one part of the existing Chiclayo-to-Patapo line the grade reaches 6 per cent. This company publishes no statement of earnings and expenses. Recently it acquired the assets of the Pomalca Railway, formerly owned by the Sociedad Agrícola Pomalca, connecting a large agricultural estate with Eten. The former management held and transferred certain valuable concessions for the construction of additional mileage.

A number of short spurs or lines extending to plantations and mines have been built in various sections of the Republic. Some of these are classed as common carriers; none of them are of much importance. A most comprehensive construction program has been laid out for the future, which, if carried into effect, would cause the rapid development of the country's vast agricultural and mineral resources and would open to the outside world the almost limitless areas of virgin territory lying on the eastern slope of the Andes.

PUBLIC UTILITIES.

In the public-utility field Peru has shown excellent progress. Most of the important cities and towns have water and electric light and power systems, while telephones connect many sections of the Republic. Tramway systems traverse the streets of Lima, Callao, and towns adjacent thereto, and also are established at Arequipa. Lima is also provided with a gas service, which, however, has not been well patronized during recent years.

IMPORTANT COMPANIES IN LIMA-CALLAO DISTRICT.

The most important public-utility company in Peru is the Empresas Eléctricas Asociadas of Lima (Lima Light, Power & Tramways Co.), controlling the electricity and gas franchises in and adjacent to Lima, as well as more than 86 miles of tramway. The £1,091,460 first-mortgage 5 per cent bonds are listed on the London Stock Exchange and on the Lima Bourse. They form part of an original issue of £1,200,000 bonds, retirable by sinking fund. This sinking fund was suspended for two years commencing 1914 and has only recently been resumed. Earnings from electric light and power service for the year 1915 amounted to $751,023 as compared with $741,790 in 1914; net revenues totaled $505,972 ($523,562 in 1914). Tramway earnings amounted to $997,640 in 1915 ($997,712 in 1914); net revenues totaled $383,487 ($412,247 in 1914). Freight railways produced a revenue of $131,371 in 1915 and were run at an expense of $146,242. On December 31, 1915, 127 tramway cars were in service, many of familiar American makes. The surplus earnings of the company after fixed charges, depreciation, bad debts written off, etc., amounted in 1915 to $145,951. Total gross earnings from all sources were $1,880,085. The total amount of stock outstanding as of March 15, 1917, was Lp1,500,003, on which dividends have been paid in recent years as follows: 1906, 3 per cent; 1907, 6 per cent; 1908, 6 per cent; 1909 and 1910, 41 per cent each; 1911, 5 per cent; 1912, 54 per cent; 1913, 44 per cent; 1914, 1 per cent for first quarter; 1915, none; 1916, 2 per cent for last portion of year.

The Peruvian Telephone Co. (partly local and partly British capital) furnishes the telephone service for Lima, Callao, and near-by places.

PUBLIC-UTILITY ENTERPRISES IN AREQUIPA.

Arequipa, the metropolis of southern Peru, is located at a distance of about 665 miles from Lima and is the center of a productive and somewhat important district. The city has a population slightly in excess of 40,000, and its altitude is approximately 7,550 feet.

The water supply of the city, drawn from the near-by mountains, is furnished by the municipality and represents one of its principal forms of income. Several mineral springs, two of which are widely known throughout South America, furnish the drinking water used by the upper classes generally.

Electricity for light and power is furnished by the Sociedad Eléctrica de Arequipa (Ltd.), a local company that has been very successful. The company's power station is located at Charchani, on the River Chile, about 8 miles from the city, near the base of Mount Charchani (altitude of mountain approximately 19,500 feet). Upward of 27 miles of circuit are in use. The capitalization of the company amounts to $375,000 United States currency, and reserves total $97,140. Materials and current assets on hand as of December 31, 1916, indicated an excellent financial condition. Gross earnings for the calendar year 1916 totaled $114,201, and expenses, including extraordinary repairs, amounted to $34,270. The net surplus was $79,931, from which a dividend of $45,000 (12 per cent) was paid to the shareholders. Dividends during recent years have averaged from 10 to 12 per cent per annum. Shares, although not quoted, are worth more than par, and are held by 55 stockholders. Señor M. Ugarteche, Arequipa, is the director-general.

. The traction service of the city is controlled by the Tranvía Eléctrico de Arequipa (Ltd.). The total authorized length of the system, including a series of belt lines and an extension to the town of Tingo, is 10 miles. Thus far the operations of the line have not proved as successful as was anticipated, and the road is operated at the present writing by W. R. Grace & Co. as agents for the Bondholders' Syndicate, consisting of W. R. Grace & Co., the Italian Bank, the Bank of Peru and London, etc. There are outstanding at the present time £67,500 of an authorized issue of £75,000 8 per cent bonds, these being listed on the Lima Stock Exchange. The_company does not make public any statement of operating results. Rates of fare in the city are very low, the belt line charging 2 cents gold within the city limits. The rates to Tingo are 7 cents first class and 5 cents second class. The manager of the company is an American, and American equipment is used.

The city is provided with an excellent telephone system, which serves the surrounding country and connects with through trunk lines to Mollendo and other sections of the Republic. The Mollendo extension is owned by the operating company, which is known as the Empresa de Teléfonos Arequipa y Mollendo. The holder of the concession is Gustavo Llosa, of Arequipa, who, it is stated, owns the entire stock of the company. Subscribers number about 500.

There is no gas company in the city, and it is hardly likely that one would pay.

MINING ENTERPRISES.

Peru, long the Eldorado of the Spanish Conquistadores, exported during the days of Spanish occupancy enormous quantities of gold,

silver, and copper. To-day, so far as gold is concerned, the country occupies an insignificant position among the nations of the world; nor does it occupy a prominent position as a silver producer. These valuable minerals are to-day mined mainly as by-products. Copper is king in Peru, and most of the copper is produced by three mines only, namely, the Cerro de Pasco Copper Co., the Backus & Johnston mine, and the Morococha mine. The Cerro de Pasco Co.'s mine is described in the Appendix (p. 521). The property produced during the period from its discovery to the year 1900 no less than 40,000,000 tons of silver and copper ore. The Morococha mine is under Cerro de Pasco

control.

During 1916 a total of approximately $1,200,000 of gold was mined in Peru, as compared with about $490,000 in 1911. About one-half of this gold was produced at Cerro de Pasco, the remainder being widely distributed. The principal gold mines are the New Chuquitambo (capital, Lp50,000; see Appendix); the Santo Domingo, controlled by the Inca Mining Co.; Aporama Goldfields (Ltd.), etc. Gold statistics in this country are very difficult to obtain, it being almost impossible to trace the amounts secured by Indians.

Probably the most important silver mine in the Republic is that owned by the Anglo-French Ticapampa Silver Co., located near the port of Huarmey, with which it is connected by a short stretch of light railway. Dividends paid by this company have averaged from 20 to 25 per cent per annum. The capitalization as of recent date was 2,500,000 francs. The entire directorate is French. The Morococha mine produces large amounts of the mineral. Its production during recent years has been as follows: 1911, 230,132 ounces; 1912, 431,226 ounces; 1913, 549,795 ounces; 1914, 608,322 ounces; 1915, 874,000 ounces; 1916 (estimated), 1,500,000 ounces. Now that silver is enjoying such a high price in the world's markets, there is likely to be a boom in the white metal in the Republic of Peru, and the country will probably again occupy a very high place as a producer.

The copper production in Peru for three recent years, according to a statement by American Consul General Handley, has been as follows (long tons, 2,240 pounds): 1913, 27,328 tons; 1914, 25,070 tons: 1915, 31,890 tons, fine copper. Copper exports from Callao totaled $14,198,799 in 1915. A small amount of copper was also exported from Salaverry. The copper reserve of the Cerro de Pasco properties is estimated at 253,452,000 pounds.

Coal is mined in large quantities at Goyllarisquisga, at or near which place the Cerro de Pasco Mining Co. holds 108 coal-mining claims. Coal reserves at these mines are estimated at 3,052,903 tons. Practically all of this coal is used at the Cerro de Pasco mines and smelters. Coal also exists at Oyon, Checras, Recuay, Hutunhuasi, near Oroya, and at other places. Exploitation of these mines has been much discussed, although little has thus far been done to develop them. It is not certain that all or any great part of this coal is of commercial value.

Borax exists in large quantities near Arequipa, and it is expected that the Borax Consolidated (Ltd.), which owns the deposit, will begin extensive development in the near future. Other minerals in Peru are tungsten, lead, mercury, vanadium, bismuth, salt, molybde