTATION COMPLEX: PLAN OF ACQUISITION............................... 108 THE DIESELDORFF ENTERPRISE: FINANCING AND ADMINISTRATION ..................... 127 CHAPTER III CHAPTER IV CHAPTER V CHAPTER VI CHAPTER VII CHAPTER VIII CHAPTER IX CHAPTER X CHAPTER XI THE COFFEE BUSINESS: INCREASED EXPORTS................................. 153 THE COFFEE BUSINESS: HARVESTING AND PREPARATION OF THEC R O P ............ 207 TRANSPORTATION AND COMMUNICATIONS IN THE ALTA VERAPAZ............................... 243 LABOR ON THE PLANTATION COMPLEX: UNSKILLED INDIAN LABORERS......................... 302 LABOR ON THE PLANTATION COMPLEX: ADMINISTRATIVE, TECHNICAL, AND CLERICAL PERSONNEL. 349 THE DIESELDORFF FIRM, 1900-1969: EXPERIMENTS, CRISES, AND CHANGES ................. 385 ERWIN PAUL DIESELDORFF AND GERMAN SETTLEMENT IN THE ALTA VERAPAZ: A RETROSPECTIVEVIEW . . . . 433 BIBLIOGRAPHY.................................................... L vi R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. *+55 J n r LIST OF MAPS MAP OF GUATEMALA . . ............................... MAP OF THE ALTA VERAPAZ AND DIESELDORFF'S PROPERTIES L vii R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. 31 109 J n r INTRODUCTION From the earliest days of independence and throughout most of the nineteenth century the autonomous nations of Latin America sought to attract immigrant settlers to their shores. The former Iberian colo­ nies were convinced that a large influx of foreigners, Europeans in particular, would not only increase their population, but would give powerful stimulus to economic development within their borders. To induce Europeans to emigrate, many of the countries proffered generous concessions of land and fiscal immunities to colonization societies and to individual settlers, j\sa promises helped to draw entrepreneurs and settlers of various nationalities to Latin America. The size of the immigration movement and its effect differed from country to country. Some nations, such as Chile, Argentina, and Brazil, attracted large numbers of foreign settlers, while others, such as Guatemala, drew fewer persons. not produce consistent results. Moreover, the movement did In some areas the changes were super­ ficial, but in other regions immigration had a strong impact on the national life of the country. Size, however, did not always determine the effect, and in a country like Guatemala, which was small, under­ developed, and populated predominantly by Indians,, foreign settlers, although relatively few in numbers, helped to bring about permanent changes in the nation's economy, Guatemala, as one of the states of the Republic of Central America, in the early l820's initiated legal efforts to encourage the immigration of Europeans to its domain. L After separation from the 1 R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r n Republic of Central America and In the decades that followed, Guatemala continued to seek foreign settlers. It acted out of the belief that European colonization was essential in order to bring into the country a vigorous, industrious population, equipped with new skills and tools, which would help to develop the economy of the nation and bring into production the vast areas of uncultivated public lands, terrenos baldios, that it possessed. Guatemala's attempts fall into three time periods. Between 1823 and 1826 the government made contracts with individual promoters to establish colonies on public lands. It made similar agreements in the 1830's and 181*0's with impresarios who represented European colo­ nization companies, but in all instances the early schemes were re­ sounding failures. For about two decades thereafter Guatemalan leaders regarded colonization projects with disfavor. During the last quarter of the century the government turned once again to the concept of foreign settlement as an instrument for fomenting national development. This time, however, Guatemala abandoned the idea of corporate ventures that involved the sudden mass transfer of popu­ lation, and instead it endeavored to promote immigration on an in­ dividual basis. It was during this latter period that German nationals began to emigrate in increasing numbers to Guatemala. Erwin Dieseldorff was one of the Germans who was attracted there. Circumstances in Germany prompted him and many like him to venture abroad, and his career in Guatemala was a product of a slowly growing German interest in that particular country and in the opportunities it offered the potential investor. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 71 Within six months after Central America had separated from imperial Mexico in July, 1823, the Constituent Assembly of the newly constituted Republic enacted a decree to encourage immigration.^ The law established general procedures that were to be applied by the individual stateB in contracting with promoters to establish immigrant settlements on public lands. In 1825 and 1826 the states made con- tracts with several colonization impresarios, cessions were developed. 2 but none of the con­ Unsettled conditions in the Isthmus after 1826 inhibited new projects, but by the middle 1830*s the Republic had achieved a certain degree of stability, and the Individual states renewed efforts to attract European immigrants. As a result, between I 83I* and 1855 several colonization ventures were undertaken by capi­ talists from Great Britain, Belgium, and the German states, who formed Joint-stock companies to finance the establishment of colonies and commercial enclaves in Central America. German interest in Central American enterprises developed gradually. It was first manifested by participation in colonization projects undertaken by individuals from other European countries, and later by sponsoring their own colonization companies. The first notable venture in the Isthmian area was the undertaking of the British ^Manuel Pineda de Mont (comp.), Recopilaci6n de las leyes de Guatemala, edici<5n oficial, 3 vols. (Guatemala, I869-1S72), Vol. I, pp. 815-820. Alejandro Marure and Andres Fuentes Franco (comps.), Cat&logo razonado de las leyes de Guatemala, Independencia hasta el 30 de septiembre 185^ (Guatemala, 1856), p. 27; Costa Rica, Colecci 6n de las leyes, decretos £ ordenes expedidos por sus supremos poderes legislativo £ ejecutivo de Costa Rica, segunda edici6n oficial (San Jose, 1886), Vol. I, pp. 162-163. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Eastern Coast of Central America Commercial and Agricultural Company, which in the 1830's founded the short-lived settlement of Abbottsville In the Insalubrious lowlands of the Verapaz of Guatemala. A number of the colonists that the company recruited were from the German g states. During the following decade the German states provided not only settlers, but a part of the administrative leadership and financial backing for the Belgian Colonization Company's unsuccessful project at Santo Tomfis.** Concurrently with the Santo Tom£s venture, Prussian colonization impresarios, who had the support of Prince Karl of Prussia, formulated plans to establish an exclusively German settlement on the Mosquito Coast of Nicaragua, and in 18U6 the Berlin Colonization Company planted an ill-fated group of German immigrants in the region. Subsequently, during the early 1850's, the Berlin Company made another fruitless effort to establish a German colony on land granted by the government of Costa Rica.^ After the failure of the project in Costa Rica, German 3 William J. Griffith, Empires in the Wilderness, Foreign Colonization and Development in Guatemala, l83^-l8M (Chapel Hill, 19^5), PP. 13^7"198, 201. Ora-Westley Schwemmer,"The Belgian Colonization Company, l8UO-l858“ (Unpublished Ph.D. Dissertation, Tulane University, New Orleans, 1966), pp. 210-211, 223, 226-230, 235-238. ^Ephraim George Squier, Adventures on the Mosquito Shore (London, 1856), pp. 52-53, 291-292; Herbert Schottelius, Mittelamerika als Schauplatz deutscher Kolonisationversuche, 18UO-1865 (Hamburg” 1939)» pp. 5^-56; Gavin B. Henderson, ^German Colonial Projects on the Mosquito Coast, 18U1+-18U8," The English Historical Review LIX (May, 1 9 V 0 , pp. 257-271. ^Schottelius, pp. 75-82; Moritz Wagner and Karl Scherzer, La Repfiblica de Costa Rica en Centro-America, trans. Jorge A. Lines gj al. (San Jose, 1 9 ^ 0 , pp. 208-211. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 71 investors made no other major attempt to establish a corporate colony in Central America. Each venture had proved to be a bubble. The companies had purposefully clothed their projects in humane and idealistic garb— the promise of a new life for the poor of Europe and the opportunity to aid the underdeveloped countries of Central America— but their propaganda was woven of a meretricious and delusive fiber. The execution of the plans had revealed that the publicized Ideals cloaked grand speculative schemes. The disastrous collapse of the enterprises disillusioned investors, prospective colonists, and the general public. Newspapers that had once supported the colonization companies now denounced them and counseled, "If the Immigrant must go, let him go by himself." Many Individuals appear to have accepted the advice of the press, for during the late 1850's the pattern of German settlement in Guatemala changed from corporate to individual immigration. German participation in these Central American projects was a new phenomenon, for prior to this time the German states had taken no part in the colonization of Latin America. Domestic conditions in the German states during the nineteenth century, however, led many merchants and professional men to seek to establish commercial en­ claves and to extend German influence in areas outside Europe. The ambitions of these men were an outgrowth of the drive for commercial expansion that developed largely as a result of the gradual unification of the German states and the growth of German industry. In addition, Marcus Lee Hansen, German Schemes of Colonization before i860 (Northhampton, Mass., 192U), pp. 33-31*. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 6l as stronger feelings of nationality developed, many Germane came to believe that, having been exeluded through no fault of their own from the earlier international eontost for colonies and commercial monopolies, they had to exert every effort to overtake the British and the French and to carve out spheres of influence of their own.^ Attempts during the first half of the nineteenth century to establish exclusively German colonies in Texas, Brazil, Chile, and Central America, and the development by Herman traders of commercial foot­ holds in Africa and in the islands of the Couth Pacific, were ex­ pressions of the increasing national consciousness and the rapidly awakening desire for economic expansion. Colonial and commercial expansion overseas was promoted among the Oerman people in varloue ways. German writers and scholars stressed the importance of colonies and commercial enclaves abroad for national prestige and economic development. The moot influential exponents of these ideas were the political economist Friedrich List and the historian Heinrich von Treit.schke, but other writers, such as M. Koschitzky, Johann Eduard Wappfius, and Johann Gustav DroyBen, expressed similar views. 9 Q Heinrich von Treitschke, Politics, 2 vols., trans. Blanche Dugdale and Torben de Bille (New York, 1916), Vol. I, pp. 117-119* Q The bibliography of German workB that expounded the ideas of colonial and commercial expansion is extensive. Two lengthy and almost entirely different listings appear in: Mary Evelyn Townsend, Origins of Modern German Colonialism, 1871-1885 (New York, 1921), pp. 198-201; [Austin Harrison]?, The Pan-Germanic Doctrine, being a Study of German Political Aims and Aspirations (London, 190k), pp. ix-xiv. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 71 As early as 18^1, List pointed out the need for a strong, wellformulated official colonial policy, backed by a vigorous consular and diplomatic corps, to advance German political and economic in­ fluence in underdeveloped areas of potential commercial importance. He urged young explorers, scholars, and merchants to travel abroad and to report to their countrymen the prospects for commercial pene­ tration in the places they viBited. He also encouraged the formation of stock companies in German seaports to foment commerce, to open new markets for German manufactures, and to establish BteamBhip lineB to handle the prospective increased commercial activity.'1’0 Heinrich von TreitBchke gave brilliant expression to his nationalist views both as a public figure and as a university professor. In the Reichstag and in two decades of teaching at the universities of Freiburg, Kiel, Heidelberg, and Berlin, he urged the establishment of colonies as a means of bringing about German economic dominance in primitive regions of incipient wealth. On the grounds of national self-preservation, he also demanded that official efforts be made to divert emigrants to such areas aB Latin America, where the absence of political integration would permit Germans more easily to retain their national loyalties, rather than to the United States, where they became assimilated into the population after one or two generations .11 10Friedrich List, The National System of Political Economy. trans. Sampson S. Lloyd (London, 1928), p. 3^7• 11Treitschke, Vol. I, p. 118; Adolf Hausrath, Treitschke, his Doctrine of German Destiny and of International Relations, trans. anonymous (London, 19lU), p. 209; Andreas Dorpalen, Heinrich von Treitschke (New Haven, 1957)> P* 236. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r n During the l8U0's and the 1850's the press played an important part in popularizing the idea of colonial and commercial expansion. Newspapers, such as the Allgemeine Auswanderungs Zeitung and Per deutsche AuBwanderer, served as propaganda organs for various colonization societies, and others, such as the Leipziger allgemeine Zeitung, gave detailed accounts of German colonization and commercial activities abroad. Newspapers that opposed the establishment of colonies, as did the Kolnische Zeitung during the 1850’s, performed a similar function in a negative fashion by publishing expansionist views in order to refute 4-v, 12 them. Accounts written by German observers of foreign areas gave much information of interest to prospective immigrants and mercantile con­ cerns. The books on Central America, for example, written by German travelers, such as Moritz Wagner, Karl Scherzer, Julius Frobel, Wilhelm Marr, C. F. Reichardt, and Otto Stoll, 13 described in detail the climate and the agricultural products of the Isthmian area, reported favorable attitudes by the various states towards immigration, and emphasized the potential for commercial and agricultural development that Germans could exploit. One traveler observed that the great poverty character­ istic of the richly endowed countries of Central America was due to 12 Hansen, pp. 33-3^. 13 Among the books written by German nineteenth century travelers in Central America were the following: Julius Frobel, Seven Years* Travel in Central America. . . (London, 1859)j Wilhelm Heine, Wanderbilder aus Central-Amerika (Leipzig, 1853); Wilhelm Marr, Reise nach Central-Amerika (Hamburg, 1870); C. F. Reichardt, Centro-Amerika. . . (Braunschweig, 1851); Karl Scherzer, Travels in the Free States of Central America. . ., 2 vols. (London, 1857); Otto Stoll, Guatemala, Reisen und Schilderungen aus den Jahren 1878-1883 (Leipzig, 1886). L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 71 the lack of labor, capital, and commerce. It followed, he pointed out, that German immigrants, even with limited capital resources, could take advantage of the situation and improve considerably their economic status by importing agricultural machinery with which they could increase the production of export commodities. lU Reports like these attracted the interest of German financiers and prospective immigrants to Central America. The growth of German industry and the increased demand for additional market outlets, for new sources of cheap raw materials, for luxury imports, and for undeveloped fields for investment of accumulated surplus capital. Merchants in the old Hanseatic cities of Hamburg, Bremen, and Ltibeck conceived the idea that German economic expansion overseas could again make the North Sea ports the commercial center of Europe. Lured by this possibility, and by the prospect of high returns from foreign investments, they sent out agents to Africa, to the Pacific islands, and to Latin America, and provided them with capital and credit to locate and develop new markets and previously untapped sources of raw materials Some of these agents, often younger sons of merchant families, established themselves in Guatemala. The Hansa cities also accredited a large corps of diplomatic and consular officials to represent their growing interests abroad. Gaceta de Guatemala (Guatemala), Vol. VII, No. 13, July 21, 185^. This is an extract from the diary of an unidentified German traveler in Guatemala. "'""’Mary Evelyn Townsend, European Colonial Expansion since 1871 (New York, 19^1), p. 25; Mary Evelyn Townsend, The Rise and Fall of Germany’s Colonial Empire, 188U-1918 (New York, 1 9 3 0 ) , pp. Ut-50. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r The three cities appointed Karl F. R. KLee as Consul General in Guatemala during the l8^0's. He successfully negotiated and signed in 18UT a treaty of "Friendship, Commerce, and Navigation," which helped to regularize relations "between the North Sea ports and Guatemala.1^ During the l850's and l860's Klee and his successors also represented the government of Prussia. 17 German commercial representatives were drawn to Guatemala for various reasons. The domestic market was only meagerly supplied with European goods, and the size of the population and the physical location of the country between the Caribbean and the Pacific gave it incipient commercial value on a much broader scale. The promise of gratuitous land grants and tax immunities offered opportunity to open vast areas of fertile virgin lands to cultivation of a number of profitable agri­ cultural crops, such as coffee, and to export the produce through the nearest port to markets in Europe or the United States. Increased exports could in turn be expected to expand the Guatemalan market for imported manufactures. During the l850's and the l860’s a number of individual Germans came to Guatemala and began to test its economic possibilities. The first arrivals settled in Guatemala City where, with the financial backing of firms in Hamburg and Bremen, they established several commercial houses and general merchandise stores. With the waning of "^Jose Rodriguez Cerna (comp.), Coleccion de tratados de Guate­ mala, 3 vols. (Guatemala, 1939-19^)> Vol. Ill, pp. 5-12. 17 RamSn A. Salazar (comp.), ColecciSn de tratados de Guatemala (Guatemala, 1892), pp. 11, 26. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r ni British commercial dominance in Guatemala, Germans gradually replaced Englishmen as the leading merchants in the capital, and as the German firms prospered, they began to expand the scope of their commercial activities. By 1870 there were in Guatemala City about half a dozen important German houses, including Hockmeyer & Rittscher, Koch, Hagmann & Co., E. Ascoli, and Rieper, Augener & Co. These firms were importers, real estate and commission agents, and retail merchants, and offered banking and brokerage facilities as well. Additionally, one of the partners of Hockmeyer & Rittscher was the director of the company that controlled and operated most of the wharves at Guatemalan Pacific ports. Rieper, Augener & Co. were agents for the Norddeutscher Lloyd Line, which offered steamship service between Bremen and the Pacific + I8 ports. During the I8o07s the established German firms in Guatemala City began to invest in agricultural ventures. Favorable conditions that existed at this time in the environs of Guatemala City and Antigua, and in the Pacific highlands, attracted German capital to coffee pro­ duction. Land had been cleared in these areas at an earlier date for the production of cochineal, but by the l850’s glutted European markets and the development of chemical dyes had begun to make this crop un­ profitable. Guatemalans in these regions had. already started, on a small scale, to cultivate coffee, and some had marketed their crops through German brokers in the capital. The Germans quickly recognized id Gaceta de Guatemala, Vol. XVI, Nos. 2, 3, 73, and 90, January 22 and 29, 1869, July 5, and November 12, 1870; Boletin Oficial (Guatemala), Vol. I, Nos. 27 and 6H, February 17 , and August 5, 1872. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r in that development of a coffee industry promised to supply a profitable export staple, for the climate and soil of the Guatemalan highlands produced a bean of exceptional quality that commanded high prices on the European markets. For two decades, until about 1875, there was a steady trickle of Germans migrating to Guatemala, but during the last quarter of the nineteenth century the trickle became a steadily flowing stream, as political, economic, and social developments in Europe impelled German businessmen to emigrate in larger numbers to underdeveloped areas of the world in search of new opportunities for investment. With the -unification of the German states, the upsurge of German nationalism, the emergence of Germany as the leading industrial power on the conti­ nent, and the expansion of the German merchant fleet, the seeds planted by men like List and Treitschke reached fruition. The clamor for colonies increased, and at the same time investments abroad rapidly picked up pace, as merchants and traders acting as agents for German import houses were sent overseas to enlarge existing commercial footholds and to make new inroads. Germany was not unique, however. During the last two or three decades of the nineteenth century, the idea of foreign economic expansion swept Western Europe like a tidal wave. This was the period known as the era of the ’’new imperialism” or the "new colonialism” when the old colonial powers like Great Britain and France acquired vast new posses­ sions and the colonial have-nots like Italy and Germany staked out empires of their own, when church missions and trading outposts became L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r iH first protectorates and then colonies, and when the nations of Europe divided among themselves large portions of the African and Asian con­ tinents and many of the islands of the South Seas. This was the period when the nations of Western Europe began to expand their commercial interests in areas like Latin America where territorial control was out of the realm of possibility, and when hundreds of financiers, merchants, and professional men left the Old World in search of in­ vestment possibilities and employment opportunities in the New. This was also the period when hundreds of thousands of ordinary Europeans emigrated, many to the United States, others to Chile, Brazil, and the Argentine, to make a new life for themselves. During this same period changes occurred in Guatemala, which drew an increasing number of Germans to that country. In 1871 a liberal revolution overthrew the incumbent conservative regime and in­ stalled a new government whose leader, General Justo Rufino Barrios, like his predecessor Mariano G£lvez in the l830fs, was of the firm conviction that the extent of European immigration would determine the economic future of the country. He regarded the Indians, who consti­ tuted the vast majority of the population, as an inferior race in­ capable of initiating commercial or agricultural advances, and this opinion reinforced his belief that without European settlers progress and national development were an impossibility. Like Galvez, it was his dream that large-scale immigration would magically transform Guatemala into a land of great wealth and commercial activity, because foreign settlers, with their native vigor and their superior skills and knowledge, would not only help the country to realize the advantages L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r iil proffered by the natural gifts of climate, soil, and geographical sit­ uation, hut would provide the preceptors needed to enlighten the 19 nat ion's populac e . In this spirit Barrios sponsored a series of decrees designed to induce foreigners to come to Guatemala. The immigration laws of the 1820's and 1830's, which had been formulated to attract largely the interest of colonization societies, he believed to have been illconceived, too hastily formulated, and thus ineffectual in their results. To remedy these deficiencies he established on January 20, 1877 > the Sociedad de Inmigracion, composed of ten nationals and ten foreigners, to study the immigration laws of Peru, Chile, the Argentine Confederation, and the United States, and to draw up an immigration law that would be both practicable and effective for Guatemala. 20 On February 27, 1879> Barrios affixed his signature to an immigration law, which was based on the reports, suggestions, and collaboration of the .* Sociedad de Inmigracion. 21 The 1879 immigration law was an attempt to regulate and en­ courage the spontaneous immigration of individuals and to define the rights of settlers in Guatemala. The law promised a number of con­ cessions to foreigners settling in Guatemala. It allowed any immigrant 19 Chester Lloyd Jones, Guatemala, Past and Present (Minneapolis, 19^0), p. 56; J. Mendez, Guia del inmigrante en la Republica de Guatemala (Guatemala, 1895)> PP* 6-7Mendez reiterates Barrios' views in the opening section in which he dedicates the book to Barrios. 20 Guatemala, Recopilacion de las leyes de Guatemala emitidas por el gobierno democritico de la Republica de Guatemala, edicion oficial (Guatemala, 1889), Vol. II, pp. 17-18. Hereinafter this work is cited as Leyes de Guatemala. Ibid., Vol. II, pp. 2IA-250. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r fii to disembark without charge and to "bring into the country duty-free personal property, domestic animals, and agricultural implements. The immigrant could receive a free grant of land from the terrenos baldios that were available, or he could purchase land already in private hands. All Immigrants were exempted from military service, and those who settled on terrenos baldios were exempted for ten years from all personal and direct imposts except the mandatory contribution for road work. Under the law the Sociedad de Inmigracion became the official organ for attracting foreigners to Guatemala, and for this purpose it was to appoint agents abroad to publicize the advantages offered by Guatemala. The Guatemalan government also passed laws that, while not affecting the immigrant directly, facilitated his successful settle­ ment. The Barrios government revised the land laws of the country so as to remove the legal obstacles that prevented the break-up of the terrenos baldios into private holdings. Most of the baldios were placed under the Jurisdiction of the departmental governors, the Jefes Poli­ ticos, who were empowered to sell unclaimed lands on the basis of written denouncements, that is, declarations of intent to buy at public auction. 22 The new land laws simplified the acquisition of terrenos baldios by placing the transaction on a local, rather than national, level. They eliminated many delays caused by government red tape and the poor state of communications with the capital. Outside of the vague opportunity 22Guatemala, pp. lUO—1^4-3. Recopilacion de leyes agrarias (Guatemala, 1890), Hereinafter this work is cited as Leyes agrarias. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r in of a free land grant they offered, the laws gave Germans and other foreigners no particular advantage over Guatemalans, except that many of the immigrant settlers had capital resources, which enabled them at auctions to outbid natives for the best lands. The Guatemalan government also tried to encourage the develop­ ment of agriculture by offering bounties, tax exemptions, and other privileges to persons, foreign or native-born, that cultivated certain agricultural products. In 1878 the government ordered the Jefes Politicos to give preference to requests for public lands for production of cacao, rubber, sarsaparilla, and maguey, and it promised bounties for cultivation of these crops. 23 In order to promote the cultivation of wheat, bananas, and coffee, the government ordered the Jefes Politicos to expedite grants of land for production of these staples by allowing prospective buyers to purchase land at reduced prices without public sale. 2k The government of Guatemala also passed legislation to insure an adequate supply of labor for the development of agriculture. Barrios was determined that the Indian population should provide the labor force needed by entrepreneurs. With this idea in mind, the govern­ ment passed a law in April, 1877* that gave plantation owners the legal means to obtain the permanent and temporary workers their operations required. 25 Landowners were authorized to make contracts with Indians 23Ibid., pp. 98-99. 112-113. 2l*Ibid., pp. 98-99, 108-111. OC Leyes de Guatemala, Vol. II, pp. 69-75* L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r rj\ to live and work on their properties for a period of up to four years. These resident laborers were called colonos, and the law sanctioned a system of debt peonage by which the owner could tie these people to the land and thus avert the problem of having to find new workers every four years'. During the harvest season, when additional hands were needed, the planter could request as many as sixty men, who worked for one or two weeks at low wages. Although Barrios died in 1885, his successors carried on his program to attract immigrant settlers.^ disappointing. Numerically, the results were In 1896 there were fewer than four thousand Europeans and North Americans living in the country, 27 later the number was approximately the same. and twenty-five years 28 Nevertheless, the foreigners, few as they were, exerted considerable influence, for the country largely attracted a particular type of immigrant— one who had capital resources or credit connections; one who had special training, skills, or talent. Persons from the United States engaged in railroad construction and the development of the banana industry, and German immigrants, although not the largest national group in Guatemala, at­ tained a dominant position in commerce and in the coffee industry. To a great degree, the interest of potential emigrants and Guatemala, Memoria de la Secretaria de Fomento, presentada £ la Asamblea Nacional Legislative en 1888 (Guatemala, 1888), p. 33; ibid. 71889), p p . 6-31; ibid. (1909), PP. 123-12U; ibid. (1910), p. 21. In subsequent footnotes volumes from this series will be abbreviated to: Fomento (date). ^Mendez, p. 69 . ^ Fomento (192U), p. 295* L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r investors in Germany was drawn to Guatemala by the government's atti­ tude towards Germans and its efforts to attract settlers from that country. Barrios and his successors seemed to favor German Immigration over that of other nationalities. Jose Maria Reina Barrios, for ex­ ample, had traveled widely through Germany and was an avowed 29 Germanophile. 7 To represent Guatemala's interests in Germany the government accredited a Minister Plenipotentiary in Berlin, 30 and to accommodate the needs of a growing volume of trade it expanded its consular corps in Germany from five representatives in 1885, to eleven in 1902, to nineteen in 1913, with offices in sixteen cities. 31 For the most part these consular posts were occupied by Germans, many of whom had businesses or investments in Guatemala and used their office to disseminate propaganda favorable to Guatemala. 32 Germany 29 German Foreign Ministry Archives, Guatemala No. 1. Negative microfilm at the University of California, Berkeley. UC III, Reel 22, Frames 198-199* Letter: Werner von Bergen, German Minister Plenipo­ tentiary, Guatemala, to Chancellor Caprivi, Berlin, March 15, 1892. Ibid., Reel 22, Frames 278-280. Letter: F. C. von Erckert, German Charge d'Affaires, Guatemala, to Chancellor Hohenlohe, Berlin, June 18, 1897* Hereinafter this microfilm will be cited as GFMA. OQ Guatemala, Memoria de la Secretaria de Relaciones Exteriores^ presentada a la Asamblea Nacional Legislativa en 1903 (Guatemala, 1903), p. 71* For a number of years Guatemala's chief diplomatic official in Europe was the Envoy Extraordinary and Minister Plenipotentiary, resident in Paris, whose Jurisdiction included France, Great Britain, Belgium, and Germany, but in 1902 the Guatemalan government accredited a second Minister Plenipotentiary, resident in Berlin. Subsequent references to volumes from this series will be cited as Memoria. . . Relaciones Exteriores (date). 31Ibid., (1886), Chart 5; ibid. (1903), p. 71; ibid. (191*0, pp. 507-508. 32Ibid. (1897), PP* 73, 102-176; ibid. (191*0, P* 3**. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r likewise expanded its diplomatic representation to Guatemala by accrediting additional consular posts 33 and raising in 1889 the rank of its chief diplomatic official in the country from ChargS d fAffaires 3I1 to Envoy Extraordinary and Minister Plenipotentiary. Furthermore, the official reports of the German Minister in Guatemala to the Foreign Ministry- were usually published in the Hamburg!scher Correspondent, the Norddeutsche allgemeine Zeltung, and the Berliner neueste Nachrichten, and thus these served to keep businessmen informed of developments and investment possibilities in Guatemala. 35 Equally important, between 1887 and 1915> the Guatemalan and German governments were bound by a treaty of "Friendship, Commerce, and Navigation," which extended to Germans a number of advantages not granted to nationals of other foreign countries outside of Central America. The treaty, which was ratified by the Guatemalan legislature and approved by President Manuel Lisandro Barrillas in 1887, con­ tained both a most favored nation clause and articles granting prefer­ ential status and broad guarantees to nationals of one country residing ~>~>Ibid. (1909), p. 570. suls in Guatemala. In 1908 there were eleven German con­ 0J1 0 Ibid. (1890), Chart 2. 35 Guillermo Nafiez Falcon,*The Activities of the German Ministers Plenipotentiary in Guatemala, 1876-191V'(Unpublished seminar paper, Tulane University, New Orleans, 1962), pp. 5-6. 36 Salazar, pp. Ul-5^; Leyes de Guatemala, Vol. VI, p. U 59. In 1901 President Manuel Estrada Cabrera of Guatemala announced his intention to abrogate the treaty in June, 1903» so as to open the way for negotiation of r new treaty. No new agreement was reached, and after 1903 Estrada Cabrera extended the treaty on a year to year basis, until 1915 when it was allowed to expire. NCfiez Falcon, pp. 7-8. J R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r 20l In the other. nationality. The agreement also assured the perpetuation of German According to a clause included therein, children born of German parents in Guatemala were German citizens, unless they elected Guatemalan citizenship upon reaching majority, and children of all subsequent generations were guaranteed German citizenship if their parents had maintained their German nationality. The reverse was also true for children of Guatemalans born in Germany. Many of the articles in the pact were clearly Guatemalan concessions to Germany, for although the two countries granted mutual privileges and assurances, it was Germany, not Guatemala, that had large investments and many nationals in the partner country. The favorable attitude of the Guatemalan government, together with the commercial and agricultural possibilities the country possessed, attracted German immigrants and investors. Some of the Germans who came to Guatemala were young men with capital resources of their own or with guarantees of credit from firms in Germany. Many more, however, were brought over as contract workers by their already estab­ lished countrymen, who needed clerks, bookkeepers, and administrative assistants for their offices, and managers and overseers for their plantations. The contract workers frequently remained in Guatemala after completing their term of obligation. Some continued working, but if they had managed to accumulate some capital and had made credit connections, they generally established a business or bought a finca (a plantation or a rural property) of their own. These men in turn brought more contract employees. During the last three decades of the nineteenth century the L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r German business community expanded notably In Guatemala City and In the Pacific highlands around Quezaltenongo and Retalhuleu. By 1098 there were about one hundred Germans in Guatemala City and some twentyeight German business establishments, a number of which had a working capital of more than 1,000,000 MarkB. 37 In the same year German in­ vestments in commercial firms in Guatemala totaled more than 12,000,000 Marks, and the annual value of business of the German houses . 39 1*0,000,000 Marks. * wbb about By the turn of the century Germans were the leading importers, merchants, and brokers in Guatemala. Resident Germans contributed a part of the capital for these enterprises, but the larger portion was supplied by mercantile houses and other sources in Germany. Although German firms in Guatemala maintained close commercial ties with business houses in Germany, which extended them credit, they obtained only about one-half of their stocks from Germany. By the mid-l890’s Germany had overtaken Great Britain in value of export trade to Guatemala, ranking second behind the United States, 1*0 and be­ tween 1897 and 1913 the value of German exports to Guatemala averaged about 2,600,000 Marks a year.^ The increase of German exports to 0*7 F. C. von Erckert, ’’Die wirtschaftlichen Interessen Deutschlands in Guatemala,” BeitrSge zur Kolonialpolitik und Kolonialwirtschaft, III (1901-1902), p. 27538Ibid., p. 283. 3^GFMA, Reel 22, Frame 369* Newspaper clipping from the Norddeutsche allgemeine Zeitung, December 9» 1897* 1*0 . Erckert, p. 27**; GFMA, Reel 22, Frame 300. dated 1895- Statistical chart 1*1 Germany, Statistisches Jahrbuch fur das deutsche Reich. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. . r 22I Guatemala, however, was partly the result of the overall growth of Guatemalan imports and did not occur at the expense of North American and British trade, which also increased during this period. In the marketplace German businessmen were pragmatists, not nationalists, and they purchased the cheapest goods, regardless of place of origin. Thus, while Germany supplied most drugs and a considerable amount of machinery, equipment, and hardwares to Guatemala, British textiles continued to dominate the market. k2 Nevertheless, the exports of German firms in Guatemala were transported chiefly on German ships, operated by the Hamburg-America, Norddeutscher Lloyd, and later the Hamburg-Pacific, Kosmos, and Kirsten lines. During the latter part of the nineteenth century many Germans of the merchant class were strongly attracted to coffee producing areas around the globe. This was, to a great extent, an outgrowth of the mammoth expansion of the Hamburg coffee market, and to a lesser degree of the Bremen market, during the l850's and the i860's. Ham­ burg by the end of the century had become the clearing house for almost all the coffee imported to the continent, and from this port the commodity was transshipped to other countries in Central and Western Europe. Owing to this phenomenal development, there were scores of Herausgegeben von Kaiserlichen Statistischen Amt 1903 (Berlin, 1903), p. 171; ibid. (1908), p. 197; ibid. (l912), p. 251; ibid. (191*0, p. 25I+. ^^Maximiliano Nackmann, British Trade with the Republic of Guatemala (Liverpool, 189*0» pp. 4-10; [Harrison], p. 307. Karl Schonfeld, Per Kaffee-Engroshandel Hamburgs (Heidelberg, 1903), p. 1. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 23I coffee Importers, brokers, and commission merchants in the city who were eager not only to lend money to established producers, but to finance enterprising young men who wished to start new coffee plan­ tations. It was almost inevitable that the Guatemalan highlands should lure German financiers, for in addition to the commercial possibilities that existed, the nascent coffee industry with its product of proved superior quality was enormously attractive to investors. Germans, who had purchased land for planatations in the l860’s, in the following decades enlarged both holdings and production, a process facilitated by the benevolent attitude of the Guatemalan government towards land acquisition and labor. The later arrivals quickly followed suit, and the activities of both individuals and Joint-stock companies, such as the Hamburg-Plantagengesellschaft, greatly expanded cultivation and increased production. The peculiar advantage open to Germans was their ability to command resources, for lack of which Guatemalans had been unable to exploit fully the commercial possibilities of coffee production and export. Native producers usually lacked the capital necessary to con­ vert into coffee orchards fields planted to cactus for raising cochineal, to clear and plant virgin lands, and to sustain the undertaking during the several unproductive years required by coffee trees to mature and to bear fruit. They also lacked European commercial connections that would enable them to market their crop profitably, and thus supply incentive and resources for the improvement of transportation routes to the Pacific ports of Champerico, San Jose, and Ocos through which their L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 24I product was shipped. Although most resident Germans likewise lacked sufficient capital to undertake large-scale coffee production, they had connec­ tions with German commercial firms and other investors, who willingly extended credit in the form of mortgage loans and advances on future crops. Germans, furthermore, were able to secure capital not only for their own enterprises but to lend to producers of other nation­ alities. Equally important, Germans through their creditors had connections with shipping lines and marketing and brokerage houses that assured them of transportation and distribution facilities and ready buyers for their products. German activity in the coffee industry greatly stimulated the economic life of Guatemala. Coffee production increased phenomenally and coffee exports Jumped from 16,000,000 pounds in 1873 to more than 76,000,000 in 1895. Nearly sixty percent of the total exports went to Germany, where Guatemala ranked second, after Brazil, as the country's largest coffee supplier. By 1890 coffee had displaced cochineal as Guatemala's chief export and as the backbone of economic life in the country. Germans dominated coffee production almost completely. Most of the coffee produced was grown on German-owned fincas, or on Guate­ malan-owned fincas developed by German capital. Since many coffee planters were indebted to German commercial houses, they shipped the ^Erckert, p. 275 > Mendez, p. 30. ^Germany, Statistisches Jahrbuch (1911), p. 233. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 25I bulk of their crops through German firms. As coffee exports grew, German steamship service to Guatemala increase! accordingly. Nowhere in Guatemala was German dominance more fully achieved than in the department of the Alta Verapaz. 46 The Alta Verapaz was an isolated, mountainous section of Guatemala, inhabited almost entirely by Indians. Although some people recognized its commercial and agri­ cultural potential, prior to 1870 it had experienced little outside influence from ladinos (non-Indian, Spanish-speaking Guatemalans) or from foreigners. Its lands were virgin and its resources, untapped during previous decades, awaited development. German interest in the Alta Verapaz was an outgrowth and an extension of previous German experience in Guatemala. Import firms, the basis on which German activity began in Guatemala, did noc exist in the department, and the Germans believed that the first enterprises of this nature would enjoy a market virtually free of competition. The region also contained large areas of unclaimed public lands, which the immigrant could obtain easily. Coffee of superlative quality grew there under nearly ideal natural conditions, and although it was produced chiefly for local consumption, the prospects for expansion were excellent. A large Indian population, concentrated in the mountains, was available to provide labor for the plantations and carriers to transport the produce. Although land transportation lines in the interior were most primitive, the Polochic River offered some facilities Guillermo Nafiez Falcon,“German Contributions to the Economic Development of the Alta Vera Paz of Guatemala, l865-1900''(Unpublished M. A. Thesis, Tulane University, New Orleans, 196l). L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 26l for the export of a hulk commodity from the department. On the hasis of the large profits realized hy coffee planters on the south coast, settlers in the Verapaz believed that they could expect a veritable bonanza. German settlement and economic development of the Alta Verapaz followed a pattern similar to that established by earlier German immi­ grants in Guatemala City, Antigua, and the Pacific highlands. Imm igrants came, not in groups, but as scattered individuals, and in almost every case they had connections with existing German business houses in Guatemala or in Europe. Generally, the newcomers were first associated with local German commercial firms and then gradually extended their activities into coffee production. The first permanent German settlers, H. R. Dieseldorff and Franz Sarg, arrived in the Alta Verapaz in the late i860 1s. They established general merchandise stores in Coban, the capital city of the department, and subsequently began to invest in coffee properties. During the 1870's a few more Germans settled in the department. had come as contract workers; others, on their own. were approximately twenty-five Germans living m Some By 1880 there the Verapaz. 1+7 As German businesses and plantations in the Alta Verapaz prospered, news of this development began to spread by word of mouth. As a result German immigration to the department picked up pace. Rela­ tives and friends arrived to join their established countrymen, and the merchants and planters employed an increasing number of contract workers. 1+7 Guatemala, Censo general de la Republica de Guatemala, levantado en el ano de 1880 (Guatemala, l88lT, p. 150. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 27l Between 1880 and 1900 approximately 150 Germans, including Erwin Dieseldorff, settled in the Alta Verapaz. 1+8 There were, to he sure, •immigrants of other nationalities during this period— North Americans, Italians, Frenchmen, and Spaniards— hut these were only a handful. The steady influx of Germans continued until the 1930's, and all together the group formed a small hut influential foreign enclave, which re­ tained strong national ties and loyalties. During the last quarter of the nineteenth century the economic power of the Germans in the Alta Verapaz was rapidly consolidated. Cohan they monopolized retail merchandising. In In the countryside, they purchased vast tracts of land, which they cleared and planted to coffee. Horticultural experiments and innovations in cultivation techniques enabled them to increase production on their plantations and to improve the quality of the crops as well. Thus they came to he not only the largest landowners hut the leading coffee producers in the department. With the introduction of new machinery and equipment they were ahle to prepare coffee for market more quickly and efficiently and to establish commercial processing plants, which were without com­ petition. As the coffee-based economic system grew, most of the popu­ lation of the department was drawn into it. The small landowners, both ladinos and Germans, who lacked processing equipment and market outlets, sold their crops to German exporters, who had often times advanced credit on coffee futures. The Indians provided the necessary permanent and temporary labor force and also became small-scale sup­ pliers of unprepared coffee. L77-8U. The Germans also attained certain Deutschtum in der Alta Verapaz (Stuttgart, 1938), Table I, pp. j R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r 28l elements of an economic infrastructure by undertaking necessary trans­ portation improvements: extending roads and footpaths in the depart­ ment; building a cart road to the Polochic; introducing carrier vehicles and draft animals; engaging a paddle steamer to provide service between the river ports and Livingston on the Bay of Honduras; con­ structing a railroad between Pancajche and the fluvial port of Panzos; and securing regular steamship service between Livingston and ports in Europe. Much of what they accomplished was made possible by the avail­ ability of credit from Germany, but their personal effort was by no means inconsequential. By 1900 German hegemony was complete, and the Alta Verapaz was virtually a German economic colony. Henceforward, until World War II when most German-owned properties were confiscated by the Guatemalan government, coffee, the main crop of the department, was produced, processed, exported, and marketed principally by Germans. Erwin Dieseldorff was a part of the wave of German immigrants who came to the Alta Verapaz during the late l880's and the 1890's, and his career, which spanned almost half a century from 1888 to 1937, paralleled the careers of other Germans in the department. At the time of his arrival, countrymen who had preceeded him had already set in motion the wheels of change that were to transform the Verapaz, and Dieseldorff from the start worked within the established agricultural system that he found there. In this respect, neither he nor the other immigrants of his generation were innovators or pioneers, but the fact that Dieseldorff did not introduce any new elements into the existing system is perhaps of less consequence than his achievement. His con­ tribution lay in refining the system and bringing it to the peak of L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 2?i performance as few others were able to do by employing his talents for organization, planning,and management and his ability to draw upon the experience of others. With sedulous industry he expanded his business operations from a modest beginning into the largest privately owned enterprise in the Alta Verapaz, an enterprise that not only encompassed practically every activity related to coffee, but one that included the largest retail merchandising concern in the department as well. Dieseldorfffs was not a simple success story, however, and his career can hardly be regarded as an isolated occurrence. He was, among other things, one of the Germans who contributed to the development of the Alta Verapaz coffee industry as a foreign monopoly, and he was a member of the small German minority, which became economically in­ fluential in Guatemala. More generally, he was a product of the late nineteenth century movement in Germany and in other nations of Western Europe for commercial and economic expansion into underdeveloped areas around the globe. Thus, his emigration to Guatemala and his investment and work in that country have import on a broader scale, for his career serves as a case study to test the generalizations com­ monly accepted by scholars, nationalist writers, politicians, and the public about the nature of German and European economic imperialism before World War I, and specifically about the nature of German activity in Guatemala and in the Alta Verapaz. Dieseldorff’s career, viewed as a twentieth century phenomenon, also illustrates some of the problems of modern economic development, which confront potential developers and emerging nations alike. It can furthermore serve first as a basis for comparison of the internal changes anticipated by the L_ R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Sol host country when it extended special privileges to attract immigrants with actual results, and additionally as a basis for speculation about possible factors that affect the outcome of undertakings in backward areas of the world. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J mam. k '/ 4 , * ^ , "M . Va w m * ,,. 'W M W m W f /V-. / : / // /// /■■ .■' / v W 'W w / y '' m m //' -; \ f ~ ' w nous 77/ / / / / / '/ . '/ '/ . W M /m '/ / 'A z ,/ ' / " r/y m. 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W*ri• •—*•••••: ’■ t *- CMI.5S»ia1fS'- *^"■S^guatemala' Juj* r*\m s * ,£•«* i^ Q U E Z A L T E N a s C O ^ ip ^ v a f Y / A rv<s> - v V ^ ^ r /1 £j-J-<y«*~t il-t-tx'£*~tI ' " i. - r j ^ ) u rr ** ^ • :,<*,yi w ■yu ^rerss^ *, .... /R E T A L ^ y ir% U | - ' ' * ; ' \ I T --= \ X \ • - I w k x=z>i '.T r y 7 * k.'-" - / W iu a t c a la “^y Tw*'AACw* vc i. o■ «qi'* «*i —,mJ? 't sa JVi, b 5 r.— .>Af2?voZl-JV^= I -| i a-*v - • '•:n / S U J C H IT /a#2 ^ J w d £ ? ~ *- .-■ •r~AI "v-* - ' ■“ V ' •: •». f: . •- A- r - f i \\ /? \ \\VI -~*-^*4 « E F E « E N C IA S — ---------— - — ----------— — - A U M lT C A IM U »« A C »O N *L c m iT C OC’ A A T A a ta T A L C A P IT A L o CASCCCAA • O T tO f ** — — —’ — — A O a tA O O t P ( M K A M ll C A a a C T tftA A A M A M C a iC A M C A A M T IH t* OAMa • to LA O O 0 U W M A V A IC M • * M IO N M IfA ; ' . -* .'A £ r« Jl / santa/ nosa <T M*Qd«« f - > c u tu a to v iu w A CCMO 31 R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. , ) * 4 $ '///'AY, ’v//////'/, ' / t '. ' S<' r V ■y--,- •■ V K ' j m r , % t> \ , ¥ h, * ■■./,. ..SS ,,s i t i mm, 'Z '-'///Z '. fSs, t / s 4 % '/S'/'/- I Z A B A L f ' * ' AREAS Y POBLACION ZACAPA C L PRC G U A T E M A L A p o iia c i6 n OCPAWTAMtWTO G R ES O ACTA J A jA VfPAPAZ VfN A P A I CHIMALTrAA<160 CmQUiPJhA il ^ o cn is o P f1 t« • p n o c a is o Cn i QUIMULA * .. Cn i O u i m u . a 0UICH< rscumii A 6 U A tl» A lA V •*U (N U (TC M A H 60 i Za s a l jalapa \— J U ’ lAPA O U l 7 A lT tNAMOO r AC t A t M U l( U -t yvr s 'm / / / ' , / //, r — 'TT' S ~ ~ -. .. Y f a Vi S ACATf PC OUf X SAN MAHC01 SANTA NOSA SOLOkA S U C H iT fP tO O Il TOTCNlCAPAN fK > 0 ZACAPA >0 i W / ///, /s '4 S? tm tm m m s rm to m m m M .0 € V ' qe 'f ' '* '4 4 mm m u cnsfeeeeftmSM!^ •-:-..,,, ■ ■;,y¥y . :;V m m '' -M z'/z/.-y/c R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r n CHAPTER I ERWIN PAUL DIESELDORFF Erwin Paul Dieseldorff abandoned a budding business career in Europe and emigrated to Guatemala in 1888. His decision was not acci­ dental, nor was his successful venture in Central America strictly fortuitous. He was born into a family that had been active in the commercial life of Hamburg and Central America for many years. From the beginning of his career more experienced relatives provided him sound advice and valuable connections with banking and import firms in Hamburg, as well as London. His decision to settle in the Alta Verapaz and become a coffee planter and exporter followed the prece­ dent set by an uncle and two cousins, who had emigrated there before him. Erwin's grandfather, Johann Heinrich Dieseldorff, had been one of the leading bill brokers in the Hamburg grain market. Although he had been a man of considerable means, he died practically penniless in 1835 as a result of a crash in the grain market. The reversal in the family fortunes failed to daunt his sons, three out of four of whom— Charles William (known as C. W . ), Johann Peter Daniel (Daniel, Erwin's father), and Heinrich Rudolf (H. R.)— went on to amass fortunes of their own.''’ Arthur Daniel Dieseldorff, Bound manuscript entitled "FamilienChronik,” pp. [15]> [22], Dieseldorff Library, Coban, Guatemala. Here­ inafter the abbreviation "DL” will be used to denote manuscript material from the Dieseldorff Library. L 32 R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r iii The eldest son, C. W . , horn in 1813, worked for a number of years in Liverpool and New York. Eventually he decided to try his luck in Central America and traveled there to acquaint himself with the possibilities of the area. After surveying several ports he decided to settle in Belize, British Honduras, where he worked for various commercial houses until 181*3 when he and a man named Hasteos started an export business. The firm prospered, and four years later C. W. was able to open his own export-import company. This venture proved to be highly successful, and in the next decade he extended his trade connections to the ports of Panzos, Izabal, and Livingston in Guatemala, and to Omoa and Trujillo in Honduras. In 1857 he became a British subject and was elected to the legislative assembly (com­ posed of eighteen elected and three appointed members) of the Settle­ ment of Belize. When the Settlement became the Colony of British Honduras in 1862, he was made an appointed member of the assembly. He was plagued by ill health, however, and in 1861* he decided to leave the insalubrious climate of Belize and resettle in England. His commercial connections enabled him quickly to establish himself in London as a commission merchant for trade to Belize and Central America.' Daniel Dieseldorff was born in 1826. When he was about eighteen he traveled to Belize where he worked for his brother C. W. for a few years. Later he and his younger brother H. R. ventured to Australia 2 Notebook kept by Erwin P. Dieseldorff while in London, [18851888], pp. [1*], [7], Dieseldorff Collection, Special Collections Division, Tulane University Library, New Orleans. In subsequent citations the abbreviation "DC” will be used for the Dieseldorff Collection. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r in search of new opportunities for advancement. After some time Daniel returned to Hamburg, where he worked for various mercantile houses. Among the positions he held was that of confidential clerk (Prokurist) for Godefroy & Co., the well-known firm that had initiated German trade in the South Pacific. In time he went into business on his own, first outfitting merchant ships with naval stores and supplies, and later, after he had acquired several steamships, operating a shipping line between Hamburg, Cuxhaven, Helgoland, and Norway. He also owned a sailing vessel that transported passengers and cargo from Germany 3 to Australia. The youngest of the four Dieseldorff brothers was H. R., who was born in 1831. Belize. As a young man he also worked for his brother in About i860 he decided to go out on his own, and with money he had managed to save he attempted to start a cotton plantation at Gualan, near the Motagua River, in the Department of Zacapa, Guate­ mala. The venture failed, unfortunately, when the first crop was k destroyed by locusts. a populous In the meantime, he heard of the Alta Verapaz, but isolated region meagerly supplied with manufactured goods imported through Guatemala City. Direct import of European goods to Coban, the capital of the province, seemed to offer great oppor­ tunities for profit, and thus in 1865 he made the arduous trip to Coban and became the first German to settle permanently in the area. His store, stocked with imported merchandise purchased with credit ^A. D. Dieseldorff, "Familien-Chronik," pp. [32-33], DL. ^Deutschtum in der Alta Verapaz (Stuttgart, 1938), pp. lU-15; Interview with Mrs. Maria Luisa Dieseldorff de Hempstead. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 51 extended lay his brother C. W . , was an instant success. Soon he was able to buy property and expand his activities into coffee production and export.^ The other Dieseldorff brother, Friedrich August (F. A.), born in 1817, did not achieve comparable prominence in commercial circles. He was an artist and spent most of his life in Vienna. Marie Rethey, whom he married in 1848. There he met The couple had two sons, Stefan August (August), born in 1852, and Wilhelm Anton (W. A.), born in 1856. F. A. Dieseldorff died in 1862, and soon afterwards his widow moved to Hamburg, where she settled permanently with her two children. In 1865 she wedded her brother-in-law Daniel, and Erwin Paul was born of this union. F. A. Dieseldorff's sons played important roles in the development of the Alta Verapaz. They emigrated to the department 7 around 1880 and went into business with their uncle H. R. Both brothers had had previous training and experience in London, August as an employee in his uncle C. W. 's office, and W. A. as a confiden­ tial clerk for a coffee import and export company. Once in Guatemala, August concentrated his energies on expanding the import volume and For a more detailed account of H. R. Dieseldorff's career see: Adrian Rosch, Allerlei aus der Alta Verapaz, Bilder aus dem deutschen Leben in Guatemala, 1868-1930 (Stuttgart, 1934), p p . 1427; Guillermo Nanez Falcon,“German Contributions to the Economic Development of the Alta Vera Paz of Guatemala, 1865-1900"(Unpublished M. A. Theses, Tulane University, New Orleans, 196l), pp. 19-23. ^A. D. Dieseldorff, "Familien-Chronik," pp. [27-29], DL. 7 Deutschtum in der Alta Verapaz, Table I. The date gives is 1880, but they may have come as early as 1877• this book L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 36l retail sales of the Dieseldorff store in Coban and opening branches in other towns in the department. In 1890, when his uncle retired, August assumed management of this part of the business. W. A., on the other hand, was more interested in coffee production and in the business of importing and selling machinery to process coffee for market. He was also the key figure in obtaining financial backing to build a railroad in the Verapaz, and he supervised much of the 8 actual construction of the line. Erwin Paul Dieseldorff was born in Hamburg on June 10, 1868, the second son of Johann Peter Daniel Dieseldorff and Marie Rethey. Dieseldorff’s mother died when he was four, and a year and a half later his father married Marie Louise Sophie Behrens, whom young Erwin and his older brother Arthur came to regard as their mother.9 As a member of a mercantile family such as the Dieseldorffs, it was understandable that young Erwin set his sights on a career in trade and commerce. He was energetic and ambitious, and the financial success of his father and his two uncles, as well as the stories they must have told of their experiences abroad, could not but fire his desire to visit new areas— Africa; Australia, Central ®A. D. Dieseldorff, "Familien-Chronik," pp. C 2J-29J, DL. ^Confirmation certificate for Erwin P. Dieseldorff (March 18, 1883), DC, Family Documents; Death certificate for Marie Diesel­ dorff nee Rethey (October 18, 1872), DC, Family Documents; Marriage certificate for J. P. D. Dieseldorff and Sophie Behrens (May l*t, 187*0, DC, Family Documents. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r an America— and seize for himself a share of the riches found there. Even as a young man he was impatient to achieve success of his own, to the point that he could easily have dissipated his energies and resources on ephemeral schemes; yet, in the crucial years of his apprenticeship, members of the family were near him to discipline and advise him and to guide him into channels where he could employ his talents to best advantage. Erwin Dieseldorff spent his childhood in Hamburg. He re­ ceived his education in various public and private schools in Hamburg, Einesbuttel, Eilbeck, and Luneburg, and in the spring of 1885 he finished secondary school. Although he was only seventeen at the time, he already felt a strong desire to embark upon a career immediate­ ly. Rather than travel leisurely through various parts of the world, as his brother Arthur was doing, he obtained his father's permission to accept employment in London with his uncle's firm, C. ¥. & A. DieseldorffC. W. was the owner of the business, but he had taken into junior partnership his nephew August, who acted as his agent in Coban. In April, 1885, Erwin became a clerk in the offices of C. W. & A. D i e s e l d o r f f T h i s position gave him an opportunity to become familiar with the organization and management of an import-export company. Equally important, he gained considerable knowledge of the markets in Central America and British Honduras, for the firm "^Notebook kept by Erwin P. Dieseldorff, p. [3], DC. ■^August Dieseldorff in Coban and G. V. Lambe in London were C. W.*s partners. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r ial imported a wide assortment of tropical products, including indigo from El Salvador, mahogany from Honduras, tortoise shell and fine woods from Belize, and, significantly, coffee from Cohan. The exports the company handled were equally varied, the most prominent heing dry goods and hardware from Manchester, Birmingham ware, corrugated iron, alimentary provisions, and liquors. Shortly after Erwin started work, his uncle became too sick to attend to the business. During his illness C. W. entrusted his nephew with the entire operation of the company. His duties involved supervision of the staff, verification of invoices and bills of lading, and responsibility for the vault keys and bank book. The young man scarcely knew English and had little managerial experience, and the British found his German script illegible. He must have done a good job, nevertheless, because his uncle, upon returning to work, increased his salary. C. W. Dieseldorff*s illness so debilitated him that the owner­ ship and management of his own business became too much of a burden. In May, 1886, he decided to sell out and go to work for another estab­ lishment. He joined the London commission merchant firm of P. Leckie & Co., which also had an office in Belize. Erwin took this occasion to visit his family in Germany, but he returned to London in August, 1886, and also went to work for Leckie, 12 There young Dieseldorff continued to gain commercial knowledge and experience. His employers were satisfied with his work and increased his annual salary from *1 p Erwin P. Dieseldorff, Bound manuscript entitled "Experencia Docet," pp. [9-12], [69 ], DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r £ 120. the first year to £ 150. the second (Erwin had brashly asked for £ l8o.), to £.200. the third, starting on June 1, l888.'1'^ During the period that Dieseldorff was at Leckie*s, his father died in Hamburg in May, 1887. According to the provisions of his father’s will, Erwin was to receive U5,000 Marks from the estate of his mother Marie Rethey. The money was invested in real estate mortgages, which Erwin could not collect until he reached his majority in 1889. From his father's own estate he was to receive 3,000 Marks annually for his support until he was twenty-one, and thereafter 50,000 Marks on July 1, 1893; 60,000 Marks on July 1, 1896; 100,000 Marks on July 1, 1899; and after 1900 an estimated 500,000 Marks, one lit quarter of the remainder of the estate. The prospect of receiving his inheritance whetted Erwin's ambition to advance himself and elevate his position in the Leckie firm. His state of mind is apparent from the following entry he made in his notebook in June, 1888: It is really most unsatisfactory for me to have no cer­ tainty but the first steps are always the most difficult ones, and although I work well, I am rather too ambitious. It is probable that there are few men, under 20, who have already such a salary C$L 200. annually], but at the same time much more has been accomplished by others at that age. The same month Erwin sought Peter Leckie's promise to make him a partner in the firm in 1890. The two men discussed the matter ■^notebook kept by Erwin P. Dieseldorff, p. C93, DC. ■^Death certificate for J. P. D. Dieseldorff (May I 887), DC, Family Documents; Testament of J. P. D. Dieseldorff (May 2, 1887), DC, Family Documents. "^Notebook kept by Erwin P. Dieseldorff, p. C9], DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r on several occasions, each time more heatedly, for Leckie adamantly refused to agree to make him a partner in 1890, or even to commit himself ever to allow Erwin to buy into the company. Young Diesel- dorff, dejected by Leckie's attitude and convinced that he would find few opportunities in London, determined to try his luck elsewhere. In the summer of 1888 Erwin's cousin A u g u s t ^ and his family visited in London for several weeks. The men saw a great deal of each other, and in conversation August aroused Erwin's desire to emigrate to Central or South America and establish a business of his own. August, of course, pointed out the possibilities offered by the Coban area, but Erwin had not yet formulated precise plans. Young Dieseldorff once again approached Peter Leckie and sought financial backing to resettle in Latin America. He asked to open an account with Leckie & Co. with an advance credit from the company of £ 5,000. to establish himself abroad and start a business. On the money he volunteered to pay 5 % interest per annum, plus commissions on sales made for him by the company, and he offered to put up his inheritance as security. Leckie flatly rejected Dieseldorff's request, pointing out that Erwin had only vague ideas concerning the type of enterprise he would undertake and that he had no first-hand knowledge of the customs and business practices of the people of Spanish America. Leckie added that the security Dieseldorff tendered would amount to only £. 2,200. in 1889, and because he was still a minor, any contract he signed would be of dubious legality. "^Young Erwin called August and W. A. Dieseldorff his cousins, but the two men were also his half-brothers. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r The sole offer Leckie felt he could make was to allow Dieseldorff to deposit with the firm monies not to be used for commercial transactions, on which the company would pay It % annual interest. 17 Leckie’s answer was sufficient to make Dieseldorff reconsider cousin August's recommendation to travel to Guatemala. With the support money from his father’s estate and some that he borrowed from August, he was able to finance the trip. On October 10, 1888, he sailed from Liverpool for New York with August and his wife Agnes, their son Fritz, and several servants. From New York the group traveled to New Orleans by train and from there sailed to Livingston, on the Bay of Honduras, where they arrived at the end of the month. The difficult trip from Livingston to Coban introduced young Dieseldorff to the only practical line of communication between the sea and the Alta Verapaz. His more experienced cousin served as a guide to point out to him the many transport problems that existed. First the party took the small paddle-steamer that provided service between Livingston and the fluvial port of Panzos, along the route of the lush, mosquito-infested Rio Dulce, across Lake Izabal, up the Polochic to the village of Panzos. Here Erwin learned that although the little port, which was situated in a pestiferous, low-lying area, appeared squalid and insignificant, it was the entrepot for all commodities shipped in or out of the Alta Verapaz. From Panzos to Coban the group traveled by mule over the only existing route, a muddy, unsurfaced cartroad, about fiv • et wide. Notebook kept by Erwin P. Dieseldorff, pp. [9-10], [20-24], DC. The latter pages contain copies of the correspondence between Leckie and Dieseldorff. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J 3 r With them went a guide, servants, muleteers, and fourteen Indian porters to carry the baggage and all the provisions and bedding necessary for the treacherous seventy-five mile journey. From Panzos to Tucurti the trail traversed a marshy region where endemic malaria endangered the health of all travelers. To reach Coban from Tucuru it was necessary to cross an extremely broken range of mountains, where the road was very narrow and steep, and often blocked by fallen boulders and landslides. The party had to halt on several occasions, because seasonal rains had made stretches of the road impassable. After an exhausting four-day journey from Panzos, Erwin and the others finally reached Coban on November 7, 1888. In Coban the Dieseldorff family-gave a large reception to celebrate the arrival of the weary travelers. At the reunion Erwin became acutely aware of the economic orientation of the department, for coffee was the main topic of every conversation. He became ac­ quainted with a number of the German planters in the community, in­ cluding the German Vice-Consul in Coban the Baron Hans von Turkheim, the engineer Oskar von Nostitz, and the brothers August and Hermann Helmrich, who were related to his stepmother. His countrymen pressed him with invitations to visit their properties.-'-® Erwin Dieseldorff had come to the Alta Verapaz with no specific objective except the desire to advance his position. From the begin­ ning, however, the influence of his relatives and acquaintances in the l8 Letters from Erwin P. Dieseldorff to his mother, Letters # 1 through # 8, written between October 10, 1888, and November 10, 1888, DC. Dieseldorff in his letters always addressed his stepmother as "mother.” Hereinafter in references to correspondence and to most documents the name Erwin P. Dieseldorff will be abbreviated to EPD. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 43I department drew his interest to coffee and aroused his natural curi­ osity about the economic possibilities of its cultivation. During his first months in Guatemala he traveled widely through the Cobdfn area, visiting German-owned fincas, both large and small, and observing the methods used by planters. His journeys served to introduce him to the different aspects of coffee production. At various fincas he observed the cultivation and harvesting of coffee and gained at the same time an awareness of the intricate and exacting processes required to prepare the bean for market. For example, at the finca Chiacam, owned in partnership by W. A. Dieseldorff, Oskar von Nostitz, and Richard Sapper, and at 1 Sasis, owned by Hermann Helmrich and von Nostitz, he saw in operation pulperos, machines that removed the red outer skin of the coffee bean, the first step in preparing the coffee. His friends explained in detail the design of the apparatus and pointed out the importance of an adequate supply of water for the fermentation and washing of the pulped bean. 19 At August Helmrich1s Samac, where he remained for a period of two weeks, he encountered another type of machine, a retrilla. which completed the cleaning operation by removing the integuments adhering to the beans and left the coffee ready for market in its final form, as oro or green coffee. During his stay at Samac Erwin also had the opportunity to observe carefully a finca in opera­ tion and to see the problems encountered in the expansion of a partially developed property. 20 Dieseldorff was much impressed by ^ E P D to his mother, Letter # 10, November 29, 1888, and Letter // 11, December 5, 1888, DC. | PO EPD to his mother, Letter # 12, December 13, 1888, DC. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. | r 44] the industry and frugality of German planters, and perhaps even more so by the profits their efforts promised to produce. 21 His visits in the region around Cohan gave Dieseldorff the opportunity to learn something about relations between Germans and natives. He observed that his cousin August was liked by both Indians and ladinos, because he shook hands with everyone and spoke to all in a friendly manner. August had also learned to speak Spanish and Kekchi, the local Indian language, and Erwin was quick to see the advantage of this accomplishment and to imitate it. Facetiously he wrote to his mother, "When I can converse in Spanish, I am going to do as August does and come out with the most incredible flatteries— greeting old women as if they were young girls and complimenting them on their ratty gray hair and their grisly, unkept appearance." 22 An unusual opportunity to learn more about the Verapaz came to Dieseldorff when he volunteered to help Dr. Karl Sapper, a German cartographer and scientist, with the compilation of geographical in­ formation to make an accurate map of the department. Sapper accepted his offer, and together the two men traveled extensively in the area southwest sites. of Coban, explored caves, and dug around old Indian burial From the trips Dieseldorff developed a deep interest in the Ol EPD to his mother, Letter # 10, November 2 9 » 1888, and Letter # 11, December 5, 1888, DC. August Helmrich's diligence and thrift im­ pressed Dieseldorff, for except on Sundays, Helmrich spent the entire week on his finca working. Helmrich lived with only the barest neces­ sities. He considered a bed an extravagance and slept on a table in­ stead. Although his economical existence seemed rather extreme, Dieseldorff noted that hard work and frugality had a tangible result, for Helmrich was quickly developing Samac into a flourishing plantation. p p EPD to his mother, Letter # 8, November 10, 1888, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r archaeology and ethnology of the department. As a hy-product of the travels with Sapper, Erwin acquired a good knowledge of the topography and soil of the department. He also became doubly aware of the hin­ drance to economic growth posed by the primitive transportation facili­ ties existing throughout the department. August Dieseldorff put an end to Erwin’s wanderings in Decem­ ber, 1888, when on a trip to Guatemala City he spoke to Sophus Koch of the firm of Koch, Hagmann & Co. about a position for Erwin. Koch had attended school with August in Liibeck, and he had been employed by H. R. Dieseldorff during his first years in Guatemala. He gladly obliged August and offered Erwin a job at Miramar, one of the com­ pany's fincas situated on the Pacific coast near Coatepeque and Retalhuleu. The position was that of Volontair, an unpaid clerk or worker who was allowed to work for a short period of time without obligation in order to become acquainted with a business as quickly as possible. August believed that the offer would give Erwin a good opportunity to learn the details of coffee production and to make the necessary connections in the business. 23 Coffee production in the Alta Verapaz was entering a period of great expansion, but for the moment it was still in the nascent stage. In the Pacific highlands it was already a big business, which presented a better chance to learn about the cultivation and distribution of coffee. August and other friends, such as the Helmrichs and von Nostitz, believed that Erwin would profit from the experience and urged him to take Koch's offer. ^ E P D to his mother, Letter # 13, December 27, 1888, DC; 1 Deutschtum in der Alta Verapaz, p. 27* R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Young Erwin readily accepted the opportunity to work at Miramar. He recognized and appreciated the economic promise of the Alta Verapaz5 hut he found existing conditions there too circumscribed to suit him. 2k He was seriously considering going into the coffee business and believed that in the Pacific highlands he would be able to get ahead more quickly. Consequently, in January, 1889* he left Coban for the south coast. His itinerary led him first to Guatemala City, which he reached after a tiring four-day journey on horseback, made in company with Oskar von Nostitz. This segment of the journey vividly illustra­ ted to him the Verapaz’s almost complete isolation from the rest of the country. Coban lay only some 120 miles from the capital, but the mountainous terrain between and the primitive connecting mule track made communication extremely difficult and, at best, tenuous. From Guatemala City Dieseldorff traveled to San Jose by rail, from San Jose to Champerico by boat, and from thence to Miramar by mule. 25 Erwin Dieseldorff arrived at Miramar in the latter part of February at the end of the coffee harvest season. He had time to see the problems involved in picking the beans and preparing them for market. The finca had modern equipment, which included an electric coffee cleaning machine, and a finca railroad, which facilitated 26 the movement of the coffee from the groves to the beneficio, where Pli EPD to his mother, Letter # 13, December 27» 1888, DC. ^ E P D to his mother, Letter # 1 5 , January 6, l889> and Letter // 16, January 9-15> 1889> DC. A beneficio was a coffee processing plant on a finca where the preliminary steps in preparing the beans for market were carried out. | The beans were pulped by machine to remove the red outer skin, then | R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r it was cleaned. After the coffee was processed and bagged, the finca railroad solved the problem of transportation to the closest road or railroad for shipment to port. Erwin recognized that in the Alta Verapaz the absence of a railroad from Cob&n to a port on the Polochlc, with spurs into the interior, was a serious impediment to both local and outside transportation. After the end of the harvest Erwin was given charge of a group of Indian laborers, mozos, who were to cut down the old coffee trees on the finca. In this position he gained experience in the supervision of Indian workers. At the same time he was able for the first time to observe the process of severe pruning, as yet unneces­ sary among the younger plantings of the Verapaz, which was used to rejuvenate old trees that had ceased to yield a profitable crop. 27 After he had worked for several weeks at Miramar, he became dissatisfied with his position as Volontair. Hagmann, the resident partner of the finca, impressed by Dieseldorff’s interest and in­ telligence, had persc-.nally tried to teach him all that was involved in running a finca. Erwin, now confident that he had learned every­ thing he could, was eager to start on his own. He acknowledged that he had profited from the experience, but because the position was only temporary, he was convinced that he would be wasting his time fermented in water, washed thoroughly, and finally spread out on terraces to dry. ^ E P D to his mother, Letter it 20, Part II, February 9> 1889, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 4#i if he remained any longer. osition 28 He had considered for some time a prop­ to buy into a merchandise establishment in Guatemala City, but during his stay at Miramar he definitely decided to buy a coffee plantation, and he rejected the other offer. 29 Dieseldorff began to look around the Coatepeque-Retalhuleu area for fincas available for purchase, but he was unsure about the type of property he wanted. The opportunity to buy three fincas, El Trfinsito, XithalSn, and Samb6, from Herr Zollikofer, a long-term Swiss resident of the region who proposed to return with his family to Europe, brought the cause of his uncertainty into sharp focus. The plantations were fully developed and equipped, but the price Zollikofer asked was more than Dieseldorff could pay. 30 A few other inquiries convinced him that he would most likely encounter the same situation in all parts of the south coast, where the value and cost of any coffee property was high. In need of advice, he suddenly decided to return to Cobfin to consult with his friends in the Alta Verapaz about a finca purchase. 31 Pfl EPD to his mother, Letter # 21, February 21, 1889, and Letter # 28, May 9, I 889, DC. In an unguarded moment he wrote his mother, wDoch sehe ich, dass die Sache als Volontair ziemlich mistlich i s t In the May letter, however, he defended his decision to accept the position and said that a Volontair position was invaluable to a person who wanted to learn about a business quickly without a long period of apprenticeship or obligation. ^ E P D to his mother, Letter //17, January 17, 1889, DC; Letter: EPD, Cobfin, to Dr. H. Sohle, Hamburg, April 1, 1889, DC, Family Correspondence. ■^°EPD to his mother, Letter # 22, March 6, 1889, DC. ^ E P D to his mother, Letter # 23, March 27, 1889, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r August Dieseldorff and others in Cob&n advised Ervin to remain in the department. They pointed out that land prices in the Verapaz were far lower than in the Costa Cuca, and that in the Verapaz there were tracts of untitled public lands and many partially developed fincaB of great potential available for purchase. On the basis of his friends' advice Dieseldorff decided to settle permanently in the department and to buy a partly developed finca, situated near terrenos baldios. In reaching this decision he took into account the cora ..derations that fincas which were not completely developed were relatively inexpensive, and that public lands could be obtained from the government by grant or by purchase at low prices. A finca that had some land already in production not only provided an indication of the quality of coffee he could expect, but it would yield a small income while he cleared new areas and put them under cultivation. 32 In the months following his return to the Alta Verapaz Dieseldorff traveled from one end of the department to the other. He circled the Verapaz from Cobfin south and east through the Polochic River valley, north through the Senahti-Lanquin area, and west to Cubilguitz. On his Journeys he visited as many fincas as he could, examined carefully those that were for sale, and studied the terrain and climate of the uncleared areas. He paid particular attention to the facilities available to transport coffee from the finca to Cob£n or to Panz6s, and to the feasibility of opening new ^ E P D to his mother, Letter # 2k , April 1, 1889, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r •a*3 lines of communication. His purpose was "to become familiar with the lands that are still available." He explained I want to examine the fincas and acquaint myself with the advantages as well as the shortcomings of this department. I think I have gathered a great deal of practical informa­ tion. Without exaggeration I have seen more of this land and its fincas than any other finquero here, and you can be certain that I have acquired much useful knowledge. In June, 1889, Erwin Dieseldorff was to receive an inheritance of 1+5,000 Marks (about $ 11,000.)."^ By March of that year he realized that the money would not be sufficient for his purposes, for the pur­ chase of a finca required not only an Initial capital outlay but enough cash on hand to cover running expenses between harvests. Furthermore, he felt obligated to use part of his Inheritance to re­ pay the money he had borrowed from August Dieseldorff for the trip to Guatemala and for living costs in the country. Although life in Cobfin was cheap, expenses incurred in his travels through the depart­ ment had been high. He had had to buy two horses and a mule, as well as provide for the maintenance of the animals, hire guides, and purchase supplies for the trips. 36 ■^EPD to his mother,Letter # 25, April 17, April 27, 1889; Letter # 27, May U, 1889; Letter # 28, May 9, 1889; and Letter // 29, May 22, 1889, DC. ^**EPD to his mother,Letter # 26, April 27, 1889; Letter// 26 1889, DC. 35 So as to avoid confusion between United States and Guate­ malan currencies, the monetary symbol will be used in this dis­ sertation only to denote sums in dollars. Sums cited in Guatemalan pesos will have no preceeding symbol, but will be followed by the word "pesos." The symbol "Q" will preceed sums given in Guatemalan Quetzales, which came into use during the 1920’s, and which were on par with the dollar. ^ E P D to his mother, Letter // 23, March 27, 1889, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Convinced that he had ample knowledge of the coffee business, Dieseldorff was eager to embark on a large-scale agricultural enter­ prise. He envisioned starting out with enough capital to be In a position to pick up suitable properties that became available. For his purposes he believed he would need between 100,000 and 150,000 Marks (approximately $ 25,000. to $ 37,500.). He knew that his total inheritance would amount to more than 700,000 Marks, but for the present much of the money was unavailable to him. That being the case, he decided to seek an advance credit from his father's estate. He wrote a lengthy letter to the executor, Dr. H. Sohle, out­ lining his plans and asking for an advance of 100,000 Marks. Diesel­ dorff recounted his training under Hagmann at Miramar and the in­ vestigations of the department that he had undertaken. He pointed out the sound prospects for making money from coffee in the Alta Verapaz, as evidenced by the increasing German investments in the department. He was not satisfied with merely inheriting money, he argued, but wanted to use the money to make more. His father, he was certain, would have extended him the necessary capital. ance The inherit­ was invested in German government bonds that paid 1+ 1/2 % in­ terest. Erwin offered to pay 5 % to the estate and put up his claim to the remainder of the money due him as security. 37 Apparently Dr. Sohle remained unmoved by Dieseldorff's argu­ ments. His answer to young Erwin is lost. It is certain, however, that he did not extend the credit requested, because in the following ^Letter: EPD, Cob£n, to Dr. H. Sohle, Hamburg, April 1, 1889, DC, Family Correspondence; EPD to his mother, Letter # 2 k , April 1, 1889, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 52l months Dieseldorff, after scaling down his plans considerably, re­ ceived the backing he needed from another source. In July, 1889, Erwin obtained a loan of 17*000 pesos from Samuel Slattery, uncle H. R.'s brother-in-law and a prominent Verapaz finquero. For the amount Dieseldorff signed eight promissory notes for 1,900 pesos and one for 1,800 pesos, which bore an annual interest OO rate of 6 % and were to be paid off by August, 1893. At the same time Dieseldorff bought his first finca from Slattery for 5*000 pesos, which amount was included in the loan. The remaining 12,000 pesos were for operating expenses. The property, located about twenty kilometers (12.U miles) northeast of CobfJn, was called Chamcarel and had an extension of almost 3,600 a c r e s . ^ The finca already had some coffee trees in production, and the Indians resident on the land had cleared small areas to cul­ tivate corn and beans for their own consumption.Dieseldorff im­ mediately went to work starting coffee seedlings and planting new trees, but he retained possession of the finca for only a short period of time. A wave of land speculation had hit the department, and as luck would have it, he found the opportunity to sell the property at a large profit. Two merchants from Guatemala City, Eugenio Silva and Teodoro Durfin, made him a cash offer of 26,000 pesos for the land, "^Notebook kept by Erwin P. Dieseldorff, [notation at end], DC. "^Land title to Chamcarel (April U, 1889), and land sale document for Chamcarel (July 16, 1889)* Dieseldorff Safe, Secol Box, Coban, Guatemala. In all subsequent footnotes "Dieseldorff Safe" will be abbreviated to "DS." The Safe, which is in the central office at Santa Margarita, contains the land titles to the Dieseldorff prop­ erties and other types of documents. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 53I and in June, 1890, he sold it to them at this price. Ho Of the amount received for Chamcarel Dieseldorff used 11,000 pesos to buy a contiguous, partly developed property, Seacte, from his cousin W. A. Hi wanted to repay. Erwin still owed Slattery 15,000 pesos, which he Slattery, who had confidence in Dieseldorfffs abilities, advised him to keep the money and reinvest it while profits from land speculation were high. Erwin could pay off the loan at a later date and use the money to buy other properties or to develop ||2 Seacte. In 1891 Dieseldorff moved to Seacte, determined to expand it to peak productivity with his own hands. He remained there almost continuously until 189U. During this period he lived among the Indian laborers of the finca in almost the same manner as they did. His dwelling was a cold, damp hut constructed of thin poles placed vertically and tied together to form the walls, covered by a peaked fchatch roof, with an earthen floor. corn and beans. His food consisted chiefly of the Indian staples Living among the Indians, he became fluent in their language and learned to understand their psychology. Under Sapper's tutelage he had already become interested in Indian antiquities, and at Seacte he also developed a fascination, which proved to be lifelong, for the folklore, religion, customs, and language of the Indians. ^°Land sale document for Chamcarel (June lH, 1890), DS, Secol Box. ^ L a n d sale document for Seacte (June 7, 1890), DS, Secol Box. liP EPD to his mother, Letter # 66 , June 15, 1890, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Moreover, because of the lack of medical facilities, he began to collect data on the plants and herbs used by the Indians for medicinal purposes. Life at Seacte was difficult and lonely, for there was much work to do and there were few opportunities for contact with Europeans. Trips to Cob£n were rare. The finca lay only some twenty-five kilo­ meters (15*5 miles) from the departmental capital, but the connecting route was a narrow trail over steep, mountainous terrain where slick, sharp rocks made footing so treacherous and low spots were so deep in mud that only sturdy mules could make the journey safely. A trip to Coban, in good weather, required eight to ten hours of hard riding each way. During the long rainy season it was well nigh im- possible to reach the town. Under these circumstances, advice and assistance were diffi­ cult to obtain. Dieseldorff found that he had to be an agronomist, a foreman, an engineer, and a doctor to make his finca function. He had to supervise the planting and care of the coffee trees, the 43 Interview with dofia Matilde Dieseldorff de Quirin; Erwin P. Dieseldorff, "Las plantas medicinales del Departamento de Alta Verapaz," Anales de la Sociedad de Geografxa e Historia, XVI, 2 (December, 1939). p. 93. Dofia Matilde recounted to the author stories her father told her about his experiences at Seacte. In the article cited Dieseldorff speaks of the years he spent on the finca. There is a personal account of the hardships and loneliness felt by another German who worked for several years on an isolated finca of the Verapaz in: David Sapper, "Costumbres y creencias religiosas de los indios Queckchi," Anales de la Sociedad de Geografia e Historia, II, 2 (December 1925). p* 190. 44 ^ Even today the finca Secol-Seacte is accessible only by muleback. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r harvesting and processing of the crop, and the construction and assembling of equipment. For all these tasks he had acquired experience at Miramar and in the Verapaz, but this time he was working on his own. Responsibility for the success or failure of the project rested solely on his shoulders. In the end his work bore fruit, and he possessed an isolated but flourishing finca. The period Dieseldorff spent at Seacte was of great value to him. He acquired wide experience in developing and operating a finca, which served him well in later years when he had to supervise the management of a large complex of plantations. also had a sobering effect on him. The years at Seacte He emerged no less enthusiastic about the prospects of the coffee business, but he was more realistic in his assessment of the problems and work involved to realize success. His efforts taught him that real profits came from hard work, not from speculation in buying and selling land. His success with Seacte was in a sense a moral victory too, for it proved that Leckie and Sohle, who had lacked faith in him, were wro^g. Equally signifi­ cant, the years at Seacte*, the hardships he endured, the sacrifices he made, the associations he formed, gave him a love for the land and an attachment to its native inhabitants that he never lost. The purchase of Seacte, part of present-day Secol, marked the beginning of the formation of the Dieseldorff plantation complex. k5 In I15 Unless otherwise indicated, material for the following sections came from interviews with Dieseldorff's daughters, dona Matilde Diesel­ dorff de Quirin and Frau Gertrude Quinckhardt; with his first-cousins, Mrs. Marla Luisa Dieseldorff de Hempstead and Miss Rosita Dieseldorff; L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 56l the following decades, with funds from his inheritance and from other sources, Cieseldorff began to expand his holdings, acquiring such important properties as Santa Margarita for a central office in Cob£n, the Chichochoc retrilla outside of Coban, and Chajcar, a magnificent finca, producer of one of the finest Verapaz coffees. He could have continued to speculate in buying and selling land, but he did not. Instead he devoted most of his resources to the development of the properties he owned and to the solidification of his financial posi­ tion. Early in his career Dieseldorff put into action plans to achieve vertical integration within the coffee business so as to control oper­ ations from production to marketing. To assure himself of an adequate and reliable labor supply he purchased several properties that had a large number of resident Indians. In order to increase his coffee exports he not only expanded cultivation on his plantations, but he started buying unpulped coffee (cereza) and partially processed coffee fnergamino) from small producers, and he deliberately purchased properties so as to have bases of operation in areas where this type of business thrived. Often he set up retail shops on his plantations where he sold goods in exchange for coffee or labor commitments. He bought expensive machinery that enabled him to process his coffee under rigidly controlled quality standards and at the same time to prepare coffee commercially on a large scale. In an effort to make and with don Arturo Morales de la Cruz and don Manuel Burmester, who worked for Dieseldorff for many years. The author supplemented infor­ mation obtained from these sources with data from the pressed copy letterbooks and loose correspondence in the Dieseldorff Collection. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r the enterprise self-sufficient he also undertook to "breed the draft animals he needed for transport and to expand the cultivation of corn and beans for consumption on the fincas. Dieseldorff furthermore sought to diversify his business activities. To reduce his dependence on coffee production he attempted to cultivate for export other products, such as spices, rubber, and cotton. In the environs of Cob£n he established a textile mill to produce inexpensive cottons, which he sold at a shop he opened in the town. Eventually the shop grew to be a general merchandise store with a large and varied stock. His endeavors outside the coffee business, except for the store, met with little success, and after about 1920 he abandoned these ventures and concentrated on coffee and on the Coban store. As the number of Dieseldorf-f** t fincas grew, he found that he could not administer each individual property himself. He con­ sequently hired overseers to manage the plantations for him, but he continued to make tours of inspection whenever possible. The growth of his interests made it necessary to employ bookkeepers, clerks, mechanics, and business managers to handle the myriad details involved in the everyday operation. By about 1900 the size of the enterprise was such that Dieseldorff acted chiefly as administrator of the entire business, assigning duties, making decisions, and formulating plans. A competent staff also enabled Dieseldorff to absent himself more often from Guatemala, leaving the operation of the firm tempo­ rarily in the hands of his employees. He had traveled to Germany to see his family sometime in 1890 or 1891, but for the next few years L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r his work in Guatemala prevented his making another trip. After 1898 he began to go almost annually, leaving in April or May, after the end of the coffee harvest, and returning in the early fall in time to supervise personally details of the gathering, processing, and mar­ keting of the crop. His trips to Europe were not of a completely personal nature. While he was in Germany and in London, he made arrangements with brokerage firms for the short-term financing and marketing of the next coffee harvest. He also took this opportunity to recruit em­ ployees he needed for his business in the Verapaz, whom he contracted to work for him in Guatemala. On one of his visits to Germany Dieseldorff met Albertina Johanna (Hanna) Gressler, daughter of a wealthy Berlin banker. After paying court to her for about two years, he married her in Eisenach in September, 1 9 0 2 . ^ to live with him. After the honeymoon he brought Hanna to Coban The German community in the town welcomed the couple warmly and tried to make the young bride feel at home. None­ theless, Hanna was not able to adjust to life in Cob£n, and after a short while she returned to Berlin to live permanently. The reasons for her departure are unclear. She had a delicate constitution and already experienced the early symptoms of multiple sclerosis from which she suffered in later life. in Cobfin at best were primitive. Medical facilities Perhaps the cold, damp climate of the town, coupled with the absence of heating in the hou._s, aggravated k6 Marriage certificate for Erwin P. Dieseldorff acid Albertina Johanna Gressler (September 20, 1902), DC, Family Documents. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r her condition so that she could not keep up with the rigorous pace of outdoor life led by her husband. Undoubtedly she also missed her family and friends, as well as the amusements, cultural events, and living comforts of Germany. Hanna’s case, however, was not unusual, for many of the wives of wealthy German planters of the Alta Verapaz spent all or most of their time in Germany. After Hanna left Cob£n, she lived the remainder of her life in the Charlottenburg section of Berlin, until her death in 1933. 1*7 Her departure divided Dieseldorff's loyalties between Germany and Guatemala. He must surely have felt great disappointment that his wife could not share with him life in his adopted country. Her presence in Berlin meant that the annual trips to Europe now had additional motivation, and he felt compelled to spend more and more time in Germany with his family. Dieseldorff had three children. The eldest, named Matilde, born in Guatemala in 1900, was his legitimated daughter by an Indian consort. She grew up in Cob6n but made occasional trips to Europe with her father. Later she married Max Quirin, a German from Saarbriicken, who was her father’s business manager in Coban for many years. The other two, Hanna's children, both born in Berlin, were Gertrude (called Traute), born in 1908, and Wilhelm Erwin (Willi), born in 1913. Although they grew up and went to school in Germany, they visited CobSn several times after reaching adolescence. Gertrude married Hans Quinckhardt, also one of Dieseldorff's employees, ^ D e a t h certificate for Albertina Johanna Dieseldorff (May 9, 1933), DC, Family Documents. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r and the couple settled in Hamburg. Willi, several years after his father's death, married Dorothee Neal of Shreveport, Louisiana. Under Dieseldorff's administrative leadership and with the help of his employees, the business continued to prosper in the twentieth century. The firm's coffee exports, consigned chiefly to London or Hamburg brokers, increased particularly during the 1930's. As in any business, there were, of course, set-backs from time to time due to poor harvests or to fluctuations in world market prices. One of the most difficult crises Dieseldorff had to face was the confiscation of his entire business operation by the Guatemalan government during World War I. Caught in Germany by the outbreak of the war in Europe, Dieseldorff was unable to leave the country until 1919* For almost a year after his return to Guatemala he struggled to regain possession of his properties. Even when the business was once again in his hands, he faced still another struggle finding the credit backing he needed to re-establish himself at a time when the market price of coffee was plummeting. He was successful in his efforts, but the physical deprivations suffered during the war and the worries and tensions of the years 1919 and 1920 seriously affected his health. The political and economic instability of the Guatemalan government in the 1920's and the economic depression of the 1930's brought problems of much longer duration. The drop in the price of coffee, the scarcity of credit, the political changes in Germany, these and other circumstances made the depression a period of con­ stant crisis for Dieseldorff. Although he had numerous employees to L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r assist him, ultimately the major decisions were his concern. His business survived the crises, but as the years and the work began to take their toll, he began to suffer from a recurring stomach ailment. His illness made him realize that he could not continue at the head of the firm for many more years. In 1931 he decided to bring his son Willi to Guatemala to teach him the business, in anticipation of the day when the firm would be his. Willi, who was not quite eighteen, had lived up to that time a sheltered existence with his mother in Berlin, as the only male in a large household of doting female relatives. His father, an over-eager taskmaster perhaps, believed that the atmosphere was detrimental to the development of the youth’s interest in the business, and he determined to introduce Willi to the hardships, problems, and responsibilities of the operation by starting him at the bottom. Dieseldorff immediately sent his son to live on an isolated coffee plantation, as he himself had done many years before. After Willi had worked for several months on the fincas, Dieseldorff brought him to Coban to become fully acquainted with the office routine and with the coffee processing machinery at the Chichochoc retrilla. When the learning period was over, he sent Willi to London to complete his formal education. For the next few years Erwin Dieseldorff remained at the head of the business. Yet he came to depend more and more on his son-in- law Max Quirin to manage the operation in Cobin, and on his son Willi and his son-in-law Hans Quinckhardt to handle the marketing of the coffee in Europe. From London Willi began to seek new outlets and L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 621 better prices for Dieseldorff coffee in Great Britain and in the Low Countries. Quinckhardt assumed the same responsibility in the Central European countries. Dieseldorff's health continued to decline, and he felt in­ creasingly unable to carry the responsibility of the business. In 1937 he had his son Willi return to Coban, and in September he trans­ ferred ownership of the firm to him. He gave his son all his prop­ erties, except for two that he kept temporarily, and a finca that he gave his daughter Matilde. In return Willi guaranteed his father a pension for life.*4® During the last years of his life Dieseldorff gradually became incapacitated by an increasing stiffness and pain in the cervical spine. He consulted various doctors in Guatemala and Germany seeking a cure, and his condition was diagnosed as carcinoma of the prostate. In 1939 he received a radium implantation, but the treatment failed to relieve his symptoms. In 19^0 he traveled to the United States to undergo a complete physical examination at the Mayo Clinic. The doctors' diagnosis was that he was suffering from hypertrophic arthri­ tis of the cervical spine. They recommended him to continue with the physical therapy in which he was being instructed at the clinic. In case the pain persisted, they suggested his having a complete course Lq of X-ray therapy over the spine. ^ L e t t e r : EPD and W. E. Dieseldorff, Coban, to Fredk Moller Sohne, Bremen, September 23, 1937» Latterbook, "Moller Sohne," p. 508, DC. ^Letter: Dr. Jan H. Tillisch, Mayo Clinic, Rochester, Minn., to EPD, [Rochester, Minn. ?D, June 21, 19^0, DC, Family Correspondence. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 63I Whether or not Dieseldorff heeded the advice of the doctors is unknown. In the next few months his condition apparently worsened, and movement became more difficult and painful. Increasingly, the thought tormented him that he would be crippled and bedridden the rest of his life, as his wife had been. The idea was unbearable for he had been an active man all his life. In desperation he entered New York Hospital in Manhattan for treatment. There his depression intensified and became more than he could endure. On November 3, 19U0, he "fell or Jumped" out of a window of the hospital and died a few hours later. According to the coroner's report, death occurred a3 a result of a fracture of the neck of the right femur and shock. Three days later his body was cremated. 50 It had been Dieseldorff's wish to be buried in his adopted country, Guatemala, at his beloved Chajcar. After the cremation Willi Dieseldorff carried his father's remains to the Verapaz for interment. The site he chose for the grave had been one of his father's favorite places— the summit of a steep, craggy hill, where tall pines rose like spires between gigantic black boulders, and from where the panorama of Chajcar, its buildings and its orchards, could be observed. The summary of Dieseldorff's life illustrates some of the man's characteristics. He was ambitious, meticulous, intelligent, serious, cautious, observant, shrewd, and strong-willed. All these ^ D e a t h certificate for Erwin P. Dieseldorff (November 3, 19**0) DC, Family Documents. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 6*1 traito are reflected time and time again In hla actions. Physically, he was a man of medium height, with pale, authoritative blue eyes, blond (later white) hair, and a patrician Nordic face. He carried himself with great formal dignity, and his bearing was commanding. Both In manner and appearance he was the epitome of elegance, culture, and refinement. Studio photographs and casual snapshots captured these qualities with astounding accuracy. Many of Dieseldorff's personality traits were contradictory, for the man was complex. He treated the people beneath him, such as mozos, with kindness and consideration, unless, of course, they disobeyed orders. With his countrymen he was often impatient and irascible,and he obstinately persecuted, legally and personally, any person, ladino or German, whose actions he believed to be damaging to him or to his people. His headstrong attitude in several such cases alienated him from various members of the family and from a number of his fellow Germans. For similar reasons his relations with local government employees were sometimes strained, for, having ac­ quired a vast knowledge of Guatemalan laws as they pertained to him, he was always ready to protest infractions of the law and defend his rights before higher officials. Yet he was generally on familiar terms with the departmental governor and the municipal Judges. Although Dieseldorff maintained a separate household in Berlin, in Guatemala he lived in a simple and frugal manner. His living quarters were in the five-room area above the central office at Santa Margarita, and the furnishings were comfortable but by no means splendid. In comparison, other successful German planters, such as L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r Richard Sapper and H. R. Dleseldorff, purchased or built large, elegantly appointed mansions, as did wealthy Guatemalans. Dleseldorff entertained at home only once or twice a year, usually around Christ­ mas time and, if he was in the country, on his birthday. These affairs were lavish, with music and an abundance of food, imported wines, and fine liquors, and he Invited both Guatemalan and German members of society in the department. In his manner of living Dleseldorff was economical, but at the same time he was a liberal philanthropist, who readily contributed to public causeB. He made little display of his charity, but his magnanimity often received publicity. He helped to support the hospital in Cobifn with regular donations, 51 and on different occasions he offered money to improve the police force in Cobfin. 52 He gave 3,000 pesos to help the victims of the 191Y earthquake in Guatemala City,”*3 15,000 pesos to establish a school for children in the Alta Verapaz,^ 500 pesos to build a chapel at the CobSn cemetery,^ and varying amounts to assist in other matters . ^ In private, Dleseldorff El Polochic (Cobfin, AV, Guatemala), Aflo l, No. 36, January 1, 1895; El Norte (Cobfin, AV, Guatemala), Aflo VI, No. 277, November 28, 1915; ibid., Aflo VI, No. 282, January 1, 1916; ibid., A2o IX, No. U53, August 23, 1919. 52E1 Polochic, Aflo 1, No. 1*3, March 13, 1895- 53E1 Norte, Aflo VIII, No. 375, January 20, 1918. ^ Ibid., Aflo VIII, No. 389, May U, 1918. 55Ibid., Aflo XVI, No. 852, September 15, 1926. 56Ibid., Aflo VI, No. 267, September 5, 1915; Letter: Max Quirin for EPD, Cobfin, to the Jefe Politico, CobSn, October 6, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. 579, DC; L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 66 l was also generous and helped persons In need who appealed to him for aid, often without expecting to he repaid. When he waB in Cobfin, Dleseldorff lived in reclusion. He maintained himself aloof from the German community, hut he did not mingle with Guatemalans either, for his business and personal in­ terests occupied most of his time. Although he belonged to the Cob&n German Club, whose members met every afternoon to socialize, he seldom visited the place. He considered attendance, except on special occasions, a waste of time, and furthermore he strongly disapproved of his countrymen’s drinking habits at their daily gatherings. The extraordinary range of Dleseldorff's interests and the energy he devoted to activities not related to his business further illuminate the character of the man. Throughout his career he spent most of his free time studying Mayan archaeology and anthropology, the ethnology of the Indians in the Alta Verapaz, and the flora of the department. Many of his contemporaries regarded him as a bit of an eccentric for his relentless pursuit of his intellectual interests. Certainly, one can argue that he was a dilettante, for he was know­ ledgeable in many fields but not really an expert in any particular one. But although he was an amateur, he was nevertheless a serious and diligent researcher. Dieseldorff’s earliest interest was in archaeology. His dis­ covery of some Indian relics near Coban a few weeks after his arrival Letter: EPD, Cob£n, to the Ministro de Educacion Pdtblica, Guatemala, December 2 h , 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. 6^7, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 671 in Guatemala awakened his curiosity, 57 and his exploration of Indian eg burial sites with Dr. Karl Sapper further fired his enthusiasm. During the months of November and December, 1688, he visited a number of plantations in the department, ostensibly to observe coffee pro­ duction techniques, but also, he admitted, "To pursue my ethnological ..59 and archaeological studies." He dug for artifacts in several places, but his Journey to Miramar put a temporary halt to his activities. After settling permanently in the Alta Verapaz he resumed on a small scale excavations on his own plantations and in other parts of the department as well. In the 1890!b he discovered a number of interesting items, which he described in a series of papers that he submitted to the Berlin Anthropological Society and that appeared in the published proceedings of the organization.^0 Two of the artifacts that Dleseldorff uncovered were particularly noteworthy: the Chami vase, found northwest of Cobfin, in 1893,on the finca of Ebenezer Cary, ^ E P D to his mother, Letter # 9, November 22, 1888, DC. ^®EPD to his mother, Letter # 12, December 13, 1888, and Letter # lU, January 3, 1889, DC. ^ E P D to his mother, Letter # 9, November 22, 1888, DC. ^°Erwin P. Dleseldorff, "Alte bemalte Thongefasse von Guatemala," Verhandlungen der Berliner anthropologischen Gesellschaft (December l6, 1893), pp. 5^8—550; Erwin P. Dieseldorff, l*Ein bemaltes Thongefass mit figiirlichen Darstellungen aus einem Grabe von ChamS," Ibid. (December 15, I 89M , PP* 372-378; Erwin P. Dieseldorff, "Das Gefass von Chamfi," Ibid. (December 21, 1895), pp. 770-776; Erwin P. Dieseldorff, "Neue Ausgrabungen des Hrn. Dieseldorff in Chajcar, Guatemala," Ibid. (April 27, 1895), pp. 320-322; Erwin P. Dieseldorff, "Ein ThongefSss mit Darstellung einer vampyrkopfigen Gottheit," Ibid. (December 15, 189*0, pp. 575-576. Since Dieseldorff was in Guatemala during this time, the papers he sent to the Society were read for him by someone else, usually Dr. Paul Schellhas. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r and a clay vessel on which was painted a vampire-headed dlety. 6l Dleseldorff studied the two pieces for several years, during which time he compared the hieroglyphs and figures on the vases with those in the Dresden, Peresian, and Troanco-Cortesianus codices, and con­ sulted experts on Mayan antiquities. He reported his findings in two articles that were published, together with comments and emendations by the distinguished scholars Ernst FSrstemann and Eduard Seler, by the Bureau of American Ethnology. 62 Although both men disagreed with some of Dieseldorff's interpretations, they praised his efforts highly. Between 1900 and 1910 Dieseldorff gradually began to lose his enthusiasm for personal excavations, and after the latter date he did little digging. Part of the reason was the difficulties he encountered with property owners whose interest in discoveries he made on their land was monetary, rather than scientific. More im­ portant, however, Dieseldorff recognized that he was restricting him­ self by confining his research to the Alta Verapaz. His preliminary investigations had whetted his appetite for knowledge, and he there­ fore broadened the range of his activities to encompass all aspects of Mayan studies. He became particularly interested in Mayan art and religion and in its relation to the customs and religious practices These artifacts are described in the five articles cited above, and in: Erwin P. Dieseldorff, "Klassifizierung seiner archaologischen Funde im nordlichen Guatemala,” Zeitschrift fur Ethnologie (June, 1909), pp. 862-87^. Erwin P. Dieseldorff, Eduard Seler, and E. Forstemann, ”Two Vases from Chama,” Mexican and Central American Antiquities, Calendar Systems, and History. Edited by and translated under the supervision of Charles Pickering Bowditch (Washington, 190^), pp. 635-670. R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. r sH of the Indians of the Alta Verapaz. In order to obtain first-hand data he visited the important archaeological sites in Guatemala, and Cop&n in Honduras. 6*^ He also collected and studied the major works on Indian cultures of Central America and Mexico, written by Eduard Seler, Alfred P. Maudsley, Sylvanus G. Morley, Walter Lehmann, Alfred M. Tozzer, and other eminent scholars, and the publications of the Bureau of American Ethnology, the Carnegie Institution, the American Museum of Natural History, the Peabody Museum, and the Field Museum of Natural History. 6k At the same time he acquired a number of historical documents per­ taining to the Indians of the Verapaz and built up an exceptional col­ lection of manuscript texts of the traditional dance-dramas performed by the Kekchf Indians. his conclusions in After several years’ research, he set forth a three-volume work, entitled Kunst und Religion 6s der MavavSlker. which he published at his own expense, in several articles, 66 and in papers read before the Fourteenth International Letter: EPD, Coban, to the Presidente de la Sociedad de Geograffa e Historia, Guatemala, May 26, 1930, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 22-23, DC. 6k These books are found in the library of the Dieseldorff family in Cob&n, and many of the volumes are inscribed to Dieseldorff by the authors or editors. Erwin P. Dieseldorff, Kunst und Religion der Mayavolker, 3 v. (Berlin, 1926, 1931; Hamburg, 1933). 66 Erwin P. Dieseldorff (editor and translator), "A Kekchi Will of 1583,” The Maya Society Quarterly, I, 2 (March 1932), pp. 6568; Erwin P. Dieseldorff, Draft of article entitled "Old Titles of the Quecchl Indians" (September 15, 1903), DC; Erwin P. Dieseldorff, "El Tzultaca y el Mam, los dioses prominentes de la religion Maya," Anales de la Sociedad de Geografia e Historia, II, U (July, 1926), pp. 378386; Erwin P. Dieseldorff, "Wer waren die Tolteken?" Sonder-Abdruck aus der Bastian-Festschrift (Berlin, 1896), pp. ^15-^18. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 73| Congress of Americanists in Stuttgart and the Twenty-fourth in Ham. 67 hurg. In the late 1920's and in the 1930's Dieseldorff concentrated his efforts on analyzing the Mayan and Aztec calendar systems in order to devise a "perfect calendar." By studying Indian calendars in con­ nection with solar movements he began to work out his own calculations, and in this undertaking he frequently discussed his problems and his ideas with Dr. Hans Ludendorff, director of the Potsdam observatory, who was engaged in a similar project. 68 Some of Dieseldorff's theories and conclusions were unorthodox, but he diligently reported his findings in articles 69 and in papers he read before the Twenty-third International Congress of Americanists in New York, TO the Sociedad de gy Erwin P. Dieseldorff, "Extracto del libro antiguo gue [sic] conserva la cofradia de Carcha," Internationaler Amerikanisten-Kongress. Vierzehnte Tagung, Stuttgart, 190^ (Stuttgart, 1906), pp. 399-^02; International Congress of Americanists, Verhandlungen des XXIV Internationalen Amerikanisten-Kongres se s , Hamburg, 7. bis 13. September, 1930 (Hamburg, 193^), PP. Ixi-lxii. These pages give the names of persons who participated in the 2Uth Congress but whose papers do not appear in the published Proceedings. Dieseldorff, who read a paper entitled "Die Erklarung einiger Stelen, Altare und Temple von Copan," is among those listed. Because of the long delay in printing the volume, some of the participants took back their manuscripts, and consequently many of the papers were unavailable for publication. 68 Correspondence with Dr. Hans Ludendorff, DC, Mayan Studies Material. Erwin P. Dieseldorff, "Por que comenzaron los Mayas su calendario en 22 de septiembre del ano 3373 antes de Jesucristo," El Imparcial (Guatemala), ASo XVIII, No. 6001+, August 1, 1939; Erwin P. Dieseldorff, "ReligiSn y arte de los Mayas," Anales de la Sociedad de Geografia e Historia, V, 1 (September, 1928), pp. 66-86; V, 2 (December, 1928), pp. 18U-203; V, 3 (March, 1929), PP- 317-335; V, U (June, 1929), PP- U32-U53. ^ E r w i n P. Dieseldorff, "The Aztec Calendar Stone and its Significance," Proceedings of the Twenty-third International Congress of Americanists, Held at New York, September 17-22, 1928 (New York, L ^ O ) , pp. 211-222. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Geografia e Historia in Guatemala, y Estadlstica, 72 and elsewhere. 71 the Sociedad Mexicana de Geografia 73 During his lifetime Dieseldorff became widely known by experts in the field of Mayan studies through his published works, his active participation in professional organizations, and through personal con­ tacts as well. He was a prolific letter writer and corresponded with European and North American scholars, such as J. Eric Thompson, Frans Blom, William Gates, Thomas Gann, J. Alden Mason, Oliver Ricketson, Jr., George C. Vaillant, A. V. Kidder, Karl Sapper, Hans Ludendorff, 7^ Paul Schellhas, and others. In many of the letters there was a lively interchange of ideas, and in several instances the writer sought Dieseldorff's assistance and advice. Throughout his career Dieseldorff avidly collected Mayan arti­ facts. He acquired his first pieces by his excavations in the Cham& 71 Erwin P. Dieseldorff, "El calendario Maya de Quirigua," Anales de la Sociedad de Geografia e Historia, XII, 3 (March, 1936), pp. 272-277; Erwin P. Dieseldorff, ^La arqueologla de la Alta Verapaz y los problemas de los estudios Mayas," Anales de la Sociedad de Geografia e Historia, XIII, 2 (December, 1936), pp. 183-191; Erwin P. Dieseldorff,^'La causa por la cual los Mayas de Quirigua comenzaron su calendario en 22 de septiembre del aHo 3373 A . J . C . Anales de la Sociedad de Geografia e Historia, XVI, U (June, 19^0), PP* 271-279* 72 Erwin P. Dieseldorff, Los secretos contenidos en el tablero del templo de la Cruz de Palenque, la .joya mas valiosa de la prehistoria mundial, conservada en el Museo Nacional de Mexico, D.F. (Mexico, 1939)• This is a reprint of a speech given on September 19, 1939. 73 Erwin P. Dieseldorff, Explanatory Notes to the Lecture on the "Mayan Intercalary Systems" of the Calendar, to be. Given 3rd August 193** at 11 A.M. at University College (n.d., n.p."5T 7*+ Miscellaneous correspondence, DC, Mayan Studies Material. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 72 valley and at his finca Chajcar. In the 1890's. he donated some of these to the Museum fur Volkerkunde in Berlin; 75 others he kept. He continued to build up his collection in Coban with additional relics that he found and through purchases and gifts. Nothing pleased him more, his daughters relate, than to receive a fine specimen of pottery at Christmas or on his birthday. 76 Some of the antiquities he obtained were only fragments, but he also acquired many rare and exquisite examples of Mayan art. At the time of his death his collection num­ bered more than three thousand items, which Willi donated, in his father's memory, to the Museo Arqueologico Nacional in Guatemala. In the field of Mayan studies Dieseldorff was never more than a dedicated, knowledgeable amateur, but archaeology and anthropology were only an avocation for him. His contributions were minor ones, but scholars came to respect him as an intelligent, talented, and perceptive researcher, and to recognize the importance of his mono­ graphs and the significance of his findings in filling lacunae and uncovering details that broadened understanding of the Mayas. Seler in 1904 praised his work saying, "Mr Dieseldorff has rendered to science a conspicuous service by his careful and expert excavations and by the publication of the results....May Mr Dieseldorff be enabled to continue his investigations and may equally active and equally J. Antonio Villacorta C., "Archeologla Guatemalteca. XI. Pokomfi, Cak-Yu, ChamS, Chajcar, Panzamala, Chisec, Purulha, Chacujal, etc.," Anales de la Sociedad de Geografia £ Historia, VI, 1 (Septem­ ber, 1929), pp. 59, 62; Dieseldorff7 "Neue Ausgrabungen des Hrn. Diesel­ dorff in Chajcar," p. 322. 76 Interviews with Frau Gertrude Quinckhardt and doHa Matilde Dieseldorff de Quirin. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r successful workers come forward in other places to increase our knowledge.”"^ Later, during the 1930's, members of the University of Pennsylvania Museum staff who came to the Alta Verapaz on field trips consulted with him concerning their work. 78 Dieseldorff and his accomplishments were highly regarded by Guatemalans al3o, and in a posthumous encomium a fellow member of the Sociedad de Geografia e Historia affectionately referred to him as ”un viejo maya." 79 Concurrently with his Mayan studies Dieseldorff began investigating the medicinal plants of the Alta Verapaz. 80 He first became interested in this work during the period between 1890 and I 89I+ when he was living at Seacte. There were no doctors in the vicinity, and in the event of personal illness or sickness among the mozos he had to rely on his own knowledge and skill, and on the experience of Indian medicine men (curanderos). In order to learn the rudiments of medicine, he read practical textbooks on the subject, 77 Dieseldorff, Seler, and Forstemann, p. 66k. 78 Correspondence with J. Alden Mason and Mary Butler, DC, Mayan Studies Material. ^^David Vela, ’’Dieseldorff: un viejo maya,” Anales de la Sociedad de Geografia e Historia, XVII, 2 (June, 19^1), pp. 90-100. 80Unless otherwise stated material for the section on Diesel­ dorff' s interest in medicinal plants comes from the following sources: Erwin P. Dieseldorff, Las plantas medicinales del Departamento de Alta Verapaz (Guatemala, I 9U0 ); Erwin P. Dieseldorff, "Sida rhombifoliaT0 La Juventud Medica, Ano XX, No. 197 (October 15, 1919), pp. 153-156; Manuscript entitled "Statement made by Erwin P. Dieseldorff. . . March 22, 1935,” DC, Medicinal Plants Papers; "Experencia Docet,” [unpagi­ nated end section], DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 741 tut at the same time he began to observe the local curanderos, who used a variety of plants and herbs to cure diseases. Dieseldorff became well acquainted with one of the curanderos, Felix Cucul, who was a particularly knowledgeable and successful practitioner. The two men worked closely together, and Cucul taught Dieseldorff all he knew about the plants of the area and their cura­ tive properties. Dieseldorff began to conduct his own experiments, using the plants or their extracts on himself and discussing the results with others interested in the field, such as Hans von Tiirkheim, an amateur herbalist who had spent many years collecting and classifying the flora of the department. 8l To broaden his knowledge Diesel­ dorff became acquainted with medicine men from Yaxcabnal, Cham£, San Pedro Carcha, Chajcar, Secac, and Santa Cecilia, and in this manner he learned of other plants that grew at different altitudes. He began to organize his findings, describing the plants, noting the botanical names, and enumerating the medical uses of each, but other interests interrupted this work before he completed it. By accident Dieseldorff came across a plant whose healing powers, he believed, were so remarkable that he spent many years attempting to introduce it into medical circles and to make it avail­ able for the general public. The plant, whose botanical name was Sida rhombifolia, was a small type of weed of the Malvaceae family. It grew wild in all parts of Guatemala and was generally known as ^^Manuscript volume entitled "Hubarium des Herrn Baron Hans von Tuerckheim [sic] hierin sind enthalten alle Pflanzen die in Coban & Umgegend [sic] wachsen," DC, Medicinal Plants Papers; El Norte, Afio XVI, No. 845, July 25, 1926. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 751 escobilla. except in the Alta Verapaz, where the Kekchl Indians called it meshe. Curanderos in the department seldom used the mesbe, but Dieseldorff, in experimenting with it, discovered that it relieved the symptoms of a severe case of chronic bronchitis from which he had suffered for many years. He devised a way of making an extract of mesbe and continued using it on himself and on willing patients so as to learn more about its medicinal properties. When mesbe vapors were inhaled or the ex­ tract was taken orally, the drug was an excellent expectorant, he found, and appeared to alleviate cases of tuberculosis. Applied topically, it promoted the growth of new skin and clean healing in cases of lupus vulgaris, a tuberculous disease of the skin. Diesel­ dorff envisioned many other uses for mesbd\ but he realized that he lacked the medical training and the clinical facilities to conduct an exhaustive study. Convinced of the importance of his discovery, he determined to seek the assistance of physicians in Germany to make further tests. Hamburg, In 1909 he began to ship dried samples of the mesbe plant to 82 and in Berlin he purchased machinery to make an extract by the vacuum process. He then enlisted the aid of Dr. Adolf Spangen- berg, a family friend who was director of a tuberculosis sanatorium in Russelsheim, a town in Hesse situated near Mainz. Dieseldorff bought several inhalators and other equipment for the hospital and prepared to work closely with the doctor. o2 Bills of lading, Letterbook, "Ferrocarril Verapaz," No. U, pp. 197, 202, 205, 207, 323, 331, 337, 3 k 6 , DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Spangenberg began testing the drug on forty-nine selected patients. The group included persons with different types of tuber­ culous infections— of the skin, of the bones, of the stomach, and of the lungs— and in all three stages of the disease. He administered the drug orally, topically, by injection, and in vaporized form. The results were astonishing and more promising than Dieseldorfffs most optimistic expectations. After a few months' treatment even the most serious symptoms had virtually disappeared. Hemostasis occurred in each of the eighteen cases that had had pulmonary bleeding prior to medication, and all twenty-two cases of nocturnal sweating were stopped. Those persons suffering from tuberculous diseases of the skin, the bones, and the stomach were cured with surprising rapidity although among the patients were many old cases that had not responded to any previous methods of treatment. On August 30, 1912, Spangenberg published his observations in Oq the Reichs medizinal Anzeiger. Briefly thereafter he and Dieseldorff succeeded in finding physicians in Germany and elsewhere, who were willing to experiment with the mesbe. In the next two years a number of reports and editorials on the drug appeared in various medical journals, and thus for a short period of time Dieseldorff's discovery received some measure of publicity.^ Oo Dr. Adolf Spangenberg, "Mesbe, ein neues Heilmittel gegen Tuberkulose," Reichs medizinal Anzeiger, XXXVII, 18 (August 30, 1912), pp. 1-8. 8U Dr. chirurgischer No. 3 (1913), chirurgischer Butzengeiger, "Erfahrungen mit Mesbe in der Behandlung Tuberkulosen," Munchener medizinischen Wochenschrift, pp. 1-U; Dr. V. Chlumsky, *'Uber Mesbebehandlung bei Tuberkulose und bei infizierten Wunden," Zentralblatt L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Opinions about mesbe were divided. Some physicians were ve­ hemently opposed to it on the grounds that it was nothing more than a primitive home remedy, and that it could hardly have any salutary effect. There were, however, at least ten doctors, who publicly de­ clared that they had obtained consistently favorable results over an extended period of time. The latter group included respected special­ ists from Hamburg and Berlin and medical professors at the Universi­ ties of Kiel and Cracow. Dieseldorff continued his efforts to publiOr cize mesbe, and in 1913 or 191*+ he put the drug on the market. Meanwhile, prompted by the encouraging results, Dieseldorff in 1912 established a private tuberculosis sanatorium in Berlin, the Mesbe Institute, with Dr. Spangenberg as director. The Institute was situated opposite the Reichstag, at Wesendonck Palais, 21, In den Zelten. Whether or not Dieseldorff expected to make a profit from the venture is unknown. He supported the institution with his fur Chirurgie, No. 9 (February 28, 191*0, pp. 369-370; Dr. Neuber, '*Versuche mit Mesbe gegen Tuberkulose," Zentralblatt fur Chirurgie, No. 1, (January 1+, 1913), pp. 10-12. Dieseldorff also published privately, pamphlets containing testimonials of physicians and patients who had obtained favorable results using the drug: Briefliche Mitteilungen von Aerzten uber Mesbe bei Lungentuberkulose ([Berlin, 191** ?]); Briefliche Mitteil­ ungen von Patienten uber Mesbe bei Lungentuberkulose ([Berlin, 191** ?]). Or Erwin P. Dieseldorff, Heilung von Lungenleiden durch In­ halation von Mesbe (Berlin, 191*+); Erwin P. Dieseldorff, Mesbe bei chirur­ gischer Tuberkulose (Berlin, 191*0; Dr. Adolf Spangenberg, Mesbe bei Lungentuberkulose (Berlin, 191*+). Dieseldorff also had printed the following advertising sheets: Mesbe ([Berlin, 191*+ ?)); Dr. Adolf Spangenberg, Mesbe. Ueber das Tuberkulose-Heilmittel Mesbe ([Berlin 191*+ ?]). L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r id own funds and in the next two yearB spent more than $ 20,000. for staff and equipment. Among the ItemB purchased were sixteen inhala- tors that were especially constructed to his own specifications. sanatorium opened in 1913 on an The outpatient basis, but in the following eighteen months the staff was enlarged and medical facilities expanded to accomodate a few bed patients. The Mesbi Institute was Just beginning full-scale services when the First World War began and dealt a catastrophic blow to the hospital. The shortage of supplies and the demand for medical per­ sonnel in the military service brought operations at the sanatorium to a standstill. At the Bame time the war diverted medical interest from the mesbe. By the end of the conflict Dieseldorff found himself in dire economic circumstances. Germany was beaten and the monetary situation in the country was uncertain. In the Verapaz the national government had intervened his business, and he knew he would have to return to Guatemala to get it back. He was without income and without credit, and in 1919 when he left Germany he had no alternative but to close down the Mesbe Institute. The failure of the Mesbe Institute was not only a great finan­ cial loss for Dieseldorff, but a tremendous personal defeat as well. After years of being intimately involved ir. testing and propagandizing the drug and working to establish a hospital for its use, his plans had come to naught. For the next ten or twelve years he ceased working with medicinal plants and devoted his time to the business and to Mayan studies, but in private he continued to extol the virtues of the mesbe. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r During the early 1930's he decided to resume the classification and description of the medicinal plants of the Alta Verapaz, a project he had dropped during the mesbe interlude. With the assistance of Paul Wirsing, a friend and countryman who provided much valuable data and made botanical drawings of the plants, Dieseldorff completed his study about 1939* The following year the Guatemalan government pub­ lished his work. In 1939 and 19^0 Dieseldorff approached friends in the United States with the idea of rekindling interest in the mesb6, 86 but his poor state of health prevented him from pursuing the matter aggressively. After his death the mesb6 was everywhere forgotten, except perhaps in CobSn, where people still chuckle kindly when they recall the man's fanatic faith in the curative powers of the plant and his incessant proselytizing on its behalf. Had he been successful in promoting widespread use of the mesbe, Guatemala might perhaps have enjoyed a new export crop. But Dieseldorff's efforts were not so much in the in­ terest of the Guatemalan economy as they were for relief of suffering and disease. On September 6, 1937, Erwin Dieseldorff wrote in his notebook Money is worth something only when it is used for the reali­ zation of a dream. . . As of this day I have turned over to Willi all my worldly goods and chattels. These are the result of my diligence and industry and the frugality with which I have lived for almost fifty years.^7 ^^Letter; [EPD], New York City, to Leroy A. Lincoln, President, Metropolitan Life Insurance Co., New York City, July 2, 19^0, DC, Medicinal Plants Papers. ^"Experencia Docet,'* pp. [67-69], PC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. -I r These words, deceptively simple, accurately Bum up the traits that characterized Dleseldorff throughout his life. Through his own efforts he built up a plantation complex that exists and operates today In virtually the same manner as It did when he was Its head. Formation of the plantation complex was neither simple nor easy. took time and a great deal of work It but Dleseldorff,with talent and ingenuity, was able to take advantage of and develop the agricultural and commercial potential of the Alta Verapaz, and at the same time he was able to overcome or at least minimize many of the shortcomings that also existed there. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w ith o u t perm ission. J n r CHAPi'ER II THE EVOLUTION OF A PLANTATION COMPLEX: METHODS OF ACQUISITION At the time Erwin Dieseldorff transferred his business to his son in 1937» he owned no fever than fifteen fincas, whose total area amounted to nearly 100,000 acres.1. The extent of his holdings made him the largest individual landowner in the Alta Verapaz. 2 Looking at the Dieseldorff plantation complex of 1937, it is perhaps difficult to imagine that it did not always exist as such, but was, in reality, the result of almost fifty years' labor. to obscure its modest beginnings; The size of the enterprise tends its monolithic outward appearance conceals the fact that the whole was made up of many individual parts put together slowly over a long period of time. The amount of land Dieseldorff amassed set him apart from most other landholders in the Alta Verapaz, but there was nothing extraordinary about the manner in which he acquired his lands. methods he used to purchase land were conventional. The Any other group or individual— foreign, ladino, or Indian— with sufficient capital or ^-Statistical reports, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 159, 160, 166, 178, 202-a, 226, 553, DC; Land titles to Chajcar, Chiquixjf, Cubilguitz, Raxahfi, Raxpec, San Diego-Yalpemech, Santa Cecilia, Secac-Ulpfin, Santa Margarita, and Secol, DS, Chajcar Box, Chiquixjl Box, Cubilguitz Box, Raxahfi. Box, Raxpec Box, San DiegoYalpemech Box, Santa Cecilia-Secac Box, "Hijos" Box, and Secol Box. ^Deutschtum in der Alta Verapaz (Stuttgart. 1938), pp* ^8-1*9. The properties owned by Sapper & Co., Ltd., in the Alta Verapaz possibly encompassed a larger area than Dieseldorff's, but with this exception no other individual or group owned as much land as he. L 81 R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r credit could and did obtain property in the same way.^ For this reason an examination of Dieseldorff's methods of land acquisition is more than a study of an iadlated incident but has wider significance as a case study of the process by which numerous other Oerman- or Guatemalanowned plantation complexes came into existence in the department. On a broader scale this analysis may illuminate the general phenomenon of the origin of the latifundia system since the Alta Verapaz offers a unique opportunity to study and document this development from its inception. Aa late as the 1070's the landholdings of persons of European descent in the department were virtually nil.*' Indians, who formed the bulk of the population, still lived in tiny communitLea throughout the mountain valleys on land they had posseuned and culti­ vated since time immemorial, to which, however, few had ever obtained 5 title from the Guatemalan government. 3 The land titles of the Dieseldorff properties clearly sub­ stantiate this statement, for in almost every instance the deed in­ cludes original documents for all the transactions Involving the par­ ticular property from the time the government first granted title up to Dieseldorff's purchase. Since most of the properties changed hands several times before Dieseldorff bought them, the documents in the land titles are a revealing cross section of land tenure and present extensive documentation of the different ways Guatemalans, Indians, Germans, and other foreigners acquired and disposed of land in the department. h During the colonial period the Dominicans with royal sanction had controlled the area and maintained it closed to colonization. Even after Independence persons of European descent were slow to settle in the department. ^Dieseldorff did considerable research into the matter of primitive Indian land titles. In one of his articles he wrote that the Dominicans, "forseeing the difficulties which the possession of land brought with it, unless boundaries and positions were firmly established, . . . had these set down in writing and every owner or tribe was in this way guaranteed in his possession, which seems to have L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r The land laws of the 1870's had declared all untitled lands to be pub­ lic property, terrenos baldlos, and had established procedures to £ promote putting baldlos into private hands. The result of these laWB was a land rush in the department in which both speculators and seri­ ous investors participated. Between i860 and 1900 the government granted land titles to most of the highland areas in parcels that ranged from fifteen hundred to five thousand acres. Indians in some cases obtained title to their traditional lands, but the majority of the baldlos, many with Indian residents who remained on the land and came under the Jurisdiction of the legal owner, were granted to been respected until the overthrow of the Spanish rule in 1821. The Republic of Guatemala . . . considered all land, not properly titled by the Spanish Crown, as belonging to the nation, so that the old titles lost their validity. From that time onwards these titles became mere relics. . . . Before 1821 each generation had renewed the old title by having it rewritten, both in Quecchl and Spanish, as the damp climate causes the writing to become indistinct in a short time, but . . . [after 1821] this [was] no longer done." Erwin P. Dieseldorff, Draft of article entitled ”01d Titles of the Quecchi Indians” (September 15, 1903), p. 3, DC. ^The main law was in Libro I, Tftulo XIII, and Libro III, Titulo V of the Codigo fiscal. Guatemala, Codigo fiscal de la Repdblica de Guatemala, 1881 (Guatemala, [1881]), pp. 190-201, 370374. Hereinafter this work is cited as C6digo fiscal, 1881. Among the subsequent amendments and additions were Decree # 282 (August 31, 1882), which permitted persons to obtain grants without public auction; Decree # 352 (September 19, 1885), in which Barrillas declared that he would respect the grants made by Barrios; Decree # Ul6 (November 20, 1888), which limited to thirty caballerias (3,3^5 acres) the amount of land one person could obtain; Presidential resolution of November 16, 1889, which established a new schedule of honoraria for surveyors; Presidential order of February 8 , 1890, which set new rules for surveying; Presidential resolution of December 11, 1891, which reiterated the thirty caballeria limit to grants; and Decree # 1+83 (February 8 , 189*0, which reduced the grant limit to fifteen caballerias (l,673 acres). Leyes agrarias, pp. H U - 115* 120 , 125-126, 127-129; Leyes de Guatemala, Vol. X, pp. 237-238; ibid., Vol. XII, pp. 389-391. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r ladinos or to foreigners. By putting into private hands parcels of land that could he sold or comhined into larger units, and by allowing the recipients to assume control of natives living on the land, the terrenos baldfos laws opened the way for the development of the latifundia system in the Alta Verapaz. Dieseldorff purchased his properties in different ways. Large, partially developed or uncultivated pieces of land he bought from Guatemalans or foreigners, who in some cases had recently obtained the land as a baldfo. From Indians he acquired outright title or possession rights to tiny parcels of land. Often the properties he bought, large or small, were contiguous or closely situated, and these he-Joined administratively into a single unit. In only one instance did he buy a terreno baldlo from the government. In buying new properties Dieseldorff exhibited as much care and caution as he did in the selection of Chamcarel and Seacte. The price of a plantation was a primary consideration, because he believed that it was economically unsound to pay an inflated amount simply to secure a desirable piece of land. wary. Other buyers were less On one occasion he wryly commented on the Judgment of a fellow-German, saying Yesterday CAdrian3 Rosch bought out Sapper's share in Chamiquin. From what I hear he must have paid an extremely high price— 20,000 Marks or more. If all of us could sell our land at this rate, we would soon be millionaires. Don't you want to buy me out? I will make you a better deal. 7 •7 Letter: EPD, Coban, to F. von Quednow, El Salto, June 16, 1901, Letterbook, "Fincas," No. 1, pp. 95-96, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r ail Since Dieseldorff knew the department well, he was able to appraise the potential of properties, large or small, that appeared for sale and to recognize which ones were good bargains. The soundness of his decisions is evidenced by the fact that the fincas he bought developed under his administration into some of the finest in the Verapaz. That he retained almost every property he purchased up until the time he transferred the business to his son reflects, to some extent, his satisfaction with the choices he made. Dieseldorff purchased many of his larger properties under ordinary circumstances. From the Guatemalans Manuel Urrutia and his wife he bought, for example, three lots that he called Santa Cecilia O (1,360 acres) for 3,000 pesos in 1900, and from Jose M. Villacorta a lot called Jula (916 acres) for 1,1+00 pesos in 19ll+.^ Purchases from Germans included Seacte (1,660 acres) from W. A. Dieseldorff in I 89O for 11,000 p e s o s , ^ and Santa Margarita in Coban from Hermann Helmrich in I89I+ for 10,000 pesos .11 The price Dieseldorff paid for Santa Margarita was low, for his cousin W. A. had bought the property in 1880 for 9,500 pesos, and in the following years he and Helmrich 0 Land sale document for Chinasajquin, Secarranche, and ChicucBenlinim£ (January 23, 1900), DS, Santa Cecilia-Secac Box. ^Land sale document for Jul£ (April 13, 191 *0» OS, Chajcar Box. 10Land sale document for Seactl (June 7» 1890), DS,.Secol Box. 11Land sale document for Santa Margarita (August 13, 189!+), DS, "Hijos" Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r had extended cultivations, made improvements, purchased additional lots, and constructed new buildings. 12 In 1902 Dieseldorff reacquired Cham- carel for U,200 pesos from the Frenchman Adolphe Dellatorre, who had paid 5,000 pesos for it three years before. 13 These transactions gave Dieseldorff title not only to the land, but to all cultivations, buildings, and machinery on the property, as well as to the debts and contracts of the colonos. When buying land Dieseldorff shrewdly took advantage of such extraordinary circumstances as the death, extreme indebtedness, or bank­ ruptcy of an owner to get better bargains. In several instances he purchased properties of recently deceased landowners, whose heirs could not or did not want to keep the land. In this manner he acquired in 1893 his most valuable finca Chajcar (6,825 acres) for 12,500 pesos from Exequiel Coronado de Fernandez, widow of Matias Fernandez, who had died a few months earlier. l4 Likewise, shortly after the death of Pablo Ligorrfa in 1910, his eight children sold to Dieseldorff for 500 pesos a property called Rocxaanacach (3,350 acres) that they had inherited from their father.^ The elder Ligorria had purchased the five lots that made up the finca in 1901 and 1902 for a total of Land sale document for Santa Margarita (October 22, 1880) and notarized annotations on this document (October 29, 1883; June 2, 1888; April 25, 1889), DS, "Hijos" Box. Undoubtedly property values in Coban also rose between 1880 and 2 8 ^ . Land sale documents for Chamcarel (August 1902), DS, Secol Box. 2k , 1889; May 19, ■^Land sale document for Chajcar and Ulpan (September It, 1893), DS, Chajcar Box. ■^Land sale document for Rocxaanacach (June 23, 1910), DS, Cubiligiiitz Box. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r~ 37! 1,100 p e s o s . ^ In 190U Dieseldorff made another valuable acquisition when he bought for 3,000 pesos the Chichochoc retrilla from Augusta Helmrich, daughter of the deceased August Helmrich. 17 Several times Dieseldorff bought fincas from persons who were heavily in debt and needed cash to pay their creditors. In this way he obtained Secac (U,52l+ acres) in 1893 for 5,000 pesos from Eduardo Felice, an Italian who had mortgaged this and four other fincas to Kensett Champney for 35,000 pesos. 1ft From Victor Barrientos and his wife Dieseldorff in 1899 bought Raxpec for 3,500 pesos, which paid off a mortgage on the land held by Jose Maria Noriega. 19 In 1901 Manuel Vasquez Meza sold Dieseldorff for 6,000 pesos three lots (6,000 acres), two of which were mortgaged to Vital Prado for 10,000 20 pesos. Dieseldorff did not make any significant acquisitions where he himself held a mortgage on a property, but mortgage foreclosures by others gave him the opportunity to acquire a number of properties ^ L a n d sale documents for Rocxaanacach lots # 196 (October 30, 1901), # 297 and # 298 (January 15, 1902), # 10^2 (July 9, 1902), and # 1055 (July 2 b , 1902), DS, Cubilguitz Box. ^ L a n d sale document for Chichochoc (April 26, 190U), DS, "Hijos" Box. TO Land sale document for Secac (July 31, 1893), DS, Chajcar Box;Notarized annotation dated May 17, 1892, on land title to Secac (April 19, 1888), DS, Chajcar Box. 19 and his Land sale document for lots bought from Victor Barrientos wife (July 19» 1899)» DS, Raxpec Box. 20Land sale document for Sarruj Jucub, Cantoloc, and Sauchil (December 19, 1901), DS, Cubilguitz Box. The reason the mortgage on two of the lots was U ,000 pesos greater than the sale price was that Vasquez had a great deal of livestock on the property, which Dieseldorff did not buy with the land. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r i£l at favorable prices. In 1910 for & 500. ($ 2,500.) he bought from the London firm of Chalmers, Guthrie & Co. two adjacent fincas, Cubil­ guitz and Yaxcabnal (5,363 acres), which the company as one of the creditors of the bankrupt planter Hans von Tiirkheim had been adjudicated in public sale for 8,1+56.71 pesos. 21 The price Dieseldorff paid was moderate, because von Turkheim had paid 10,000 pesos for Cubilguitz and 5,000 pesos for Yaxcabnal. 22 From the Hamburg firm Riensch & Held, Dieseldorff in 1905 obtained for 6,000 pesos a small finca ad­ joining Santa Margarita called Chichafc (385 acres), on which the company had held a mortgage. 20,000 In 1902 Riensch & Held had lent more than pesos to the Guatemalans Jacinto Cordova and Manuel R. Perez, who put up Chichaic and other properties as security, but when the two failed to pay either the loan or the interest, the firm assumed ownerpo ship of the lands. Similarly, in 190k Dieseldorff paid the Hamburg company of J. Gruttel, Jr., 5,000 pesos for the finca Sacchicagua (3,1+93 acres). The previous owners, Stalling & Winter, had mortgaged 21 Land sale document for Cubilguitz and Yaxcabnal (December 22, 1910), DS, Cubilguitz Box. Chalmers, Guthrie & Co. had had a first mortgage of £ 5,000. on all of von Tiirkheim's properties. In 1905 they settled accounts for one third the amount that resulted from the liquidation of von Turkheim's holdings, which also had second and third mortgages on them. Certificate issued by the Director del 5° Registro de la Propiedad inmueble de los Departamentos del Norte (January 29, 1909), DS, Cubilguitz Box. 22 Land sale document for Cubilguitz (December 18, 1891), and land sale document for Yaxcabnal (May 21, 1892), DS, Cubilguitz Box. ^ T i t l e transfer document for Chichaic (October 17, 1905), and land sale document for Chichaxc (December 5, 1905), DS, "Hijos" Box. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r the land to Gruttel in 1901 for 50,000 Marks (more than $ 11,000.)> hut when the firm was dissolved in 1903 Stalling, to settle accounts, had transferred title to the land to Gruttel. 2k In addition to buying large, partly developed properties Diesel­ dorff also purchased land, usually in parcels of five to fifteen acres, which was owned or formerly owned by Indians. Sometimes the lots were adjacent or in proximity to land he already possessed, in which case he incorporated the lot into the existing plantation. In other instances he bought piecemeal scattered lots in areas where there were extensive Indian holdings. With such properties he formed fincas administered from a centrally located point, although the plantation in reality was made up of many tiny, noncontiguous parcels of land. Some of the lots Dieseldorff bought he acquired directly from the Indian owners. The purchase of land from Indians was common in the Alta Verapaz, and for this reason he more often had occasion to buy lots from someone who had originally obtained the land from the Indians. For Dieseldorff and for others in the Verapaz there were advantages as well as drawbacks to buying land from Indians. The most important consideration was the acquisition of land for coffee pro­ duction. In the semi-circle east of San Pedro Carcha, the best coffee producing area of the department, there was a heavy concentration of Indian landowners, and consequently buyers flocked there. The buyer ?ll Notarized annotation dated September 19, 1901, on land sale document for Sacchicagua (September 18, 1901), and land sale documents for Sacchicagua (January 28, 1903, and March 19> 190U), DS, Secol Box. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r iiil of Indian properties often faced a number of legal entanglements, however, for in many instances the boundaries of the lots were obscure, and sometimes the buyer acquired only dubious title to the land. Owner­ ship of many scattered lots also presented administrative problems. In buying land from Indians Dieseldorff, as well as others, used various methods, the legal aspects of which were so complicated that a background knowledge of Indian titles is necessary in order to understand the transactions. Under the terrenos bald£os law Indian communities could obtain title to the lands they occupied. 25 Some communities, whose leaders were educated enough to be aware of the law, took advantage of it and secured ownership to their traditional lands. Other groups obtained title under the Presidential Acuerdo (an executive resolution) of December 3, 1889, which ordered the Jefe Politico of the Alta Verapaz to adjudicate gratuitously to Indian landholders of the department title to the land they possessed. Sometimes when a community received title to its traditional lands the land was surveyed, boundaries were established for all the lots, and each landholder was given individual title to the lot he occupied. This kind of survey was difficult and expensive since it involved the measurement of several hundred separate lots. Consequently, an Indian group usually surveyed only the perimeter boundaries of the entire parcel and obtained a communal title to the land. In such cases each individual received 2^Codigo fiscal, l88l, p. 190. 2^Leyes agrarias, pp. 129-130. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r pro indiviso rights to the portion he claimed or occupied. 27 Upon the death of the recipient, title or pro indiviso rights passed to the heirs, hut the heirs through ignorance or lack of money, seldom re­ registered the land in their name. After two or three generations it became impossible to determine the actual owners of the land, for although only one or two persons might have actual possession of the land, there existed a multiplicity of lost heirs who could appear and Justly claim a portion of the land. Under these circumstances the party who occupied a lot had possession rights to the land but lacked a clear title. From time to time Dieseldorff bought lots from Indians who lived near his fincas. Around the perimeter of Chajcar he bought and integrated into the finca between 1398 and 1931 ten lots, which totaled 25*t acres. Pfi Concurrently, he acquired thirteen lots (2*+2 29 acres) around Santa Cecilia ' and nine lots (60 acres) around Santa 27 For example, the Indian community of Chacalte received title to its land in l 89*t, but the eighty-four co-owners did not receive in­ dividual. titles until 1897- Similarly, residents of Pocola received title to their land in 1877 but did not divide the land into individual parcels until 1896. Document for partition of Chacalte among the co­ owners (May 17, 1897), DS, Chajcar Box; Document for partition of Pocola among the co-owners (July 28, 1896), DS, Raxaha Box. 28 Land sale documents for lots registered as Finca 132, Folio 156, Libro 1, AV (August 29, 1911), Finca 319, Folio 132, Libro 2, AV— two lots (December 28, 1898; March 22, 1905), Finca 2**7, Folio 218, Libro 12, AV (November 21, 190*0, Finca 781, Folio 7, Libro 55, AV (July 21, 1931), Finca 71, Folio 95, Libro 1, AV— two lots (November 11, 1910; April 5, 1911), Finca UU8, Folio 285, Libro 2, AV (November 18, 1911), Finca 1631, Folio 189, Libro 6, AV (December 10, 191*0, and Finca IO 76-A, Folio 312, Libro H, AV (April 5, 1911)» DS, Chajcar Box. 29 Land sale documents for lots registered as Finca 180, Folio 2*tU, Libro 13, la Serie,Lote 75 (December 27, 1898), Finca 198, Folio 223, Libro 1, AV (March 28, 1901), Finca 335, Folio 150, Libro 2, AV L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Margarita. 30 *> In the same manner he increased the size of the noncon­ tiguous fincas. from Indians; 31 At Raxahd he purchased eight lots (75 acres) directly at Raxpec, two (22 acres); 32 and at Chiquixjl, eleven (95 acres).^ (August 10, 1901), Finca 507, Folio 9, Libro 3, AV (January 7, 1902), Finca I 63I+, Folio 196 , Lihro 6 , AV (May 20, 1903), Fincas 1635 & 1636, Folios 198 & 200, Libro 6 , AV (May 26 , 1903), Finca 2327, Folio 150, Libro 10, AV (February 16, 190U), Finca 1711, Folio ll+3, Libro 7, AV (October 19, 190U), Finca 101+0, Folio 229, Libro 1, AV (January 7, 1926), Fincas 391 & 392, Folios 190 & 191, Libro 52, AV (January 20, 1926), and Finca 81+, Folio 203, Libro 58 (March 10, 1937), OS, Santa CeciliaSecac Box. 30 Land sale documents for lots registered as Finca 211+1, Folio 136, Libro 9, AV (February 23, 190U), Finca 1977, Folio 192, Libro 8, AV (August 30, 1913), Finca 1017, Folio 80, Libro 25, AV (September 5, 1 9 l M , Finca 781, Folio 93, Libro 2l+, AV (August 18, 1915), Finca 2003, Folio 219, Libro 8, AV (December 5, 1916), Finca 996, Folio 96, Libro 17, AV (June 6, 1917), Finca 2067, Folio 1+1+, Libro 9, AV (July 28, 1917), Finca 201+5, Folio 22, Libro 9, AV (July 28, 1928), and Finca 39, Folio 96 , Libro 8, la Serie (March 1+, 1930), DS, "Hijos” Box. 31 Land sale documents for lots registered as Fincas 568 & 569, Folios 11+7 & lit8, Libro 1+0, AV (June 18, 1 9 l M , Finca 183, Folio 183, Libro 37, AV (November 25, 1931), Finca 107, Folio 213, Libro 38, AV (November 25, 1931), Finca 13, Folio 13, Libro 1+5, AV (July 31, 1933), Finca 80, Folio 80, Libro 37, AV (February 15,1931+), Finca 82, Folio 113, Libro 13, la Serie, ier Lote (December 21, 193U), andFinca 1079, Folio ll+2, Libro 25, AV (May 28, 1936), DS, RaxahS Box. 32 Land sale documents for lots registered as Finca 289, Folio 67, Libro 13, AV, ier Lote (February 10, 1905), and under the same num­ ber, 2° Lote (April 1, 1905), DS, Raxpec Box. 33 Land sale documents for lots registered as Finca 727, Folio 320, Libro 3, AV (December 9, 1932), Finca 536, Folio 12l+, Libro 3, AV (May 1+, 1933), Finca 1072, Folio 163, Libro 57, AV (July 28, 1933), Finca 657, Folio 2l+9, Libro 3, AV (October 15,193*+), Finca 728, Folio 321, Libro 3, AV (October 15, 193*+), Fincas 856 & 857, Folios 1+62 & 1+63, Libro 3, AV (November 30, 193*+), Finca 139, Folio 197, Libro 63, AV (February 27, 1935), Finca 253, Folio 65, Libro 1+3, AV (May 3, 1935), Finca 1050, Folio 113, Libro 25, AV (May 9, 1935), and Finca 211+9, Folio 52, Libro 9, AV (April ll+, 1936), DS, Chiquixji Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 93! The prices Dieseldorff paid were about the same as those paid by Guatemalans and other Germans, and varied according to the value of the land. As rule the cost per acre of an Indian lot averaged more than twice that of large properties. Of Dieseldorff's most valuable coffee producing fincas, Chajcar cost 1.80 pesos per acre; Santa Cecilia, 1.87 pesos; Chamcarel, 1.17 pesos; and Sacchicagua, 1.1+3 pesos. 3U In comparison, the average was 3.18 pesos per acre in Raxpec; 1+.05 pesos around Santa Cecilia; Q l+.l+l in Chiquixjl; 7*12 pesos around Chajcar; 35 and 8.07 pesos in Pocola.' All the transactions mentioned above, except two, were out­ right purchases. The Indian owners of the two other lots had borrowed money from Dieseldorff, giving a mortgage on their land as security. The land reverted to Dieseldorff when the owners defaulted. One of the properties, sixteen acres mortgaged for Q 50., Dieseldorff obtained for Q 5510,000 36 The other, .5I+ acres situated in Cob£n and mortaged for pesos (Q 166.67), the owner transferred to Dieseldorff for the amount owed. 37 In both cases the owners, prior to borrowing money from 3k Land titles to Chajcar, Santa Cecilia and Jula, and Chamcarel and Sacchicagua, DS, Chajcar Box, Santa Cecilia-Secac Box, Secol Box. 35 Land titles to lots bought from Indians for Raxpec, Santa Cecilia, Chiquixjl, Chajcar, Pocola of RaxahS, DS, Raxpec Box, Santa Cecilia-Secac Box, Chiquixjl Box, Chajcar Box, Raxah£ Box. 36 Land sale document for lot registered as Finca 81+, Fclio 203, Libro 58, AV (March 10, 1937)> DS, Santa Cecilia-Secac Box. 07 Mortgage agreement between Romualda Caal and EPD (May 19, 1928), DS, "Hijos" Box; Land sale document for lot registered as Finca 39j Folio 96, Libro 8, la Serie (December 30, 1887), DS, "Hijos” Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r og Dieseldorff, had several times mortgaged the property to other persons. Although Dieseldorff frequently lent small sums to Indian landowners, the money was usually an advance on a coffee crop. The amount of mort­ gaged land Dieseldorff obtained from Indians was infinitesimal. Through the purchase of rights to land held in indivision Dieseldorff acquired one of his most valuable properties Pocol£ (now part of Raxahfi). In 1898 Dieseldorff, together with his employee Manuel R. Perez, purchased rights to forty-seven lots (about 356 acres) in Pocolfi from Jose Marla City. Noriega, an agriculturalist from Guatemala Noriega had acquired these rights from one of the co-owners of Pocol£, Juan Cue, for 2,000 pesos in September, 1896. Cue, who was illiterate, had bought Piff Indiviso rights to the lots from his neighbors two years before for 1,257-67 pesos, but he was most likely a front used by Noriega to gain control of the land. In August, I 896, the co-owners of Pocol6 divided their communal holdings into individually titled lots, without taking into consideration Cue’s claim, however. After Dieseldorff acquired the indivision rights from Noriega, he instituted a suit to have the courts nullify the 1896 division and order a new partition. Perez ceded his rights to Dieseldorff and represented him in court. The case dragged on for several years, until in December, 1906, the courts ruled in favor of Dieseldorff. A few Og Document for division of Chitap among co-owners, lot adjudi­ cated to Marcelino Yat Caal (December 15, 1927), and notarized annota­ tions on this document (August 2, 1930; October 1, 1931; March 28, 1932), DS, Santa Cecilia-Secac Box; Document granting supplementary title to lot registered as Finca 39, Folio 96 , Libro 8 , la Serie (December 30, 1887), and notarized annotations on this document (September 19, 1896; February 27, 1899; May 13, 190U; July 17, 1908), DS, "Hijos" Box. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r months later Pocolfi was repartitioned, and he received title to the forty-Beven lots he claimed. He indemnified the Indian occupants at the rate of about one peso per cuerda (l cuerda - .108 acre), making additional payments for any permanent cultivations, such as coffee. 39 Although Dieseldorff obtained the rights to the Pocolfi lots from a Guatemalan, rather than directly from the Indian occupants, his decision to press his claim involved him in a legal dispute with the Indians, which resulted in his getting title to lands the Indians thought they owned, and furthermore made him a party to Noriega's apparent skuldug­ gery. Dieseldorff obtained a few other parcels of land by pur­ chasing possession or hereditary rights from Indian occupants. In Raxpec, for example, he acquired a lot measuring about one acre for 20 pesos, 1+0 in Santa Cecilia five lots that totaled about ninety acres between 1899 and 1903, acres, in 1911. 1+2 1+1 and in Chajcar two lots, eight Dieseldorff also purchased possession rights to land still held in indivision. Chiquixjl includes five lots of this type ■^Documents pertaining to Pocolfi (1876-1907), DS, Raxah£ Box. ^°Sale of possession rights to lot registered as Finca 161+, Folio 220, Libro 13, la Serie (April 22, 1901*), DS, Raxpec Box. 1+1 Sale of possession rights to lots registered as Finca 37, Folio 138, Libro 2l+, AV (January 3, 1899), Finca 33l+, Folio ll+9, Libro 2, AV (August 10, 1901), Finca 1+86, Folio 1+1+, Libro 3, AV (December 2, 1901), Finca 1713, Folio ll+8, Libro 7, AV (August 2l+, 1903), Finca 390, Folio 191, Libro 39, AV (October 3, 1931), DS, Santa CeciliaSecac Box. 1+2 Sale of possession rights to unregistered lots occupied by Sebastian Tiul (January 28, 1911), and Florencio Cac (April 17, 1911), DS, Chajcar Box. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 96l . 1*3 in the communal holdings of Chicansln . and ten In Secansin. 1*1* Some­ times he bought possession rights from Guatemalans or Germans, who had gotten the land from the Indian occupants. Raxpec includes Beven such 1*5 lots that Dieseldorff bought from Max Krings and two bought from Victor Barrientos,^ and in Chiquixjl there are twenty-five parcels 1*7 purchased from Krings, who had acquired six of them from a Guatemalan. The purchase of possession rights to a piece of land did not give Dieseldorff a clear title to the property. but could not register the lot in his name. He occupied the land There was always the possibility of legal disputes arising over the ownership of the lands, but he was in the advantageous position of having the financial re­ sources to carry the case through the courts or to settle the matter privately. Although Dieseldorff acquired some lots directly from Indiana, most of the Indian lands he owned he purchased in blocks from Germans Five documents pertaining to lots bought in Chicansln (May 2-29, 1928), DS, Chiquixjl Box. ^ T e n documents pertaining to lots bought in Secansin (April 20 - June 26, 1928), DS, Chiquixjl Box. 1*5 Agreement between Max Krings and EPD for sale of possession rights to seven unregistered lots (February 16, 1927), DS, Raxpec Box. k6 Agreement between Victor and Barbara Barrientos and EPD for sale of possession rights to two unregistered lots (July 19, 1899), DS, Raxpec Box. 1*7 'Agreement between Max Krings and EPD for sale of possession rights to twenty-five unregistered lots (March 4, 1925), DS, Chiquixjl Box. ],8 Agreement between Ellas Barrientos and Max Krings for sale of possession rights to six unregistered lots (October 6 , 191*+), DS, Chiquixjl Box. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 971 or Guatemalans. For example, of the tventy-seven registered lots that made up Raxpec, he acquired twelve (ll*7 acres) from Max Krings and thirteen (116 acres) from various Guatemalans.^ Of the sixty lots in Chiquixjl he purchased thirty (22U acres) from Krings, ten (30 acres) from Heinrich Deinhardt, and eight (1*5 acres) from Guate­ malans ,^0 and of the eighty in Raxahfi, twenty-five from Guatemalans,^ and the forty-seven Pocolfi lots from Noriega. In addition to buying small Indian lots and partially developed plantations, a third type of land acquisition common in the Alta Verapaz was the purchase of terrenos baldlos. On casual consider­ ation, a baldlo grant would appear to be the cheapest and easiest way to obtain land. 52 In actual practice, the acquisition of title to public lands often proved to be expensive, for the buyer had to pay 1*9 ^Documents for sale to EPD of twelve lots by Max Krings (February 15, 1927), four by Adelaida C. de Bail 6n (March 18, 1931), three by Rafaela Castro (July 27, 1937)» three by Victor and Barbara Barrientos (July 19, 1899)» and one each by E. G6nzalez (September 13, 190U), Padre Urrutia (July lU, 1917), and Adela Pacay (March 21, 1931*), DS, Raxpec Box. ^Documents for sale to EPD of thirty-one lots by Max Krings (March 5, 1925), ten by Heinrich Deinhardt (July 9, 1930), two each by Ignacio Valiente (July 20, 1932), A. Fernindez (September 25, 1931*), and Arnulfo Figueroa (February 13, and May 26 , 1931*), and one each by Policarpo del Valle (January 12, 1932) and Dorotea Lfipez (October 2l*, 1931*), DS, Chiquixjl Box. One of the properties (87O acres), bought from Krings, had never belonged to Indians. ^Documents for sale to EPD of twenty-three lots by the widow Balsells, and one each by Ismael Delgado (July 27, 19ll*)» and Melecio Rodriguez (August 9, 1931*), DS, Raxaha Box. 52 For a more detailed account of the process of acquiring a terreno baldlo see: Guillermo Mfiez Falc6n,“ German Contributions to the Economic Development of the Alta Vera Paz of Guatemala, 1865-1900 M (Unpublished M.A. Thesis, Tulane University, New Orleans, 1961), pp. l_ll*-15, 39-1*3. J R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r not only the purchase price but all costs involved In the denouncement and subsequent legal process, the survey, 53 and the evaluation of the 5I1 land. The legal process itself in many cases dragged on for many years from the time of denouncement until the government granted final title, especially if the interested person lacked influential connec­ tions in government circles. To complicate matters further, the denouncer of a baldlo had no assurance that he would be able to buy the land at the auction since there was always the possibility that someone might outbid him. By the mid-l890's public lands suitable for the cultivation of coffee had become so scarce that they sold at premium prices. These reasons undoubtedly deterred Dieseldorff from denouncing terrenos baldlos himself. He preferred to avoid the legal entanglements and uncertainties involved in openly seeking title to a baldlo. From his point of view it was more advantageous to buy land already in pri­ vate hands. The Presidential Acuerdo of November 16, 1889, established the following schedule of fees to be paid to a topographical engineer for surveying a terreno baldlo: 78 pesos for the first caballerla, 25 pesos each for the second through the fifth caballerla, 20 pesos each for the sixth through the twentieth caballerla, and 15 pesos each for the twenty-first through the fiftieth caballerla. Leyes agrarias, pp. 127-129. ^ Cocligo fiscal, l88l, p. 19^. An example of the real cost of obtaining a terreno baldlo grant is found in the case of Alberto Diaz Duran, who claimed that in the short period between November, 1899, and September, 1900, he spent more than 3,000 pesos for the survey of the baldlo Raxtaniquilfi and for the legal costs involved in seeking title. Petition of Alberto Diaz Duran to President Manuel Estrada Cabrera (September 7, 1900), copy in the land title to Raxtaniquil£ (September 28, 1900), DS, San Diego-Yalpemech Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r In November, 1890, Dieseldorff did buy at public auction a small baldlo of about 58O acres called Chiachal. move on his part. This was a deliberate Chiachal, which waB situated near Seact€ that he had bought five monthB earlier, came up for auction after the 123 Indian families living on the land had denounced it. The acquisition of the baldlo presented an unusual opportunity to secure the extra laborers he needed to expand coffee production at Seacte and some additional land for the cultivation of coffee and food staples. Several other persons also coveted the labor supply of Chiachal. The auction was held on November 5 , between noon and 2 P. M., as prescribed by law. 55 The base price for the property was 36 pesos per caballerla (32 centavos per acre; 1 caballerla - 111.51 acres), but bidding forced it up so quickly that the Indians had to drop out almost immediately. The main competitors were four Guatemalans, among them Juan Coronado, who in the closing minutes of the auction appeared to be the highest bidder. Dieseldorff had been absent during the early proceedings, but he apparently had an agent present to keep him informed of developments. Moments before the auction was to end, he made a sudden appearance and raised the price by 50 pesos with an offer of 300 pesos per caballerla (2.69 pesos an acre). No one was able to better his bid before the two hour time limit expired, and consequently the government officials adjudicated the land to Dieseldorff for 1,573.58 pesos. In April, 1891, after Dieseldorff had reimbursed the Indians for the expenses ^ Codigo fiscal, 1881, p. 371- L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r they had incurred, the President of the Republic granted him title to the land.'**’ Speculation in terrenos baldlos was common in the Alta Verepaz. Although Dieseldorff himself did not speculate in the buying and selling of baldlos, after 1900, vhen his economic position was established, he did purchase large and potentially valuable undeveloped properties as a calculated risk from speculators or through third parties. Other land buyers and speculators had set the pattern for acquiring public lands in the l880’s and Dieseldorff in his time followed suit. The original laws governing terrenos baldfos giants set no limit to the amount of land one person could obtain. This omission proved to be a windfall for speculators, many of them Guatemalan lawyers or topographical engineers, who some native citizens observed, "denounced large extensions of public lands, not to form fincas, but to get title to the baldlo and immediately sell it at a profit to the first person who offered to buy it. this in the Dieseldorff land documents. There is ample evidence of For example, Samuel Slattery received title to Chamcarel in April, 1889, for 1,15^*18 pesos, and pQ in July of the same year sold it to Erwin Dieseldorff for 5*000 pesos. In May, 1897* Manuel Galan received title to San Antonio for 96.61* pesos and the next month sold it to Ernst Altschul for 500 pesos. 59 ■***Land title to Chiachal (April 2, 1891), DS, Secol Box. ~*^E1 Porvenir (Cob£n, AV, Guatemala), An5 1, No. 31, August 25, 1889. Cg Land title to and land sale document for Chamcarel (April 1889; July 16, 1889), DS, Secol Box. ^ L a n d title to and land sale document for San Antonio (May 11 9 . 1897; June 22, 1897), DS, San Diego-Yalpemech Box. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. k, 1 r ion FabiSn Rodriguez received Sarruj Jucub in January, 1897» for 1,033.60 pesos, then within six months sold it for 2,000 pesos. In 1888, 1891» and I 89I* the government issued decrees aimed at ending the wholesale plunder of public lands by a few individuals by limiting first to thirty caballerlas (3»3^5 acres), and later to fifteen (1,673 acres), the maximum extension of land one person could receive, regardless of the number of grants involved.^1 A later law prohibited the sale, exchange, or mortgage of lands granted for a period of ten years after adjudication. 62 Persons desiring public lands easily evaded the laws by denouncing and obtaining title to baldlos in the name of a relative, a child, a trusted employee, or even a docile go mozo, and government officials apparently did not try br desire to enforce the law. 6k Dieseldorff1s actions were thus not extraordinary when he took advantage of the unscrupulousness of certain Guatemalans and the indulgence of government officials to acquire seventeen of the twenty-three lots that made up his largest finca, San DiegoYslpemech. Land title to and land sale document for Sarruj Jucub (January ll+, 1897; June 5 , 1897)» DS, Cubilgiiitz Box. ^ Leyes de Guatemala, Vol. X, pp. 237-238; ibid., Vol. XII, pp. 389-391; Leyes agrarias, pp. 125-126. 62 Leyes de Guatemala, Vol. XXXII, p. 10U. ^ E 1 Porvenir, AfSo 1, Ho. 31, August 25» 1889. 61+ For example see: Land title to and land sale document for San Isidro (December 19, 1916; July 21, 1920), DS, San Diego-Yalpemech Box; Land title to and land sale document for San Diego (March 2U, 1917; August 7, 1920), DS, San Diego-Yalpemech Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r San Diego-Yalpemech, a jungle lowland which covered an area of more than U5»000 acres, was situated in the northern limits of the Alta Verapaz and in the Peten along the Cancuen River. The land had virgin stands of mahogany and chicle and was suitable for the cultiva­ tion of tropical products. In 1903 Dieseldorff bought two tracts (2,800 acres) in the area from a German for 900 pesos in silver.^ At the time most of the land in the district was unclaimed and vir­ tually uninhabited because of its insalubrious climate and its inacces­ sibility. During the next few years the rich potential of the area drew speculators, who under different front names denounced and re­ ceived title to terrenos baldfos, which they offered for sale to Dieseldorff and to others. Dieseldorff was quick to seize the opportunity to expand his holdings. The most active speculator in the northern part of the Alta Verapaz was the Guatemalan engineer Ventura Nuila, who between 1905 and 1915 surveyed most of the baldxos denounced in the area. During this decade Nuila surveyed a number of tracts of fifteen caballerias each, which illiterate, non-Spanish speaking Indians from Chahal and Coban had individually denounced. Almost immediately after receipt of title, fourteen of the Indians sold their newly acquired properties to Erwin Dieseldorff. At the same time some sold their land to Nuila 4.1. or + to other persons. 6 6 ^ L a n d sale documents for Yalpemech and Xalaja (October 5, 1903), and for Candelaria (October 5, 1903), DS, San Diego-Yalpemech Box. ^ V e n t u r a Nuila, who still lives, has to this day extensive personal holdings in the Cancu6n River area, the Pet§n, as well as the Alta Verapaz, which he obtained in the manner described above. Inter­ view with don Arturo Morales de la Cruz. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r ioi Nuila handled arrangements for the sale of at least six of the properties. For the sum of 9,000 pesos he agreed to transfer ownership of the six lots to Dieseldorff upon receipt of final title by the Indians and government certification of their fiscal solvency. On September 9» 1908, Dieseldorff paid Nuila 5>000 pesos on account, and covered the remainder between September and January. 67 According to the sale documents, Dieseldorff paid 1,000 pesos for each lot to the titular owner, to whom the government had adjudicated the land in each case for about 135 pesos. 68 In all probability Nuila him­ self paid the 135 pesos to the government, and the 9,000 pesos that he received included the purchase price of 6,000 pesos for the six lots. Without doubt the Indians at most received only a token sum. It is not possible to determine exactly who the Indian denoun­ cers were. about them. Except for their names there is scarcely any information Some may have been mozos working for Nuila or Dieseldorff, In his hurry to survey baldfos, Nuila would give the lots a triangular shape so that he would have to measure only three sides although the law prescribed that the lots be laid out in quadrangles and the revising engineers in the Seccion de Tierras constantly called him down on this. Copies of survey minutes, maps, and revising engi­ neers' reports in the land titles to lots surveyed by Ventura Nuila, DS, San Diego-Yalpemech Box. 67 Receipt signed by Ventura Nuila (September 9> 1908) and addenda on the document signed by Nuila (September 22, 25> 1908; January 16, 1909), DS, San Diego-Yalpemech Box. 68 Land titles to baldios adjudicated to and land sale docu­ ments for land bought from Sebastian Ac (February 16 , 1908; September 2 k , 1908), NicolSs Caal (February 20, 1908; September 2 k , 1908), Marcos Choc (February 17, 1908; January 16, 1909 )> Antonio Maquin (February 2 k , 1908; September 2 k , 1908), Vicente Pop (February 13, 1908; September 2 k , 1908), and Tomfis X 6 (February 25, 1908; September 2 k , 1908), DS, San Diego-Yalpemech Box. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r io£l 69 who used them as dummies to gain control of land they wanted. There is evidence, it would seem, that at least a few of the Indian denouncers really wanted the land for themselves and their families hut were pressured into selling, because on March 9» 1907» six Indians petitioned the President of the Republic to adjudicate to them at the rate of twenty centavos per hectare (2. h j acres) the baldio each had denounced. They sought the President’s aid, they said, as a last resort, because after having made great sacrifices to raise money for the legal process, now just as they were about to receive title to their baldlos "there appeared a German [Dieseldorff or one of his agents?], who told them that if the land appeared for auction, he would get it" by outbidding them.70 As a result of the petition the President adjudicated the land to the Indians without public sale. all sold their land to Dieseldorff. The Indians, nevertheless, Nuila's fine hand appears in the proceedings since four of the petitioners were among the six whose land Nuila agreed to transfer to Dieseldorff. An examination of 69 According to don Arturo Morales de la Cruz, who worked for Dieseldorff and knows Nuila well, both men denounced baldios in the Cancuen area using the names of their mozos. 7°Petition to President Manuel Estrada Cabrera made by Nicolas Caal, Sebastian Ac, Tom£s Xo, Marcos Choc, Santiago Caal, and Domingo Coc (March 9» 1907)* copy in land title to baldio adjudicated to Marcos Choc (February 17, 1908), DS, San Diego-Yalpemech Box. The petitioners stated that they were residents of the CarchfL district, but in the denouncements they gave their place of residence as Chahal, a town in the northeast corner of the Alta Verapaz popu­ lated mainly by Carcha Indians who fled there to avoid having to work on coffee fincas or to escape local officials. El Democrata (Cob£n, AV, Guatemala), Affo 2, Nos. 6U and 68, February 5 j and March 4, 1888. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r the baldlo grants made to other Indian denouncers, vhose land Die­ seldorff bought, revefcls that in each case the President adjudicated the land directly after the denouncer had petitioned him to do so.?1 It is not idle conjecture to state that Nuila or Dieseldorff perhaps drew up and presented the petitions themselves to assure that the land would not appear for auction where bidding would raise the price considerably above the base set by the evaluators. In any case it is difficult to conceive why an illiterate Indian from the cold highlands would denounce nearly 1,700 acres of inhospitable tropical wilderness. Dieseldorff acquired three additional fifteen caballerla lots in San Diego-Yalpemech with the connivance of his employees. Three Indians had originally denounced the bald!os in December, 1906, 72 but the legal process dragged on for many years without the denouncers’ getting final title. In 1913 and 1915 the Indians sold, on paper, their denouncement rights to the Dieseldorff employees Javier N. Juarez, ^ L a n d titles to baldfos adjudicated to Santiago Caal (July 16, 1907)', Domingo Coc (June 22, 1907), Victor Olivia Macs (Novem­ ber 9, 1907), Francisco Pop (December 15, 1908), Pedro Pop (Decem­ ber l k t 1916), Sebastian Pop (April lH, 1908), Mariano Ten! (December 13, 1907), and J o s i Marfa Yat (June 2, 1911), DS, San Diego-Yalpemech Box. T2jose Marfa Yat had denounced another fifteen caballerfa baldlo the year before, to which he received title in June, 1911. He promptly sold the lot to Dieseldorff. Land title to baldfo adjudicated to and land sale document for land bought from Jose Marfa Yat (June 2, 1911; August 26, 1911), DS, San Diego-Yalpemech Box. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 73 to vhom the government Ambrosio Ventura, and Bernardo Hernandez,' finally adjudicated the land several years later. The grants had the specific restriction that the recipients could not sell or trans­ fer the land for ten years, yet the three sold the lots to their 7I1 employer before the period had expired.1 Between 1890 and 1937 Erwin Dieseldorff accumulated holdings that amounted to almost 100,000 acres of land in the Alta Verapaz. Although the tactics he used to obtain San Diego-Yalpemech, Chia­ chal, and Pocola might be open to criticism, transactions of this type were not unusual in the department, and in none of these in­ stances was Dieseldorff challenged legally by the local authorities. Dieseldorff acquired the preponderance of his holdings by purchase, however, and in a perfectly ordinary and legitimate manner. The ^^interestingly, Ambrosio Ventura and Bernardo Hernandez on May 2U, 1905, while in Dieseldorff's employ, both denounced fifteen caballerlas of terrenos baldlos adjacent to Dieseldorff*s property Yalpemech. On February 1, 1907, a few months before the government gave them title, they sold their denouncement rights to Indians, Ventura to Domingo Coc, and HernSndez to Santiago Caal, from whom Dieseldorff bought the land. Land titles to baldfos adjudicated to and land sale documents for land bought from Domingo Coc (June 22, 1907; July 16, 1907) and Santiago Caal (June 25, 1907; July 16, 1907), DS, San Diego-Yalpemech Box, T^Land titles to baldlos adjudicated to and land sale documents for land bought from Javier N. Juarez (December 19, 1916; July 21, 1920), Ambrosio Ventura (March 2 k , 1917; August 7» 1920), and Ber­ nardo HernSndez (October 5, 1922; February 8, 1923), DS, San DiegoYalpemech Box. In the case of the Juarez and Ventura lots the lapse of time between adjudication and sale is due to the disruption of Dieseldorff's business as a result of the government's intervention of his properties during World War I. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r io71 amount of land that Dieseldorff owned set him apart from most other landholders in the Alta Verapaz, but the methods he used to acquire It were the same as those used by ladlnos and by other Germans. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J n r CHAPTER III THE EVOLUTION OF A PLANTATION COMPLEX PLAN OF ACQUISITION The properties Dieseldorff amassed during his career he acquired by conventional methods used also by ladinos and other foreigners, but the planning he employed and his systematic approach to land acquisition distinctly differentiated him from most other landowners. Being an exacting man and a meticulous organizer, he formulated a comprehensive, practicable plan for his enterprise and carefully devised a strategy to implement it. Rather than buy land haphazardly and run the risk of exhausting his resources, he ex­ panded his business slowly and deliberately, according to his set plan. His first objective was to consolidate his financial posi­ tion on the basis of coffee production and export. Then as resources permitted he intended to expand his activities into cof­ fee buying and commercial processing of coffee. At the same time he recognized that he had to build a vertically integrated planta­ tion complex, because in order to operate profitably in the cof­ fee business, he needed a stable supply of laborers, land for the production of food staples, and farms for breeding animals for transport. Finally he hoped to diversify his enterprise by the cultivation and marketing of other agricultural products and by the establishment of an import and retail merchandising concern. There are several discernable patterns in Dieseldorff's system of land acquisition that document in greater detail his L 108 R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r MAP OP THE ALTA VERAPAZ AND DIESELDORFF’S PROPERTIES ° +» oHHQ£al\aJ«J nO'H wns os o & a o H CM ro -S’ tA VO f— oo O v O rj N y i @ j R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r plans and the methods he used to execute them. An examination of the situation of Dieseldorff's fincas shows that he concentrated most of his holdings in a few areaB, instead of having properties scattered all over the department as many did. The function of his fincas and the chronology in which he acquired them reveals his specific long-range designs and the calculated use he made of his resources. Dieseldorff's purchases fall roughly into three time periods: 1890 to 1898, 1899 to 1910, and 1911 to 1937. During the first phase, the major properties he purchased were Seacte (1890), Chiachal (1891), Chajcar (1893), Secac-Ulpin (1893), Santa Margarita (189M , Paijfi (1896 or 1897), and Panzal and El Salto (before 1899); during the second, Raxpec (1899), Santa Cecilia (1900), Cubilgflitz (1901 ff.), Las Amazonas (about 190l), Chamcarel and Sacchicagua of Secol (1902 and 190*0, San Diego-Yalpemech (1903 ff.), Chichochoc (190*0, Chichalc of Santa Margarita (1905), Pocola (1907), and Rio Frio (after 1901); during the third, Sachamach and Tzimajil (192*0, and RaxahS and Chiquixjl (l92*t ff.).* During each of the periods Diesel­ dorff also purchased numerous Indian lots. Most of Dieseldorff's holdings were situated in one of five areas: in the mountains east and northeast of San Pedro Carcha; ^There are no specific footnotes for the fincas Paija, El Salto, Rio Frio, Las Amazonas, and Sechalb, because the Dieseldorff family no longer owns them and the land titles were consequently unavailable. It is possible, however, to determine the ap­ proximate date of acquisition, the situation, and the function of each of these fincas from correspondence in the lettarrbooks and from the company ledgers, which are in the Dieseldorff Collection. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r in Cob&n and its environs; in the lowlands north of Cob&n; around o San Miguel Tucurd; and along the Cancudn River. He had, to be sure, properties elsewhere in the department, but these were generally small and served specific purposes. Property bought in four of these sections is still in the hands of the Dieseldorff family, whereas land bought near Tucurd and in other regions has been sold or has outlived its utility and ceased to function. Dieseldorff recognized that it was to his advantage to concentrate his holdings in a few circumscribed areas. Properties that were closely situated he could consolidate into a single admini :ative unit, which made them easier to manage and less expensive to oper­ ate. Concentration of holdings also simplified personal Inspection of properties since fincas in each group were within riding distance of each other. Moreover, the system enabled Dieseldorff to utilize his resources more economically. For example, roads that he opened to an area could serve more than one finca, and labor shortages were less of a problem, because additional hands were quickly avail­ able from nearby plantations. For these reasons he first established a foothold in each of the five areas by purchasing one lot that he used as a nucleus around which he acquired adjacent or nearby properties. The Dieseldorff holdings around San Pedro Carchd consisted of several large fincas. Immediately outside the town was Raxpec, and northeast a few kilometers off the road to Lanquln were Chiquixjl p San Pedro Carchd and San Miguel Turned are the formal names of the two towns, but in usage the names are shortened to Carchd and Tucurd. L R eproduced with perm ission o f the copyright owner. Further reproduction prohibited w ith o u t perm ission. J r 112I and Raxahi, and a little further north lay Secol. To the east, some eight miles from Carchi, were clustered together Chajcar, Santa Cecilia, 3ecac-Ulpin, and Sechalb, Seacti, Dieseldorff’s first permanent acquisition and the keystone of the Carchi complex, was the nucleus around vrhich he built up Secol. He acquired Seacti in IO90 and later added Chiachal, Cham­ carel, and Sacchicagua. Concurrently with the formation of Secol, Dieseldorff was amassing another group of fincas east of San Pedro Carchi, beginning with the purchase of the three contiguous prop­ erties Chajcar, Secac, and Ulpin in 1093, and a few years later adding Santa Cecilia, east of Chajcar, and Sechafb, situated across the Cahab6n River from Chajcar, Although the four plantations formed a continuous extension of land, their size and geographical character made it necessary to keep them administratively separate, unlike Secol, and to have an overseer for each. In much the same manner Die­ seldorff formed his other Carchi fincas, Raxpec, Raxahi, and Chi­ quixjl, which were made up largely of small Indian lots. The pattern of land acquisition seen in the Carchi fincas recurred in the other four areas where Dieseldorff had extensive holdings. In Cobin he acquired Santa Margarita in 189**, and to the main parcel he added Chichalc, Chichochoc, and several smaller pieces. Near the railhead of Pancajche he formed the El Salto- Paiji-Panzal complex during the late 1890's. Cubilgiiitz, in the low­ lands north of Cobin, Dieseldorff created from twelve adjacent lots bought between 1901 and 1931, and San Diego-Yalpemech from twentythree lots purchased between 1903 and 1923. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r if? During the critical first decade of operation Dieseldorff'o purchases were limited strictly to properties for the coffee business. Of primary importance, naturally, vas land for the cultivation of coffee. Although there were terrenos baldlos suitable for this purpose, he realized that the time and money required to develop such properties presented a considerable drawback to a beginner. Instead he bought Seacte and Chajcar, which were large and, at the time of purchase, already had coffee groves planted, the basic machinery for the preliminary processing of the beans, and a resi­ dent Indian labor force. With the available workers he undertook to increase production by clearing new areas, laying out additional orchards, and improving and expanding the processing facilities, Dieseldorff realized that for an efficient and profitable operation he also needed a large resident labor force. He had to have hands available for use at any time, because during certain periods of the year such as the harvest season, which lasted from November to March, a great many additional workers were required on the fincas. As a result of the expansion of coffee production,the number of mozos resident at Seacte and Chajcar was insufficient to harvest and prepare the crop without losses, Dieseldorff there­ fore invested in three properties, Chiachal, Secac, and Ulp&n, none of which was particularly suited for coffee cultivation, but which had large numbers of Indians living on them that he could use as needed at any of his other fincas. Between 1890 and 1900 Dieseldorff made four other signif­ icant purchases that enabled him to advance his position in the coffee business. The acquisition of Santa Margarita gave him a L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r centrally situated base from which to operate in Cobin. The existing buildings and equipment on the finoa provided office space, machinery and terraces to process and dry coffee, and a warehouse to store the beans prior to shipment for export. In 1898 Dieseldorff built onto the main building a second story, which he used from then on as his personal dwelling. 3 Dieseldorff, in partnership with his cousin W. R, Dieseldorff (K. H, Dieseldorff'a son), in 1896 or 1897 purchased Paiji, which was situated close to PancaJchS.1* The timing of the transaction illus­ trates Dieseldorff's sound .judgment, for the purchase coincided almost precisely with the opening of railroad, service between PancaJchS and the fluvial port of Panz6s, Paijfi produced coffee, but for Diesel­ dorff it served a more important purpose. Ownership of the finca put him in the distinct position of being able to take advantage of improved road conditions during short spells of dry weather to transport from Cobin to Paijfi. coffee prepared for export. At PaiJfL the coffee was stored safely at warehouses he constructed until time to take it to the railroad terminal office for shipment to Living­ ston and abroad. The ability to ship coffee in advance assured Dieseldorff of getting his coffee to Livingston in time to meet the ships that came to the port, so that the coffee would reach ^Letter: EPD, CCobfinD, to Arthur CDieseldorffl, CGermanyl, July 12, 1898, Letterbook, "Varias Cartas,” Ho. 1, pp. 66-67, DC. The family still uses the second story as its residence in Cobin. ^Leyes de Guatemala. Vol. XV, pp, 135-136; Financial account for PaijT, October, 1897, to June, 1898, Letterbook, "Varias Cartas,” No. 1, p. 32, DC. After W. Ft. Dieseldorff's death in 1900, Erwin Dieseldorff became the sole owner of Paija. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r its European consignees on the promised date. In time the shipment security that Dieseldorff enjoyed attracted smaller producers, who paid him to handle the transport and export of their coffee. In addition to shipping advantages, the pasture lands of PaiJ& provided forage for the mules, oxen, and pack horses that carried the coffee,'’ drivers. and the stop was a rest for both animals and Dieseldorff maintained fresh animals at the finca in case replacements were necessary. The uncleared lands of PaiJ& also contained trees that were cut and transported,on the return trip,to Coban and to other fincas, where wood was scarce, for use as fire­ wood in the coffee dryers and as timber for building materials. In the environs of Paiji Dieseldorff purchased El Salto and Panzal, which duplicated many of the functions of their neighbor. He grazed additional animals there, and cultivated some coffee as well. More importantly, the large number of colonos provided seasonal labor for his coffee plantations. The purchase of Raxpec in 1899 is a transition between the first and second phase of Dieseldorff's business, for it marks the beginning of the diversification of his activities. Hitherto his main concern had been with the production of coffee on his own fincas, but with Raxpec he entered into the business of coffee 5Letter: Paul 0. Mittelstadt, Interventor Interino, IICoban3, to CD. B. HodgsdonD, Intendente General del Gobierno, Guatemala, December 17, 1919, Letterbook, "Intendencia General del Gobierno,” p. 227, DC, World War I Intervention Papers, Hereinafter references to material from the World War I Intervention Papers will omit Mittelstadt's and Hodgsdon's titles, Intendencia General del Gobierno will be abbreviated to IGdG, and World War I Intervention Papers will be cited as WW I Int. Pap, L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r lwi buying to supplement production. In the region northeast of CarchfL many of the Indian landowners cultivated coffee and sold it in the town. Coffee buying did not require a large investment in land and labor, yet its profit potential was great. Cereza coffee could be purchased at low rates, and by expert processing the buyer could increase its market value tremendously. When Dieseldorff bought Raxpec it had several groves in pro­ duction and complete facilities for the preparation of coffee. More importantly, the geographical situation of Raxpec outside San Pedro Carchfi on the roads and trails leading into the town, was ideally suited for purchasing unworked coffee, which the Indians carried to the town for sale. The original owners of the finca had devoted their efforts chiefly to the expansion of coffee acreage, scarcely tapping the opportunity of purchasing coffee. Dieseldorff entered the business aggressively and soon was buying large amounts of unpulped coffee from Indians and other small producers and was preparing it at Raxpec. As the number of fincas he owned in the CarchS. area grew, Raxpec also developed considerable importance as a warehouse and stopping place for goods and animals traveling between the Coban office and the fincas. During the second phase of his career Dieseldorff attempted to expand his coffee business to something approaching monopoly status and to diversify his activities. He continued to buy partly developed fincas and small Indian lots in order to increase his own coffee production, and he greatly expanded his coffee buying business by purchasing land strategically situated for this purpose. By purchasing one of the four plants in Cob&n equipped to process coffee L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r commercially and by enlarging his transportation facilities, he en­ deavored to establish a degree of control over the Verapaz coffee industry from production to marketing. At the same time he also be­ gan to invest in enterprises unrelated to coffee, such as the cultiva­ tion of other tropical products, textile manufacture, and retail merehandising. Several of the properties Dieseldorff bought between 1900 and 1910 were for coffee production and buying. He added a considerable amount of acreage already under cultivation and even more room for further expansion by the acquisition of Santa Cecilia, Chamcarel, and Pocola. The latter property and the additional Raxpec lots provided new centers for coffee buying. A number of the lots were remotely situated, and ownership of these properties enabled Die­ seldorff to establish a monopoly over coffee buying in certain areas.^ In addition, at Chajuch, outside of Carchi, and at several other places situated near Indian communities, he opened small retail shops where he sold merchandise on credit in exchange for promises to sell him coffee. The acquisition of new properties brought a steady increase in the number of finca mozos under Dieseldorff's jurisdiction. The firm provided each colono with a plot of land on which to cultivate food staples and with additional rations of corn and beans. As the size of the resident labor force grew, land to allocate to the ^Document for sale of possession rights to lot registered as Finca l 6 h t Folio 220, Libro 13, la Serie (April 22, 190U), DS, Raxpec Box; Note in Dieseldorff's handwriting on unnotarized sale document for possession rights to a lot occupied' by Rosa Maas (December 12, 3 911), D3, Chiquixjl Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 11? Indians became scarce, and the amount of staples produced on the fin­ cas became inadequate to meet the demand. It was uneconomical to ex­ tend cultivations of corn and beans on the coffee plantations, where land was much more valuable for coffee production. Therefore, Die­ seldorff purchased Cantoloc, SarruJ Jucub, and Sacchicagua, which he reserved for use by his mozos. To make up for production shortages, Dieseldorff for several years imported corn and beans, or bought them locally, both costly methods of supply. The opportunity to purchase Cubilgflitz and Yaxcabnal pre­ sented a possible solution to his predicament. The two fincas con­ tained large expanses of level ground, which, unlike the lands in the mountain areas, were suitable for mechanized agriculture, and the hot climate and fertile soil easily produced two crops a year. After acquiring the fincas Dieseldorff undertook large-scale cultivation of the staples in an effort to provide food for the Indians on his other fincas. This was not the only function of Cubilguitz, however, for Dieseldorff also used it for several other purposes. The profits from coffee exports enabled Dieseldorff to ex­ tend his activities into other aspects of the coffee business. With the purchase of the Chichochoc retrilla outside of Cobin he acquired the intricate machinery needed to prepare and sort pergamino coffee to the final oro form in which it was exported. The Chichochoc retrilla not only freed him from the problem and expense of having to pay to have his coffee prepared for export, but because he could personally control the hulling and sorting of the beans according to his own standards, he was able to export a better prepared product of more uniform quality. As he expanded the facilities at Chichochoc and L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r his reputation for imposing rigid processing standards spread, many of the small coffee producers of the department paid him to work their coffee for them.? Often these finqueros also lacked adequate facil­ ities to ship the coffee to the railroad, and Dieseldorff did not miss this opportunity to enlarge his sources of revenue. He acquired vehicles and animals that allowed him to engage in the commercial transport of coffee from Cob&n to Pancajche. To carry the increasing amount of coffee he transparted for himself and for others, Dieseldorff required additional lands, animals, and equipment. kept in town. In Coban he bought Chichalc to pasture the animals he For much the same purpose he bought the finca Rio Frio, situated between Santa Cruz Verapaz and Tactic almost half-way from Coban to Paij&, to provide rest and forage for the animals on the long, difficult trek to the Polochic and to pasture replacement animals. Rio Frio produced no commercial crop, but most of its 1,100 acres contained virgin woods, which yielded firewood and timber needed on other fincas. In addition, the forty or fifty colonos living there fulfilled their contract commitments by working on fin­ cas that required extra laborers. Owing to the poor condition of the roads and trails and the heavy weight of the loads, the incidence of mortality among the animals was high. Dieseldorff realized that he could prevent costly losses by providing adequate rest facilities and proper water and alimentation. With this in mind, since the trip to Paij£ took seven T a finquero could export pergamino coffee, but the world market price for this form was far lower than for the completely I prepared oro coffee. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. ^ r 12 ? or more days each way, he also purchased other smaller properties along the road where the men and animals could stop to spend the night. Along the roads and mule tracks leading from Cobin and Car- chi to the fincas he acquired similar stopping stations. The growing enterprise further necessitated a large fleet of vehicles and many oxen and mules to transport coffee and supplies. If the number of carts and animals was inadequate, Dieseldorff had no alternative but to employ human carriers, a practice that not only deprived the fincas of much-needed hands, but one that he re­ garded with distaste. Ox-carts were used to carry loads to Paija and to the fincas served by roads, such as Chajcar and Santa Cecilia, but when there was a shortage of vehicles, Dieseldorff used mules instead. Mules and pack horses served the fincas that carts could not reach, such as Secol, Cubilgditz, Raxaht, and Chiquixjl. In the lt>96's Die­ seldorff had begun breeding draft animals at Secac-Ulpan, but the broken, rather sterile terrain of the finca and its inaccessibility made large-scale operations difficult. Consequently, when he had the opportunity to purchase a six thousand acre cattle ranch in 3901, he quickly accepted the offer. The property, which he later consolidated with Cubilgiiitz, pastured several hundred head of cattle, but Dieseldorff did not buy them. Instead he began breeding, from strains of his own choice, mules and oxen for draft animals, as well as cattle to provide meat, leather, and organic fertilizer for the fincas. The construction of ox-carts was another problem that Die­ seldorff solved by utilizing his fincas. The carts made in Coban were often of such shoddy quality that they did not survive more than a L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r xB few trips* In order to make vehicles for transport that fit his own requirements, he imported wheels and axles, hut for the remainder he employed material from his fincas. From Hlo Frio and Paija he ob­ tained wood for the superstructure. At Chichochoc, where the carts were assembled, he improvised equipment for steaming the wood to bend it to form the arches over the platform. Although coffee always remained the backbone of Dieseldorff's business, after the turn of the century he embarked on new enter­ prises not connected with coffee. He had observed that the fertile lands of the Alta Verapaz were capable of producing many other products suitable for export, and that the hot lowlands of the department had great economic potential, which had scarcely been tapped. In buying tropical lands he saw the opportunity to diversify his activities, not merely to reduce his dependence on coffee,but to exploit and develop more fully the economic possibilities of the department, His efforts in this field were not all successful, however. The first tropical finca Dieseldorff bought was Las Amazonas, a huge property situated below the Polochic River in the southeast corner of the Alta Verapaz. The triangular-shaped plantation ex­ tended from Teleman southwest to a point about ten miles from La Tinta. Dieseldorff began his operations at Las Amazonas with the extraction of wild rubber while he built dwellings for the labor force he planned to establish there. He also cleared land and at­ tempted to cultivate sugar cane, cacao, and rubber. The latter two crops were for export, but with machinery he introduced he processed the cane syrup into panela (clayed brown sugar) for use cn his fincas and for sale in Coban and Carcha. Soon afterwards he planted cotton, L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r which he transported to Cohan to weave into Indian fabrics. Dieseldorff next began to buy property situated along the Cancuen River. Although the land had virgin stands of mahogany, other hardwoods, and chicle, the poor state of transportation facil­ ities prevented his exploiting these resources. He recognized, however, that mercantile activities were feasible, because there were numerous woodcutting firms, with hundreds of workmen, active in the Peten. Dieseldorff therefore established a store at San Diego-Yalpemech, where he sold food and supplies to the logging companies and to itinerant operators. With Indian laborers that he resettled at the finca he began to cultivate corn and beans for sale at the store. For about two decades the store produced a steady revenue. His long- range objective for San Diego-Yalpemech was to lay out plantations of rubber, cacao, and spices, but this plan was never realized. The acquisition of San Diego-Yalpemech was to a great extent a speculative venture. The finca encompassed a vast Jungle wilderness of great potential, but exploitation of the area was impossible until at least rudimentary transportation facilities were available to carry the products of the land to market. As Dieseldorff grew older, he became more and more disillusioned about the prospects of ever being able to develop the region. In 1920, when he was badly in Q need of cash, he made an attempt to sell the plantation, he received no acceptable offers, he kept the land. but since In subsequent years, as logging operations declined in the Peten, the finca be­ came less important in his enterprise. ^Letter: CEPD, Coban3, to W. R, Grace & Co., New Orleans, ^September id, 1920, DC, Financial Correspondence. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Dieseldorff continued to diversify his activities by engaging in spice production at CubilgSitz. In the l880's and l890's Germans had cultivated spices with moderate success on fincas north of Cob&n. Dieseldorff used the existing plantings of cinnamon and pimento at Cubilguitz 9 as a base for expansion* He also attempted to culti­ vate cardamon, nutmeg, vanilla, and black pepper, but spice production always remained a small-scale operation. During the second phase of his career Dieseldorff began to use Chichochoc and Santa Margarita for enterprises completely separate from agriculture. At Chichochoc he installed simple machinery to weave inexpensive yard goods for Indians, using,he hoped,cotton from Las Amazonas. The same water turbine that operated the retrilla powered the textile machines. Dieseldorff's purpose in this under­ taking was to utilize all year around the water power available at Chichochoc, rather than to have the equipment idle between coffee harvests. At Santa Margarita he opened a small shop where he sold fabrics from Chichochoc, as well as other small articles that he imported. The first few years he carried stock mainly for Indians, but as the volume of business grew, he increased the variety of articles. During the 1920's he transferred the store to a building off the central square.10 There the amount of business and merchandise stocked underwent further expansion, and by the 1*930's the establishment ^Guillermo Nfinez Falcon,“German Contributions to the Economic Development of the Alta Vera Paz of Guatemala, 1865-1900"(Unpublished M. A, Thesis, Tulane University, New Orleans, 19&1), pp. 62-63. ^ E l Norte (CobSn, AV, Guatemala), ASo XIV, No. 685, September jJ, 192U. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r 124I was the largest general store in the department.11 By 1910 Dieseldorff's plantation complex was virtually com­ plete. While operations from then on followed the pattern set in previous years, the business did not stagnate. Rather it grew tremendously, as did Dieseldorff's landholdings. He bought several additional properties for Cubilgiiitz and San Diego-Yalpemech and the fincas of Raxahfi and Chiquixjl. In addition, so as to extend the sphere of his activities in the coffee buying business and to consoli­ date his control over certain areas, he eliminated competition by purchasing land owned and businesses operated by rival buyers. 12 At Chichochoc, where he had had the problem of an acute shortage of female labor, he relieved the situation by purchasing Sachamach and Tzimajil, which were situated nearby and had a large number of Indian families.living on the land. J Nevertheless, in all the land purchases Dieseldorff made between 1910 and 1937, his primary concern was to expand activities he had already begun rather than to undertake new enterprises. The examination of the evolution of Dieseldorff’s plantation complex shows some of the basic reasons for his success and to some ^ I b i d . , AHo XXV, Nos. 1269 and 1272, January 12, and February 2, 1935. 12 Notarized agreement between EPD and Max Krings for the sale of Krings' coffee buying business at Chiquixjl (March h t 1925), DS, "HiJos” Box; Notarized agreement between EPD and Max Krings for the sale of Krings' coffee buying business at Raxpec (February 17, 1927), DS, Raxpec Box. ^ L a n d sale document for Sachamach and Simajil CTzimaJill |^(May 28, 192U), DS, "Hijos" Box. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r 12 ?l degree explains the inability of others to develop similar operations even on a smaller scale. The fact that Dieseldorff commanded greater financial resources than most Guatemalans or Germans in the Alta Verapaz and thus was able to acquire more extensive holdings than others is of less importance than his approach to investment in prop­ erty. Many finqueros, large and small, shortsightedly used their capital only to buy as much coffee producing land as possible. Die­ seldorff possessed the foresight to recognize that a business based on production or buying alone was restricted by dependence on many outside factors— Indian landholders and other finqueros for seasonal labor, commercial carriers for transportation, merchants for food staples and supplies, and the Coban retrillas for preparation of the coffee beans. From the very beginning Dieseldorff set a goal from which he did not deviate: to make his coffee business a profitable, selfsufficient, economically operating unit. In order to achieve this objective he needed to have properties whose functions were essential for efficient operation of the coffee business. With this in mind, he invested in land that did not produce coffee or yield tangible revenues, but that did enable him to control his coffee business from production to marketing. In effect, he worked towards and achieved a vertical merger in the plantation complex. To tighten administra­ tion and coordinate better the functions of the fincas, Dieseldorff went a step further and concentrated most of his holdings in a few areas. Subsidiary to the coffee business Dieseldorff set forth to diversify his enterprise by the cultivation and extraction of dther L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 1261 tropical products* preconceived design. This undertaking too he timed according to a Land investments in the lowlands of the Alta Verapaz were risky ventures, and in the 1890's several of Dieseldorff's countrymen, who had attempted to start plantations there, had gone bankrupt. Others overextended themselves and taxed their resources by acquiring too many properties of different types and starting several unrelated undertakings at one time. Dieseldorff waited until his coffee business was well established before he began to invest in tropical properties. At the same time he regarded coffee as his economic mainstay, and he did not neglect it. Rather he continued to increase the number of coffee producing properties he owned. More­ over, he was astute enough to drop operations on tropical plantations that were losing money. As Dieseldorff built up his plantation complex piece by piece, he revealed himself as a consummate planner, who had a thorough under­ standing of the business in which he was engaged. The result of his work was a fully integrated operation in which the function of each of the parts complemented that of the others. Ills plan was not original; neither was his achievement unique. Other planters extended their holdings to engage in one or more activities related to coffee, but perhaps for lack of resources or the inability to analyze the structure of the coffee industry of the department and to see that the business encompassed more theui mere production, none except Richard Sapper attained more them a partial vertical combination. In the Alta Verapaz only the Sapper enterprise was comparable to that which Dieseldorff built. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J n r CHAPTER IV THE DIESELDORFF ENTERPRISE: FINANCING AND ADMINISTRATION In order for Dieseldorff to establish himself in the coffee business and then to expand his enterprise, he needed capital. When he made up his mind what he wanted to do, he was in the enviable position of being able to begin operations almost at once. Most Germans who csme to the Alta Verapaz had to work several years to accumulate enough capital to start out on their own. Dieseldorff, as a result of his family ties, was able to secure money immediately. The installments that he received from his inheritance between 1889 and 19001 gave him additional capital with which to operate, and consequently he did not have to rely exclusively on money from out­ side sources. Since he did not receive the entire amount at one time, he still found it necessary on several occasions to secure supplemental funds by borrowing. Dieseldorff's family connections were invaluable to him in obtaining capital and establishing credit. Relatives and family friends not only extended him personal loans, but more importantly in the long-run, they provided him an entree to banking houses in Hamburg, London, and Guatemala. These ties gave him a tremendous advantage over native-born citizens and most other Germans, who had difficulty in securing credit in Guatemala or abroad. Long-term ^Testament of J. P. D. Dieseldorff (May 2, 1887), DC, Family Documents. L 127 R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r capital advances that Dieseldorff was able to obtain during the first decade and a half of his career enabled him to increase his holdings tremendously and to begin putting into action the plans he had for­ mulated, At the same time, short-term credit facilities helped him to finance his everyday operations and to expand the sphere of his activities. Throughout his career Dieseldorff was a cautious borrower, lie was hesitant to burden himself too heavily with debts, and the number of long-term signatory and mortgage loans that he contracted were few. He preferred instead to expand his business by reinvesting profits or by using short-term credits. Documentary evidence indi­ cates that after about 1908 he ceased to borrow money on a long-term basis. Dieseldorff furthermore realized that the successful execu­ tion of his plans vn.3 dependent not merely on adequate financing but,equally important,on h1.n administration of the business. From the beginning he established firm control over activities and during the early part of his career he personally supervised all operations. As the enterprise grew, however, it became necessary to employ admin­ istrative assistants. Gradually personal management gave way to a system of delegated authority, and Dieseldorff over the years evolved a pyramidal hierarchy of responsibility of which he was the head. The result was a one-man operation, which was stamped by his person­ ality and was responsive to his orders, an operation in which every decision and every innovation was dependent on him. The funds that Dieseldorff obtained from various sources L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r i£l enabled him to start putting into effect his plans for the business. He used his money carefully. Buying land vaa naturally his most im­ mediate concern, and when he purchased many of his early plantations, he found it necessary to secure long-term loans. He knew, however, that mere ownership of land was no assurance of success, lie also needed money to operate the plantations and expand production. In order to do this he refrained from investing all his resources in property and set aside a portion for running expenses and improvements. During the first decade Dieseldorff used a large part of his capital to purchase land, and the amount that he had at his disposal determined the pace at which he was able to acquire properties. The 1*5,000 Marks ($ 11,000.) that he inherited from his mother's estate in June, 1889, and the 17,000 pesos loan at 6 % interest from Samuel Slattery^ (H. R, Dieseldorff's brother-in-law) enabled him to pur­ chase Chamcarel in July, 1889, for 5,000 pesos. ^ After the trans­ action he had sufficient money left over to cover operating expenses. . Eleven months later he astutely sold the finca for 26,000 pesos, U #y and used 11,000 pesos of this amount to purchase Seacte. Receipt of 50,000 Marks ($ 12,500.) from his father's estate in July, 1893, and the mortgage of Seact& to the Banco Comercial de Guatemala for 11,000 pesos the same month^ made possible three important acquisitions 2Notebook kept by Erwin P. Dieseldorff, Cnotation at end!, DC. ^Land sale document for Chamcarel (July 1 6 , 1889 ), DS, Secol Box. ^Land sale document for Chamcarel (June lU, 1890), DS, Secol Box. ^Land sale document for Seacte (June 7, 1890), DS, Secol Box. ^Notarized annotation dated July 25, 1893, on land title to Seact£, DS, Secol Box. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r during the following yeari Oecac-Ulpfcn, Chajcar, and Santa Margarita, which cost a total of 27,200 pesos*? In 1896 he received 60,000 Marks ($ 12*000*) from his inheritance, and with this amount he cancelled the mortgage on Seacte Between 1898 and 1900 Dieseldorff enjoyed a great Increase in his capital resources, which he used to buy more land and at the same time to initiate a tremendous expansion of his business opera­ tions. lie received in 1898 a capital advance of 22,000 Marks at 8 % interest from Haller, SShle & Co.,9 a Hamburg import firm that in­ cluded as one of the senior partners Dr. Martin GBhle, tho testamen­ tary executor of the estate of Dieseldorff's father. In July, 1899, Dieseldorff received 100,000 Marks (0 22,000,; 614,200 pesos)1,0 his inheritance. from The following year he got tho remainder of his share of his father's estate, nearly 200,000 Marks ($ 122,000.), invested in German government bonds, Hather than liquidate the securities, Dieseldorff kept them as a precaution in the event that something should go wrong with the business in Guatemala.11- To continue expansion of his business he obtained instead a loan of $ 12,000. at 10 % interest a year from Julia Gerdnima Dieseldorf ?Land sale document for Secac-Ulp&n (July 31, 1893), DS, Chajcar Box; Land sale document for Chajcar (September U, 1893), DS, Chajcar Box; Land sale document for Santa Margarita (August 13, 189*0, DS, "HiJos" Box. ^Notarized annotation dated January 30, 1896 , on land title to Seacte, DS( Secol Box. ^Ledger, "Libro Mayor," 1898-1899, p. 12, DC. 1(1The rate of exchange by this time was 1 Mark to 0,6*42 pesos. Ibid., 1898-1899, P. 6, DC. l^The investment was wiped out by the events of World War I and its aftermath. Interview with Frau Gertrude Quinckhardt. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. , J r i3ii daughter of H. R. Dieseldorff and wife of W ( A. Dieseldorff. 12 During the next few months he bought El Salto and Las Amazonas, and later for a total price of 12,000 pesos the key lots for Raxpec, Santa Cecilia, and Cubilgditz# 13 Dieseldorff repaid the loan from Julia Dieseldorff by installments and settled the account in July, 1913. lL During 1903 and 190U Dieseldorff financed the purchase of several properties by mortgaging land he owned. In August, 1903, he obtained a loan from the Banco Agricola Hipotecario de Guatemala, and put up Santa Margarita as security.^ bought Yalpemech and Candelaria,3-^ built San Diego-Yalpemech. Shortly thereafter he the original lots around which he Within a month he had mortgaged Yalpemech for 8,000 Marks and Candelaria for 2,000 Marks to Haller, S3hle & Co.3-^ With the money Dieseldorff purchased Sacchicagua3-® Chichochoc3-^ the following spring. and Three years later he repaid the I2Ledger, "Libro Mayor," 1900-1902, p. 20, DC. l^Land sale document for Chajuch (July 19, l899)» DS, Raxpec Box; Land sale document for Chinasajquln, Chicuc-Benlinimfi, and Sacarranche (January 23, 1900), DS, Santa Cecilia-Secac Box; Land sale document for Sarruj Jucub, Cantoloc, and Sauchil (December 19, 1901), DS, CubilgQitz Box. ■^Ledger, "Libro Mayor," 1911-1916, p. 13, DC. ^notarized annotation dated August 1, 1903, on land title to Santa Margarita, DS, "HiJos" Box. The amount of the mortgage is not given. l^Land sale documents for Yalpemech and Candelaria (October 5, 1903), DS, San Diego-Yalpemech Box. ^Notarized annotations dated November 12, 1903, on land titles to Yalpemech and Candelaria, DS, San Diego-Yalpemech Box. ^ L a n d sale document for Sacchicagua (March 19, 190U), DS, Secol Box. ^ L a n d sale document for Chichochoc (April 26, 190U), DS, ^J'Hijos" Box. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. ^ r Banco Agrlcola Hipotecario with a loan of 50,000 Marks from Haller, S3hle & Co., for which he had given the company a lien on Santa Margarita. 20 He used some of the remaining amount to buy an ad­ ditional lot in San Diego-Yalpemech.2^ Haller, SShle & Co. held mortgages on three of Dieseldorff’s properties until 1908 when the firm went into liquidation.22 Die­ seldorff owed the company a considerable amount of money, and being unable to fulfill the entire obligation at one time, he secured a personal loan for 36,000 Marks at 5 % annual interest from his fatherin-law Carl Gressler to help pay off the debt. He guaranteed the entire amount with a life insurance policy with the Equitable Life Insurance Company.23 The loan was outstanding until January, 1923, when Dieseldorff repaid it.2** Although Dieseldorff bought many other properties between 1889 and 1937* it appears that he did not find it necessary to make any other special arrangements to raise money for the transactions. The price of the large fincas he purchased was usually low enough that he could pay for the land with funds from his regular banking accounts. 20Notarized annotation dated September H, 1906, on land title to Santa Margarita, DS, "Hijos" Box. 2^Land sale document for Sechaj y Secacao (November 2, 1906), DS, San Diego-Yalpemech Box. ^ L e t t e r (carbon copy to EPD): A. Hamel for P. Woldemar Moller, Hamburg, to Dr. C. Albrecht, Hamburg, February 8, 1908, DS, "Hijos” Box. 23Ledger, "Libro Mayor," 1905-1911, p. 316, DC. 2**Ibid.. 1922-1925, p. 96, DC, By January, 1923, inflation had rendered the Mark almost valueless, but Dieseldorff nevertheless paid his father-in-law in United States currency at the pre-war rate of exchange. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r 13? When he repurchased Chamcarel, for example, he gave a ninety-day sight draft for U,200 pesos on Haller, SShle & C o . w h e r e a running account. he had He handled land purchases made in the 1920's and 1930's in a similar manner. For inexpensive small lots acquired from Indians or other persons, he generally paid cash. By World War I all of Dieseldorff's properties, except El Salto, were free from liens, and he incurred no new mortgages after the war. gaged for $ 5,000. to R. W. Hempstead,^ El Salto was mort­ who was married to Diesel­ dorff' s cousin Maria Luisa, daughter of H. R. Dieseldorff. When Dieseldorff began to expand and diversify his operations in 1898, the money that he received from his inheritance, and that which he borrowed, provided the initial financial backing. He knew, however, that these sums were not sufficient for him to carry out his plans to completion. The settlement of his father's estate closed off one source of capital, and he preferred to conserve the bonds he had received as his final share. Long-term loans, except in special instances, were unsatisfactory for his purposes, because the nego­ tiations and legalities involved took up too much time, and the interest costs, paid on an annual basis, in the long run added up to a large amount. Box; One of Dieseldorff's major objectives was to begin ^ L a n d sale document for Chamcarel (May 19, 1902), DS, Secol Ledger, "Libro Mayor," 1900-1902, pp. 6-8, DC. ^Letter: Paul 0, Mittelstadt, CCob£n3, to D, B. Hodgsdon, Guatemala, May 29, 1919, Letterbook, "iGdG," p. 92, DC, WW I Int. Pap. Mittelstadt had been Dieseldorff's Prokurist prior to the Guatemalan intervention of German properties. It is quite possible that Mittel­ stadt himself, having power of attorney, incurred the mortgage during Dieseldorff's absence, probably in 1917 or 1918, when he contracted Hempstead, who was a United States citizen, to market Dieseldorff's coffee. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 13? large-scale coffee buying, a profitable business marked by cutthroat rivalry, and one in which the buyer had to have at his command large amountB of cash in order to compete successfully* He realized that it was to his benefit to have at his disposal dependable sources of credit from which he could draw any time he needed money. For him the practical solution wa3 to establish credit accounts with firms that would allow him to borrow on a short-term basis* Consequently in 1898 he made contracts with several European brokerage houses and commission merchants for credit advances* The agreements set a ceiling on his total indebtedness to the company, but he could write as many drafts as he wished against his account as long as he did not exceed the stipulated amount. The loans were advances on future coffee crops, and he had to cover the drafts within an allotted period of time, usually ninety days, with coffee he shipped on consignment to the firm that had ad­ vanced him the money. The transaction did not involve Dieseldorff's selling coffee futures at a pre-set price. The company sold the coffee for him, at the current market rate and after deducting a sales commission, usually 1 %, credited his account with the proceeds. The annual interest on the money he drew varied from 5 % to 7 %» depending on the contract, although 6 % was the most common rate. The charges were prorated according to the number of days that elapsed between withdrawal and repayment. On drafts that he failed to cover in time he had to pay an acceptance commission, which ranged from 1 % to 2 1/2 %. The short-term credit accounts were most advantageous to the conduct of Dieseldorff's business. The accounts were a reliable L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 135I source of capital from which he could draw when he needed money to transfer to his hank accounts in Guatemala or to meet financial obligations abroad. For this reason they enabled him to operate more freely, and facilitated business transactions on an international scale. At the same time they permitted him to sell his coffee directly in foreign markets, and to save on interest charges as well since he paid only for the number of days he used the money. Fur­ thermore, having signed contracts with brokers in Hamburg, London, and New York, he was in a position to choose the most favorable mar­ ket for his coffee and draw from the account where he wanted to con­ sign and sell his coffee. Through his credit accounts he also made valuable contacts with export and manufacturing houses in Europe and the United States. After about 1908 he relied exclusively on short-term loans for business operations. By that time he had already purchased most of his major plantations, and he was well enough established that his own capital resources, together with credit advances, were sufficient to finance any new projects or land acquisitions. Personal and family connections, which had served Dieseldorff well in getting long-term loans, again helped him in opening advance credit accounts. During the 1890’s the CobSn-based firm of Diesel­ dorff 4 Co., owned by his uncle H. R., extended him the funds he needed and sold his coffee for him.2^ The arrangement was only temporary until he could establish credit abroad, because his uncle’s firm did hot H&Vei the baplthl resources to advance him as much ^Ledger, "Libro Mayor," 1898-1899, p. 26, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r money as he wanted, and furthermore it was to his advantage to sell his product directly through coffee brokers and importers. He began to seek new sources of credit, and in 1895 or 1896 he approached Koch, Hagmann & Co. of Hamburg and Guatemala, asking for financial back­ ing. Dieseldorff knew the partners resident in Guatemala through his uncle H. R. and his cousin August, and he had worked closely under Hagmann at Miramar, one of the company's plantations. The firm con­ sented to his request and gave him credit for up to 1+0,000 Marks, which pQ he would cover with coffee consignments. The arrangement was on a year-to-year basis and continued until 1898 when he closed the account. Dieseldorff's plans for the expansion of his business in 1898 required a greatly increased amount of credit resources, and early that year he approached several potential backers. He soon found that some firms were not as optimistic as he about prospects in the Alta Verapaz. Koch, Hagmann & Co. turned down his request to raise his credit to 100,000 Marks, 29 and P. Leckie & Co. of London, from whom he had asked for an advance of £. 3,000., once again refused him credit.30 The reason for Dieseldorff's failure to interest these two firms in backing his venture was perhaps that his timing was inopportune. The coffee market had undergone severe setbacks in 1897, and chances for a rapid recovery appeared bleak. In Guatemala the 28lbid., 1898-1899, p. 9, DC, ^ L e t t e r : EPD, CCobSnD, to Koch, Hagmann & Co., Hamburg, July 1^, 1898, Letterbook, "Varias Cartas," No. 1, p. 83 , DC. ^Letters: EPD, CCobSnD, to P. Leckie & Co., London, July lH, and August 8, 1898, Letterbook, "Varias Cartas," No. 1, pp. 79-81, 1A7, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 1371 political situation was unsettled following two years of revolution, fighting, and turmoil, and after the assassination of President Jose Marla Reina Barrios, it was unknown when order would be restored. Al­ though the Alta Verapaz was generally isolated from the mainstream of national political rivalries, conditions in the department had be­ come dangerous enough to warrant the German community's banding to­ gether to form a civilian militia for mutual protection of lives and property. There were, however, several brokerage houses with more liberal lending policies that believed the market situation and the in­ stability of the Guatemalan government would be of short duration, and were willing to extend credit to Dieseldorff. account for He established an 5,000. in 1898 with RSsing l;ros.,32 a London firm that had lent money during the l88 o's and 1090 's to other coffee planters in the Alta Verapaz, among them W. A, Dieseldorff.33 Erwin Dieseldorff had gotten to know officials of the company well when he served as intermediary during the bankruptcy proceedings of the Baron Hans von Tiirkheim, on whose properties Rosing Bros, held second mort­ gages. ^ in Hamburg he opened two current accounts of 50,000 Marks _ _ _______ ^ G F M A , Reel 22, Frame 370. Nachrichten. December 10, 1897• j _____ ____ _____ _______________________________________ ________ __________________ Clipping from the Berliner neueste ^Ledger, "Libro Mayor," 1898-1899, p. 13, DC. 33e i Quetzal (Coban, AV, Guatemala), Ano 3, No. f2, June 20, 1882; El Boletlln Agricola (Coban, AV, Guatemala), Ano 1, No. 1, July 1, 1888; El Democrats (Coban. AV, Guatemala), AHo 3, Nos. 118 and 119, March 25, and April 10, 1889. ^Letter: EPD, CCoban], to Hans von Turkheim, Cubilgflitz, September 28, 1898 , Letterbook, "Varias Cartas," No. 1, p. 257, DC; Notarized annotations dated February 9, 1898 , on land titles to Cubilguitz and Yaxcabnal, DS, Cubilguitz Box. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r each (raised later to 100,000 Marks each) with Haller, SShle & Co.,35 vhich had. also made a long-term capital advance to him. time he Co., At the same also received credit up to 50,000 Marks from Peter Siemsen & H a m b u r g , 36 tut Dieseldorff disagreed with the firm's methods of calculating acceptancecommissions and on other matters, closed this account in 1902.3? and he in New York he obtained credit from G. Amsinck & Co., who had helped the Sarg brothers establish themselves in the Alta Verapaz,3® small since he shipped but his account with Amsinck was relatively most of his coffee to Europe.39 Although Dieseldorff maintained several advance credit ac­ counts, Co. for the next few years the main one was with Haller, Sohle & The firm readily extended to him as much money as he required, and he was apparently satisfied with the way it marketed his coffee. In 1900 the company opened a branch office in London, which enabled Dieseldorff to sell his coffee through the same broker in either Germany or Great Britain. them,1*0 Thereafter he dealt almost exclusively with and eventually ceased using his account with RSsing Bros.1*1 35Ledger, "Libro Mayor,” 1898-1899, pp. 10, 11, 26, DC; 1900-1902, pp. 6-8, DC. ibid., 36Ibid., 1898-1899, P. 6, DC. 37Letter: EPD, CCobSnG, to Peter Siemsen & Co., Hamburg, July 7, 1898 , Letterbook, "Varias Cartas,” No. 1, pp. 37a, 37b, DC; Ledger, "Libro Mayor," 1900-1902, p. lU, DC. 38peutschtum in der Alta Verapaz (Stuttgart, 1938), p. 22. 3^Ledger, "Libro Mayor," 1900-1902, p. 15, DC. ^ B i l l s of lading for coffee shipments, Letterbook, "Ferrocarril Verapaz," No. 1, pp. 129-21U (1901/1902 harvest), DC. ^Ledger, "Libro Mayor," 1900-1902, p. 12, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r From time to time Dieseldorff had to find new sources of credit, hut throughout his career he followed a set pattern: he established one major account but concurrently maintained several subsidiary ones* To a great extent the business operates in the same manner at the present time* Dieseldorff continued using the facilities of Haller, Sdhle & Co* until 1908, when the death of one of the partners forced the firm into liquidation* 1*2 By this time Dieseldorff was well known in the coffee market, and he was able to make satisfactory ar­ rangements with August Sanders & Co*, which had offices in Hamburg and London and handled most of his coffee until 19ll*.^3 When World War I disrupted shipping to Europe, the Dieseldorff firm began marketing its product in the United States, and received backing chiefly from Eggers & Heinlein, and to a lesser extent from Hard & Rand, both of New York.**1* During the 1920's and 1930's Dieseldorff maintained small accounts with brokers in Amsterdam, Hamburg, London, and several Cen­ tral European capitals, but his most important source of credit for nearly a decade and a half, until 1936, was Fredk MSller S8hne, of Bremen and A m s t e r d a m , a firm that had been established by one of ^2Letter (carbon copy to EPD): A. Hamel for P. Woldemar Moller, Hamburg, to Dr. C* Albrecht, Hamburg, February 8, 1908, DS, "Hijos" Box. ^ B i l l s of lading for coffee shipments, Letterbooks, "Ferrocarril Verapaz," No. 3, pp. 367-1*69, 1*75-500, No. U, pp. 117-197, 206-323, 325-398, DC. ^ B i l l s of lading for coffee shipments, Letterbook, "Ferro­ carril Verapaz," No. 6, pp. 3-100, 113-186, DC; Ledger, "Libro Mayor," 1916-1922, pp. 201-202, DC. ^ R e c o r d books, "ConsignaciSn cosecha," No. 1, pp. 1-3**, 36-90, No. 2, pp. 1-22, 25-33, 35-66, 68-73, 75-77, 79-31, 83-86, 88-99, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r his father's closest associates.1*^ The advances that Dieseldorff obtained were vital to the opera­ tion of his business in Guatemala, and most of the funds he drev were for this purpose. He deposited sight drafts in banks or bro­ kerage houses in Guatemala City, including Fredk Keller & Co., so, Caesar Hesse, and the Banco Agricola Hipotecario, kept regular checking accounts. U7 C. Lin- where he The firms imposed a flat charge of J.Q lA % for currency exchange. He drew checks against the accounts in Guatemala to cover such current expenses as railroad shipping costs, trans-Atlantic cable charges, insurance premiums, commissions, per­ sonal services, and the salaries of his employees. Other expendi­ tures, coffee buying and mozo wages for instance, required cash. Since banking facilities in the Alta Verapaz were pitifully inadequate, the only means of obtaining either paper or metal currency was through the banks in the capital, from where the money was sent by carrier to Cobin. The ready availability of cash was a distinct asset to Diesel­ dorff in the coffee buying business, for it enabled him to take ad­ vantage of sudden opportunities to make profitable transactions. Dieseldorff used his credit accounts conservatively. Except in special instances, he adhered strictly to the maximum limit set, although his creditors, having confidence in him, were generally will­ ing to allow him to exceed it within reason. "I will only draw the ^Annotation in EPD's handwriting on flyleaf of Letterbook, "MSller Sohne,” DC. ^ L e dger, "Libro Mayor," 1898-1899, pp. 7, 21, DC; 1900-1002, pp. 50, A , 161, DC. ^ I b i d . . 1898-1899, PP. 7, 21, DC; ibid., ibid.. 1900-1902, pp. 5 0 , 5U, i ^ TTdc. L .» R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. — r sums that I can cover with coffee shipments," he wrote on several occasions.^9 To economize further on interest charges he withdrew only currently necessary amounts, rather than take the entire sum available at one time. He also created an elaborate and comprehensive system of bookkeeping, whereby he could check how every cent he bor­ rowed was spent, and make certain that none of the money was wasted. From a number of different sources Dieseldorff secured suf­ ficient capital to establish and operate his enterprise, but the piv­ otal reason for his success in the coffee business was his effictivfe administration of the finca complex.-50 All of his properties, ex­ cept San Diego-Yalpemech, were to some degree involved in the pro­ duction of coffee. Dieseldorff realized that in order to deploy his financial resources efficiently and make a profit from his in­ vestment, it was essential that he be able to implement his plans, oversee expenditures, and coordinate the functions of the planta­ tions within the unit. To accomplish this he needed to maintain rigid control over the activities on the fincas and over the people who worked for him. In the beginning, when he possessed only Seacte, the task of ^Letter: EPD, CCob&nD, to Peter Siemsen & Co., Hamburg, July 7, 1898 , Letterbook, "Varias Cartas,” No. 1, pp. 37a, 37b, DC; Letter: EPD, CCobfinD, to Koch, Hagmann & Co., Hamburg, July 28, 1898 , Letterbook, "Varias Cartas," No. 1, pp. 122-123, DC. 5^Fhe author obtained data concerning the administration of the Dieseldorff plantation complex from the company papers in the Dieseldorff Collection (the letterbook series "Fincas" in particu­ lar), from interviews with relatives and former employees, and from ( personal observation of the present-day system. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. | r administration was relatively simple, beoause he could direct the work and the mozos on the finca by himself. After he began to ac­ quire more properties, however, it became impossible for him to manage his holdings without assistance. He found it necessary to hire persons through whom he could exercise authority, but what he had learned from his travels and observations reinforced what he believed by intuition: that he had to remain in control at all times. As the number of employees grew, an elaborate hierarchy of respon­ sibility began to take shape. Thus, there is to some degree a parallel development between the evolution of the plantation complex and the administrative structure. The lack of documents for the period from 1890 to 1898 makes it difficult to pinpoint exactly when the additions to the adminis­ trative structure took place, but perhaps the development is not as important as the result. Undoubtedly Dieseldorff copied the examples of others and created positions and delegated responsibilities as the need arose. By about 1898 the administrative system had reached its final form. The increase of land holdings naturally resulted in an enlargement of the labor force, but this change was basically only quantitative. Throughout Dieseldorff's career, and even down to the present day, management of the finca complex followed the pattern that existed in 1898 . The administrative structure of the Dieseldorff plantation complex was pyramidal. The hierarchy, in descending order, consisted of Dieseldorff, a confidential clerk or Prokurist, the finca in­ spectors, the finca administrators, the alcaldes | auxlliares.51 and 51rhe alcalde was the principal executive official of a R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. | r the resident Indian laborers (colonos), At the apex stood Dieseldorff, who controlled the entire system from the central office. Directly under him were one or two Prokurlsts, experienced and trusted em­ ployees with authority second only to Dieseldorff's, who had power of attorney and managed the business for him when he was absent from Guatemala. The Inspectors examined the fincas at frequent Intervals and reported their findings to Dieseldorff to keep him abreast of progress and developments. Dieseldorff or his confidential clerks augmented the information received from the inspectors by periodi­ cally making personal visits, often unannounced, to the plantations. The administrators managed the fincas and received all their in­ structions from the central office or through the inspectors. On the very large fincas, such as Secol, Raxah&, Santa Cecilia, and Chajcar, the manager had one or more assistants to help run the plantation. Under the administrators and in direct contact with the Indians were the alcaldes auxiliares, who were themselves Indians appointed to the position by local government officials from lists submitted by Dieseldorff, They acted not only as leaders of the various groups of Indians on the property, but Dieseldorff used them to oversee the work gangs and required them to appear daily before the administrator to report the names of mozos who had worked and what had been accomplished. The colonos were the manual municipality. Within his geographical jurisdiction, he appointed alcaldes auxiliares to centers of population without municipal organization, including the larger fincas. On a plantation the alcaldes auxiliares were appointed from a list df names submitted by the plantation owner, and these officials, who were generally Indian colonos, discharged the functions of alcalde as well as other duties assigned by the landowner. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 1*71 laborers of the fineae. In addition to the above employees, there were offioe and plantation personnel, who functioned under Dieseldorff's direction, but whose duties did not directly involve the administration of the fincas. As Dieseldorff's holdings grew, the correspondence, bookkeeping, and routine paper work, which administration of the fincas required, became more than he bduld cope with alone. To re­ lieve the pressure on himself he gradually began to expand his clerical staff. He delegated the writing of most of his business letters to the Prokurists and to secretaries, but he dictated what to say in most cases. He hired German and Guatemalan bookkeepers to maintain the company records, and for other matters that re­ quired particular training he employed professionals, such as mechanics and agronomists. The administrative structure of Dieseldorff's complex was not unique in the Alta Verapaz. practically every plantation. The same or vcjriations of it existed on If a finquero owned many properties, as Dieseldorff did, he most likely employed business managers, inspectors, and administrators to help him operate the business. In small concerns the categories of the hierarchy were fewer, yet the base of the pyramid remained the same. The owner of a single finca, for instance, would himself act as inspector and manager, as Dieseldorff did in the beginning, but beneath him there were al­ ways the alcaldes auxiliares, and at the bottom of the scale the colonos. Although the Dieseldorff administrative system did not differ substantially from that used by others, the degree of control that L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 145I he exerciied over the entire operation was perhaps less common. Whereas the tendency among the large finqueros was to become absentee landowners and live in more convivial surroundings in Guatemala City or in Europe» Dieseldorff steadfastly refused to abandon Cobin com­ pletely or to relinquish permanently administration of his concern to a business manager. During his absences from Guatemala and in the later years of his career, he relied heavily on his office staff, but even then he asserted ultimate control over decisions and planning. In the operation of his plantation complex Dieseldorff epit­ omized the Latin American concept of patrSn and personallsmo.^2 He administered the system paternalistically as its unquestioned head, a patriarch whose word was fiat and who demanded complete obedience. By choice he involved himself with every aspect of the business, no matter how small, for he was keenly aware that the privilege of being a patrSn brought with it concomitant responsibilities, and that the ultimate success or failure of the enterprise depended on him. "In Cobin a patrSn has to see to everything," he once remarked to his daughter Matilde, "and if he does not, he will lose out completely."^ This conviction motivated his actions throughout his career. From the inception of the business he established and maintained complete control over operations. He remained in close contact with his staff, as well as the mozos, but countenanced no disobedience or ^ T h e r e is a lengthy discussion of the concept of patrSn and personalismo in Latin American culture in: Thomas C. Cochran and Ruben E. Reina, Entrepreneurship in Argentine Culture. Torcuato Di Telia and S.I.A.M. IPhiladelphia, 19&2), pp. So-6l, 132-133, lk>, 1H 2 - I W , 1^9-170. ^Letter: EPD, Cobin, to Matilde Dieseldorff de Quirin, CHamburg], December 31, 1931, DC, Family Correspondence. i- ■ R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. * oppoaition to his orders. In many respectB Dieseldorff's attitude towards his enter­ prise and towards his employees and the mozos on his fincas was also characteristically German. The sentiments that he expressed to his daughter echo the words of Thomas Buddenbrook, whose "desire to pro­ tect and increase the prestige of the CfamilyD firm made him love to be present in the daily struggle for success," and who said, A businessman cannot be a bureaucrat. . . . It takes personality— that is my view, I don't think any great success is to be had from the office alone— at least, I shouldn't care for it, I want to direct the course of things on the spot, with a look, a word, a gesture— to govern it with the immediate influence of my will and my talent.51* Dieseldorff could Just as easily have uttered the same words as the hero of Heinrich Mann's novel Per Unterthan. who upon inheriting the family factory said to his workmen, I have taken the rudder into my own hands. My course is set straight. . . . Those who wish to help me are heartily welcome; whoever opposes me I will smash. There is only one master here and I am he. . . . You can always count on my fatherly benevolence but . . . Cthose who disobey meJ will be shattered against my unbending will.55 From the central office Dieseldorff asserted his authority by dictating every activity on the fincas and checking compliance with his orders through the elaborate system he created. The in­ spectors were his personal representatives and conveyed his to the administrators, who acted on them. orders The inspectorswere 51*Thomas Mann, Buddenbrooks, trans, H. T. Lowe-Porter, l*th ed. (New York, 1957), p. 225. 55qUoted in: Barbara W, Tuchman, The Proud Tower. A Portrait of the World before the War. l890-19lU (New Y o r k , L966), p. 307. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r only one line of communication with the fincas, however. From the central office the administrators received, almost daily, letters with instructions, questions, and advice covering every facet of operation, such as clearing new land, planting coffee trees or food staples, pruningi fertilizing, harvesting, processing, coffee buying, repairing machinery, as well as matters concerning the Indians, their work., their contracts, and their behavior. To obtain current data on the fincas Dieseldorff required the administrators to submit weekly reports on the Jobs accomplished or in progress and the num­ ber of days individual Indians worked. There was no standard form for the reports, and Dieseldorff encouraged the overseers to ex­ press their ideas openly, to discuss problems, and to voice sug­ gestions or complaints involving the fincas. Information received from the plantations Dieseldorff corroborated with the reports of the inspectors and with his own tours of observation. He further controlled the fincas by making them totally dependent on the central office for supplies and for all funds necessary for operating costs. He kept meticulous records of all expenditures with an elaborate bookkeeping system at Santa Marga­ rita, and a set of books on each of the fincas, which he fre­ quently examined. Each of the plantation managers had to account to him for every cent used. In this manner he could more easily detect misspending and take immediate action to stop it. On more than one occasion he chastised an employee for being wasteful, as when he wrote the administrator of Panzal, I repeat, . . . you have spent money without think­ ing, Each peso should be spent with the idea of not only getting back the money but of increasing the sum. . . . Your expenditures. , . have been very badly R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r planned, and I hope I will soon see a much desired change* I want you to come here* * • and bring me your account books, and we vill examine everything item by item.^® In the administrative structure the levels of hierarchy were fairly rigid, but Dieseldorff allowed certain flexibility in communica­ tion* Because he was the patrSn, he did not set himself up as an unapproachable potentate, who could only be reached through a bureau­ cratic chain of command. Rather he freely permitted contact between himself and any level of the social order in the complex. The in­ spectors had personal contact with him, as did the administrators through letters or conversations. In his ceived visits from alcaldes auxiliares or office he frequently re­ the mozos, and he obligingly listened to their petitions or complaints. His attitude towards these lover members of the system was paternalistic. He was genuinely in­ terested in their welfare and benevolently gave them his advice. Fre­ quently the Indians' complaints were about the personnel on the finca. Undoubtedly Dieseldorff paid particular attention to this type of criticism, because there was always the possibility, he realized, that seemingly petty accusations were prompted by the misconduct of corruption of one of his employees. During Dieseldorff's absences from Guatemala the system continued to function in much the same manner. The Prokurists acted in his st-ad and had the legal power to conduct business transac­ tions. Nevertheless, their actions were subject to his approval. The Prokurists wrote him lengthy letters at least once a week to ^Letter: EPD, Cobin, to Manuel ConlDelo, Panzal, March 23, 1901, Letterbook, "Fincas," No. 1, pp. 7-9. DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r keep him informed of what was happening, of decisions they had made, and of matters that required his attention,5T tation managers to write him also.5^ and he ordered the plan­ His letters to Cobin were equally long, and in this way he constantly made his presence felt. On his return to Cobin he held the Prokurists answerable for any unauthorized decisions or actions. There were serious drawbacks inherent in the personally directed enterprise that Dieseldorff created, for its successful operation depended entirely upon the leadership of one man, the owner. Dieseldorff was able to make it work, because he understood the sit­ uation and asserted his authority unwaveringly, and equally important, because he was willing to stay in Cobin and devote the time to the business that proper functioning required. Even when he was gone from Guatemala, his control remained unbroken, for his absences were of short duration and he remained in close contact with his employees. From his experience during World War I, when he was absent from Guatemala, he learned that his continued presence was essential to keep the business going. The loyalty of his employees was to him alone. No hired manager, however capable and trustworthy he 5?For example, during Dieseldorff'e absence in 1900 the office manager wrote him on May 27, 28 , and 29; June 1, 7, 15 (2 letters), 22, and 29; July 6 , 12, 20, and 27; August 17 (2 letters), 2H,and 29; September ll*, 21, and 28; and October 5, 11, 19, 26, and 30. Letterbook, "Varias Cartas," No. 3, pp. Ill, 113, 122-129, 133-131*, 11*7-150, 165-167, 170-171, 180-183 e 208- 211, 228-229, 2UU-2U7, 261*266, 273-277, 306-311, 316, 33l*-335, 31*7-31*8, 36H-370, 379-382, 391392, 1*09-1*10, 1*19-1*20, 1*23-1*26, 1*36-1*38, 1*51-1*52, DC. ^Letter: EPD, CCobinU, to Vicente Rosilez, Administrator, Santa Cecilia, May 23, 1900, Letterbook, "Varias Cartas," No. 3, pp. 79-80, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r might be, could run the business for an extended period of time if communications with Dieseldorff were severed. Without Diesel­ dorff, long dormant Jealousies and rivalries erupted; staff mem­ bers, since they had no vested interest in the business, tended to neglect their work; and some, who contemptuously regarded the man­ ager as a mere hireling, rebelliously refused to take orders from him. When Dieseldorff returned to Guatemala in 1919, he found operations at a standstill and the business on the brink of col­ lapse.^ It required a great deal of effort on his part to reestab­ lish personal control and harmony between employees so that work could begin again. He determined that the situation should not recur, and for this reason he began preparing his son to take his place several years before his retirement. Although Dieseldorff knew that there were weaknesses in his administrative structure, he believed that in his case these were outweighed by the advantages. One-man control suited his person­ ality and enabled him to exercise his authority forcefully and to run his business in his own way. He had worked out in his mind long- and short-range plans for expansion of the enterprise, taking into consideration the amount of capital he had available. To execute the projects successfully he had to be able to convey his orders to his employees and to make certain they obeyed them. The similar situation arose after the death of Willi Dieseldorff and again after the death of his wife, when the business almost collapsed in the hands of a business manager. In both cases the problem was not solved until a member of the family reasserted control and resumed personal administration of the enterprise. Erwin Dieseldorff's system of control, once established, was selfperpetuating and virtually impossible to change. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 15H administrative system provided him the means for doing this. The circumstances under which Dieseldorff settled in the Alta Verapaz in 1890 were undeniably favorable. He could not only look forward to receiving over the next ten years a large inheritance to invest in his enterprise, but through family and business ties in Guatemala and in Germany he was able to secure the extra financial backing he needed. His situation was rare, but not unique. A num­ ber of other foreigners— Englishmen, Frenchmen, Italians, North Americans, and Germans— came to the department with money and commercial connections abroad, but only a handful, mainly Germans, utilized these advantages as well as Dieseldorff did. resources alone did not automatically spell success. only the beginning. Financial They were Judicious use of funds available and effective management of the business often determined the difference between failure and success. Dieseldorff’s use of capital reflects his cautious and generally conservative approach to business. After acquiring a nucleus of excellent coffee properties, he began in accordance with his long-range plans to concentrate on building a self-sufficient plantation complex. To conserve resources and guard his investment, he refrained from burdening himself with heavy mortgages although this source of money would have given him cash to expand operations even further. Extreme indebtedness, Dieseldorff believed, made a business particularly vulnerable to price fluctuations in the world market. In the Alta Verapaz a number of Guatemalan, and German fin- queros, such as the Baron Hans von Turkheim, Stalling & Winter, L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 15? Ellas and Victor Barrientos, Jacinto C6rdova, and Manuel R. Perez, who had incurred heavy liens on their lands, had teen forced into liquidation, because they were unable to meet their obligations when a drop in coffee prices precipitated a financial crisis. Dieseldorff was unwilling to risk all he had— and fortunately he did not have to when he obtained credit for expansion— but rather he gauged his rate of acquisition and expansion according to his resources and made mortgage loans only when absolutely necessary. Short-term credit, Dieseldorff believed, was preferable to long-term loans as a means of financing, because it was more readily available and more economical to use. As his business grew, he relied more and more on advance credits, and during the latter part of his career he used this type of financing exclu­ sively. He obtained money from his accounts as he needed it, but prudently drew only as much as he could cover with coffee con­ signments, As was the case with long-term loans, he consistently avoided becoming heavily indebted. Dieseldorff was as frugal in business as he was in his personal life. His shrewd administration of the plantation com­ plex enabled him to put his plans into action and, coupled with his bookkeeping system, to supervise and regulate the amounts spent on every operation. With the strong control and the firm authority that he exercised over the enterprise, he was able to operate the business as he judged best. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r “i CHAPTER V THE COFFEE BUSINESS: INCREASED EXPORTS Erwin Dieseldorff, immediately upon establishing himself in the coffee business, initiated efforts to expand the volume of his coffee exports. In order to do this he took a twofold approach, which involved both agricultural and commercial activities. During the 1890's his efforts were largely directed towards agriculture. He extended the acreage planted to coffee, and at the same time he at­ tempted to increase the yield per tree by using improved methods of cultivation. Although he continued to employ the agricultural approach throughout his career, at the turn of the century with the new credit resources Dieseldorff had at his command, he was able to extend his operations to coffee buying. Thereafter, to supplement production, he purchased unpulped or partially processed coffee from Indians and from other small producers and marketed the product in addition to his own. Dieseldorff was successful in his efforts to increase his coffee business. Annual exports grew from 296,900 pounds oro coffee during the 1898/1899 harvest^- to 1 ,225,000 pounds oro coffee in the 1936/1937 season.^ The percentage of increase was 315.60 %. These ^Bills of lading for coffee shipments, Letterbook, "Ferrocarril Verapaz,” No. 1, pp. 301-355 (1898/1899 harvest), DC. p Record books, "Consignacion cosecha,” No. 1, pp. 8U-90, No. 2, pp. 83-86, 88-89 (1936/1937 harvest), DC. L 153 R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r statistics ara somewhat misleading, however, because the latter har­ vest vas unusually large. Using five-year statistics, exports increased frost an annual average of 355,500 pounds oro coffee during the period 1898/1899 to 1902/19033 to 803,500 pounds oro coffee for 1932/1933 to 1936/1937,11 or 126.02 %. Dieseldorff's coffee exports, as the figures shov, did not grow at the sane rate as the acreage he owned. There were several reasons for this. Much of the land that he purchased vas neither suitable for coffee cultivation nor acquired for this purpose. Furthermore, the total area planted to coffee grew slowly, owing to the high cost of enlarging the amount of land under cultivation and the length of time required to establish new groves. There were also other considerations to be taken into account, such as the availability of labor and of transport facilities. The increase of Dieseldorff's exports nevertheless compares favorably with the annual totals for Guatemala. The country's cof­ fee exports grew only moderately from am annual average of 86,042,000 pounds for the period 1909-1913, to 104,191,000 pounds for 1934-1938,5 ^Bills of lading for coffee shipments, Letterbook, "Perrocarril Yerapas,” No. 1, pp. 301-355 (1898/1899); pp. 356-421 (1899/1900); pp. 422-434, 114-128 (1900/1901); pp. 129-214 (1901/ 1902); pp. 215-246, 435-438 (1902/1903), DC. ^Record books, "Consignaci6n cosecha," lo. 1, pp. 45-53, Ho. 2, pp. 45-53 (1932/1933); Ho. 1, pp. 54-67, Ho. 2, pp. 54-63 (1933/1934); Ho. 1, pp. 68-75, Ho. 2, pp. 56, 64-66, 68-70 (1934/ 1935); Ho. 1, pp. 76-83, Ho. 2, pp. 71-73, 75-77, 79-81 (1935/ 1936); Ho. 1, pp. 84-90, Ho. 2, pp. 83-86, 88-99 (1936/1937), DC. 5International Institute of Agriculture, "The World's Coffee," Studies of the Principal Agricultural Products on the World Market. IX (Row, 1947), p. 400. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J or 20*2? %« During this same interval Dieseldorff'a grev 91*67 %,*> a figure closer to the increases other Central American countries en­ joyed: El Salvador, 8U.85 %; Costa Rica, 80.00 %; and Hicaragua, 77*67 %.7 The cultivation of coffee can be complex and painstaking or relatively simple, whichever the plantation owner chooses to make it. Coffee seedlings were relatively easy to obtain in the Alta Verapaz, and a finquero could buy as many as he needed and set them out in the ground. The trees grew by themselves and eventually bore fruit. Be­ cause natural conditions in the department were almost ideal for coffee cultivation, a planter could leave the trees untended four or five years and still reap a harvest. Haphazard cultivation methods, however, resulted in crops of uneven size and quality, and plants treated carelessly had a short bearing life. Ervin Dieseldorff eschewed this approach to coffee cultiva­ tion. He wanted not only maximum production on his plantations, but a high quality market comodity as well. For this reason he placed great emphasis on improving cultivation techniques. To increase production he enlarged the area planted to coffee and simultaneously sought to obtain a larger yield per tree. Although these methods were costly and required a considerable amount of work and attention 6Bills of lading for coffee shipments, Letterbooks, "Ferrocarril Verapaz," Ho. 3, pp. **75-500, Ho. *», pp. 117-197 (1908/ 1909); Ho. pp. 206-323 (1909/1910); Ho. kt pp. 325-398 (1910/1911) DC. There are no statistic available for the 1911/1912 and 1912/ 1913 harvests. 7International Institute of Agriculture, pp. kOO-Uoi. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r n 156 to detail, Dieseldorff, through his efforts, employed them vith con­ siderable success. Eaoh year during the month of May and the first part of June the most Important activity on the plantations vas the setting out of coffee saplings (called a3mtclaos in Ouatemala) in their permanent locations.® The voxfc, on Dieseldorff*s fincas, required tvo years of advance preparation.9 He first carefully selected fully ripe berries from young, vigorous trees that had consistently borne excellent har­ vests for several years, removed the red outer skin by hand, and ®Letter: EPD,CCobanl, to Vicente Ros&lez, Santa Cecilia, May 23, 1900, Letterbook, "Varies Cartaw," Ho. 3, pp. 79-80, DC; Letters: EPD, CobSn, to Caralampio L$pez, Secac, May 3 and 23, 1901, Letterbook, "Fincas," Ho. 1, pp. 44-45, 6l, DC; Letters: Albert Ludvig for EPD, Cobfin, to Benvenuto L6pez, Seactf, April 30, and June 3, 1902, Letterbook, "Fincas," Ho. 1, pp. 394, 438-439» DC. ^Data concerning Dieseldorff's methods of cultivating, har­ vesting, and processing coffee on his plantations came from company correspondence and papers, lntervlevs with relatives and former employees, and personal observations. Particularly useful vas: Ervin P. Dieseldorff, Per Kaffeebaum. Praktlsche Erfahrungea ttber seine Behandlung in nSrdllchan Ouatemala (Berlin, C19061). Dieseldorff1a approach to the subject is highly personal, and he deals mainly vlth his ovn ideas and techniques. Other vorks consulted vere the International Institute of Agriculture volume on coffee, and the following: Juan Antonio Alvarado, Tratado de caficulture practice. 2 vols. (Guatemala, 19351936); Ralph Holt Cheney, Coffee. A Monograph of the Economic 8pecies of the Genus Coffea L. (Hev"lforh. 1925): F. W. Dafert, Erfahrungen ftber rationellcn'"Kaffeebau (Berlin, 1896); Oscar Baron du Tell and Xavier du Tell, "Cultivo del cafeto y beneficlo de su fruto," La Sociedad Econfraica de Guatemala. I, 4 (May, 1866), pp. 76-90, I, 5 (June, 1866), pp. 91-98* I, 6 (August, 1866), pp. 108114; Gabriel G&nez, Cultivation and Preparation of Coffee, trans. W. Thompson (Mexico, 189k); F. W. Morrcn. Kofflecultuur in Guatemala, met aanteekenlngen Betreffende de overlap Cultures de MiJnen en den eccnomischen Toestand van dexe Bepubliek (Amsterdam. 1899); Villiam H. Ukers, All about Coffee (Hev York, 1935); Joseph M. Walsh, Coffee, its History. Classification and Description (Philadelphia, 189577 L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r dried the berriee under shade. Next he plaoed the seeds in beds, which he kept moist and shaded during the six or seren week germina­ tion period. About six months later, when the seedling was approxi­ mately eight inches tall, he transplanted the strongest specimens to a nursery, putting them in small individual containers to promote healthy root growth. The young boys and older men on the plantations tended the alm&clgos, alternately shading them and exposing them to the sun to strengthen them, and periodically topping them to induce development of lateral branches. Same eighteen months later, about two years after the seeds were planted, the alm&cigos were ready for transfer to a permanent site. During the almiclgo stage Dieseldorff selected the sites of the future groves, basing his choice on the soil requirements of the coffee plant. For the plant to thrive the ground had to have deep, fairly heavy topsoil, free of large rocks, and rich in humus and the necessary mineral elements. The site also needed exposure to the sun's rays to varm the soil and good ventilation to deter growth of fungus diseases. After Dieseldorff had chosen sites for the new orchards, the laborers on the finca began to prepare the area. The mountainous terrain of the Alta Verapaz made the work particularly slow and dif­ ficult. First they cleared the ground and plowed the soil lightly, following this with a thorough cultivation. About a year before the plants were ready for transplant, Dieseldorff set out in the field banana trees and chalums (Inga xalauenals) that would provide the shade required by the coffee trees. Located between the rows of L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w ith o u t perm ission. r ^ 153 coffee trees, the b u u u gay* a low ten** shade, and tha chalums, which grav much taller, aarvad as a higher second soreen againat tha diraot rays of tha sun. Tha shade trees performed aareral important functions in tha ooffa* grove* Since tha haana developed bast under even ollsiatle con­ ditions, the shade trees helped to keep tha temperature and humidity in tha orchard constant and protected tha coffee bushes against frosts and windstorms. In addition the trees helped to deter erosion of the soil on the steeply inclined mountain slopes and proved valuable in other respects as veil. Chalums accumulated nitrogen in the soil, and bananas, although they had to be thinned regularly to prevent too dense a growth, bore an edible fruit, and the leaves of the trees when trimmed off, built up humus in the soil. Although Dieseldorff used bananas and chalums almost exclusively for shading, other flnqueros in the Verapaz and elsewhere in Ouatemala sometimes planted different trees, such as madre cacao (Gllricldla seplum-Jsequin). gravilea (Orevlllea robusta cunn), or casplrol (Inga preussll). A few weeks before the alm&cigos were ready for transplant, the mozos, under Dieseldorff*s supervision, began final preparation of the field. They dug holes two and a half foot deep (deeper if the soil vas light) at intervals of nine or ten feet, depending on the richness of the soil. The distance between rows vas twelve feet.^O 108ometiaes triangular, hexagonal, or checkerboard patterns vere used, but straight rows were more common since this system made cultivation and harvesting easier. The triangular system ensbled the owner to plant two to three hundred more trees per acre, but under these circumstances maintenance and harvesting vase difficult, and Dieseldorff therefore did not lay out groves in this manner. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r On aountain alopoa Dloaoldorff terraced tha rova to prevent aroaien and for tha ooffaa traaa to fora a natural vail of protaetlon against high vinds. Tha idaal tlaa for tranaplantlng vaa during tha rainy aaaaon. Diaaaldorff and hia aaaiatanta ehoaa tha atrongaat planta, and tha aoioa tlad tha dirt around tha almtcigo roota in a tight ball. Than thay traaaferrad tha planta to the holes, aatting out about 1*50 to 550 par acre. Afterwards thay filled tha holaa vith good humus aoil and vatered vail tha area three feat in perimeter around eaeh almicigo. Whan Diaaaldorff planted a nev ooffaa orchard, he could expect a harvest in tvo or thrao years. Some trees flowered three years after germination, but third or fourth year crops vara inevitably scanty and of poor quality. cans the fifth or sixth year. In most cases the first full harvest In tha interim between transplanting and fructification Dieseldorff vatched the young coffee buahas care­ fully. Ha fertilised them often to stimulate growth, particularly of the root system, and he employed precautionary measures to guard the health of the planta against diseases or insects. He also continued to top sad prune the plants periodically to force the development of lateral branches, although Guatemalan planters for many years con­ sidered this practice unnecessary and of doubtful value. Since the establishment of nev coffee groves vas a costly and time-consuming operation, Dieseldorff enlarged his coffee acreage slowly. To guarantee a supply of sturdy almfcigos, he started seme ^Chester Lloyd Jones, Guatemala. Past and Present (Minneapolis, 19^*0) • p. 205. —— — L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r ^ 160 four to ton thousand seedlings every year on eaoh of his plantations and annually sat out In permanent loeatlons several thousand saplings. Available statisties indleats that tha number of trees ha plantad varied graatly fron yaar to yaar. For exaaple, aaoh saason batvaan 190b and 1917 ha sat out an avaraga of thirtaan thousand trass on tha four plantations of Chajcar, 8aohaib| Pansal, and SI Salto, but tha annual figuras ranged fron lass than 2,500 to more than 30,00c.12 There vara several reasons for these fluctuations. To a great extant tha rate of expansion vas determined by tha amount of capital Dieseldorff had available for this purpose. Other factors vara tha number of healthy almiclgos ha had on hand and tha size of tracts pre­ pared to receive tha plants. Most importantly, hovevsr, vhen plan­ ning the expansion of a grove, Dieseldorff had to take into considera­ tion the number of vorkers he could count on having during the harvest season and the number of vehicles and animals for transport at his coamuuad. As production grev he had to have a larger labor force to pick the b-ans, and if he did not have enough hands, the crop might be lost. Similarly, if transport facilities vere inadequate to meet the demand, he could not move the crop from the fincas to Cobfin and then to Pancajchf for shipment abroad in time to meet consignment dates. Betveen 190b and 1917 Dieseldorff planted approximately ^Manuscript maps, dated 192b, of the coffee groves at Chajcar, Sechalb, Pansal, and El Salto, DS, "Varios" Box. The maps indicate the location of the coffee groves planted betveen 190b and 1923 on each of these fincas, and also the year the groves vere established, the number of trres set out, and the variety of cof­ fee planted. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 183,350 ooffaa traaa at Chajcar, Sechalb, Pansal, and n 8alto, and additional 67,500 at 8acol.*3 Tha graataat axpanalon vas at Chajcar, 8achalb, and Seool, During tha daoada fron 1905 to 1915 ha aat out 71,600 traaa at Chajcar and 61,600 at Sechalb, a total of 133,boo. Tha annual average vas 7,160 traaa at Chajcar and 6,180 at Saohalb, and at Saeol, for tha pariod 190b to 1917, it vas 6,731; however, Diaaaldorff did not plant traaa every yaar on aach of thasa planta* tions. At Chajcar he skipped tha years 1906, 1907, and 1913, and ha estaeiialM* the major groraa at Sechalb betveen 1908 and 1910. By 1919 there vara more than 270,000 trees in production on Chajcar, Sechalb, and Secol, excluding those on the very old groves established before 190b, and almost 200,000 on Dieseldorff*s other f i n c a s D u r i n g the tine that the Guatemalan government intervened Dieseldorff's properties, the administrator appointed by the govern­ ment, it appears, expanded cultivation very little. After Dieseldorff regained the land, he began to enlarge his groves increasingly every year. On the five fincas Chajcar, Sechalb, Secol, Pansal, and El Salto he set out about 9,850 alaicigos in 1920; 11,100 in 1921; 18,650 in 1922; and 33,100 in 1923.^ At CubllgGits, where there vere only 1^Manuscript nap, dated 192b, of the coffee groves at Secol, DS, "Varios" Box. The Secol map gives a total figure for the number of trees planted betveen 190b and 1917. It has annual statistics only for the years 1919 to 1923* ^General inventory of EPD's properties made by the IGdG, March 31, 1919, DS, "Varios" Box. ^Manuscript maps, dated 192b, of the coffee groves at Chajcar, Sechalb, Secol, Pansal, and El Salto, DS, "Varios" Box. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r ? 16 5,000 trees in 1919,^ he started a large number of seedlings and by 192U had land prepared for about 1*6,000 trees By 1930 Dieseldorff had a total of about twelve hundred aeres planted to coffee on all his fincas, with approximately 600,000 trees on the land.*-® In addition to expanding the slse of the coffee groves, Dieseldorff increased the yield per tree on his fincas by devoting special efforts to care and maintenance of the plants. To do this he had to learn about the technical and practical aspects of horticul­ ture and coffee cultivation and to apply this knowledge to the care of his orchards. At the time Dieseldorff came to Guatemala he knew little about agricultural science. Working at Miramar as a Volontair served as a rudimentary introduction to the practical side of coffee production. In the Alta Verapax he continued to learn by analyzing the approaches to cultivation of more practiced finqueros and study­ ing the experiments conducted by some. He further increased his knowledge by reading technical books on coffee culture and on general agriculture,^? and he evaluated his own experiences in light of this ^General inventory of EPD'a properties made by the IGdG, March 31, 1919, DS, NVarlosN Box. ^Manuscript map, dated 192b, of the coffee groves at Cubilg&itx, DS, "Varios Box. 1.8 Statistical reports submitted by EPD to local government officials, Letterbooks, Asuntos ante las autoridades," Ho. 1, pp. 738-7bO, 785-787* 985-986, 990, 992, 995, Ho. 2, p. 1, DC; Inven­ tories of Chajcar, Sechalb, Santa Cecilia, Raxpec, Raxahft, Chlquixjl, Cubilg&itz, Pansal, and El Salto (1930), DC. 19 There are a great many books on agriculture and coffee cultivation in the Dieseldorff library in Cobfn. They show signs of having been read and consulted often, and contain numerous underlined passages and marginal notes in Dieseldorff's hand. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r ^ 16 information. He elao hired agronoedsts to aaaiat and advise his. The aethoda Dieseldorff used to increase the yield of his cof­ fee treest although varied, vere in aost cases conventional.2° He did not Introduce any radical changes in planting techniques:, hut generally followed the methods employed by other planters, such as growing different varieties of coffee, pruning, fertilizing, and spraying* Yet Dieaeldorff differed fron the majority of finqueros in several respects that positively affected the success of his operation* Through his own efforts he had gained a greater technical knowledge of agriculture than aost others. Because he vas determined to become a major producer, he vas willing to invest time and money in the prac­ tice and application of the skills he had mastered to improve upon the cultivation methods used in the department for his own benefit. Dieseldorff, like other Germans in the Alta Verapaz, experi­ mented with coffee varieties in an attempt to develop trees that not only bore larger harvests but yielded a product of higher quality as veil. Prior to about 1890 planters in the department cultivated the Arabics variety almost exclusively and with excellent results. There vere a few Germans, nonetheless, who vere constantly trying to find better types, and during the 1880's they imported trees from different parts of the vorld. Among the varieties introduced vere Liberia and Java, which vere a complete disappointment, and Bourbon and Robusta, which vere moderately successful. A fifth variety, Maragogyp, however, 2°Guillermo VSSes Fale&n,”German Contributions to the Ecancadc Development of the Alta Vera Pas of Guatemala, l865-1900"(Unpublished M. A. Thesis, Tulane University, Hew Orleans, 19&1), pp. k8-6k, L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r ~l 164 proved to be aost profitable for the department. Maragogyp, discovered in Brasil in 1870 as a nutation of Arabics,21 vas brought to the Alta Verapas by W. A. Dieseldorff. In 1893 Richard Sapper made the first shipamnt of Maragogyp fron the department to London, vhere it sold for tventy shillings more per pound than the best CobCn Arabics. Almost immediately finqueros in the Verapas, among them Ervin Dieseldorff, began to plant Maragogyp vith great enthusiasm.22 The Maragogyp coffee grovn in the Alta Verapas vas distinctly different from the original Brasilian variety introduced by W. A. Dieseldorff. The first results had been unacceptable, because the beans that the trees produced, although unusually large, vere shriv­ elled and ugly in appearance. Later Richard Sapper discovered that cross-pollination of Maragogyp vith Arabics changed the fruit com­ pletely. He vas able to stabilise the variant and obtain hybrid seeds that developed into trees bearing a product that combined the best characteristics of both varieties. This hybrid met vith videspread acceptance in the department. The trees bore good harvests and vere more vigorous and disease resistant than Arabica. The beans vere smaller than those of the Brasilian Maragogyp, but they had the shape and appearance of Arabica and a flavor and aroma more closely com­ parable to that of the latter variety.23 21International Institute of Agriculture, pp. 1*6— 22Ibid., pp. 52-5^; Adrian RSsch, Allerlci aus der Alta Verapas. Bllder aus dem deutschen Leben in Guatemala. 1&S&-1930 (Stuttgart, 193*0, pp. *7-50. 23 Dieseldorff, Per Kaffeebaum. pp. 5-6. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Maragogyp became an important nev coffee variety for the Alta Verapaz. The coffee sold veil in the London and German markets, becanse the beans vere beautifully formed and almost tvice the size of Arabica beans* Although the coffee lacked the exquisite flavor and aroaa of Arabica, its appearance and quality vere good enough to varrant a continued narket denand* For about a decade the price of Maragogyp remained high, but aftervards it leveled off to par vith Arabica* In the 1920’s the demand for Maragogyp began to decline, and by the 1930*s it vas belov that for Arabics.2^ As a result of the sudden enthusiasm for Maragogyp, many finqueros began to plant that variety to the exclusion of Arabica. Dieseldorff, recognizing the shortcomings of the nev coffee, be­ lieved that Maragogyp vas perhaps somewhat of a novelty and the extraordinary demand for it vould possibly be of short duration* He devoted a considerable amount of acreage to it but did not neglect Arabica* For example, of the 71,600 coffee trees he planted at Chajcar betveen 1905 and 1915, ^8.9 % (35,000 trees) vere Maragogyp, and of the 61,800 at Sechalb, 38.U % (23,750 trees). After 1919 Dieseldorff began to plant Arabica almost exclu­ sively on his highland fincas and Maragogyp mainly at lover altitudes. Betveen 1919 and 1923 he set out no Maragogyp trees at either Chajcar, Sechalb, or Secol, but he expanded the Maragogyp groves at El Salto ^Letter: EPD, Cob&n, to Fredk Moller Sohne, Bremen, August 10, 1937, Letterbook, "Moller Sohne," p* 501, DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r and Cubllg&its**^ Dieseldorff based this decision on data collected fro* experiments and observations Bade over a period of tvo decades, cultivating the tvo varieties at different altitudes. Before 1915 he planted both varieties at Secac (six to seven thousand feet above sea level), Chajcar and Sechalb (four to five thousand feet), Secol and Pansal (three thousand feet), £1 Salto (tvo thousand feet), and CubilgGitz (fifteen hundred feet). He learned that in areas higher than six thousand feet the coffee cherries of both varieties fell off before ripening, because the climate vas too cold. Arabica, he came to realize, produced highest quality harvests at altitudes of three to six thousand feet, vhere top grade coffees grew, but Maragogyp sometimes did not thrive veil in the chill climate of these regions. On the other hand, at varmer altitudes of fifteen hundred to three thousand feet, Maragogyp trees bore spectacularly. Although coffees grown at lover levels vere of mediocre quality, the size of the harvest compensated for this. CubilgQitz and £1 Salto. He also cultivated some Arabica at The trees there yielded large harvests, but of course the quality of the beans vas not up to the level of those grown at higher altitudes. In the highlands the size of the harvest fluctuated greatly from year to year as a result of the cold climate. ^Manuscript maps, dated 192b, of the coffee groves at Chajcar, Sechalb, Secol, CubilgHitz, and El Salto, D6, "Varios" Box; Letter: EPD, CobSn, to President Jorge Ubico, Guatemala, June 30, 1931, Letterbook, "Asuntos ante las autoridades," Ho. 2, pp. 39b-395, DC. a /T _ Letter: EPD, Cobfin, to Max Krings, Secac, June lb, 1901, Letterbook, "Fincas," Ho. 1, pp. 88-89, DC; Letter: Paul 0. Mittelstadt, CCob&nl, to D. B. Hodgsdon, Guatemala, June 2b, 1919, Letterbook, "iGdG," p. 106, DC, W I Int. Pap. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. -J r The large amounts produced In the lover regions, vhlle admittedly of a poorer grade, gave same measure of protection against total eco­ nomic loss when the highland crops vere small* Dieseldorff also made further improvements on the quality of Maragogyp coffee by grafting the Maragogyp hybrid onto Arabica plants and starting seedlings from the beans produced* The nev trees had more of the robust qualities cf Maragogyp and bore veil* The beans vere slightly smaller than those of Maragogyp, but their appearance, flavor, and aroaut vere considerably better* In addition to planting Arabica and Maragogyp Dieseldorff also attempted to cultivate other varieties. Through agents in Europe he imported seeds from coffees grown in different regions of the world, but in most cases the results he obtained fell short of his expecta­ tions. Java and Liberia fared poorly in the rainy Verapaz, he dis­ covered,2^ reinforcing the conclusions reached by other Germans in the l880's. On some fincas he planted Bourbon, but cultivation of this variety did not become widespread during his lifetime. Once a grove vas laid out Dieseldorff knew that careful main­ tenance of the coffee trees vas necessary to protect his investment* He had to take steps to safeguard the health of the trees in order to ^Letter: Julius Jacquet, CDieseldorff's Prdkurist, Cobin!, to EFD, Cin Europe!, August 17» 1900, Letterbook, "Varias Cartas," Ho. 3, pp. 306-311, DC. 28 Letter: EFD, Coban, to the Nederlandsche Hande1-Mastschappij, Amsterdam, January 28, 1928, Letterbook, "Varios Asuntos," Ho. 10, p. 7, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r fP 16 assure proper development and maximum productivity for as long a period as possible. Besides the usual measures, such as clearing the ground of weeds snd harrowing, the basic requirements were fertilis­ ing, combatting diseases, and pruning. Annual pruning after the harvest was a vital part of coffee cultivation. The coffee plant is by nature a tree, but pruning and topping force it to become a bush. Left uncut, a coffee tree can reach a height of fifteen or more feet, but under these circumstances the wood absorbs the strength and nourishment, and the plant conse­ quently yields small, sporadic harvests. The purpose of pruning and topping is to control the sise of the tree and to induce formation of the coffee-bearing secondary (or lateral) branches* Dieseldorff maintained his trees at a level of seven or eight feet, because he believed that at this height the fruit received the maximum amount of nourishment. cherries an smaller bushes. It was also easier to harvest the Since the trees produced berries only on seccnd year growth, Dieseldorff believed that by judicious pruning of old wood, which had already borne a crop, the entire tree could be rejuvenated every four years. Cuts had to be made on green wood for the branch to form fresh shoots; brown or hard wood did not develop new growth. In addition to removing older branches, pruning consisted of a general Manning out of unnecessary boughs by removal of dead or diseased wood, of all tertiary branches4 and of any limbs growing towards the center of the tree, across other branches, or into the rows between trees. This thinning permitted better ventilation of the tree. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 16? Pruned trees developed a robust and bard body and produced bigger, more regular sised harvests, vith large fruit of higher qual­ ity. Improper pruning, however, could seriously injure the tree. For example, in the cold climates, wife .e secondary branches grew very slowly, removal of too much wood could permanently damage the tree or reduce the size of the crop for tvo or three years. Further­ more , plant diseases could infect carelessly made cuts and weaken or destroy the tree. For tbfisereasom Dieseldorff and his agronomists personally supervised the work of pruning. Dieseldorff conceived an efficient, systematic approach to pruning. He divided the work gangs into groups of five. Over every two or three units he appointed a trusted and experienced Indian to direct the vork, while he or one of his employees supervised the en­ tire operation. Each person in the five-man group vas assigned a specific task in order to obtain optimum results from available hands and to make certain that no tree vas missed and no step in the prun­ ing process vas skipped. One worker cut off the top of the trunk, or primary branch, to the desired height with a newly sharpened machete. A second, using a small, pointed handsaw, removed unwanted branches from the trunk according to Instructions from the superintendents. The third man manually removed tiny shoots growing at the bottom of the trunk to facilitate penetration of air and vater to the soil, and from secondary limbs, twigs that developed too near the main branch. Using large shears, the fourth laborer carefully clipped the lateral branches on all sides of the tree to a length of approximately twentyfour inches from the primary, while the fifth topped the tree to an even height. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r Dieseldorff fimly believed that in addition to using proper techniques, the time chosen for pruning, in relation to the phase of the noon, to a large degree determined the sise and quality of the following crop, Isasedlately after the harvest the sap in the coffee trees ceased to circulate for a short period of tine. In dry elinates it returned to the roots, but in vet regions, such as the Verapas, a great deal renained in the branches and foliage. In the tropical highlands of the departnent there vas scarcely any eliaatic differ­ ence betveen seasons vith the result, according to Dieseldorff, that the coffee trees vere never truly dormant, From his reading or ex­ perience he concluded that the vaxing of the noon caused the sap to run again. Pruning during this phase caused a significant loss of sap, particularly through the larger vounds. Thus, he alvays pruned when the noon vas vaning, preferably during the last quarter, and he emphatically ordered the finca administrators to apportion sufficient workers to complete the Job during the brief tine he considered op­ portune,^ In addition to annual pruning Dieseldorff practiced severe pruning to rejuvenate old trees that had ceased to yield satisfac­ tory crops. The average production life of the coffee tree vas fifteen years. It vas uneconomical to replace the old trees vith nev ones, vhich would not bear fruit for four or five years. By severe ^Dieseldorff. Per Kaffeebaum. pp. 11-lU; Letter: EPD, Cobfin, to Max Krings, Chajcar, May' 3, 1901, Letterbook, "Fincas," Ho. 1, p. U3, DC; Letter: EPD, Cob&i, to Manuel Conlledo, Pansal, February 1, 1902, Letterbook, Fincas," Ho. 1, pp. 29fc-295» DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r ? 17 pruning an old traa could be made comamrcially productlvo one* again In tvo years, and the bearing Ufa vas extended another eight or ten years* The process, vhich Dieseldorff learned at Miramar, vas rela­ tively staple. Under his direction the fines laborers vith Machetes cut off old trees as smoothly as possible about one foot above ground level. They then stripped off all the old bark fron the trunk, pulled up the veeds around it, and renoved the dirt surrounding the trunk and roots and replaced it vith fresh soil* Within a year the trunk sprouted four to ten nev shoots, of vhich the three or four strongest vere saved and the others cut off*The regaining shoots grev rapidly and bore fruit the next year*3° Equally as important as pruning vas the fertilising of the coffee orchards. Coffee trees in production quickly exhausted the soil, and it vas necessary to restore the depleted elements in order to prolong the bearing life of the trees* If left unattended, the trees vere not only less resistantto disease but yielded small crops that matured too quickly so that the fruit vas underdeveloped and be­ low standard* Such beans vere easy to recognise and had little market value.31 Furthermore, trees that did not receive sufficient amounts of the required nutrients began to decay prematurely towards the seventh to tenth year* The basic minerals coffee trees needed vere nitrogen, potash, 3°EFD to his mother. Letter #20, Part II, February 9, 1889, DC. ^Letter: EPD, Cobin,to VCictorl Wellman, Flnca Slguanhi, February 8, 1928, Letterbook, "Varios Asuntos," Ho. 10, p* 38, DC* L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 1721 phosphoric Mid, and 11m . The relative lnMcessibillty of Ma y of Dieseldorff'■ flneM aade analysis of soil samples from different orohards expensive end impracticable. Dieseldorff, therefore, learned to reoognlse soil defieienoles by examining the trees. When nitrogen vas laeking, the trees failed to develop sufficient foliage and the leaves turned a yellowish oolor. If potash vas missing, little fruit fosmed on the braaohes, and In the absence of phosphorlo Mid the else of the besns vas very small. The presence of any of these char- Mteristlcs indicated a serious mineral deficiency, and a considerable amount of time and effort vas required to revitalise the soil. Trees that vere In especially poor condition needed tvo or three years of intensive cultivation before production again reMhed full capMity. For this reMon Dieseldorff fertilised his groves at least once a year to avert soil depletion and its consequences. Dieseldorff mainly used organic fertilisers and minerals from substMces easily available in the Verapas. To reduce costs and to Insure an adequate supply of the necessary materials he devised means of producing fertilisers on the Individual coffee fincas. Since the urine and manure of horses and oattle vere splendid isources of nitro­ gen, and the excreMnt of chickens u d other fowl vas rich in phos­ phorus, he raised these animals on his plantations. He confined them to a small area and plMed straw or corn husks in the stables In order to fMilltate collection. Near the groves he had constructed giant compost piles vhere he combined the animal VMtes and urine-impreg­ nated straw vith coffee pulp and parchment, healthy leaves from pruned branches, banana leaves, and other organic matter* He also used L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r uU chaluma for shade trees since these accumulated nitrogen in the soil, and an additional source of phosphorus was finely ground bone meal from carcasses of animals that were slaughtered or had died. In the Cantoloc area of Cubllgtlitz he discovered a certain sand with a high potash content and mined large amounts for use on the fincas. ashes ware another valuable supply of potaBh. Wood He obtained lime by burning dolomite, marl, gypsum, or limestone, one of which was gener­ ally found on the plantations. From time to time Dieseldorff also used chemical fertilizers to supplement the organic ones when ho lacked a sufficient amount of the latter. As early as 1890 German planters in the Alta Verapaz had begun Importing artificial fertilizers from Europe, because as the existing groves became older and required more nutrients and as the coffee acreage increased, the demand for organic fertilizers exceeded the supply. situation. By about 1900 Dieseldorff found himself in a similar He faced the problem by redoubling efforts to increase production of organic fertilizer on the plantations, especially in places where he raised cattle, horses, and draft animals. He pur­ chased chemical fertilizers only when absolutely necessary. In combination the two types of fertilizer worked well, but the expense of buying and shipping the artificial fertilizer was out of pro­ portion to the results obtained. During years when coffee prices were low such imports were particularly uneconomical since the cost cut deeply into the margin of profit. Equally important, chemical fertilizers, used alone, were only partially successful so that planters had to use them in conjunction with organic matter in order L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 174I to benefit the trees fully. Oustsv Helmrich, a German planter In the Alta Verapaz vho for many years had conducted experiments using vari­ ous types of fertilisers, advocated a 5-26-21* combination (5 % nitro­ gen, 26 % phosphoric acid, 2U % potash) mixed vith organic materials. Dieseldorff proferred a 7-18-25 fertiliser that he purchased from H. & K, Albert chemical factory in Biebrich am Hhein for tvonty-fivc Maries per thousand kilograms (about 2,205 pounds), plus Bhippinp, costs.32 By examining the trees and the soil in each orchard, Dieseldorff or his assistants determined the amount of fertilizer needed and the correct proportions of ingredients. A skilled eye could discover minor deficiencies before they became a serious threat, and from studying the experiments of Gustav Helmrich and from his own experiments, Dieseldorff knev that coffee trees in production always needed large amounts of phosphoric acid and potash. Trees planted on mountain slopes, where rain washed some of the soil away, generally required more fertilizer than those in valleys. Where the soil was heavy the best results vere obtained by one large treatment, but in lighter soil several small applications vere more effective. The work of fertilizing the trees was carried on after the end of the harvest, when the sap had ceased to circulate, usually im­ mediately after pruning. Under Dieseldorff's direction the workers ^Dieseldorff, Per Kaffeebaum. pp. 20-21*; N&2ez FalcSn, pp. 55-57; Gustav Helmrich, Kaffee-Dflngungsvcrsuche in Guatemala (Berlin, 1901); Gustav Helmrich, Versuche•fiber die Verwendung Kunstdunger in der Kultur des Kaffees (Berlin, 1908). L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r nixed the decayed natter fron the ccnpoet heaps vith bone meal, potash sand| wood ashes, and line in the proportions he indloated* The groves vere weeded and hoed, and the fertiliser vas sprinkled over the soil out to the spread of the widest branches* The laborers then worked the fertiliser into the soil to a depth of six to eight inches, taking care not to daaage the root hairs of the plant* After appli­ cation the trees vere watered deeply. Closely related to the naintenanee of soil fertility was the problem of coabatting coffee diseases and Insect pests that vere prevalent in the department* As in other organisms and plants, there is in coffee a correlation betveen the health of the tree and its re­ sistance to disease. F. a* Kohl, a German agricultural scientist working in the Alta Verapas, after numerous controlled studies con­ cluded that healthy, well-nourished trees vere better able to survive fungus or insect attacks, but that the finquero also had to take measures to destroy any pernicious invader before it spread and reached epidemic proportions*33 By fertilizing his coffee groves Dieseldorff maintained the trees in good condition* He realized, how­ ever, that constant vigilance vas necessary, because there vas alvsys the danger of a plague's developing suddenly. He ordered his in­ spectors and administrators to check the trees often for early signs of infestation and to take inmediate action if they found any* 33p, g . Kohl. Gutachten fiber die von Stllbolla flavida hervorgerufene Kaffcokrankhaitrnlt Adddben dar aua•den'Untersuchuneen slch erxebenden maareftoin acken dieses PiitepldenitTTBeriin, woe). L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 171T) Tha Boat dangerous threat to coffee trees v u Stllballa flavida (or atllbum flavldum. oalled 6.10 di O l i o In Guatemala), a paraaltio fungus that vas andante In tha Alta Varapas on aeoount of tho vary vat cllasta. Tha disaasa attackad tha fruit, branches, and laavaa of tha plant, and it eausad such savara dafollatlon that tha tree vas greatly veakenad and produetion decreased sharply. What berries developed vara generally ruined. In extreme eases, particu­ larly vhen tha tree lacked tha strength to vithatand an attack, tha fungus could prove fatal. Trees that survived required tvo or three years of intensive care to recover. OJo da gallo, if not stopped lsanediataly, rapidly infected entire groves. It appeared aainly during the rainy nonths, vhich in the Verapas could be almost any tine of the year, and formed tiny, perfectly round vhite spots about one eighth of an inch in diameter. In the center vas a minute, yellovish dot containing hundreds of spores that matured in about fifteen days, and bursting forth vere carried to all parts of the plantation by vind, rain, animals, and people, spreading the fungus to uncontaminated areas. In many parts of Guatemala finqueros ignored the disease and assumed the attitude that it vas not a menace since it usually disappeared during the dry season and the trees, being accustomed to it, they said, vould soaeQ]i hcnr survive.'' Dieseldorff recognised that Stllbella flavida posed a serious ^Alvarado, Vol. I, pp. 225-231*. According to Alvarado this attitude vas unfortunately still prevalent in the 1930's when he vas vrltlng. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 17?1 threat to his investment and fought to eradleato it, using extreme measures when necessary. In tha early 1090's, when he vas still rela­ tively Inexperienced, the fungus completely blighted one of bis largest groves at SeactC, and to protect other orchards he stade the difficult decision to cut down and burn all the trees, because the fungus vas too advanced to stop in any other vay.^ not go unheeded. The lesson did Thereafter, he examined all the plants vith great care, and vhen ever he found any telltale flecks, he cut off and burned the Infected branches to prevent further propagation of the disease. Pruning vas the simplest method of fighting ojo de gallo, but when this proved to be insufficient, Dieseldorff used Bordeaux mix­ ture as a fungicide spray on the trees. The mixture vas made by dissolving copper sulfate and lime in hot vater to form a neutral or slightly alkaline solution. To make the application Dieseldorff imported special machines manufactured by G. Allveiler, a firm in Baden The sprayers vere ideal for use in the Alta Verapaz since they vere compact and portable, and the laborers could easily cany them through the groves. There vere disadvantages to combatting ojo de gallo vith a ^Dieseldorff, Per Kaffeebaum. pp. 8-9. ^Letter: XPD,CCobSnl, to Dr. L. 0. Howard, Washington, D. C., July 2, 1090, Letterbook, "Varies Cartas," Ho. 1, pp. 37-30, DC; Record book, "Inventarios," 1927-1931, p. 35, DC. At the request of several plantation owners in the Alta Verapaz, the President of Guatemala in 1098 authorized the duty-free import of ten thousand pounds of copper sulfate and thirty-six sprayers, to be used to coabat ojo de gallo. Leyes de Guatemala. Vol. XVI, p. 66$. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r fungicide spray. The Bordeaux mixture was dangerous to fane animals, and it killed some insects that vere Beneficial to the coffee trees. Moreover, the solution vas fairly expensive, Because the copper sulfate had to Be inported frost Europe. Further compounding the cost vas the relative inefficacy of spraying since the frequent rains of the Alta Verapas often vashed off the chemical Before it had destroyed the fungus. Despite the shortcomings of pruning and spraying as means of preventing the spread of StilBella flavida. Dieseldorff continued to employ these methods, But he also experimented vith different cultiva­ tion techniques to devise means of eliminating conditions that fostered the appearance of the disease. He studied the causes of the fungus and sent samples of infected leaves to agricultural experts in Europe and the United States, seeking their opinions and advice.^ Ojo de gallo, he found, developed under extremely humid conditions, and closely planted, heavily shaded groves provided a perfect Breed­ ing medium. Proper ventilation, on the other hand, helped to prevent the fungus from originating. Dieseldorff thus Began to change his system of laying out groves in order to promote penetration of air and sun. Nev areas selected had to have proper drainage, natural or man-made, and the distance Betveen trees and rovs vas also important. On the orchard ^Letter: EPD, CCobin], to Dr. L. 0. Hovard, Washington, D. C., July 2, 1898, Letterbook, "Varies Cartas,” Ho. 1, pp. 37-38, DC; Letters: EPD,CCobin], to Walter T. Svingle, London, August 8, and September 1, 1898, Letterbook, "Varies Cartas," Ho. 1, pp. lw-lh6, 206, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r that he had been forced to destroy the trees had been set six feet apart sad the rows vere nine feet vide. The plants had grown together so thickly that they completely blocked the rays of the sen and pre­ vented air circulation. He began to plant trees at intervals of at least nine feet and increased the vi.au. of vue rovs to tvelve feet. He laid oat nev fields from east to vest to permit the sun to hit the cleared rovs and varm the soil. By thinning out unproductive boughs and tvigs Dieseldorff facilitated air penetration into the trees, and he further improved ventilation by regulating the density of the shade trees. In the long run these changes proved to be the most permanent and effective means of combatting the fungus. 38 There vere also insect pests that caused much damage in the coffee groves. At the height of the coffee harvest, around December or January, plagues of mealybugs (PsuedococcuB citri) sometimes ap­ peared. These scale insects sucked the Juices of the plant, greatly veakening it and causing extensive defoliation. Under these circum­ stances the coffee beans failed to mature, and the majority dropped off before ripening. As in the case of ojo de gallo, Dieseldorff consulted experts about the most effective means of eradicating the insects. Insecti­ cide sprays, he learned, vere impractical to use on a large scale, be­ cause the hard shell of the mealybugs provided a natural protection against almost any solution, and repeated applications, using high ^^Dieseldorff, Per Kaffeebaum. pp. 8-11. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 18? pressure, vere necessary to kill then. A contact In Washington, D. C., advised him that the most lasting and least expensive manner of combatting the insects vas to cultivate their natural enemies, the ladybird beetles (Cryptolaemos montrousleri). Dieseldorff therefore imported beetle specimens from Washington, but they failed to propa­ gate and died. Subsequently, he ordered others from firms in California and Hawaii, and vith these he succeeded in establishing colonies on his plantations.3? Another insect that attacked the coffee trees vas the coffee fly (Cemiostoma coffeellum), a tiny vhite mite that bored into the coffee leaf and consumed the parenchyma cells. Ita presence vas recognized by the appearance of irregularly shaped brown spots, like flecks of rust (called mancha de hierro in Guatemala), on the leaves. The flies vere particularly attracted to tender, young trees, and they could easily destroy entire nurseries of saplings. Dieseldorff, at first, fought the pest in the same manner as other finqueros in the department, by spraying the trees vith a weak solution of quick­ lime mixed vith clayed brown sugar (panela) to make it adhere to the |lQ leaves. In later years he found that a much simpler method vas to place a brilliant acetylene lamp in the groves on a dark night, and directly beneath it a tub filled vith a mixture of oil and vater. ^Ibld.: Letters: EPD, CCobSnl, to Dr. L. 0. Howard, Washing­ ton, D. C., July 2, and September 1, 1898, Letterbook, "Varies Cartas," Ho. 1, pp. 37-38, 209-210, DC. ^^Letters: EPD,CCob&n], to Benvenuto L5pez, Seacte, July 10 and 18, 1901, Letterbook, "Fincas," Ho. 1, pp. 123-126, 130-131, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r The light attracted the coffee flies and blinded bhem, and they dropped into the Teasel and perished. The lanterns used for this purpose vere nanufaetured by the Oberrheinischen Metaliverhe in Mannheim.1*1 From tine to tine there vere other insects and fungus diseases that invaded the coffee groves. These included ants, aphids, plant lice, leaf beetles, black spot, and various leaf blights. Although these perhaps did not appear as frequently as the ones discussed above, Dieseldorff recognized that they posed a threat to his trees. If they vere allowed to multiply, they vould destroy the tree or sap its strength, thereby reducing the size of the crop and damaging the fruit. Dieseldorff rejected the philosophy of allowing an infests^ tion to "run its course," to vhich some planters adhered. Rather he kept a watchful eye and fought vigorously to eradicate the enemies of his coffee trees. In addition to expanding coffee production on the plantations, Dieseldorff increased coffee exports by purchasing pulp and partially prepared coffee frost small producers, processing it for market, and shipping it along vith his own. More than one third of the coffee that he sold abroad vas not grown on his plantations but vas obtained Uo through purchases from various sources. The business of coffee ^Dieseldorff, Per Kaffeebaum. pp. 10-11. ^Statistical chart submitted by Paul 0. MittelstSdt, Cobin, to the Departamento de Contabilidad,CIGdG, Guatemala!, February 16, 1920, Letterbook, "iGdG," p. 28fc, DC, Wtf I Int. Pap. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J isFI r buying vas widespread in the Alta Verapaz, because there vere many plantation owners— ladinos and foreigners— whose annual production vas insufficient to varraat acquisition of the expensive equipment and facilities necessary for complete preparation of the beans. These small producers lacked coostercial ties vith inporters abroad, and vere unable to market their coffee themselves, their crops locally. by necessity, they sold Also, the majority of Indian landowners in the department, particularly in the area north and east of San Pedro Carch&, planted trees on their properties and sold the coffee to sup* plement their incomes. Coffee buying involved a certain amount of risk. The buyers contracted to purchase future crops at a stipulated price. Usually they made a monetary advance in order to secure an agreement, and to deter the seller from breaking his vord if he received a better offer. In the agricultural market buying futures is always a gamble. Vith coffee, vhose market price some years fluctuated tremendously, it could be either a disaster or a bonanza. By purchasing, processing, and shipping unvorked coffee an ex* porter could substantially increase the amount of coffee he had to market. The cautious buyer, in order to make a profit, had to antici­ pate the status of the market and his overhead costs, and to gauge the prices he paid accordingly. If the price was overly inflated, his profit margin vas reduced, and it vas preferable not to buy than to pay such rates* The person who bought carefully could generally ex* pect to make money, for skillful preparation of the beans greatly in­ creased their value. As Dieseldorff commented, "The coffee from this L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r ml district is really a 1st class article . . . if properly treated. As fancy coffees alvays command high rates, I am sanguine about the suecess Cof my coffee buying business! Competition vas keen for the coffee available for purchase. Buyers fell into tvo categories. Some, such as Dieseldorff, vere owners of extensive plantations who sought to augment their own pro­ duction. They generally dominated buying in the areas around their fincas, and regarded the territory as a private preserve, jealously guarding it against the intrusion of rival buyers. The reason for this, aside from a natural desire to make money, vas that coffee beans produced in a confined region at the same altitude all tended to be of more or less the same quality. The planter could blend the bought coffee vith that produced on his own land and market the entire amount under his trademark. Other operators possessed little or no land and vere strictly in the business of buying and marketing. They vere in many cases fly-by-night speculators, attracted by the possibility of making a quick profit, vho descended on the department in droves, especially when market prices vire high. At such times, they frequently made injudicious oirers bo producers, possibly because they lacked business acumen and training, but most likely because they vere forced to act more audaciously in order to compete successfully vith the established landowners. Bidding by speculators often caused rates in the ^Letter: EFD, CCoban3, to P. Leckie & Co., London, July lit, 1898, Letterbook, "Varies Cartas," Ho. 1, pp. 79-81, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r departsent to soar, but many of these men vent bankrupt within a short period of time* If they failed to realise a profit, they had no other product on which to fall back to make up the loss* Most lacked the capital to operate on a large-ffcale, and the great finqueros tended to monopolize the business in practically all sec­ tions of the department* Dieseldorff vas one of the major coffee buyers in the Alta Verapaz. As early as 189U he vas purchasing odd lots of coffee at . kk his fines Santa Margarita in Coban, but for the first few years the business vas small and restricted to the area around the town* Recognizing the tremendous profit potential of coffee buying, he formulated plans to extend his activities into other regions. In 1698 he began to put his scheme into effect and started vying aggres­ sively vith his competitors. This vas possible because that year he received from Haller, Sohle & Co* of Hamburg and RSsing Bros, of London the advance credit he needed to buy futures. Besides having a substantial amount of vorking capital, there vere other factors in his favor. By 1898 he owned several properties located strategically in the major coffee producing sectioos of the department that he could use as bases of operation to penetrate into the more isolated areas to reach prospective clients. The social mores of the department demanded that business be conducted on a per­ sonal basis, and some delicate preliminaries vere required to complete a transaction. It vas essential that the purchaser establish rapport Polochic (Cob&n, AV, Guatemala), ASo 1, Nos. 26 and 37, October 7, 189*1, and January 13, 189$. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r vith the vendor, particularly if the latter vas a Guatemalan, and to gain his confidence and reapect hy chatting leisurely and listening sympathetically before talking business* the Verapas for almost a decade* Dieseldorff had lived in During that time he had become acquainted vith many of the department's residents and vas no longer regarded as a strange outsider. He had learned the customs and busi­ ness practices of the people, and had cultivated the art of handling them vith finesse. He had also mastered the Spanish and Kekchf languages and could converse freely in both. Thus he vas able not only to deal directly vith sellers, but to approach them in the cor­ rect manner as veil. From the inception of his buying operations Dieseldorff established price policies from vhich he did not deviate. He vas in business to make a profit, and in determining the ceiling amount he could pay, he allowed himself sufficient margin to cover all costs, including processing, bagging, shipping, and sales comissions. Dur­ ing his first fev years he sometimes offered amounts slightly higher than he deemed advisable, but he did this, he explained, "In order to secure as many regular clients as possible."^ He realized the folly of buying coffee at any price, however high it might be, simply to outbid his rivals, "it is the height of impudence," he wrote acri­ moniously, "that these newcomers Cthe short-lived firm of Frese & JacquetH think they can dictate the prices ve pay. . . . They vill ^Letter: EPD, Cobfn, to Manuel Ccnlledo, Panzal, August 30, 1901, Letterbook, "Fincas," Ho. 1, pp. 170-1?1, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r l«tn their lesson at their own cost* When the current rates reached too high a level, he ordered buying suspended, rather than risk taking a loss.^ In Cobin Dieseldorff personally handled purchasing agreements. He contacted potential clients outside the vicinity of the town by correspondence if he vas unable to see them himself, or through agents, vhom he employed to buy coffee for him on a coasdssion basis. These hired buyers received instructions directly from Dieseldorff end had to adhere strictly to the price limits he set. The finca administrators also assisted Dieseldorff in buying coffee produced around the plantations. The various methods Dieseldorff employed to purchase coffee vere conventional, for the system had already evolved long before he commenced operations, nevertheless he differed from most other buyers in the emphasis he placed on price and quality, and this provides a further clue to the reasons for his success. Dieseldorff purchased tvo forms of coffee: fee) and pergamino (parchment coffee). niques for each type vere different* cereza (pulp cof­ The sources and buying tech­ He generally acquired the un- vorked coffee in small quantities of one to three hundred pounds from Indians or from owners of very tiny plantations. The partially ^Letter: EPD, Cobin, to Manuel Conlledo, Panzal, January 12, 1902, Letterbook, "Fincas," Ho. 1, pp. 298-261, DC. ^Letter: EPD, Cobin, to 6. Schaart, Cbajuch, March 21, 1901, Letterbook, "Fincas," Ho. 1, p. 9, DC; Letter: EPD, Cobin, to Manuel Conlledo, Panzal, March 23, 1901, Letterbook, "Fincas," Ho. 1, PP. 7-9, DC; Letter: Paul 0. Mittelstidt, CCobinl, to CD. B. Hodgsdonl, Guatemala, October 30, 1919, Letterbook, "iGdG," p. 193, DC, WW I Int. Pap. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J 107) r treated parchment ba bought from small produoars, foraign and ladlno. Occasionally ha obtained it froei an Indian consunity vhoaa raaldanta had pooled thalr raaouroaa to acquire procaaalng aqulpaent. Although either pergamino or oereaa vae desirable, Dieseldorff preferred the kfi latter, and the greater part of the coffee he purchased vas in the pulp. There vere distinct advantages, Dieseldorff believed, to buy­ ing pulp coffee. It vaa cheaper than parchaent, for despite a seventy-five percent veight loss In processing and drying, its price vas one-fifth or leas that of pergaalno. This slight difference In cost vas significant vhen large amounts vere involved. The offal froa ceresa vas, furthermore, valuable for use in the compost piles that he maintained. The devaluation of the Guatemalan peso, vhich vas on par vith the dollar in 1890 but by 1930 vaa vorth only a cent and one half in United States currency, made pulp coffee even leas expensive since Dieseldorff usually purchased it vith paper currency. Persons selling pergamino, on the other hand, generally demanded at least partial payment in gold or silver. Most important, however, since the pre­ liminary steps in preparing the beans vere crucial in determining the quality of the final product, Dieseldorff could make certain that the operation vas carried out according to his standards. Other finqueros, he found, vere not as careful as he, and often the pergamino coffee **®Letters: EPD, CCobfnl, to Josl Ma. 8ierra Molina, Doaiingo Pas, Pablo Ligorrla, Melecio Reyes, Francisco Lima, Abraham Prera, Daniel Ponce, David Sierra P., and Manuel de Jesfis Sierra, all in Cobfin, October 22, 1898, Letterbook, "Varies Cartas," Ho. 1, pp. 302, 30k, 307, 308, 309, 310, 311, 312, 313, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r delivered to him v u improperly prepared. Dieseldorff purohMOd carets coffaa chiefly in tha araa north and aaat of 8an Pedro Carchi. He obtained approximately one-third around the flneaa of Santa Cecilia, Chajcar, and Secol, vhere there vere many plantations and enelaves of Indian landovners as well. Here campetitioo from other finqueros and itinerant buyers vas particularly strong, because most places vere situated on or near cart roads or mule tracks, vhich made them accessible and facilitated the transport of coffee. Rivalry forced prices up in these regions, and buyers had to use considerable diplomacy and skill in negotiating vith vendors. The height of the buying season v&s luring the period from July to October, prior to the harvest. At thia time rates tended to be lover, it seems, because producers needed money and vere eager to sell future crops to obtain cash. After November prices usually rose steadily. From the fincas Dieseldorff and his agents vent out and ap­ proached Indians and small producers seeking to buy their coffee. They offered cash advances (called hsbilltaciones)^ that each recipi­ ent (the habilitado) vould cover sometime hetaeam Hmwmhsr and April vith a stipulated number of pounds of coffee, vhich Dieseldorff vould buy at a rate agreed upon. To assure prompt delivery Dieseldorff sent mules from the fincas to pick up the c o f f e e . B y examining the kg A cash advance made in exchange for a vork cosaitment vas also called an habilltaelon. ^°Letter: EPD, Cobfn, to Gerard Schaart, Chajuch, April 2, 1901, Letterbook, "Fincas," Ho. 1, p. 12, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r tress, Dieseldorff could estimate the else end quality of the crop end determine hov much money to adrance• Re paid higher prices to persons who sold their entire crop to him.^ Since the quantities of coffee vere small, the individual advances vere not large, seldom more than $ 50., and Dieseldorff charged no interest. The contracts vere sometimes oral, hut if they vere written, they vere seldom notarised.^ It vas not always necessary to approach people, for they often came to the finca themselves to request advances. Agents working for Dieseldorff received a commission of fifty centavos for each quintal (one hundred pounds) of ceresa that they bought.^3 At times, because of poor harvests or for other reasons, the habilitados vere unable to deliver the required amount of coffee. such cases the debt vas carried on to the following year. In Often it vas increased by additional advances, but Dieseldorff vould not give more money than he believed the person could cover. When he had rea­ son to think that an habilitado vas trying to defraud him, by selling his coffee elaevhere for example, he brought suit against him in the local courts. Government officials on numerous occasions ordered that coffee be delivered to him, and they allowed Dieseldorff to send observers during the harvest season to make certain that the •^Letters EPD,CCob(n3, to Manuel Conlledo, Panzal, November k, 1901, Letterbook, "Fincas," Ho. 1, p. 22k, DC. ^Agreement betveen EFD and Santiago Choc (July lk, 1909), D6, Secol Box} Interviews vith don Arturo Morales de la Crus and don Manuel Burmester. ■''^Letter: EPD, CCobCnl, to Manuel Conlledo, Panzal, November Cll?, 1901, Letterbook, "Fincas," No. 1, pp. 220-222, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r habilltedos did not sell the orop to another poraon until Diaaaldorff kL received tha amount due him.*' In ordor to secure additional amounts of ooffaa Diaaaldorff opanad several small ahopa for buying ooffaa in tha raglon diraotly northaaat of San Padro Caroht. Praetloally all tha land in tha araa van ovnad by Indiana, who llwad in tiny villages (aldaaa) hlddan away in tha mountains, Thara warn numerous auoh ooassunltlaa. Thay wara ao laolatad and lnaooaaalbla that faw buyara vanturad to go thara, baoauaa thay oould ba raaohad only on foot or on mulebaek, and in ordar to tranaport larga amounts of ooffaa out of the ragion tha buyar had to have a reliable aouroe of paek animala or human oarrlara* Tha Indian lands lay at an altitude of nearly four thouaand feat, and tha ooffaa produced there waa of excellent quality and highly dealrable. Since thara vara fever competitors, the price of thia ooffaa, as a rule, was lover than that grown in sections vhare service roads existed. Diaaaldorff sot up businesses on small lots, which he bought or rented, situated on tha roads and footpaths leading out of Carehfc to various Indian settlements. Indians on their vay to market passed tha buying centers, and it vas convenient for them to carry their cof­ fee there to sail, one or two hundred pounds at a time, or to come to Agreements signed before tha Secretary of the Court in San Padro Carchf between EPD and Caiman Pop vidov Caal, Catarina Tiul, and Padro Tiul (August 11, 1927), between EPD and Martin Caal (August 13, 1927), between EPD and Manuel Tiul (August 18, 1927), between EPD and Padro Choc 1° (August 18, 1927), and between EPD and Justo Sagdl, Vicente Tiul, Martin Ic6, Jacinto Ic8, and Dominga Seb (August 20, 1927), DS, Raxaht Box. L R eproduced with perm ission o f the copyright owner. Further reproduction prohibited w ith o u t perm ission. J r 19? M k for advances. Possession of key lot* in tha intorlor enabled Dieseldorff to monopolise tha purchasing of coffee produeod in remote areas where ho owned littla property, for as long as no other person established a business in competition with his own, he could antici­ pate hawing a reasonably stable patronage from year to year and a reliable source of good coffee. The coffee buying lots wore saall, but their sise belied thair importance. Dieseldorff purchased two thirds of his ceresa coffee at these places* The majority of the lots ranged in sise frost one to ten acres, but this was sufficient land, because he needed only enough space to erect a rude building for an office and for teaporaxy storage. Since the beans were not processed at the site but were taken daily to one of Dieseldorff's plantations, nachlnery and drying terraces were unnecessary. Among the most important buying centers that Dieseldorff possessed were the ones administered from Raxpec that dominated the aldeas of Chajuch, Sarraxpec, ChaJqueJ,55 Sayaxut,^ and Quijd,^ and from Raxeh£-Pocol£, the communities of Chicajl, Setul, Sebob, and Caquitfin.^® By 191k Dieseldorff was purchasing a total of more than ^Land gale documents for three lots registered as Finca 7k9, Folio 300, Libro 6 , 1* Serie; Finca 9, Folio 21, Libro 18, 1* Serie; and Finca 231, Folio 27k, Libro 22, 1* Serie (July 19, 1899), DS, Raxpec Box. ^Land exchange document for lot registered as Finca 150, Folio k3, Libro 12, AV (September 13, 190k), DS, Raxpec Box. ^Land sale document for lot registered as Finca l6k. Folio 220, Libro 13, 1* Serie (April 22, 190k), DS, Raxpec Box. According to the document Dieseldorff was renting the property at the time he bought it. efi ? Copy of Judgment of the Court in San Pedro Carchi ordering adjudication of certain lots in Pocol& to EPD (June 28, 1907), DS, Raxahi Box. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r 19II 500,000 pounds of pulp coffee each year, and approximately 350,000 came from the districts of Raxpec and Raxahft. The entire amount yielded ahout 120,000 pounds of parchment coffee, or 110,000 of oro coffee. This constituted between 25 % end 30 t of his annual ex­ ports.^ During the 1920's Dieseldorff greatly increased the amount of pulp coffee he bought as a result of conventions reached in two pur­ chases he siade from Max Krings. The latter, a German 1migrant who had worked for Dieseldorff at one time, owned a number of tiny lots in the area northeast of San Pedro Carchi, at Raxpec^0 near the town, and at Chiquixjl, about fifteen to twenty miles farther into the in­ terior. He had same coffee trees planted on the land, but since the total extension was small, production was relatively insignificant. Krings' main activity was coffee buying. His business was not ex­ tremely large, but he operated in areas where he was in direct com­ petition with Dieseldorff's interests at Raxpec and at RaxahS, After the war he was beset by financial difficulties. To extricate himself he offered to sell Dieseldorff his holdings in Chiquixjl for $ 15,000.^ Dieseldorff recognized the value of the land and the •^Letters Paul 0. Mittelst&dt,CCobCnD, to CD. B. Hodgsdonl, Guatemala, October 30, 1919, Letterbook, "iGdG," p. 193, DC, W I Int. Pap. ***We repeated use of the name "Raxpec" is confusing. Originally it referred to the Indian village Just outside of San Pedro Carch&. As Carchi grew, individual inhabitants of Raxpec sold their land piecemeal to outsiders. The parcels were small, and many of the new owners retained the old name. ^Letter: Max Krings, Finca Chiquixjl, to EPD, Cobfin, Decem­ ber 15, 192V, DS, Chiquixjl Box. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w ith o u t perm ission. J r ? 19 business end vas eager to buy, but he proceeded slcwly rather than accept at once* He knew he vas in a strong position to make the pur­ chase on favorable terns, because Krings had to sell for cash snd scarcely any persons in the department could afford his asking price. Shrewdly and insistently he negotiated. In March, 192$, after several months of haggling, he got Krings to sell him the land and the coffee business in two separate transactions. At the same time he extracted from Krings several declarations and guarantees, which were written into the sale document for the buying business. Dieseldorff intended to eliminate Krings as a rival. He paid $ $,000. for the coffee buying business at Chiquixjl, but he required Krings to agree formally to observe certain restrictions. According to the contract, Krings could continue coffee buying at Raxpec, but for a period of ten years he could not extend the scope of his opera­ tions, either under his own name or as the employee of a third party. For the same length of time he could not establish a new coffee buy­ ing business, for himself or for someone else, in any other part of the Carcha district. Furthermore, should he wish to sell Raxpec, Dieseldorff had first refusal. If Krings violated any article of the contract, he vas obligated to reimburse Dieseldorff the $ $,000. pur­ chase price. Letters: Max Krings, Finca Raxpec, to EPD, Cob&n, February 19 and 23, 1925, and Dieseldorff's annotations on these letters, DS, Chiquixjl Box. ^^Notarized agreement between EPD and Max Krings for the sale of Krings' coffee buying business at Chiquixjl (March kt 192$), DS, "HiJos" Box. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J Krings' economic situation vorsensd. Eighteen months later it became necessary to sell Raxpec, and he vrote Dieseldorff about the matter* He stated that he had already received offers of $ T»000. and $ 8,000., but none of the potential buyers could pay cash, so Dieseldorff could have it for $ 6,000* The entire property vas less than 150 acres, but coffee buying produced a profit of more than $ 3,000* a year.^ As in the case of Chiquixjl, Dieseldorff purchased the coffee buying business separately from the land* He paid $ 2,000. for it, and by articles of the contract Krings obligated himself for a period of ten years not to engage in the buying of pulp, parchment, or washed coffee, either for himself or for a third party, anywhere in the Alta Verapas without Dieseldorff*s written consent* Dieseldorff could collect a penalty of $ 2,000. from Krings for breach of promise.^ Dieseldorff drove a hard bargain. At one point Krings com­ plained, "None of the other persons interested in buying CRaxpec3 im­ pose conditions such as yours, that 1 leave the Alta Verapaz, that I drink no more coffee, etc., eto."^ Krings, owning no other property, vas hard put to it to find a means of supporting himself and his /L Letter: CMax Krings3, Carchi/Raxpec, to EPD,CGermanyl, July 7, 1926, DS, Raxpec Box; Letter: Max Krings, Carchi, to EPD, Coban, September 17• 1926, DS, Raxpec Box. ^notarized agreement between EPD and Max Krings for the sale of Krings' coffee buying business at Raxpec (February 17* 1927), DS, Raxpec Box. ^Letter: Max Krings, Carchi, to EPD, Cobin, September 17, 1926, DS, Raxpec Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r family. During the 1929/1930 harvest season Dieseldorff allowed him to accept employment as manager of the coffee buying business of Josef Christ, whose sphere of activity vas not in competition with Dieseldorff's. He granted permission with the understanding that Krings would not expand operations into new areas. This arrangement continued on a year-to-year basis until 1935 when Krings obtained a position with Sapper & Co. as manager of the finca Minerva*^ In buying out Krings' interests Dieseldorff shoved sound business Judgment and perceptive planning. The acquisition of Chiquixjl and Raxpec was of permanent value to his enterprise. Hot only vas he able to purchase increased amounts of coffee, but more significantly the contractual restrictions he imposed eliminated an important rival in the two areas where he bought the most ceresa. At Raxpec he strengthened his position and gained control of the coffee buying business in Bancab, Chajhuet, and several other aldeas.^® The Chiquixjl territory bordered on that of Raxahi, and by consolidation of these buying operations he became the dominant buyer, in this exten­ sive area. Setafta, Chimutut, and Tzapitz were some of the settlements that sold their coffee at ChiquixjlDieseldorff continued to have ^Letter: EPD, Cobin, to Max Krings, Cdbin, November 29» 1929, DS, Raxpec Box; Letter: EPD, CCobicJ, to Max Krings, £CobinJ?, October 29, 1931, Letterbook, "Asuntos ante laa autoridades ,tt Ho. 2, p. 620, DC; El Horte (Cobin, AV, Guatemala), Afio XXVI, Ho. 128b, April 27, 1935. ^®Document for BsXo of ^vclvo lots by Max Krings to EPD (February 15, 1927), DS, Raxpec Box. 69Document for sale of thirty-one lots by Max Krings to EPD (March 5, 1925), D6, Chiquixjl Bax. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 19II some competition in the region from Heinrich Deinhardt , but in 1930 he purchased Deinhardt's land and business, which brought ChimotS and Riibeltem under his influence.Thereafter Dieseldorff completely monopolised the buying of coffee in the Chiquixjl-Raxahi section. The total anount that he purchased here vas large, and the presentday Dieseldorff f im continues to obtain a major portion of its bought coffee from this region.^ Although the greater part of the coffee Dieseldorff bought vas ceresa, the amount of pergamino he purchased vas nevertheless con­ siderable and helped to increase his total exports, The conduct of business for parchment coffee vas different from that for pulp. There were fever clients involved, because the number of small producers with preliminary processing facilities vas considerably less than the number of those vho sold cereza, and because Dieseldorff's insistence on quality further reduced the number of individuals with whom he vould do business on a regular basis. Dieseldorff, however, bought much larger quantities from the individual finqueros, in units of 2,500 to 10,000 pounds (the equivalent of 10,000 to b0,000 pounds ceresa), at a price approximately five times more than that of pulp coffee. The price policies Dieseldorff established for buying parch­ ment coffee were similar to those for ceresa, but there were important ^^Documents for sale of ten lots by Heinrich Deinhardt to EPD (July 9, 1930), DS, Chiquixjl Box. "^Interviews with don Arturo Morales de la Cruz and don Guillermo Boesche (coffee buyer for the present-day Dieseldorff fin). L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 197 1 modifications. Since the transactions vere for much larger amounts at higher rates, Dieseldorff had to exercise caution and handle pur­ chases on an individual basis. To a. great extent the market situation determined shat he paid, but he also had to contend vith competition from other buyers in the department. He adjusted the price range ac­ cording to the type of coffee he vas buying, and offered the best rates for that grown at high altitudes from orchards that consistent­ ly bore a high quality product. For warm climate coffees he paid cheaper rates since the vorld market price for these vas lov.T2 He vas not interested in buying odd bags of coffee, because usually these contained some coffee the vendor had been unable to sell or a mixture of coffees from different areas and altitudes. Instead he preferred to purchase a producer's entire harvest and paid more per quintal to those who agreed to do this. To the same persons he paid less for coffees that they had bought unvorked and processed them­ selves, ostensibly because he could not be certain of the origin and quality of the coffee,T3 tut most likely because he vas also trying to discourage competition in coffee buying. In his business relations Dieseldorff tried to treat vendors fairly and to consider their point of viev, for he sav the advantages of attracting and keeping regular ^Telegram: EPD,CCoban1, to Manuel Conlledo, Purulhi, Novem­ ber 22, 1898, Letterbook, "Varies Cartas," Ho. 1, p. 352, DC; Letter: EPD, Coban, to Manuel Conlledo, Panzal, March 23, 1901, Letterbook, "Fincas," No. 1, pp. 7-9, DC. 73 — Letters: EPD, Coban, to Manuel Conlledo, Panzal and Purulhi, March 23, and May 6, 1901, January 2U, 1902, Letterbook, "Fincas," No. 1, pp. 7-9, H6-l»7, 275-280, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r ? 19 clients* Advances on parchment coffee vere often as high as $ 1,000.( snd consequently transactions for this type, unlike those for ceresa, required formal agreements. The majority of persons vho sold partial­ ly worked coffee maintained a residence in Cobin although their plantations vere situated elsewhere. Dieseldorff personally negoti­ ated contracts vith them and bought pergamino from almost every coffee-producing region of the department. Although the agents he employed also purchased parchment coffee, they vere not as active in this phase of operations as they vere in the buying of pulp coffee, and the coonBission they received, one peso per quintal vas small in relation to the price of the partially treated coffee* The contracts Dieseldorff signed differed from client to client, according to the terms he reached in each case, but there vere several articles common to all. Dieseldorff lent the producer money an his future crop. The recipient obligated himself to repay the sum between November and April vith a minimum number of iuintales of coffee, vhich Dieseldorff promised to buy at an agreed price* In same instances the price vas not fixed but vas to be one peso belov the current rate in the department at the time of deliv­ ery.^ For coffee in excess of the amount set in the contract 7I1 __ Letters: EPD, Cobin, to Manuel Conlledo, Panzal, June lU, and August 30, 1901, Letterbook, "Fincas," No. 1, pp. 87, 170-171, DC. ^Letter: EPD, Cobin, to Benvenuto Lipez, Seacti, March 21, 1901, Letterbook, "Fincas," No. 1, p. 1*, DC. ^Letter: EPD, CCobin1, to Vicente Polanco, San Cristifeal, July 15, 1898, Letterbook, "Varies Cartas,” No. 1, pp. 87-89, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Dieseldorff paid the same rate as for the other if the producer had agreed to sell his entire harvest. Often Dieseldorff included a "puesto la finoa" clause, which meant that he bought the coffee at the place where it was grown and that he provided the carriers neces­ sary to neve it. The coffee had to be properly prepared and dried, or Dieseldorff would not accept it. If the finquero failed to deliver the entire amount of coffee, he had to pay Dieseldorff ten pesos for each quintal that vas lacking. In collecting this penalty Dieseldorff vas lenient if there vas Just cause for the shortage, such as a very poor harvest throughout the department.77 To protect himself against possible loss Dieseldorff usually required persons receiving advances to present seme form of security as part of the agreement. He vas justified in this practice since often he was giving them a sizable amount of money. As he explained to one man who vas apparently affronted by his request, "I am asking you to guarantee the loan, not because I doubt your honesty, for if I were to place my trust in anyone, you in my estimation are more worthy of it than any other person, but as we are all mortals, it is only natural that whoever makes a monetary advance should want to have his capital assured."7® The type of warranty depended upon the individual. If the 77Letter, EPD, CCob&nl, to Manuel Conlledo, Pansal, Hovember 11, 1901, Letterbook, "Fincas,” Ho. 1, pp. 226-229, DC. This letter to one of Dieseldorff's agents contains a sample purchase agreement and detailed instructions regarding buying policies. 7®Letter: EPD, CCobanl, to Juan de LeSn, Salama, June 19, 1898, Letterbook, "Varies Cartas,” Ho. 1, pp. 89-86, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J recipient vas trustworthy, or if the sun given vas not nore than a fev hundred dollars, Dieseldorff asked only that he have a third party countersign the purchase contract to guarantee repayment.^* In other instances he denanded a temporary mortgage on the man's land as col­ lateral*^ By the same token he refused advences to those vho vere heavily in deht or vho had existing liens on their property, as he ft. considered such persons poor risks. Occasionally he did not be­ lieve it necessary to have the loan secured, vhen the recipient vas absolutely reliable, for example, or, perhaps, vhen he vas politically important* Usually Dieseldorff charged interest on the advance he made* This vas essential since he himself vas paying interest on the money he had borrowed from European firms to operate the coffee buying business. The rate, vhich vas specified in the contract, varied from case to case, but it vas only slightly higher than vhat he paid his creditors* go Most cosnonly it vas 1 % per month on the balance due, ^Letter: EPD, CCobSnl, to Juan de Leon, Purulha, July 6, 1898, Letterbook, "Varias Cartas," Ho* 1, pp. 1*3-44, DC; Letter: EPD, CCobSnl, to Adolfo Molllnedo, Chajsel, July 21, 1898, Letterbook, "Varias Cartas," Ho. 1, p. 101, DC. Dq Letter: EPD, CobSn, to Manuel Conlledo, Panzal, June 6, 1901, Letterbook, "Fincas," Ho. 1, pp. 73-7$, DC. ^Letters: EPD, Cobin, to Manuel Conlledo, Panzal, August 15, and October 19, 1901, Letterbook, "Fincas," Ho. 1, pp. 160, 196-197, DC. g2 Letter: EPD,CCobSnl, to General Ismael Chavarria, Guatemala, July 11, 1898, Letterbook, "Varias Cartas," Ho. 1, p. 64, DC. ^Letter: EPD,CCobSnl, to Vicente Polanco, San CristSbal, July 15, 1898, Letterbook, "Varias Cartas," Ho. 1, pp. 87-89, DC; Letter: EPD,CCobSnl, to Manuel Conlledo, Purulhi, October 5, 1901, Letterbook, "Fincas," Ho. 1, p. 193, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r although at tinea he leried 1 1/2 % on first contract* or on those which presented sow unusual risk Once in a while he charged no Interest, it seems, on advances he nade to politically influential persons whose goodwill he sought, or to producers whose coffee was of such exceptional quality that he vas very eager to buy it.®-* In determining Interest rates on advances Dieseldorff strongly believed that the creditor should regard the needs of the clients. There vere buyers in the Alta Verapaz vho levied 2 % and 3 % Interest per month on short-term loans, and some a usurious 5 % • They hood­ winked unwary persons, unsophisticated in business matters, into sign­ ing contracts vith the ruse of offering to pay one peso or so more per quintal than the current rate, but the interest charges, com­ pounded monthly, ended up being much more than the price difference. At the same time they demanded hypothecation of the recipient'a en­ tire property as a guarantee. Dieseldorff regarded such practices as detrimental to the economic development of the department, for if the amount charged vas too high, the small producer realized little profit and understandably became dissatisfied. 86 In 1931 he petitioned the President of Guatemala to order government regulation of interest charges by setting a maximum limit of 1 % or 1 1/2 % a month and 81» Letter: EPD, Coban, to Manuel Conlledo, Panzal, March 23, 1901, Letterbook, "Fincas," Ho. 1, pp. 7-9, DC. ds Letter: EPD, Cobfn, to Manuel Conlledo, Panzal, January 2k, 1902, Letterbook, "Fincas," Ho. 1, pp. 275-280, DC. or __ Letter: EPDt Cobin, to Manuel Conlledo, Pansal, June la, 1901, Letterbook, "Fincas," Ho. 1, p. 87, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J establishing penalties for violators,®^ Although there is no evidence of causality, President Ubieo in January, 1932, did issue a decree setting a marlnun limit of 8 % on annual interest rates*®® The purchase contracts vere of mutual benefit to the parties* They enabled the small producers in the department to obtain cash to cover their operating expenses and to have an assured outlet for their coffee, vhich under other circumstances they might have diffi­ culty selling. The agreements also protected them against sudden drops in the vorld market price of coffee since Dieseldorff had to buy at the rate set originally. The more daring, vho had been villlng to take a chance and had not fixed an exact price, profited vhen the market rose. Since many of the small producers owned few draft ani­ mals and vehicles, the transport of coffee from one place to another posed a problem. For them Dieseldorff's arrangement to move the cof­ fee himself vas advantageous, as it saved them the costs and difficulties involved. 89 In Dieseldorffs case the contracts facilitated the conduct of business. He could estimate vith reasonable accuracy the amount of bought coffee he would have for export to the brokers who had given him short-term credit, and he could make shipping arrangements in advance. Buying "puesto la finca" helped assure his getting the ®^Letter: EPD, Coban, to President Jorge Ubico, Guatemala, June 30, 1931, Letterbook, "Asuntos ante las autoridades," Ho. 2, pp. 39V-395, DC. 88 Leyes de Guatemala. Vol. L, p. 329. ®^Letter: EPD, Cobin, to Manuel Conlledo, Pansal, March 16, 1902, Letterbook, "Fincas," Ho. 1, pp. 336-338, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 20p ooffee In time to M « t consignment due dates. When coffee prices rose, the written agreements dlecoureged producers from breaking their word and selling to a higher bidder.?0 They gave him legal grounds for bringing unreliable persons before local magistrates to force them to honor their obligations.?3, Dieseldorff furthermore protected himself against having to accept a low-grade product, because he had the option, which he exer­ cised when necessary, to refuse coffee that failed to meet his standards. The problem most often encountered was receiving beans that vere not completely dry. Vet coffee in bags spoiled quickly since mold end mildew set in easily. The damage vas irrevocable, and for this reason the employees he sent to pick up shipments vere under strictest orders not to accept coffee in such condition, but to return it and demand that it be fully dried. At one point he wrote to one of his men, asking sarcastically, "You do know how to tell whether coffee is properly dried or not, don't you?"?^ On other occasions he rejected coffee, because the beans were malformed and improperly de­ veloped, or because the lot vas badly processed and contained too many unpulped red berries, immature beans, black beans, and debris.?3 ?°Lettar: Albert Ludwig for EPD, CCobin], to Manuel Conlledo, Pansal, May 25, 1902, Letterbook, "Fincas," Ho. 1, pp. 1*27-1*29, DC. ^Petition: EPD to the Jues de Pas, Cobin, March 1, 1928, Letterbook, "Asuntoe ante las outoridades," Ho. 1, p. 1*02, DC. Q2 Letter: EPD, Cobin, to Manuel Conlledo, Pansal, June 26, 1901, Letterbook, "Fincas," Ho. 1, p. Ill, DC. ^Letter: EPD, CCobfnl, to Jos6 Luis Cordin, Cobin, August 16, 1898, Letterbook, "Varias Cartas," Ho. 1, p. l6l, DC; Letter: EPD, Cobin, to J. Rostulo Lopes, CFincal Chajbulux, March 6, 1926, L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 20?1 By imposing that* conditions h* vas ahl* to obtain eoff** that ha could vorfc into a valuabla, marketable produet. Tha ooffaa buying buainaaa that Diaaaldorff established, for pargamino as veil as ceresa, vaa a viable operation. Although exact purchase statistics are not available, export figures indicate that under hie direction the total amounts he bought grew over the years between 1696 and 1937. Correspondence, land titles, and other docu­ ments offer further proof of this, for they reveal how he methodloally expanded the range of his activities. His efforts to deal fairly vith vendors, the validity of his word, and the transportation facilities he possessed helped to attract many steady patrons, vho each year elected to deal vith him. Nevertheless, Dieseldorff never completely exploited the full potential of coffee buying. During the 1930's, as hia health declined and incapacitated him, he came to depend largely on the regular clientele that he had built up over the years, and operations vere reaching the point of stasis. When hib son Willi took over, he realised vhat vas happening and vhat could be done. One of his primary objectives vas to inten­ sify coffee buying operations, and he approached the matter vith vigor and enthusiasm and injected nev life into the business. qU In the following years exports Jumped tremendously from 1,160,600 pounds Letterbook, "Varios Asuntos," No. 8, p. 68, DC; Letter: EPD, Cobin, to VClctorl Wellman, CFincal Slguanhi, February 8, 1928, Letterbook, "Varios Asuntos," No. 10, p. 38, DC; Letter: EPD, Cobin, to Oscar Leal P., San CristSbal, April 22, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, p. 735* DC. Ok Interviews vith don Arturo Morales de la Cruz, don Manuel Burmester, and dofla Matilde Dieseldorff de Quirin. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J 20T1 r during the 1937/1936 ituoo, to 1*802,300 for 1936/1939* to 2,630*700 for 1939/19^0* to 3*727*300 for 19fc0/19fcl*^ This spsotseulsr growth v u largely ths rssult of greatly inersMsd ooffss purchases, but it was, however, tha solid foundation laid by Ervin Diasaldorff that provided tha basis Willi naadsd to build up tha buslnass. Today tha houaa of Diasaldorff oontinuas to buy earasa and parganino in vary sueh tha s u m fashion as Ervin Diasaldorff did. Although an official ooffaa buyar is aoployad to nagotiata agreements, daolsions concerning prloas and polielas ara made by the haad of tha firm.^ Tha growth of ooffaa exports is a gauge to the continued expan­ sion and auccesaful operation of Dieseldorff'a business. He brought about the increase in tvo distinctly different vays— one agricultural, the other comercial. In both he vorked within an established system, but to his benefit ha altered this as he believed necessary, through leadership and planning, vith prudence and caution* raiaad production considerably* On his fincas he It is significant that he did this not marsly by extending and enlarging coffee grovea, but by increasing the yield per tree as veil, through the improvement of cultivation ^Record books, "Consignaci6n cosecha," Ho* 1, p. 91, Ho* 2, pp. 100-113, 113-118 (1937/1938 harvest)} No. 1, pp. 92-10h, Ho. 2, pp. 119-120, 12h, 126, 129, 131 (1938/1939); No. 1, pp. 103-116, 118119, No. 2, pp. 123, 130 (1939/19^0)} No. 1, pp. 116-121, 130 ( 1 9 W 19^1)» DC. During World War II coffee purchases increased even store, as the Dieseldorff f i m began to buy fraa persons vho vere former clients of Gomans whose businesses had been confiscated by the Guateisalan government. 96 Interviews vith Mrs. Billie Neal de Cox and don Guillermo Boesche. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r techniques and meticulous eon of tha plants. Concomitantly, ha re­ duced production ooata by tha development and application of praetical solutions to tha problems ha anoountarad. To augment production ho turnad to eoffaa buying, and in this activity ha displayed shrevd business abilities. His advertence to a sane and rational price policy, coupled vith his demand for quality and his respect for his clients, enabled him to establish the business on a firm footing vith a strong inherent potential for expansion, which insured its longlived success. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r “i CHAPTER VI THE COFFEE BUSINESS: HARVESTING AND PREPARATION OF THE CROP In addition to cultivation and buying, the coffee business involved a number of other operations that vere of equal importance. Once the groves vere in production, the crop, vhen ripe, had to be harvested. Subsequently the initial processing of the fruit to the pergamino form vas carried out on the fincas vhere it had been grovn. The beans vere then bagged and carried to Coban. vent final preparation and sorting. There they under­ The coffee, nov ready for mar­ ket, vas once again placed in sacks and sent, via Pancajche and Panzos, to the port of Livingston from vhere itvas shipped to pre­ determined consignees abroad, vho sold it. This, in brief, vas the system followed by Dieseldorff and the other coffee exporters in the Alta Verapaz, but it vas by no means quite so simple. exacting and the entire process The steps were presented technical difficulties and complications that required the producer's constant attention. If Ignored, the problems that existed between the time the beans vere harvested and the time they vere sold could cause the exporter a financial loss. Dieseldorff, in his con­ duct of operations, exerted special efforts to solve the problems of harvesting and preparation that all coffee producers faced in common. In the Alta Verapaz the coffee harvest season varied from place to place, according to the altitude and climate of each L 207 R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r particular area. In the cold highlands, at Chajcar for example, it extended from late November to early April,1 but in the low-lying regions such as Cubilg&lts it began about the middle of October and ended in January. O The harvest was of long duration, because the trees had three or more flushes of blooms in a single year, and the fruit therefore matured at different times. The coffee cherries ripened within eight or nine months after the blossoms dropped off, and it was not uncommon to see both flowers and berries on the same tree. During the first few months the coffee berry was bright green. As it matured its color gradually changed to yellow-orange, then red, and finally, when it had reached its optimum weight and development, it took on a deep crimson, almost purplish, color. Although under favorable climatic conditions the fruit remained at this point for one or two weeks, it was advisable to pick it as quickly as possible, because as the berry became overripe, it began to shrivel up and eventually turned black. This physical change adversely affected the flavor and appearance of the bean to such a degree that it lost its commercial value since the foreign market demand for this coffee (called triache) vas nil. Triache vas used only for local consumption and sold at a very low price. ^Letter and enclosure: EPD, Cobin, to the Alcalde 1° Munici­ pal, Carchfi, April 9, 1930, Letterbook, "Asuntos ante las autoridades," Ho. 1, pp. 990-991, DC. 2Agricultural and statistical data concerning Cubilg&its Cc. 19301, Letterbook, "Asuntos ante las autoridades," Ho. 2, p. 139, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r The harvest season vas the busiest period on a coffee planta­ tion. Dieseldorff knev that vhen gathering and processing a crop vigilance and tisdng vere of the utmost importance in determining the quality of the final product. To do the job properly he required a large labor force. The Indians who lived on the finca vere one source of manpover. For the duration of the harvest all unrelated activities on the plantation ceased, and everyone— -men, women, and children— set about to pick and prepare the coffee. On the large plantations the number of resident colonos vas insufficient to perform all the necessary tasks during the peak period, and Dieseldorff had to bring in additional hands. For a time, during the 1880's and the early 1890's, local government officials had assisted finqueros by apportioning to them, upon their request, seasonal laborers recruited from the Indian communities throughout the department.3 From observa­ tion and experience Dieseldorff had quickly learned that the system vas unreliable, and he reasoned that in order to operate effectively he had to secure a permanent and dependable supply of seasonal workers. He solved the problem of labor in tvo different vays. Between 1891 and 1898 he invested money buying properties that, although not suitable for the cultivation of coffee, had a large number of Indians Quetsal (Cobffn, AY, Guatemala), AEo 3, No. 69, May 1, 1882; El Porvenir (Coban. AV, Guatemala), AHo 1, No. 25, July lkt 1889; ibid., A80 5, No. 209, January 7» I89Hi El Guatemalteco (Guatemala), Vol. XII, Ho. 60, December 17, UlSj ibid., Vol. XIII, Ho. 5, February 8, 1890; Levee & Quit— 1»( vol. VIII, pp. 20320U; Guillermo Nafles Fale6n/’German Contributions to the Economic Development of the Alta Vera Fas of Guatemala, 1865-1900"(Unpub­ lished M.A. Thesis, Tulane University, Nev Orleans, 1961), pp. 1516, 61. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2iin residing on the lend. At harvest tine he sent Indians from these places to fulfill their obligations to him by working temporarily on the coffee plantations vhere extra hands vere needed. Some of the acquisitions he made for this purpose vere Chiachal, Secac-Ulpin, and J. Rio Frio. There vere 123 adult Indian males at Chiachal at the time of purchase,^ and almost tvo hundred lived at Secac-Ulpan and Rio Frlo.^ To augeent his labor supply he also made vork contracts vith other Indians, males and females, vho lived in the vicinity of his fincas. He paid them part of their vages in advance to make certain they complied vith their agreement and to have grounds for legal action if they did not.? The harvesting of the ripe coffee cherries vas slow and laiborious. Experienced and trusted employees, appointed hy Dieseldorff, closely supervised the vork gangs, which vere composed primarily of women, adolescent boys, and older men. Since the groves vere planted on mountain slopes, the vork vas difficult, and workers had to exer­ cise caution not to lose their footing. at various stages of development. The trees alvays had berries Dieseldorff did not permit the ^Letter: EPD, Coban, to the Comandante de Armas, Coban, January 5, 1929, Letterbook, "Asuntos ante las autoridades," Ho. 1, pp. 660-66l, DC; Letters: Esteban Nencos, Rio Frio, to EPD, Cobin, February 27, March 1 and 21, April 30, 1937, DC, Finca Correspon­ dence. ^Land title to Chiachal (April 2, 1891), DS, Secol Box. ^Inventories of Secac-Ulpin and Rio Frio (1930), DC. 7 _ Letter and enclosure: EPD, Cobin, to the Jefe Politico, Cobin, April 21, 1932, Letterbook, "Asuntos ante las autoridades," Ho. 2, pp. 816-822, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2Ul laborers to strip the branches but ordered then to pick off only the ripe beans, one at a tine. Although this nethod vas time-consuming, there vere inportant reasons for using It: to prevent injury to the branches by violent and indiscriminate stripping, which unavoidably renoved the foliage as veil as the fruit; and to assure the uniform quality of the beans after processing. The harvesters placed the beans in baskets slung over the shoulder. When these vere filled, they emptied the coffee into large burlap sacks, located at regular intervals throughout the groves, and resumed picking. Male laborers carried the sacks, which held about fifty pounds, on their backs to o the beneficio or processing plant on the finca. Moving the coffee in this primitive manner vas a vaste of manpower, yet in most in­ stances there vas no alternative. Mules and burros, vhen they could be spared, vere sometimes used, but many of the orchards vere ac­ cessible only on foot. As a result of the physical makeup of the coffee berry, its treatsmnt vas a delicate operation that involved a series of intricate procedures. The fruit, classed as ceresa vhen first taken off the tree, looked like a slightly elongated cherry. The red outer skin, which vas thick snd fiberj u s , enclosed tvo beans. pebble split in half. These resembled a The outer sides vere oval or round, and the inner sides, which faced each other, vere flat. Surrounding the indi­ vidual beans vas the fruit pulp, a sveet tasting, gummy substance of ^Ervin F. Dieseldorff, Per KAffeebaun. Praktische Erfahrungen fiber seine Behandlung la nfirdlichen Guatemala (Berlin,C19083), pp. 335 L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r mucilaginous consistency. A double integument sealed the beans* The first covering, a tough textured, straw colored husk, vas the "parchsent," and the one beneath it, delicate as gossamer but closely adher­ ing and difficult to detach, vas called the "silver skin*" To prepare the coffee for narket the beans had to be completely cleaned by remov­ ing separately and in sequence all four layers— the outer skin, the fruit pulp, the parchnent, and the silver skin* Each step required different techniques and equipment, and skill and patience vere neces­ sary to vork the beans correctly* There are tvo methods of treating coffee, the "vet" and the "dry." The latter system, although much simpler, vas c fficult to use in the Alta Verapaz, because it required three or four veeks of continuous van, dry veather. More importantly, since in this method ripe and unripe berries vere harvested and prepared together, it pro­ duced an inferior commodity of lew market value. For the high-priced Cobra coffees the vet method yielded better results, because it brought out the best characteristics of the beans and thereby maxi­ mized their vorth. This system vas expensive, for it required an ample supply of vater, costly machinery, an extensive physical plant, as veil as a large number of laborers and trained supervisory person­ nel. The financial outlay necessary to establish this type of operation vas such that only the big producers could afford it. Other planters had to have their coffee vorked conaercially, or to sell it unpulped or partially treated. Dieseldorff prepared the beans to the pergamino state on the fincas, and he employed the vet method exclusively. The steps L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2131 involved vere pulping, fermentation , washing, and drying. Each vas intricate and required exact tilling. Before starting Dieseldorff also gave the coffee a preliminary vaahing, a step that other fin* queroa often omitted, to remove hy flotation green beans, dirt, and debris. Although Dieseldorff could not personally oversee the process* ing operation on all his plantations, he made his demands known to his administrators and their assistants vho worked around the clock in shifts. The standards of quality he set vere high, and his emo ployees had to meet them or incur his wrath.7 Once the berries vere picked, they had to be pulped vithin twenty-four hours, otherwise the fruit began to dry up and to ferment prematurely. This discolored the bean and imparted an unpleasant taste to it. The purpose of pulping vas to remove completely the red outer skin without injuring the coffee beans. For this operation Dieseldorff used special machines, called pulpers (pulperos, in Spanish), which separated the beans from the skin by rubbing the berries between a stationary surface and a rotating cylinder or disc. The pulper ejected the skin through a chute and emptied the beans onto an oscillating screen that trapped imperfectly pulped cherries. These vere put through the machine again, because the presence of un­ pulped berries in the fermenting vats spoiled the flavor and color of the other beans. Dieseldorff had one pulping apparatus or more on each of his coffee plantations housed in closed wooden sheds vith roofs of ^Letter: EPD, Coban, to Manuel Conlledo, Panzal, June 26 , 1901, Letterbook, "Fincas,” Vo. 1, p. Ill, DC. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r galvanized iron* The pulper itself vas raised about six feet above ground level, and the coffee vas poured in from the top* Dieseldorff installed hoisting devices to lift the heavy bags containing the beans that the Indian laborers brought directly from the groves* He povered both the holster and the pulper vith gasoline suitors manufactured by the Otto Deutc firm*10 The finca managers had instructions from him to examine the pulpera every morning to make certain that the disc or cylinder vas perfectly balanced. If it vas rotating too close to the immovable surface, it cracked the beans; if too far, it failed to remove all of the outer skin.11 Prior to World War I Dieseldorff bought pulperos in Germany from the Sarg Company. Ip The machine vas the invention of J. Frederick Sarg, one of the earliest German settlers in the Alta Verapaz, vho had developed it during the l870's as a substitute for the unwieldy and costly Gordon pulpers, made by John Gordon & Co* of London. berries. The Sarg pulper used perforated discs to shell the coffee 11 Although it operated effectively, it had the limitation that it could not accommodate beans of different sizes, because it vas difficult to take the discs out and to replace them vith others 10Record books, "inventarios," 1919-1926, 1927-1931, DC. ^Dieseldorff, Per Kaffeebaum. pp. 31-32. 12 General inventory of EPD's properties made by the IGdG, March 31, 1919, DS, NVariosn Box. ^Deutsdhtum in der Alta Verapaz (Stuttgart. 1938), p. 25; Carlos Agustin Enrique Hegel. Die historiSChe Entvidklung der Plantaaengesellschaft in‘Guatemala bis turn Bide des 19. Jahrhunderts (Munich, 193o}, p. 56. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r having larger or smaller perforations. As a result it vas necessary to have at least tvo separate machines, one for Arabics and another for Maragogyp.11* After the war manufacture of the Ssrg pulpers vas suspended. Dieseldorff, realising that in the future he would be unable to obtain parts for his old machines, gradually began to re­ place them vith nev ones. The nev pulperos were made by Urn. McKinnon A Co., Ltd., of Aberdeen, Scotland, and Dieseldorff bought them directly from the firm. The McKinnon machines employed rotating copper cylinders or covers, vhich were punched vith bulb-shaped holes. These pulpers had the advantage that the cylinder vas removable and a different one, vith perforations that more closely approximated the sixe of the cherries being pulped, vas easily substituted. Between 1920 and 1926 Dieseldorff purchased nine McKinnon pulpers, each of vhich cost about $ 300. $ 20. each. He also bought a number of the interchangeable covers at He installed tvo machines at each of the fincas Chiquixjf, Raxahi, and Secol-Seact€, and one each at Chajcar, Sechafb, and Santa Cecilia.1'* By 1930 there were only four Sarg pulpers still in opera­ tion, tvo at El Salto, one at Panzal, and one at Raxpec.1^ Immediately after pulping the coffee beans were placed in ^Inventory of El Salto (1930), DC. ^Letter: CEPD, Cobfnl, to Hm. McKinnon A Co., Ltd., Aberdeen, Scotland, July 12, 1920, DC, Financial Correspondence; Record booh, ■Inventarios," 1919-1926, pp. 80, 8$, 90, DC; ibid.. 1927-1931, pp. 5, 6, DC; Inventories of ChiquixJt, Raxahfi, and Secol-Seact* (1930), DC. ^Inventories of El Salto, Panzal, and Raxpec (1930), DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r large tanks of vatsr to loosen the fruit pulp by fomentation. This vas a crucial step in the preparation of coffee by the vet method, for it not only determined the final color and flavor of the bean, but improved its quality over similar varieties cured by the dry method. The length of time required for fermentation varied from tventy-four to seventy-tvo or more hours, depending on temperature and humidity. The colder the veather, the longer it took. Dieseldorff experimented vith various methods of speeding up the process of fer­ mentation, and he discovered that this could be done by adding to the vater liquor from a previous fermentation or small amounts of quick­ lime. He also found that covering the vats to protect them against air currents raised the temperature of the vater and hastened the operation.^ An experienced person examined the beans at frequent inter­ vals until the exact point vas reached and the fruit pulp vas easily vashed off. The timing had to be precise or the beans vould be ruined. If they vere underfermented, the gumy pulp vas impossible to remove, and it continued to ferment through subsequent processing steps, giving the beans a spotty, yellovish color} if they vere overfermented, the sickeningly sveet odor of the decomposing fruit pulp permanently Impregnated the beans. As soon as the beans vere fermented, the vater in the tank vas drained out, and the coffee vas vashed vith fresh running vater for several minutes to remove all traces of the pulp. ^Dieseldorff, Per Kaffeebaum. pp. 25-26, L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r To foment the ooffee Dieseldorff constructed tenks of stone end mortar, whose liquid volume capacity ranged from thirty to forty thousand gallons* lfi Since the process took up to three days, at least three or four rats vere necessary on each of the fineas in order to accoenodate beans at various stages of fomentation*^ They vere located vlthln the structure housing the pulper, and the top vas below the level of the machine so that the coffee would drop through a shoot into the desired vat. The tanks had a vater drain and an opening on one side to remove the vashed coffee by pushing it out onto the ad­ jacent drying terraces. Dieseldorff employed masons on a contract basis to inspect the vats, to maintain them in good condition, and to build nev ones vhen needed. 20 One of the main problems in fermenting coffee vas obtaining sufficient quantities of fresh vater. Although the annual rainfall in the Alta Verapaz averaged close to one hundred inches, vater sources, paradoxically, vere scarce* There vere a few small streams, but most of the rain seeped into theground and collected in a netvork of deep underground rivers that crisscrossed the department. pi Dieseldorff approached the vater problem in different vays. At flncas vhere there vere rivers, such as Chajcar, Sechalb, and ^Inventory of Chiquixji (1930), DC. 19 Inventories of Chajcar, Chlquixjl, Panzal, Raxahi, Raxpec, Santa Cecilia, Sechalb, and Secol-Seactfi (1930), DC. 20 Labor contract vith Antonio Reyes (June 6, 1927), D6, "Varios" Bax. 21Karl Sapper, "Die Alta Verapaz,” Mlttheilungen der geogranhischen Oesellschaft in Hamburg. XVII (1901J, pp. 15t-lf>0. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Santa Cecilia, ha built tha banaflelo as oloaa to the vater as possibla and lnatallad gaaolina motor pumps to move It. Tha terrain of these three plantations vas so steep that the vater had to be raised at a seventy or eighty degree angle* At Sacol, by erecting a dam across a rivulet that traveraed the property, he eueeeadad in rais­ ing the vater level to a point above the fermenting tanks, vhich enabled him to move the vater vithout machinery.22 At Raxahi, there vere no streams above ground, but he found an underground river ac­ cessible through a deep sinkhole. With a pump installed belov the surface, he vas able to pipe vater to the beneficio.2^ Dieseldorff recognised that additional measures vere necessary in case of emergency, for there vas alvays the possibility of a vater shortage caused by mechanical failure or a low river level. To avert a pos­ sible catastrophe and to assure himself a reliable, alternate supply of vater, he constructed on each of his coffee plantations tvo or more large-sise basins of stone and mortar to collect and store rainvater.2*4 The next step in preparation after fermentation and vashing vas drying. The mosos emptied the coffee from the tanks and spread it out in a thin layer cj terraces (called patios) to cure in the sun. Letter: EFD, Cobtin, to Max Krlngs, beeae, June lit, 1901* Letterbook, "Fineas," Ho. 1, pp. 86-89, DC} Letter: EPD, Chajcar, to Caralampio Lopes, Secac, July 7, 1901, Letterbook, "Fineas," Ho. 1, p. 122, DC. 2^Letter: EPD, Cob&n, to the Jefe Politico, Cobin, May 6, 1930, Letterbook, "Asuntos ante las autoridades,M Ho. 2, p. 3, DC. ^Inventories of Chajcar, Chiquixji, Pansal, Raxahft, Raxpec, Santa Cecilia, Sechaib, and Secol-Seacti (1930), DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r The operation took four to eight diyi, depending on the weather. Dur­ ing this time barefooted laborers, usually young boys and old men, constantly turned the beans over vith vide-toothad wooden rakes. They moved the beana to covered shelters if rain threatened and at night for protection from heavy tropioal deva. During long perioda of rainy veather, the vorkers aarated' the partly dried coffee vith wooden shovels to prevent it from mildeving or souring. The plantation managers, following Dieseldorff*s orders, per­ sonally supervised the drying of the coffee. They had to make cer­ tain that the coffee vas constantly exposed to air. If it vas not, the beans heated up, and the oil in them turned rancid. Under these circumstances they developed such a foul odor that they vere called "stinkers»" The administrator had to keep the beans at various stages of dryness separate and check each lot often. The drying operation greatly influenced the quality of the coffee, and to secure good re­ sults, the work had to be done properly. Over drying hardened the bean excessively and caused a significant weight loss. On the other hand, if the beans vere still partially vet vhen bagged, they soured within three or four days or turned an ugly, mottled color. Improper­ ly dried beans roasted unevenly, and in the process of grinding, they formed a soggy mass rather than individual grains. Because the exact point of dryness vas difficult to recognise, Dieseldorff carefully chose the men vho oversav the vork, selecting the most experienced. The color test vas the simplest, for the parchment turned a bright straw color vhen dry. not consistently accurate, hovever. This criterion vas If the sun had been very hot, it L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r v u possible that tha outalda had drlad fully and tha parehaant vas tha propar ahada, but yat tha lnaida remained vat. Aa appaaranoa alona vaa misleading, ha danandad that tha administrators try aavaral methods of proof, ualng thair handa, taath, and aara. Whan tha cof- faa vaa thoroughly dry, a paraon could aaaily raaova tha hull by gantly rubbing tha baana batvaan tha palaa of tha hand. Sinoa tha baana hardanad aa thay drlad, It vaa dlffleult to blta through than aftar thay had raaehad tha eorraot point* Purthamora, a dry baan droppad on a voodan aurfaoa raaoundad aharply Ilka a pebble.Aftar tha ovaraaar had aanplad and teatad a lot and detemlnad that it vaa dry, ha had It put in aacka and atorad. To dry eoffae Dieseldorff conatructed flat tarracea around the benefiolo. There vere usually three to five on each finca, number depending on the anount of coffee produced. aise from three to five thouaand square feet. the They ranged in At Chiquixjl, for exaaple, there vere four large patioa, vhich encompaaaed a total area of approximately tvelva thouaand square feet.^ In order to facili­ tate noving the coffee, there vaa a primary terrace adjacent to tha benaficio and placed a little below tha level of the fomenting vata. Tha other patioa vere located around the first, each at a progres­ sively lover level, and all vere interconnected by reaps. ^Dieseldorff, Per Kaffaebaun. pp. 27-28. ^Inventories of Chajcar, Cblchochoc, Chiquixjl, El Salto, Pansal, Raxahi, Raxpec, Santa Cecilia, Sechalb, and Secol-Seact6 (1930), DC. ^Inventory of Chiquixjl (1930), DC L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Tha terrain of tha Alta Verapas aada tha eonatruotion of tha tarraeaa difficult. Sinoa there vara few flat areas, vary often Dieseldorff had to out into tha Mountain to huild one part and to extend tha other section beyond the slope. For this it vas necessary to erect beforehand a strong foundation of stone and mortar to support the patio. oA The terrace itself vas made of cement. The sur­ face vas painted vith a Mixture of three parts ooal tar and one part turpentine, vhioh helped retain heat at night and prevented the formation of aildev.^ For maximum drying efficiency Dieseldorff chose the location of each patio carefully* It vas imperative that no part be shaded by the surrounding buildings, but that the entire surface be exposed to the sun all day long.3° in order to provide drainage he built the patios vith « slight tilt. The masons Dieseldorff employed constructed the terraces, Inspected them peri­ odically, and made necessary repairs. As coffee production on the fincas grev, Dieseldorff had to build nev patios to accommodate the Increased loads. Betveen 1927 and 1929 he added a total of seven— tvo each at Chiquixjl and Sechalb, and one each at Santa Cecilia, Raxahi, and Chichochoc. Each cost approximately $ 200.^ Dieaeldorff also erected wooden sheds (called xaleras) along­ side the patios to store coffee at nitfht and during rainy veather. 20 Letter and accompanying diagram: EPD, Cobfin, to Max Krings Secac, June lh, 1901, Letterbook, "Fincas,” Ko. 1, pp. 86-69, DC. 29 Dieseldorff. Per Kaffeebaum. p. 27* ^Record book, "inventarios," 1927-1931, PP» 15, 18, 2h, 26, L 28, DC R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r He placed the galeras on the north and south sides to prevent their casting shadows on the terrace. The sheds vere like long galleries, shout eight to ten feet vide, closed on one side, vith roofs of gal­ vanised iron. They opened directly onto the terraces, at the sane level, so that the mosos, using flat vooden instruments, could quick­ ly push the besns into the shelter. On the open front of the struc­ ture vas a roll-up tarpaulin, vhich could be dropped to keep out the rain. The galeras vere expensive, costing from $ 300. to $ 500. each, but they vere essential for the protection of the coffee. Dur­ ing the same period that Dieseldorff built the seven patios mentioned in the previous paragraph, he also constructed an equal number of storage sheds.35* In addition to the open galeras Dieseldorff built closed structures to serve as varehouses for the dried coffee await­ ing shipment. Drying coffee on open-air terraces posed a problem in the Alta Verapaz, because the climate vas vet, and the operation vas slow and protracted. Mechanical dryers vere a possible solution. A num­ ber of firms in Europe and the United States manufactured machines capable of drying coffee vith artificial heat in about twenty-four hours. Many of the models available vere modifications of a machine invented in the l860's by a Guatemalan, don Jos6 Guardiola.33 Several Germans in the Alta Verapaz conducted experiments, attempt­ ing to improve old devices and develop nev ones. Among them vas 32Ibid., 1927-1931, pp. 15, 10, 26, 29, 35, 36, DC. 33La Sociedad Ecoh&nlca de Guatemala. I, 16 (February, 1069), p. 324. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 22 ? V. A. Dieseldorff, who patented an original design in the United States in 1882. Although none of the original prototypes vere manu­ factured, some of the ideas vere adopted to improve existing equip­ ment. Ervin Dieseldorff on the vhole did not favor any of the machines on the market. He used an automatic dryer only as a last resort vhen extended periods of heavy rains made the normal procedure impossible. He believed that dryers produced a lover quality product, because they evaporated the moisture out of the beans too quickly and tended to exsiccate them. Many planters in the department concurred vith his conviction that beans from high altitude groves responded better to gradual curing in the sun than to artificial heat.35 There vere fev automatic dryers in the Alta Verapaz during Dieseldorff's period. Quite apart from prevalent opinions regarding their effect on the bean, economic reasons kept the number small, for only the very large producers could afford to own and operate one. The machines cost several thousand dollars, but this vas just the initial outlay. Because the equipment vas bulky and heavy, the cost of transportation vas high. The complexity of the machine made it mandatory for the buyer to employ a trained technician to assemble and install it, and to run, maintain, and repair it as veil. The ouner also had to buy a generator to provide the electric power necessary to run it and erect a special fire-proof structure to house 3**United States. Official Gazette. XXI, 3 (January 17, 1882), p. 1T0. ^Dieseldorff, Per Kaffoebaum. p. 28. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J it. Moreover, operation of the machine vas costly, because vood, the fuel used to heat the dryer, vas a scarce coamodity in many parts of the department. Prior to World War I Dieseldorff ovned only one dryer. The machine, manufactured in London by John Gordon fc Co., Ltd., had a capacity of tvo tons and vas installed at Chichochoc, outside of Cobin.^ This vas a central location, because it vas vithin one day's valking distance of most of his major coffee fincas. Men and mules together could quickly transport the coffee there vhen it vas neces­ sary to do so. Secol presented more of a difficulty, however, because it vas situated far from Coban, almost tvo days' journey, and segments of the connecting trail vere in bad condition. Since the plantation had a particularly rainy climate, drying operations vere a constant prob­ lem. During the height of the harvest season there vere not enough men and animals to carry the coffee to Cobin to be dried, and occa­ sionally Dieseldorff suffered losses as a result of spoilage. He de­ cided that the only solution vas to buy a second dryer for the finca. He reasoned that by careful regulation of the heat source he could obtain almost as good results as by sun curing. In 192$ he purchased a dryer from George L. Squier Manufactur­ ing Co., of Buffalo, Hev York, for use at Secol.^ The machine vas General inventory of EPD's properties made by the IGdG, March 31, 1919, D5, nVarlosn Box-, Letter: Paul 0. Mittelstidt, CCobanI, to CD. B. Hodgsdonl, Guatemala, February 2, 1920, Letterbook, nIGdG," p. 269, DC, WW I Int. Pap. ^Letters: EFD,CCobinI, to Geo. L. Squier Mfg. Co., Buffalo, CH.Y.3, January 6 and 8, and March 16, 2925, Letterbook, "Varios R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r 22?1 a variation of the old Guardiol& dryer* Its price, vhich Dieseldorff paid by check, vas about $ 2,000., F.O.B. Buffalo,®® and the cost of auxiliary equipment, special packing,transportation, and installs?* tian brought the final total to $ 3,500.140 The machine arrived in June, disassembled. Dieseldorff hired, on a permanent basis, a mechanic to put it together and to keep it in working order, hi and it vas in operation for the 1925/1926 harvest season. The Squier-Guardiola dryer at Secol had a capacity of nearly four tons. It consisted of a rotating cylindrical drum, measuring ten feet in length and six feet in diameter, made of iron sheeting, vhich vas perforated to permit ventilation. Within the kiln there vere stationary blades, about six inches vide, to stir the beans and aerate them. Attached to the machine vas a steam motor, vhich drew in air, heated it, and forced it through a pair of duets connected to each end of the drum. The flow of hot air could be regulated from either side in order to dry the beans evenly and to prevent the Asuntos," Ho. 6 , pp. 625, 637, 971-972, DC; Letter: R. Hesse for EPD,CCobinl, to the Ferrocarril Verapas office, Livingston, June 5, 1925, Letterbook, "Ferrocarril Verapas," Ho. 7, p. 206, DC. ®®Letter: EPD, CCobinD, to Toepke & Co., Guatemala, March 17, 1925, Letterbook, "Varios Asuntos, Ho. 6 , p. 973, DC. 39 '"Since the dryer vas carried disassembled by mule pack from Cobin to Secol, Dieseldorff had requested that the packages contain­ ing the machine parts veigh no more than one hundred pounds each. Letter: EPD,CCobinl, to Geo. L. Squier Mfg. Co., Buffalo, CH.Y.l, March 16, 1925, Letterbook, "Varios Asuntos," Ho. 6 , pp. 971-972, DC. ^Record book, "inventarios," 1919-1926, p. 70, DC. ^Letter: Max Quirin for EPD, Cobin, to the Jefe Politico, Coban, August 17, 1926, Letterbook, "Asuntos ante las autoridades, Ho. 1, pp. 52l»-527, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r iiil |iO temperature in the cylinder from becoming too hot. The Secol dryer vas a valuable acquisition for Dieseldorff’s business, for it en­ abled him to process large amounts of pergamino coffee during periods of inclement veather and thus prevent losses. Drying vas the last processing step performed on the fincas. After the task vas completed, mozos put the coffee in burlap sacks, vhich had a capacity of fifty pounds. They then transferred it from the terraces to a water-tight storage shed, vhere it remained until carriers vere available. Mules, ox-carts, and men transported the bags from the finca to Chichochoc, situated on the outskirts of Coban. There Dieseldorff had a large plant (called a retrilia or an ingenio) vith the machinery and equipment necessary for preparation of the beans to oro, in vhich form he shipped them abroad. After the coffee arrived in Coban, Dieseldorff stored it for one or tvo veeks before vorking it. This allowed the coffee to rest and cool off slowly, a step he believed vas essential in order that the beans develop and hold a good color. Not all producers consid­ ered this necessary, and much of the coffee Dieseldorff worked for li-a others vas recently dried, J Since the pergamino coffee accumulated rapidly at Chichochoc during the peak of the harvest, Dieseldorff built a warehouse of stone ^Letters: EPD,CCobanl, to Geo. L. Squier Mfg. Co., Buffalo, CN.Y.l, January 6, and March 16, 1925, Letterbook, "Varios Asuntos,“ No. 6,pp. 625, 971-972, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r kk and mortar vith a capacity of one hundred tons the backlog. in vhich to store While in storage the coffee absorbed moisture from the atmosphere, and consequently, immediately before the final processing commenced, Dieseldorff again placed the beans on drying terraces for a fev hours. For this purpose he had tvo patios at Chichochoc, and in 1929 he added a third.^ The steps in vorking pergamino coffee to oro vere removed of the parchment husk and the silver skin, polishing, sorting, and grad­ ing. Machinery and manpower vere necessary to complete the operation. The dry beans first passed through a mechanical huller (also called a retrilla), that vas equipped vith steel rollers or cylinders, vhich revolved against a stationary surface and rubbed both coverings off the beans. The cleaned coffee fell onto a moving vire-mesh screen backed by an exhaust fan that drew out the loosened husk and other bits of debris. To produce the deluxe article much in demand in the Hamburg and London markets, Dieseldorff also put the beans through a second apparatus, a polishing machine (pulidora), vhich had brushes that removed any remaining particles of the silver skin and gave the coffee a rich, lustrous sheen. lili The color of oro coffee grovn in the „ * Letter: Paul 0. Mittelstadt, CCobanl, to CD. B. Hodgsdonl, Guatemala, January 9» 1920, Letterbook, nIGdG,n pp. 2h3-2UU, DC, WW 1 Int. Pap. ^Record booh, "inventarios," 1927-1931» p. 2U, DC; Inventory of Chichochoc Cl930), DC. k6 Dieseldorff saved the parchment husk to use as fuel in the automatic dryer at Chichochoc and added vhat remained to the compost piles. Interview vith don Manuel Burmester. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Alta Verapaz vas a dark, translucent blue-green, and polishing great­ ly enhanced its appearance and value. A fan once again removed the offal, and then a sorter, vhich consisted of an oscillating, inclined screen that capitalized on gravity separated the beans according to size. The smaller beans vere ejected through the dustbz at the top, and the larger, heavier ones through ducts nearer the bottom. Gen­ erally Dieseldorff sized the beans into three categories— firsts (the largest), seconds, and thirds. The final grading vas done by hand by Indian vomen from the CobSn area, vho painstakingly examined the cof­ fee and removed imperfect beans, vhich machinery alone could not de­ tect. The purchase of the processing plant at Chichochoc, one of the four retrillas in the Alta V e r a p a z v a s one of the most important acquisitions that Dieseldorff made. Possession of it enabled him to establish himself firmly as one of the dominant planters in the de­ partment. Dieseldorff exported all of his coffee, vith the exception of that produced at Panzal and £1 Salto,**® completely cleaned, en oro. Before he bought Chichochoc in 190l»,^ it had been necessary for him U7 - 'All four of the processing plants vere in Coban and vere owned by Germans. Besides Chichochoc, they vere Chimax (property of Sapper & Co.), Magdalena (Christ Hnos.), and Samac (Gustav Helmrich). The Guatemalan government nationalized all except Chichochoc during World War II. ^Record book, "Consignacicn cosecha," Ho. 2, pp. 1-1^, DC. Panzal and El Salto lay very near the railhead Pancajche, but the journey to Coban took at least one veek each way. It vas more eco­ nomical for Dieseldorff to ship the coffee produced there as pergamino than to transport it to Chichochoc, clean it, and send it back to Pancajch€. k9 L Land sale document for Chichochoc (April 26, 190U), DS, "Hijos” Box. R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J 22F1 r to have the product treated commercially. The cost, vhich amounted to approximately one dollar per hundred p o u n d s c u t into his margin of profit, and the results vere not alvays to his liking* Ownership of Chichochoc not only reduced his expenses, but enabled him to impose exacting quality standards on the vork done. Moreover, he vas in a position to establish a subsidiary business of processing coffee for other planters. At the time Dieseldorff bought Chichochoc, the mill had already been in operation for a number of years. The Sarg brothers, vho received title to the land from the Municipality of CobSn in 1 8 7 7 had established the plant in the l 8 8 0 ' s . ^ Otto Clauss^^ and the Helmrich brothers equipment. Subsequent owners, added nev buildings and By 1900, vhen the Helmrichs sold the property to the firm ^Cost estimate for preparation, shipment, and sale of coffee (November, 1900), Letterbook, "Varias Cartas," No. 3, p. 1*93, DC. 51Bill for coffee processed by EPD for Udo Winter, August 7» Letterbook, "Varias Cartas," No. 16, p. 33, DC; Letter: Max Krings for EPD,CCoban3, to Gerardo Schaart, Carcha, July 29, 1908, Letterbook, "Ferrocarril Verapaz," No. 3, p. 1*67» DC; El Eco Aleman (Guatemala), Afio A, No. 28, October 2 , 191**. 1908, 52 Land title to Chichochoc (August 29. 1877)* cited in ab­ stract for land sale document for Chichochoc (February 25, 1892 ), DS, "HiJos" Box. ^^Deutschtum in der Alta Verapaz. p. 30. 5l* Land sale document for Chichochoc (March 9, 1891), cited in abstract for land sale document for Chichochoc (February 25, 1892), DS, "HiJos" Box. ^Land sale document for Chichochoc (March 6 , 1896), DS, "Hijos" Box. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r of Stalling & Winter, it had tripled in value and vas worth more than 3,000 pesos Financial difficulties beset Stalling & Vinter, and consequently tvo years later Chichochoc reverted to the Helmrich family,^ from whom Dieseldorff purchased it for 3,000 pesos. There is, unfortunately, no record or inventory of the build­ ings and equipment that vere at Chichochoc when Dieseldorff acquired the plant, but evidence indicates that in the following years he made a number of improvements. In 1905 he bought a small locomotive engine and laid rails connecting the various buildings to facilitate moving coffee from place to another.^ This and other additions he made increased the value of Chichochoc, and in 1906 he insured the mill for U5*000 Marks (about $ 10,000.).^° By World War I the machinery installed there included an O'Krassa huller^1 that had a capacity of five tons, an O'Krassa sorter, a Gordon dryer, and a ^Land sale document for Chichochoc (March 13, 1900), DS, "Hijos" Box. 57 Notarized contract regarding Chichochoc betveen Stalling & Winter and Augusta Helmrich (June 2, 1902), DS, "Hijos" Box. eO Land sale document for Chichochoc (April 26, 190U), DS, "HiJos" Box. ^Letter: EPD, LCobfin!, to the Maschlenenfabrik R. Wolf, Magdeburg, May 29, 1905, Letterbook, "Ferrocarril Verapaz," No. 2, p. 877, DC. ^Fire insurance policy on the Chichochoc buildings and equipment, issued by Schvartze, Lubbers & Co., Hamburg, July 17, 1906, DS, "Varios" Box. ^Roberto O'Krassa vas a German-born resident of Guatemala who invented and patented a number of machines for processing coffee, including dryers, hullers, sorters, and vashers. Leyes de Guatemala. Vol. m i , pp. 272-273; Hegel, p. 56. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 23ll vater turbine. £2 During the 1920's Dieseldorff further expanded facilities at Chichochoc. To replace the antiquated O'Krassa machines-’ he bought 6k and a from the McKinnon Company an Ibercale model coffee grader Smout patent huller-polisher.8^ The nev machines cost more than $ 1,000., but vith them he vas able to handle increased amounts of coffee. The Smout-McKinnon vas particularly valuable, because it contained in one operation the function of tvo machines and thus processed the beans more rapidly. He also invested about $ 1,500. in other equipment, such as veighing scales,88 a vater pump, an indus­ trial drill, a pile driver, and a nev vater t u r b i n e a l l of vhich he needed to run the plant efficiently. At the same time he spent about $ 1,200. to enlarge the building that housed the machinery and to construct a nev drying terrace vith an adjacent gallery. 68 Dieseldorff powered the numerous machines at Chichochoc vith Co “^General inventory of EPD's properties made by the IGdG, March 31, 1919, DS, "Varios" Box. ^Inventory of Chichochoc (1930), DC. ^Letter: CEPD, Cobanl, to Vm. McKinnon & Co., Ltd., Aberdeen, Scotland, July 12, 1920, DC, Financial Correspondence. ^Letter: CEPD1, Cob&n, to Vm. McKinnon & Co., Ltd., Aberdeen, Scotland, April 11, 1928, Letterbook, "Varios Asuntos," Ho. 10, pp. 256-257, DC. 8**Letter: EPD, CobSn, to V. & T. Avery, Birmingham>CEnglandl, February 7, 1930, Letterbook, "Varios Asuntos, Ho. 12, p. 281, DC. ^Record books, "inventarios," 1919-1926, p. 79, DC; ibid., 1927-1931, pp. 2U, 36-37, DC. 68Ibid.. 1927-1931, pp. 2U, 36, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2321 electricity generated by a vater turbine. The north boundary of the property vae the Cobfin Fiver, and the plant vaa located about one hundred yards avay in order to escape daaage vhen the stream flooded. In 1901 Stalling & Winter had constructed a simple earthen dam across the river and dredged a canal to divert the vater to the mill. The current actuated the turbine, and the vater then floved through a second canal back into the river.^ Dieseldorff continued to use the 70 original machine until 1929, vhen he replaced it vith a larger one' in order to generate electricity for Santa Margarita as veil as Chichochoc, 71 and obsolete. By the early 1930's the old dam vaa in poor condition Since it vas a solid structure, it often caused flood- vaters in the river to overflov both banks and to cause considerable damage,^2 In 193b Dieseldorff, at his ovn expense, constructed a nev concrete dam vith three floodgates, vhich enabled him to regulate the vater level and to maintain enough vater in reserve to operate the turbine, 73 ^Notarized agreement betveen Stalling & Winter and Jose and Jacobo Christ (May 27, 1901), DS, "HiJos" Box. ^Record book, "Inventarios1927*1931, p. 2b, DC. 71 ___ Letter: EPD, Cobfin, to the Ministro de Fcmento, Guatemala, March 12, 1930, Letterbook, "Asuntos ante las autoridades," Ho. 1, p. 966, DC; Letter: Max Quirin for EPD, Cob&n, to the Ministro de Fomento, Guatemala, September 22, 1930, Letterbook, "Asuntos ante las autoridades," Ho. 2, p. 72, DC, ^ E1 Horte (.Coban, AV, Guatemala), Afio XX, Ho. 1008, October 19, 1929. 73 Letter: Max Quirin for EPD, CobSn, to the Jefe Politico, Coban, December 2, 1933, DS, "HiJos" Box; Letter: Jorge Erdmenger, Ingeniero Hidra&lico de Obras Pfiblicas, Guatemala, to the Direcci6n General de Obras Ftiblicas, Guatemala, June 9, 193b, DS, "HiJos" Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2331 Although Dieseldorff equipped the Chichochoc plant vith what he thought vas the best machinery available, he realized that mechani­ cal excellence alone vas not enough to guarantee goou results, xne numan element vas also necessary to keep the machines in perfect run­ ning order. Any malfunction could irrevocably damage the coffee. If the delicate mechanism of the huller-polisher vas off balance, for example, the rollers failed to clean the beans completely, or vorse yet, cracked them. If the grader vas not correctly adjusted, the coffee vas improperly sized, and the fault vas seldom detected until much later, vhen the coffee vas being sorted by hand. A sudden break- dovn might hold up operations for several days, and the delay could cause Dieseldorff to miss consignment dates. The processing machines vere so complex that Dieseldorff maintained on his staff a graduate mechanical engineer^ and several practiced mechanics^ to Inspect every piece of equipment in the plant and to make necessary adjust­ ments and repairs. Dieseldorff furthermore believed that it vas essential to have a skilled and trusted administrator at Chichochoc to supervise every stage of the operation. The man had to follov his orders im­ plicitly and to produce, on schedule, a commodity that vas up to the standards he set. To fill the position he vas fortunate to find ^Letter: EPD, Coban, to the Director del Departamento Nacional del Trabajo, Guatemala, February 21, 1929, Letterbook, "Asuntos ante las autoriiadea," No. 1, pp. 690-692, DC. ^Letter: Max Quirin for EPD, Cobin, to the Director del Departamento Nacional del Trabajo, Guatemala, September 3, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 555, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Ambroslo Ventura, a Cobanero vith experience in tha ooffaa buainaas, vhoaa work proved to ba ao aatiafaotory that Diaaaldorff kapt him aa manager of tha lnganio for more than thraa decades Vantura made certain that the coffee vaa vorkad in tha manner hia employer prescribed. Certain tricka that Diaaaldorff deviaed he vaa convinced im­ proved tha efficiency of the machinea and yielded better result!. The coffee beana, for example, vere to be put through the huller-polisher alovly, and the machinea vere never to be filled to full capacity. Hia reason for doing this vas that the friction involved in removing the husk generated a considerable amount of heat, and vhen the machine vas too full, the temperature rose to such a degree that the coffee vas desiccated and sometimes even scorched. His technique aimed to keep the beans as cool as possible in order to reduce the chances of their being ruined. sorter. Dieseldorff took similar precautions vith the Since size vas one of the main criteria used in determining the value of a lot of coffee, he strove for uniformity in separating the beans. An overloaded machine did a poor Job of grading, and he found that its performance vas improved by not rushing, but rather dropping moderate amounts slowly onto the screen.^ After the coffee vas completely cleaned and sized, the final step in its preparation vas hand sorting, a technique that is still ^Letter and enclosure; Max Quirin for EPD, Cobin, to the Jefe Politico, Cohan, August 26, 1926, Letterbook, "Asuntos ante las autoridadesHo. 1, pp. 5^3—5^*5, 5k7, DC; Ledger, "Libro Mayor," 1935-1937, pp. 115-119, 12k, DC. ^Dieseldorff, Per Kaffeebaum. pp. 28-32. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 23STJ used. The Indian vomen who did tha work had to ba axparienoad and poaaaaa a kaan aya and nimble flngara. Thay aat at long tablaa in a apaeial room that had skylightc and vindovs on all sides, becauaa natural light vaa neoessary for acourata Judgment. Working quickly, but carefully, they picked over each lot of coffee and took out cracked, broken, or discolored beans, immature and black beans, as veil as stones, pods, and any other foreign objects. The beans that passed inspection they dropped into a basket through a hole cut in the table, and the faulty ones vere pushed aside into a trough. Although the vork vas time-consuming, Dieseldorff had the best grades examined tvo or three times to assure a uniform high quality, for on the market coffees vere classified by the number of imperfections found in a cne-pound sample selected at r a n d o m . T h e vcmen vorked in short shifts, a fev hours at a time, because the Job vas tiring, and their level of efficiency dropped quickly. There vas usually an overseer stationed in the sorting room to check the quality of the vork. Since the task of sorting and resorting vas protracted, a great many vorkers vere needed to handle the large amounts that arrived from the fincaa, particularly during the period from late January to early April. Without enough laborers the mill ovner could not possibly get his crop to market on time. The demand for sorters, then as today, far exceeded the supply, and competition among the owners of the four retrillas in Cob&n for available hands vas keen. T^Ibid.• William H. Ukers, All about Coffee (Nev York, 1935), p. 7Vr. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r As a result the cost of labor vas high, and the women, well avare of their importance, tended to be a fickle and refractory group. The mill owners made vork contracts vith the vomen, and bidding started in the early fall. If a man procrastinated, he could easily find him­ self suorw of uanas and having to pay exorbitant rates.79 The labor problem at Chichochoc remained critical until Dieseldorff to some degree solved it by using the same tactics as he had in other such situations: Indians. he bought a property vith resident In 192U he purchased tvo small fincas, Sachamach, vhich vas adjacent to Chichochoc, and Tzimajil, situated nearby. Sachamach, established by the Sarg brothers around 1870,®® was one of the oldest coffee plantations in the Alta Verapaz, but subsequent owners had allowed it to run down. At the time Dieseldorff acquired it, it Q *j produced a mere fifteen hundred pounds of pergamino coffee a year. Tzimajil had no commercial crop at all.®*2 From Dieseldorfffs point of view, however, the tvo properties vere extremely desirable, for nearly three hundred adult Indians, "^interviews vith Mrs. Billie Neal de Cox, don Arturo Morales de la Cruz, don Guillermo Boesche, and don Manuel Burmester. ^Deutschtum in der Alta Verapaz. p. 21. ^Letter: EPD, Cobin, to the Alcalde 1° Municipal, Coban, April 27, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. W*2, DC. go Letter: EPD, Cobin, to the Alcalde 1° Municipal, Cobin, April 3, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 985-986, DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r o<* more than half of them vomen, lived on the land. There, as else­ where in the department, it vas easier to make work contracts vith the vives of one's colonos than vith Indian vcaen vho lived in the aldeas on communal holdings. Dieseldorff vas so eager to secure Sachamach that at one point in the negotiations he offered $ 1*0,000. for it and for another finca, vhich he did not particularly vant. AL The final price he paid for Sachamach and Tzimajil vas $ 10,000.®^ The amount vas high, in comparison, for example, to what he paid for the 86 Chiquixjl coffee producing lots ($ 7,500.), hut he vas convinced that having an assured lahor force for Chichochoc made the transaction vorthvhile. After hand sorting, the vork that remained prior to shipment vas bagging the coffee, sealing the sacks, and marking them. For export purposes Dieseldorff purchased double bags especially mode to protect the coffee in transit. Unlike the pergamino bags, vhich vere burlap, these vere made of a strong varped tvlll designed to withstand rough handling without splitting open. The inner layer vas waterproof ^Letter: EPD, Cobin, to the Alcalde 1° Municipal, Coban, November 19, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, p. 81*2, DC. ^Letter: CEPD, Cob&nl, to Paul Koester, CVerapaz Coffee Com­ pany P. Koester y Campa&lal, Coban, April 12 C1921U, DS, "HiJos" Box. f i r ?Land sole document for Sachamach and Simajil CTzimaJill (.May 8, 192U), DS, "HiJos" Box. og___________ Letter: EPD, Coban, to the Administrador de Rentas, Guatemala, March 2kt 1926, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 61*-65, DC. The original sale document is lost, but in this letter Dieseldorff states the amount he paid for the lots. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J I~* 23§1 to keep the coffee dry and prevent it from toeing ruined. Diesel­ dorff mainly used bags that had a capacity of 150 pounds, but he also bought the one hundred pound size since on some occasions mozos, rather than the usual ox-carts, carried the coffee to the Pancajch€ railhead. The price of the twill sacks vas high, nearly one dollar each,®® and consequently the total expenditure for an entire crop vas several thousand dollars. cheaper bags,®^ Other exporters vere willing to use but Dieseldorff believed that the type he bought radically reduced losses and vas therefore more economical in the long run. The mozos put the coffee in sacks, vhich vere then veighed to make certain that each contained the exact amount. the bags vere sewed shut by hand. tinsatisfactory. For many years This method vas not only slow, but It invited pilferage, because it vas easy to take out the stitches and remove part of the coffee. As a result the bags arrived to market short of the weight indicated.If the sewing vas not properly done, the thread unraveled and the beans spilled out of ^Letter: EPD, Cob&n, to Rosing Bros., London, July lit, 1898, Letterbook, "Varias Cartas," No. 1, p. 78, DC; Cost estimate for preparation, shipment, and sale of coffee (November, 1900), Letter­ book, "Varias Cartas, No. 3, p. U93, DC; Letter: EPD,CCoban3, to E. C. Smith, St. Altnna, Vermont, March 7, 1926, Letterbook, "Varios Asuntos," No. 8, p. 71» DC. ^Letter and enclosure: EPD, Coban, to the Ministro de Agri­ cultura, Guatemala, February It, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, p. 925, DC. 89 Bill for coffee processed by EPD for Udo Winter, August 7» 1908, Letterbook, "Varias Cartas," No. 16, p. 33, DC. on L ___ Letter: Paul 0. Mittelstadt and Hermann Buttgen for EPD, Coban, to the Gerente del Ferrocarril Verapaz, Livingston, November 16, 1915, Letterbook, "Ferrocarril Verapaz," No. 6, p. 19, DC. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r the b a g . ^ During the 1920's Dieseldorff began to use, instead of thread, heavy lead fasteners that closed the bags securexy and deminished the possibility of loss or alteration of the contents on route. 92 When using either system, Dieseldorff instructed his men not to close the bags too tightly, but to leave sufficient airspace 93 for the coffee to move in order to reduce the strain on the fabric.* Marking the bags was a chore that required constant super­ vision. The work had to be absolutely accurate, because the trade­ marks Dieseldorff used classified the coffee for market. Since beans from different altitudes or areas varied in quality, they were sold separately, and consequently coffees from each of the fincas were kept apart duri:..g the processing at Chichochoc. divided the lots into size groups. Sorting had further The trademarks indicated point of origin, variety, grade (firstB, seconds, or thirds), and destination, and for this reason they had to correspond exactly with t? ^ contents of the bag. Over the years Dieseldorff employed different marking tech­ niques, changing them from time to time in an effort to speed up the operation and increase efficiency. Originally the mozos painted the letters on with brushes, using black oil-base paint. The method, while in itself slow, was made even more so because most of the men ^Dieseldorff, Per Kaffeebaum. p. 28. 92 Letter: EPD, CCobanl, to E. C. Smith, St. Albans, Vermont, March 7» 1926, Letterbook, "Varios Asuntos," No. 8, p. 71» DC. 93 Dieseldorff, Per Kaffeebaum. p. 28. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J 24(T1 r were illiterate. Later Dieseldorff began to use tin stencils, vhich had the letters cut out. This too proved unsatisfactory since the rounded suape ox tne sacks tended to make the paint smear. In 1930 he purchased a movable-type, hand printing set that held rubber let­ ters, six inches high. Using indelible ink instead of paint, the simple apparatus enabled him to stamp the proper mark on each bag quickly.9** Dieseldorff used the same symbols year after year for every crop, because after his product became knovn on the market, buyers immediately recognized the variety and grade. The present-day firm continues to sell its coffee under the same trademarks. Dieseldorff trademarks date back to the l890's. ones were: Most of the Among the major "CHAJCAR R" and "CHAJCAR S & XM for the fancy, extra-hard bean Arabica from the Chajcar-Sechalb-Santa Cecilia district; "CHAJCAR GYP" for Maragogyp for the same area; "SECOL S & X" (called "SEACTE" before 1920) for Arabica from that finca; "SECOL R" for an exceptionally fine Maragogyp produced there; "EPD COBAN" for coffees grown around Coban and San Pedro Carchi,; "EPDG COBAN" for beans from the same region, vhich had been bought in the parchment; and "RAXAHA11 for Arabica from Raxaha and Chiquixjl.9^ Letter: EPD, Coban, to the Director General de Aduaaas, Guatemala, January 30, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, p. 922, DC. 05 ___ Interview with Mrs. Billie Neal de Cox; Letter: EEDr[CohanI, to Rosing Bros., London, July 7» 1898, Letterbook, "Varies Cartas," No. 1, p. 50, DC; Letter: EPD,CCobanl, to Valter T. Swingle, London, August 8, 1898, Letterbook, "Varias Cartas," Ho. 1, pp. 1M-1H6, DC; Letter: EPD, CCobanl, to Fredk Moller SShne, Bremen, February 13, 1926, Letterbook, "Varios Asuntos," No. 8, p. 12, DC; Bills of lading L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r After the bags were marked, they were ready to be shipped to market. Dieseldorff tried to send his coffee off as quickly as pos­ sible. He vanted to cover the loans he had made in order to save on interest charges. Furthermoret haste was essential to preserve the quality of the coffee, because the beans held a good color only a few months. After that time their value decreased, because they be­ came mottled and rapidly lost weight. As a result of the cultivation methods and preparation tech­ niques that Dieseldorff used, his production costs were higher than those of most other planters. In 1900 he estimated that it cost him between seven and eight dollars to produce one hundred pounds oro coffee, F.O.B. Coban.^ By 1930 the figure was almost d o u b l e . I n comparison, the Guatemalan average during the early 1930's was eight to ten dollars. ^9 Although Dieseldorff did not countenance any waste or extravagance and made concerted efforts to economize, he for coffee shipments, Letterbooks, "Ferrocarril Verapaz," Ho. 1, pp. lll*-2l*7, 252-1*38, 1*1*0-500, Ho. 3, pp. 1-20, 22-92, 95-361*, 367-1*69, 1*75-500, Ho. 1*, pp. 206-323 , 325-398, DC; Record books, "Consignacion cosecha," Ho. 1, pp. l-3l*, 36-90, No. 2, pp. 1-22, 25-33, 35-66, 6873, 75-77, 79-81, 83-86, 88-99, DC. ^Dieseldorff, Per Kaffeebaum. p. 28. 97 Cost estimate for preparation, shipment, and sale of coffee (November, 1900), Letterbook, "Varias Cartas," Ho. 3, p. 1*93, DC. A * Letter and enclosure: EPD, Coban, to the Ministro de Agri­ 98 culture, Guatemala, February U, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, p. 925, DC. 99 International Institute of Agriculture, "The World’s Cof­ fee." Studies of the Principal Agricultural Products .on_thd World Market, IX (Rome ."Slrr: ~ ^5.-----------— — — - — --------- L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2421 nevertheless was of the opinion that the additional expenditures he made were not only justifiable hut essential if he was to market a commodity of superior quality* He vas convinced that in the end he would profit from his investment, and often said, "The market vill 100 alvays pay fancy prices for a fancy article." The standards of excellence that he set earned his coffee a first-rate reputation in the European markets. The Dieseldorff trademark, buyers knew, was a personal assurance of high quality. Competition for his coffee was strong, and the rates the product commanded were commensurate with its quality. But for Dieseldorff the price of the reputation he en­ joyed was, throughout his career, an unusually high cost of produc­ tion, which remained constant or increased, and which somehow never rose and fell as the vorld market price of coffee did. 10®Letter: EPD,CCoban3, to P. Leckie & Co., London, July 14, 1898, Letterbook, "Varias Cartas," Ho. 1, pp. 79-81, DC; Letter: EPD, CCobinl, to Walter T. Swingle, London, August 8 , 1898, Letterbook, "Varias Cartas," No. 1, pp. IUU-1U6 , DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r n CHAPTER VII TRANSPORTATION AND COMMUNICATIONS IN THE ALTA VERAPAZ Coffee planters in the Alta Verapaz down to the present day have shared a common problem: department. kation. the absence of adequate roads in the Roads were essential to carry coffee to ports of embar­ The lack of them impaired development of the more remote areas, and severely limited the amount of coffee that could be ex­ ported. The Presidents of Guatemala and the Ministers of Develop­ ment periodically expressed an interest in improving transportation facilities. They ordered departmental and municipal authorities to build roads and enacted a corvie law, which they believed would pro­ vide the necessary manpower. They failed, however, to devise a comprehensive program and to appropriate sufficient funds to finance construction. Consequently, the problem of providing certain ele­ ments of an economic infrastructure, which continues to be a major problem of modern economic development in underdeveloped societies, had to be resolved on the local level by the residents of the depart­ ment. The finqueros and merchants of the Verapaz from the beginning recognized that they had to take the initiative to open neces­ sary lines of communication and transportation. several reasons, were the most active. The Germans, for Since they owned some of the largest plantations, they most strongly felt the need for an economic infrastructure and at the same time they recognized that it was to L 243 R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 244~l their benefit to undertake transportation improvements on their ovn. Furthermore, several members of the colony were engineers experienced in the construction of roads and bridges, while others had connec­ tions in Europe, vhich enabled them to obtain capital to build a railroad and to secure regular shipping service between Guatemalan and European ports. Although the concerted efforts of the Verapaz planters did a great deal to better conditions, they nevertheless lacked the capital resources by themselves to provide the type of transportation facilities necessary to develop fully the agricultural and commercial potential of the department. For example, they were unable to build anything that even remotely resembled a modern high­ way system, and to this day there is still not a single smooth, hardsurface road in the department, Ervin Dieseldorff throughout his career grappled with the problem of transportation. The initial improvements had been made in the Alta Verapaz before he arrived, but he became involved in the work after he settled in Guatemala. He not only invested his ovn money to open new routes to his fincas, but he cooperated with others in the search to find means of making bulk shipments of coffee from Coban to markets in Europe by faster and more efficient modes of transportation. Although he and his fellow planters succeeded only in ameliorating the situation, their accomplishments were considerable. The Alta Verapaz during the nineteenth century was perhaps the most remote and isolated of the highland areas of Guatemala. The mountains of the South Coast had been settled during the colonial L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r I 245 period by pereone of European descent, who had cultivated the land and had built roads, however rudimentary, to connect the major towns vith the capital. The Verapaz, on the other hand, was populated almost entirely by Indians,^* and up until the late nineteenth cen­ tury commercial activity existed only on the local level and agri­ culture was limited to subsistence crops. Although the province lay within 120 miles of Guatemala City, a series of broken mountain ranges, coupled vith the lack of any roads, effectively isolated it from the rest of the country. As a result the Verapaz was generally ignored by the national government for several decades following independence. During the l86o's the situation began to change, as outsiders — ladinos and foreigners— started to move into the department. At the time the influx began there were no roads anywhere in the vast region, but rather only footpaths used by the Indians. The first outside settlers, such as Julio Rossignon, Franz Sarg, the Baron Oskar von Nostitz, and Peter G&nther, saw the economic potential of the area, particularly the northern section, but they knew that in order to ex­ ploit its possibilities better transportation facilities were an absolute necessity. The establishment of transportation lines out of the Alta Verapaz to Europe presented a number of problems. The shipment of goods overland by vay of Guatemala City was impractical, because the ^The Alta Verapaz has continued to be an "Indian” department. The 1921 census, for example, reported that Indians comprised 95*7 % of the population, and in 19^0 the figure was 93.9 %• Fomento (192U), pp. 3U1-3U2 ; Guatemala. Qhitito csnao general de tohlacion levantado el 7 de Sbril de 19»0 (Guatemala, 19^2), pp. 21^-215. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r distance and the terrain made the Journey difficult and expensive. Even after the cargoes had reached the capital, they had to be trans­ shipped to ports, vhich were far avay. The most direct and therefore the most commonly used route was a path from Cobin to the fluvial port of Panz6s on the Polochic River, and thence by water down the Polochic, across Lake Izabal and down the Rio Dulce to the port of Livingston on the Bay of Honduras. The topography of the department made the seventy-five mile trail between Cobin and Panzos the hardest part of the trip. The first segment from Cobin through Santa Cruz, Tactic, and Tamahti to Tucuri traversed a rugged mountain range, where no passes existed to facilitate crossing Between Turned and Panzos the trail dropped sharply and passed through a marshy, mosquito-infested lowland where malarial fevers were endemic. Transportation from Panzos presented no great physical problem to light craft, but snags in the Polochic, and bars at the mouth of that river and of the Rio Dulce impeded the use of larger cargo vessels. The recently arrived settlers appealed to the government for assistance in building a road from Cobin to Panzos. Rossignon*s re­ port to the Consulado de Comerciop was particularly effective, and gradually the government began to take greater interest in the depart­ ment. In the late l860's the President of Guatemala, Vicente Cerna, 2Julio Roasignon, "La barra del Rio Dulce," La Sociedad Econ&hica de Guatemala. Ill, 1*6 (June 15, I87U}, pp. 3-1*. 3Julio Rossignon, Porvenir de Id VefdpaZ en la Republica de Guatemala, memorla dedicadd al Consulado de Comereio de Guatemala (Guatemala, l&6lj, J R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r made a tour of inapection of the Verapaz. While Cerna vaa in Cobin, Franz Sarg took the opportunity to point out to him that the commer­ cial development of the region depended on the conatructlon of a Cobln-Panz6s road. In the months that followed Sarg wrote numerous letters to President Cerna, to the Minister of the Interior, Manuel Echeverla, and to the Minister of Justice, Jos6 Maria Savaria, vho was also President of the Socledad EconSmlca de Guatemala. As a re­ sult, Cerna in 1870 ordered the building of the road,** and the Consulado appropriated 3,000 pesos for the project.5 Sarg obligated himself to survey the route and to direct the work gratuitously. He conmenced immediately, assisted by Peter GQnther, whom he appointed foreman, and a Guatemalan engineer assigned to him by the govern­ ment.^ Unfortunately the timing vas unpropitious. In 1670 a revolution broke out in Guatemala and disrupted work on the road. Sarg attempted to continue as best as he could^ but for the next few years the unsettled state of affairs in the country hindered progress. Moreover, he faced the resistance of the Corregldor of the Verapaz, vho strongly opposed the opening cf a road from Cobin **Franz Sarg, nAlte Erinnerungen an die Alta Verapaz," Deutschtum in der Alta Verapaz (Stuttgart. 1938), p. 17* Hereinafter tka Saapg account is cited as: Sarg, Alte Erinnerungen." References to any other part of the book are cited as Deutschtum in der Alta Verapaz. In the bibliography the book is listed only under its title. •*La Socledad Ecoitfimlca de Guatemala. II, 12 (December 31, 1870), p. 93. ^Sarg, "Alte Erinnerungen," pp. 17-20. ^BOletlh OfiCial (Guatemala), Vol. I, Ho. 2k, January 11, 1872. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r to Panz6a, because he feared that as a result the northern half of the province® would flourish at the expense of the other section. Thus construction of the road was delayed for several years. Yet at the sane tine coffee production was Increasing, and the trans­ portation situation became more desperate every year. One planter, Charles Meany, attempted to ship his coffee by water, down the Carchi and Cahab6n Rivers to the Polochic. He found this to be impossible, however, because not only were there numerous snags and rapids along the route, but frequently the streams ran underground for several mileB.^ His experiment reinforced the conviction in the department that the Cob&n-Panzos route was the most practical line out of the Verapaz, and the plantation owners continued to press the government to build the road. The new regime, consolidated under the leadership of General Justo Rufino Barrios, listened to the petitions of the Verapaz. Barrios was eager to foment the economic development of Guatemala and recognized that roads were of primary importance. Nevertheless, he did not act quickly enough to satisfy the planters and merchants of the Coban area, vho Joined together and volunteered to provide the necessary funds. Barrios declined the offer, because he believed that road construction was the responsibility of the government. ®The present-day Alta Verapaz and Baja Verapaz were a single political unit until 1877 when the province vas divided into two separate departments. Leyes de Guatemala. Vol. II, pp. 107-108. ^Julio Rossignon, "La Verapaz," La Socledad Economica de Guatemala. IV, 3b (June 2b, 1876), pp. 1-2. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 2491 Instead, in May, 1876, ha ordered the opening of a aart road between Cobfin and the old port of Telemln.*0 situated on the Poloohie down­ stream from Pansfis. Construction of the road began in 1876 under the direction of Frans Sarg. With the assistance of Julio Rossignon and Peter Gflhther work was carried on simultaneously at several points along the route.^ The government paid for the operation, but the cost was relatively low. Few tools, except for picks and shovels, were used, and these were supplied by the plantation owners. Labor was free, because the Jefe Politico, General Luis Molina, a strong sup­ porter of the projectstringently enforced the corvtie law that re­ quired every male between the ages of fourteen and fifty to pay an annual road tax of two pesos or work on public roads for six days. 13 The work gangs that Molina provided were made up of Indians who were unable to pay the tax. The planters cooperated by sending the Indians attached to their fincas to work on the road, and local ^•^Leyes de Guatemala. Vol. I, pp. UU1-UU2. ^Rossignon, "La Verapax," p. 2; Guatemala, Memorlas de las Secretaries. "Minister!o de Fomento" (Guatemala, 1879)1 P. 39. 12CEmilio Rosales Poncel, "Relato de tres Spocas; perfiles hist6ricos de Alta Verapax. Primera 6poca, I," El Norte (Cobfin, AV, Guatemala), AfSo XXIX, No. 1M9, July 16, 1938, p. 2. ^Leyes de Guatemala. Vol. II, pp. l4l-lM, A similar law is still in effect although over the years the amount of the tax and the equivalent work requirement have been increased or decreased from time to tive. The lav did not exempt foreign planters and merchants (after two years9 residence), or Guatemalan ones, but the tax was not onerous for them. For the Indians, however, whose economic transactions usually depended on barter or paymentinkind, and vho rarely had actual cash, it was a prodigious sum. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2307 authorities rounded up the men from nearby villages. Progress was slow. The Indians were totally lnexperleneed and required constant supervision, and few of the native overseers knev anything about road building either. In addition, the climate and terrain of the department made construction difficult. On the Cobin-TucurG segment it van necessary to cut through virgin mountain, and from Tucurfi to PanzSs the dense, tropical vegetation grev back almost as fast as it was cleared. Moreover, the work could be car­ ried on easily only during the brief dry season, and the ensuing rains frequently erased the accomplishments. Landslides and erosion caused by seasonal rains often destroyed sections of the road and repairs were constantly necessary.^ As the line neared La Tinta the deep gorge at the ChascoJ pass, where the road crossed the Polochic, presented a final obstacle. Here the Baron von Nostitz erected an iron bridge of his ovn design and thereby cleared the way for completion of the road.^ In l88l the cart road between Coban and Panzos was at last finished.^ To an outsider it was hardly an impressive piece of work, for it was nothing more than a narrow strip of crudely leveled 17 ground without permanent surfacing. ' But for the people of the ^ Memories de las Secretaries. "Fomento" (1880), pp. 20-21. ^ Ibid. (l88l), p. 33. Von Nostitz also built a number of other bridges in the department, and, according to Ervin Dieseldorff, he made a substantial amount of money doing this work. EPD to his mother. Letter# 8, November 10, 1888, DC. ^ Fomento (1882), p. 20. 17 'Adrian Rosch, Allerlei aus der Alta Verapaz. Bilder aus dem deutschen Leben in Guatemala (Stuttgart. 193^), p. 92. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r Verapaz it vas a great triumph. Although it did not cut travel time appreciably (about eight to ten days in dry weather), it did free native burden-bearers, hitherto the only usable carriers, for work on the fincas by permitting the substitution of carta for Indians as a means of transport. During the l880's plantation owners, with government support in the form of Indian work gangs, gradually began to open new roads to connect the interior of the Alta Verapaz with the Cob&n-Panzos ■lO artery. From Cob&n roads were begun southwest to Chixoy; east to San Pedro CarchS, and on through that town to the fincas Chimax, Chajcar, Sasis, and Chicacao (Xicacao); south to San Juan Chamelco; and north to the fincas Saxoc and Cubilgfiitz. From Santa Cruz, situ­ ated on the Cob&n-Panzos route, a road was opened west to San Cristfibal; and from PanzSs, northwest to Senahfi.19 These roads were even more primitive than the one from Cob&n to Panz6s. Some could accommodate ox-carts during the dry season, but most were merely narrow, unsurfaced trails that served as mule tracks. Nonetheless, they were an improvement, for they crossed the major coffee producing areas, and thus provided a route for the transport of the crop either to Cob&n, the economic center of the department, or to the trunk-line out of the Verapaz. In order to make use of the new roads, Germans sought to inn prove the available means of conveyance by importing carrier vehicles ■^Fomento (1889), p. U ; El Porvenir (Coban, AV, Guatemala), A2o 1, No. 6, March IT, 1889. l9Fomento (1882), pp. 20-21j lbid.(l890). pp. 95-96. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2521 and animals into the department. Franz Sarg vas again the pioneer. In 1878 he received a contract from the government to import cart wheels from the United States,2® and during the 1880's he brought forty pairs into the department. The heavy wooden wheels were about forty-five inches high and were constructed with four large spokes to facilitate travel on muddy roads. With iron axles also imported from the United States, Sarg assembled two-wheeled, flat-bottomed carts. He purchased one hundred oxen to pull them and trained Indians to drive the vehicles. 21 Since ox-carts were extremely slow and cumbersome, other planters sought to find faster means of transport. One German intro­ duced four-wheeled, mule-drawn wagons, but these proved unsatisfac­ tory, because they mired easily in muddy places and did not maneuver well the sharp turns and steep descents of the road. op Another German sought to use mules as pack animals, but while these were acceptable carriers for bringing coffee from the fincas to CobSn, they lacked the stamina to survive the long, arduous Journey from Coban to Panzos.2^ Many finqueros, lacking the capital to import vehicles and animals, continued to employ Indian carriers. They were constantly faced with the problem of obtaining permanent laborers in sufficient numbers to supply requirements both for finca workers and porters. 20Memorias de las Secretaries, ”Fomento" 21Rosch, p. 93. 22Ibld.. pp. 2k (1879), p. 7* U2-U3. 23Ibid.. p. 93. pli El Porvenir. Ano 1, No. 1*5, December 1, 1889. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 253~f For the Indian burden-bearers the trip vas a health hazard. They were accustomed to the cold climate of the highlands and often suc­ cumbed to heat exhaustion and malarial fevers on the Tucur6-Panz8s segment of the road. In the long run, plantation owners concluded that ox-carts were the most suitable vehicle of conveyance, and these were used veil into the twentieth century. In l88l, the year that the Cob&n-Panzos road opened to traf­ fic, the merchants and planters of the Alta Verapaz secured regular steamer service between Panzos and Livingston by a contract signed vith tvo Americans, J. F. Anderson and William Oven. 25 Prior to that time the only means of transportation between the tvo ports vas by canoes, manned chiefly by Caribs from Livingston, vhich provided only slow, sporadic service. Although a steamer line had been proposed on nC several occasions, the projects had failed to materialize, because at the time there vas not enough traffic betveen Panzos and Livingston to make the run profitable. About 1880 Anderson, vho had become interested in the growing coffee industry in the Alta Verapaz while vorking on the Pacific coast of Guatemala, came to the department vith a proposal to operate a steamer betveen the ports. A number of Cob&n businessmen, chiefly Germans, vho saw that the service would be of benefit to them, agreed to provide part of the capital needed to purchase a vessel. They also undertook to clear the Polochic of debris and to dredge the sand ^ Fomento (1882), pp. 35-36. ^ Gaceta de Guatemala (Guatemala), Vol. XVI, No. 1, January 16, 1869; Memoriae de las Secretarias. "Fomento" (l879)» p. 83; Leyes de Guatemala. Vol. Ill, pp. 267-268. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 254~1 bars at the mouth of that river and the Rio Dulce to permit naviga­ tion. Anderson bought a small paddle-wheel steamer, the Monkey, and 27 found a pilot, William Oven, whom he took into partnership. ' They inaugurated a bimonthly run and subsequently acquired another boat pO and several lighters to increase service. At the time that Ervin Dieseldorff settled in the Alta Verapaz the Coban-Panzos road had been opened and the Anderson-Oven line in oper tion for nearly ten years. The transportation improvements, he saw, had been short-lived, and the situation vas once again critical. Coffee production had nearly doubled in the decade betveen 1880 and 1890, and neither the road nor the steamers were capable of handling the increased load. Each year during the vet season torrential rains destroyed large parts of the road, and the repair vork, vhich vas done by Indians under the corvSe lav, could not keep pace vith the damage. Since the government appropriated little money for maintenance,29 -such repairs as vere carried out were but stopgap measures, such as remov­ ing fallen boulders, clearing the roadbed of vegetation, and filling low spots vith rock. ^ During rainy weather many segments vere 27Roseh, pp. 91-92. pQ El Quetzal (Cdb£n, AV, Guatemala), AHo 3, No. 6U, February 1 , 1882. 29 In 1892, for example, the government allotted only 1,000 pesos for vork on the Cobin-PanzSs road. Fomento (1893), p. 8. 3°Ibid. (1888), p. 10; ibid. (1889), p. I1*; ibid. (1890), p. 336; El Guatemalteco (Guatemala), Vol. XII, No. 21, October 29, 1889; ibid.. Vol. XIII, No. 77, May 13, 1890. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 255I virtually impassable.^1 The Anderson steamers also had fallen into disrepair, and schedules had become so irregular and service so un­ reliable that exporters frequently missed consignment dates. ^ A severe transportation lag developed, and the situation reached a head in 1893, when at the end of the dry season almost tvo entire coffee harvests still lay in CobSn awaiting shipment.^ Influential members of the German community in Coban decided that the problems could be solved only through a Joint effort. they set out to improve steamer service. First Led by V. A. Dieseldorff, they formed a Joint-stock company, the Compafiia de Agencies y Trans­ poses del Norte, for the purpose of buying out the Anderson-Oven interests in the Panzos-Livingston line. The company received a n charter from the government in 1893 ,3 U and it immediately began to sell stock at $ 500. a share. The initial capitalization vas $ 50,000., but the amount could be increased up to $ 200,000. by a vote of the stockholders.^ Ervin Dieseldorff invested in the firm, but the number of shsires he bought is unknown.J The Bocurd of Direc­ tors consisted of W. A. Dieseldorff, Ernesto Marroquin, a Guatemalan finquero in the Verapaz, and tvo other German planter*, Theodor ^Rosch, pp. 92-91*. ^ El Porvenir. A80 5', No. 193, August 6 , 1893. ^Rosch, p. 92. J Leyes de Guatemala. Vol. XII, p. 110. ^CompaSla de Agendas y Transportes del Norte, Estatutos de la Compagia de Agendas £ Transportes del Norte (Guatemala, 1893;. 36 Ibid., annotation on cover. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2561 Stalling and Moritz Thoma.37 The new firm reestahliahed regular cargo and passenger service between Panzos and Livingston,3® and added service from the two ports to the town of Izabal.3^ For Panzos-Livingston traffic the rates charged, as set forth in the company statutes, could not exceed $ 0.75 per hundred pounds, and the limit for passenger fare was $ 8.00, lil The operation proved to he profitable, able to acquire additional vessels. and the company waa soon In 1896 W. A. Dieseldorff ob­ tained for the company from the Guatemalan government a three-year contract, carrying an annual subsidy of 12,000 pesos, to provide mail, cargo, and passenger service daily between Livingston and Puerto Barrios, and weekly between Livingston, Izabal, and Panzos. Uo The agreement, which was renewed in 1899,**3 not only increased the com­ pany's revenues, but more importantly, it allowed duty-free import of boats and launches, as well as of fuel, equipment, and other articles necessary for operation and upkeep of the vessels, and guaranteed 37Ibid.. p. 3. 3®E1 Porvenir. AHo S’, No. 19**, August 13, 1893. 39compa2ia de Agendas y Transportes del Norte, Reglamento interior de la Compadia de Agendas £ Transportes del Norte aprobado en .junta general ordinarla. celebrada el la de .julio de 1&95 ^Guatemala C18953). ^°Compafiia de Agendas y Transportes del Norte, Estatutos. pp. 9-10. UlEl Polochic (Coban, AV, Guatemala), ASo 2» No. 1(6, May U, 1895. ^Leves de Guatemala. Vol. XV, pp. 399-^01. **3Ibid.. Vol. XVIII, pp. 178-181. The annual subsidy was re­ duced to 6,000 pesos since the company had operated at a profit under |_ the directorship of W. A-. Dieseldorff. | R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r 2571 reserved docking space at public wharves and freedom from interference by local authorities. Meanwhile, the road from Cob&n to Panzos vas still in deplor­ able shape, particularly the swampy thirty-five mile stretch from Tucurfi to Panzos, and coffee planters in the department seriously be­ gan to regard the construction of a railroad as the only possible solution. Such a venture had been projected as early as l88U,^ and later in 189^ the government had granted a concession to the Sociedad Agrlcola del N o r t e a Coban-based organization headed by Ernesto Marroquln, the purpose of vhich vas to foster the agricultural de­ velopment of the department.^ The Sociedad, hovever, had been unable to achieve results, because it lacked the capital for the undertaking. In the fall of 189b, W. A. Dieseldorff persuaded the stock­ holders of the CompaSla de Agendas y Transportes del Norte to con­ sider forming a second company to carry out the project if they could obtain a transfer of the Sociedad Agrlcola*s concession.^ They ^Ibid.. Vol. IV, pp. 197-200; La Voz del Norte (Salama, BV, Guatemala), ASo 2., No. 52, September 10, TSSk, ^ Leyes de Guatemala. Vol. XII, pp. 339-3^1. Sociedad Agrlcola del Norte, Estatutos de la Sociedad Agrlcola del Norte (Aprobados por Acuerdo Gubernativo de 29 de agosto.) (Guatemala, 1892). 1*7 'Material regarding the financing of the railroad comes from the folloving sources, vhich contain verbatim copies of W. A. Diesel­ dorff* s reports to the stockholders of the CompaSla de Agendas y Transportes del Norte, as veil as the minuteB of the stockholders' meetings: CompaSla de Agencies y Transportes del Norte, Copia del acta de la CompaSla de Agendas £ Transportes del Norte, que se acordo"*publicar (CGuatemala. 18953): El Polochic. ASo 1, No. 39, February 10, 1895i ibid., ASo 2, No/TiS, May **, 1895. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2581 proposed to build a line from Panzos to Tucurfi, and employed Silvanus Miller, an engineer from the United States vho had also worked on the Ferrocarril del Norte in Guatemala, to survey the route. He estimated that construction costB, materials, and equipment would require an investment of about 1,800,000 Marks. The company vas unable to raise the entire amount locally, and therefore Dieseldorff in November, I 89 U, traveled to Europe to seek financial backers, vith vhom he vas empowered to enter into contract. Dieseldorff presented his plans to bankers in Nev York, Paris, London, Brussels, and Berlin, but for the first few months his efforts vere fruitless. He found that most financiers vere vary of investing money in Latin America. Railroad schemes in particular vere regarded as bad risks owing to the disastrous failure of a German railroad project in Venezuela. After numerous disappointments, he decided to try Hamburg, where he had commercial connections vho knew of the growing coffee industry in the Alta Verapaz and of its profit poten­ tial. In Hamburg he finally found persons receptive to his proposals. The firm of G. Muller & Thomsen, one of the largest coffee import houses in the city, agreed to help finance the venture. With the assistance of Gustav Muller, the senior partner, Dieseldorff found additional investors, and a banking firm, vhich promised to extend credit in the form of mortgage bonds if Dieseldorff raised 1,000,000 Marks in subscriptions. In March, 1895, a group of nineteen investors — individuals and representatives of ccmmercial houses, including several Verapaz planters— signed an act, vhich formally created a Joint-stock company to build the railroad. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2591 The group raised a total of 835»000 Maries among themselves. The major Hamburg investors vere G. Miiller & Thomsen (150,000 Marks), Adolf Kirsten (100,000 Marks), and Riensch & Held (100,000 Maries). Subscribers from Guatemala included Vidal Hermanos (100,000 Marks), Dieseldorff & Co. (50,000 Marks), Friedrich Gerlach (50,000 Marks), and H. R. Dieseldorff (20,000 Maries). There vere also tvo United States investors, G. Amsinck & Co. (50,000 Maries) and Chase and Sanborn (20,000 Maries). G. Miiller & Thomsen vere to act as agents for the company in Germany. While W. A. Dieseldorff vas in Europe, his cousin Ervin vas handling important matters for the CompaHia de A g e n d a s in Coban. Since he vas Just getting started in business, the amount he vas able to invest in the project vas small, 5,000 Marks, but he contributed to the success of the venture in other vays. He negotiated the trans­ fer agreement of the Sociedad Agricola concession and secured favor­ able terms. Later he received power of attorney to handle the com* pany's legal, financial, and administrative affairs in Coban. U8 W. A. Dieseldorff returned to Coban in April, 1895» and pre­ sented his report to the CompaHia de Agendas. Subscriptions and pledges had nearly reached 1,000,000 Marks, and the vay vas clear to begin the sale of bonds in Germany to raise the remainder of the capi­ tal. From Guatemala there vere no fever than fifteen German and tventy-nine Guatemalan investors, vho subscribed more than 375*000 Document: "Escritura pfiblica de mandato ortogada por el Superitendente Gral de la Cia. del Ferrocarril Verapaz y A g e n d a s del Norte Limitada a don Ervin P. Dieseldorff, Coban" (October 15, 1898 ), DS, "Varios" Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J 260~l r Marks. At s shareholders' meeting (the majority of the CompaSla de A g e n d a s stock owners had also subscribed to buy shares in the rail­ road ccaipany) It vas decided to merge the tvo companies in order that the profits from the steamship line be used to guarantee the 8 % an­ nual return demanded by the Hamburg investors while the railroad vas under construction. In August, 1895, the government approved the transfer of the railroad concession held by the Sociedad A g r l c o l a , ^ and in May, 1896, the nevly consolidated organization vas chartered as the CompaSla del Ferrocarrll Verapaz y A g e n d a s del Horte, Limitada ,^ 0 vith W. A. Dieseldorff as its director* The company hired Silvanus Miller as construction engineer, and vork began in 1896 . ^ Since the railroad vas to be a narrow gauge line, the company imported most of its equipment and material from Europe. From Germany it secured iron bridges, rails, and steel ^ Leyes de Guatemala. Vol. XIV, p. $k. The concession gave the company a ninety-year monopoly on the railroadrbetveen Panzos and Tucurd; a gratuitous title to land extend­ ing one hundred feet on each side of the tracks} an additional one hundred csballerlas (11,150 acres) of land to provide timber for fuel, buildings, and railroad ties; a subsidy of 10,000 pesos in government bands for each mile built; and exemption from import duties on con­ struction materials, food for laborers, and other articles needed to build the railroad. The bonds issued by the company vere to be amor­ tized from the imposts collected by the government on coffee exports. The contract also established the maximum freight and passenger rates the company could charge. Ibid., Vol. XII, pp. 339-3^1; ibid., Vol. XVI, pp. 268-270. 5 °Ibid.. Vol. XV, p. 101. ^^For a detailed description of the actual vork of construc­ tion see: Roach, pp. 9^-99} Guillermo Sides Falcon,"German Contri­ butions to the Economic Development of the Alta Vera Pax of Guatemala, l865-1900“(Unpublished M. A. Thesis, Tulane University, New Orleans, 196l), pp. 7^-75. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 2 6 l" ! Joists, as veil as tvo locomotives, on# passenger ear, twenty-six flatcars, and six boxcars of tventy-ton capacity. In the United States it purchased vheels and ball-bearings for the construction of rolling stock 52 In June, 1097» a twenty-mile section from PanzSs to La Tinta vas opened, but then the company ran into administrative and finan­ cial difficulties. At this point Miller suddenly and vithout reason quit, and the company had to find another engineering firm to con­ tinue the project. Work vas suspended for several months until the company engaged F. H. & P. Prescott from the United States. Ex­ penses, meanwhile, mounted rapidly, and costs vere exceeding the original estimates. The Prescotts first of all had to undertake ex­ tensive repairs, because seasonal floods had damaged parts of the completed line, and a severe earthquake had destroyed several miles of track and a number of bridges. The engineers also found that they had to resurvey the route from La Tinta to Tucurlx. Further add­ ing to the building costs vas the pestilential climate, vhich had so decimated the vork gangs in the past that laborers vere almost impos­ sible to get at any price. By the end of the year the company had spent most of its capi­ tal, and the situation appeared bleak.^ W. A. Dieseldorff sought ^Compafila del Ferrocarril Verapaz y Agendas del Horte, Ltda., Memoria de la Buoeritendencia de la ConpsBia del Ferrocarril Verapaz jr Axenciy del Horte. Limitada. sobre el curso del negoclo durante cl aflo de lfl9(S (Guatemala. C18973) . p. 5} F. C. von Erckert, "Die virtschaftlichen Interessen Deutschlands in Guatemala," Beltraxe zur Kolonialpolltik und Kolonialvirtschaft. Ill (1901-1902), p. 278. 53compafila del Ferrocarril Verapaz, Memoria (1097), p. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2621 the asalstanee of the Hamburg backera, vho agreed to aupply the ad­ ditional funda the company needed on the condition that they be given excluaive financial control and ovnerahlp of the firm. On thla baala another 500,000 Marks in bonds were sold in Germany, and the money enabled the company to reaume vork on the railroad. The topography of the area beyond La Tinta preaented tremen­ dous physical problems to the construction engineers. Outside the town they encountered steeply rising terrain vhose abrupt contours the old cart road followed until it crossed the Polochic. Construc­ tion of a railroad bridge approached by a safe grade was impossible under these conditions, so the engineers vere forced to abandon the route of the cart road and blaat the roadbed out of the rock vail of the narrow Chamiquln gorge along the river. Under the circumstances progress vas slow and construction costs were high. After almost a year of vork the builders had completed only an eight-mile segment to Pancajchtf. Construction of this short sec­ tion, vhich cost more than 1,OCX),000 Marks, completely exhausted the resources of the company. The engineers estimated that in order to extend the tracks to Tucurd, eight and a half miles beyond Pancajcht, they would require an additional 250,000 Marks. A sudden drop in the coffee market during the 1897/1898 harvest season made it impossible to obtain more money, and the little town of Pancajcht therefore be­ came the permanent inland terminal of the line. Service betveen that 5**Ibid. (1898), p. 13. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 2631 point and Pant6a vas inaugurated in July, 1898.*^ Tha railroad waa of graat aoonomio valua to tha Alta Verapaz. Although it vaa not complatad to tha propoaad daatination at Tuourd, it nevarthalaaa provided aarvioa over tha moat diffloult part of tha route from Cobin to Panzda and ahortenad tha time required for tha trip between the two towns. Thla reliable mode of tranaportation helped to relieve the labor ahortage in the department and encouraged planters to grow and export more coffee. Up until World War II the Ferrocarril Verapaa carried almost all the coffee exported from the area. In 1897» while the railroad was still under construction, the Compaftfa del Ferrocarril Verapaz secured regular steamship service be­ tveen Livingston and European ports by agreement with the HamburgAmerica Line. Hitherto, Livingston had been regarded as a minor port, and service out of it vas irregular, provided by British or United States ships, which made occasional stops t h e r e . ^ The Compafila del Ferrocarril Verapaz, through the commercial connections of its members (some of whom owned stock in the Line, as Ervin Dieseldorff did), 57 contracted the Hamburg-America Line to send two ships a month to ?5Ibid. . pp. l»-5, 18. In January, 1900, W. A. Dieseldorff died of malarial fever contracted while he vas working on the rail­ road. Had he lived the line might possibly have been completed to Tucurd, or even to Cob&n, as some proposed, but his death robbed the project of its chief proponent and left the company without a strong leader. ?6E1 Ouatemalteco. Vol. XII, No. 80, January 9, 1890; El Progreso Haclonal (Guatemala)« Vol. I, No. 4, September It, 18957 5?Le£ter: CEPD, Cob&nD, to the Hamburg-Amerika Linie, Ham­ burg, February 1, 1921, DC, Financial Correspondence. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 264 1 Livingston during the harvest season, and one a month at other times. The company also agreed to carry freight to and from Europe at a uniform rate. As a result of the contract, German steamship service in­ creased. By 1900 the Hamburg-America Line vas carrying more than 90 % of the coffee shipped out of Livingston. Service continued uninterrupted until World War I, when it vas halted. company resumed a regular r u n . ^ In 1921* the During the 1920'o the Hoyal Dutch Line also provided service out of Livingston, but coffee exporters, such as Ervin Dieseldorff, preferred to use the Hamburg-America ships, vhich made fever stops elsevher« in the Caribbean and consequently reached their European destinations sooner. Shipping out of Livingston presented the railroad company vith a serious problem. Physically the port vas far from ideal, for it vas extremely shallov and deep-water vessels could not enter the harbor. Ships had to anchor more than a mile out at sea and load and unload cargo there. In order to accommodate large ocean-going freighters at the port, extensive dredging of the harbor vas neces­ sary. Yet neither the municipal authorities (vho collected a wharfage ^®Erckert, p. 281. 59e i Norte. ASo XIII, No. 653, January 26, 1921*. ^Letters: EPD, CCobfinl, to the Ferrocarril Verapaz office, Livingston, January 19, and October 23, 1925, Letterbook, "Ferrocarril Verapaz," No. 7, pp. 160, 2l*5, DC. The United Fruit Company had service betveen Livingston and the United States, but the line vas not often used by the coffee exporters of the Alta Verapaz, vho shipped their product mainly to European markets. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r tax of $ 0*10 on each one hundred pounds of freight that passed through the port), nor the national government undertook to improve facilities. The railroad company lacked the financial resources to do the work itself. Unable to find a better solution, the company had to resort to using lighters, slow and inefficient as they were, to transport cargo and passengers between the wharves and the ships, and it purchased several small vessels for this purpose.^1 Although the Ferrocarril Verapaz and its maritime division greatly benefited the coffee exporters of the department, the deteri­ orated condition of the Cob&n-PancaJch€ road continued to hinder the shipment of cargoes to the railhead, for it caused serious delays and expensive losses of animals and equipment, which made transportation costs extremely high. Between 1900 and 1922 repairs were carried on as usual by Indian labor gangs under the road work lav,b^ out sults were unsatisfactory. re­ Without trained overseers and engineers, without a definite, comprehensive plan, and without machinery of any sort, the improvements were understandably primitive and superficial, and the available manpower was inefficiently used. In 1909, for exam­ ple, 1,012 men working six days each on the Coban-PancaJch€ road re­ paired 2.8 miles, cleared 21 miles, and graded 3.3 miles. ^ F o m e n t o (1907), pp. 132-133; Manuscript financial statement of the C o m p a M a del Ferrocarril Verapaz y A g e n d a s del Norte (1923), DC. ^Statistical data on the work done during this period appear in the annual reports of the Minister of Fomento. ^ F o m e n t o (1909), pp. 58-60. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 266~1 Most of the route lacked conduits along the side of the road­ bed, and transverse drains as veil. formed in low areas. As a result, deep mudholes The Indian work gangs filled the mires vlth rock, but as they vere seldom instructed hov to do the Job properly, that is, to dig the mud out first, heavy rains quickly washed avay the f i l l . ^ The lack of government appropriations for road vork further compounded the problem, for although most departments in Guatemala received funds from the Department of Public Works, in the Alta Verapaz repairs vere generally financed from the road tax col­ lected— an infinitesimal Bum since there vere fev non-Indian resi­ dents in the region vho could pay it.^5 Some planters vere able to ameliorate somewhat their own transportation problems by purchasing land in the vicinity of Pancajchi and erecting warehouses on it. This enabled them to take advantage of brief dry spells to transport coffee from Coban and to store it near the terminal until time for shipment. 66 Ervin Dieseldorff purchased Paija in 1896 , struction of the railroad began. For this reason about the time that con­ Others vho acquired properties in the area included Dieseldorff & Co., Richard Sapper, Sterkel Hnos., ^ I n 1912, for example, 281 such holes vere filled with rock, and the following year 367 . Ibid. (1913), pp. 53-5^; ibid. (191*0, pp. U2-l*3. 65Ibid. (1923), p. 91. There vere occasional exceptions, such as in 1915 when the government spent about $ 1*50. on the Coban-PancaJ che road. Ibid. (1916), p. U2. ^ L e y e s de Guatemala. Vol. XV, pp. 135-136. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r £7 Moritz Thoma, and J. M. Coronado. This solution was hardly practi­ cal, however, for only a few coffee producers could afford such an expenditure, and furthermore the number of suitably situated proper­ ties that vere available for purchase vas limited. The coffee growers and merchants of the department conse­ quently sought to improve the transportation situation through Joint endeavor. In 19lU a number of landowners and businessmen from the Tactic area founded the Comitl de Ccmercio for the purpose of fixing the road from Tactic to Tamahfi, which vas one of the worst parts of the Coban-PancaJche route. The members of the committee apportioned to the municipality ten Indians a week for special road repairs, and they paid the men's wages and all other expenses incurred. 68 While the committee may not have accomplished a great deal in permanently improving conditions, its formation vas a significant step towards the development of community action in the department. In 1921 residents of the Alta Verapaz began to formulate plans to construct on their own a good, surfaced road from Coban to Pancajchl. Confronted by the problem of financing the expensive project, they looked to the wharfage tax collected by the Municipality of Livingston as a possible source of money. Since the Alta Verapaz accounted for most of the trade in and out of Livingston, the tax weighed heavily on the merchants and planters of the department, vho therefore believed they should receive a share of the revenues. ^ K a r l Sapper, "Die Alta Verapaz," Mittheilungen der geographischen Gesellschaft in Hamburg. XVII (1901), pp. 21*T-221 , and accompanying map. 68 Fomento (1915), p. 52. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Erwin Dieseldorff, one of the chief hackers of the project, made discreet inquiries regarding the amount of revenue the tax pro­ duced from local as well as Verapaz traffic. He also sought to learn how Livingston officials used the funds, and whether there vas any 69 public accounting of receipts and disbursements. 7 His investigations bore out the fact that the receipts came largely from Verapaz trade, and this information strengthened the department's argument in soliciting at least a portion of the money collected. The planters and merchants petitioned the Guatemalan govern­ ment to appropriate the revenues from the wharfage tax for the con­ struction of a modern road from Coban to Pancajch€, and in June, 1922, President Josl Marla Orellana acceded.7® The following month the petitioners organized the ComitS de la carretera entre Coban £ Panca.1 che. whose membership included both Germans and Guatemalans. 71 The group's plans were to build a macadamized highway, suitable for transit by trucks and automobiles, and they engaged Heinrich Runge, an engineer from Hamburg who had built similar roads in Africa, to survey the route and supervise its construction. Runge arrived in the department in late September, 1922, and for the next few months was involved with preparations and planning.7^ ^ Letter: EPD, CCoban J , to J. M. Dyer, Livingston, November 26, 1921, Letterbook, "Ferrocarril Verapaz," No. 6, p. U00, DC. 70 Arturo Ibarra (.comp.), Recopilacion de leyes correspondientes al ramo de agriculture (Guatemala, 19337, p. 388. 71Fomento (1923), pp. 113, 307: El Norte. Ano XII, No. 579, August 12, 1922. 72E1 Norte, Ano XII, Nos. 585 and 596, September 23, and December 9, 1922. R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r 2691 Unfortunately for the department, the wharfage tax proved to be an erratic source of money, subject to political machinations. During 1923 the committee received nearly Q 23,000.,7^ but on Decem­ ber 31, 1923, President Orellana, assenting to the request of the Jefe Politico of the Department of Izabal, ordered that henceforth the entire amount be used to open a mule track from £1 Estor, on the . jh north shore of Lake Izabal, to Cahabon ,1 a small town in the in­ terior. As a result of the President's action, the committee received no funds during 192U and work on the project halted. At wits' end, the committee sent a special commission to the capital to attempt to persuade Orellana to alter his decision, and it also engaged Friedrich Hochstetter to represent the group's interests in government circles. 75 Their lobbying was successful, and in January, 1925, Orellana returned the tax revenues to the Coban-PancaJ che road project,7** which gave the committee more than Q 36 ,U0Q. that year .77 Revenues from the wharfage tax vere not only uncertain, but even when received they were insufficient to cover expenses. For this reason the committee decided to raise additional sums within the department. At the request of its members, the planters and merchants ^ F o m e n t o (19210, pp. 383-386. The author calculated the probable amount of the tax by using the import and export cargo figures reported on these pages. ^Ibarra, p. 1*19. 75E1 Norte, Afio XIV, No. 663, April 5, 76 192h. Ibarra, p. U37» 77Fomento (1926), pp. 116-118. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 270l of the Alta Verapaz agreed to pay a self-imposed tariff of four pesos (Q 0.067) for each one hundred pounds transported over the Cob&n7O PancajchS route.' In this manner those persons in the department, such as Ervin Dieseldorff, vho vould benefit the most from the com­ pletion of this public road, voluntarily put up part of the capital necessary to build it. The road committee received and administered this fund. Construction of the road began in 1923, and vork vas carried on simultaneously out of Coban and Pancajch€. For the first time in the history of the department the builders did not have to depend on human power alone, because the committee purchased machinery for the job. It imported from Germany two excavator cranes, a rock crusher, a steam roller, and a dump t r u c k . ^ The equipment vas hardly enough for a major undertaking, but it vas more than had ever been used be­ fore. Indian laborers, under the corvee lav, provided part of the necessary manpower, but the number of hands that could be obtained by this method vas not sufficient. To augment the size of the vork gangs the committee hired additional men at tventy pesos ($ 0.30) a day. Bo Persons vho ovned plantations in the vicinity of the road put the Indians from their fine as at the disposal of the committee, as ^Letter: EPD, Coban, to the SeHores Cajeros de Comite Reparacion de la Carretera, Cob&n, February 16, 1926, Letterbook, "Varios Asuntos," No. 8 , p. 15, DC; Letter: EPD, Cob£n, to the Presidente de la Repdbica, Guatemala, February 1, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, pp. ^3-^5, DC. ^ E1 Norte. ASo XIV, Nos. 678 and 69U, July 19, and November 8, 192k. 8°Ibid.. Afio XIV, No. 678, July 19, 192U. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 8l Dieseldorff did the colonos from Rio Frio, PaijS., and El Salto. In addition, private individuals, such as Sapper & Co. and a group from Tactic, assisted the committee by assuming responsibility for certain sections of the road. go Work progressed slowly during the next three years, because the builders encountered numerous problems. At one point, for in­ stance, the terrain rose sharply more than twelve hundred feet in three miles, which made a safe grade extremely difficult to conOn struct. Furthermore, a new roadbed and lateral conduits had to be dug for the entire route, through swamps as well as mountains. Much more machinery was necessary to expedite the work, but the road conn mittee lacked the funds to make additional purchases. Manual laborers were also hard to obtain, for although the wages were good (the rate in most parts of Guatemala was ten pesos a day, and elsewhere in the Alta Verapaz, fifteen pesos), the Indians of the department were 8U generally unwilling to do road work. H By the middle of 1927 twenty-three miles, about half of the road, had been completed, project but then the national government dealt the a crippling blow.The new President of Guatemala, Lazaro ^Letter: EPD, Coban, to the Jefe Politico, Cob£n, January 7, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 30, DC. ^ E l Norte, ASo XVII, No. 099, August 27, 1927. 63Ibid.. ASo XII, Ho. 596, December 9, 1922. 61*Ibid.. ASo XIV, No. 69k , November 6 , 192U; Letter: EPD, Coban, to the Ministro de Agriculture, Guatemala, December 22, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 6 k k - 6 k 6 , DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 272"1 Chacon, opposed construction of the route by private parties. He believed that the government could do the vork more efficiently, and through his Minister of Agriculture he ordered the Verapaz comnittee to stop all operations.^ Yet, instead of putting into effect a single, well-coordinated program, he splintered the project by plac­ ing the responsibility for its completion in the hands of the munici­ pal authorities in each town along the route, vho vere to vork on the section vithin their Jurisdiction. Many landowners of the de­ partment, angered by the President's action, became uncooperative and refused to send colonos from their plantations to vork on the roads. 86 In 1929 the project suffered another setback, because a new tariff lav enacted that year abolished the Livingston wharfage t a x . ^ For the next few months vork on the Coban-PancaJ ch6 road con­ tinued in a desultory and uncoordinated fashion under the administra­ tion of local officials. As a result, the main transportation artery of the department once again began to fall into disrepair, and some of the committee's accomplishments vere destroyed. In Novem­ ber, 1928, the residents of the Alta Verapaz in desperation pleaded with the government either to undertake the vork itself or to put QQ the Job up for public bidding. About the same time, Dieseldorff, ^Guatemala, Memoria de la Secretarxa de Agriculture, presentada la Asamblea Nacional Legislative en 1928 (Guatemala. 192&). p. 81. Hereinafter this vork is cited as Memoria . . . Agriculture (date). & ^ E l Norte, ASo XVIII, No. 899, August 27, 1927; ibid., Ano XIX, No. 952, September 8 , 1928. ^ Leyes de Guatemala. Vol. XLVIII, p. 3^5* | ®®Petition: "Los suscritos agricultores, importadores y exportadores de la zona de la Verapaz," to the Director General de Caminos, Guatemala, November 19, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 608-609, DC. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. | r 273 vho vas one of the originators of the petition, made a tour of in­ spection of the road vith the Jefe Politico of the department, and submitted a lengthy report of his findings and reconaendations to the Minister of Agriculture. He strongly urged that the Minister order use of the macadam system in making repairs, and stated out­ right that the old road committee, if reinstated, could bring the job to completion. 69 Work on the road resumed in 1929. Although local town authorities vere nominally still in charge, Dieseldorff's son-in-lav Max Quirin vas appointed "Honorary Inspector" for the project. From the latter part of 1929 until 1931 Quirin vorked on the road and attempted to coordinate the activities of the various munici­ palities. Dieseldorff also frequently examined the road. After each trip he informed the Jefe Politico, the Minister of Agriculture, as veil as Quirin, of the vork that needed to be done and, in a manner characteristic of him, bluntly told them exactly hov it should be done.^ Almost every time he reiterated that the macadam system should be used throughout the line, for although it vas slower and ^Letter: EPD, Coban, to the Ministro de Agricultura, Guatemala, December 22, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 6bU-6 b6 , DC. ^Letter: Max Quirin, Coban, to the Ministro de Agricultura, Guatemala, September 30, 1930, Letterbook, "Asuntos ante las autoridades," No. 2, p. 7 6 , DC. ^Letter: EPD, Coban, to the Ministro de Agricultura, Guatemala, January 8 , 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 893-89U, DC} Letters: EPD, Coban, to the Jefe Politico, Coban, January 11 and 20, 1930, and April 12, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 900, 938, 99b, DC. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r more expensive, it lengthened the life of the road and helped to cut down the need for constant repairs. Construction of the road vas financed chiefly by the residents of the department. During the first year the national government al- located Q 250. a month for the vork, propriation s t o pped.^ 02 but after July, 1930, the ap­ Thereafter the costs vere borne solely by the road committee through the collection of the cart tax and through the voluntary contributions of its m e m b e r s . I n 1930, for example, Dieseldorff gave Q 1 , 500.,^ and during the following year he con­ tinued to make monthly d o n a t i o n s . T h e merchants and planters of the department also lent their support to the comnittee in other ways. Dieseldorff permitted the group to extract the sand needed for topping from the riverbed at Santa Margarita and Chichochoc, 97 and he ^Letter: EPD, Coban, to the Ministro de Agricultura, Guate­ mala, February 1*, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 926-927, DC. Q-? . Letter: Max Quirin, Coban, to the Director General de Caminos, Guatemala, July 29, 1930, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 1»8-1»9, DC. oh Letter: Max Quirin, Coban, to the Ministro de Agricultura, Guatemala, September 30, 1930, Letterbook, "Asuntos ante las autoridades," No. 2, p. 76 , DC; Deutschtum in der Alta Verapaz. pp. 67—68 . ^Letter: EPD, Coban, to the Alcalde 1° Municipal, Coban, May 8 , 1931, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 275-276, DC. ^ L etter: EPD, Coban, to the Alcalde 1° Municipal, Coban, August 18, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, p. 1*98, DC. 0 7 'Letter: EPD, Cob&n, to the Director Departamental de Caminos, Cobin, May 26, 1930, Letterbook, "Asuntos ante las autoridades," No. 2, p. 18, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 275"! allowed the builders to use his ox-carts and motor vehicles to trans98 port supplies and equipment.' The problem of securing laborers In sufficient numbers con­ tinued to plague the builders. Officials in each of the municipali­ ties along the route had the responsibility of providing the neces­ sary hands. Some they obtained through the corvle, but these vere not enough. Moreover, the men they recruited vere for the most part finca colonos or Indians vho lived near the town, and they bore the brunt of the burden of road vork. villages generally escaped service. Indians in the remote mountain Dieseldorff suggested that ad­ ditional workers could be obtained by stricter enforcement of the lav go throughout the department," but municipal authorities found this to be virtually impossible in the distant and isolated Indian conmunitles. On occasion Cob&n officials tried to solve the problem by proclaiming a semana de vialidad, vhich required all males of the laborer class to vork on the road for one week without pay. Vocal opposition from plantation owners, such as Dieseldorff, vho knev that forced contribution would in reality apply only to finca mozos, ^Letters: EPD, Cob&n, to the Alcclde 1° Municipal, Coban, July lk, 1930, and July 9, 1931, Letterbook, "Jlsuntos ante las autoridades," No. 2, pp. 36, U21, DC. ^Letter: EPD, Cob&n, to the Alcalde 1° Municipal, Cob&n, May 8, 1931, Letterbook, "Asuntos ante las autoridades, No. 2, pp. 275-276, DC. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 276"! quelled the idea, however.100 The system that worked most success­ fully vas that of using paid "volunteers," vho vere requisitioned from the flncas during the off-season, and vho received Q 1.50 for a six-day week. The planters found this plan acceptable. Diesel­ dorff, for Instance, between June and August, 1930, sent more than one hundred men from his flncas in the Carch& area to vork on the Cobtn-Pancajchl road.101 The committee, despite the many problems and drawbacks it faced, continued to vork on the road. Within approximately three years the line vas open to truck traffic, vhich cut to one day the time required to transport cargoes from Cob&n to Pancajchl. Parts of the road remained unsurfaced, however, and vork on these sections vas not finished until 1937. Completion of the road permitted transit by automobiles, as well as trucks, and reduced travel time to less than three hourB, More importantly, the road lowered shipping costs tremendously, from Q 1.50 per one hundred pounds during the 1920's, to less than Q 0.30. 102 During the period that the Coban-PancaJchi road vas under January p. 682, May 19, p. 307, Letter: EPD, Cob&n, to the Alcalde 1° Municipal, Cob&n, 31, 1929, Letterbook, "Asuntos ante las autoridades," Ho. 1, DC; Letter: EPD, Cob&n, to the Alcalde 1° Municipal, Cob&n, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, DC. 101Letters: Max Quirin for EPD, Cob&n, to the Administrador de Rentas, Cob&n, August 12, 1930, and September k, 18, 22, and 29, 1930, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 5k-55, 59-61, 68, 72, 7k, DC. 102E1 Norte, Afio XXVIII, No. 1392, July 2k, 1937; Deutschtum in der Alta Verapaz. pp. 68-69. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r construction, the planters of the Verapaz vere also improving the con­ dition of roads and mule tracks in other parts of the department. This vork vas necessary in order to speed the transport of coffee from the fincae either to Cob&n or to the trunk line to Pancajch&, but the improvements vere expensive. The broken terrain presented serious obstacles, and the climate made repairs a constant necessity. The plantation ovners, for the most part, had to bear the entire cost them­ selves. Cooperation, or pooling of financial resources, vas not alvays possible since fev of the large plantations vere contiguous, but rather vere videly separated. In addition, the routes generally had to pass through the communal lands of Indian villages, vhose resi­ dents understandably strongly resisted the intrusion and sometimes blocked construction.^^ Ervin Dieseldorff concentrated his efforts on three lines: the road north from Coban and the tvo roads east from San Pedro IqIj Carch&. One of the roads out of Carcha crossed through the Chajcar-Sechaib-Santa Cecilia complex, and the other, vhich led to Lanquin, passed near Raxah& and Chiquixji. The line out of Coban connected vith Cubilgtiitz and Secol. Between Carcha and Chajcar-Santa Cecilia circumstances ^^Letter: EPD, Cob&n, to the Jefe Politico, Cob&n, February 22, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, p. 218, DC. 10U Cob&n and San Pedro Carch&, vhich lay about four miles apart, vere the largest towns in the Alta Verapaz, and traffic be­ tween them vas heavy. Local officials maintained the road that con­ nected them, but elsewhere repairs vere generally left up to the individual landowner. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r permitted construction of a fairly good cart road. The route trav­ ersed several large fincas, including Chimax, vhich vas adjacent to Chajcar, and Basis, Chicaeao, and Chiacam, vhich lay to the east of Santa Cecilia. Chimax belonged to the Ligorrla family, and the others vere German properties. The owners collectively vorksd on the five-mile segment betveen Carchi and Chimax, and individually re­ paired the sections that passed through their fincas, Dieseldorff vaa particularly active in making improvements on the road. In 1911, for example, the Minister of Development re­ ported that a section of approximately eleven miles, passing through Chajcar and Sechaib, had been repaired. The vork consisted of build­ ing small wooden bridges over the numerous ravines, rivulets, and breaks along the route, filling holes and mires vith gravel, grading the roadbed, constructing transverse drains, digging out mud-slides, and laying down boardwalks over particularly boggy stretches. At Chajcar there was also erected a large wooden bridge, vhich had a stone and mortar foundation. The same year two miles of the road through Chimax were repaired.10^ A few years later the Minister re­ ported that during the previous tvelve months the road from Chajcar to Chicacao and beyond had been entirely cleared, that three miles had been macadamized, and tventy-eight miles repaired. Also, betveen Chiacam and Sasls the owners of the fincas had built a covered state here, name, ports ments. ^^Fomento (1912), p. Ul. The report doeB not specifically that Dieseldorff did the vork himself, but the implication and in other reports vhere the plantations cure mentioned by is that the owners made the repairs. Furthermore, in some re­ the owners are actually given credit for their accomplish­ L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r masonry bridge, 157 feet long. 1.06 In 1923, a presidential decree, vhich declared all existing and future roads to be public thoroughfares, 107 creased road construction by private parties. ' gave impetus to in­ Previously, Indians had appeared for road vork vhen ordered by municipal officials, but this system did not suit the best interests of either the landovner or the colonos. On some occasions the requests came at an inoppor­ tune time— during the harvest season, for example, or vhen the Indians vere cultivating the plots of land allotted to them. In other instances, the people vere put to vork improving roads that vere of no benefit to the finca, or at placeo so far avay that the men lost several days1 travel time getting there. Dieseldorff and other planters petitioned the President of Guatemala to interpret the public roads lav to cover the particular pattern of landholding in the Alta Verapaz. Dieseldorff pointed out that demographic conditions in the department vere vastly different from those in the Pacific highlands, vhere many large plantations vere concentrated together. Acceding to the requests, the govern­ ment extended the lav to include all roads and mule tracks that led to or passed through a finca. This step opened the vay for permitting the Indians to fulfill lo6Ibid. (1923), pp. 113, 115. 10^Ibarra, p. kl8. ^^Letter: EPD, Coban, to the Presidente de la Repiiblica, Guatemala, February 1, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 1*3-W», DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2801 the corv&e requirement working on roads on the plantations where they resided. Significantly, It also made possible the construction of essential improvements, under the direotion of the owner or one of his employees. In practice the law allowed finqueros to pay the road tax for the colonos on his land and to give them the necessary corvie certificate. Subsequently, the owner, at his convenience, sent the men to work on the roads, or exempted them altogether from service if they were needed for some other task.^0^ Taking advantage of the public roads lav, Dieseldorff and the other landowners in the Chajcar area began to make substantial im­ provements on the road from San Pedro Carchil to the fincas. Dieseldorff alone provided more than 3^0 men from Chajcar, Sechaib, Santa Cecilia, and Secac-Ulpan,^^ Under the direction of overseers sent by the plantation owners, the Indian work gangs leveled and widened the road, using explosives when necessary, dug new drainage ditches and repaired old ones, and surfaced sections of the route by Letter: EPD, Cob&n, to the Jefe Politico, Cob&n, January 7, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 30, DC; Letter: EPD, Cob&n, to the Adminietrador de Rentas, Cob&n, March 2b, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 63, DC. Dieseldorff, for example, usually paid the road tax for his muleteers and cart drivers, and the more skilled colonos from Santa Margarita. Letter: EPD, Coban, to the Jefe Politico, Cob&n, June 26, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 102103, DC. 110E1 Norte. Aflo XVI, No. 872, February 12, 1927. ^^Letter: EPD, Cob&n, to the Jefe Politico. Coban, June 26, 1926, Letterbook, "Asuntos ante las autoridades, No; 1, pp. 102-103, DC; Statistical data submitted to the Alcalde 1° Municipal, Carch&, December lb, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, p. 865, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 281~I the macadam method. 112 As a result, by the early 1930's the line was transitable by trucks almost all the way to Chicacao, ten miles east 113 of Santa Cecilia, and travel time vas reduced from two days to less than two hours. Although a cart road vas the preferable solution to the prob­ lem of transportation, Dieseldorff vas not able to open such lines to all his fincas. In the case of Chajcar and Santa Cecilia it had been possible, because there vere severed large coffee plantations in the region, vhose owners vere villing to share expenses for their mutual benefit. Since there vere fev wealthy fincas in the vicinity of his other major properties, elsevhere he had to bear the entire cost of construction himself. For some plantations, such as Secol and Cubilgultz, vhich vere fifteen to twenty miles from Cob&n, the cost would have been far out of proportion to the savings he could have derived from the improved transportation facilities. To connect these two fincas, as veil as Chiquixjl and Raxaha, with Cob&n, he used mule tracks, vhich vere cheaper and easier to build and maintain. Cubilguitz and Secol vere served by the same trail. Although the shorter route to Secol would have been one leading due north out of San Pedro Carch&, the opening of a separate track vould have re­ quired a considerable added expenditure. For the first four or five •^Letter: EPD, Cob&n, to the Jefe Politico, Coban, February 26, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, p. 9M, DC. Although Dieseldorff vas not an engineer, he studied to acquaint himself with the principles and methods of road construction, and he had in his library a number of books on the subject. •^^El Norte. AHo XXV, No. 1259, November 3, 193^. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2821 miles out of Coban there vas a cart road, which had been built by Victor Wellmann and the Sapper firm, vho owned plantations along the route.^^ The road ended at Wellmann*a Yaxpatz, and beyond that point there vas only a mule track, vhich continued north for about ten miles. Here the trail divided. One spur led east to the Secol- Seactl complex, vhich vas situated tvo or three miles beyond the fork; and the other northwest to Cubilguitz, some eight miles avay. During the 1920's Dieseldorff made considerable improvements on the mule track. Using mozos from his fincas he widened the trail to six to eight feet and paved the entire roadbed with small stone to permit transit in all kinds of veather. His reports to local authorities indicate that he made efficient use of the manpower at his disposal. In 1926, for example, 118 mozos repaired about tventy- five miles, and the following year fifty men put some ten miles in good condition. The track vas used not only by Dieseldorff, but it serviced several small plantations and Indian villages along the route, including Sacristal, San Jacinto, Chilt$, and Setal.^^ Down to the present day the mule track remains the only available land route to Cubilguitz, and one of the alternate trails to Secol. ll]*Ibid.. ASo VI, Ho. 269, September 19, 1915; ibid.. Ano VIII, Ho. 355, August 25, 1917; ibid., Ano XVII, Ho. 901, September 10, 1927. ^ "’Letters: EPD, Coban, to the Director Departamental de Caminos, Coban, June 22, 1926, and September 30, 1927, Letterbook, "Asuntos ante las autoridades," Ho. 1, pp. 100, 330, DC. The people from these places, according to Dieseldorff, failed to assist in any way whatsoever with the improvements he undertook. Letter: EPD, Coban, to the Jefe Politico, Coban, May 27, 1927, Letterbook, "Asuntos ante las autoridades," Ho. 1, p. 265, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r In the case of Chiquixjf and Raxahi, cost vas not the sole factor that deterred Dieseldorff from opening a regular road. The two fincas, situated in the same region, vere both vithin tvo or three miles of the Carcha-Lanquin road, and the terrain betveen the planta­ tions and the road vas not particularly difficult. Raxaha and Chiquixjl, hovever, vere made up of many, scattered parcels of land, vhich vere surrounded by Indian-owned lots and communal holdings. Dieseldorff had a monopoly over the profitable coffee buying business in this rather extensive area. A road vould have made the Indian villages readily accessible to rival buyers, vho vould have descended there, Dieseldorff knev, in noraes, do as to keep out competitors and to retain his control intact, Dieseldorff purposefully made the transport of coffee out of the region difficult. One narrov mule track connected the fincas 1 beneficios and varehouses vith the road, and elsewhere only footpaths existed.11^ Dieseldorff's successors have chosen to keep the area isolated for the same reasons that he did. Today the two fincas still can only be reached on horseback or on foot.11? In order to transport coffee from the fincas to Coban and thence to Pancajch£, Dieseldorff required a large number of carrier Letter: EPD, Coban, to the Director Departamental de Caminos, Coban, October 12, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, p. 332, DC; Interviews vith dona Matilde Diesel­ dorff de Quirin, don Arturo Morales de la Cruz, and don Manuel Burmester. Interviews vith Mrs. Billie Neal de Cox, don Guillermo Boesche, don Arturo Morales de la Cruz, and don Manuel Burmester. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 2841 vehicles, oxen, and pack animals. On the road from Coban to Pancajchl, and on the one from Coban to the Chajcar complex, he used ox-carts. horses. Elsewhere in the department he employed mules and pack The carts and mules also carried supplies to the fincas, and on the return trip from Pancajchi the ox-carts brought cargoes of salt, which Dieseldorff sold at a profit. nfi Sometimes, when the backlog of coffee was too large for the number of animals he had on hand, Dieseldorff was forced to use human carriers. Although the practice was fairly common in Dieseldorff's time, he used men only on rare occasions, when absolutely necessary. Not only were the Indians badly needed to work on the fincas, but Dieseldorff apparently regarded this system with distaste. 119 he strove to have a sufficient number of vehicles and animals. Instead At the same time he sought to avoid the problem by carefully planning out transportation schedules based on the statistical reports re­ ceived from the administrators two or three times a week informing him of the amount of coffee awaiting shipment in the finca warehouses. Ox-carts were the more practical mode of transport, for al­ though they vere very slow, a team of four animals could pull a load of fifteen or more one hundred-pound bags. The maximum limit for a mule, on the other hand, vas two bags, or about two hundred pounds. ^®Letter: Paul 0. Mittelstadt. CCobenl, to D. fi. Hodgsdon, Guatemala, August 2, 1919* Letterbook, "IGdG," p. 134, DC, WW I Int. Pap. Interview vith doSa Matilde Dieseldorff de Quirin. As late as 1965 it vas necessary to use human carriers to bring coffee from Cubilguitz to Coban, because all the mules and pack horses of the Dieseldorff firm vere tied up carrying coffee from Secol. This happens infrequently, however. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r The carts, vhich Dieseldorff constructed*at-Chichochoc, consisted of a flat, wooden platform vith a wooden bow at each end. The bows vere fastened together vith heavy planks, and the entire superstructure vas covered vith a tarpaulin. spokes and metal casings. The wheels had four large, wooden In the early days it vas necessary to im­ port wheels from abroad, but later Dieseldorff purchased them from Georg Wagner, vho manufactured them in Cob&n. lOQ The carts, fully equipped, cost about $ ho. apiece,*21 but owing to road conditions the cost of upkeep vas high. Sharp rocks along the narrow road tore the canvas, and although the material could be mended, after a few trips it had to be replaced. On the trip the vehicles frequently suffered mishaps, vhich resulted in broken wheels and axles, or other damages. For this reason Dieseldorff kept nev equipment and spare parts at Rio Frio, situated betveen Santa Cruz and Tactic and at Paija near Pancajche. For the journey to ?ancajch£ the ox-carts left Coban at dawn in trains of twelve to twenty. Although Dieseldorff maintained a 122 fleet of some forty-five to fifty vehicles, at the height of the harvest season he sometimes found it necessary to hire additional 120E1 Norte. ASo XI, Nos. 512 and 552, March 12, 1921, and January 1, 1922; Letter: EPD, Cob&n, to Jorge Wagner, Coban, February 23, 1926, Letterbook, "Varios Asuntos," No. 8, p. 3, DC. 121 General inventory of EPD's properties made by the IGdG, March 31, 1919( DS, "Varios" Box; Record book, "inventarios," 19271931, p. U, DC. 122 General inventory of EPD's properties made by the IGdG, March 31, 1919, DS, "Varios" Box; Inventories for Chichochoc, Chajcar, Sechaib, Santa Cecilia, Raxpec, Paija, and Rio Frio (1930), DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2 8 6 "! carta. 1 2 3 He trained colonoa from Santa Margarita to be drivers, and to augnent tbeir numbers he contracted experienced men from Tactic, a town whose residents specialized in this type of work. Since good drivers vere scarce and competition for them vas keen, he frequently advanced the men money to assure himself of their services. Not all planters in the department could afford to keep a fleet of carts and the necessary drivers and draft animals, and they had to use commercial carriers. The vehicles Dieseldorff owned enabled him to establish a subsidiary business transporting coffee to Pancajchl for others. In this manner he utilized the carts to fullest capacity, and the revenues he received from freight charges helped him to defray part of his overhead expenses. The trip from Cobin to Pancajchl was extremely difficult. All along the route the trains encountered steep ascents, as veil as deep bogs, where it vas necessary to unhitch the animals and pull each cart vith a team of six or eight oxen. The sharp descents vere equally treacherous, and the drivers had to exercise great caution to prevent damage to the vehicle and injury to the animals. On the Coban-PancaJchi road the mortality rate vas so high that Dieseldorff demanded that the drivers bring him the branded part of the hide to make certain that the beast had actually died and had not been ^^Letter: Paul 0. Mittelstadt, CCobanl, to D. B. Hodgsdon, Guatemala, July 22, 1919, Letterbook, "lGdG,n p. 121, DC, WW I Int. Pap. 22k Letters: EPD, Coban, to the Jefe Politico, Coban, January 7, and September 5, 1926, and June 19, 1928, Letterbook, "Asuntos ante las autoridades,” No. 1, pp. 30, lUl, U88, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r stolen.^ In addition to the livestock in Cobin, Dieseldorff also pastured fresh oxen at Rio Frio and PaijS. to use as replacements for the ones that had perished or that vere too exhausted to continue the Journey, Since the trip to Chajcar was much shorter and less tir­ ing than the one to Pancajchi, substitute animals vere seldom neces­ sary, and if they vere, they vere sent from Cobin. Dieseldorff used pack animals to transport cargo to and from his other fincas. Mules vere the most common carriers. burden mules had several advantages over horses. As beasts of Their greater strength and stamina enabled them to carry heavier loads, and the small size of the hoof gave them surer footing on the rocky mountain trails and over svampy sections, either of vhich horses had trouble maneuvering vhen loaded. Dieseldorff used mules almost exclusively betveen Coban and the fincas Cubilg&itz and Secol. To Chiquixjl and Raxaha, vhich vere much closer, he employed pack horses as veil as mules. In order to facilitate the care of the animals and to have them on hand vhen he needed them, Dieseldorff pastured the herd at one of tvo places, either Chi chafe (part of Santa Margarita}, or ■^'’interview with doBa Matilde Dieseldorff de Quirin. 12oLetter: EPD, Coban, to the Alcalde 1° Municipal, Tucurfi, April 12, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 995-996, DC; Letter: EPD, Coban, to the Alcalde 1° Municipal, Santa Cruz V., July 10, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 107, DC; Agricultural and statistical data on Rio Frio (c. 1930-1931), Letterbook, "Asuntos ante las autoridades," No. 2, p. 166 , DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 288*1 Cubilgfiitz.*2^ At Chich&lc the beasts vere readily available to send supplies to any of the fincas, or to go to Chiquixjl or Raxaha and bring coffee from there. During the harvest season the mules at Cubilgfiitz could be sent at a moment's notice to Secol to transport the crop to Cob&n. Dieseldorff also kept a small number of riding horses and mules in Coban, and one or tvo on each of the fincas for use by the overseers. Dieseldorff required a large number of animals to avert costly delays in the transport of coffee and suppxj.es* Jut inventory taken in 1919 revealed that he owned 309 oxen, 59 mules, and 26 saddle horses, whose aggregate value amounted to nearly $ 9*000. 128 A few years later his livestock included 239 oxen, 99 pack mules, 29 pack horses, and 28 mounts (mules and horses). 129 He obtained his stock by purchasing animals and by breeding them. Buying was the less common method, because the beasts vere ex­ pensive. A mule, for example, cost between $ 25. and $ U0., depend­ ing on its age and size;1^® an ox, from $ 30. to $ l*0.^'L Therefore, •^Letter: EPD, Cob&n, to the Alcalde 1° Municipal, Coban, April 19, 1929, Letterbook, "Asuntos ante las autoridades," So. 1, pp. 738-739, DC; Agricultural and statistical data on Cubilguitz (c. April 1930), Letterbook, "Asuntos ante las autoridades," No. 1, p. 987, DC. 10A General inventory of EPD's properties made by the IGdG, March 31, 1919, DS, "Varios" Box. ■^Inventories of Chajcar, Chichochoc, Chiquixjl, Cubilguitz, El Salto, PaiJ&, Panzal, Raxaha, Raxpec, Rio Frio, Santa Cecilia, Secac-Ulp&n, Sechalb, and Secol (1930), DC. 130 Livestock purchase documents dated December 7, 1927, April 17, 1928, September 19, 1932, and September 13, 193fc, DS, "Varios" Box. ( ^Livestock purchase document dated October 20, 192^, DS, "Varios" Box; List of oxen and bullocks purchased in Salam&, Baja Verapaz, September 17-19, 1923, DS, "Varios" Box. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. | r 2891 Dieseldorff also bred animals to Increase the size of his herd* He used CubilgUitz and its annex Yaxcabnal for this purpose, because the relatively level terrain, the fertile soil, and the vara climate made the area an excellent grazing lond,1^2 Here he kept fifty to sixty mares and two or three asses, and he pastured the offspring there until they vere ready for service.^^3 jn order to improve the line he also introduced specially selected animals from other parts of the c o u n t r y . T h e Dieseldorff firm continues to breed the mules it needs on this finca. In addition to mules, Dieseldorff raised oxen at Yaxcebnal, and also at Secac-Ulpan and El Salto. He maintained a herd of eighty to one hundred animals at each place, and the young bullocks vere trained there os v e i l . ^5 Although mules and pack horses are still used dovn to the present day, the improvement of the Cobfm-PancaJche and Coban-Chajcar 1^2Agricultural and statistical data on Cubilgttitz (c. 1930), Letterbook, "Asuntos ante las autoridades,” No. 1, p. 968, DC. 133Agricultural and statistical data on Cubilguitz and Yaxcabnal (c. 1927-1928), Letterbook, "Asuntos ante las autoridades,” No. 1, p. 355T» ibid. (c. 1933) , Letterbook, "Asuntos ante las autoridades,” No. 3, p. 100, DC. i glj __ Letter: EPD, Coban, to the Ministro de Agricultura, Guate­ mala, November 20, 1931» Letterbook, "Asuntos ante las autoridades," No. 2, p. 6U7, DC. 135 Agricultural and statistical data on Yaxcabnal (c. 1930), Letterbook, "Asuntos ante las autoridades," No. 1, p. 987, DC; Record book, "Inventories," 1927-1931, p. 6, DC; Letter: CEPD, Cobanl, to H. P. Opferaann, tf. R. Groce & Co., Guatemala, October 20, 1920, DC, Financial Correspondence; Letter: EPD, CobSn, to the Alcalde 1° Municipal, Carcha, July 20, 1929» Letterbook, "Asuntos ante las autoridades," No. 1, pp. 786-787, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2907 roads during the late 1920's and the early 1930's gradually made ox­ carts obsolete* Carts were a slow, cumbersome, and excessively cost­ ly mode of transportation, and Dieseldorff began to substitute trucks as soon as conditions permitted* In 1930 he bought a small Ford pick­ up, and two International trucks, one of which had a capacity of two 136 tons (or forty bags of coffee), the other, one and a quarter tons. ^ The following year he purchased another International truck of threeton c a p a c i t y T h e ox-carts rapidly fell into disuse. By 1931 there were only three operating between Cob&n and Chajcar, and five between Cob&n and PancaJoh&.^® Trucks were a boon to Dieseldorff's business. With them he was able to make larger bulk shipments at one time and to move the cargo much more rapidly. They also lowered his shipping costs sub­ stantially, for he no longer had to maintain a large herd of animals and a fleet of carts, or to pay for drivers. The trucks required only a chauffeur, and any repair work that was necessary was done by a mechanic in his employ. 139 So as to keep the vehicles in good 136 Letter: CEPD1, Coban, to the Director General de Aduanas, Guatemala, January 3, 1930, Letterbook, "Asuntos ante las autoridades,N No. 1, pp. 888-890, DC; Letter: Max Quirin for EPD, Coban, to the Administrador de Rentas, Coban, January 12, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, p. 125, DC. ^^Letter: EPD, Cob&n, to the Administrador de Rentas, Coban, January 21, 1932, Letterbook, "Asuntos ante las autoridades," No. 2, p. 70b, DC. 138 Letter: Max Quirin for EPD, Cob&n, to the Administrador de Rentas, Cob&n, January 19, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, p. 128, DC. ^^Letter: EPD, Cob&n, to the Jefe Politico, Cob&n, January 29, 1930, Letterbook, "Asuntos ante las autoridades,” No. 1, p. 915, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r running order at all tines, Dieseldorff also kept a large stock of spare parts at the machine shop at Santa Margarita, 1U0 Concurrent vith the improvement of transportation facilities in the Alta Verapax during the latter part of the nineteenth and the early twentieth century, the communications system between the depart­ ment and Guatemala City also underwent a transformation. The changes were gradual, but they were of lasting value for the residents of the region. In 1672 the government started a weekly mail run between the capital and Coban, lUl but as the coffee industry in the area grew, a faster mode of communications became necessary. The Liberal regimes of Justo Bufino BarrioB and his successors were greatly interested in establishing a national telegraph network throughout the country. An office was opened in Coban in 1876 , and during the next fifteen years lines were put up connecting Cob&n with other towns in the depart1 1±P ment. By the late l880's direct communications between Cob&n and PanzSs were possible which enabled exporters to keep abreast of ship movements at Livingston. W. A. Dieseldorff, recognizing the im­ portance of the line, signed a contract with the government, whereby he agreed to maintain it in a good state of repair. lM Telegraphic ^^Inventory, "Repuestos p? Autocamiones," C19301, DC. ll4lBoletln Oflcial. Vol. I, No. 52, May 30, 1872. lit2Fomento (192k). p. 251. *^ E 1 Demficrata (Cob&n, AV, Guatemala), Afio 1, No. 1*5, March 27, 1887. ^Shmento (1898), p. 20. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 29fl connection* betveen Cob In end Ouetenele City were finally in opera­ tion by about 1907.^ Other improvement! occurred in the twentieth century. Com­ munications with markets abroad beoame possible in 1932 when the Tropical Radio Company opened an office in the capital. lU6 Mail serv­ ice, however, continued to be pitifully slow until 19^0 when the government started a daily run. lU7 1 The planters of the department also needed a telephonic connection with the capital in order to re­ ceive the latest news of conditions in the coffee market, but the government failed to establish one. They lacked the financial re­ sources to undertake the project on their own, and such a line is yet to be built. After the invention of the short-wave radio, those who could afford to buy sets used them to contact agents in Guatemala City, and this system continues to be used down to the present day. In order to facilitate communications with rural areas, Borne persons put up private telephone lines. The Ferrocarril Verapaz in­ stalled one betveen the station at Panz6s and the PancaJchS railhead, and Sapper ic Co. had a line from one of its plantations to its warehouse near Pancajchl. of his fincas. ^ 1lift Ervin Dieseldorff had telephones on several In 1901 he put up a line to connect the office at Ibid. (192U), pp. 251-256, 263. lJ*6 Ibid. (1936), p. 11. llt7Ibid. (I9l»l), p. 258. lli8Ibid. (1916), p. 36. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Chajcar with the one at Sechalb,1^ The following year he received permission from the government to install a telephone system be­ tveen the central office in Coban and his fincus Chajuch, Chajcar, Santa Cecilia, and Becac-Ulp&n.1'*0 Owing to the difficulties and tioats encountered in stringing wires twelve to fifteen mileB across the mountains, he completed the work only as far as Chajuch, outside of San Pedro Carch&. The segment that he put up, nevertheless, enabled him to communicate more quickly with the plantations he owned in the area. At the same time he put up a line from the cen- tral office to the Chichochoc retrilla. 1 *il Traffic and communications between Cob&n and the capital were further advanced by the establishment of regular air service with Guatemala City. In 1926 the reBidentB of the Cob&n area had cleared a rude landing strip, fifteen hundred feet long, in anticipation of a visit by air of President Jos6 Marla Orellana,"^2 but after his de­ parture, municipal officials allowed the field to fall into disrepair. A number of Germans in the town, however, were interested in promot­ ing air travel and after almost a year they persuaded the town ^^Letter: EPD,CCobanD, to Abraham Delgado, Chajcar, August 11, 1901, Letterbook, "Fincas," No. 1, pp. 1U9-151, DC; Record book, "inventarios," 1919-1926, p. 85, DC. 15°Fomento (1903), pp. 11, 101. ^^Letter: EPD, Cob&n, to the Jefe Departamentai de Tel&grafos, Cob&n, February 19, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, p. 937, DC. 152E1 Norte, Afio XV, No. 823, March 11, 1926; ibid.. Afio XVI, No. 828, March 2&, 1926. 153Ibid., Afio XVII, No. 910, November 12, 1927. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r government to build a regular airport at the original site. The planters of the area lent colonos from their fincas to work on the project, and the landing field vas completed in 1929. isi* The strip was (and still is) unpaved, but it vas large enough to accomodate small aircraft. The first few years service vas sporadic, but by the late 1930's the airline Aerovlas de Guatemala vas making tvo flights a veek betveen the capital and Cob&n. The planes, vhich left Guatemala City in the morning and returned that afternoon, car­ ried passengers and light cargo. During Dieseldorff*s lifetime finqueros in the Verapaz con­ tinued to export their coffee via PancaJchS, Panzos, and Livingston, the route that had been used for decades, but betveen 1939 and 19^1 several events occurred, vhich completely and permanently altered the direction of shipping out of the department. During the 1930's the government started making improvements on the road from Cob&n to Salama, the departmental seat of the Baja Verapaz, so as to provide easy transit by trucks betveen the tvo tovns. The project had the support of President Jorge Ubico, and in order to finance it he re­ established the Q .10 wharfage tax at Livingston and allocated onehalf of the revenues for construction of the road. 156 ^^Letter: EPD, Cob&n, to the Alcalde 1° Municipal, Cob&n, January 31, 1929, Letterbook, "Asuntos ante las autoridades," Ho. 1, p. 682, DC. 155Fanento (19 U 3 ), p. 127. • ^ Leyes de Guatemala. Vol. L, p. 1*58. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 2951 Dieseldorff and other residents of the department petitioned Ubico to extend the highway beyond Salami to El Rancho, some thirty miles away. Since El Rancho vas a stopping station of the railroad from Guatemala City to Puerto Barrios, the road, Dieseldorff argued, would help lover the price of corn and other staples, vhich vere im­ ported into the Verapaz through that port.1^ Ubico gave his approval, and the Cobln-Salaml-El Rancho road opened for traffic about 1939 • Neither Dieseldorff nor the other petitioners fully realized perhaps all the changes that the road would bring, but it meant the inevitable end of the Ferrocarril Verapaz and the decline of Livingston as a port. Although El Rancho vas about twenty miles farther away from Coban than Pane aj chi, it presented several advantages over the PancaJ chl-Livingston route. It offered connections with the Ferrocarriles Internacionales de Centro Amlrica, a line that had faster and more efficient trains than the delapidated and unreliable Ferrocarril Verapaz. Equally important, the railroad had service not only to Puerto Barrios and Guatemala City, but to the Pacific ports of San Josl and Champerico, vhich gave the coffee planters access to new markets on the vest coast of the United States. Puerto Barrios, furthermore, vas superior to Livingston in all respects. It had a deep-water harbor that could accommodate large freighters, and its extensive port facilities vere far better than the antiquated vharves at Livingston. An exporter could move cargoes ^^Letter: Max Quirin for EPD, Coban, to the Ministro de Agricultura, Guatemala, November 29, 1932, Letterbook, "Asuntos ante 1 m autoridades," No. 2, p. 989, DC. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r much more quickly out of Barrios, because traffic there vas several times heavier than at Livingston, and the vessels vere of much greater tonnage. Moreover, service out of Livingston vas almost entirely on European flagships, vhile Barrios handled a large number of United States and South American steamers, in addition to vessels of European lines.1 *8 The Ferrocarril Verapaz, although its financial condition vas precarious tenuously continued to operate after the Coban-El Rancho road opened. Seme planters in the department undoubtedly began to consider using the nev route, but many, it seems, preferred the old vay to vhich they vere accustomed. During 1939 the railroad car­ ried 8,197,500 pounds of coffee,1^0 a figure that compared favorably vith the amounts it transported in earlier years. For the period ^ Fomento (192U), pp. 383-386; ibid. (1926), pp. 116-118; ibid. (1928), pp. 9^-95; ibid. (1929), pp. 15H-156; ibid. (1936), p. 221. 159 The railroad division of the CompaEla del Ferrocarril Verapaz y A g e n d a s del Norte from the time it opened for traffic lost money almost every year. The main reasons for this vere that mainte­ nance costs vere extremely high and that the government contract had placed a ceiling on freight and passenger rates. Yet, even if the company had been able to charge more, the increased amount vould have hurt the coffee exporters, vhose shipping costs vere already very high. The profits from the maritime division helped to make up the railroad's losses, but seme years the deficit vas too large and the company operated in the red. By the 1930's the equipment of both sections vas so old and deteriorated that the company vas barely able to cover expenses. CompaSia del Ferrocarril Verapaz, Memoria (1901), pp. 6-8; ibid. (1902), pp. 9-11; ibid. (1903), pp. 9-11; ibid. (l90 i*), pp. 9-11; ibid. (1905), pp. 11-13; ibid. (1907), pp. 9-11; ibid. (1908), pp. 3-5; Letter: EPD, Cob&n, to General Jorge Ubico, Guatemala, June 30, 1931, Letterbook, "Asuntos ante 1 m autoridades," No. 2, pp. 39^-395, DC. ^^Fomento (19 U0 ), p. 15. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 29fi 1931-1935, as an example, the annual average vas 7,991,200 pounds . ^ 1 The outbreak of World War II in September, 1939, hastened the move to the El Rancho route. The conflict disrupted shipping to the old markets on the continent, and the Hamburg-America Line and other European firms vere forced to suspend service. Livingston became a virtual ghost port. 3.62 Overnight The volume of freight the railroad carried dropped sharply during 19Uo, 3 as planters began to send their crops to Puerto Barrios for shipment on United States ves­ sels. After Guatemala declared war on Germany in December, 19^1, and confiscated enemy-ovned properties, including the Ferrocarril Verapaz, railroad service so deteriorated that planters almost had to change over to the route through El Rancho and Puerto Barrios. 16b The shift proved irrevocable. The nev traffic pattern out of the Alta Verapaz caused a num­ ber of changes in the department. Livingston, and the villages of Panzos and Pancajche, lost their importance and their populations dvindled. Fincas near the railhead, such as Dieseldorff's Paija and Panzal, vhich had been used as varehouses and pasture lands, no longer served any purpose and vere disposed of. The road from Tactic to Pancajche, upon vhich so much effort had been expended for seven de­ cades, became an insignificant spur of theCoban-El l6lIbid. (1935), p. 313; ibid. (1936), Rancho route and p.2 3 k . l62Ibid. (191*0), p. 53. l63Ibid. (I9fcl), p. 17. l6 UIbid. (191*3), pp. 235-236. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 2*1 quickly fell into disrepair. Yet in the long run, the situation worked out to the advantage of the coffee exporters of the depart­ ment, for the new route was faster and more efficient than the old. Although the role of the Guatemalan government in the improve­ ment of transportation facilities in the Alta Verapaz was scarcely more than passive, the authorities of that country need not be in­ dicted. Guatemala was small, and its financial resources were limited.. As a result, the funds available for public works needed to provide certain elements of an economic infrastructure were insuffi­ cient to carry out any large-scale project, On the other hand, perhaps the reality of the situation was too difficult to accept, and public officials, in order to stay in the President's good graces, found it politic when making reports to gloss over the matter with pleasant, if inaccurate, remarks. For example, one man in 1880 described the Coban-Panzos cart road, which was not yet finished, as "one of the best in the R e p u b l i c " i n 1905 another stated that the Coban-Panz6s road had been "completely recon­ structed";^^ a third said that owing to the active interest of the Jefe Politico in making repairs "there were no traffic delays whatsoever" during 1916. ' Reports and editorials, which appeared in Coban newspapers, and the letters and petitions of the residents of the ^^Guatemala, Censo general de la Repfiblica de Guatemala, levant ado el afio de 1880 (Guatemala. l8$T), p. 136. l66Fomento (1905), p. 23. l67Ibid. (1917), p. 3U. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 2991 department, if they vere read, kept the national authorities informed about conditions, but government action vas sporadic. There vere, nevertheless, several legitimate reasons for the government '8 failure to give greater assistance to the Alta Verapaz. One vas the attitude of the majority of Guatemalans tovards the de­ partment. Since the Verapaz did not begin to develop economically until the latter part of the nineteenth century, persons from the capital and the Pacific highlands regarded it as a backvater area of little importance. This opinion vas difficult to erase, and it per­ sists down to the present time. The villingness of the residents of the department to undertake and finance transportation projects on their ovn also made it easier for the government to ignore the region, or to give it only desultory attention. Moreover, because the transportation route out of the department connected vith Livingston rather than vith Guatemala City, the national government may have reasoned that the cost of extensive improvements vould have been un­ justifiable since the improvements vould have benefited only the Alta Verapaz, not the entire nation. In this light the construction of the Coban-El Rancho road by Ubico in the 1930's is understandable, for it tied the Verapaz more closely to the capital and to the national transportation arteries. The major transportation improvements that occurred in the Alta Verapaz betveen 1870 and the early 1930's (vith the notable ex­ ception of the Coban-El Rancho road) vere made for the most part by private individuals. Dieseldorff's participation in the various projects undertaken is an example of the activities of the other L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 300"l planters and merchants of the department. altruistic. His motives vere hardly He clearly realized that the successful grovth of his enterprise hinged on his securing faster and more efficient modes of transport, and thus the money he spent vas a necessary business in­ vestment. Although the national government failed to construct a modern transportation system in the Alta Verapaz, the lavs and decrees that it passed enabled residents of the department to carry out projects on the local level. The government permitted the building of the Verapaz railroad and the establishment of steamer service betveen Panzos and Livingston by a German-controlled corporation. A fev years later it alloved a committee of private citizens to undertake construction of a truck route from Coban to Pancajche. Although the government made occasional allocations to the road project, most of the vork vas financed by a self-imposed cart tax, and by revenues from the vharfage tax at Livingston, an impost collected almost en­ tirely from Verapaz traffic. Through the enforcement of the corvee lav the road committee obtained a part of the manpover it needed. A subsequent interpretation of the same lav during the 1920's alloved use of finca Indians to improve roads and mule tracks leading to plantations in the interior. The improvement of transportation facilities caused a number of changes in the lives of the residents of the Verapaz. The Ferrocarril Verapaz and the nev roads not only speeded the transport of goods betveen Coban and Livingston, but drastically reduced ship­ ping costs by permitting substitution of motor vehicles for carts, L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r soft pack animals, or human porters. A better mode of transport stimulated the plantation owners to produce increased amounts of coffee, and as a result the department became more strongly dependent on a one-crop economy. For the finca Indians, who had done most of the work on the roads and mule tracks, improved transportation meant that their patrones used them less frequently as carriers. Yet at the same time increased production tied them more closely to the plantation and to the economic system, for they were needed in larger numbers to tend the orchards and harvest the crop. The Indians living in communal villages were perhaps the ones least affected by the change. Although the roads provided them easier access to markets in the towns, the majority, it seems, pre­ ferred their isolated existence and remained out of the mainstream of life. all but unknown among them, it is Moreover, since footwear was conceivable that they continued to use their own unsurfaced paths in­ stead of the rock-paved tracks and roads. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J n r CHAPTER VIII LABOR ON THE PLANTATION COMPLEX: UNSKILLED INDIAN LABORERS In order to operate the plantation complex successfully Erwin Dieseldorff required a tremendous number of unskilled, manual laborers. Because the cultivation of coffee, as practiced by Dieseldorff and others in the Alta Verapaz, did not lend itself to mechanization, all producers had to maintain a resident labor force so as to have a stable, reliable source of hands throughout the year to tend the trees and gather the crop and to perform many other subsidiary tasks as well. During the harvest season the coffee planters also needed a great many extra, temporary workers to help with the picking and processing of the beans. The everyday work on the fincas, albeit essential, was nonetheless menial, and it was performed by the illit­ erate Indians of the department. People of this class were called "mozos" in Guatemala. The Indians were the backbone of the plantation economy Without them the system would have collapsed and the coffee pro­ ducers would have been ruined. The national government clearly recognized this, for the men in power were either large landowners, or aspired to be such, or were political allies of the caste. And thus it was inevitable that, in order to protect finqueros in all parts of the Republic, the government should enact, as it had many times before, laws that favored the landed interests and provided them the legal means necessary to tie men to the soil or to secure L 302 R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3031 their temporary services In 1876 President Justo Rufino Barrios sent a circular to each of the departmental governors in the Republic* It stated The President fully understands that if agriculturalists are forced to depend solely upon their own resources, with­ out the active cooperation of the Government, the negligence of the Indian classes, who are so prone to deceit, will wreck end abort all agricultural undertakings and will doom the economic development of the country. . . . The only way to improve the situation of the Indians, to bring them out of the state of misery and abject poverty in vhich they live, is to create needs for them by putting them in continuous contact vith the ladino classes, and to accustom them to work so that they will become a useful and productive force in agriculture.1 In a Bimilar vein a Coban Journalist Alberto Carranza wrote, The Indian, as we have often said before, is indolent and apathetic. He is frightened of reforms and progress terri­ fies him, because for him any change means . . . an end to the uncivilized and barbarian way of life to vhich he is ac­ customed.2 Another Cobin resident added, The problem of obtaining Indian laborers . . . is a mat­ ter of life and death for planters in the Alta Verapaz. It is a notorious fact that should the government cease to help agriculturalists in securing laborers, the cultivation of coffee vould become an impossibility, because, as everyone knows, the Indians despise working on the fincas. . . . Their only desire . . . is to live off to themselves in the mountains . . . and to avoid all contact vith the ladinos, the only people that can lift them from the abject state of ignorance in vhich they live.3 ^Leyes de Guatemala. Vol. I, p. *»57. 2El Democrata (Coban, AV, Guatemala), AHo 1, No. 10, July 25, 1886. 3Ibid., AEo 1, No. 29, December 5, 1886. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r aon These statements, made during the late nineteenth century, voiced the sentiments of the ladino minority, the ruling class in Guatemala: that the Indians vere an inferior race incapable of initi­ ating agricultural improvements} that for the material progress of the nation the Indians must be made to provide the laborers needed by entrepreneurs; and the Justification, that the Indians vould benefit from the economic fruits produced by their labor and from associa­ tion vith their ladino preceptors. These ideas vere hardly unique to Guatemalan society; they vere certainly not nev in the history of that country. They were concepts whose roots were deeply embedded in the colonial past; they vere concepts that had been propounded, and indeed Justified on the same philosophical grounds, many times before during the independ. nee period. During the Barrios era the Liberals’ desire for rapid national development gave Increased urgency to de­ mands for the control of labor, and in response Barrios and his suc­ cessors borrowed from past lavs and labor systems to promulgate a series of decrees that asserted unequivocally the servile status of the Indians. Local officials enforced and interpreted these lavs to­ ward their best interests, for they too vere ladinos. The attitudes of the oligarchy undervent scarcely any change over the decades, and during Dieseldorff's lifetime the regulations remained in force virtu­ ally unaltered. During the latter part of the nineteenth century the terrenos baldlos law enabled Guatemalans and foreigners to obtain from the government land on vhich Indians resided. Early in the 1870's the L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3051 government had ordered all Individuals and groups vho possessed or occupied a parcel of land to register the property in the national | i land office and to secure legal title to it. Unfortunately for the Indian communities in the Alta Verapaz, a great many of them failed to do this, perhaps through ignorance or indifference, perhaps as a result of an ingrained aversion or fear of authority. The government desired to foment agricultural development in the country, and it vas firmly convinced that such a goal could be best achieved by putting land into private hands. With this idea in mind, it declared all untitled lands to be public property, that is, terrenos baldios, and then enacted legislation to facilitate the pur­ chase of these lands by individuals or groups.** Although the lavs did not specifically mention the Indian classes, these people vere in fact affected, because the lavs neither gave legal recognition to claims of ovnership on the basis of possession, nor made any allovance for the fact that many of the lands legally classed as terrenos baldfos vere in reality occupied by Indians vho had lived there for generations. Although Indians had been bought and sold vith land in the past, the lavfs omission, vhether intentional or not, opened the vay for the vholesale purchase of Indian communal lands, vhich under the lavs vere technically public lands, by ladinos and foreigners vith the full knowledge and assistance of the Guatemalan government. Terrenos baldlos. vhich had Indian residents vere greatly h Leyes agrarias, pp. 86-90. ^CSdigo fiscal. l88l. pp. 190-201. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r sought after by coffee producers. These occupied tracts vere most desirable, because to the buyers the Indians vere part of the prop­ erty ^ and the government lent them legal support in preventing the inhabitants from leaving.^ In the Alta Verapaz the purchase of such baldtos vas common, as an examination of the land titles to Dieseldorff'a properties reveals. In 1876, for example, the engineer vho surveyed Yaxcabnal and Cantoloc for Juan Prado, the denouncer, reported that there vere Indians living at both places, and that they 0 assisted him in measuring the tractB. The government officials vho surveyed Secac for the firm of Bird & Champney in 1885 stated that they found more than forty families residing on the property.9 Soon aftervards the government granted title to these lands to the de­ nouncers vlthout requiring compensation for the original inhabitants, and the Indians subsequently came under the control of the recipient. Although these transactions vere perfectly legal, occasionally there vere slight irregularities vhich indicate that the government favored fellov ladinos. In the case of Chajcar, denounced by Matlas Fernandez, the area measured encompassed the Indian villages of ^E1 DemScrata. Afio 2, No. 67 , February 26, 1888. ^E1 Porvenir (Cobin, AV, Guatemala), Afio 1, No. 1*7, December 13, 1889; Karl Sapper, "Ansiedlung von Europaern in Mittelamerika," from a series of articles entitled uDle Ansiedlung von Europaern in den Tropen," Schrlften des Vereins fur Sozialpolitik. CXLVII (1912), Part 2, p. 1*2. Q Copy of surveyor's report, February 3, I 876, in land title to Yaxcabnal and Cantoloc (March 22, 1877)» DS, Cubilguitz Box. ^Copy of surveying committee's report, August lU, 1885, in land title to Secac (April 19, 1888), DS, Chajcar Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Chintiul, Rubeltln, Chacalt$, and Ulp&n. The inhabitants of these places made a counter-denouncement and petitioned the government to adjudicate their traditional lands to them. Femfindez's action was also of dubious legality, because the size of the baldlo vas sixtyone caballerl&s, more than twice the maximum amount the law alloved for one grant. Final decision in the matter rested vith the Ministro de GobemaciSn y Justicia, Francisco Fern&ndez, who was the de­ nouncer's son. he quashed the Indians' claim and granted the entire parcel to his father, thirty caballerlas gratuitously and the re­ mainder at 50 pesos per caballerfa.^ The terrenos baldfos law furthermore worked to the detriment of Indian communities that sought to obtain title to their lands. Except in special instances, the law required that baldlos be sold at public auction. Here the Indians ran into competition from out­ siders who were eager to buy the land, regardless of its quality, for the purpose of securing more Indian laborers for their plantations.^ Finqueros vied aggressively with each other for such properties, and as a result the Indian denouncers vere usually outbidden. The larger the Indian group, the more likely it was to lose out at the auction. Such vas the case vith the 123 Indian denouncers of Chiachal, the terreno baldio situated near Seact€ that Dieseldorff bought in 1890 by outbidding four Guatemalans vho were also rivals for the land. 12 10Land title to Chajcar (April 2U, 1882), DS, Chajcar Box. U E1 Porvenir, Afio 1, No. 31, August 25, 1889. 12Land title to Chiachal (April 2, 1891), DS, Secol Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3081 The terrenos baldlos lav, as it vas applied in the Alta Verapaz, caused a radical transformation in the department. It brought about the concentration of large amounts of land and control over a great many Indians in the hands of a fev persons. At the same time it deprived many Indian communities of their traditional lands and forced them to become a part of the plantation system. the Indians accepted the change passively. Not all Some fled from the Cob&n- Carcha area and resettled far avay from the centers of population in the Chahal district,1^ fifty miles to the northeast. In 1886 there also occurred an Indian rebellion of such serious proportions that ili the federal militia had to be called to restore order. The Indians also voiced their complaints to the national government. In response President Barrillas, during a visit to Coban in 1889, ordered that each Indian family in the Alta Verapaz be given title to a tventy-acre parcel of land. 15 The lav had little effect, however, partly because it vas impracticable and therefore ignored, but chiefly because it came too late. remained in the mountain a r e a s . ^ By 1889 fev inhabited baldios As land came into the hands of ^ E 1 DemScrata. ASo 2, No, 68, March U, 1888; El Provenir, ASo 1, No. 1, January 27, 1889. ^ E l DemScrata. ASo 1, Nos. 10 and 25, July 25, and November 7, 1886. The causes of the 1886 Indian revolt vere complex, but seme of the grievances the Indians had vere the loss of their tradi­ tional lands, the encroachment by outsiders, the destruction of their old vay of life, and their being absorbed into the plantation economy. ^ Leyes agrarias. pp. 129-130; El Porvenir. Ano 1, No. U7 , December 15,1889. ^ E1 Porvenir. Ano 2, No. 6l, March 23, 1890. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r individuals or Indian communities, the practice of buying land and men gradually disappeared. Its results, nevertheless, vere permanent, because subsequently, whenever the property changed hands, the public act of sale routinely included as part of the immovables all debts and contracts the Indians had vith the f inca.^ The Guatemalan government farther assisted plantation owners by enacting lavs that established procedures for securing the permanent and temporary workers they needed for their operations. During the early 1870's landowners had renewed the old demands for federal regulation and control of agricultural labor. They believed that the lack of a government policy was not only detrimental to their interests, but that it impeded economic development of the country. 1fi President Barrios strongly concurred, and in April, 1877» he issued a decree entitled Reglamento de J o m a l e r o s (Regulation of Day Laborers) The Reglamento de Jomaleros, which worked to the benefit of the growing coffee industry, was virtually identical to a lav pro­ posed in 1870 by members of the Sociedad Economica vho had favored a 1^Land sale documents for Chamcarel (June lU, 1890; September 2, 1095; May 19, 1902). DS, Secol Box; Land exchange agreement for Chichochoc and Chicoy (March 2, 1896), DS, "Hijos" Box; Land sale document for Chichochoc (March 13, 1900), DS, "Hijos" Box; Land sale document for Chajuch (July 19, 1899), DS, Raxpec Box; Land sale docu­ ments for Chinasajquin and Sacarranche (January 23, 1900), and Chicuc-Benlinima (January 2 k , 1900), DS, Santa Cecilia-Secac Box. ^ B o l e t i n Oficial (Guatemala), Vol. I, Mo. 1*9, May 22, 1872. 19 Leyes de Guatemala. Vol. II, pp. 69-75. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3icTl system of contract labor as a means of reviving the indigo industry. The proposal had been a summation of all the practices in use and all the lavs written on labor up until that time in Guatemala— 'the colono system, the wage contract, the advance payment of labor, the forced labor detail, the anti-vagrancy regulations. The lav derived from it was the most comprehensive piece of legislation on forced labor since the early seventeenth century. The Barrios law, despite Justifications to the contrary, in fact subjected all Indians to agricultural labor at some time or other, and it guaranteed them little else than the obligation to work.20 In l89*» the Reglamento was superseded by a decree of President Reina Barrios, the Ley de Trabal adores (Law Governing Laborers), 21 which was basically the same as the original lav, except for omission of forced labor details. The Ley de TrabaJadores remained in force until the late 19*»0's. Each of the laws divided agricultural laborers into two cate­ gories— colonos (permanent, resident workers) and .1omaleros (tempo­ rary laborers employed on a daily basis). The colonos, under the law, made a written contract with the plantation owner, the patron, to live and work on the finca for a period of not more than four years. There vere no regulations concerning such matters as salary and work 20 Shirley Lucas McAfee,WA Study of Agricultural Labor in Guatemala, 1821-1871"(Unpublished M.A. Thesis, Tulane University, New OrleanB, 1955), pp. 70-o0. 21The Ley de TrabaJ adores, Legislative Decree No. 2*t3 (April, 189*0, was a slightly amended version of Reina Barrios' Presidential Decree No. U86 (February, 189*0. Leyes de Guatemala. Vol. XII, pp. l»02-Uo6, 535-539. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r requirements, but rather the lav stated that the patr6n and the colonos vere to settle these points betveen themselves. The agree­ ments vere public documents signed before the departmental governor or a municipal judge, and these officials had orders to assist the patr6n in getting the Indians to accept his terms and to make the legal procedure as easy as possible. The lav also alloved the planter to make, at his discretion, monetary advances to the colonos, vhich they could repay vith personal service. There vas no limit to the amount he could give them, but so long as they oved him money, the lav prohibited them from leaving the finca, even if the vork contract had expired. Finqueros secured Jomaleros by making vritten or oral con­ tracts vith individual mozos. time they vere to vork. The agreements specified the length of Usually the patron gave the men an advance on their salary (an habilitacion) as an inducement to persuade them to vork for him. The advance also provided the patron a legal tool to use against them if they reneged on their promise, because jo m aleros habilitados, like colonos, vere bound by lav to vork until the debt vas paid off. They could not accept employment anyvhere else in the country or receive an advance from any other person until they had fulfilled their contractual obligation and had received a vritten statement from the patron that their account vith the finca vas clear. The patron vho villfully refused to give a mozo such a vritten release vas subject to a fine, ten pesos. The 1877 Reglamento differed from the 1891* lav on one impor­ tant point. The Barrios decree established a system of forced labor L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3i71 details, called maadamientos de iornaleroa. under which plantation owners could request from the Jefe Politico the seasonal laborers they needed. They were allowed as many as seventy mozos at one time, and the men were obligated to work for as long as two weeks. Munici­ pal officials, assisted by leaders of the Indian communities, rounded up men for the labor gangs from among the Indiana who were not at­ tached to any finca, and secured additional workers through enforcement of stringent vagrancy laws. pp The recruiters collected a fee from the patron for each man provided. The money was meant to cover their expenses, but it was also an incentive for them to fill their quotas. Although the mandamiento system had the strong support of the departmental governors, particularly in the Alta V e r a p a z e n f o r c e ­ ment of the law presented so many difficulties and complications that the government frequently had to issue additional regulations. 2k In the Alta Verapaz the problem became more severe, as the terrenos baldlos disappeared and the number of free Indians diminished, and as the concurrent growth of the coffee industry brought ever increasing demands for laborers. 25 ' Moreover, there were constant incidents of 22Ibid.. Vol. II, pp. 201-20U. 03 EL Quetzal (Coban, AV, Guatemala}, Ano 3, No. 69 , May 1, 1882; El DemScrata. Afio 3, No. 112, January 13, 1889; El Provenir. Ano 1 Csicl, No. 53, January 26, 189O; ibid., Afio 5, No. 209, January 7, 189U. 2k + Arturo Ibarra (comp.). Recopilacion de leyes correspondientes al ramo de agriculture (Guatemala, pp» Mt, 137, 1U2, i T o T 1933T, 103*135- 2^E1 Porvenir. Afio 1, No. 1, January 27, 1889. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r fraud, abuse, and favoritism, 26 vhich led to criticism of the system. Some condemned it on the grounds that it led to the oppression of the Indian and denied him his constitutional right to freedom; 27 others, more pragmatic, opposed the system, because it had degenerated and no longer served its p u r p o s e . A s a result of these attacks President Reina Barrios in October, 1893, abolished mandamientos de 29 Jornaleros, effective as of March 15, 189**» after the end of the current harvest season. In October, 1908, the government revived the ■3Q system, but only for the duration of the harvest. Repeal of the mandamientos lav vas no blov at all to the landed interests in Guatemala. On February lU, l89b, one month before the pronouncement vent into effect, Reina Barrios issued the Ley de Trabajadores, vhich greatly strengthened the position of plantation ovners in securing Indian laborers. The Ley not only deleted from the old lav a number of the articles that had restricted the povers of the patron, but it expanded the rights and prerogatives he had over the mozos on his fincas. Most of the changes related to debts and contracts. The 1877 regulation had stated that in cases vhere only one patr6n vas involved This fact vas recognized in a circular, dated November 19, 1892, issued by the Minister of Development to the Jefes Politicos. Ibarra, p. lb2. 27 La Verapaz (Guatemala), Ano, 1, No. 1, April 2, 1891. 2^E1 DemScrata. ASo 1, Nos. 38, b6, and 1*7, February 6, April 3 and 10, T5&7; ibid. . Ano 3, No. lib, January 27, 1889. ^Ibarra, pp. 157-158. 30Fomento (1909), pp. 178-179; ibid. (1910), p. 157. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r the failure of a laborer to pay a debt or to fulfill a vork commit­ ment vas not covered by the Penal Code and vas therefore merely a civil offense. A man could be tried under the Penal Code only if he had received advances from tvo or more patrones. The 189** lav omitted altogether the distinction that put cases of a single debt within the Jurisdiction of the civil courts.3* Instead, it ordered local offi­ cials to handle any disputes betveen patrones and mozos according to the customs of the region. The new lav extended to the patron the right to pursue and capture colonos and jomaleros habilitados ran avay from the finca oving money or service. vho It also empowered him to seize all the property, money, food supplies, and animals be­ longing to the mozos vho fled from the plantation or who, he suspected, were about to do so. Furthermore the Ley, unlike the Reglamento, contained no proscription against corporal punishment of a mozo by the patron. The Ley also ordered government officials and local police to assist the finqueros in apprehending fugitive mozos. All expenses incurred in such action vere to be added to the debt the men owed. The officials vere to return the mozo to his patron, but if the man refused to go back, or if the plantation owner did not want him back, he vas to be sent to the Companla de Zapadores. a type of military workhouse, where one-half of the wages he earned vere used to pay 31The phrase "pero por toda deuda comfin solo es responsable civi Intente" appeared in Article 2 \ of the Presidential Decree, but the National Assembly, when amending the law, removed it, and there­ fore it does not appear in the final version of the lav. Ibarra, p. 181. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 3lfl off hii debt. Additionally, the I89U decree exempted agricultural laborers from military service. Yet by the manner in which this was done,the law further promoted the increase of mozo debts, and at the same time it attempted to draw the Indian classes into the agricultural economy by favoring plantation workers over the small freeholders. The law applied to laborers on coffee fincas, as well as those who worked on plantations that produced large amounts of bananas, cacao, or sugar cane. The men eligible for exemptions were colonos who received from a patron an advance of fifteen or more pesos a year, Jomaleros who received from a patron an habilitacion of thirty or more pesos a year, and j omaleros who worked ninety or more days a year on a plantation covered by the law. In every instance, eligibility was also dependent on their working faithfully and complying punctually with their obli­ gations to the patron.3^ In 1900 the government placed a fiscal im­ post of one peso on each certificate,33 and in 192b it raised the fee q to ten pesos. Ji The patron generally paid the sum for the men and added the amount to their debt. The men who conceived the labor laws of Guatemala desired to protect the landed interests of the country and to provide a viable ■so The law also exempted Indians, previously obligated to serve in mandamientos, who could read and write Spanish and had aban­ doned their native dress, and those who paid taxes of fifteen or more pesos a year on immovables they owned. Ibid., pp. 190-191. 33Ibid. , pp. 226-227. 3l*Ibid. . p. b26 . L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r adjunct to agriculture in the form of Indian laborers. their purpose. They achieved As a result of the system of legal debt peonage that the lavs created,^ finqueros such as Dieseldorff vere able to obtain and hold the manual laborers they needed to operate their enterprises and to expand cultivation. The lav reinforced the servile status of the landless Indian peasants. Thus this class was integrally tied to the plantation economy, and want to or not it contributed to the agri­ cultural development of the nation. The Dieseldorff plantation complex, owing to its size, had a large Indian population. The number of inhabitants on each finca un­ doubtedly varied from year to year, but most likely the fluctuation was small. The total resident labor force, however, most certainly increased as he acquired new properties. Although complete records of the number of Indians living on his fincas are unavailable, it is 3^0n May 7» 193^, President Jorge Ubico, in an ostensibly liberal move, issued Decree No. 1993* which prohibited the granting of any more monetary advances by patrones to Indians. The lav al­ lowed the patrones two years in which to liquidate existing debts. Ubico, however, was not completely abandoning the country's landowners, because on the same day he enacted a twin measure, Decree No. 1996, which weakened the effect of the other law. The second Decree was a rigid and comprehensive vagrancy lav. It extended the meaning of the term "vagrant" to cover all males of the laborer class without per­ sonal service commitments who did not cultivate their own land, and those who failed to fulfill their work obligations to a patron. Vagrancy was a crime punishable under the Penal Code. The Presiden­ tial Acuerdo of September 2 k , 1935• was issued to implement Decree No. 1996, and it required landless jomaleros to carry a work certificate attesting that they worked at least one hundred days a year for a patron. The document vas to be marked by the patron every tvo weeks to show that the Indian vas currently employed by him. Leves de Guatemala. Vol. LIII, pp. 69-70; ibid., Vol. LIV, pp. 10751076. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3lH possible to reach an approximate figure by using the statistical re­ ports he made to local authorities. For example, by 1930 he had be­ tween one thousand and eleven hundred mozos colonos under contract and,counting women and children,there were about four thousand perma­ nent Indian residents on his land. The same year the debts of all the colonos, together with those of the Jomaleros that regularly o£ worked for him, amounted to nearly 225,000 pesos (almost $ 1*,000.). While this sum might seem small by United States standards, in reality it represented a total personal service commitment of some fifty to seventy thousand days. The colono contracts that Dieseldorff made were simple. were four standard articles. There The first one established the number of days the colono was to work; the second, the wages he would receive. The third pertained to the legal obligation of the patron to provide the colono with either fc-i or a food source. The fourth clause, always invariable, stated that the colono was liable for any expenses Dieseldorff might incur in forcing him to comply with the terms of the agreement, and that for refusal to work he could be charged a fine equal to the amount he would have earned. 37 ^Agricultural and statistical data on EPD's fincas (c. 1930), Letterbooks, "Asuntos ante las autoridades,w No. 1, pp. 122, 381*, 703, 81*2, 81*9-851, 865-866 , 985-987 , 989-991, 993 , 995-996, No. 2, pp. 1, 178, 622, DC; Inventories for Chajcar, Chichochoc, Chiquixji, Cubilguitz, El Salto, Paija, Panzal, Raxaha, Raxpec, Rio Frio, Santa Cecilia, Seeac-Ulpan, Sechalb, and Secol-Seacte (1930), DC. 37 Record book, "Libro de contratos de mozos desde 12 abril 1910, I," pp. 1-2U, DC. This volume contains notarized copies of ten separate labor contracts that Dieseldorff made during 1910. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r By the terms of the contract Dieseldorff obligated the colono Oft to work on the finca for tvo consecutive six-day weeks every month.'9 The other tvo weeks the colono vas free, except during the harvest season when Dieseldorff required him to work continuously until the crop vas in. The work hours, which were set by Dieseldorff, were usually from sunup to sundown. The contract established the wages the colono would receive, but Dieseldorff retained the privilege of paying him either by the day or the Job (tarea). as he saw fit. He did this in order to have a way of chastising mozos who habitually failed to complete their assigned tasks. For the extra days worked during the harvest, Dieseldorff agreed to pay the colono a higher rate, equal to that received by the Jornaleros. Dieseldorff paid the colonos from fincas that did not produce coffee, such as Secac and Rio Frio, an additional amount if he sent them to work on another plantation. On occasion he also promised bonuses to colonos who picked more coffee than vas required. Under the 1877 law it had been mandatory to provide the colono food or to apportion him enough land on which to grow the staples he needed to feed his family for one year, but the 189*» lav omitted this requirement. In the Alta Verapaz, however, the practice was continued by dictate of custom. Since the price of corn and beans in the de­ partment vas generally high, providing staples outright vas expensive. For this reason Dieseldorff allotted each colono a few acres of land 9 Letter: EPD, Coban, to the Ministro de Agriculture, Guate­ mala, February U, 1930, Letterbook, "Asuntos ante las autoridades," Ho. 1, pp. 926-927, DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3191 to till, but he v m sive holdings. able to do this only because he had such exten­ He guaranteed each colono a plot of land (called a mllpa), which he could till during the tvo weeks a month that he vas free. The land vas usually on the finca where the mozo lived, but if on that particular plantation land vas scarce or the soil was unsuit­ able for the cultivation of corn, Dieseldorff assigned a milpa on another of his properties. The colono vas prohibited by the contract from selling his produce to anyone except Dieseldorff. If he did, Dieseldorff had the right to seize whatever amount remained and to ration it out to him by the week. From Dieseldorff's point of view the stipulation was not without reason, because he lent the colono the use of the land for food production, riot as a source of income. Furthermore, since the Indians cultivated corn by the slash and burn method, the yields were small and surpluses Infrequent. Those who attempted to sell a portion of the crop might be depriving their families of food they needed for sustenance. If the food supply ran out before the end of the year, Dieseldorff had to bear the cost of feeding the Indians, and this he tried to avoid vhenever possible. The colono contracts vere for a period of four years, the maximum allowed by the lav. Since the document had to be signed in the presence of the Jefe Politico, or an official designated by him, the legal proceedings could become very complicated if there vere a great many men on the finca. In order to avoid difficulties Diesel­ dorff and other landowners tried to have the contracts of all the mozos on a plantation run concurrently. A notary read and explained L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 320l the terms of the agreement to the colonos, and If they accepted, they selected one person from the group to represent them in Cobfin and to sign for them. The contract vaB a single document, and in it vere listed the names of all the colonos it covered. In this manner Diesel- dorff in 1910 contracted 101 men at Santa Cecilia, k2 at Secol-Seactfi, 135 at Chajcar, and 90 at S e c a c . ^ A few weeks before the contracts vere signed, Dieseldorff or one of his employees entered into negotiations with spokesmen for the Indians on each finca. one sort or another. From time to time, he encountered problems of Because the Indians did not like the regimented life of the finca, they vere occasionally swayed by dissatisfied per­ sons in their midst who urged them not to renew, but to leave the place and go elsewhere. Frequently rival finqueros sent agentB as infiltrators to try to entice the men away with offers of higher pay, abundant provisions, and unlimited credit. The colonos who owed money of course could not move from the finca, regardless of whether or not their contract had expired. Dieseldorff, nevertheless, believed it to be politic to treat them in such a manner that they might voluntarily choose to stay. He and his assistants humored, cajoled, and flattered the Indians, and some­ times mild threats or small bribes vere also necessary. Whatever promises his employees made, however, the labor lav was on his side, because If these did not appear in the contract the colonos could make no claim against him. Yet, at the same time, he knew that if ^ R e c o r d book, "Libro de contratos . . pp. 1-7, 10-15, DC. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 32fi he or his agent* repeatedly made extravagant promisee and failed to keep them, the Indians would come to distrust him. bO The colono system vas self-perpetuating, not only on Dieseldorff's properties, but on all flncas. Children, from the time of their birth, were bound to the plantation. At an early age the young boys started to work around the beneficios and the drying terraces, performing light tasks such as raking the beans. On Dieseldorff1s plantations they received regular wages for this, usually tvo or iii three cents a day. By the time a boy vas fourteen years old, he had become part of the regular labor force. He was then old enough to enter into contract and incur debts, and inevitably he did both. Shortly thereafter he married or formed a permanent liaison with a girl from the plantation, and soon the couple had started a family. Thus, the children of one generation of colonos became the colonos of the next generation, and their offspring in turn also remained on i the finca. Few escaped the circle. Being landless and illiterate, they had no place to go and no possible future except as colonos, if not on Dieseldorff's land then on someone else*8. Consequently they stayed, and as a result the resident work force was continually re­ newed, and Dieseldorff os landowner felt assured of having the manual laborers he needed. bO Letter: Albert Ludvig for EPD, CCobfinl, to Gerardo Barahona, Secac, June lb, 1902, Letterbook, "Fincas," No. 1, pp. b5b-b56, DC; Letters: EPD, Cobfin, to the Jefe Politico, Cobfin, January 25, 1926, and March 10, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, pp. bO, 222-223, DC. ^^Letter: EPD, Cobfin, to the Administrators of his fincas,. May 1, 1935, DC, Finca Correspondence. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 322~I At Secol Dieseldorff used still another type of permanent laborer. The Indian population of this area vas very small, and had always been so, because corn vas almost impossible to grow there ow­ ing to the vet climate and the condition of the soil. Plantation workers, colonos as well as Jornaleros, vere extremely difficult to secure. To alleviate the labor shortage Dieseldorff hired Indian meseros, men who worked for him by the month without regular weeks off as the colonos had. The meseros lived on the finca, but since they did not have the time to cultivate a railpa, they received ali­ mentary provisions in addition to their wages. Each man was rationed per week twenty-five pounds of corn, three- fourths of a pound of cof­ fee, and half a pound of salt. The mesero was also given annually a one-dollar credit for the purchase of clothing at the finca store. Up The short-term labor contracts that Dieseldorff made vere less formal than the ones with colonos. Usually they vere oral, and sometimes there vas no prior agreement at all. The seasonal hands that Dieseldorff employed fell into tvo categories. The larger group was made up of Indians who had received monetary advances in return for a promise to work. .lomaleros habilitados. These men vere called enganchados or Each year Dieseldorff contracted several hundred seasonal workers in this manner. The system of making habi- litaciones to Indians who did not live on the finca vas of useful value to the business, because Dieseldorff could accurately estimate ^Manuscript, "Especialidades del cultivo de cafe que requieren en la finca Secol” (n. d.), p. 6, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3231 the number of men he would have at his disposal during the harvest season and determine how many more he would need. In addition to the enganchados, there were the voluntarios who came to work on the finca of their own volition without having contracted themselves beforehand. Although extra hands were always welcome, voluntarios vere not a reli­ able source of labor since it vas impossible to anticipate how many there would be from one year to the next. Dieseldorff recruited seasonal hands, enganchados as well as voluntarios, from among the small Indian landowners who lived in the vicinity of his fincas. Properties that vere situated among Indian communal holdings vere an especially good source of short-term laborers. U3 In 1930, for example, Dieseldorff had 131 enganchados at Chiquixji and 78 at RaxahS.**1* Dieseldorff not only sent agents into the Indian villages around his plantations to offer money to the in­ habitants, but very frequently the people themselves came to the finca office to request advances. Often Dieseldorff used other inducements as well. At ChiquixJ1 and Raxahi the plantation stores, which vere the only ones in the heavily populated region, enabled him to secure enganchados in large numbers by extending credit to the Indians who purchased mer­ chandise on the condition that they pay him with personal service. Also in the same area the size of the Indian-owned lots vas so small that a man vas hard put to it to feed his family with vhat he vas u Letter: CMax Kringsl, Carcha/Raxpec, to EPD, Coban, July 7, 1926, DS, Raxpec Box. ^Inventories for ChiquixJ 1 and Raxaha (1930), DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r able to grow on his land. For this reason Dieseldorff vas able to secure agreements by offering the man free use of a piece of land on one of his fincas to grow the stapleshe needed. The sections of Cubilguitz called Cantoloc and Yaxcabnal, and Sacchicagua of Secol, vere reserved almost entirely for the use of enganchados and colonos, who journeyed there from the area northeast of Carcha to make their milpas.^5 Laborers on plantations received vages for their services. Although the rates rose and fell with fluctuations in the value of the peso, in absolute figures the value or buying power remained rela­ tively constant. The government made several attempts to regulate the salaries of agricultural workers. In August, 1903, President Estrada Cabrera established a minimum wage of twelve reales (l.50 pesos) per day on all new contracts.^ it is easy to imagine the fu­ ror that this must have caused among landowners, because within a month the order vas amended to exclude all mozos who vere colonos and those jomaleros who themselves had requested and received a cash advance from a patron. Furthermore, the amendment stated that finqueros and mozos were free to make new contracts on terms and at salary rates mutually acceptable.^ In 1915 the government raised the daily wage to six pesos, in 1923 to eight pesos, and in 1936 it set the rate in ^Letter: CEPD, CobanD, to Johann Pape, Secol, December 5, 1925, Letterbook, "Fincas," No. 10, p. 77^, DC; Agricultural and statistical data on Yaxcabnal (c. 1933), Letterbook, "Asuntos ante las autoridades," No. 3, p. 100, DC. ^Ibarra, p. 2Ul, ^ I b i d . . p. 2k2. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3251 the Alta Verapaz at Q 0.08, but none of these lavs clarified whether all laborers vere covered or only the seasonal hands. hfl The wages Dieseldorff paid varied according to the type of worker. Since the meseros received full rations, they were the low­ est on the scale. a week. In 1935* for example, Dieseldorff paid them Q 0.18 The same year the daily salaries of other laborers vere Q 0.05 for colonos, Q 0 .0 8 for seasonal hands who received food rations, Q 0.10 for those who did not, Q 0.10 for muleteers, Q 0.25 for carriers, and Q 0.13 for the caporales who headed the work gangs.^ Although the wages were a pittance, they were nevertheless competitive. The rates Dieseldorff paid differed little from those set by other planters, not only in the Alta Verapaz but elsewhere in Guatemala. Yet whatever the wage vas, the Indian seldom received more than a fraction of what he earned, because the patron deducted a portion from the amount to repay previous monetary advances and debts incurred at the plantation store. The Ley de TrabaJadores enabled plantation owners to secure the laborers he needed, and then provided him the legal means to con­ trol them. ties. The patron was obligated to maintain order on his proper­ To assist him in this respect the lav extended to him certain police powers, but it established only vague procedures for exercis­ ing these powers. In fact, the lav allowed the patron considerable leeway, because whatever actions he took vere to be dictated Mby ^ I b l d .. pp. 315, ^15; Leyes de Guatemala. Vol. LIV, p. 1206. ^Letter: EPD, Coban, to the Administrators of his fincas, May 1, 1935* DC, Finca Correspondence. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r local custom." Except for cases that involved fugitive debtor mozos or contractual disagreements, local officials had no legal authority to interfere in affairs on the finca, unless the owner requested their help. Some finqueros took advantage of the liberty given by the lav and were unduly s e v e r e ,5° but Dieseldorff eschewed cruel treatment. He was convinced that harshness only made the Indians recalcitrant' and unvilling to work. He vas, nevertheless, s t e m and demanded strict obedience, because he knew that laxity vas equally pernicious in undermining his authority and breaking dovn discipline on the finca. "The Indians of the Alta Verapaz," he stated, "are best handled as if they vere children." Then he added, "The patr6n must be decisive and strong so as that he might be able to exercise the authority he needs to have. . . . Above all, he must be kind, upright, and just in order that he might vin the loyalty and respect of his people. The Ley de Trabajadores created the position of alcalde auxiliar to help the patrones maintain order on their fincas. On ^Intervievs vith Mrs. Marla Luisa Dieseldorff de Hempstead and Miss Rosita Dieseldorff. ^ E r v i n P. Dieseldorff, Per Kaffeebaum. Praktische Erfahrungen fiber seine Behandlung im nSrdlichen Guatemala (Berlin 119083}, p. 33. The folloving letters contain an important statement of poli­ cy made by Dieseldorff in regard to the status of mozos on the plantations. In them he sets forth and explains the rules and regu­ lations for all categories of Indian laborers. Unless othervise indicated, these letters are the source for material relating to the treatment of his Indians. Letter and enclosure: EPD, Coban, to the Jefe Politico, Coban, April 21, 1932, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 816-822, DC; Letters: Max Quirin for EPD, Coban, to the Ministro de Agricultura, Guatemala, May 10, and June 2k , 1932, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 833, 896-897, DC. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r 327~1 plantations where there vere ten or more Indian families, the alcalde in the nearest municipality named an alcalde auxiliar from a list of five men submitted by the patron. If the plantation had a very large population, there could be several alcaldes auxiliares, as veil as subaltern*, called mayores auxiliares. to assist them. Although a municipal official made the appointments, the alcaldes auxiliares on the fincas vere solely responsible to the patrSn or his administrator. The alcaldes in the tovns, however, frequently attempted to give orders to the alcaldes auxiliares with­ out asking the patron's permission. Dieseldorff strongly objected to this practice, which he believed weakened his personal authority. At his request, the Secretary of Agriculture issued an order that strict­ ly prohibited municipal officials from communicating in any way with the auxiliares on the pleuitations, except through the owner of the property.^2 Dieseldorff had alcaldes auxiliares on all of his rural prop­ ert i e s,^ and he used them in many ways. In selecting a man for the position, he looked for someone vigorous, energetic, and trustworthy, someone with leadership ability who could above 11 handle eind •*2Letter: EPD, Coban, to the Ministro de Agriculture, Guate­ mala, February 26, 1926, Letterbook, "Varios Asuntos," No. 8, pp. k l ~ 1*3, DC; Letter: Salvador Herrera, Oficina de la Secretaxla de Estado en el Despacho de Agriculture, Guatemala, to EPD, Coban, March 12, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 60, DC. ^Agricultural amd statistical data on EPD's fincas (c. 1930), Letterbooks, "Asuntos ante las autoridades," No. 1, pp. 967-968, No. 2, p. 1*13, DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3281 511 control his fellow Indians and counanded their obedience. The alcaldes auxiliares conveyed Dieseldorff's orderB to the Indians on the finca. Often they vere also the general overseers of the labor gangs, and in this capacity their duty was to make certain that all hands appeared for work vhen they were supposed to come and to report all who did not. When a man illegally ran away from the plantation, the auxiliares vere to pursue him and bring him back. In addition to these functions, they vere to help maintain order on the planta­ tion and to settle arguments among the Indians. If one of the mozos committed a criminal act, the auxiliares vere to seize him and in­ carcerate him until the police came. The alcaldes auxiliares were of value to Dieseldorff in con­ trolling the Indians on his land, and he believed they helped him maintain his authority intact. The system enabled him to keep from becoming embroiled in the petty quarrels of the colonos. He per­ sonally intervened only when serious problems arose, or in the case of a dispute between the mozos and the plantation manager. In this way he vas able to keep his distance and maintain an image of impar­ tiality and strength. Dieseldorff did have occasional disciplinary problems on the fincas, however, but the law provided him and other landowners the legal instruments with which to handle the matter. The authors of the Ley de TrabaJadores from past experience anticipated the frequency ^^Letter: EPD, CCobanl, to Manuel Conlledo, Panzal, November HID, 1901, Letterbook, "Fincas," No. 1, pp. 220-222, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r with which problems of this nature would occur and allotted to them several paragraphs, which outlined alternate solutions the patr6n could take. The regulations gave less than token acknowledgment to the laborer's point of view, and the Indian's motives for running away or causing disorders or refusing to work were seldom examined in writing by the patrones. Bather they were explained in a facile and simplistic fashion as a result of the Indians' innate laziness and contumacy. Technically the laborer had freely contracted his serv­ ices , but in the usual sense he was not free at all. Perhaps he acted as he did out of a crushing feeling of frustration with his situation; perhaps he felt unconsciously tha« he had the right to refuse to work or to leave the finca in search of new opportunities; perhaps he vas striking out in defense of rights and liberties he believed had been infringed; perhaps it was for all these reasons and many more. One of the most commonplace problems encountered by Dieseldorff and other finqueros vas with colonos and enganchados vho left the plantation still owing money or personal service. Ordinarily Dieseldorff sent the alcaldes auxiliares to find the runaways, seize them, and force them to return to the finca. When his agents vere unsuccessful in their efforts, he then requested help from municipal officials and the Jefe Politico, who were required by law to co­ operate. The Ley de TrabaJadores further aided the finquero in han­ dling fugitive mozos, because it prohibited them from accepting work or advances from another patron until they had settled accounts. The landowners vere ordered not to hire any Indian vho did not have a certificate of solvency from the foraer patron. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r The runaway Indians were often men who had incurred debts so large that they would have to work for monthB or years to repay the money. In June, 1928, for example, Dieseldorff reported that four men had fled from El Salto, each of whom owed about 200 pesos (Q 3 . 33).^ A few months later his daughter asked for assistance in capturing five mozos from Coyoctl. One of the fugitives owed the finca nearly 1,1(00 pesos (Q 23.33).*^ In February, 1932, twenty-two colonbs, Dieseldorff informed the authorities, ran away from Secol, leaving behind debts that ranged from 56 pesos to 1 ,31(1.50 pesos (Q 1.00 to Q 22.36). 57 By United States standards these sums were niggling, but for the colono who earned Q 0.05 a day the debt was an unconscionable onus. Dieseldorff believed that he must deal sternly with runaway Indians. If he failed to do this, the fugitives would, in his opinion, "set a bad precedent for the other mozos who will start to think that 58 they can leave the finca whenever they wish."5 Corporal punishment, although legal, he considered unnecessary, because there were other ^Letter: EPD, Coban, to the Jefe Politico, Coban,Cc. June 11-15, 19283, Letterbook, "Asuntos ante las autoridades," No. 1, p. U86, DC. ^Letter: Max and Matilde Quirin, Coban, to the Jefe Politico, Coban, October 30, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. 591, DC. ^Letter: EPD, Coban, to the Juez de Paz, Carcha, February 20, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 1U9-150, DC. cD Letter: EPD, Coban, to the Jefe Politico, Coban, February 9, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. 383, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 33fl ways to handle the problem. The law permitted him to confiscate all the man's property as settlement for the debt. In most instances Dieseldorff castigated the mozo by turning him over to the munici­ pality or to the Jefe Politico, who put him to work on the public roads for a few weeks.59 Since the Indians disliked road work, the threat of their being forced into it acted as a strong deterrent, and few finqueros hesitated to hold it over the mozos' heads. If the runaway had a past record of being an habitually intractable and dis­ obedient mozo, Dieseldorff barred him from uis properties to prevent his influencing the other workers to act in a similar fashion. Another problem Dieseldorff had was with mozos who refused to work. He usually encountered this situation when he bought a finca, such as Chiquixjl, where discipline under the previous owner had been lax, but the difficulty wps not limited to new properties. Diesel­ dorff, with the assent of the Jefe Politico, ordered the alcaldes auxiliares to enter the dwellings of the disobedient mozos and force them to go to work, but often the men had hidden themselves and were nowhere to be f o u n d . ^ Obstinate refusal to work or to accept orders, Dieseldorff determined, could not be allowed to go unchastised, be­ cause it was an infectious example that could spread to the other ^Letter: EPD, Coban, to the Jefe Politico, Coban, May 28, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, p. 270, DC; Letter: EPD, Coban, to the Alcalde 1° Municipal, Coban, June 3, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, p. 275, DC. ^Letters: EPD, CobSn, to the Jefe Politico, Coban, June 11, 1926, and June l U 9 1927, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 95-96, 200, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 332~1 mozos. As he had with the runaway debtors, he requested local offi­ cials to punish the men, and if they vere particularly rebellious to his authority, to put them to work on the roads When Dieseldorff encountered problems that he vas unable to handle alone, he turned to the government for assistance. For example, he frequently discovered squatters— -landless Indians vho had illegally made milpas on his land. If the Indians agreed to become colonos, he allowed them to remain, but if they refused either to sign a contract with him or to leave, he expelled them with the help of the local authorities and destroyed their cultivations. On several occasions he also had disciplinary problems of a different nature. The finca Secac, for instance, vas remote and ac­ cessible only with great difficulty. The inhabitants vere indepen­ dent in spirit and had a long history of resisting vith force the in­ trusion of outsiders to vhat they still considered their traditional lands. During the late 1890's, after Dieseldorff had acquired the property, leaders arose in the community who advocated, as others had in the past, open defiance and seizure of the land for themselves. Twice during this period it was necessary for Dieseldorff to seek the ^Letter: EPD, Coban, to Benvenuto Lopez, Seacte, June 17, 1901, Letterbook, "Fincas,” : >. 1, pp. 100-101, DC; Letter: EPD, Cob&n, to Guillermo Cacao, Raxuhfc, December 16 , 1925, Letterbook, "Fincas," No. 10, p. 807, DC; Letter: EPD, Cobfin, to the Jefe Politico, Coban, May 26, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 268-269, DC. ^Letter: EPD> CCob£n3, Rafael Mollinedo, Secac, August 25, EPD, CobSn, to the Juez de Paz, C archS., September 13 and 16, 1926, Letter­ book, "Asuntos ante las autoridades," No. 1, pp. 1U 5-IU6 , DC. 1898, Letterbook, "Varias Cartas," No. 1, p. 187, DC} Letters: L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r I 333 assistance of the military police to Jail the leaders and to restore his control. Other instances of disobedience Dieseldorff handled according to the seriousness of the matter. In most cases he refrained from becoming personally involved and asked the alcaldes auxiliares and the administrators to deal with the problem themselves, using their own Judgment. Sometimes he expressed his opinion, but usually he did this in the form of a recommendation. For example, he advised the manager at Santa Cecilia to bear down on a mozo who persistently re­ fused to obey orders and to castigate him by assigning him tasks that he did not like.^** When a group of carriers coming from Chiquixjl got intoxicated along the way and lost a sack of mail, he suggested that the instigators be Jailed and the others severely punished, ex­ cept for one man who he believed was basically a good, docile Indian. In his case a strong reprimand would be sufficient If he was to preserve order and maintain discipline on the fincas, Dieseldorff knew that it was important that he have the fidelity and respect of the Indians. The law imposed few obligations Petition by EPD to the Comlsionado Politico de Carcha (December 18, 1893), DS, Santa Cecilia-Secac Box; Order issued by the Comisionado Politico de Carchi (December 19, 1893), DS, Santa Cecilia-Secac Box; Report of the Comisionado Politico de Carchi (January 8 , I 89U), DS, Santa Cecilia-Secac Box; Petition by EPD to the Jefe Politico (May 19, 1898), DS, Santa Cecilia-Secac Box; Report of Manuel S. Galan to the Jefe Politico (May CJunel 21, 189 8 ), DS, Santa Cecilia-Secac Box. July 3, ^Letter: EPD, Coban, to Lisardo Martinez, Santa Cecilia, 1901, Letterbook, "Fincas ,11 No. 1, p. 119, DC. ber 11, ^Letter: CEPD3, Coban, to Vicente P€rez, Chiquixjl, Decem­ 1925, Letterbook, "Fincas," No. 10, p. 79^, DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3341 on the landowner, but Dieseldorff ro cognized that the privilege of being a patrfin carried concomitant reaponaibilitleB, which he had to fulfill or risk losing the confidence of the mozos. The Indians on his plantations vere like serfs, for they vere totally dependent on him. In their position and under the lav they vere open to cynical exploitation, but Dieseldorff was a practical businessman, lie knew that there vere limits to vhat he could demand of the Indians, and if he exceeded these, discipline could become a problem of serious pro­ portions. This in the long run would be detrimental to him and to his whole enterprise. Moreover, Dieseldorff's feelings towards his mozos vere sincerely paternalistic, and, within his own definition of the word, he was interested in their volfare. In addition to disciplinary problems among the Indians, Dieseldorff also encountered trouble from persons outside the finca. With irritating regularity Dieseldorff ran into difficulties vith municipal authorities and local commandants, vho harassed or illegally seized colonos from the fincas. Every Indian vas required by lav to have on his person at all times tvo documents— a receipt for payment of the corvSe tax and a military exemption certificate. Dieseldorff provided these papers to his colonos, but occasionally the men forgot to carry them. Officials vho vere looking for laborers to fill the road vork gangs or to cultivate town lands, impressed men they found without certificates. In some instances they summarily commandeered a man vho had the proper documents in his possession under the pretext that L , R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 33T| the papers vere invalid. 66 When thia happened Dieaeldorff atrongly proteated to the town government and to the Jefe Politico, becauae auch arbitrary acta, he argued, in addition to impeding work on the finca, led the mosoa to "refuse to aacept the tickete, saying that there ia no uae in doing ao if the authorities are going to ignore the certificates."^ Dieaeldorff of course realised that if the men refused the tickets, they would not have the proper documents on their person, and this would give the officials a legal excuse to seise them. When the officials involved persisted in taking laborers from hia fincas, Dieaeldorff pragmatically offered to apportion them one or tvo men a week in exchange for an agreement that they desist from bothering the people on his land. 68 Town officials also sought to use colonos in minor municipal positions, such as third or fourth subaltern to the mayor auxiliario, nightvatch policemen, building custodians, or general lackeys. The posts, which vere referred to as a "patriotic service," paid little 66 Letter: EPD, Cobfin, to the Jefe Politico y Comandante de Armas, Guatemala, July 13, 1926, Letterbook, "Asuntoa ante laa autoridades," No. 1, p. 110, DC; Letter: EPD, Cobfin, to the Alcalde 1° Municipal, Santa Cruz V., February 7» 1930, Letterbook, "Asuntoa ante las autoridades," No. 1, p. 931, DC; Letter: EPD, Cobfin, to the Jefe Politico, Cobfin, August 20, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, p. 502, DC. 6T Letter: EPD, Cobfin, to the Jefe Politico, Cobfin, June 22, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 99, DC. 68 Letter: EPD, Cobfin, to the Alcalde lc Municipal, Carcha, October 26, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 157, DC; Letter: EPD, Cobfin, to the Jefe Politico, Cobfin, April k, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, p. 726, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r or no money end required the man's presence for tvo veeks a month. Although the Guatemalan Minister of Justice, at Dieseldorff*s request, had issued on order that prohibited town governments from using com- 69 1rack colonos for municipal services, 7 local officials continued this practice. One of the reasons for the Minister's ruling was that colonos, vho vere already obligated to work for tvo weeks a month for the patr 6n, would "suffer hardship" if forced to work in the town during their free weeks. When Dieseldorff received notice of the appointment of one of the Indians from his fincas to a municipal post, he made vehement objections. In doing so he cited the legal grounds for his protest, and also mentioned that if the colono did not tend 70 his milpa during his weeks off, he would run short of food supplies. Occasionally one of the mozos got into legal difficulties, and Dieseldorff had to appear before the local magistrate to settle the matter. For example, from time to time the police arrested one 69 > •^Letter: EPD, Coban, to the Ministro de Agriculture, Guate­ mala, February 26, 1926, Letterbook, "Varios Asuntos," Mo. 6 , pp. 1*11*3, DC; Letter: Salvador Herrera, Oficina de la Secretaria de Estado en el Despacno de Agriculture, Guatemala, to EPD, Cobfin, March 12, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 60, DC. Letter: EPD. Cobfin. to the Jefe Politico,CCobfin!, January 2 1 , 1 9 2 6 , jje v b e ro o o K , nsvuvtos tuiue x a s a u b u r iu a u e s , ho . ,p . x j|, DC; Letter: EPD, Coban, to the Alcalde Municipal, Tactic, January 25, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 39, DC; Letter: Javier N. Jufirez for Marcelino Chun, Cobfin, to the Alcalde 1° Municipal, Cobfin, January 8 , 1929, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 663-661*, DC; Letters: EPD, Cobfin, to the Jefe Politico, Cobfin, January 10, 1 9 2 9 , and January 2, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 667, 687, DC; Letter: EPD, Cobfin, to the Alcalde 3° Municipal, Cobfin, January 30, 1930, Letterbook, "AsuntoB ante las autoridades," No. 1, p. 92l*, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 337~1 of the mozos for mlBdemeanors such as disorderly conduct or drunkennesB. Although he helped the man through the legal proceedings, he did not protest the fine or punishment if he believed the charge vas valid and the sentence justified. 71 Nevertheless, if the Indian was kept in Jail after he had served his term, Dieseldorff insisted upon his immediate release.^ In addition to the problems encountered vith government offi­ cials, Dieseldorff had frequent disputes vith other finqueros vho ad­ vanced money to Indians vho vere under contract to him. Although the lav strictly prohibited anyone other than the man's patron to grant money to colonos or to jornaleros habilitados, this vas a commonplace occurrence. The system of habilitaciones invited corruption. Many planters vere villing to use any means to secure laborers, and the Indians, vho perhaps vere not alvays entirely innocent, accepted the cash offered to them. When handling such cases, Dieseldorff's policy vas flexible. If he vas convinced that the mozo had taken the money knoving that this vas against the lav and thus had consciously attempted to defraud him, he turned the man over to the tovn magistrates for punishment. In some instances the person vho made the advance, taking advantage of the ignorance of the Indian, had duped him into accepting the money 71 Letter: EPD, Coban, to the Juez de Paz, Coban, December 26, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, p. 361, DC. ^Letter: EPD, Coban, to the Jefe Politico, Coban, Septem­ ber U, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. l UO, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3351 and making a work commitment. At other times, however, the man did not check carefully to make certain that the mozo had no outstanding obligations. Dieseldorff*s solution in these cases vas to repay the amount given the mozo 73 and to obtain a quitclaim from the advancer. 7k Generally he did not pursue the matter any further, unless he thought that the habilitaci6n had been a deliberate attempt to lure away con­ tract mozos from his fincas. cials punish the advancer. Then he demanded that government offi- 75 Under the Ley de TrabaJadores finqueros vere obligated to provide housing for their colonos, or to give them the materials necessary to build a dwelling. Throughout the Alta Verapaz the Indians lived in one-room huts that vere rudely constructed by em­ bedding poles vertically into the ground and tying them together to form the walls. floors. The tiny structures had thatched roofs and dirt Dieseldorff urged his people to fill in the cracks between the poles with adobe in order to keep out the rain and cold. To im­ prove sanitation facilities he ordered the administrators to dig ^Letter: EPD, Coban, to the Juez de Paz, Carcha, January 23, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 38-39* DC; Letter: Max Quirin for EPD, Coban, to Jose L. Vidaurre, Coban, February 2k, 1926, Letterbook, "Varios Asuntos," No. 8, p. 38 , DC. Y ji 1 Quitclaim receipts dated September 6, 1927 (tvo documents), September 8, 1927, May 26, 1928, September 1, 1930, and August 8, 1932, DS, "Varios" Box. ^Letter: EPD, Coban, to the Jefe Politico, Coban, October 6, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 150, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r privies, following the plans of the model recommended by the 76 Rockefeller Foundation.' So as to cut down the incidence of intes­ tinal disorders, which were endemic in the department, he tried to provide potable water sources near the living quarters by digging wells and tapping underground rivers. The colonos were free to build their houses at any place on the finca not under cultivation, subject tc Dieseldorff*s approval of the site. For the purpose of work, it would have been more efficient to have all the huts located together in a single compound, but there was a strong traditional feeling against this, and Dieseldorff, per­ haps as an outgrowth of his ethnographic studies, accepted the customs of the Indians in this matter. On some fincas, such as Cubilguitz, the dwellings were scattered over the entire property. On fincas that had a large population, such as Chajcar, Secac, and Santa Cecilia, there were numerous tiny villages or aldeas, where twenty or thirty families lived together. The communities had existed for generations, and Dieseldorff recognized that each had a cultural identity of its o w n . ^ Rather than destroy the traditional social structure by forcing the people to integrate into a single unit, Dieseldorff permitted the Indians to live in groups, as they had ^Letters: EPD, Cobfin, to the Alcalde 1° Municipal, Cobfin, February 10 and 11, 1928, Letterbook, "Asuntos ante las autoridades," Ho. 1, pp. 387, 388, DC. 77 Franz Termer, "La habitacion rural en la America del Centro, a traves de los tiempos," Anales de la Sociedad de Geografia £ Historia, XI, 1* (June, 1935), p. ^08. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r before, and to maintain their village and family ties.?® DieBeldorff was under certain obligation to provide medical attention to the mozos on his fincas. When someone fell sick, he usu­ ally treated the patient himself, or called one of the local medicine men. If the illness was serious, he sent the person to the hospital in CobSn.79 He also kept a first-aid kit on each of his fincas in case of accident or emergency. 80 To protect the people against vhat he considered to be the evils of alcohol, and to avert disorders on the fincas as well, he rigidly enforced the government ban on the sale of liquor on the fincas.®1 The plantation managers had strict orders from him to destroy all stills, fermenting vats, or alcoholic beverages that they discovered, and to turn over to the police any persons found Qp making or selling liquor. During the mid-1920's Dieseldorff became an active participant in a government campaign against smallpox. The Ley de TrabaJadores re­ quired patrones to vaccinate Indians cn their fincas against the virus, ?®Intervievs with don Arturo Morales de la Cruz and don Manuel Burmester. ^Letter: Friedrich Ferchland for EPD, CobSn, to the Direc­ tor del Hospital del Norte, Coban, August 31, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. 5**8» DC; Letter: EPD, Coban, to the Director del Hospital del Norte, Coban, April 12, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, p. 73^, DC. flo Inventories of EPD's fincas (1930), DC. 8llbarra, p. 3 M . Letter: EPD, CCobSnl, to Manuel G. Rubio, Santa Cecilia, March k, 1907, Letterbook, "Fincas," No. U, p. 11, DC; Letter: EPD, Coban, to the Administrador de Rentas, Coban, January 15, 1932, Letterbook, "Asuntos ante las autoridades," No. 2, p. 700, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3 4 l" l but not everyone complied. Furthermore, there were numerous isolated Indian villages in the Alta Verapaz, vhose residents refused to be innoculated for superstitious reasons, and these places presented a QO health hazard to all the department. At the same time the public health budget for the Alta Verapaz, which vas less than $ 700. in 1928, 84 vas hardly adequate to cover the cost of immunizing the entire population. In 1927 and 1928 several cases of smallpox occurred in the area north of Coban and Carcha, and many persons, such as Dieseldorff, feared that the disease would spread and reach epidemic proportions. Dieseldorff, in order to prevent an epidemic on his fincas, at his own expense revaccinated all persons living on his properties.®-* In addi­ tion, he built small lazarettos on several of his fincas, where he could treat and quarantine the unvaccinated from the region who contracted the infection. 86 He assisted the local authorities in patrols ling the roads and footpaths north of Coban to the finca Dolores, ®®Letter: EPD, Coban, to the Jefe Politico, Coban, November 14, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, p. 342, DC. ®^Fomento (1929), p. 168. Letter: EPD, Coban, to the Alcalde 1° Municipal, Cobin, April 26, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, p. 241+, DC; Letters: EPD, Coban, to the Jefe Politico, Coban, Septem­ ber 19, and October 13, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 329, 334, DC. 86 Letter: EPD, Coban, to the Jefe Politico, Coban, February 3, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 378379, DC; Letter: EPD, Coban, to the Alcalde 1° Municipal, Carcha, February 9, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. 385, DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3A27! where several cases had occurred, in order to prevent the disease Qtj from spreading to other parts of the department, 1 and he reported QQ suspected cases to health officials. Under both the Reglamento de Jomaleros and the Ley de TrabaJadores, finqueros were also responsible for the education of the Indian children on the fincas. Plantation owners who had ten or more families living on their property were required to operate a free school at their own expense for children betveen the ages of six and fourteen; however, the results of the law in raising the literacy rate of the Indian peasants were nil. For many years the law was a dead letter, ignored by the landowners and unenforced by the govern­ ment . The social and economic conditions of the rural areas of Guatemala made the education law difficult to put into effect. For the small landholder the cost of establishing and supporting a school was prohibitive, because a property that had ten or fifteen resident families produced at the most one hundred quintales of pergamino cof­ fee a year, and the profits from such a crop were small. ®^Letter: EPD, Coban, to the Alcalde 1° Municipal, Coban, De­ cember 8, 1927* Letterbook, "Asuntos ante las autoridades, No. 1, p. 351*, DC. OD Letter: EPD, Coban, to Dr. J. Domingo Carrillo, Coban, May 3, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. W»6, DC; Letter: EPD, Coban, to the Jefe Politico, Coban, May 26, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. VfO, DC. Oq Guatemala, Plan de estudios £ programas para las escuelas rurales de la Repfiblica (Guatemala. 1933J, pp. ^2-u3. ^°Letter: EPD, Coban, to the Presidente de la Repfiblica, Guatemala, January 3, 1929* Letterbook, "Asuntos ante las autoridades," No. 1, pp. 65I-65 U, DC. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. 343^1 r Further compounding the problem vas the level of instruction throughout the Alta Verapaz. In 1905, for example, there vere thirty urban schools in the department, and of the forty-tvo persons who taught at these places only sixteen had a bachiller. the equivalent of a high school diploma.9* Under any circumstances it vas difficult to obtain a properly trained teacher, and impossible to find one vho vas villing to be an instructor at a small school on a remote finca. At the same time, attendance at the schools that, vere established vas extremely poor, because under the lav it vas not the responsibility of the finquero to make certain the children vent to school. Instead, the matter vas left up to the Indian parents, vho vere not culturally oriented tovards education and vho undoubtedly had an atavistic fear of it.92 The greatest impediment to the development of rural schools in Guatemala, hovever, vas the negative attitude of the landed oli­ garchy. They vere opposed to the education of the Indian out of the conviction that it vould ruin the plantation system, because in their opinion, the Minister of Education remarked, all it accomplished vas to "prepare the child for an environment totally different from his ovn."93 Dieseldorff vas voicing the sentiments of the finquero class vhen in a letter to the President of Guatemala he vrote, 9*Fomento (1906), pp. 176-177. 92 Guatemala, Memoria de la Secretarla de InstrucciSn Publics> presentada a la As amblea Nacional Legislative en 1899 (Guatemala C18993), p."217. 9 3Ibid. (193U), p. lVr. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Of vhat value is it to a plantation hand to be able to read and vrite, or to know about history and geography? , . . Is it not true that giving the Indian classes a higher educa­ tion than their social position requires only serves to disrupt their work? We know this for a fact, because we have learned from experience that the Indians vho have learned to read and vrite are no longer useful as agricultural vorkers. We all vant the economic advancement of the Republic, end the best vay to achieve such progress is to Increase the pro­ duction of food staples and export crops. If ve are to suc­ ceed in attaining this goal, hovever, ve need vorkers that are contented vith their social status, not an abundance of learned persons vho look upon manual labor vith arrogant dis­ dain. 9** He vas not opposed to the education of the Indians, Dieseldorff vent on to explain, so long as it served the purpose of teaching and pre­ paring them for vork they vould have to do in later life. During the late 1920's the Guatemalan government initiated efforts to enforce the rural school lav, and it began to impose fines on landovners vho failed to c o m p l y . S i m u l t a n e o u s l y , the Ministry of Education drev up a nev four-year curriculum program designed ex­ pressly for use on finca schools. The plan reflected the interests of the landed class, for although the children vere to be taught the rudiments of Spanish and mathematics, the main emphasis vas on their acquiring basic, practical skills that vould prepare them to be agri­ cultural vorkers. The course of study for the boys included such subjects as deportment, hygiene, and voodvorking. Most importantly, they vere to learn applied— not theoretical— principles of animal ^ Letter: EPD, Coban, to the Presidente de la Republics, Guatemala, January 3, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 651-65fc, DC. ^Letter: EPD, Coban, to the Jefe Politico, Coban, May lU, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 258-259, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 34in husbandry and agriculture. The instructor vas ordered not to confine the lessons to the classroom but to take the boys into the fields and show them the proper techniques for using and repairing farm tools, for planting food staples, and for the cultivation and maintenance of coffee trees. The girls vere to learn domestic skills, such as sev- 96 ing, cooking, and keeping house,7 Betveen 1926 and 1927 Dieseldorff established schools at Chadcar, Secol, Raxaha, Rio Frio, and El Salto, a total of five. The ChaJcar school served the children from that finca as veil aB those from Santa Cecilia and Sechaib. ChiquixJi-Raxaha area. The one at Raxaha vas for the The children from Santa Margarita, Chichochoc, and Sachamach attended the public school in Cobin, and those from Raxpec, the one in Carcha. Oving to the small number of children at Cubilgftitz and San Diego-Yalpemech, there vere no schools at these plantations.^ 96 7 Guatemala. Plan de estudios . . . escuelas rurales. pp. 7kk. ^Letters: EPD, Coban, to the Jefe Politico, Coban, April 23 and 26, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 69-70, 74, DC; Letter: EPD, Coban, to the Alcalde 1° Municipal, Chisec, May 18, 1926, Letterbook, "Asuntos ante las autoridades," No. 1, p. 81, DC; Letter: Max Qulrin for EPD, Cobin, to the Alcalde 1° Municipal, Coban, January 25, 1927, Letterbook, "Asuntos ante las autoridades," No. 1, p. 207, DC. Dieseldorff gave a number of other reasons for not establishing schools at Cubilguitz and San DiegoYalpemech. He stated that because the climate at both places vas unhealthy, the children vere often sick and fev reached adulthood. Moreover, since the dvellings of the Indians vere videly scattered over the plantation, the children in order to get to a centrally located school had to valk several miles through uncleared Jungle vhere poisonous snakes, vild boars, and cougars posed a threat to their lives. As a result, Dieseldorff said, the parents refused to allov the children to go out beyond the cleared areas vhere they vould be exposed to danger. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r The schools vere very small, and the teaching materials and school supplies vere hut the barest essentials. In 1931, for example, there vere sixteen boys enrolled at Chajcar, yet at the same time there vere more than 150 children of school age at Chajcar and Santa Cecilia. A similar situation existed at Raxah&, vhere there vere q8 sixty-eight children, but only sixteen attended the school.7 The equipment at Chajcar consisted of a blackboard, sixteen hand slates, and four primers; at Raxaha, one blackboard, nine hand slates, eleven primers, and one elementary reader; at Secol, one blackboard, four hand slates, five primers, and one reader; at Rio Frio, one blackboard, fifteen hand slates, and one arithmetic book; at El Salto, one black­ board and tvelve hand slates.^9 The textbooks and readers vere standard manuals designated by the government for use in the rural schools. The teachers at the finca schools vere themselves Indians or half-Indians. They vere paid by the patron, and on Dieseldorff's plantations the annual salaries ranged from 3,600 pesos to b,200 pesos (Q 60 . to Q 70.). All of the men employed at Dieseldorff's schools vere sin tltulo. that is, vithout a bachiller degree, and in their teaching they emphasized the development of manned skills. Under these circumsteuices the level of instruction vas lov. At 98 Letter: Friedrich Ferchland for EPD, Coban, to the Inspec­ tor Tlcnico de Educacion Pdblica, Coban, June 1, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, p. 378, DC; Agricultural and statistical data on EPD's fincas (1931), Letterbook, "Asuntos ante las autoridades," No. 2, pp. 553, 58U, DC. 99 Inventories of Chajcar, Santa Cecilia, Raxaha, Secol, Rio Frfo, and El Salto (1930), DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Chajcar only one pupil vas able to read, vrite, and speak Spanish; at Raxahfi, seven could; at Rio Frio there vere none.*00 Dieseldorff*s compliance vith the rural school lav vas per­ functory. Nonetheless, vhereas other planters continued to evade the obligation, he at least folloved the letter of the lav. The results vere depressing, hovever, for illiteracy, superstition, and Ignorance vere perpetuated rather than erased. For this Dieseldorff vas not entirely at fault, because the pedagogical philosophy behind the lav and the lav itBelf delimited the amount, quality, and type of instruction the children of the majority group in Guatemala vould receive. Its objective vas not to enlighten but to maintain the status quo and to assure the plantation gentry of having the manual laborers they needed for generations to come. The governments of Guatemala, in their efforts to help the lsndovners of the Republic secure the unskilled vorkers they needed, promulgated lavs, vhich in effect perpetuated a type of feudal labor system on the plantations of the country. It vas a system based on the premise of the inequality of the largest segment of the popula­ tion, and one that invited deceit, abuse, corruption, and exploita­ tion. Dieseldorff and his countrymen, together vith their ladino counterparts, vorked vithin the system, and as coffee planters they benefited from the fruits of the labor of the Indians, vho vere an *®®Letter: Friedrich Ferchland for EPD, CobSn, to the Inspec­ tor Tlcnico de Educacion Pfibliea, Coban, June 1, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, p. 378, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3481 integral and indiapenaible part of the plantation system. Dieseldorff, in his treatment of the Indians, exhibited a paternalistic regard for them, which vas generally more noticeable than that of most other planters. He also recognized that there vere limits to their endurance, patience, and respect. He believed that he had obligations and responsibilities to them, and they to him. Theirs vere work; his something more intangible. So long as they performed their assigned tasks and followed orders, he left them alone. He did not attempt to alter their traditional vay of life to any significant degree. He allowed them to continue their religious practices and customs, and in fact he encouraged them to keep these alive, because he vas a student of their culture and their past. He objected to their habits and ceremonies only if these interfered with their work, for example when they participated too frequently in drunken religious celebrations.*0* During Dieseldorff’s lifetime the system worked smoothly, and the disruptions and challenges to his authority that occurred were relatively minor. As patron Diesel­ dorff had almost unlimited powers over the Indians on his land. He exercised his powers with firmness and consistency, but tempered with some realistic discretion. *°*Letter: EPD, Coban, to the Jefe Politico, Coban, March H, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, p. 167, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r n CHAPTER IX LABOR ON THE PLANTATION COMPLEX: ADMINISTRATIVE, TECHNICAL, AND CLERICAL PERSONNEL A plantation complex as extensive as Dieseldorff's was too large for one man to operate alone. Therefore, in addition to un­ skilled Indian laborers, Dieseldorff needed administrative and cleri­ cal personnel and technical assistants. In the central office in Coban he had to have employees to handle correspondence, bookkeeping, and other everyday business matters. On the administrative level he needed a general supervisor in the central office and overseers to manage the fincas. He also required the services of skilled workers, such as professional mechanics who were needed to keep the machinery on the plantations in running order, and occasionally also stonemasons and carpenters. These various positions demanded persons with an education or special training and skills. At the turn of the century Dieseldorff had in the central of­ fice and on the fincas about a dozen staff employees,1 but as he ac­ quired new properties there was a corresponding increase in the size of the staff. At the time of his retirement he had nearly forty per- sons working for him. p This number included an office manager, an 1Ledger, "Libro Mayor," 1900-1902, pp. 16-18, 23-25, 28, Uo1*1, U8-U9 , llU-115, 125-126, DC. 2 Letter: EPD, Coban, to the Intendente Municipal, Coban, October 11, 1935, Letterbook, "Asuntos ante las autoridades," No. 3, p. 933, DC. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. r 35FI as slatant manager, a general assistant, several clerks and book­ keepers, a store manager, a finca inspector, overseers for each of the plantations, and a mechanical engineer. Dieseldorff engaged both Guatemalan ladinos and Germans to work for him, but like the other Germans in the Alta Verapaz, he pre­ ferred to employ his countrymen. This vas not because he vas preju­ diced against the Guatemalans or doubted their abilities. vas based on fact. H1 b choice The ladinos vhom he could hire generally lacked the training and experience to fill many of the Jobs. The international nature of Dieseldorff's commercial activi­ ties perforce imposed several mandatory Job qualifications, particu­ larly on those positions in the central office that carried the most responsibility.^ The firm exported coffee to markets in Great Britain and Germany and, on a smaller scale, imported manufactured articles from Europe and the United States for the store in Cob&n. Thus, to conduct business and carry on correspondence, fluency in English and German vas of greater value to members of the office staff than vas Spanish. The office employees also needed to be familiar vith the operations and procedures of the European commodity markets and to be able to handle vith facility everyday problems such as cost account­ ing, currency conversions, and short-term interest calculations. The bookkeeper additionally had to be a skillful accountant so as to maintain and balance a complicated set of books, because Dieseldorff Letter: EPD, Coban, to the Director del Departamento Nacional del Trabajo, Guatemala, February 21, 1929* Letterbook, "Asuntos ante las autoridades," No. 1, pp. 690-692, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r kept a separate account for each employee, each finca, and each phase of his business. The store manager needed experience in merchandis­ ing, determining profit margins and retail prices, and keeping in­ ventory. The mechanical engineer, vho worked out of the central of­ fice, had to be familiar vith agricultural equipment and vehicles of North American and European manufacture in order to assemble and in­ stall machinery at the Chichochoc retrilla and on the fincas, to teach others the correct operating and maintenance procedures, to keep the machinery on all the plantations and the motor vehicles in Coban in proper running order, and to make repairs when necessary. Frequently the engineer vas also charged with supervision of roadbuilding and repair work on the fincas and vith overseeing construc­ tion of water basins, fermenting vats, and drying terraces around the beneficios. For these functions Guatemalans vere at a distinct disadvan­ tage, for the German immigrants had had the opportunity to attend professional or vocational schools in a more advanced country. In Guatemala the business and commercial instruction available to the native-born vas almost nil, because the school curricula seldom, if ever, included such subjects. The salient absence of specialized business and vocational training courses severely handicapped the ladinos from the Btart. Scarcely any had the training that the ofk fice jobs required, and there vas little chance of their getting it. h The present-day Dieseldorff firm is still hard-pressed to find sufficient, adequately trained office personnel in the depart­ ment although educational facilities have improved since Ervin Dieseldorff's time. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Moreover, although a few spoke Kekchl, most of them vere monolingual. Since their lack of preparation greatly restricted the number of positions they vere qualified to fill, the number of Guatemalans vho vorked in the office vas alvays small. On the fincas the situation vas different, and here the managers included Germans as veil as Guatemalans. Many of the Germans Dieseldorff hired had attended or had been graduated from agricultural schools in their native country. Although they usually knev little about coffee, they vere able to adapt the principles of modern arbori­ culture, vhich they had been taught, to the cultivation of that crop, but they still had to learn from the beginning the correct method of preparing the beans. The Guatemalan supervisors as a rule had not studied agricultural science in school, but rather had learned vhat they knev from first-hand experience. Dieseldorff believed that formal instruction, vhile it vas desirable, vas not absolutely necessary, for he did not misprize the knovledge that an intelligent man vith common sense could acquire by vorking in the fields and in the processing plants. Furthermore, in his opinion,honesty, reliability, and the ability to handle Indian mozos vere prerequisites as essential as technical training. When Dieseldorff chose an administrator, he took into consideration the man's character, as veil as his experience. Up until World War I, nevertheless, most of the managers on Dieseldorff's plantations vere Germans, because he found that their academic preparation enabled him to train them more quickly, and equally important because experienced ladinos vere difficult to find. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3531 Although Dieseldorff always had both Germans and Guatemalans on his staff, chronologically the ratio of one national group to the other falls into three periods.*’ Prior to 1905 he had a few Germans working for him in the office, but the majority of his employees were ladinos. From 1905 to about 1920, Germans were by far the larger group, but after the latter date the Guatemalans once more became pre­ ponderant and remained permanently in this position. The reasons for the changes were economic and legal. All totalled, approximately eighty Germans were employed by Dieseldorff at one time or another between 1890 and 1936. A small number of these men had settled in the Alta Verapaz several years prior to their coming to work for him, but the majority came from Europe as contract workers. He generally paid the passage and travel expenses for these men and offered them other inducements to secure their services. The cost of recruiting and bringing contract workers to Guatemala was relatively high, and during the early part of his career Dieseldorff could not afford the expense. Consequently for the first few years he employed only four or five Germans for those -’Unless otherwise indicated data regarding Dieseldorff's em­ ployees come from the ledger series "Libro Mayor," which consists of fourteen volumes and covers the period from 1898 to 19^0, For the sake of brevity the author will omit footnotes for broad generaliza­ tions in which each volume and countless pages therein would have to be cited. There will be footnotes, however, for individuals men­ tioned by name in the text. The author's compilation of Dieseldorff's German employees was collated against the list of German immigrants to the Alta Verapaz that appears in Deutschtum in der Alta Verapaz (Stuttgart, 1938), Table I, pp. 77-96. The Table gives the date and place of birth of each man, the date of his arrival in the department, and his occupa­ tion. In most cases it also indicates briefly what he did in later life. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 354~1 positions that ladinos could not fill, and he hired Guatemalans as plantation managers. As Dieseldorff's business prospered and his financial posi­ tion became stronger, he began to bring contract vorkers from Germany in larger numbers. this baBis. From 1905 to 1914 he hired nearly thirty men on The annual figure fluctuated from one in 1906 and three other years, to eight in 1914. Gradually he replaced the ladino ad­ ministrators vith Germans and increased the size of the staff as veil. At the outbreak of World War I he had fifteen Germans working for him, and Germans served as managers of all the major plantations, ex­ cept Santa Cecilia. In 1919 and 1920 most of the Germans vho had vorked for Dieseldorff during the var left his employ. Some resigned volun­ tarily; others he dismissed either because he vas displeased vith their conduct during the years that he vas absent from Guatemala and his business vas confiscated by the government, or in the case of certain employees, because he lacked the money to pay the high salaries they vere receiving. Also, Dieseldorff at this time vas in a severe financial bind and could not afford to bring contract vorkers from Germany to fill all the vacated posts. In 1920 he brought over one man, and four each year in 1921 and 1922. After 1920 Dieseldorff hired Germans only for those positions in vhich they vere absolutely essential and Guatemalans for all others. Aside from the economic reasons, this vas no doubt a deliberate move on his part. tion. He had learned a lesson from the World War I interven­ He sav that his being a foreigner put his business in a L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 35I vulnerable position. Were he to continue employing Germans instead of Guatemalans, he vould be leaving himself open to charges of foreign exploitation and imperialism, which could Jeopardize his entire busi­ ness. Moreover, the overthrow of President Estrada Cabrera in 1920 ended a twenty-two year dictatorship and unleashed many long-suppressed political rivalries. During the next few years Guatemala passed through a period of instability, as opposing factions vied for control of the government. Dieseldorff, unsure of the attitude of each new party in power, took steps to protect his interests. As a result, the ladino employees came to outnumber the foreign ones. Shortly thereafter, this situation became a legal necessity, because lavs promulgated in 1923 and 1927 decreed that, excluding all manual labor­ ers, a minimum of 75 % of the employees of any firm operating in the country had to be Guatemalan nationals.^ Like Dieseldorff, other German finqueros and merchants in the Alta Verapaz brought countrymen from Europe to work for them as clerks, plantation managers, or in special capacities. The practice was begun by the first German settlers in the department, the Sarg brothers and H. R. Dieseldorff,^ and was continued by those who came later, so that the German population of the area grew steadily. Many ^Leyes de Guatemala. Vol. XLIV, pp. 2l*-25; ibid., Vol. XLVI, p. 91. ^Deutschtum in der Alta Verapaz. pp. 27, 29-30; El Porvenir (Coban, AV, GuatemalaT, Ano 1, No. 41, November 3, 1889; Guillermo Nanez Falcon ,* German Contributions to the Economic Development of the Alta Vera Paz of Guatemala, 1665-1900"(Unpublished M.A. Thesis, Tulane University, New Orleans, 196l), pp. 27-29* L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 35& I of the men vho vere prominent landowners and businessmen in the tventieth century originally came to Guatemala cm contract vorkers. The Germans brought vorkers from their native land on a con­ tract basis for economic reasons: the salaries they commanded vere far less than those paid to countrymen already living in Guatemala. Most of the Germans vho had been in the CobSn area for a number of years vere either engaged in business of their ovn or demanded high wages, because they vere much more experienced than the newcomers. Adrian Rosch, for example , vho had settled in the Alta Verapaz in the Q 1890's and had worked on fincas as veil as in plantation offices, vas hired by Dieseldorff in 1921 to manage the central office. in less than one year he vas earning $ 2,l6o, annually.^ With­ In compari­ son, in 1923 two other second-year office employees, Max Quirin and Rudolf Hesse, vho had come from Germany as contract vorkers, vere re­ ceiving annual salaries of $ 720. and $ 1 ,200. respectively .10 Alloving for personality differences, the methods used by Dieseldorff to secure contract vorkers vere similar to those employed by other German planters and merchants from the Alta Verapaz. Diesel­ dorff recruited persons to fill vacant or nevly created positions during his annual trips to Germany, but on occasion, vhen circum­ stances forced him to remain in Guatemala, his vife acted in his O Deutschtum in der Alta Verapaz. Table I, p. 80. ^Ledger, "Libro Mayor,” 1916-1922, pp. I*ll-Ul2, J»95, DC. 10Ibid. , 1916-1922, pp. 369, H8l, DC; ibid.. 1922-1925, p 102-105, 132-135, 237-239, 270-271, DC. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r stead. 11 He sought young men, unmarried and prefershly between the ages of twenty-five and thirty, who vere ambitious, energetic, and hard-working. They had to have training in agricultural science, or possess language abilities, commercial experience, or other special­ ized skills. Before his departure from Central America on a visit to Europe, Dieseldorff asked friends and business associates on the continent to be on the lookout for possible candidates who had the necessary qualifications. Upon his arrival he met the men. Since his business and family connections vere mainly in Hamburg, Bremen, and Berlin, most of the persons introduced to him vere working in commercial houses in these cities. North Germany, however. Only a few were originally from The majority had migrated there from all parts of the country to seek employment and new opportunities. Dieseldorff interviewed each man privately, usually in a re­ laxed situation such as over lunch. After he had narrowed down the choices to those he believed were best fitted for the job, he entered into negotiations with each man over the terms of the contract. In the bargaining Dieseldorff was diplomatic, persuasive, and above all shrewd, in order that he might secure the prospect's acquiescence to his demands. When both parties were finally in accord, they signed a formal agreement. 12 ^ W o r k contract between EPD, represented by his wife Frau Johanna Dieseldorff, and Johann Pape (September 18, 1920), DC. 12 Interviews with doSa Matilde Dieseldorff de Quirin and Frau Gertrude Quinckhardt. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 3ia For Dieseldorff the making of work contracts involved a cer­ tain amount of risk, because he guaranteed the man employment for a set period of time. No matter how carefully he had studied the new employee's character and background, he could not anticipate vith complete certainty the man’s reaction to conditions in the Verapaz or his job performance. vas in a dilemma. If the man's work was unsatisfactory, Dieseldorff Were he to allow him to remain until the expiration of the agreement, his unwelcome presence vould cause problems. On the other hand, should he decide to dismiss the man, he vould have to compensate him for the remainder of the contractual period. For this reason, Dieseldorff weighed each choice carefully. The work contracts that Dieseldorff made varied in detail, but all contained several common clauses.^ The agreement vas for three years and vas to commence on the day the man reached Coban. During the period it vas in effect, the employee was to work only for the Dieseldorff firm. He was strictly prohibited from starting a business of his own or accepting a Job, even on a part-time basis, from anyone else in the department. The document set the salary the man vas to receive each year, and in addition to this Dieseldorff guaranteed to provide him,free of charge,housing, all meals, and laundry service, and to pay his medical expenses in case of illness. \lnless otherwise indicated information on the vork contracts that Dieseldorff made comes from the following six documents: Work contracts between EPD and Friedrich Ferchland (September U 9 1925), EPD and Ernst Hesse (September 21, 1928), EPD and Karl Dammann (June 23, 1929), EPD and Arend Buss (October 3, 1930), EPD, represented by his wife Frau Johanna Dieseldorff, and Johann Pape (September 18, 1920), and EPD and Walter Moll, represented by his brother Rudolf Moll (February 6 , 1931), DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r If the man quit work without a good reason before the contract had expired, he was obligated to return the cost of passage from Europe to Guatemala, and also to indemnify Dieseldorff for any damages and inconvenience that his leaving caused. The amount of this fine was to be set by a disinterested third party. The German Vice-Consul in Co- b£n was designated as arbiter in any contractual disagreement that might arise, and his decision in the matter was final. Last of all, the document provided for renegotiation and renewal of the agreement six months prior to its expiration. Renewal was for a period of one year, and after this time the man, if he chose to continue working for Dieseldorff, did so on a voluntary basis without a formal com­ mitment . The contracts differed in the extra benefits that Dieseldorff promised each men and the requirements that he imposed. In almost every instance Dieseldorff gave the new employee third-class steam­ ship fare to Guatemala and a small amount of cash for miscellaneous travel expenses, but this did not mean that the man vas receiving free passage. Some, such as Johann Pape, Arend Buss, and Walter Moll, were to repay the sum, one third at a time during the three years they worked for Dieseldorff. Pape, furthermore, bound himself to pay Dieseldorff twice the balance owed for travel money if he quit work before the end of the contractual period. Others, such as Ernst Hesse and Karl Dammann, vere not obligated to reimburse Dieseldorff for any portion of the fare, and Friedrich Ferchland, in addition to free passage, received a travel allowance of 375 MarkB, one half the dif­ ference between first- and third-class fare. Walter Moll, whom L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 360l Dieseldorff had not met, lli on the other hand was assured free passage back to Germany if he did not work out to Dieseldorff's satisfaction. The men who vere to be engaged in commercial activities had to accept certain other restrictions, which Dieseldorff demanded in order to protect his interests. Arend Buss, who vas to have charge of coffee buying in the ChiquixJi-Raxahfl, area, could not establish himself in the same type of business in either the Alta or the Baja Verapaz for a period of two years after the expiration of his contract. Should he willfully violate this clause, he vas legally re­ quired to pay Dieseldorff one -half of the salary he had received dur­ ing the previous three years. The renewal contract that he made in 1933 contained the same two-year proscription. 15 Karl Dammann, vho was engaged as head bookkeeper, was prohibited from starting a busi­ ness of his own in either of the Verapaces for one year after leaving Dieseldorff's employ, as was Walter Moll, who was hired to manage the Coban store and to handle the import and sale of merchandise. Neither of the contracts signed by these two men, however, set any penalty for noncompliance vith this stipulation, possibly because as competitors they vere lesB of a threat to Dieseldorff than was the coffee buyer Bu88 . Once the new employee arrived in Coban, Dieseldorff put him to work immediately. The first few months vere spent in training him lUDieseldorff contracted Walter Moll through the letter's brother Rudolf Moll, vho worked for Dieseldorff. ^ W o r k contract between EPD, represented by Max Quirin, and Arend Buss (July 15, 1933), DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3 6 ll for hla Job, and during this time he vorked closely under Dieseldorff's personal supervision or under one of his experienced assis­ tants. If he was to be on the Cob&n staff, he spent one or two weeks ‘ observing the office routine and becoming familiar with the duties of each staff member, so as he might understand better the interrelation of the different activities that went on and comprehend his own func­ tion within the whole. After the end of the indoctrination period the newcomer began to learn his own particular Job. A new engineer spent his first few weeks familiarizing himself with the operation and function of the various machines at Chichochoc and on the other fincas. The preliminary instruction for the finca personnel was dif­ ferent from that for the office workers. The new man spent the ini­ tial three or four weeks at Santa Margarita in Cob&n. Here he worked with older employees in the coffee groves and the alm&cigo stands in order to learn the fundamentals of coffee cultivation. At the small beneficio on the finca and on the drying terraces he was introduced to the exacting techniques Dieseldorff used to prepare the beans to pergamino, and later at Chichochoc he saw in operation the machinery used for the final, processing, buosequently, Dieseldorff sent the man to one of the fincas to apprentice under one of his seasoned ad­ ministrators,^ and there he remained until Dieseldorff thought he was sufficiently experienced to work alone. ^Letter: Max Quirin for EPD, Cob&n, to the Jefe Politico, Coban, December 6 , 1930, Letterbook, "Asuntos ante las autoridades," No. 2, p. Ill*, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 36? The salary a German employee received depended upon his ex­ perience and training, and upon the position he held and the number of years he had been vith the firm. As a general rule, the men on the plantations earned less than those vho vorked in the central of­ fice. Before World War I, Dieseldorff paid a nev contract vorker on one of the fincas betveen 700 and 800 Marks the first year, and the amount increased only slightly for the next tvo years. The fourth, after renegotiation of the contract, the man usually received a sub­ stantial raise, because Dieseldorff, not vanting to lose an experi­ enced vorker, knev that he must give additional compensation to keep him. The folloving are typical examples of the annual prevar sala­ ries Dieseldorff paid his plantation managers the first four years. Josef Sauter, at Chajcar, earned 700 Marks (1905/1906), 800 Marks, 800 Marks, and 1,500 M a r k s A l f r e d Klein, at Panzal, 800 Marks (1907/1908), 800 Marks, 800 Marks, and 1,200 Marks the first six months and 2,000 Marks the second; Georg Heinemann, at Cubilgiiitz, 800 Marks (1908/1909), 1,000 Marks, 1,000 Marks, and 2,000 Marks .19 After the fourth year the vage rate leveled off. For instance, Sauter in 191**, after nearly nine years' service, vas earning an annual salary of 2,000 Marks. PO During the 1920's and 1930's the vages 17Ledger, "Libro Mayor," 1905-1911, pp. 13**, 230-232 , 281*, DC. Before World War I the Mark vas vorth about $ 0.2U. l8Ibid. , 1905-1911, pp. 276-278, DC; ibid., 1911-1916, pp. 12U-125, DC. 19Ibid. . 1905-1911, pp. 3U9-350, 1*19, DC; ibid., 1911-1916, pp. 120-121, 238-239, DC. 20Ibid.. 1911-1916, pp. 13U-135, 2U1-2U2, DC. R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3631 Dieseldorff paid his administrators were $ 360* the first year, $ 1*80. the second, and $ 600. the third.2'1’ There was greater variation in the salaries paid to the office employees, because there was a considerable difference in the degree of responsibility each held. at the top of the scale. The Prokurist, or office manager, was Paul 0. Mittelstadt, for example, started to work in 1901 for 3,000 Marks a year. By 1911* his annual salary was 7,000 Marks, and when he left Dieseldorff's employ in 1920 it was $ 3,000. 22 Adrian Bosch, vho held the same position during the 1920's, earned $ 2,160. a year.2 ^ The store manager such men as Hermann BQttgen and Otto Zoller, pli before the war, earned 3,000 Marks a year; amount averaged about $ 1,200.2^ was nextin line, and vho heldthe position during the 1920's the An agronomist, Buchas Max Krings, earned as much as 3,660 Marks a year,2^ and the engineer at the 21Ibid., 1922-1925, pp. 209-211, 263-261*, DC; ibid., 1927, pp. E C T 8 , 286-287, DC; ibid., 1927-1929, pp. wEosft, Work contracts between EPD and Arend Buss (October 3, 1930), tween EPD, represented by his wife Frau Johanna Dieseldorff, Johann Pape (September 18, 1920), DC. 1925DC; and be­ and 22Ledger, "Libro Mayor," 1900-1902, p. 133, DC; ibid.. 19111916, pp. 128, 170-171, 302-303, 1*18-1*19, DC; ibid., 1916-1922, pp. 27^-279, 333, DC. 23Ibid.. 1916-1922, pp. 1*11-102, 1*95, DC; ibid., 1922-1925, pp. 129-131, 227-229, DC. 2l*Ibid.. 1911-1916, pp. 310 , 322-323 , 331-332 , 397, 1*53, DC; ibid. . 191SI 1922, pp. 3-1*, 26 , 28- 30 , 1*82, l*81*-i*86, DC. 25Ibid., 1916-1922, pp. l*9l»-1*95, DC. 26Ibid., 1905-1911, pp. 100-101, 318-320, DC; ibid., 19111916, pp. 125T127, 279, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 363 Chichochoc retrilla, Heinrich MSschler, for example, received 3,180 Marks before the var and $ 1,380. afterwards. 27 The annual salary paid to ordinary clerks vas lower. Prior to 1911* the starting wage for these positions vas usually 1,200 Marks .28 Following the war it ranged from about $ 600. to $ 900 .29 Some, for example Friedrich Ferchland, vho Joined the staff in 1925, made even less. Dieseldorff by contract set his salary at $ 360. for the first year, $ 1*80. for the second, and $ 600. for the third .30 When an employee proved to be especially hard-working and capable, Dieseldorff generally rewarded him by increasing his salary more rapidly than the agreement stipulated. For example, he raised the aforesaid Ferchland to $ U80. within five months, and to $ 720. at the end of the first year.3'1' Similarly, Rudolf Hesse, who started to work in 1922 for $ 900., was raised the second year first to $ 1 ,200. and then to $ 1,800. By 1926 he had replaced Roach as Prokurist, and his annual salary was $ 2 ,1*00.32 27Ibid.. 1911-1916, pp. 130-131, 30U-305, 1*1*7-MB, DC; ibid., 1916-1922, pp. 279-281*, DC. 28Ibid.. 1905-1911, pp. 21*5-21*6, 1*05-1*06, DC; ibid., 19111916, pp. T5IT182, DC. 29Ibid., 1916-1922, pp. 372, 1*81, DC; ibid., 1922-1925, pp. 119, 132-135, 270-271, 276, DC; Work contract between EPD and Karl Dammann (June 23, 1929), DC. 30 , Work contract between EPD and Friedrich Ferchland (Septem­ ber 1*, 1925), DC. 31Ledger, "Libro Mayor," 1925-1927, pp. 113-111*, DC. 32 Ibid., 1916-1922, p. 369, DC; ibid., 1922-1925, pp. 102105, 237-239, DC; ibid., 1925-1927, pp. 120-123, 130, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 365| In addition to regular wages, Dieseldorff gave his German em­ ployees a holiday bonus, called an Jffiiinaldo, at the end of the year. The sum was determined by Dieseldorff's opinion of the man’s perfor­ mance during the preceding twelve months, and it varied for the indi­ vidual from year to year. Usually it was 30 % of the monthly salary, but in some instances the amount was as low as 22 %, it was 100 %.3^ while in others Johann Pape, for example, in 192b received a $ 50. QC aguinaldo, or 83 %, but two years later the bonus was $ 20 ., 25 %. Hano Quinckhardt received a 50 % bonus the first year of his employ and 33 1/3 % the second.3^ Dieseldorff's Guatemalan employees like­ wise received an aguinaldo each year, and Dieseldorff calculated the amount on the same basis as he did for the Germans. The German employees on Dieseldorff's staff also enjoyed another economic benefit. Since by contract Dieseldorff gratuitously provided their food and lodging, their personal expenses were minimal, especially for those men who lived on the fincas where there was lit­ tle or nothing on which to spend money. In many instances a man could get by for an entire year on one or two months' wages, and under the circumstances there was a strong temptation to squander the rest of the money. For this reason Dieseldorff permitted the men to leave 33Ibid.. 1922-1925, pp. 129-131, 227-229, DC. 3l*Ibid. . 1922-1925, p. 26U, DC. 35Ibid., 1922-1925, pp. 12b-125, 230-232/ DC; ibid., 1925 1927, p. 152, DC. 36Ibid.. 1927-1929, pp. 191-19b, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3 66 1 their salaries on deposit vith him, and he paid them 6 % annual interest on the sum. 37 This policy worked to the advantage of both parties. Diesel­ dorff was able in this way to keep up his cash reserves and maintain a larger amount of working capital on hand than he otherwise would have been able to do. By the same token, his employees were assured of having their money in a safe place and of receiving interest on the amount. Furthermore, they knew that when they left the firm, they would receive a tidy sum that would help them to establish a business of their own or buy a finca or do whatever else they wished. The recently arrived contract workers, besides learning their jobs, had to make an adjustment to life in Guatemala. In this respect, the office employees were fortunate, because for them the transition was relatively easy. Dieseldorff provided comfortable living quarters for the German staff members at Santa Margarita, and the newcomers from the beginning had the company of their more seasoned countrymen. The entire staff ate vith the family in the Dieseldorff dining room, and the meals, which included as many familiar German dishes as un­ known Guatemalan or Indian ones, were well-prepared and taken in con- oft vivial surroundings. The men also had regular work hours, and so their evenings were completely free. 37 For example, in June, 1913, Dieseldorff credited 221.91 Marks interest to Halter Bockhorn's account, 21*6.57 Marks to Georg Jahnig's, and 3**3.23 Marks to Josef Sauter’s, each sum being the amount due for the fiscal year July, 1912, to June, 1913. Ibid.. 1911-1916, pp. 112-113, 13U-135, 235, 2M», DC. qQ Interview with dona Matilde Dieseldorff de Quirin. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3671 Moreover, although Coban itself had little to offer in the way of regular entertainment, the tovn did have a comparatively large German population, whose social life revolved around the German Club situated three blocks away from the Dieseldorff house. Members of the German colony gathered at the Club daily for drinks, a game of cards or billiards, or simply for companionship and friendly conver­ sation. The new men were quickly made to feel at home, and were able to meet other Germans, male and female, their own age. Thus the situation in Cob&n made the country seem less alien and strange, and most found the tovn pleasant. Outside of Coban circumstances were entirely different, and the Germans who were sent to work on the fincas faced an adrupt change from their old way of life. The plantations were distant and almost totally isolated from the centers of European culture. There the administrators lived completely alone, except for the Indian colonos who resided on the property. desperately lonely. The existence was desolate and often Contact with other Germans was infrequent, and this was usually of a business rather than a social nature. Coban were exceedingly rare and of short duration. Trips to On the fincas there were few diversions, and even less time to enjoy them. The men quickly found that life on the plantations was ardu­ ous. The manager, despite his position, had to keep the same hours as the mozos, and he labored with them from dawn to dusk. Even at night he was on call at all times should any emergency occur. As overseer he was not only in charge of the Indian mozos, but he had to maintain a record of the number of days each of them worked and of L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 363 the wages, rations, and advances each received. In addition, he had to keep an account hook of daily expenditures, and frequently he was also Dieseldorff's coffee buying agent in the area. His responsibili­ ties were great, and at the same time he personally had to answer to Dieseldorff for everything that took place on the property. The primitive housing accommodations provided the administra­ tor made the problem of adjustment even harder. The dwellings con­ sisted of two or three small rooms, and since the buildings were con­ structed of stone and mortar, they were cold and damp. The furnish­ ings were the barest essentials— a narrow bed or cot, a table, and a few chairs. At night kerosene lamps or candles were the only available lighting. The German newcomer also encountered a sudden dietary change when he arrived at the finca. Beef, bread, potatoes, vegetables, and other foods common in Europe, all had to be imported in Guatemala and were luxury items seldom enjoyed. Instead, he had to accustom himself to eating, as the Indians did, the staples that were plentiful in the department— corn, black beans, poultry, and eggs. The administrator's food was prepared by an Indian cook over an open fire, and the meals served him were native dishes such as the Indians ate. In order to communicate with the Indian mozos, the German overseer had to learn their language, Kekchl, and it was essential that he be able to speak as well as understand the language. During the stay in Cob&n, Dieseldorff impressed this fact upon the man and taught him some necessary phrases. and a diet ion say. He also provided a simple grammar Once on the finca the nan had little opportunity L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3691 to speak anything but Kekchl, even when apprenticing under a fellow German. This circumstance undoubtedly helped to speed the learning process. Many of the Germans acquired considerable fluency in Kekchl, and those who spent most of their time on one of the plantations seldom learned to speak Spanish, a language they had almost no occasion to use or hear. 39 As a general rule, the German administrators were single. The few who were married did not take their wives with them to the fincas, but rather allowed them to remain in Coban or in Germany, where life was easier. Since the men lived alone, it was not uncommon for them to take an Indian mistress from among the women on the plan­ tation. Such liaisons were so commonplace in the Alta Verapaz, among ladinos as well as Germans, that they scarcely attracted any atten­ tion. The relationships were often of long duration, and some of the men educated or legally recognized the children b o m of the union. Regardless of what the men did, there was little censure from the ladinos or the Indians, for in the Verapaz illegitimacy does not carry the social stigma that it does in some other parts of the world. Frequently, unlegitimized persons assumed the father's name. kO Today, a number of socially prominent Cobaneros are of such German-Indian parentage. Of the contract workers that Dieseldorff brought from Germany, 39 Interview with don Manuel Burmester. 1*0 Melvin M. Tumin, Caste in a Peasant Society. A Case Study of the Dynamics of Caste (Princeton. 1952), pp. 32-33, 158-159. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J ; r 3701 about one third failed, for one reason or another, to complete their term of obligation. Some of the men simply could not become accli­ mated to life in the department, and asked Dieseldorff to release them from the agreement in order that they might return to their homeland. Among this group was Josef Gutman, who lasted but three months at the pestiferous San Diego-Yalpemech. 1*1 When this occurred, Dieseldorff allowed the person to leave, and if he believed that he was sincere and really could not endure the situation, he did not impose a fine, but asked only that the man return the passage fare. Other employees, such as Emanuel Gaida, Walter Hentze, and August Kuckling, quit to accept more lucrative employment elsewhere in the department, and of these men Dieseldorff demanded punitive damages as well as repayment of travel costs. 1*2 In a few cases a man, Albert Klingenberger for 1*3 example, had to resign on account of ill-health, ^ and at least one person, Friedrich Klemm, who was at Chajcar, died while working for Dieseldorff. 1*1* The majority of the Germans whom Dieseldorff contracted, how­ ever, not only remained with him for the required three-year period, but approximately one half worked for him for more than five years. Of these men, at least five were in Dieseldorff's employ for more 1*1 Ledger, "Libro Mayor," 1916-1922, p. 25**, DC. 1*2 Ibid.. 1911-1916, pp. 268-269, DC; ibid.. 1916-1922, pp. 77- 78 , 85 , 26ST"387-388, 1*92-1*93, DC; ibid.. 1922-1925, pp. 97-99, 200, DC. **3Ibid.. 1916-1922, pp. 372, 1*96-1*98, DC. ^Letter: Rudolf Hesse for EPD, CCobanD, to the Companla del Ferrocarril Verapaz, Livingston, February 12, 192**, Letterbook, "Ferrocarril Verapaz," No. 7, p. 7**, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 371J than ten yearB. They vere Walter Bockhorn, k5 Krings ,**7 Max Quirin,^® and Oskar Tr o p i t z . ^ li6 Christian Kress, Max A sixth man, Paul Mittelstadt, worked for Dieseldorff for nearly twenty years. Because such a large percentage of Dieseldorff's Genian em­ ployees stayed in their Jobs for many years, the turnover in person­ nel was slow. There were seldom more than two or three resignations a year (except during the 1919/1920 period), and the number of new staff members was about the same. Also important was the fact that the group that worked for five or more years included staff employees, finca administrators, and technical personnel. Heinrich Moschler, for example, worked for nearly nine years as Dieseldorff*s chief engineer.^ As a result, there was a continuity in all phases of Dieseldorff's business, for the experienced men, upon whom he could depend, out­ numbered the untried newcomers. The Germans who worked for Dieseldorff, regardless of the ^Ledger, "Libro Mayor," 1905-1911, pp. 102-103, 316, 4l6, DC; ibid.. 1911-1916, pp. 112-113, 244-245, 4l4-4l5, DC. ^ Ibid.. 1911-1916, pp. 324-325, 350, DC; ibid., 1922-1925, p. 110, DC. **7Ibid.. 1900-1902, pp. 124-125, DC; ibid., 1911-1916, pp. 126-127, 297, DC. U8Ibid.. 1916-1922, p. J*8l, DC; ibid., 1935-1937, pp. 197199, DC. ^ I b i d . . 1905-1911, p. 435, DC; ibid., 1916-1922, pp. 463465, 481, DC. 5°Ibid., 1900-1902, p. 133, DC; ibid., 1916-1922, pp. 274279, 333, DC. 51Ibid., 1905-1911, p. 425, DC; ibid., 1916-1922, pp. 279230, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 37Zl length of their tenure, eventually left the firm. What they did afterwards depended upon their training, financial resources, and ambitions. Some immediately returned to Germany. For example, Hermann Buttgen, who was Dieseldorff 'b store manager, had come to Guatemala to gain commercial experience, and after having accomplished this, he went back to Hamburg to become a partner in the family business. 52 A few of the men moved from the Verapaz to other parts of Guatemala. Theodor Rehbach became manager of a coffee finca in the department of San M a r c o s w h i l e Friedrich Ferchland took a position with a coffee exporting firm in Guatemala C i t y , ^ Many of the Germans chose to remain in the Alta Verapaz, and they either found employment with someone else or went into business for themselves. Otto Prinz, after working for several years in the Dieseldorff store, accepted an offer from Arnold Datz, owner of a rival shop in C o b a n , a n d Albert Ludwig was hired as administrator of the German-owned finca Sasls.-^ Georg Heinemann, one-time manager of Cubilgiiitz, opened a twenty-one room hotel-pension in Coban. ^Letter: CEPD, Coban3, to the Hamburg-Amerika Linie, Ham­ burg, February 1, 1921, DC, Financial Correspondence. ^Letter: Paul 0. Mittelstadt, CCobanl, to D. B. Hodgsdon, Guatemala, June 9, 1919, Letterbook, "iGdG," p. 10U, DC, WW I Int. Pap. ^Ssi Norte (Coban, AV, Guatemala), Ano XXX, No. IU96 , July 1, 1939. 55Ibid., Ano XXV, No. 223k, May 12, 193k. 56Ibid., Ano IX, No. 1+32, March 22, 1919. ^ I b i d . , Ano XXV, No. 1267, January 1, 1935, ibid., Ano XXVIII, Nos. 1381 and 1391, May 8 , and July 17, 1937. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r I 37 Coffee buying attracted Gerard Schaart, and he established a business q q near San Pedro Carcha. In time he sold out to Max Krings, moved to Guatemala City where he purchased a small hotel. 59 and Krings a few years later found himself in financial straits and had to sell his business. Dieseldorff rf was * the b u y e r . K r i n g s then sought work as a plantation overseer. 61 A number of Dieseldorff's former employees in time became fairly prosperous. Christian Kress and Alfred Klein purchased coffee properties of their own, and Adrian Roach, a tea plantation. During the 1930's these men were among the prominent finqueros in the department. 62 Heinrich MSschler achieved success in several areas. He was a mechanical engineer by training, and while working for Diesel­ dorff he had been in charge of maintenance of the equipment at Chichochoc and on the fincas. Using this experience, during the 1920's he operated a plant for the coimnercial processing of coffee. 63 In 1928, after the death of his father-in-law August Dieseldorff, owner of the Dieseldorff & Cia. store, Moschler and his brother Oskar rfl Notarized agreement between Gerard Schaart and Max Krings for sale of Schaart*s coffee buying business at Raxpec vSeptember 26, 1910), DS, Raxpec Box. 59E1 Norte, A!So V, No. 237, January 17, 1915. ^^Notarized agreement between Max Krings and EPD for sale of Krings' coffee buying business at Raxpec (February 16, 1927), DS, Raxpec Box. 6lEl Norte. AHo XX, No. 986, May 11, 1929. 62 . Deutschtum in der Alta Verapaz. p. 49. 63E1 Norte. Affo XVI, No. 865, December 26, 1926. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 373 bought the old f i m . ^ A few year* later the MSschler brothers, in partnership vith Max CJuirin, Dieseldorff's son-in-law, acquired a henequen plantation and installed equipment for the manufacture of sisal cord, which was used to make coffee bags.**'* The Germans who decided to settle permanently in Guatemala married and began to raise families in their adopted country. Some of the marriages occurred while the men were still working for Dieseldorff. These men were generally long-time employees, who were earning enough money to support a wife. Others did not wed until after leaving Dieseldorff's firm. In choosing a wife, the men did not follow a set pattern. fewsuch as A Karl Kloth, Otto Prinz, Friedrich Ferchland, and Rudolf Hesse, married in Germany and brought their wives with them to Guatemala. A number of others married the Guatemalan-born daughters of Germans who were well-established in the Alta Verapaz. For in­ stance, Arend Buss wedded the daughter of Georg Appenzaufer, owner of the finca Panzamala. Dieseldorff's own daughters married men who worked for him— Matilde, Max Quirin, and Gertrude, Hans Quinckhardt. The Quinckhardts returned to Germany, however. Two other employees married into Dieseldorff's family— Heinrich Moschler, August Diesel­ dorff's daughter Marla; and Emanuel Gedda, Carmen Stalling, H. R. Dieseldorff's granddaughter. Not infrequently the Germans married into the ladino families of the department. .Among these men were 61*Ibid., Afio XIX, No. 930, March 31, 1928. 65Ibid., Ano XXVIII, Nos. 1387 and 1389, June 19, and July 3, 1937; ibid., A2o XXX, No. lU83, March 25, 1939. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 375I Max Krings who married Hosalinda 8amayoa; Georg J&hnig, Cristina Bequefia*, Georg Henderkott, Inis Villein; Paul Mittelst&dt, Emilia Villela; and Christian Kress, Julia V&squez. 66 The Germans who settled in the Alta Verapaz, including those men brought by Dieseldorff as contract workers, formed a distinctly foreign group in the department. They maintained a strong national identity, which some Guatemalans found objectionable. 6t Marriages to German girls reinforced and renewed the ties with their native country, and the men who had German-born wives tended to remain unintegrated and apart. Those who married ladina girls, on the other hand, usually began to assimilate themselves into Guatemalan society. This was especially true if the man was not wealthy and could not make frequent trips back to Germany. In such cases the ties with Europe gradually loosened, and roots were set down in Guatemala. German-ladina unions were Guatemalan. The children of the The descendants of these Germans still live in the Alta Verapaz, but now the second and third generations are German in name only. The position of the ladino employees within the Dieseldorff plantation complex was in many respects similar to that of the Germans. Given the same job, Dieseldorff expected as much from a Guatemalan as from a German, and he imposed the same restrictions and obligations on ^ Deutschtum in der Alta Verapaz. pp. 97-101*. 67E1 Norte. A2o XI, No. 538, September 2l*, 1921. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3761 everyone. The most striking differences were that fev Guatemalans vorked in the central office, and even more important that the Guate­ malans were not contract workers and could resign, or be discharged, at any time. The majority of the ladinos that Dieseldorff employed vorked on the fincas, as chief administrators or as assistants to the man­ ager. Up until 1905 all of Dieseldorff's overseers were Guatemalans, but after that date they were supplanted one-by-one by Germans. This change occurred mostly on the properties that produced coffee, and as stated earlier, by the outbreak of World War I Germans were managers of all but one of Dieseldorff's major properties. The exception was notable, because it was Santa Cecilia, an important coffee plantation. The administrator there, Manuel G. Rubio, had been in charge of the place for nearly ten years, 68 and he was a man whom Dieseldorff trusted and respected. Between 1905 and 1920 the smaller properties that Dieseldorff owned continued to be managed by Guatemalans. So long as the man's work was satisfactory, Dieseldorff allowed him to stay at the same post, and some remained for many years. In 1928, for example, he re­ ported that of his administrators J. Cruz Ochoa had been at El Salto since 1900, Rafael VSliz at Yaxcabnal (an annex of Cubilguitz) since 69 1903, and Guillermo Cacao at RaxahS since 1908. 7 Other properties 68Ledger, "Libro Mayor,” 1905-1911, PP. 109-110, 325-326, DC; ibid., 1911-1916, p. 132, DC. 69 > ^Letter and enclosure: Max Quirin for EPD, Coban, to the Jefe Politico, Coban, August 28, 1928, Letterbook, "Asuntos ante las autoridades,” No. 1, pp. 5**3-5^5, 5^7, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 377I that had Quatemalan overseers vara Secoc-Ulpin, Hlo Frio, and Paiji, vhlch vara used for breeding draft animals or forage, and Cantoloc (another annex of Cubilgttitz), which was reserved as milpa-lond for the mosos. During the early 1920's Dieseldorff employed Guatemalans as managers on all but four of his plantations, Chajcar, Haxpec, Decol, and Cubilgttitz. By the end of the decade the German overoeero at 70 Chajcar and Raxpec had been replaced by ladinos,' but Dieseldorff kept German administrators at the other two fincas, valid. liio reasons were At CubilgOitz he had a tractor and other heavy farm equipment for the large-scale cultivation of corn. The person in charge not only needed to be an experienced agriculturalist, but he had to be able to operate, maintain, and repair the machines. At Gccol, where Dieseldorff had installed a dryer and other intricate coffee process­ ing machinery, a similar situation existed. Also, because these two fincas were more difficult to reach than Dieseldorff's other proper­ ties, he avoided costly delays in fixing broken equipment by having a mechanical expert as manager there. In the office Dieseldorff employed a Guatemalan as a general assistant. bility. The position had no formal title, but it carried responsi­ The man in this Job handled or drafted most of the Spanish- language correspondence, especially that with government officials. He had power of attorney and frequently appeared for Dieseldorff in 70 Letter: EPD, Coban, to the Director Nacional del Trabajo, Guatemala, February 21, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 690-692, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 37l legal transactions, such as the purchase of land. Although he did not have a lav degree, he had legal experience, and helped Dieseldorff draw up petitions and briefs and represented Dieseldorff's interests before Guatemalan authorities. men occupied the post. During Dieseldorff's lifetime three From the 1890's to about 1913 the assistant was Manuel R. P£rez; from 1913 to the late 1920's, Javier N. Ju&rez; and from the 1930's down to the present time, Arturo Morales de la Cruz. The long tenure of each of these men helped to establish a continuity in the relations Dieseldorff had with the Guatemalan gov­ ernment. In addition to the general assistant, Dieseldorff used ladinos in minor clerical Jobs to help with typing, bookkeeping, and other everyday tasks. Dieseldorff also employed Guatemalans to perform certain tasks that required skilled labor. Generally he had one or two men with mechanical experience working as assistants to the chief engineer. He engaged on a type of service or retainer contract basis stonemasons and carpenters who, although not normally considered part of the staff, worked more or less regularly for him. They were charged with inspection and repair of buildings, drying terraces, water storage basins, and similar facilities. Under the chief engineer's direction they did the actual work of constructing new facilities as well as building wooden or masonry bridges on road work projects on the 71 fincas. The Guatemalan employees were subject to the same restrictions T1Work contract between EPD and Antonio Reyes (June 6 , 1927), DE, "Varios" Box. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J 372 r as the Germans. their work. Dieseldorff demanded their undivided attention to In order to secure this* he forbade, under threat of dis­ missal, their buying rural properties for the purpose of starting a finca or their establishing a business of their own while they were working for him .'11 Those whom he hired as coffee buying agents were prohibited from starting a rival business for a pre-determined period of time after leaving his employ. The salaries that Dieseldorff paid his Guatemalan overseers were about on par with those of the Germans, sometimes a little more, sometimes a little less. At the turn of the century managers of the coffee producing fincas earned between 8U 0 pesos and 1,200 pesos a year. 73 Unfortunately, it is almost impossible to make a comparison between these amounts and those the Germans received, because the value of the peso was undergoing rapid fluctuations at the time. The Guatemalans' wages appear to be somewhat higher than the Germans1, however. During the 1920’s all employees were paid in United States dollars, and it is easier to compare the salaries of this period. Understandably, the size and importance of a finca to a great extent determined the manager's salary. Dieseldorff had established a wage scale for each plantation, and although he might change administrators from time to time, all the men who held a particular post made about the same amount, regardless of nationality. 1901, For example, Vilhelm ^Letter: EPD, Coban, to Manuel Conlledo, Panzal, July 25, Letterbodk, "Fincas," No. 1, pp. 135-136, DC. ^Ledger, "Libro Mayor," 1900-1902, pp. 18, 1»0-Ul, 115, 1^3, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J 383 r Fraatz, overseer at Santa Cecilia from 1916 to 1920, received $ 360, the first year, $ 660. the second, and $ 720. the third and the fourth. 74 Ismael Delgado, whom Dieseldorff employed for the same job in 192b, was paid $ 300. the first year and $ 420. the second. His starting salary the third year was $ 600., but Dieseldorff raised it to $ 720. after six months, and then to $ 840. five months later. 75 In the central office the salaries that Dieseldorff paid the Guatemalan employees were lover than those the Germans received. Javier N. Juarez is a good example. His starting salary was 1,200 Marks, which was the same amount that Dieseldorff paid most firstyear German clerks. was $ 960., 76 More than ten years later Juarez's yearly wage but at the same time the office managers, first Adrian Rosch and later Rudolf Hesse, were making about $ 2,000. 77 The salary Juarez received was equal to that which Max Quirin earned his second 78 year as an office clerk,' and slightly more than some of the other 79 German office workers were paid .1 The Guatemalan clerical assistants 7 I1 ' ibid.. 1916-1922, pp. 208-210, 215-217, 227, DC. 75Ibid., 1922-1925, p. 281, DC; ibid., 1925-1927, pp. 89-90, DC. 76Ibid.. 1911-1916, pp. 193, 243, DC; ibid.. 1922-1925, pp. 108-109, 252-253, DC; ibid., 1925-1927, pp. 24, 127-129, l48, DC. 77Ibid., 1916-1922, pp. 411-412, 495, DC; ibid., 1922-1925, pp. 129-131, 227-229, DC; ibid., 1925-1927, pp. 120-123, 130, DC. 78Ibid.. 1922-1925, pp. 132-135, 270-271, DC. 79Ibid.. 1925-1927, pp. 113-114, DC; ibid.. 1927-1929, pp. 191-194, DC; ibid., 1929-1931, pp. 67-68 , 198, DC; ibid., 1931-1933, p. 225, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r made less than Juarez did. The skilled workmen engaged by contract received a small retainer and subsequently were paid by the Job. In addition to regular wages the Guatemalan employees received other economic benefits, as the Germans did. man cm aguinaldo each year. Dieseldorff gave every For the plantation managers, he also provided free housing and food, but since most of the Guatemalan over­ seers were married and had families, often large, living with them, he made them pay household and kitchen expenses out of their own pockets. AO The men in the office, on the other hand, because they lived in Coban, received neither housing nor food. Unlike the Germans, the Guatemalans collected their wages by the month. Since they were native residents of the area, they had families and relatives to sup­ port and needed cash in order to live. They could not afford to leave their salaries on deposit with Dieseldorff although he, on his part, was willing to allow this. The Guatemalan labor laws of 1925 and 1927 permanently altered the national make-up of the staffs of foreign-owned firms, such as Dieseldorff's, which operated in the country. The laws decreed that in any agricultural or commercial enterprise a minimum of 75 % of the employees (empleados) had to be Guatemalan nationals. the change was not as drastic as it appeared to be. In actuality, The laws strictly delimited the category of "empleado" to persons that were able to read and write Spanish and that were receiving a regular salary. Manual laborers and workmen (labradores £ obreros) of any kind were excluded, on Letter: EPD, Coban, to Caralampio LSpez, Secac, April 17 and 23, 1901, Letterbook, "Fincas," No. 1, pp. 31-32, DC, L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r even if they were literate and were being paid a regular wage, and so were all professional persons. Infractors were liable to a fine set at double the monthly salary of all foreigners employed in excess of the 25 % maximum. 8l In Dieseldorff's case the labor laws caused only minor prob­ lems. Because they came at a time when he had more Guatemalans than Germans working for him, he was spared having to make radical changes in his staff. His main difficulty was with the local officials who enforced the laws and who, according to him, were bent on harassing him because he was a foreigner. In mid-1928 a problem arose over the number of Germans work­ ing for him. Dieseldorff was in Europe at the time and Max Quirin was in charge of the business. In compliance with the labor law, Quirin had submitted to the departmental governor a list of Diesel­ dorff's employees. Of the thirty-three persons named, twenty-six were Guatemalans, and seven were Germans, but one of the Germans, Ferdinand Kielhorn, was a mechanical engineer. As a professional, he was by law to be excluded from the total count. According to Quirin's calculations only 18 % of the staff members were foreigners. Meanwhile, the governor had appointed a commission to investi­ gate foreign-owned firms for possible violations of the labor lav. The committee not only insisted that Kielhorn be counted, but it sum­ marily deleted six of the Guatemalans on the grounds that they were "obreros." With these changes the percentage of German employees 8lLeyes de Guatemala. Vol. XLIV, pp. 2l*-25; ibid., Vol. XLVI, p. 91. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3831 increased to 25.9 %. The Jefe Politico informed Quirin that the firm had an excessive number of foreign employees and arbitrarily imposed a fine of Q 200,^ which Quirin paid under protest,®^ Quirin filed an appeal and sought, without success, to bring pressure to bear on the Jefe Politico to change his decision by enlisting the support of officials in the national government. 8k When Dieseldorff returned to Guatemala, he immediately renewed the fight. To him it was not the money, but what the fine represented. He knew that he had to disprove unequivocally the spurious accusation, because if he did not, the unrefuted charge might easily cause him more serious problems in the future. He argued his case before the Chamber of Commerce, the Department of Labor, and the Ministry of De­ velopment.®^ After several months' efforts, Dieseldorff finally 82 Letters: Max Quirin for EPD, Coban, to the Jefe Politico, Coban, August U and 17, 1928, Letterbook, "Asuntos ante las autoridades," Ho. 1, pp. 511, 52U-527, DC. QO Letter: Max Quirin for EPD, Coban, to the Jefe Politico, Coban, CAugust 20, 19283, Letterbook, "Asuntos ante las autoridades," No. 1, p. 529, DC. 8kQuirin in his letters to various officials charged that the committee's investigation had been superficial, and that its report to the Jefe Politico was based on prejudice, not on fact. To sub­ stantiate these accusations he cited a number of blatant misstate­ ments and omissions in the report. He added that the inclusion of Kielhorn was patently illegal, and that his name had been added to the list for the sole purpose of raising the percentage of foreigners above the legal limit. Letter: Max Quirin for EPD, Cob&n, to the Ministerio de Fomento, Guatemala, August 20, 1928, Letterbook, "Asuntos ante las autoridades," Ho. 1, pp. 530-532, DC. There is other correspondence on this matter in the same letterbook, pp. 5^ 8 , 553, 555, 557- 558, 561- 562, 566. Qr ^Dieseldorff pointed out to each of the officials why none of the German employees on the original list, except one, could be replaced by a Guatemalan. The one who could had fortuitously L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3841 succeeded. He was completely exonerated by the government, and the fine money was returned to him. 86 Dieseldorff engaged administrative assistants, clerks, and skilled workers as he needed them. The positions, whether held by Guatemalans or Germans, fitted into the administrative hierarchy that Dieseldorff had created. All employees, regardless of nationality, position, or responsibility, were answerable to Dieseldorff the patron, and he used them as tools to implement his plans. Dieseldorff was a stern and demanding employer, but the long tenure of many of the men would seem to indicate that he maintained a reasonably cordial relationship with them so long as they followed orders and did not shirk responsibility. In this sense they were perhaps in a somewhat similar situation as the Indian laborers, except that they were paid more and were not absolutely tied to the system. resigned in the interim. Letter: EPD, Coban, to the Camara de Comercio, Guatemala, December 18, 1928, Letterbook, "Asuntos ante las autoridades," Ho. 1, p. 637, DC; Letter: EPD, Coban, to the Director del Departamento Nacional del Trabajo, Guatemala, February 21, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 690-692, DC; Letter: EPD, Coban, to the Ministerio de Fomento, Guatemala, May lU, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 762-763, DC. 86 Letter: EPD, Coban, to the Administrador de Rentas, Coban, July 25 , 1929, Letterbook, "Asuntos ante las autoridades," No. 1, p. 792, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r n CHAPTER X THE DIESELDORFF FIRM, 1900-1969 EXPERIMENTS, CRISES, AND CHANGES Erwin Dieseldorff started his career in Guatemala as a coffee planter, hut coffee was not his sole concern. He was a man of many interests and tremendous ambition, who aspired to he more than Just a coffee planter. He saw the inherent dangers of heing totally de­ pendent on a single export crop, and within a decade after he had settled in the Alta Verapaz, he had initiated efforts to diversify his activities, first into other forms of agriculture, and later into commerce and light industry. Although these subordinate ventures did not all produce the profits he had hoped for, they are important enough to warrant consideration. Previous chapters have alluded to some of the crises that Dieseldorff encountered over the years. The success or failure of any agricultural undertaking is often influenced by forces beyond the producer’s control, and Dieseldorff's business was no exception. Most commonly he had to cope with the periodic rise and fall of the European commodity markets as well as with currency inflation and occasional poor harvests. More critically, he had to grapple with the grave problems caused by political events in Europe and Guatemala and by the world-wide depression of the 1930's. In order to survive such situations Dieseldorff made adjustments and changes in the business, but in some instances the only thing for him to do was to wait for the problem to resolve itself. L 385 R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r About 1900, Dieseldorff decided that he was well enough established financially to expand the sphere of hi3 activities. He believed that there were profits to be made in areas of tropical agriculture other than coffee, and he began to look for a property to buy in the hot lowlands of the Alta Verapaz. In 1901 he purchased LaB Amazonas, an immense tract of land situated on the south bank of the Polochic River. The upper boundary ran along the river from La Tinta to TelemAn, and the property extended southward to the Sierra de las Minas in the departments of Zacapa and El Progreso. Although the mountain areas were extremely remote, the level section in the north was on the route of the Ferrocarril Verapaz. The fertile lowlands of Las Amazonas had unlimited possibil­ ities, Dieseldorff was convinced. He envisioned a highly prosperous plantation that produced a wide variety of export articles, for the land was suitable for the cultivation of coffee, sugar cane, cotton, cacao, and rubber. In his enthusiasm he perhaps failed to take into account the drawbacks of the area. The sections that he planned to exploit were pestiferous and malarial fevers were endemic. The re­ gion was sparsely populated, and the few inhabitants found there were scarcely able to work, for they were weak and sickly from chronic fevers and intestinal parasites. Troubles beset Dieseldorff from the start. The first over­ seer that he appointed fell ill within four months and had to resign. 1 "'"Letter: EPD, Coban, to Antonio Cordero, Las Amazonas, February 7, 1902, Letterbook, ’’Fincas," No. 1, pp. 296-297* DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3871 Labor was a constant problem since workmen were all but Impossible to secure locally. To alleviate the shortage, Dieseldorff trans­ ferred Indians from the highland fincas to Las Amazonas. He pro­ vided them sleeping quarters in a screen-enclosed dormitory on high ground. The site was located more than one hour's walk from the work area, but it was the only place he could find that was relatively free of mosquitoes. At the same time he ordered the administrator to destroy systematically mosquito breeding grounds. Despite his precautions to protect the men, they became sick and some died. 2 Dieseldorff had several projects in mind when he bought Las Amazonas. He was primarily interested in establishing a rubber plan­ tation, but this was a long-term undertaking, and in the meantime he wanted to cultivate one or two quick cash crops, which would yield immediate revenues. Since sugar cane grew wild in the area, the manufacture of partially refined sugar appeared to be a good possi- • bility. He purchased equipment in the United States and installed a 3 small mill for the production of clayed brown sugar. Soon he realized that he was losing money, because the cost of shipping the sugar to Cob£n was greater than the price it brought, and in Livingston and Puerto Barrios the market was glutted. To avoid further losses he p Letter: EPD, [Cob6n], to J. Francisco Paredes, Las Amazonas, October 31, 1901, Letterbook, "Fincas," No. 1, pp. 21U-215, DC; Letters: EPD, Coban, to Antonio Cordero, Las Amazonas, February 20, and March 7, 1902, Letterbook, "Fincas," No. 1, pp. 311-311*, 326-327, DC. Letters: EPD, Cob£n, to J. Francisco Paredes, Las Amazonas, September 12, and October 19, 1901, Letterbook, "Fincas," No. 1, pp. 183-187, 199-200, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r was forced to close down the operation. He planted cotton on some of 5 the cleared areas and shipped a small amount to Hamburg, but his production costs were too high for him to realize a profit. years he sent the cotton to Coban to manufacture thread. In later He also considered planting coffee and cacao, but rejected the Idea, because there were not enough laborers on the plantation to carry out the project.^ With rubber production Dieseldorff fared a little better, at least temporarily. Although there were rubber tre^s scattered through­ out the Jungles of Las Amazonas, few were worth tapping. Most were of the gutta-percha variety, and there was little market demand for the inferior grade of rubber obtained from the sap of these trees, Cultivated trees, he believed, would give him a more marketable com­ modity. Consequently, he began to lay out groves, using seeds as well as cuttings of the species that produced a less resinous latex than 7 the gutta-percha. In the meantime, until the young plants had Letter: EPD, Cobfin, to J. Francisco Paredes, Las Amazonas, January 28, 1902, Letterbook, ’’Fincas,” No. 1, pp. 288-289, PC; Letter: EPD, Cobfin, to Wilhelm DrSgemttller, Las Amazonas, April 2, 1902, Letter­ book, "Fincas,” No. 1, pp. 370-371* DC. IZ Letter: EPD, [Cobfin], to J. Francisco Paredes, Las Amazonas, August 23, 1901, Letterbook, ’’Fincas,” No. 1, pp. 183-187, DC; Bill of lading for cotton shipment, Letterbook, "Ferrocarril Verapaz," No. 4, p. 204, DC. ^Letter: EPD, [Coban], to J. Francisco Paredes, Las Amazonas, October 31, 1901, Letterbook, "Fincas," No. 1, pp. 214-216, DC; Letter: EPD, Cob£n,to Wilhelm DrSgemtiller, Las Amazonas, April 4, 1902, Letter­ book, "Fincas," No. 1, pp. 356-358, DC. 7 ___ Letters: EPD, Cobfin, to J. Francisco Paredes, Las Amazonas, May 23, September 12, and October 4, 1901, Letterbook, "Fincas," No. 1 pp. 62-63, 183-187, 192, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3891 0 matured, he tapped the wild trees selectively and on a limited scale. In 1905 Dieseldorff began shipping crude rubber to Germany. 9 He exported six hundred poundB that year, the next.10 and one and a half tons From 1907 to 1911 he shipped about three and a half tons annually, on consignment to his Hamburg agents, Haller, S8hle & Co. or August Sanders & Co.11 Thus the amount of rubber that Dieseldorff had to market never reached the figure he had hoped for in the be­ ginning . The profits that Dieseldorff made from rubber, which were never large, began to drop each year. Unfortunately, he had started in the business at a time when competition from rubber plantations in the Far East was causing a drastic fall in the world market price. By 1910 the market had collapsed, and Dieseldorff suffered a loss of nearly 6,000 pesos. 12 He decided that the plantation would continue to be a drain and that he would do better to concentrate on other Q Letter: EPD, (Coban], to J. Francisco Paredes, Las Amazonas, August 23, 1901, Letterbook, ’’Fincas," No. 1, pp. 163-167, DC; Letter: EPD, Cobfin, to Antonio Cordero, Las Amazonas, February 20, 1902, Letter­ book, "Fincas," No. 1, pp. 311-31^, DC. ^Bill of lading for rubber shipment, Letterbook, "Ferrocarril Verapaz," No. 3, p. 95, DC. 10Bills of lading for rubber shipments, Letterbook, "Ferro­ carril Verapaz," No. 3, pp. 196, 229, DC. ^ B i l l s of lading for rubber shipments, Letterbooks, "Ferro­ carril Verapaz," No. 3, pp. 285, 355, 365, 366 (1907); No. 3, pp. 376, 1»71, ^72 (1908); No. 1*, pp. 119, 187, 197, 200, 202, 203, 206, 211 (1909); No. 4, pp. 219, 25^, 261*, 296, 305, 318, 321, 323, 329, 337 (1910); No. k , pp. 3U1 , 31*6, 351, 366, 372, 385, 390, UU7 (1911), DC. 12Ledger, "Libro Mayor," 1905-1911, PP- M 1 - W 2 , DC. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 390l more promising diversification projects that he had recently begun. The following year he sold the property. In buying Las Amazonas Dieseldorff was being overly ambitious, taking on more than he could handle. The profit potential that he saw was there, but he lacked the experience, knowledge, and financial resources to exploit it. He knew nothing about the commercial culti­ vation of rubber, and neither did anyone else in the Alta Verapaz. The labor shortage, which so badly hampered operations from the start, was also symptomatic of his problem. Had he been in a position to import from Belize or Jamaica large numbers of workers who would withstand the climate, instead of having to rely on Indians from the highlands who could not, he might have been able to achieve more than he did. Nevertheless, he did know to pull out and not to overextend himself. By his precipitous action he averted more ruinous losses that would have endangered his coffee business. In spite of the troubles he encountered at Las Amazonas, Dieseldorff continued to be interested in tropical properties. Even before he had sold the place, he had already started in 1903 investing in lari situated fifty miles northeast of Cob&n in the Jungles along the Cancu£n River, a tributary of La Pasion River, and by 1911 he owned more than 38,500 acres in this region. Although this was a great deal of land, his total investment was relatively small, because the cost in Guatemalan currency averaged about fifty centavos an acre. lL 13Ibid., 1911-1916, pp. 67, 69, DC. lb Land sale documents for nineteen lots of San Diego-Yalpemech (1903-1911), DS, San Diego-Yalpemech Box. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r 39H For Dieseldorff the purchase of land In the area was a speculative venture. From Cob&n the property could only be reached on horseback, and the Journey took four or five days of hard riding during the dry season. The region had virgin stands of mahogany and other hardvoods, but it was situated too far upstream to float the logs to sea via the La Paai6n-Usumacinta waterway. There were also many chicle trees, and the fertile soil was suitablo for the establish­ ment of tropical plantations, but again the problem of making bulk shipments was an obstacle to any large-scale undertaking. Dieseldorff, however, saw that other possibilities for making a profit existed. The first two decades of the century were the heyday of woodcutting and chicle extracting in the PetSn Jungles. A number of firms, such as the American and Guatemalan Mahogany Co., had re­ ceived concessions from the government to exploit public lands in the region, and they had many hundreds of men working there. The labor gangs needed food provisions and supplies, and Dieseldorff recognized that he could make money as a merchant by selling goods to the logging companies and to the workmen. He began by transporting merchandise from Cobdn, and with this he established a small general store at San Diego-Yalpemech. The stock included clothing, nails and tacks, spices, dried fruit, tobacco, and liquorall items that were much in demand but that were light, com­ pact, and relatively easy to carry. The liquor business in particular, Letter: Paul 0. Mittelstadt, [Coban], to D. B. Hodgsdon, Guatemala, January 30, 1920, Letterbook, "iGdG ,11 p. 263, DC, W I Int. Pap. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 3921 although Dieseldorff found It distasteful, was most profitable. He also built small boats to ply the waters of the Cancuen and La Pasl 6n stocked with goods to peddle at the work a r e a s . ^ At the same time he resettled about fifty Indian families on the plantation, and sent temporary hands as well. They cleared the land and started culti- vatlons of corn and black beans, 17 which Dieseldorff sold at the store and to the mahogany companies. The shop was hardly a gold mine, but it consistently made money. From 1915 to 1920 profits averaged about $ 5,000. a year, l8 19 and in 1920 the inventory value of the stock was more than $ 17 ,000. Agriculturally, the plantation was also successful. The annual crop yield was about 1+00,000 pounds of corn and 1+0,000 pounds of beans. The American and Guatemalan Mahogany Co. by contract bought the corn, unhusked, at $ 2.00 per hundred pounds and the beans at $ 8.00. 20 During the latter part of 1920, after Dieseldorff had Just recovered his properties from the government, San Diego-Yalpemech was for several months the only plantation producing a steady revenue. The money "^Letter: Paul 0. Mittelstadt, Coban, to J. M. Dyer, Ferrocarril Verapaz office, Livingston, May 23, 1919, Letterbook, nIGdG,w p. 85, DC, WW I Int. Pap. ■^Letters: [EPD, Cobfin], to W. R. Grace & Co., New Orleans, September 18, 1920, and February 22, 1921, DC, Financial Correspondence. 18 Letter: [EPD, Cobtan], to W. R. Grace & Co., New Orleans, February 22, 1921, DC, Financial Correspondence. ■^Letter: [EPD, Coban], to W. R. Grace & Co., New Orleans, September 18, 1920, DC, Financial Correspondence. 20 Letter: [EPD, Coban], February 22, 1921, DC, Financial to W. R. Grace & Co., New Orleans, Correspondence. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r received from the sale of food and supplies helped to save Dieseldorff from financial disaster until the 1920/1921 coffee crop was harvested and sold.2^During the 1920's, as woodcutting activities died down, San Diego-Yalpemech went into a decline. With the departure of the labor gangs, the demand for food and supplies dropped sharply. Most of the Indians returned to the highlands, and by the end of the decade corn production was down to less than 1*0,000 pounds, one tenth the amount it had been before. 22 In an effort to revive the area economically Dieseldorff began to plant cardamom, but with little success. Annual production of the spice en pergamino was never more than 200 pounds. A halfhearted attempt to cultivate tobacco was also a failure. the early 1930's Dieseldorff was losing about Q 500. a year, 25 2k 23 By but he held on to the property, as have his heirs, in the hope that someday improved transportation facilities would permit utilization of the 21Ledger, "Libro Mayor," 1916-1922, pp. 356, 385, 1*20, 1*50-1*52, 1*80, DC; Letter: C EPD, Cob£n], to W. R. Grace 8s Co., Guatemala, October 17, 1920, DC, Financial Correspondence. pp Letter and enclosure: EPD, Coban, to the Jefe Politick, Cobfin, July 23, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, PP. 790-791, DC. 2^E1 Norte (CobUn, AV, Guatemala), Afio XIV, No. 698, December 6, 1921*; Letters and enclosures: EPD, Coban, to the Jefe Politico, Cob£n, June 7, and July 23, 1929, Letterbook, "Asuntos ante las autori­ dades," No. 1, pp. 769, 790-791, DC. Ok Letters: EPD, Coban, to the Director General de Agricultura, Guatemala, March 31, and April 5, 1932, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 783, 785 , DC. 25 Letter: EPD, Cob£n, to the Administrador de Rentas, Coban, February 26, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, pp. l6l-l62, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r~ 39^1 natural resources of the land. Concurrently with the projects at Las Amazonas and San DiegoYalpemech, Dieseldorff began to expand his activities in the Cob£n area. The purchase of Chichochoc in 190U 26 enabled him to process coffee commercially to oro, which proved to be a profitable business. The coffee cleaning machines were run by power generated by a water turbine, but for six or seven, months out of the year, between harvests, the engine was idle. Dieseldorff conceived of a plan that would en­ able him to utilize the available water power all year around and at the same time to create an outlet for cotton grown at Las Amazonas. Dieseldorff decided to establish a small textile mill at Chi­ chochoc to produce inexpensive yard goods to sell to the Indians. The market potential for cheap cotton fabrics appeared to be good, because at the time most materials had to be imported and were subject to a heavy tariff. Those that were not were hand-woven by the Indians. Goods manufactured locally, he believed, could undersell the ones from abroad. In 1906 he installed spinning jennies, weaving looms, and dying vats, and started operations. 27 From the onset he imported dyes from Europe, but soon he discovered that the amount of cotton grown at Las Amazonas was not sufficient to produce all the thread he needed, and consequently he had to order additional thread from abroad. After the sale of the property, he imported all the materials he used for weaving. ^ L a n d sale document for Chichochoc (April 26, 190U), DS, "Hijos" Box. ^ L e d g e r , "Libro Mayor," 1905-1911, pp. 118-119, DC; El Norte, Ano VII, No. 311, September 10, 1916. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J m r The first few years the little factory was moderately prof­ itable, but after the sale of Las Amazonas, it began to lose money. Between 1911 and 1913, the business lost about $ 2,000. each year. Then the war so raised the cost of thread and dyes that from 19ll* to 1916 annual losses increased to $ 1*,000. or $ 5*000. 28 In 1918, . 29 however, the plant showed a profit of $ 900. Late in 1920 Dieseldorff had to close down the mill as an economy measure, because he could not afford the operating costs. or) The value of the stock on hand was more than $ l+,000., this up for sale in order to recoup some of his losses. and he put 31 He became convinced that he could not ever realize a profit unless he operated on a much larger scale than he had before. He did not want to invest any more money into the project, and therefore he never reopened the mill .32 About the same time that Dieseldorff started the textile mill, he opened a small shop at Santa Margarita where he sold the cloth that he manufactured at Chichochoc. A few ladino merchants from the country­ side bought goods wholesale, but the retail customers were mainly 9ft Ledger, "Libro Mayor," 1905-1911* P- 1*57» DC; ibid., 1911-1916* pp. 61, 209-211, 258, 282, DC. 2^Letter: Paul 0. Mittelstadt, [Coban], to D. B. Hodgsdon, Guatemala, June 6 , 1919* Letterbook, "iGdG," pp. 98-99* DC, WW I Int. Pap. 30 Record book, "inventarios," 1919-1926, pp. 3, 19* DC. 31E1 Norte, Afio XI, No. 552, January 1, 1922. 32 __ Letter: EPD, Coban, to the Jefe Politico, Cob£n, December 28, 1928, Letterbook, "Asuntos ante las autoridades," No. 1, p. 61*9* DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 3§il Indians. Dieseldorff realized that once these people were in the store, they were potential "buyers for other articles he might carry. With this in mind, about 1908 he began to expand his stock to cater to the Indian trade. 33 From Great Britain, Germany, and the United States he imported manufactured articles, such as machetes, axes, knives, tin cups, straw hats, cigars, hand mirrors, cheap jewelry, and other trinkets. He also sold salt that his ox-carts transported on the return trip from Pancajche. Although the merchandise moved quickly and the business pros­ pered, Dieseldorff saw that the Santa Margarita shop was out of the way and the quarters were too cramped. further increase sales by moving. He believed that he could After a few years in operation, he relocated to a site near the entrance of the Coban public market, where ladinos and Indians alike shopped. At the new store he began to carry luxury items to attract ladino clients. For example, he was the sole distributor in Cobfin for Victor phonograph players and records. 3l+ He also stocked spices, white sugar, drugs, and European clothing. The store continued to grow, and as it did the variety of merchandise increased. Space once again became a problem, and in 33 Information for the history of the Dieseldorff store came from the following sources: Interviews with dona Matilde Dieseldorff de Quirin and don Arturo Morales de la Cruz; Dieseldorff Collection, Letter­ book series "Tienda," four volumes (1908-1923), which contain purchase orders, correspondence, and related items; and, also in the Dieseldorff Collection, ledgers containing records of daily sales and transactions. Op El Norte, Ago VIII, Nos. 3^5> 353, and 369, June 9> August 11, and December 8, 1917* L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J m r September, 192k, Dieseldorff moved to a much larger building, which was around the corner, just off the central square, next to the church. Dieseldorff had purchased the property in 1920 for about $ 65.00. 35 36 The place had originally been a convent, and for this reason Willi Dieseldorff later renamed the store "El Convento." At the new site the store gradually underwent a radical trans­ formation. Although it continued to carry a few items for the Indians, by the mid-1930's it had become more of a department store, selling many articles that had hitherto been unavailable in any of the other shops in the Alta Verapaz. One of the specialties was hardware, and stock in this department included all types of farm equipment, coffee processing machines and replacement parts, gasoline motors, paints, cement, wire, pipes, screws, and nails. agent for International-Harvester Co. 37 Dieseldorff was also the Cob£n The store had a wide assort­ ment of dry goods, such as English voolens, fine linens, high-quality fabrics, blankets, and clothing, as well as china, crystal, jewelry, toys, canned goods, and other imported foods, was never stocked— liquor. 38 but at least one item Merchandise for the most part was imported from the United States. Some came from Great Britain, but only a few items were German-made. By the time Willi took over the business, 35Ibid., Afio XIV, No. 685, September 6, 192k. 36 Land sale document for lot registered as Finca Urbana k98, Folio lk5, Libro 5, la Serie (July 28, 1920), DS, "Hijos" Box. 37E1 Norte, Afio XIX, No. 937, May 26, 1928; ibid., Afio XXV, Nos. 1269 and 1272, January 12, and February 2, 1935• 38Ibid., Afio XXVII, Nos. 136k and 1367, January 1 and 23, 1937; ibid., Afio XXVIII, No. 1386, June 12, 1937. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r the store was not only the largest, but the only one of its kind in Coban. It still holds the same position today. Its nearest competitor, in sales, is El Gallo, owned by the Datz-Villela Rosa family, but it carries a different type of stock. 39 While Dieseldorff was emphasizing less and less the stock for Indians at the Cob&n store, he was at the same time making efforts to attract more customers on the fincas. Since 1901 he had had a small shop and coffee buying station at Chajuch (part of Raxpec), outside of San Pedro C a r cha,^ and he probably also had little stores on some of his other plantations. During the 1920's he began to enlarge the existing shops and to establish new ones. had stores bn at least nine of his fincas. Chajcar, Cubilgiiitz, Secol, and Raxpec. 1+1 By 1930 he The largest were at The merchandise was much the same as what he had carried at Santa Margarita, but he also stocked candles, kerosene lamps, matches, fiddles, combs, belts, and Dr. Sloan's liniment. 1+2 The stores made money, but the type of stock he carried and the clientele he drew limited the possible revenues. example, the annual sales figure was about Q 2,700. 1+3 At Raxpec, for Although ^Interview with Mrs. Billie Neal de Cox. ^Ledger, "Libro Mayor," 1900-1902, pp. 26-27, DC. ^Inventories of Chajcar, Chiquixji, Cubilgiiitz, El Salto, Raxah£, Raxpec, Santa Cecilia, Sechalb, and Secol (1930), DC. Ip Inventory of li^ Raxaha (1930), DC. __ Letter: Max Quirin for EPD, Coban, to the Administrador de Rentas, CobSn, January 12, 1935 s Letterbook, "Asuntos ante las autori­ dades," No. 3, p. 731, DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J 3^1 r Dieseldorff had no intention of operating the plantation stores at a loss, for his purposes they had other more important functions than profits alone. They served as centers where he made monetary advances to the Indians for coffee, or (up until 1934 when the government x44 abolished debt peonage) for personal service. Several times during his career Dieseldorff was also engaged in mining schemes. As early as 1868 Franz Sarg, a mining engineer, had attempted unsuccessfully to find a commercial grade of silver or 1*5 lead ore in the Alta Verapaz. Despite his countryman’s experience, Dieseldorff in 1898 began to consider the possibility of finding mineral deposits in the department. His interest was no doubt whetted, because at the time his brother Arthur was studying geology and mineralogy at the University of Freiburg, 46 one of the most famous mining and engineering schools in Europe. To undertake an exploration project Dieseldorff and Arthur formed a partnership with their cousins W. A. Dieseldorff and Hermann Helmrich. Arthur was to remain in Germany and analyze the soil and mineral samples sent to him. The other three were to undertake the actual exploration and excavation. They were, however, not only in­ experienced beginners who knew almost nothing about this type of work, but they were not certain what they were looking for, or what they could expect to find. 1*1* Leyes de Gua&gmala, Vol. LIII, pp. 69-70; Memoria . . . Agricultura (1937)» PP* 17» 40. ^ F r a n z Sarg, "Alte Erinnerungen an die Alta Verapaz,” Deutschtum in der Alta Verapaz (Stuttgart, 1938), pp. 13-14. ^ A . D. Dieseldorff, ’’Familien-Chronik,” pp. [35-36], DL. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 4o3 Operations began simultaneously at three places, at Chichochoc in Cobin, and at Bernal and Saquilhi in the southern part of the de­ partment. Dieseldorff and Helmrich dug a tunnel at Chichochoc, where they found a low-grade lignite, but the coal was too wet to burn. Helmrich encountered a clay, which he believed could be used to manu­ facture bricks and tiles, but the material after firing was too dry and brittle to be of any use. Soon, work at Chichochoc had to be abandoned, because water flooded the shaft. mines were equally disappointing. Results at the other two Small veins of lead ore, which the men found, quickly played out, and that which they did mine had such a low mineral content that commercial processing was out of the question. After a few months the men abandoned the work. 1+7 Intermittently Dieseldorff's interest in mining revived. In 1903 he denounced the mineral rights at Secac for the purpose of extracting lead ore. 1+8 Since the terrain of the area was extremely rugged and the finca was very difficult to reach, it was impossible to transport heavy excavating equipment there. at Secac were always on a small scale. Dieseldorff's diggings Although he failed to find a high-grade lead ore, he did discover clays, which he believed might have commercial possibilities for the manufacture of ceramic articles. 1+7 Letters: EPD, [Coban], to Arthur [Dieseldorff], [Freiburg], June 16 and 23, July 7, 12, and 15, 1898, Letterbook, "Varias Cartas,” No. 1, pp. 2-5, 19-20, 53, 66-69, 92, DC; Letter: EPD, [Cobin], to Juan de Le 6n, Purulha, July 6 , 1898, Letterbook, ”Varias Cartas,” No. 1, pp. 1+3—1+1+9 DC. J .Q Petition presented by EPD to the Jefe Politico of the Alta Verapaz (November 9, 1903), DS, Santa Cecilia-Secac Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 1*0 Periodically, he sent samples to Germany for analysis, reports were negative. hut the The clays were worthless. During the early 1920's there was a flurry of oil drilling exploration in the Alta Verapaz, as the government had granted con­ cessions to a number of oil companies from the United States and j Guatemala.^ Dieseldorff, eager to share in a potential bonanza, on his own employed a petrological expert from Germany, Dr. Friedrich Milllerried, to conduct studies for him. Miillerried, who had a degree in geology from the University of Heidelberg, arrived in May, 192**, bringing with him more than 3,000 pounds of equipment for his experiments. 52 He took soil samples from Dieseldorff's properties, and later with Dieseldorff's help he set up a laboratory in Cobfin, where he invited residents of the department to bring him samples, which he would analyze without charge. 53 In addition, Mtillerried made tentative explorations throughout the Alta Verapaz, as well as in the departments liQ Bill of lading for shipment of soil samples, Letterbook, "Perrocarril Verapaz,” No. 3, p. 355> DC. ^Letter: Dr. R. Rieke, Charlottenburg, to EPD, Charlottenburg, October 18, 1923, DC, Financial Correspondence. ^ Fomento (1925), pp. 160-181. 52Ledger, "Libro Mayor," 1922-1925, pp. 215, 273, DC; Letter: EPD,[Cobfin], to the Ferrocarril Verapaz office, Pancajche, May 2, 1 9 2 k , Letterbook, "Ferrocarril Verapaz," No. 7, P* 103, DC; Letter: EPD, [Coban], to the Ferrocarril Verapaz office, Livingston, July 5, 192U, Letterbook, "Ferrocarril Verapaz," No. 7, P* H 8 » DC. On succeeding pages there are other letters regarding additional equipment and sup­ plies that Dieseldorff imported for Mullerried's work. 53E1 Norte., Afio XIV, No. 670, May 2k, 192k. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r of Izabal and the Pettfh. After several months' work, he concluded 5I* that there was no oil to he found In any of these regions, and In July, 1925, he returned to Germany.^ Following the disappointment over MUllerried's findings, Dieseldorff decided not to undertake any new projects. In the past many of his attempts at diversification had failed and having reached the age of fifty-seven, he had lost the youthful enthusiasm for the untried that had marked his personality before World War I. There­ fore, he turned his energies to coffee production and retail mer­ chandising, businesses in which he was already well established and that had been profitable in the past. At the same time he renewed efforts to achieve a greater degree of self-sufficiency in the plan­ tation complex, for although as a unit it operated independently in almost every respect, there continued to be one costly area of deficiency— corn production. Although maize, or Indian corn, was the dietary mainstay of the Indians of the Alta Verapaz, the department seldom produced enough of the staple to meet the demand. No doubt one reason for this was that the fertile, arable lands in the mountains were of much more value planted to coffee. Another was the consistently low yield per acre owing to the primitive cultivation techniques of the Indians, who practiced the slash and burn method and used only rude hand tools. To prevent famine, departmental officials almost every year had to ^Letter: EPD, C o b i n , t o President Jorge Ubico, Guatemala, June 30, 1931, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 39^-395 j DC. 55Ledger, "Libro Mayor," 1925-1927, p. 1^0, DC. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r I 40 bring in corn from other parte of the country, or to Import it from abroad. The Dieseldorff plantation complex was no dlffcront. Although each of his colonos received a plot of land to till, production was not always sufficient to fill the need, especially in years when crops were bad. If the mozos ran put of food supplies, Dieseldorff was under obligation to give them supplementary provisions. Furthermore, since he also provided rations to his meseros, to the Jornaleros, and to his staff employees, the total amount of maize the business needed was large. Some of the supply came from flnca landB that were culti­ vated for this purpose, but each year Dieseldorff had to buy large quantities extra. This expenditure cut into his profits, because he had an estimated 1,100 colonos on his plantations and regularly em­ ployed several hundred more Jornaleros. A small Indian family of four required on the average of one hundred pounds of husked corn a month, which cost him, when purchased from local commerciaj. pro­ ducers, between Q 1.33 and Q 1.50 per hundred pounds.^8 the price was as high as Q 2,00, 57 Sometimes and for imported maize it was Q 5-00.58 ^8Corn buying contracts dated December 30, 1926 (100 quintales), January 5, 1927 ( 60 quintales), September 8 and 26, 1927 (25 quintales), DS, "Varios” Box. ^Letter: Max Quirin for EPD, Cob£n, to Manuel Castro P., San Juan Chamelco, February 11, 1926, Letterbook, "Varios Asuntos,” No. 8, p. 7, DC. ^Letters: EPD, Cobfin, to the Alcalde 1* Municipal, Cob£n, March 13 and 23, 1929, Letterbook, ’’Asuntos ante las autoridades,” No. 1, pp. 709, 717, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 4041 In order to reduce operating costa Dieseldorff knew that he must increase production by cultivating maize on a large scale. Cubilgiiitzi situated one day's Journey from Cobfin, was the logical place to do this. The plantation had fertile Boil and large areas of level land, and the hot climate produced two crops a year, in May and in September. In 1929* there were seventy-five acres of corn at Cubilgiiitz, and annual production was about 40,000 pounds. 59 Up to then Dieseldorff had used ox-drawn plows to till the soil, but that year he purchased a McCormick-Deerlng tractor and accessories for It, Including two sowing machines, two drill plows, one disc plow, and four light plows. As a result of Dieseldorff's innovation, both production and yield increased rapidly at Cubilgiiitz. By the end of the first year there were more than 100 acres planted to corn, which yielded 70,000 pounds a year, or 648 pounds per a c r e . ^ had been 529 pounds per acre. 62 Previously, the average By 1933, with nearly 200 acres under "^Letter: EPD, Cobfin, to the Alcalde 1* Municipal, Cobfin, April 19, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 738-739, DC. ^Letters: EPD, Cob&n, to the Jefe Politico, Cobdn, April 29 and 30, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 743, 744, DC; Inventory of Cubilgiiitz (1930), DC; El Norte, Afio XX, No. 986, May 11, 1929Dieseldorfffs was not the first tractor in the Alta Verapaz. Three years earlier Sapper & Co., Dieseldorff's nearest rival in the coffee business, had introduced a machine into the department. El Norte, Afio XVI, No. 825, March 18, 1926. ^Agricultural and statistical data on Cubilgiiitz (1930), Letterbook, "Asuntos ante las autoridades," No. 1, p. 985, DC. ^Letter: EPD, Cobfin, to the Alcalde 1* Municipal, Cobfin, April 19, 1929, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 738-739, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r cultivation, annual production was approximately 150,000 to 160,000 pounds, nearly 800 pounds per acre. These figures did not include corn grown on milpa lands at Cubilgiiitz, which amounted to some 120,000 pounds a year. 63 By quadrupling production in four years, Dieseldorff was able to grow a much larger percentage of the corn con­ sumed on his fincas. This in turn cut his overhead, because he no longer had to buy it in such large quantities as before. Cubilgiiitz continues to be, down to the present time, the main supplier of maize for the Dieseldorff plantations. About 1929 Dieseldorff also began to expand corn cultivation on his coffee fincas. In these areas he continued to till the soil with hand plows, however, because the broken terrain of the area and the small size of the individual fields, then as today, made the use of heavy farm equipment impracticable. At Chiquixjf he doubled the acreage between 1928 and 1930, from thirty-eight to seventy-six acreB, and annual production increased from 15,000 to 30,000 pounds. changes occurred on the other plantations. 6k Similar For example, by 1930, there were 270 acres planted to corn at Chajcar, 216 at Santa Cecilia, 162 at RaxahaC', and 151 at Secol, and total production was l»70,000 pounds a year, more than double the amount in 1928. Production of corn Agricultural and statistical data on Cubilgiiitz (1933), Letter­ book, "Asuntos ante las autoridades," No. 3, p. 100, DC; Letter: Max Quirin for EPD, Cobfin, to the Alcalde 1* Municipal, Cobfin, February lU, 1933, Letterbook, "Asuntos ante las autoridades," No. 3, p. 25, DC. ^Agricultural and statistical data on Chiquixjf (1928, 1930), Letterbook, "Asuntos ante las autoridades," No. 1, pp. 357, 995, DC. ^Agricultural and statistical data on Chajcar, Santa Cecilia, Raxah£, and Secol (1930), Letterbook, "Asuntos ante las autoridades," No. 1, pp. 990-992, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 463 on the fincas where it was consumed was another savings for Dieseldorff, because it reduced the amount he had to transport from CubilgUitz and consequently cut down on his shipping costs. Dieseldorff’s attempts at diversification did not come off well in every instance. Although there were different reasonB for the outcome of each venture, there was also one common determinant to their success or failure. The salient fact was that Dieseldorff by training was a merchant, by talent an administrator. He was not an agriculturalist or a textile manufacturer or a mineralogist. The success of his coffee business is most accurately attributable to his ability to select properties, to accept the advice and adapt the examples of others close by, to formulate practical plans, and to execute them at a careful, deliberate pace. In this light the results of his diversification projects are understandable. Corn, an essential commodity on the plantation complex, had always been grown on the fincas, but by undertaking large-scale cultivation, Dieseldorff made the crop a valuable adjunct to the busi­ ness. The enlarging of the finca shops also achieved this purpose. The Cobin store, like the coffee business, started as a modest opera­ tion, but Dieseldorff soon recognized that it had the potential to be much more. He studied the stock of other establishments in Cobin, and then by gauging the market demand for import articles and by utilizing his commercial experience and connections, he gradually began to ex­ pand the store until it was the largest in the Alta Verapaz. The failures occurred in areas where Dieseldorff was not L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J ! r 407 knowledgeable and where the amount of his capital resources limited the extent of his activities. Dieseldorff the merchant operated a thriving store at San Diego-Yalpemech, but the business made money only as long as there was a demand for supplies and food provisions. Here and at Las Amazonas his plans to establish tropical plantations were completely thwarted. To carry out such projects a large amount of money was required, first for the initial investment, and then to support the operation until it began to show a profit. Additionally, it was necessary to function on a very extensive scale in order to lower production costs and compete favorably on the world market. To a great degree, the same held true for the textile mill and the mining ventures. Clearly, Dieseldorff started off on the wrong tack. Alone, any one of these projects would have been too costly for a single individual to undertake. them pay. They required a corporate endeavor to make Yet, Dieseldorff began the ventures almost simultaneously, within the same decade, so that his financial resources were thinly spread. It is not surprising that his attempts were so often frus­ trated. Fortunately for the future of his enterprise, throughout this period his main interest remained coffee. Unwilling to Jeopardize this business, he set a limit to the amount of money he would invest in any new undertaking. When a project was faring badly and losses were more than what he thought he could safely afford, he pulled out. But if a scheme proved to be successful, he stuck with it and worked to increase its profits. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 4081 Although Dieseldorff's coffee "business prospered, from time to time difficulties arose, which he could neither foresee nor prevent. He was dealing in futures, for each year he made sale agreements and drew monetary advances before the harvest began. These commitments were not based on actual figures, but rather on an educated estimate of the size of the crop and on the anticipated market price of coffee. Some years the crop was not large enough for him to meet his obli­ gations to creditors and consignees in Europe, for example, when an unexpected early frost burned many of the partially ripened cherries. On other occasions, sudden price drops made it impossible for him to repay with coffee shipments all the money he had borrowed. When such problems occurred, Dieseldorff had no alternative but to weather through. favor. In doing this, he had several things in his The market demand for de luxe coffees like his was consis­ tently great, and at the same time these expensive grades were always in limited supply. As a result, producers of fancy coffees were spared such financial disasters as befell those who exported cheapgrade coffee to an already glutted market. Most importantly, because Dieseldorff had established his business on a sound basis, it was able to withstand and recover from economic setbacks. Financially, Dieseldorff was able to survive ordinary, re­ current economic and agricultural difficulties, but the critical situation caused by the First World War and its aftermath was altogether different, and it very nearly ruined him. The crisis came at the mid-point of his career, and although it in itself was an important event, it was also a dividing line that distinctly separated and L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r differentiated his early activities from the later ones. Some of the problems that he encountered during this period have been mentioned before in other contexts, but heretofore not chronologically. In the spring of 1912 Dieseldorff had traveled to Berlin to continue his experiments with the medicinal plant mesbe. His leaving Guatemala was not unusual, because he visited his family in Germany almost every year between harvests. This time, however, he did not return in the fall as he had in the past. During his stay he had received the doctors' favorable reports on the mesbe, and consequently he had decided to remain in Germany to found a clinic for use of the drug. His involvement in the project kept him there throughout 1933 and into 191^, and when war broke out he was still in Berlin. Possibly in the early days of the war he could have managed to escape back to Guatemala alone, but he refused to abandon his wife and children (his son Willi was then less than one year old). Certainly at this time he had no way of foretelling the turn of events in Guatemala. In Coban, Paul Mittelstadt, who had worked for Dieseldorff since 1901> was manging the business during his absence. Mittelstadt in an awkward position. The war put Once the fighting started, he was unable to communicate with Dieseldorff either by mail or cable, and from then on all decisions he made were his own. There was no way for him to get Dieseldorff's advice or approval on anything, and yet he had to account to him for every step he took. Almost immediately several problems developed. Since the conflict disrupted the European commodity markets as well as shipping service to ports on the North Sea, Mittelstadt had to find new outlets L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 413 for the Dieseldorff coffee. A small part of the 1910/1911 harvest had been sold through Eggers & Heinlein of New York, 66 and starting in November, 1914, he began to ship all coffee on consignment to that firm. 6t Although Mittelstadt continued to use Eggers & Heinlein, in 1915 and 1916 he sold about one third of the crop through Hard & Rand ?f New York. In addition, he began to route most shipments through New Orleans on vessels of the United Fruit Company and the Morgan Lines . ^ The war put the Dieseldorff firm in a financial bind. Short­ term credit sources in Germany and Great Britain, upon which the business had always relied before, were cut off just as the harvest was about to begin. This was the season when the house most needed cash for its operations. banks were frozen. At the same time, funds deposited in German Dieseldorff's major accounts had been in German banks, and since it was impossible to transfer monies to Guatemalan or North American banks, the company's liquid assets were drastically reduced. Shortly thereafter the value of the Mark began to decline. This triggered a run on the Dieseldorff firm, as the German employees 66 Bills of lading for coffee shipments, Letterbook, "Ferrocarril Verapaz," No. 4, pp. 325-398, DC. 67 Letter:[Paul 0. MittelstSdt, Cob£n], to the Hamburg-America Line, New York, November 28, 1914, Letterbook, "Varias Cartas," No. 23, p. 804, DC. 68 Bills of lading for coffee shipments, Letterbook, "Ferro­ carril Verapaz," No. 6 , pp. 3-100 (1915/1918 harvest), 113-186 (1916/ 1917 harvest), DC; Letters: Paul 0. Mittelstadt, Coban, to the Ferro­ carril Verapaz office, Livingston, April 8 and 20, 1917» Letterbook, "Ferrocarril Verapaz," No. 6 , pp. 136, l40-l4l, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r who had left their salaries on deposit demanded their money in order to convert the Marks to dollars or gold. Mittelstadt realized that the situation was critical, for if the men withdrew their savings, the firm’s cash reserves, which were already dangerously depleted, would be totally wiped out. To avoid what he believed was certain bankruptcy, Mittelstadt made an agreement with the men that if they allowed the money to remain, after the end of the war Dieseldorff would repay the sums at a guaranteed rate of exchange of 1*.50 Marks to the dollar. 69 Meanwhile, diplomatic relations between Germany and the United States were deteriorating, and events finally led to the declaration of war by the United States. Guatemala, in response to pressure from the United States, severed relations with Germany on April 27a 1917- 70 Throughout 1917 Mittelstadt continued to export coffee under Dieseldorff’s name, but in December, 1917, the War Trade Board’s publication of the ’’Black List” of alien enemy firms in Latin America made this impossible, for Dieseldorff was among those listed. 71 So as to pro­ tect Dieseldorff’s interests, Mittelstadt transferred all accounts to himself and began making shipments in his own name. 72 Letters: Paul 0. Mittelstadt, Cob£n, to D. B. Hodgsdon, Guatemala, May 1 6 and 29, 1919s Letterbook, "iGdG,” pp. 80, 93, DC, WW I Int. Pap. ^ L e y e s de Guatemala, Vol. XXXVI, pp. 15-16. ^Times-Picayune (flew Orleans), Vol. LXXXI, No. 313, December 10 , 1917. ^Letter: Paul 0. Mittelstadt, Cobfin,to EPD, Coban, July 13, 1920, DC, Financial Correspondence. This is Mittelstadt*s letter of resignation. It is in the form of an apologia, wherein Mittelstadt relates and accounts for his actions during the period 1917 to 1920. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 4121 The new arrangement soon became unworkable. Guatemala declared war on Germany, 73 In April, 1918, and Mittelstadt realized that his German nationality might cause problems. A few months later the government confiscated all German-owned utilities, including the Ferrocarril Verapaz, 7U and in the Alta Verapaz there were open ex- pressions of anti-German sentiments. 75 Mittelstadt became fearful that he would not be able to market the 1918/1919 harvest. In an effort to avert this catastrophe, he signed a contract with a North American planter in the department to sell the crop for a commission. The terms of the agreement were later to cause Dieseldorff trouble, for included was a clause which stipulated that if for any reason the firm failed to deliver the coffee, the planter could demand thererrg for the sum of 3 5,000. Developments in Guatemala prevented the Dieseldorff house from keeping its part of the agreement. On February 12, 1919> three months after the armistice, the Guatemalan government ordered the intervention of all properties and businesses owned by German subjects Leyes de Guatemala, Vol. XXXVII, p. 6. According to the Norddeutschen allgemeine Zeitung, the Kaiser, in reaction to Guatemala's move, exlaimed, "Five billion dollars indemnity!" GFMA, Reel 25» Frame 32. 7I1 ^ Leyes de Guatemala, Vol. XXXVII, pp. 19-20, 26-27^ Diario de Centro-America (Guatemala), Afio XXXIX, No. 10770, September 23, 1918; El Norte, Afio VIII, No. U 09 , October 5, 1918. Documents and correspondence relating to an agreement between Paul 0. Mittelstadt, acting for EPD, and R. W. Hempstead (1918), DS, "Varios" Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 413I who were residing in Germany. 77 Two days later it created the Inten- dencia General del G o M e r n o to administer the sequestered properties, and appointed Daniel B. Hodgsdon, a United States citizen, to head the agency. 78 On March 2H, 1919* Mittelst&dt appeared before the Intendencia, as required by law, and informed the officials that his employer Erwin Dieseldorff was a German national and was residing in Berlin. 79 After Dieseldorff returned to Guatemala, he bitterly censured Mittelstfidt for the statement that he had made to the Inten­ dencia, for Dieseldorff regarded as disloyalty Mittelstadt’s failure to explain the circumstances that detained him in Germany and his neglecting to make clear that, although living in Germany, he had not taken any part whatsoever in the conduct of hostilities. Dieseldorff, however, was not then present in Guatemala to defend his position, and the Intendencia accepted Mittelstadt's declaration as complete. On March 26th it intervened Dieseldorff’s properties and named Mittelstadt as Interventor Interino to supervise the business for the government. 80 Mittelstadt submitted a detailed inventory of Dieseldorfffs holdings and of accounts outstanding, 8l and two months later, acting under Hodgsdon’s instructions, he ^ Leyes de Guatemala, Vol. XXXVII, pp. 31-35* T 8Ibid., pp. 280- 282. 79 Letter: Francisco Cuellar A., Secretary, IGdG, to [Paul 0. Mittelstadt, Cob£n], June 17» 1920, DC, WW I Int. Pap., Correspondence. 80tv.„ Ibid. ftl General inventory of E PD’s properties made by the IGdG, March 31> 1919» US, "Varios” Box. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 414I deposited the land titles and deeds to Dieseldorff's properties in the custody of the Intendencia. 82 Available evidence indicatee that >.he Dieseldorff enterprise was honestly managed during the Intervention period. Hodgsdon de­ manded that operations he conducted in a businesslike manner, and he ordered Mittelstfidt to practice all possible economies in order to prevent financial losses. Any extraordinary expenditures or special projects had to be approved personally by him. Financial accounts had to be submitted to him at regular intervals, and apparently he «• Do scrutinized them carefully. The Intendencia also took over nearly 300,000 pounds of coffee from the 1918/1919 harvest and sold it for the Dieseldorff firm. 84 Mittelstadt, nevertheless, still had to contend with a number of serious problems. The Intendencia did not allow the intervened businesses to draw short-term credits. The only source of income the Dieseldorff house had was from coffee the Intendencia sold, and as a result the business was very low on cash. This forced MittelGc stadt to suspend coffee buying in 1919 and 1920, which not only 82 Letter: Paul 0. Mittelstfidt, [Cobfin], to D. B. Hodgsdon, Guatemala, May 29, 1919* Letterbook, "IGdG," p. 92, DC, WW I Int. Pap. go Letter: D. B. Hodgsdon, Guatemala, to [Paul 0. Mittelstfidt, Coban], October 9» 1919s DC, WW I Int. Pap., Correspondence; Report: Paul 0. Mittelstadt, Cobfin, to the Departamento de Contabilidad, [IGdG], Guatemala, February 16 , 1920, Letterbook, "IGdG,” p. 284, DC, WW I Int. Pap. 84 Letter: Paul 0. Mittelstfidt, [Coban], to D. B. Hodgsdon, Guatemala, September 11, 1919s Letterbook, "IGdG," p. 157, DC, WW I Int. Pap. ^Letter: Paul 0. Mittelstfidt, [Cobfin], to D. B. Hodgsdon, Guatemala, October 30, 1919s Letterbook, "IGdG," p. 193, DC, WW I L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 415! reduced the company's exports but deprived it of a most profitable operation. European markets remained closed, and the United States, where the Dieseldorff crop was being sold,had never been the best outlet for the grade produced on his fincas. In Guatemala the monetary situation appeared bleak, as the value of the peso continued to fall. 86 Worst of all, the period was one of uncertainty, and the morale of the staff was badly shaken. and minor disorders on the fincas. 87 There were incidents of theft The future existence of the house seemed dubious, for months had elapsed since peace had been restored, and Dieseldorff still had not reappeared in Guatemala, or even been heard from. Skeptics conjectured that he would never return. At the same time rumors abounded that the government did not plan to give the intervened properties back to the owners, but was going to sell the land. Some of Dieseldorff's employees, it is said, went so far as to stake out the fincas they intended to take over when the sale occurred.®^ Such was the state of affairs when Dieseldorff finally returned Int. Pap.; Letter: D. B. Hodgsdon, Guatemala, to [Paul 0. Mittelstadt], Cobfin, November It, 1919> DC, WW I Int. Pap., Correspondence. 86 The rate of exchange of the Guatemalan peso to the United States dollar was 28.00 pesos x $ 1. in March, 1919* 33.00 pesos x $ 1. in June, 1919; UU.93 pesos x $ 1. in January, 1921; and 58.63 pesos x $ 1. in January, 1922. Letter: Paul 0. Mittelstadt, Cobfin, to D. B. Hodgsdon, Guatemala, June 9» 1919, Letterbook, "iGdG," p. 99, DC, WW I Int. Pap.; Fomento (1921+), p. 305. ^Letter: D. B. Hodgsdon, Guatemala, to [Paul 0. Mittelstadt], CobSn, July 30, 1919, DC, WW I Int. Pap., Correspondence. 88 Interviews with dofia Matilde Dieseldorff de Quirin and don Arturo Morales de la Cruz. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J to Cobin in late August, 1919* His coming had been delayed by ill- health and by the political and economic upheavals that took place in Germany after the war. He arrived virtually penniless, for inflation had wiped out his accounts in Germany, and all his funds in Guatemala were under the government's control. Although he had learned of the intervention beforehand, he was perhaps not prepared to find that some of his men were already dividing up his properties among them­ selves. On September 2, 1919» Dieseldorff appeared before the Intendencia with a petition that his properties be returned to him. He argued that he should rightfully be exempted from the intervention law, because his being in Germany at the time of the war was accidental and unpremeditated. He had gone there to introduce and promote a Guatemalan product in European medical circles, and the outbreak of fighting had forced him to remain. During his stay he had taken no part in the hostilities and therefore should not be classed as an enemy. Although he was living in Berlin, his legal residence was, and had been since 1889, Cobfin. of documents to prove his point. Dieseldorff also presented a number 89 What happened then is not entirely clear. is so scanty 90 Documentary evidence that events of the following nine months must be pieced On Summary of petition in letter: Francisco Cuellar A., Secre­ tary, IGdG, Guatemala, to [Paul 0. Mittelstadt, Coban], June 17, 1920, DC, WW I Int. Pap., Correspondence. 90 The only items found were the letter cited in the footnote above, another from Cuellar to MittelstSdt dated February 5, 1920, and a receipt dated April 21, 1921. Any others that may have existed were destroyed by Dieseldorff, according to don Arturo Morales de la Cruz. The author was unable to gain access to the files in the Archivo L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r « n together from interviews with participants and eyewitnesses. 91 Dieseldorff first legitimized Matilde Cfi, his natural daughter, who was a native-born citizen of Guatemala, and then transferred to her legal title to all his properties. 92 There is no notation of change of ownership in 1919 or 1920 on any of the land documents, however, as there is in 1937 for the transfer to Willi. Dofla Matilde says that she in turn gave them back to her father, but in a letter to MittelstBdt there is an extract of the Judgment that the Intendencia passed in the case on June ll*, 1920. According to the Intendencia statement, Dieseldorff had proved satisfactorily that he was not subject to the intervention law, and it thereby ordered that all properties and monies held in custody be returned to him. 93 Thus, while undoubtedly there were some maneuverings behind the scenes, Nacional de Guatemala that might contain the papers and recordB of the Intendencia. 91 Interviews with dofla Matilde Dieseldorff de Quirin, Mrs. Marfa Luisa Dieseldorff de Hempstead, Miss Rosita Dieseldorff, and don Arturo Morales de la Cruz. ^Letter: Francisco Cuellar A., Secretary, IGdG, Guatemala, to Paul 0. Mittelstadt, [Cobfin], February 5> 1920, DC, WW I Int. Pap., Correspondence. This letter contains the following reference to the act of donation: ”En el expediente No. M 2 seguido en este Despacho por dofla Matilde Cfi, se encuentra el dictamen £ providencia cue U t e ralmente dicen: *Seflor Intendente General:-Que se presente, si a bien lo tiene U P . , una copia autSntica de la partida £ partidas de la Contabilidad del Sr. Dieseldorff, en las que conste la cantidad, fecha £ condiciones de la donaci 6n , asf como cartas o_ documentos sobre el particular. -Guat. de Febrero de 1920.- Fed. Vielman.-Abogg-do Consultor. . .tTI ^Letter: Francisco Cuellar A., Secretary, IGdG, Guatemala, to [Paul 0. Mittelstadt, Cobfin], June 17, 1920, DC, WW I Int. Pap., Correspondence. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r the official reason for the intendencia*a decision is that which is expressed in the judgment. Although Dieseldorff succeeded in recovering his business in June, 1920, his troubles were only beginning. Most of his office employees, including MittelstKdt, and his plantation managers resigned about this time, or were dismissed by him for their alleged traitorous behavior during the intervention. As a consequence, he had to assemble an entirely new administrative staff, using men that he could recruit in the department. The persistence of anti-German feelings also disturbed him, and he feared confiscation of shipments if he made exports under his own name. 0 I4 The most pressing problems were financial. 95 had turned over to him a balance of $ 19 ,900.03 , The Intendencia and although he possessed several large and valuable estates, this money was the only hard eash he had on hand. Yet, he owed more than $ 1,000. in fees to the lawyer who had represented him before the Intendencia, 96 and nearly $ 15*000. to former German employees who had accumulated their 97 salaries as savings over the years.' Moreover, the man who had agreed to market the 1918/1919 crop was pressing for immediate payment of $ 5 *000., because the house had failed to deliver the coffee ^Letter: [EPD, Cob6n ] , to Hochstetter, [Dutch West Indian Line, The Hague], August 25, 1920, DC, Financial Correspondence. ^Ledger, **Libro Mayor,” 1916-1922, p. 356, DC. ^Receipt signed by Alberto Mencos (April 21, 1921), DS, "Varios” Box. 97 General inventory of EPD's properties made by the IGdG, March 31, 1919, DS, "Varios” Box. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r although It was the intervention that had prevented its doing so. In order to meet all these claims and to resume operations Dieseldorff needed to find creditors who were willing to finance him until he was back on his feet again. He calculated that he had to have $ 30 ,000., but in mid -1920 such a sum was hard to come by. In Germany the brokerage houses with which he had done business before the war were either no longer in existence or were unable to extend him any credit. German firmB in Guatemala were too short of dollar- credits to be able to make large advances. In the United States there was a depression, and money was scarce and credit expensive. Bankers were particularly reluctant to lend money for agricultural purposes, and some were charging as much as 10 % to 12 first-class promissory notes. % interest on Additionally, the United StateB coffee market was heavily oversupplied and prices were in a deep slump. 98 Late in June, 1920, the Guatemalan agents of W. R. Grace & Co. made an oral agreement to extend Dieseldorff $ 15,000. credit. W. R. Grace was a coffee brokerage house with offices in the major United States ports and with an associate firm in London. Dieseldorff opened his account by depositing the funds he had received from the Intendencia. The conditions of the contract were that Dieseldorff cover the money he borrowed with consignments of coffee from the un­ sold portion of the 1919/1920 harvest and with bank drafts received from the American and Guatemalan Mahogany Co. He was also required 98 Letter: H. P. Opfermann, W. R. Grace & Co., Guatemala, to EPD, Cobin, October 7» 1920, DC, Financial Correspondence; Letter: Nottebohm Hnos., Guatemala, to EPD, Cobin, October 1 6 , 1920, DC, Financial Correspondence. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. -I r «5a to sell the entire 1920/1921 coffee crop through the Grace firm and to pay 8 % interest on the advances (9 % after July 10, 1920), 1 % on each ninety-day draft that he wrote, and 1 1/2 % sales commission. 99 Between June and October he drew $ 69* 839*62 against his account and remitted $ 56,528.31+. The money was used to increase cash reserves, pay existing debts, and cover operating expenses .100 Dieseldorff*s association with W. R. Grace lasted only a few months. From the beginning relations were strained. He was critical of their slow crediting procedures, which cost him several days' in­ terest charges ;101 he disputed their method of calculating separately commissions and brokerage fees; which they sold his coffee; 103 102 he questioned the low price at and he became enraged when they wrote him that the coffee he had shipped was of inferior quality to the advance samples he had submitted. 10l+ Moreover, as the economic situation in the United States worsened, the company felt the pinch 99 Letters: [EPD, Coban), to W. R. Grace & Co., Guatemala, October 17, 1920, and March 15, 1921, DC, Financial Correspondence. 10°Ledger, "Libro Mayor,” 1916-1922, p. 356, DC. 101Letter: [EPD, CobSn], to W. R. Grace & Co., Guatemala, September 28, 1920, DC, Financial Correspondence; Letter: H. P. Opfermann, W. R. Grace & Co., Guatemala, to EPD, Cob£n, October 7, 1920, DC, Financial Correspondence; Letter: [EPD, Cob£n], to J. F. Ryerson, W. R. Grace & Co., Guatemala, November 25, 1920, DC, Financial Cor­ respondence. 102 Letter: [EPD, CobSn], to W. R. Grace March 22, 1921, DC, Financial Correspondence. & Co., Guaterula, 103Ibid. in ii Letter: [EPD, Cobfin], to H. P. Opfermann, W. R. Grace & Co., Guatemala, October 20, 1920, DC, Financial Correspondence. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r aB and had to start cutting hack on its commitments. In October, 1920, it informed Dieseldorff that it would honor no more drafts from him, and at the same time it requested that he make a remittance to reduce the balance of his account.10'’ The announcement could not have been more untimely. The harvest was about to commence, and suddenly Dieseldorff found himself without the credit that he had counted on having and that he absolutely needed. Having already failed in his efforts to secure an additional advance from the Nottebohm firm, he was not certain that he could find other backers on such short notice.10*’ He entreated the Grace officials not to renege on their promise, and he pointed out that their figures for the outstanding balance of his account were nearly $ 20,000. too high since they had not yet posted the Intendencia check. He even offered a mortgage on Chajcar as security. 107 The company stuck to its decision, and Dieseldorff finally requested that it release him from his part of the agreement so as that he might be able to negotiate arrangements with another house. 106 The Grace officials acquiesced and authorized him to sell his coffee through 10 ^Letters: H. P. Opfermann, W. R. Grace & Co., Guatemala, to EPD, Cobfin, October 7» H » and lA, 1920, DC, Financial Correspondence. 10^Letter: [EPD, Cobfin], to Nottebohm Hnos., Guatemala, September 29» 1920, DC, Financial Correspondence; Letter: Nottebohm Hnos., Guatemala, to EPD, Coban, October l 6 , 1920, DC, Financial Cor­ respondence. 107 Letters: [EPD, CobSn], to W. R. Grace & Co., Guatemala, October 13 and 17, 1920, DC, Financial Correspondence. •j a Q Letters: [EPD, Coban], to W. R. Grace & Co., Guatemala, October 20, and November 3> 1920, DC, Financial Correspondence. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 422I other brokers and to use the revenues from San Diego-Yalpemech in whatever way he wished. Dieseldorff was able to persuade the banking house of Schlubach, Sapper & Co. of Guatemala City to give him credit. He had done business with the firm before the war and knew several of the officers. The company allowed him to open a revolving account with a ceiling of $ 15 ,000., with the understanding that he not draw more than $ 5 ,000 . a month. The money was to be repaid no later than June 30, 1921. In order to do this Dieseldorff kr'W that he would have to consign most of his coffee to Schlubach, v> ch presented a problem since he already owed the Grace nearly $ lU,000.'*"^ Reluctantly, W. R. Grace allowed him to defer payments to them until July 1, 1921. 112 After that date he made several large coffee shipments to the firm, and finally closed his account in January, 1922. 113 Schlubach, Sapper & Co. sold Dieseldorff’s coffee through its affiliate firms in London and Hamburg. His dealings with this company were far more cordial than those with the Grace, perhaps because the Schlubach firm was headed by Germans. about credit restrictions. Also Schlubach was more lenient Several times during the next two years ^^Telegram: W. R. Grace & Co., Guatemala, to EPD, Coban, November 8 , 1920, DC, Financial Correspondence. 110Letters: [EPD, CobSn], to Schlubach, Sapper & Co., Guate­ mala, October 22, and November 3, 1920, DC, Financial Correspondence. ■^■^Ledger, "Libro Mayor," 1916-1922, p. 356, DC. 112Letter: [EPD, Coban], to J. F. Ryerson, W. R. Grace & Co., Guatemala, November 25, 1920, DC, Financial Correspondence. ■^Ledger, "Libro Mayor," 1916-1922, pp. 356-357, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 4231 Dieseldorff was permitted to exceed the $ 5,000. limit, and in August and September, 1921, his debit balance was more than $ 30,000. 114 Dieseldorff continued to use the brokerage facilities of the house until about 1930. Following the intervention, Dieseldorff worked hard to re­ assert his control over the business. took place. During that time several changes As an economy measure he closed down the textile mill at Chichochoc and the mesbe hospital in Berlin. By the end of the 1921/1922 harvest season the plantation complex was back in normal operation, and Dieseldorff believed that he could safely absent him­ self from Guatemala for a few months. In March, 1922, he and his daughter Matilde left Coban to visit the family in Germany. The 1920's were prosperous times for Dieseldorff. The creation of the Reich Mark as the new official currency in Germany, and of the Quetzal in Guatemala, had stabilized the monetary situation in both countries. At the same time Dieseldorff's coffee exports rose to nearly 800,000 pounds a year, and market prices were good. For several years the future never seemed brighter, but the boom was short-lived. The economic depression of 1929 knocked the bottom out of the market for coffee and prices for all grades dwindled to a fraction of the earlier highs. Brazil, which consistently produced immense surpluses of filler coffees, was perhaps the nation most seriously affected, 11^Ibid., pp. 385, 419-420, 450-452, 480, DC. 115E1 Norte, Afio XI, No. 563, March 18, 1922. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r but producers in Guatemala were also hurt. In an effort to counter the effects of the depression, Diesel­ dorff instituted measures to reduce operating expenses. He began by- raising corn production, and later by increasing the tarea, the daily work assignment of the mozos.^1^ He also ordered the administrators to take a minutely detailed inventory of all equipment, coffee bags, store supplies, and buildings on the plantations, and then to practice utmost surveillance to avert losses by theft or damage. As the slump dragged on, Dieseldorff was forced to curtail spending even further by lowering the wages of both the Indian laborers and the employees. 117 In addition to belt tightening at home, Dieseldorff urged the government of Guatemala to take steps to improve the situation of the nation's coffee planters. Government assistance, he was certain, was necessary in order that the finqueros might be able to lower production costs. He proposed that the government reduce the coffee export tariff, which was Q 2.00 per hundred pounds, ll8 and make efforts to have the steamship lines cut their freight rates. He also suggested that the government reduce the established daily wage rate for road work. This measure, Dieseldorff believed, would not only cut government expenditures, but it would enable coffee producers to decrease the Letter: EPD, Coban, to the Ministro de Agricultura Manuel M. Herrera, Guatemala, February h, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 926-927, DC. 117 Letter: EPD, Cob£n, to Manuel Cordero, Panzal, October 10, 1932, Letterbook, "Asuntos ante las autoridades," No. 2, p. 972, DC; Letter: EPD, Cob£n, to the administrators of his fincas, May 1, 1935, DC, Finca Correspondence. Leyes de Guatemala. Vol. XLVIII, p. 3^2. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 425I the salaries of mozos on the fincas without running the risk of losing them."1"1^ Most importantly, Dieseldorff was convinced that a multi­ lateral agreement between the coffee producing countries of the world was essential for the recovery of the industry. Many of the nation's planters were against Guatemala's becoming a part of a proposed coffee union, because, they argued, it was the cheap grades that were in overabundance, not the more expensive coffees grown in Guatemala. In March, 1930, representatives of the coffee producers of Guatemala met in a congress to consider the question of Joining an international union. Illness prevented Dieseldorff's attendance, but he let his ideas be known by letters he wrote to the organization. It was necessary, he stated, to balance world production with consumption. Although the industry should initiate efforts to increase consumption, a lasting balance could only be achieved by reducing production and imposing export quotas. The cooperation of all the countries was needed, for the price drop of cheap coffee affected the other grades as well. Guatemala, he pointed out, could learn from the sad experience of the tea planters in the Dutch and British East Indies, all of whom had suffered great losses, because the negative attitude of the growers of the high-quality teas wrecked plans for an industry­ wide agreement to lower production. Letter: EPD, Coban, to the Ministro de Agricultura Manuel M. Herrera, Guatemala, January 3, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 893-89^, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 4261 Dieseldorff also proposed a tariff agreement between the coffee producing nations whereby they would act as a unit to manipulate rates on imports. Charges could be established by all on a sliding scale, in relation to the duty the country of origin imposed on coffee. Concerted action could force countries with high tariffs, such as Germany which charged $ .16 per pound of coffee, to lower their rates. 120 Dieseldorff*s plans were not effected. they might still not have improved conditions. Even if they had been Nevertheless, he tried to view the broad aspects of the economic problems that confronted the coffee industry, and communicated his ideas on the matter to the government. During the early 1930's Dieseldorff marketed about three fourths of his coffee in Germany, but after about 1935 the economic policies of the German government made it disadvantageous for him to continue trading in that country. The Minister of Economics, Dr. Hjfl.imB.-r Schacht, in order to revive the German economy and ko conserve exchange resources, had created an elaborate network of controls over German foreign exchange transactions, as well as imports and exports. Schacht put Germany's foreign trade on a barter basis by establishing a system of paying for imports in "blocked" Marks (called A.S.K.I-Marks). These Marks could only be spent for the purchase of German goods, which 120 Letters: EPD, Cob£n, to the Confederacion de las Asociaciones Agrfcolas de la Republica, Guatemala, March 19 and 28, 1930, Letterbook, "Asuntos ante las autoridades," No. 1, pp. 970, 978-979> DC; Letter: EPD, CobSn, to President Lazaro Chac6n, Guatemala, February 28, 1930, Letter­ book, "Asuntos ante las autoridades," No. 1, p. 9^7, DC; Letter: EPD, CobSn, to the Ministro de Relaciones Exteriores, Guatemala, June 2, 1920, Letterbook, "Asuntos ante las autoridades," No. 2, pp. 2U-26, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r I 427 were subject to rigid price fixing regulations. The blocked Marks were of little use to Dieseldorff, who was then importing few manufactured articles from Germany. Soon he found that he was accumulating A.S.K.I.-Mark credits that he could not possibly spend. He complained about the problem to his brokers, but there was nothing they could do to secure payment in Reich Marks for his coffee. 121 As a result, Dieseldorff sharply curtailed his shipments to Germany and instead began to look for new outlets. one half of the 1935/1936 harvest to Germany, third of the 1936/1937 one .123 122 He consigned only and less than one By 1937/1938 the firm's coffee exports to Germany had dropped to 1*7,400 pounds, less than k % of the total. 12 The remainder he sold in Great Britain, Austria, Czechoslovakia, Switzerland, The Netherlands, and Poland, and in 1936 he started selling larger amounts in the United States. By the time he turned over the business to his son Willi, Germany had ceased to be an im­ portant market for Dieseldorff coffee. After Willi Dieseldorff assumed control of the business, he 121 Letters: EPD, Cob£n, to Fredk Moller Sohne, Bremen, March 25, June 3, October 20, November 9 and 18, and December 16 , 1936, January 25, March 22, April 16, and August 10, 1937, Letterbook, "Fredk Moller Sohne,” pp. 152, 188, 282, 295, 299, 311, 340, 391, 4l8, 501, DC. 122Record books, "Consignacion cosecha,” No. 1, pp. 76- 83 , No 2, pp. 71-73, 75-77, 79-81, DC. 123Ibid., No. 1, pp. 84-90, No. 2, pp. 83-86 , 88-99, DC. 12^rbid., No. 1, p. 91, No. 2, pp. 100-113, 115-118, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r accelerated the trend of marketing coffee, not in Europe, but in the United States. Undoubtedly he recognized the threat that political and diplomatic developments on the Continent posed to trade, and he had the foresight to make arrangements in the United States. He availed himself of the services of a personal friend, Donald D. Gordon, a commission merchant in Kansas City, who was the coffee buying agent for Folger's and for the Griffin Grocery Co.^2^ the 1937/1938 harvest; another lU % Gordon sold 5** % of the following year he handled 78 %, and was sold through E. A. -Johnson & Co. of San Francisco and Seattle.^2^ Willi Dieseldorff shipped the entire 1939/19^*0 crop to the United States, except for 1.6 %, which he marketed in Great Britain and Switzerland. 128 Thereafter, until the end of the war, the Dieseldorff coffee was sold in the United States. Willi Dieseldorff's acumen in making marketing agreements in the United States, combined with advance precautionary measures that he took in Guatemala, served him well during the war years. Both he and his father were opposed to the Nazi government, but the elder Dieseldorff had been circumspect in his statements for fear of re­ prisals against relatives who were still living in Ger ~iany. was more vocal. Willi He had studied in London and had lived in England ^^Correspondence with Donald D. Gordon, 1937-1939, DC, Financial Correspondence. Record books, "Consignacion cosecha," No. 1, p. 91> No. 2, pp. 100-113, 115-118, DC. 127Ibid., No. 1, pp. 92-101, No. 2, pp. 119-120, 121*, 126, 129, 131, DC. 128Ibid., No. 1, pp. 105-116, 118-119, No. 2, pp. 125, 130, DC. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r for nearly seven years, and he was a strong adherent of the democratic principle. No doubt he also recalled his father’s experience with intervention during World War I. He knew that a similar, if not worse, fate would befall him if another war broke out and the United States Joined the hostilities, for there were strong pro-Nazi enclaves in the Alta Verapaz, particularly among the younger men who had recently come 129 from Germany. Almost immediately, Willi took steps to absolve himself of any connection with the Nazi regime. Although of military age, he refused to Join the military drill units formed by his countrymen, and he steadfastly avoided contact with persons of known Nazi senti­ ments. In public he frequently made disparaging remarks about Hitler and the men in power, and he dismissed from his employ all persons who supported the German government. 130 At the same time, he openly admitted being of part-Jewish ancestry, for the first Dieseldorff, his great-grandfather, had been born Salomon Lazarus Levy, but assumed the name Johann Heinrich Dieseldorff after being baptized in the Evangelical Church in 1820, 131 prior to his remarriage in a religious ceremony to Dorothea Wilhelmina Hopfer, a Gentile. 132 Willi Dieseldorff Guillermo Naflez Falcon,*German Contributions to the Economic Development of the Alta Vera Paz of Guatemala, l865-1900H (Unpublished M. A. Thesis, Tulane University, New Orleans, 1961), pp. 8k-85-a. 130 Interview with don Arturo Morales de la Cruz. ■^Certified copy, dated November 20, 1835, of extract from the baptismal records of St. Johannis Church, Hamburg (August 2 k , 1820' DC, Family Documents. ^■^^Marriage certificate of Johann Heinrich Dieseldorff and Dorothea Wilhelmina Hopfer (September 18, 1820), DC, Family Documents. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 430l was denounced In Germany for all these actions, and as a result the government revoked his passport and stripped him of his German citizen­ ship. Thus, when the United States entered the war in 19^1. Willi was able to prove to the satisfaction of the United States Department of State that he was not an enemy alien. Consequently, unlike most of the other Germans in the Alta Verapaz, he was not among those named on the Black List. Furthermore, the United States government granted him special sanction to trade freely and conduct business without restriction with any Worth American firm. The Guatemalan government subsequently followed suit and gave him similar license. 133 132* . On December 11, 19**1» Guatemala declared war on Germany. Soon afterwards, under the Ley de Emergencia, the government began to confiscate the properties of German nationals and to expel German males from the country or to send them to concentration camps in the United States. Max Quirin, Willi's brother-in-law, although married to a Guatemalan, was sent to a camp in San Antonio, Texas. 135 The government's move effectively broke the economic power of the Germans in the Alta Verapaz, because very few of the plantations have ever been returned. Willi Dieseldorff's business was also threatened, but owing to his anti-German stand before the war and the trade license he Copy of license granted to W. E. Dieseldorff by the Secretaria de Relaciones Exteriores (January 28, 19^2), cited in: Land sale document for lot registered as Finca Ul9» Folio 238, Libro 22, A V (May 21, 19^3), DS, CubilgUitz Box. 1^^Leves der Gnfl.tPTnB.ln.- Vol. LX, p. U7'^'’interview with dofla Matilde Dieseldorff de Quirin. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 43H received from the United States government, he was able to escape intervention. He was one of the very few who did. During the war, and in the years following, Willi operated the business in very much the same personalistlc way as his father had. The changes he made were minor. For example he sold PalJ&, Panzal, and El Salto, which had been used as warehouses and grazing lands in the days when coffee was shipped via the Ferrocarrll Verapaz, because the properties had outlived their original functions. Sachamach, which had always been used by the family for mllpa-land, was turned over to the government under the agricultural reform law *1 o z T of 1952, and the land was parcelled out to the Indian living on it. Although there were still periodic market and agricultural crises, in general the business continued to prosper. Throughout his life Willie Dieseldorff was greatly concerned with the welfare of the Indians of the department. To improve health facilities for his colonos, he established an infirmary at Chajcar and Sechaib. In Coban, he endowed the town hospital, which served Indians as well as ladinos, 137 and for many years he headed the annual Red Cross drive to raise funds in the Alta Verapaz. Many of the residents of the department remember him well for his kindness and generosity. In December, 1959, Willi Dieseldorff died suddenly at the age of forty-six. 1^6 Tragically, less than two years later his wife Interview with don Arturo Morales de la Cruz. ^ ^ G . Alem£n BolafSos, Vida agricola de Guatemala (Guatemala, 19lt6 ), p. 2k . L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r uiii Dorothea, whom he had married in September, 19^5, also died. The Dieseldorffs left three minor daughters, Patrice, Dorothea Anne, and Priscilla Stephanie. The girls' maternal aunt, Mrs. Fred Holmsten of Long Island, New York, was named executrix of the estate in her sister's will. She brought her three nieces to the United States to live with her. Then she and her sister, Mrs. Billie Cox of Shreveport, employed a professional administrator to run the Dieseldorff estate. After about two years the two ladies reached the conclusion that the business could not be operated satisfactorily in this manner. In October, 1963, they decided that in order to protect the girls' interests, Mrs. Cox should move to Cobfin and take over the management of the firm until the girls were old enough to handle the responsibility themselves. Mrs. Cox, at the time of writing, is still administrator of the Dieseldorff estate while her nieces complete their education. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r 1 CHAPTER XI ERWIN PAUL DIESELDORFF AND GERMAN SETTLEMENT IN THE ALTA VERAPAZ: A RETROSPECTIVE VIEW Time and again during the nineteenth century, the political leaders of the nations of Latin America looked to foreign settlement by white Europeans as a panacea, which would cure the ills their countries had inherited from the Spanish colonial regime and which had continued to afflict them after independence. In Guatemala two of the leading proponents of the idea of rapid national development through immigration were Mariano Galvez in the l630's and Justo Rufino Barrios in the 1870's and the oarly l 88o fs. These men enacted legal instruments designed to attract settlers to their country. Early colonization efforts were directed toward corporate undertak­ ings, but the failure of these ventures influenced the thinking of later leaders, such as Barrios. Convinced that projects involving the sudden mass transfer of populations were impracticable, Barrios favored instead spontaneous immigration on an individual basis, and believed that this method would have more lasting results. Barrios succeeded where Galvez had failed. formed process foreigners settled in Guatemala. Through an in­ Of those who came, Germans contributed to the increase of commercial activity and to the development of the coffee industry in the highlands, and North Americans to the completion of the Ferrocarril del Norte and to the development of the banana industry in the Motagua Valley. But despite the growth of commerce and agriculture, immigration did not create L V33 R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. _I r the broad-scale prosperity that its advocates had anticipated. Pov­ erty and ignorance still existed as glaring reminders of this defi­ ciency, and indeed in the highland areas an old monoculture had been replaced by a new one, which was to a great degree dominated by the foreigners who had developed it. Yet well into the twentieth century Guatemalan officials continued to use uuc Ibcunxques of their prede­ cessors to attack the developmental problems of their nation, clamor­ ing for immigrants and offering many of the same inducements as be­ fore. In many respects the Guatemalan experience was not unique. The total number of Germans who settled in Guatemala was small, but the influence of the group was disproportionate to its size. As a result of their activities, Germans by about 1900 had come to dominate the coffee industry on the Pacific coast, and to monopo­ lize the coffee industry as well as retail merchandising in the Alta Verapaz. For a number of years most Guatemalans remained oblivious to the significance of the situation, probably because the presence of a relatively small group of Germans living among Guatemalans was less obvious and dramatic than that of a giant corporation such as the United Fruit Company. Many observed that the number of German- owned fincas and commercial houses in Guatemala had risen sharply, and that coffee exports and business in general had increased, but they took these developments to be signs of a growing economic pros­ perity. They failed, however, to recognize who were the chief bene­ ficiaries of the changes. Slowly the realization began to dawn that a large segment of the nation's economy was controlled by an unassimilated group of L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r k & ] foreigners. By the late 1930's the Guatemalan government and many of its citizens had become convinced that the Germans were exploiting the resources of the country and that as long as control of the cof­ fee industry remained in their hands, Guatemala would realize little economic benefit from the fruits of its own soil. Consequently when World War II began, the Nazi sentiments of some of the Germans led the government to believe that the group posed a threat to the nation and gave it a pretext to act against the whole community. Most German-owned lands were confiscated, German nationals were imprisoned or expelled, and thus German power was broken. Po­ litical writers justified the government's actions, in what amounted to apologia after the fact, by charging that the Germans had been obdurate despoilers of the nation's patrimony, who had taken much and given little, and that they had achieved their position by clandes­ tine, extralegal means. Such criticisms, which bore a marked re­ semblance to those made by anti-German writers in Europe after World War I, contained enough of an element of truth that they became firmly rooted in the minds of many Guatemalans. Later, in 1956, many of the old charges against the Germans were repeated to justify once more the government's action when Guatemala in the decree that ended the state of war with Germany also nationalized the German-owned proper­ ties confiscated during World War II without compensation to the former owners,^- ^Guatemala. Decreto Nfimero 1127. Se declare concluldo el estado de guerra que existio con Alemania desde el 11 de diciembre de 19Vl (Guatemala, 1956), pp. 1-2U. L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Ervin Dieseldorff was one of the Germans who was attracted to Guatemala as a place to settle, to invest capital, end to work. His enterprise in that country encompassed coffee production and related operations as veil as retail merchandising, the areas over vhich the Germans exercised the greatest control. His career, vhich paralleled those of other Germans, is representative of the activities of his countrymen in Guatemala, and therefore, examined as a case study, it says something about the process by vhich German economic pover de­ veloped in the Alta Verapaz and in other parts of Guatemala. German settlement in the Alta Verapaz brought a permanent change in the economic life of the department. When the Germans be­ gan to trickle into the department, it vas an isolated area vith only incipient agricultural and commercial life. the situation. German activity altered Import houses established by Germans brought a steady influx of European goods into the department, but more importantly, Germans directed their efforts to coffee production and developed a nascent industry into a major one. Coffee became the most important agricultural product and the principal export of the Alta Verapaz; upon it the economic life of the department came to depend. The chief contributions of the Germans to the development of the coffee industry vere vigor and industry, technical skills, market outlets, and financial resources. With capital and credit obtained from firms in Guatemala, Great Britain, and Germany to augment their ovn resources, the settlers vere able to purchase the best coffee lands available and to buy coffee produced by Guatemalans and Indians. Their knovledge of scientific agriculture, plant diseases, and soil L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r U 3Tl chemistry enabled them to increase the yield per tree and to improve the quality of the product. Their mechanical knowledge and skills they applied to the manufacture and improvement of machines that would effectively clean and dry the beans and maximize their value. Com­ mercial and family ties with German and other European marketing firms made it possible to secure both shipping and distribution facilities for the coffee they exported. The Germans also took it upon them­ selves to provide certain elements of an economic infrastructure by introducing carrier vehicles and importing draft and pack animals, by undertaking to open roads and mule tracks from Coban into the remote areas of the department, and by attempting to improve transportation facilities on the Coban-Panzos-Livingston trunk line out of the Verapaz. Thus the Germans successfully established themselves in the Alta Verapaz, and through their hard work, talent, frugality, inge­ nuity, and capital resources were able to develop the legal and natural advantages of the department. The German activity in the Alta Verapaz left the control of the economy of the region in the hands of foreigners. Through the acquisition of land from Indians, from ladinos, and from the govern­ ment, the Germans became the largest landowners in the department. The expansion of cultivated lands and the application of scientific principles enabled them to become the leading coffee producers. By initiating transportation improvements they gained control over the shipping and distribution of the crop. Furthermore, the Germans' European connections, which native producers lacked, helped them to monopolize the marketing of coffee. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r The changes that the Germans brought about in the Alta Verapaz had far reaching consequences. The department, as a result of their efforts, developed a profitable monocultural economy, based on coffee, vhich was produced, exported, and marketed principally by foreigners. The growth of the coffee industry affected the lives of the native residents of the area. The Indians of the department vere dravn into the economic system as laborers or as small-scale producers. For the ladinos, discovery of an export commodity gave them the opportunity to realize profits from the lands they ovned. Emulating the example of the Germans, they extended coffee cultivations, but vithout con­ nections vith European markets, they found it convenient, if not es­ sential, to sell their crops through German agents. The Germans' efforts to improve transportation facilities betveen Coban and Livingston, in addition to having an economic effect, had certain unpremeditated social and political implications. At the time vork began on the Coban-Panzos road in 1870, the Coban-Livingston route vas the only feasible vay in or out of the department. Once committed to this line, it vas impossible to change, because the cost of opening an entirely nev road, sixty-five miles long, to connect vith the El Rancho railroad station vould have been prohibitive for a small group of private individuals, vorking vithout financial assis­ tance from the government, to bear alone. Concentration of efforts on the Coban-Livingston route rather than a road to the capital, hovever, kept the Alta Verapaz isolated from the rest of the country until the late 1930's, and consequently the department's strongest ties vere vith Europe, not vith Guatemala. This peculiar situation L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r undoubtedly contributed greatly to the tenacious existence of German separateness and German national ties, for vhich the Germans in the Verapaz paid during World War II. It vas inevitable that the economic power of the Germans and their aloofness from Guatemalan society should arouse resentment among the native-born Guatemalans in the Alta Verapaz. As early as the l890's there vere muttered complaints about the growing German m o n o p o l y a n d in 1892 prominent ladinos in the department established the short-lived Sociedad Agrlcola del Norte for the express purpose of giving impetus to agricultural development and transportation im3 provements by Guatemalans as a counterpoise to German innovations. By the 1930's, criticism against the Germans had become more vocal in the department, as veil as in other parts of Guatemala, and it reached a peak in the 19Uo's, after expropriation of German properties. Few, if any, understood the process by vhich Germans had attained their position, and the generalizations— some vitvyerative, others mild— that vere used to explain the rise of German dominance in the country, while admitting the German's diligence and industry, tended to per­ petuate a number of misconceptions about the nature of German activity. Some Guatemalans explained the inception and continued exis­ tence of the German colony in their country in a vague, Jejune fashion as some sort of aggrandizement plot conceived by the German o Letter: EPD, CCobanl, to Vicente Polanco, San Crist8bal, July 18, 1898, Letterbook, "Varias Cartas," No. 1, pp. 9^-95* DC. El Porvenir (Coban, AV, Guatemala), Ano 5, No. 191*, August 13, 1893. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r government. The persistence of national ties, the militant activi­ ties of the Nazi element in centers of German population such as Cohan, and visits there by Nazi officials gave credence to this be­ lief. Yet there is not a shard of evidence to indicate that German settlement in the Alta Verapaz, or in any other part of Guatemala, was anything but a voluntary, informal phenomenon. In Cobin, until the 1930's the office of German Vice-Consul was occupied by prominent men from the community, such as Franz Sarg, Hans von Turkheim, and k Richard Sapper, who were conspicuous for their political inactivity. In Guatemala City the German Ministers Plenipotentiary did little more than report on conditions in the country. As a rule, they de­ clined to become involved in disputes between German nationals and Guatemalan government officials, or if they acted, nought the assis­ tance of the United States diplomatic representatives in resolving such matters.'* Dieseldorff and his countrymen, recognizing that they could expect little support from their government, in most instances dealt directly with Guatemalan officials when problems arose. Another commonly accepted concept is that German financiers, ^Deutschtum in der Alta Verapaz (Stuttgart. 1938), Tables II, III, and IV, pp. 97-105. Sarg's wife was English, and he himself had studied in Great Britain and had lived there a number of years; von Turkheim had also resided in Britain for some time and established himself in the Alta Verapaz with financial backing from London bank­ ers; Sapper's wife, although a German national, resided in Switzer­ land, and he spent about six months out of every year in that country. "’Guillermo Nafiez Falcon,**The Activities of the German Ministers Plenipotentiary in Guatemala, 1876-191^*(Unpublished seminar paper, Tulane University, New Orleans, 1962), pp. 18-20, 23. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r i^n eager to reap large profits from foreign investments and new export markets, generously provided the backing their countrymen needed to establish themselves in Guatemala and to expend their operations there. This was not entirely true. German firms and brokers extended a considerable amount of money, in the form of long-term loans and short-term credits, to German merchants and planters in the Alta Verapaz, for instance, but London banking houses, and to a lesser ex­ tent ones in Mew York, also invested in German-owned agricultural and commercial enterprises in the department. Equally important, the Verapaz Germans, however strong their national sentiments may have been, were first of all businessmen. Dieseldorff, as an example, sold his coffee in either London or Hamburg, according to whichever market was offering higher prices. When market conditions in Germany were unfavorable, he did not hesi­ tate to consign his coffee elsewhere. Furthermore, Germany enjoyed only limited export trade bene­ fits from the presence of its nationals in Guatemala. A large part of the dry goods, hardware, agricultural equipment, and other manu­ factured articles that merchants and finqueros imported into the Alta Verapaz came from the United States or from Great Britain, rather than from Germany .0 With Germany, Guatemala maintained a favorable ^A recent study has revealed that a somewhat similar situa­ tion developed in Venezuela, where the Germans during the latter part of the nineteenth century gradually replaced the British as the lead­ ing merchants in the country. British manufactures, however, con­ tinued to dominate the import market, because British goods, particu­ larly textiles, vere often cheaper than items of the same quality made in Germany. German merchants in Venezuela, like their counter­ parts in Guatemala, were more interested in profits than in L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r balance of trade, because the value of the coffee Guatemala sold In Germany was greater than the value of goods It Imported from that country. Some have alleged that German economic power developed in Guatemala, because the Germans enjoyed certain unique privileges. The privileged position of the Germans has been to some extent over­ rated. The 1887 trade treaty, which remained in effect until 1915, granted preferential status and broad guarantees to Germans residing in Guatemala, but the wording of the agreement was sufficientlyvague as to be dead letter, and in many respects the treaty merely spelled out such matters as exemption from military duty and public office, which were normally extended to all foreigners. The nationality clause in the treaty certainly contributed to German separateness, but it is doubtful that it had much effect on German business opera­ tions in Guatemala. The treaty did establish bases for regular com­ mercial relations between the two countries, and this may have been its most important accomplishment, because it facilitated trade and the flow of investment capital. In addition to privileges coni.uj.ned xn Germans enjoyed a few one others, which applied to all 1007 treaty,the foreigners.These were relatively minor and included a ten-year immunity from most fis­ cal imposts for immigrants who settled on terrenos baldios, and at supporting German industry. As businessmen, their economic national­ ism was diluted, and they bought for price not for country of origin. George Edmund Carl,"British Commercial Interest in Venezuela during the Nineteenth Century1*(Unpublished Ph.D. Dissertation, Tulane Uni­ versity, New Orleans, 1968), pp. li»l-l45. L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r the time of the settler's arrival in the country duty-free import of personal property, agricultural tools, and other articles. For the Hermans who settled in Guatemala the labor and land lavs of the coun­ try, which created a favorable situation for persons with capital and entrepreneurial ability, but which applied to all residents, were probably more useful than the privileges granted to them. Another charge frequently made about the Germans is that they amassed vast amounts of land at the expense of the native-born citi­ zens of Guatemala. A number of writers, for example, have stated that Germans obtained at low interest rates loans from banking houses in Hamburg and Bremen and then re-lent the money at usurious rates to Guatemalan nationals, who were in desperate need of capital for expan­ sion and improvement of their coffee plantations. The loans were secured by mortgages on the borrower's land, and thus Guatemalan fincas passed into German hands when the owners were unable to meet the demands of their creditors.^ Available evidence about land acquisition in the Alta Verapaz controverts this argument. Dieseldorff, for example, paid interest rates of 6 % or more on money he borrowed from German brokers, and frequently, when advancing money on coffee futures, did not charge the recipient interest, or at the most 1 % a month. Moreover, plant­ ers in the department did not secure credit exclusively from German Conflicto en de las Listas Negras," 19^1)* p« 10; Valentin economica de Guatemala la exportacion del caf£ ante la proclamacion Revista de la economia nacional. V (October, Solorzano Fernandez. Historia de la evolucion (Mexico. 19^7), P» 317* L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r sources. Dieseldorff borrowed money In Guatemala from the banco Comer- clal de Guatemala and the Banco Agricola Hipotecario, in London from RBeing Bros., and in Hamburg from Haller, SBhle & Co. On several oc­ casions mortgaged fincas belonging to Guatemalans were foreclosed by ladino creditors. Nor were the Guatemalans the only ones vho for­ feited their properties as a result of mortgage foreclosures, because several Germans, such as Hans von Ttirkheim, also lost their land j.n this manner. During the period that the Germans were active in the Alta Verapas many Indians in the department lost their traditional lands. Consequently, some nationalist writers have depicted them as the Q wretched victims of German capitalists. roneous in several respects. This simplistic view is er­ A major force working to the detriment of the Indians was the Guatemalan land laws, in particular those governing the disposition of terrenos baldlos. One of the purposes of these laws was to give Indians legal titles to the technically un­ claimed land that they had occupied for centuries. The practice of the laws belied their avowed purpose, for as administered by Guate­ malan authorities, they tended to deprive the Indians of their tradi­ tional lands and to concentrate these in the hands of persons of European descent, who saw in the Indians a ready-made resident labor force. Lacking legal knowledge, some Indian communities failed to Q Miguel Angel Asturias, Viento fuerte. 3rd ed. (Buenos Aires, 1962). One of the major themes that Asturias explores in this novel is the force exerted by the United States-owned banana companies operating on the north coast of Guatemala to deprive Indians and other small landholders of their properties and to coerce them into the economic sphere of the company. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r apply for title, and outaidera subsequently denounced and purchased the land. In other instances the Indians found themselves outbidden, because the lav decreed that terrenos baldlos be sold at public auction. Such was the case with the residents of Chiochal, whose land Dieaeldorff bought. The land lavs also served to tie the Indians to the land, because the residents of terrenos baldlos re­ mained sb colonos after the land was sold. A considerable number of Indian communities, nonetheless, were able to obtain legal title to their lands. Subsequently, indi­ vidual residents began selling their small plots to ladinoB and to other persons. Most likely there were cases of coercion, but to the Indian, whose economic life was on the barter basis, money was a great, and often irresistible, temptation. For this reason the prac­ tice of purchasing land from Indian landholders became widespread, particularly in the region east of San Pedro Carcha that produced high-quality coffee, and both Guatemalans and Germans, rich and poor alike, were active as buyers. The charge that the Germans in the Alta Verapaz acquired land by means that were of questionable legality had some basis in fact, but ladinos were equally as guilty of this, and all transactions of this nature occurred with at least tacit approval of government offi­ cials. It was possible to buy terrenos baldlos, such as Chiachal, which had Indians living on the land; it was possible to acquire grants to terrenos baldlos, such as San Diego-Yalpemech, which were larger than the law allowed, through Indian mozos or other persons acting as intermediaries; it was possible to force an Indian L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r community, such as Pocolfc, to relinquish sections of its land, be­ cause the occupants, perhaps unwittingly, had sold their pro indivjso rights to an outsider. It is true that Dieseldorff was a party to some legal chicanery in acquiring these three properties, but the transactions were mentioned only as an example of a commonplace oc­ currence . In Guatemalan society land acquisition methods of this nature vent almost without notice, but not because there was a deliberate attempt to keep them secret, The purchase of property required a notarized public document, inscription of the transaction and filing of copies of all related documents in the national land registry, and payment of a sales tax by the new owner. Yet neither the government nor its citizens raised a voice to protest those transactions that in retrospect appear to be illegal or unethical for the simple reason that they did not consider them out of the ordinary. fact, doing the same thing themselves. They were, in It is scarcely a whitewash effort to conclude that what Dieseldorff and others did was made pos­ sible by the permissive attitude of government officials to infrac­ tions of the letter or the spirit of the law, and by the connivance of Guatemalan nationals to use deceit to evade the law on technical grounds. Nevertheless, despite the incidence of occasional irregu­ larities in land acquisition, evidence shows that Dieseldorff, the other Germans in the department, and Guatemalans all obtained the pre­ ponderance of their holdings in more or less the same fashion by ordinary and legitimate means. The Germans have often been depicted by writers of many L R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r i^Tl nationalities as avaricious, callous exploiters of underdeveloped countries. In areas such as the Alta Verapaz, the economic influence of the Germans to a great degree reinforced this opinion. Although a large part of the profits from the Verapaz coffee industry accrued to the German landowners, they were not exploiters in the strictest sense. Coffee was not an easily exploitable commodity. Its suc­ cessful cultivation, especially under some of the conditions that existed in the Verapaz, demanded a heavy investment of time and money and effort. Furthermore, the Germans' interest in improving cultiva­ tion techniques and preserving soil fertility, their paternalism towards Indian laborers, their financial and labor investments to improve transportation facilities, and their long careers in Guate­ mala would indicate that their aim was not solely exploitation. In addition to charges made agairmt the Germans, in the Alta Verapaz a myth has persisted about the extent of their wealth with the corollary assumption that members of this foreign group, as a whole, were enormously rich. In reality, there were at the most half a dozen Germans in the department whose land holdings and coffee pro­ duction came even close to matching that of the Sappers and of Dieseldorff. Many of the Germans in the Verapaz were merely employ­ ees in the offices or on the plantations of their countrymen, and they owned little or no land. Of the German property holders, most of them, like the majority of the ladinc finqueros, owned not more than one or two fincas, and these were often of relatively small size. For example, a survey taken by the Jefe Politico of the Alta Verapaz during the 1930's revealed that there were 157 coffee plantations in L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r the department, eighty of which belonged to foreigners. Of the total number, 120 (76 .1+% ) produced less than 50,000 pounds of coffee a year. Only nineteen fincas produced more than 100,000 pounds a year, 9 and at least seven of these belonged to Erwin Dieseldorff. Even the largest of the German landowners in the Alta Verapaz, such as Erwin Dieseldorff and the Sappers, were not as wealthy as most people supposed them to be. Unlike other tropical areas of the globe, multi-million dollar fortunes were not made in the Alta Verapaz, even by men such as Dieseldorff who had the personal quali­ ties and virtually all the financial advantages one could ask for. Dieseldorff1s vast land holdings, according to his records, were worth slightly more than purposes at about $ 150 ,000. , ^ and were assessed for tax $ 100,000 .11 At the time of his retirement he privately estimated his net worth to be $ 250,000. 12 His annual gross income from coffee sales averaged about $ 250 ,000. during years when crops were good and market prices were high, 13 but during the llj depression revenues dropped to about $ 100,000. 9 * Juan Antonio Alvarado, Tratado de caficulture practica. 2 vols. (Guatemala, 1935-1936), Vol. II, p. 571. ^ R e c o r d book, "Inventarios ,11 1927-1931, pp. 1-2, DC. •^Letter: EPD, Coban, to the Administrador de Rentas, Coban, May 22, 1928, Letterbook, "Asuntos ante las autoridades," Ho. 1, pp. 1*67-1*68, DC. ■^'Experencia Docet," p. C673, DC. 13Ledger, "Libro Mayor,” 1927-1929, pp. 28-36, DC; ibid., 1937-19U1, pp. 83-95, DC. l 2*Ibid.. 1935-1937, pp. 61*-70, DC. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Ul*9l The net profits that Dieseldorff realized from his coffee business cannot be readily determined, owing largely to the arcana of his bookkeeping system. His overhead and operating costs, however, were such that they cut deeply into the gross amount. He made money, certainly, but the amount was small in proportion to the time and the effort he invested. Coffee in the Alta Verapaz was not a cheap com­ modity to produce, and this may explain the limited wealth of both German and Guatemalan finqueros in the department. The costs and difficulties encountered by the German developers in the Verapaz were in many respects similar to those faced by investors in other under­ developed societies. To a certain degree the high cost of production on Dieseldorff’s fincas was a result of his insistence on quality. The culti­ vation and maintenance techniques that he used, such as fertilizing, spraying, and systematized pruning were expensive. The physical facilities and equipment, which he acquired to process the beans properly, required a continuing financial outlay for maintenance. Hand sorting the beans several times and the use of special waterproof sacks for shipping the coffee to market entailed additional expendi­ tures. But the heaviest expenses resulted from the high cost of achieving and supporting vertical integration in the plantation com­ plex, of providing necessary elements of an economic infrastructure, and of supporting the labor system that existed in the Alta Verapaz. These expenses were inescapable. Although the daily wages that the Indians of the department received were a pittance, for the plantation owner the labor system L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r l»50l in the long run was expensive. The finquero was obligated to provide the Indian families on his plantations food, lodging, medical care, schooling for the children, and a few acres of land to till. On fincas such as Chajcar, where more than one hundred colonos lived, the system of allotting land for the cultivation of staples reduced considerably the amount of arable land that could be planted to cof­ fee. In areas where land was scarce, such as Chiquixjl and Raxaha, the finquero had no choice but provide the Indians with all necessary provisions or to buy land elsewhere in the department for them to use. It was also necessary to cultivate on the finca, or to buy, ad­ ditional staples to give the colonos and the jornaleros. In order to have sufficient workers during the harvest season, Dieseldorff and other planters had to.invest in properties that, served little other purpose than provide laborers. In addition to the purchase price, such acquisitions further increased the cost to the owner of provid­ ing essential benefits to the residents, and of administration. Equally important, for the finquero the number of laborers he had available determined the amount of coffee he could produce and har­ vest without loss. Deficient transportation was the most pertinacious and expen­ sive problem that the Germans encountered. situation in a number of ways. Dieseldorff attacked the Since coffee was transported, until the 1930's, by ox-cart or by mule, he purchased land for breeding and grazing animals and acquired equipment to construct carts. Land for breeding, like land for labor, was essential in order to operate with some degree of improved efficiency. Acquisition of such properties L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r *5ll vas a step tovards vertical integration, but one taken at considerable cost, not only for land, but for laborers, drivers, trainers, forage, and equipment. Furthermore, using animals, carts, or human porters to carry a commodity that was both bulky and heavy was a painfully slow and primitive mode of transport. Its cost was not merely prohibitive— Q 1.50 per one hundred pounds between Coban and Pancajche— but it im­ posed severe limitations on the amount of coffee that could be shipped out of the department. The opening of a truck route between Cob&n and PancajchJi in the late 1930's greatly lowered the; cost of transporta­ tion between the two towns, but down to the present day between Coban and the fincas in the interior there exists a bottleneck through which only a restricted amount of traffic can flow. This bott] r.jeck has continued to delimit the area within which agricultural expansion in the department is feasible. The German settlers in the Alta Verapaz, in response to their own needs, assumed the responsibility of providing certain elements of an economic infrastructure. They were not legally obligated to do so, but the government's inaction, whatever the reasons for it may have been, placed the burden of making essential improvements on the shoulders of the foreign developers that it had attracted to the area. To the Germans and the other planters of the department this activity was a never-ending drain on their capital resources, for they had to provide laborers, supervisory personnel, tools, materials, and other equipment, and pay a cart tax and a wharfage tax to finance a road project that, on account of government interference, never seemed to L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r k52] reach completion. Those persons who undertook to open or improve roads and mule tracks to connect fincas with Cob&n, or with the Coban-PancaJch£ trunk line, had to bear the entire cost of the work. The high cost of infrastructure had a constricting effect on the economic and agricultural life of the Alta Verapaz. It was a problem that defied solution, and persons such as Dieseldorff, despite unremitting efforts to operate economically, were unable to reduce the cost by any substantial degree. The cost of infrastructure con­ tinually reduced the amount of surplus capital that Dieseldorff and the other Germans had to reinvest in the economy, and under the cir­ cumstances it is perhaps surprising that they achieved as much as they did. Germans also undertook a number of projects which,had they been successful, might have provided the basis for the first stage of capital formation necessary for subsequent national development. Ventures into light industry, such as the manufacture of textiles at Chichochoc and the Herring shoe factory in San Cristobal, were ham­ pered by the lack of sufficient skilled laborers as well as by trans­ portation costs. The poor state of transportation restricted to the local level efforts at truck farming, dairy production, meat process­ ing, and commercial production of other perishable commodities. Dieseldorff encountered similar developmental problems at Cubilguitz, a plantation whose nearly 17,000 acres were eminently suited for com­ mercial cultivation of c o m . Yet so long as the commodity had to be transported by mule or by human porters, cosmercial production was not economically feasible. Dieseldorff was keenly aware of the L R eproduced w ith perm ission o f the copyright owner. F urth er reproduction prohibited w itho ut perm ission. J r restrictions imposed by the state of transportation in the Alta Verapaz, and he certainly must have known vhat the infrastructure was costing him each year. This may in part explain his reluctance to invest more than he did in new projects. Given the lover cost of production and availability of effi­ cient modes of transport elsewhere in Guatemala, the Pacific high­ lands for example, it is not entirely unreasonable to wonder why the Germans even attempted to grow coffee commercially in the Alta Verapaz. There is no simple or succinct answer. The nearly ideal natural conditions of climate and soil exerted a powerful lure. Per­ haps the concomitant drawbacks that existed aroused the adventurous spirit of the nineteenth century Germans and blinded them to the tenacity and the long-term consequences of the handicaps that they were willing to try to overcome. For Guatemala, the search for rapid national development through immigration had mixed results. The leaders of the country had desired economic development, and to some extent they achieved it with the assistance of the immigrant settlers the country attracted, but because they failed properly to regulate development, the price they paid was foreign monopoly. The Guatemalan leaders had also dreamed that immigration would in some magical and undefined fashion transform the nation and bring a broaa-scale prosperity to the popu­ lace. This immigration failed to do, but the foreign settlers, such as the Germans, were not entirely at fault. The Guatemalan solution to the German problem was confiscation, but this act scarcely altered the economic situation. It merely took control of large areas of L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r k 5 ^ *] land out of the hands of foreigners and into those of political ap­ pointees. Prosperity did not filter down to the Indians, and for them life remained the same as it had been under the Germans. The dream of development through immigration was flawed in its conception. It carried the seeds of failure and frustration from ideas deeply rooted in the minds of the Guatemalan oligarchy. By positing the inferiority of the largest segment of the population, the Indians, in laws relating to land acquisition, to military exemp­ tions, to road work, to rural education, and most especially to labor, the very laws that were aimed to encourage and facilitate development, the leaders of Guatemala identified new business with old privilege, and thus they created a formidable block to further change. The concepts incorporated into these laws perforce directed the avenue of development towards a business-feudal economy^ and foreordained that not all the citizens of the nation would enjoy the fruits of develop­ ment. The former German plantations still remain, many now in decay, as reminders of Guatemala's nineteenth century efforts to find a solu­ tion to the obstinate and enduring problems of national development. ^ B a r b a r a Ward, The Rich Nations and the Poor Nations (New York, 1962), pp. 87-88. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J n r BIBLIOGRAPHY OF WORKS CITED I. A. PRIMARY SOURCES MANUSCRIPTS Guatemala, Coban. W. E. Dieseldorff, Sues. Private papers stored in strong­ boxes in a safe in the central office of the firm and in the library of the family residence. United States, Berkeley. German Foreign Ministry Archives. Guatemala No. 1. Nega­ tive microfilm at the University of California. UC III, Reels 21-25. United States, New Orleans. Dieseldorff Collection. Special Collections Division, Tulane University Library. B. PUBLISHED GOVERNMENT AND OFFICIAL DOCUMENTS 1. Government publications Costa Rica. Coleccion de las leyes. d*»~reto6_£ Srdenes expedidos por los supremos poderet. Legislativo £ e.jecutivo de Costa Rica. Vol. I. San Jose, lfi86 . Germany. StatistiBChes Jahrbuch fur das deutsche Reich. Herausgegeben von Kaiserlichen Statistischen Amt. 1903-19it. Berlin, 1903-19lt. Guatemala. Censo general de la Republica de Guatemala. levantado en el ano de l85b. Guatemala, idol. Guatemala. 1881. Codigo fiscal de la Repfiblica de Guatemala. Guatemala, Cl8ETl. Guatemala. Decreto Numero 1127. Se declara concluido el estado de guerra que existio con Alemania desde el 11 de diciembre de 19^1. Guatemala, 1956. Guatemala. Memoria de la Secretaria de Agriculture. presentada a la Asamblea Nacional Legislative. 1920-19to. “ Guatemala, 1920-19to. Guatemala. Memoria de la Secretaria de Fomento. presentada a la Asamblea Nacional Legislative. 1882. I 08U- 19U3 . Guatemala,“ lF82, l38t-19^3. L 1,55 R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Guatemala. Memoria de la Secretaria de Instrucclon Pfiblica, presentada& la Asamblea Nacional Legislative. 1^99, 1925-19^0. “ Guatemala, C10993, 1925-19^0. Guatemala. Memoria da la Secretaria de Relaciones Exterlores. presentada S. la Asamblea Nacional Legislative. 18791919. Guatemala, 1&79-1919. Guatemala. Memoriae de las Secretaries. Guatemala, 1&79-UT83. 1879-1881, 1883. Guatemala. Plan de estudios £ programas para lae eacuelas rurales de la Repfiblica. Guatemala, 1933. Guatemala. Quinto cenao general de poblacion levantado el 2. de abril de 1 9 W . G u a t e m a l a , 19^2 . Guatemala. Recopllacifin de laa leyes de Guatemala emitIdas por el gobierno democr&tico de la Repfiblica de Guatemala. Vols. I-LX, Guatemala, 1 ^ 1 - 1 9 ^ . Guatemala. Recopilacion de leyes agrarias. Guatemala, 1890. Ibarra, Arturo (comp.). Recopilacion de leyes correspondientes al ramo de agriculture. Guatemala, 1933. Marure, Alejandro, and Andres Fuentes Franco (comps,). Catalogo razonado de las leyes de Guatemala. Independencia hasta el 30 de septiembre 185&. Guatemala, 1856. Mendez, J . Guia del inmigrante en la Repfiblica de Guatemala. Guatemala, 1895. Pineda de Mont, Manuel (comp.). Recopilacion de las dfGuatemala. Edicion oficial, 3 vols. Guatemala, I069-TB 72 . Rodriguez Cerna, JosS (comp.). Coleccion de tratados de Guatemala. 3 vols. Guatemala, 1939-19^ **• Salazar, Ramon A. (comp.). Guatemala, 1892. United States. Coleccion de tratados de Guatemala. Official Gazette. Vol. XXI, No. 3 (January 17, 1882). 2. Corporate publications Compafiia de A g e n d a s y Transportes del Norte. Copia del acta de la Compagia de Agencies £ Transportes del Norte, que se acordo publicar. CGuatemala, 1&953. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Compafila de A g e n d a s y Transportes del Norte* Estatuto^ de la Compaflia de A g e n d a s £ Transportes del Norte. Guatemala, l893. . Reglamento Interior de la Compaflia de A g endas Transportes del Norte"aprobado en .junta general ordinaria, oitlebrada el 1U de .jullo de 1895. Guate­ mala, Clflsjj. L Compaflia del Ferrocarrll Verapaz y A g e n d a s del Norte, Ltda. Memoria de la Superltendencla de la Compaflia del Ferro­ carrll Verapaz £ Ag e n d a s del Norte. Limit ada, sob re el curso del negoclo durante ejL. afto. 1896- 190&. Guate­ mala, 1897- 1908. Socledad Agricola del Norte, Estatutos de la Socledad Agricola del Norte (Aprobados por Acuerdo Gubernatlvo de 29 de agosto.y. Guatemala, l892. C. PUBLISHED PARTICIPANT AND EYEWITNESS ACCOUNTS Deutschtum in der Alta Verapaz. Stuttgart, 1938. du Teil, Oscar Baron, and Xavier du Teil, "Cultivo del cafeto y beneficio de bu fruto," La Sociedad Economica de Guatemala. I,U (May, 1866), pp. 76-90; I, 5 (June, 1866), pp. 91-96; I, 6 (August, 1866), pp. 108-llU. Erckert, F. C. von. "Die wirtschaftlichen Interessen Deutschlands in Guatemala," Beitrage zur Kolonialpolltik und Kolonialwirtschait. Ill (1901-190277"pp. 225-238, 269- . 287 Frobel, Julius. Seven Years1 Travel in Central America. Northern Mexico, and the Far WeBt of the United States. London, 1$59• Heine, Wilhelm. 1853. Wanderbilder aus Central-Amerika. Leipzig, Helmrich, Gustav. Kaffee-Dungungsversuche in Guatemala. Berlin, 1901. Ver8uche uber die Verwendung Kunstdunger in der Kultur des Kaffees. Berlin, 190^7 — m-m— mm" Kohl, F. G. Gutachten uber die von Stilbella flavida hervorgerufene Kaffeekrankheit mit Angaben der aus den Untersuchungen sich ergebenden Massregeln gegen dieses Pilzepidemle. Berlin, 1902. Marr, Wilhelm. Reise nach Central-Amerika. Hamburg, 1870. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Reichardt, C. F. Ccntro-Amcrika. Nach den gegenw&rtigcn Zustftndc-’ , tandc a' und Volkea. . . . im Intereaac dea deutBchen Aulwailderung. Braunschweig, l6$ 1. Roach, Adrian. Allerlcl aua der Alta Verapaz. Bilder aua dem deutaehen Leben in~Guatemala« 156?-1930. Stuttgart, TsW . Roaaignon, Julio. "La barra del Rio Dulce," La Socledad EconSmica de Guatemala. Ill, 1*6 (June 15, I d l k ) t pp. 3k \ III, ^ T j u n e 30, 1071*), pp. 2-3; III, 1*8 (July 15, 1871*), PP. **-5; H I , U9 (July 30, 187I*), pp. 1-3. . Porvenir de la Verapaz en la Repfiblica de Guatemala, memoria dedicada al Consulado de Comercio de Guatemala. Guatemala, 1861. . "La Verapaz," La Socledad EconSmlca de Guatemala. IV, 3l* (June 2 k , I87ST, pp. 1-2 . Sapper, David E. "Costumbrea y creencias religiosas de loa indios Queckchl," Analea de la Socledad de Geografla e_ Hiatoria. II, 2 (December, 1925), pp. 109-197. Sapper, Karl. "Die Alta Verapaz," Mltthellungen der geographiBchen Gesellachaft In Hamburg. XVII (1901), pp. 78-223. . "Ansiedlung von Europaern in Kittelamerika," from a aeriea of articles entitled "Die Ansiedlung von Europaern in den Tropen," Schriften dea Vereina fur Sozlalpolitik. CXLVII (1912), Part 2. Scherzer, Karl. Travels in the Free States of Central America: Nicaragua. Honduras. and San Salvador. 2 vols. Translator anonymous. London,' 1857V Squier, Ephraim George. London, 1856. Adventures on the Mosquito Shore. Stoll, Otto. Guatemala, Reisen und Schilderungen aus den Jahren 1878-1883. Leipzig .“ lBfe?! Wagner, Moritz, and Karl Scherzer. La Repfiblica de Costa Rica en Centro-America. Translated by Jorge A. Lines et al. San Jos£, 1 9 ^ . D. NEWSPAPERS El Boletln Agrlcola (Coban. AV, Guatemala). Boletln Oficial (Guatemala). 1888-1889. 1871-1873. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r El DemScrata (Cobin. AV, Guatemala). 1886-1089. Diario da Centro-Amirica (Guatemala). (September 23, 19l8). El Eco Alem&n (Guatemala)• 19lb-1916. Gaceta de Guatemala (Guatemala). l85t); ll369-lfl71 • El Guatemalteco (Guatemala). El Imparclal (Guatemala). 1939). Afio XXXIX, No. 10770 Vol. VII, No. 13 (July 21, 188b, 1869- 1891. Aflo XVIII, No. 600b (August 1, El Norte (Cob&n. AV, Guatemala). 1915-1939. El Polochlc (Coban, AV, Guatemala). l89b-1095» El Porvenir (Cob6n. AV, Guatemala). 1889-1898. El Progreso Nacional (Guatemala). I89b-l895. El Quetzal (Coban. AV, Guatemala). La Socledad Econ 6mlca de Guatemala. Times-PIcayune (New Orleans). 10,1917). La Verapaz (Guatemala). 1882-1085. 1866-1880. Vol. LXXXI, No. 318 (December 1891. La Voz del Norte (Salami. BV, Guatemala). E. 1883-1885. DIESELDORFF PUBLICATIONS 1 Brlefllchen Mlttcilungen von Aerzten uber Mesbe bel Lungentuberkuloae. [Berlin, 191 b ?"j. Brief11che Mitteilungen von Patlenten uber Mesbi bel Lungentuberkulose. LBerlin, 191b 71. Butzengeiger, Dr. "Erfahrungen mit Mesbe in der Bebandlung chirurgischer Tuberkulosen," Munchener medizlnischen Wochenschrlft. No. 3 (1913), pp. 1-b. Chlumsky, Dr. V. "Uber Mesbebehandlung bel chirurgischer Tuberkulose und bel infizierten Uunden ,11 Zentralblatt fur Chirurgie. No. 9 (February 28, 191b), pp. 369-370. Dieseldorff, Ervin P. "Alte bemalte Tbongefasne von Guatemala," Verhandlungen der Berliner anthropologischen Gesellschaft (December 16', 1893), pp. 5b8-550. R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r U6ol Dieseldorff, Ervin P. "La arqueologla de la Alta Verapaz y loa problemas de los estudios Mayas," Anales de la Socledad de Geografla e Historla. XIII, 2 (December, 1935), pp. 103-191. . "The Aztec Calendar Stone and its Significance," Proceedings of the Tventy-thlrd International Congress of Americanists. Held at Nev York, September 17-22, Pp. (>11-222. Nev York, 1930. . "Ein bemaltes Thongef&ss mit figttrlichen Darstellungen aus einem Grabe von Chamfi," Verhandlungen der Berliner anthropologischen Qesellschaft (December 15, 1 8 9 M , pp. 372-370. . "El calendario Maya de Quirigufi," Anales de la Sociedad de Qeografia e Historia. XII, 3 (March, 1936), pp. 272-277. . "La causa por la cual los Mayas de Quirigufi, comenzaron su calendario en 22 de septiembre del afio 3373 A.J,C.," Anales de la Sociedad de Geografia e Historia. XVI, 1* (June, 19^0), pp. 271-279. ” . Explanatory Notes to the Lecture on the "Mayan Intercalary Systems1^ of the Calendar, to be given 3rd August 193^ at 11 A.M. at University College, n.p., n.d. . "Extracto del libro antiguo gue Csicl conserva la cofradia de Carcha," Internationaler AmerikanistenKongreas. Vierzehnte Tagung. Stuttgart. 190^. Pp. 399U027 Stuttgart, 1906. . "Das Gefass von Cham£," Verhandlungen der Berliner anthropologischen Gesellschaft (December 21. 1695). pp. 770-776. . Heilung von Lungenleiden durch Inhalation von Mesbe. SwlinViSIff “-----------------------------------. Der Kaffeebaum. Praktische Erfahrungen uber seine Behandlung im nSrdlichen Guatemala. Berlin, C19001. . "Klassifizierung seiner archaologischen Funde im nordlichen Guatemala," Zeltschrlft fur Ethnologie (June, 1909), pp. 862-871*. . Kunst und Religion der Mayavolker. 1926, 1931; Hamburg, 1933. . 3 vols. Mesbe bei chirurgischer Tuberkulose. Berlin, Berlin, 19lU. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r 1,671 Dieaeldorff, Ervin P. "Neuo Auagrabungen do a ilrrt• Dioucldorff in Chajcar, Guatemala," Verhandlung der Perilnor anthropoloKiachon Oeaellnchaft (April 27,1095), pp. 320-322. . Laa pi an ta» medlcinaloa dol Dopartamonto de Alta Verapaz. Guatemala, 19 >*0, . "Lao plantao medicinaleo dol Departomento de Alta Verapaz." Analeu de la Hociedad de Geografta o lllntorla. XVIL 2 (December, 1939T, pp. 92-105; XVI, 3 (March, lyiio, pp. m - s r a L . "l'or quc comenzaron loo Mayaa b u calendario en 2 2 de septiembre del aflo 3373 antea do Joaucriato," El Imparclal (Guatemala), Afio XVI.II, No. 600h (August 1, 1939). . "Heligion y arte de loo Mnyao," An ale o de la Lioclcdad de Geograft a e liiotoria, V, 1 (Heptember, 192877 pp. 60BT; V, 2 (Decomber. 1928), pp. lOU-203; V, 3 (March, 1929), pp. 317-335; V, h (June, 1929), pp. It32-1<53. . Lob oecretoa contenidou en el tablero del tempio dc In Cruz de I'alenque. la .loya m5T vallooa de la pro-hlatoria mundial. connervada en el Museo Nacional de Mexico. D. F. Mexico, 1939. , "Hida rhombifolia," La Juventud Medlca. Aflo XX, No. 197 (October 15, 1919), pp. 153-156. . "Ein ThongcfSss mit Darstellung einer vampyrkopfigen Gottheit," Verhandlung der Berliner anthropologlachen Gesellschaft (December15, I 89M , pp. 575-576. . "El Tzultacn y el Mam, loa diosea prominentes de la religion Maya," Analea de la Hociedad de Geografta £ Historia. II, h (July, 192677 PP* 378-305*. . "Wer waren die Tolteken?" Sonder-Abdruck aus der Bastian-Festachrirt. Pp. hl5-l*l8. Berlin, 1896. _ _ (ed. and trans.), "A Kekcht Will of 1583," The Maya Society Quarterly. I, 2 (March, 1932), pp. 65-68. Dieseldorff, Erwin P., Eduard Seler, and E. Forstemann, "Two Vases from Chama," Mexican and Central American Antiquities. Calendar Systems. and History. Pp. 035-070. Edited by and translated under the supervision of Charles Pickering Bowditch. Washington, 190h, Mesbl. [Berlin, 191^ ?1. L R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r U62I International Congress of Americanists. Verhandlungen dea XXIV Internationalen AmerikanistenKongreaaes. Hamburg. 7. bis 13. September. 1930. Hamburg, 193*». Neuber, Dr. "Versuche mit MesbS gegen Tuberkulose," Zentralblatt fflr Chirurgie. No. 1 (January b, 1913), pp. 10-12. Spangenberg, Dr. Adolf. 191U. MesbS bei Lungentuberkulose. Berlin, . "Mesb€, ein neuea Heilmittel gegen Tuberkuloae," Reichs medizinal Anzeiger. XXXVII, 18 (August 30, 1912), pp. 1-8, . Meabl. Ueber das Tuberkulose-Heilmittel Mesbis. CBerlin, 19 ll* ?3. Vela, David. "Dieseldorff: un vieJo maya," Anales de la Sociedad de Geografia £ Historia. XVII, 2 (June, lsHti), pp. 90-100. II. A. SECONDARY SOURCES BOOKS AND ARTICLES Aleman Bolafios, G. Vida agricola de Guatemala. Guatemala, 191*6. Alvarado, Juan Antonio. Tratado de caficultura pr&ctica. vols. Guatemala, 1935-1936. Asturias, Miguel Angel. Aires, 1962. Viento fuerte. Third edition. 2 Buenos Cheney, Ralph Holt. Coffee. A Monograph of the Economic Species of the Genus Coffea L. New York, 1925. Cochran, Thomas C., and Ruben E. Reina. Entrepreneurship in Argentine Culture, Torcuato Di Telia and S.I.A.M. Philadelphia, 1962. "Conflicto en la exportacion del caf€ ante la proclamacion de las Listas Negras," Revista de la economia nacional. V (October, 19l*l), pp. 9-12. Dafert, F. W. Erfahrungen fiber rationellen Kaffeebau. Berlin, 1896. Dorpalen, Andreas. Heinrich von Treitschke. New Haven, 1957. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J r Gomez, Gabriel. Cultivation and Preparation a Coffee. Translated by W. Thompson. Mexico, 189^• Griffith, William J. Empires in the '.J-ldernesB. Foreign Colo­ nization and Development in Guatemala, l83^-l8UU. Chapel Hill, 1965. Hansen, Marcus Lee. German Schemes of Colonization before i860. Northhampton, Mass., 19277 CHarrison, AustinD7. The Pan-Germanic Doctrine, being a Study of German Political Aims and Aspirations. London, 190U. Hausrath, Adolf. Treitschke, his Doctrine of German Destiny and of International Relations. Translator anonymous. London, 1911*. Hegel, Enrique. Die historische Entwicklung der Plantagengesellschaft in Guatemala bis zum Ende des 1 9 . Jahrhunderts. Munich, 1 9 W . Henderson, Gavin B. ’’German Colonial Projects on the Mosquito Coast, 18U1+-18U8,” The English Historical Review, LIX (May, 1 9 M 0 , PP. 257-271. International Institute of Agriculture. ’’The World’s Coffee,” Studies of the Principal Agricultural Products on the World Market, IX. Rome, 19^7• Jones, Chester Lloyd. 19U0. Guatemala, Past ;.rid Present. Minneapolis, List, Friedrich. The National System of Political Economy. Translated by Sampson S. Lloyd. London, 1928. Mann, Thomas. Buddenbrooks. Translated by H. T. Lowe-Porter, fourth edition. New York, 1957. Morren, F. W. Koffiecultuur in Guatemala, met aanteekeningen Batreffende de overige Cultures de Mijnen en den economischen Toestand van deze Republiek. Amsterdam, 1599. Nackmann, Maximiliauo. British Trade with the Republic of Guatemala. Liverpool, 189^• CRosales Ponce, EmilioD. "Relato de tres epocas; perfiles hist6ricos de Alta Verapaz. Primera epoca, I,” El Norte (CobSn, AV, Guatemala), Ano XXIX, No. lUl+9 (July l6, 1938). L Schonfeld, Karl. 1903. Der Kaffee-Engroshandel Hamburgs. Heidelberg, R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J r Schottelius t Herbert. Mittelamerlka als Schauplatz deutscher Kolonisatibnversuche. 1&^0-1865. Hamburg, 1939* Solorzano FemSndez, Valentin. Historia de la evolucion econ 6mica de Guatemala. Mexico, 19^7• Termer, Franz. uLa habitacion rural en la Amlrica del Centro, a travSs de los tiempos,” Anales de la Sociedad de Ceografia e Historia. XI, (June, pp# 4 1935T, 391-^09# Townsend, Mary Evelyn. European Colonial Expansion since 1871. New York, 19Ul. . Origins of M o d e m German Colonialism. 1871-1885. New York, 1921. . The Rise and Fall of Germany's Colonial Empire. l55V~19l5‘. New York, 1930. Treitschke, Heinrich von. Politics. 2 vols. Translated by Blanche Dugdale and Torben de Bille. New York, 1916. Tuchman, Barbara W. The Proud Tower. A Portrait of the World before the W a r . 1890-191^. New York, 1966. Tumin, Melvin M. Caste in ja Peasant Society. the Dynamics of Caste. Princeton, 1952. Ukers, William H. All about Coffee. A Case Study of New York, 1935# Villacorta C., J. Antonio. "Archeologla Guatemalteca. XI. Pokoma, Cak-Yu, ChamIL, Chajcar, Panzamala, Chisec, Purulha, Chacujal, etc.," Anales de la Sociedad de Geografia e Historia. VI, 1 (September, 1929), pp. 52-71. Walsh, Joseph M. Coffee. its History. Classification and Description. Philadelphia, l&9b. Ward, Barbara. The Rich Nations and the Poor Nations. York, 1962. B. New UNPUBLISHED THESES, DISSERTATIONS, SEMINAR PAPERS Carl, George Edmund. “British Commercial Interest in Venezuela during the Nineteenth Century." Unpublished Ph.D. Disserta­ tion, Tulane University, New Orleans, 1968. McAfee, Shirley Lucas. "A Study of Agricultural Labor in Guatemala, 1821-1871#*' Unpublished M. A. Thesis, Tulane University, New Orleans, 1955-# L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. J NaSez Falcon, Guillermo. *The Activities of the German Ministers Plenipotentiary in Guatemala, 1876-1911*." Unpublished seminar paper, Tulane University, New Orleans, 1962. ____ . * German Contributions to the Economic Development of the Alta Vera Paz of Guatemala, 1865-1900." Unpub­ lished M. A. Thesis, Tulane University, New Orleans, 1961. Schwemmer, Ora-Westley. "The Belgian Colonization Company, I 8U 0-I 858." Unpublished Ph.D. Dissertation, Tulane University, New Orleans, 1966. L R eproduced w ith perm ission o f the copyright owner. Further reproduction prohibited w itho ut perm ission. r ~i BIOGRAPHY Guillermo NaHez Falcon was b o m in Brownsville, Texas, on Au­ gust 30, 1936. He attended elementary and secondary schools in San Antonio, Texas, and was graduated from high school in 1953. He did undergraduate work at Southern Methodist University in Dallas and at Trinity University in San Antonio. In May, 1957* he received a Bach­ elor of Arts degree from the latter schoo... He entered the Graduate School of Tulane University of Louisiana in September, 1957* and re­ ceived a Master of Arts degree in 1961. He continued graduate studies at Tulane University and concurrently was employed in the Manuscripts Division of the Tulane University Library. During the academic year 196U/1965 he held a National Defense Foreign Language grant. At pres­ ent he is a doctoral candidate at Tulane University. L 466 R eproduced with perm ission o f the copyright owner. F urther reproduction prohibited w itho ut perm ission. J