Copyright, April, 1905 BY THE GERMAN-AMERICAN COFFEE CO. REPORT ON THE PROPERTIES OF THE GERMAN-AMERICAN COFFEE CO. By A. E. LINEThe German-American Coffee Company Mr. A. E. Line, Sioux City, Iowa, Inspector 4To the Members : It is with pleasure that we submit this full and comprehensive report on the properties of this Company given by Mr, A. E. Line, a gentleman of business ability and a high sense of integrity, Requests having been made by stockholders from various localities, where large amounts of stock in this company are held, to send one of their own number to visit the properties and make a report, and the company, deeming it advisable to comply with this request, inasmuch as it woidd enable our stockholders to become familiar with the magnitude of our several plantations, as well as the actual work being done at this time, both in the development work and in extending the commercial end of our business, requested the stockholders to name various representatives for this position. Letters of indorsement having been received from a number of applicants, these were submitted to the stockholders, who, by ballot, selected Mr, Line for the position of inspector. He made the trip of inspection in company with a number of other members who had no connection ivith the company except as stockholders, and his report, which bears the indorsement of these various gentlemen, is here-with submitted. Yours very truly, THE GERMAN-AMERICAN COFFEE CO, The 5 German-American Coffee CompanyTo the Stockholders : I hereby make application for the inspectorship of the Iowa and Triunfo properties of Mexico for the current year. I have been connected with the land and accounting departments of three different railroad companies for 10 years, and for the past five years have been with a large coal company, so that my experience has been of a varied nature and such that would qualify me to make the inspection from the business man s standpoint. It might not be out of order to say that at a recent meeting of the Sioux City stockholders, where about $100,000 worth of stock was represented, I was selected as their candidate for this position, and if elected will do my best to serve the interests of all stockholders. (Signed) A. E. LINE. Sioux City, Iowa, Nov. 5, 1904. We take pleasure in endorsing for the position of inspector, Mr. A. E. Line, whom we have known for the past 10 years, believing he is thoroughly qualified to give an accurate and detailed report. Yours very truly, (Signed) W. P. MANLEY, President, Security National Bank. GEORGE SINCLAIR, Cashier, Woodbury Co. Savings Bank. F. A. SEAMAN, Claim Agent, Great Northern Railroad Co. H. A. GOOCH, Cashier, First National Bank. 6 The German-American Coffee CompanyTO THE SHAREHOLDERS WITHOUT entering into details of the journey from the United States to Mexico, with which our members are quite familiar from other writings, I will simply state I left Sioux City, my home, January 24th, for our Des Moines office, and started from there on the 25th, reaching St. Louis early the next morning, where I met our party. After my election I received letters from a number of stockholders, who stated they would like to accompany me on my trip, at their own expense, and accordingly arrangements were made and we met at St. Louis. Leaving St. Louis on the afternoon of January 26th, we traveled through Arkansas and Texas into Mexico. From Mexico City we proceeded by railroad to Vera Cruz, from which port we sailed by Gulf steamer to the port of Frontera, three hundred miles east along the coast. From Frontera, which is the Gulf port outlet to lower Mexico, we traveled by river steamer a distance of one hundred and eighty miles to La Cruzada, which is the outlet of our plantations. In making our trip through the Republic we visited a number of plantations, and became as fully informed on tropical agriculture as possible, so that when we reached our own property we could make comparisons, and determine whether it was being developed in a business-like and practical manner. Before proceeding, I wish to express my sincere thanks for the honor conferred upon me by our members, and wish them to know that I fully appreciated the responsibility of the position, and determined to make a thorough investigation and report conditions as I found them. When the members understand I have been investing my own money in this enterprise, having no interest but that of a stockholder, and The 7 German-American Coffee Companythat many of my best friends are doing the same, they can realize to what extent I felt the responsibility. LA CRUZADA—SHIPPING STATION Arriving at La Cruzada, which is the head of navigation on the Tulija River, and one of the properties established by The German-American Coffee Company, our party, representing members from different localities, began preparations for the journey to the other Triunfo Plantations. At this point the company has erected a new warehouse for receiving the products of El Triunfo and other plantations in the district, as well as to receive the merchandise which is delivered at La Cruzada for the entire district. When the coffee and other products are brought down from the mountain, they are stored in the warehouse until shipped by river boats to Frontera, the Gulf port. The products from Triunfo and other interior properties, and the shipments of merchandise for the interior, are increasing yearly, and while the company has had an ordinary warehouse at this place for several years, it was insufficient in capacity and not of proper type for storing the increasing quantities of merchandise. The new warehouse, which is absolutely fire-proof, and the only one of the kind in the country suitable for storing coffee and freight, is of modern type, constructed of steel, has a cement foundation, and has at one end the office and living quarters of the clerks in charge. The office is provided with a private telephone, connecting La Cruzada with Triunfo and other intermediate properties, and also a connection with the town of Salto. Mr. Rau having sent the mules and guide from Triunfo to meet us, we proceeded on our journey up the trail, leaving La Cruzada at 9:00 A. M., and reaching Las Nubes, the next of the company’s properties, which is about five miles distant, just before noon. This is a 8 The German-American Coffee Companyfine piece of property, with the best pasture for cattle which we saw on our trip. Here we have over 75 acres of fine sugar cane, and also a cane mill and machinery for crushing and handling cane, and manufacturing by-products. Sugar cane and its products are a source of good profit in our locality, as these supplies are sold in the immediate vicinity, yielding a nice store profit as well as a manufacturer’s profit. Las Nubes is well stocked with cattle, and the pack mules are pastured there on their trips to and from the plantations. From here we proceeded to the town of Trinidad, the next of Triunfo’s possessions, which we reached about 6:00 P. M., and found that Mr. Rau had arranged by telephone for our accommodation. We dismounted at the company’s dwelling house and found an elegant meal in readiness for the party. This was one of the pleasant incidents of the trip, as we were tired and hungry from our ride. We ate heartily and after a pleasant visit with the company’s agent who is in charge there, we were shown to our neat and comfortable sleeping rooms, which, by the way, are a rare treat to a traveler on a mountain trail in Mexico. At Trinidad the company has established a relay station, where supplies are kept for the natives, and at this place the pack mules coming over the trail are cared for. Besides a dwelling house on the company’s property, consisting of six lots covering four acres in the center of the town, there is a warehouse made of galvanized iron and native lumber. This, like the warehouse at Cruzada, is used for storing coffee. Both the dwelling and warehouse have been built during the past year. At the time I was there the company had in storage 55,000 pounds of Triunfo coffee, which was to be taken to Cruzada in a very short time. Adjoining the town we have over 75 acres of land, part of which is used for pasture, but all suitable for cultivation of tropical crops. The 9 German-American Coffee Company1O Headquarters, Triunfo property ; paved street and laborers’ homes in foregroundLeaving Trinidad early the next morning, we took up the trail over the mountains en route to Triunfo. After passing over the first range of mountains, we came to a well-developed coffee plantation, the trees being apparently of better quality than any which we had previously seen, and we supposed that we were on the chief property of the company, El Triunfo, but we found that this property belonged to other parties, and our guide took us through the valley and up on the next range of mountains, from which we could see quite a number of substantial buildings. At this place there were hundreds of rows of fine coffee trees, and, of course, we naturally expected that this was the end of our journey, but found that we were again mistaken ; it was Porvenir, the associated property of Triunfo. At this place the management keeps most of the live stock. We found a large number of mules which are used for transporting the coffee and other products from our properties to Cruzada ; there was also a large herd of cattle. The general appearance of this property was much better than any plantation we had seen so far, and we did not expect to find anything better at Triunfo, but after riding for half an hour we were met by Mr. Rau, who had come down from Triunfo to meet us, and with him as a guide we reached the top of one of the mountains, where we were able to look down on a regular coffee paradise. Before us lay a village of native houses, while about half way up the opposite mountain was the administration building, the coffee beneficio and other buildings of El Triunfo. One can hardly realize how pleased our party felt after a strenuous trip, and through what we had supposed was the garden spot of Mexico, to find this property so much above all others in general appearance. The 11 German-American Coffee CompanyEL TRIUNFO PROPERTIES As shown by the accompanying list, El Triunfo and annexed properties comprise over thirty-six thousand (36,000) acres, located in the Department of Palenque, State of Chiapas, Mexico, and are about a day and a half ride from Salto de Agua via a mountain trail, but can be made in one day if you do not stop to rest on the road. Triunfo ranges from 2,500 to 5,000 feet above sea level and lies in the Tumbala range of the Sierra Madre Mountains. The soil is very rich and especially adapted to the growing of the highest grade of coffee ; and, what surprises a person unacquainted with the local conditions, is to find good, rich soil on the very tops of the mountains, where the choicest coffee is grown. At the present time more than 1200 acres are planted to coffee, and land is now being cleared on which from seventy-five thousand (75,000) to eighty thousand (80,000) trees can be planted. This work will be finished within a short time, and more new land cleared and planted as rapidly as possible. This, with the coffee land on Ravancha and Machuyil, would make over fifteen hundred (1500) acres in coffee. Mr. Henri Rau is the Mexican representative of The German-American Coffee Company, and a director. El Triunfo and associated properties are under his direct supervision. He has lived at Triunfo for 11 years, and is thoroughly familiar with the conditions of that part of the country. His success in developing the Triunfo properties from a tropical forest to the finest coffee plantation in Mexico has been most marvelous. 12 The German-American Coffee CompanyGeneral view, showing bearing coffee trees and section of street, TriunfoIn going over the plantation, one can look in any direction and see nothing but fine large coffee trees which, at the present time, are loaded with red berries. On one of our trips we walked 15 miles over different parts of the plantation, and inspected the coffee trees and also four of the nurseries, and found that there are, at the present time, fully 50,000 trees suitable for planting this year and 100,000 seedlings which can be taken from the nursery and transplanted next year. There are now 15,000 coffee trees ready to be transplanted on recently cleared and prepared land, which will be planted within a short time, as soon as the proper season arrives. The coffee seed is sown first in beds, and when the plant is six months old it is carefully transplanted to the nursery, setting the seedlings about 9 inches apart. The land on which seedlings are to be planted must be cleared about six months before planting, and holes made at that time for the reception of the small trees when they are ready to be permanently planted. In going over the plantation I found but few trees missing from the rows in the entire acreage, which shows the management has given them a great deal of care and attention. The trees bear coffee in two or three years after the last transplanting, and continue to produce for about 40 years. Great care is exercised in keeping the coffee fields free from the rank undergrowth, it being the custom for the native laborers to go over the entire plantation two or three times a year with machetes and cut down all obnoxious growth, giving the coffee the full nourishment of the soil. A very important feature of our property is the fact that its altitude permits of growing coffee without artificial shade. Coffee plantations on a lower altitude are obliged to grow shade trees between the rows of coffee, and thus lose a great deal of the productiveness of the soil. The trees are planted in rows 6 feet apart, and it is estimated there are three hundred and fifty (350) to four hundred (400) coffee trees to the acre, and 14 The German-American Coffee CompanyBearing coffee trees; also mountain trail, Triunfoaccording to the record shown me there are at the present time on El Triunfo proper, four hundred and sixty-three thousand, one hundred and eighty-six (463,186) bearing coffee trees, and also about one hundred and forty thousand (140,000) trees which will mature in one, two and three years. OTHER PROPERTIES In the journey to Triunfo our party visited a number of the best coffee plantations both in this and the east central part of the Republic, known as the Vera Cruz district, but I failed to find a coffee plantation which could compare with ours in the general appearance of the trees, the quality or quantity of the berries, or the complete manner of handling the crops. The trees on Triunfo average about 12 feet in height, and are strong and hardy. At the time of my visit they were hanging full of bright red berries which the natives were picking as rapidly as possible. It is estimated that our trees will produce on an average of two and one-half pounds per tree at their present age. Some trees will yield as much as 20 pounds or more per tree. Last year, I am told, the yield from one tree was 30 pounds. As a great many of the trees are pruned each year, producing no coffee that season, the average yield per tree is brought down to the above figure. The system of pruning on Triunfo is one of the reasons our trees are above the standard of that country in yield and quality. Each year the trees are gone over, the surplus foliage and old branches being cut off. On some trees all branches are removed and the tree cut to within two or three feet of the ground. (They bear no coffee that season, but new branches grow at once and the next year they yield a still larger crop.) 16 The German-American Coffee CompanyCoffee mountain, trees 10 to 15 feet high, Triunfo18 Mountain slope, showing Tull-bearing coffee trees, TriunfoThe rich soil and the hardy trunk give better nourishment to the branches, and the quality of the berry as well as quantity are better. The actual shipments of Triunfo coffee during 1904 were six hundred and forty thousand (640,000) pounds, and it is estimated the yield for this year will exceed seven hundred thousand (700,000) pounds. I spent a great deal of time walking and riding over the property, and must say I was agreeably surprised at the condition of the coffee trees, as I expected to find at least a few that would not be strong and hardy, which was the condition on other plantations we visited. Instead, I did not see a dead or stunted tree, and I take this occasion for complimenting the management on the unusual care of the trees, as well as the business-like manner in which the property in general is handled. The stockholders who have not visited the Triunfo properties can have no idea of their magnitude and the many difficulties which were overcome in making them the finest coffee plantations in Mexico. It is the intention of the management to plant three hundred and fifteen (315 ) acres of corn this season, and the expected yield is about fifty-six hundred (5600) bushels. I have approximated the yield to be the same as last year, the acreage being the same. Enough corn is grown to supply the requirements of the plantation and also for the needs of the natives. BUILDINGS ON TRIUNFO The residence and office is a two-story frame building with a basement, and has 14 rooms besides a kitchen and work rooms in the basement. The office of the plantation occupies the northeast corner of the first floor, the balance of the rooms being used as living rooms by Mr. Rau and his assistants. The 19 German-American Coffee CompanyThe house was built nine years ago, is nicely finished and has all the modern conveniences. COFFEE BENEFICIO The coffee beneficio is certainly a wonder, especially when one stops to consider the difficulties in getting the machinery through the tropical wilderness from the seaboard to Triunfo. The beneficio consists of a 30 horse-power engine, boilers, a coffee huller, two dryers, two pulpers, a separator, a machine for washing the coffee, centrifugal machine for drying and a machine for manufacturing ice. There are also three large cement tanks for fermentation and one tank for washing the coffee. With the water power which is abundant on Triunfo, the beneficio is so constructed that the coffee is handled by water, and thus saves a large expense in the item of labor. The water is supplied by a mountain stream which empties into a large reservoir, and from this through a cement runway into a large tank outside the beneficio, into which the natives dump the coffee which they bring to the plant. By opening the runways, the water carries the berries first to the pulper, then to the fermentation tank, where, after fermenting from 24 to 36 hours, the water carries the coffee to the washing tank and finally out of the building through a cement channel on to the patao, which is a cement floor, 75 x 150 feet, where the coffee is spread out to dry in the sun. When there is insufficient sun to dry the coffee, it is placed in the large cylinder dryers in the beneficio, through which a strong draft of hot air is forced. It is then put in the receiving tank, from which it is sacked ready for shipment. 20 The German-American Coffee CompanyManager Rau ' 21 (wearing helmet) and his assistants, Triunfo22 Laborers’ buildings in course of construction, coffee in background, TriunfoThe following buildings are located on the mountainside, near the residence : A large coffee warehouse. A small warehouse for corn, etc. A barn. A building used as a post and telegraph office. A machine shop. A large store, part of which is used as a dwelling for the clerks. The store carries a large stock of merchandise and enjoys a heavy business. The safe for the past year were very large and showed an increase over the preceding year. Buildings which are situated at the foot of the mountain are as follows: A church, constructed of corrugated iron, 72 feet long, 24 feet wide and 24 feet high, with a steeple 53 feet high. The church, which had been recently constructed, is intended for the use of the natives. The company is building the parsonage for the priest, who will soon be living at Triunfo There are also two large buildings for clerks, three buildings for inspectors or overseers, and 92 laborers’ houses, which are about 12x15 feet each, and are constructed of galvanized iron, which can be used to advantage, as the altitude makes it cooler at Triunfo than in the lowlands. There are also 10 laborers’ houses under construction, which will be completed shortly. In addition to the above mentioned buildings, there are two large frame buildings, large enough to accommodate 300 persons and which are used by transient laborers. In all, over 100 substantial buildings are at El Triunfo headquarters. There is a wide street, paved with cobble stones, with gutters on both sides, extending from the manager’s residence down into the valley, thence half way to the top of the opposite mountain, about half a mile The 23 German-American Coffee CompanyEdge of new clearing, Triunfodistant. The laborers’ houses are located on both sides of this street. There are about 3000 natives living at Triunfo and associated properties. During the coffee picking season the women and children assist, and thus the work of gathering the coffee berries is greatly facilitated. The management pays one-half cent, Mexican money, per pound for the picking and delivering of coffee at the beneficio. A great many of the native laborers live on the associated properties, from which they are drawn whenever occasion requires. They receive on an average of 50 cents, Mexican, per day, and seem contented and willing to work. This is about one-half the cost of labor in Vera Cruz and Cordoba districts. BANK, TELEGRAPH, TELEPHONE, ETC. A branch of the Bank of Chiapas, of Tuxtla Gutierrez, the capital of Chiapas, is located at Triunfo, with Mr. Rau as agent, giving the company ample facilities for transacting business with the outside world. The Federal Telegraph Station is located on the property. The line is owned jointly by our company and the government, and extends to Salto, where connections are made with the government wires, affording communication with the outside world. The service is practically as good as that rendered by the telegraph companies in the States. While at Triunfo I had occasion to telegraph to Sioux City, Iowa, receiving a reply in about 24 hours. The company’s properties are well connected by telephone, giving Mr. Rau the advantage of quick communication in the managing of the affairs at the different properties. The post office at Triunfo has mail delivery daily—three days a week from Salto and three days from San Cristobal. The 25 German-American Coffee CompanyCoffee seed nursery, TriunfoRAVANCHA AND MACHUYIL With Mr. Rau as guide for the party, we left Triunfo for Ravancha, which is about two hours’ ride from Triunfo. At this point the company has a store and residence for the superintendent, also several laborers’ houses and a pulping machine. This property is given over to the growing of corn and coffee, and we now have in storage at Ravancha approximately 4000 bushels of corn and 23,000 pounds of coffee. On the property there are over 40,000 bearing coffee trees. The coffee grown at this place is sent over the trail to Triunfo, from which place it is forwarded to our roasting plant in New York. After a short visit with the superintendent and partaking of a hearty dinner, we left, going over the mountains to Machuyil, which is about 2500 feet above sea level. This is one of the most picturesque places in the district, and has, besides several well-constructed labor houses, a store and superintendent’s residence, and a church for the natives. There are several Indian villages on Machuyil, inhabited by the laborers, who live in their native huts. Everything concerning our comfort was looked after everywhere, and we were given every means of seeing the interesting points on the plantation. On the mountain sides there are 32,000 bearing coffee trees, and in the warehouse 23,000 pounds of coffee is stored. They also have at this place a pulping machine, the coffee being handled much in the same manner as at Ravancha. We found wild tropical fruits in abundance, bananas, lemons and oranges flourishing in this district. Triunfo and annexed properties range in altitude from a little above sea level to 5000 feet, which is the extreme altitude of Triunfo proper. Some of the properties are adaptable to the cultivation of various products, while the higher lands, like Triunfo, are more suitable The 27 German-American Coffee CompanyMachuyil, one of the Triunfo propertiesfor coffee, lemons and oranges. One of the properties, Chuctiepa, for instance, ranges from river level to about 1500 feet above. On this property, in the medium altitude, are wild castor trees, producing the castor bean, and wild indigo. This land is particularly adapted to cultivation of vanilla and cacao, and some wild rubber has been found in the forests. On this property our vanilla is being cultivated at present. Our party was much pleased to learn of these things and suggested that mention be made in this report of the great possibilities, should we wish to cultivate all of these diversified products as our business develops. The Triunfo properties consist of Triunfo and Porvenir, La Cruzada, Trinidad, Las Nubes, Ravantha, Machuyil, Chuctiepa and Mayoral, comprising in all over thirty-eight thousand (38,000) acres, and, with the Iowa, five thousand and forty-one (5041) acres, gives a total of over forty-three thousand (43,000) acres. After several trips over the property, in many instances on foot, considering carefully all the conditions, I find that the work is done in the best possible manner, and is characterized by a system of thoroughness in operation on no other coffee plantation we visited. As stated, we visited the best plantations between Mexico City and Vera Cruz which were producing the best coffees of the Vera Cruz district. At that time it appeared to us that these plantations looked well in general and the members of our party remarked that if they saw as nice trees on Triunfo they would be satisfied. We then did not realize what was possible in a coffee plantation and not until we reached Triunfo did we begin to ' comprehend what could be accomplished in the development of a coffee property. In going over that trail from Cruzada to Triunfo, it seemed that we were going farther into a mountain wilderness, where we could hardly expect to find anything in comparison with the other plantations. But after leaving Porvenir we went for several miles through The 29 German-American Coffee Companyfields of sturdy coffee trees with beautiful dark green, waxy leaves and loaded down with red ripe fruit, until we rounded a point on the hillside and gazed upon a sight that filled us with wonderment. Here before us in the valley and on the side of an opposite hill, the headquarters of El Triunfo came into full view. On all the surrounding hills was row upon row of coffee trees such as described, and with the fine looking residence and other buildings, and the beneficio in operation, we stood still for a few moments to gaze and wonder how such a thing could spring up in a wilderness. After our hard trip over a rocky mountain trail, the place seemed like a paradise in comparison to what we had gone over. In explanation of my enthusiasm, which was shared by every member of our party, I can only state that I am sure any stockholder would feel as we did; that words are inadequate to impart to our members the beauty and magnitude of the place. It is clear now to us why every person who has visited Triunfo has been profuse in praise of it, and why Prof. Starr of the University of Chicago, who has covered nearly every accessible portion of Mexico, makes the statement that nowhere had he seen a finer plantation of coffee. From Mexico City to the Guatemala border, Triunfo is generally conceded to be the largest and best coffee plantation, and whenever spoken of, the statement, “a very fine plantation ” accompanies the remark. PLANTATION MANAGEMENT If you could see Mr. Rau in active management, where he is familiar with every acre of land and has all details under a masterly control, you would not wonder so much at the success of Triunfo. Intelligence and determination from the beginning have marked every stage 30 The German-American Coffee CompanyFull-bearing coffee trees, Triunfoof development, from the time when he resigned as an officer of the German Army and came to Chiapas n years ago, selecting a fine tract ofjand for a coffee plantation. When it was nothing but a dense mountain jungle, he blazed his way through the forest and located his base of operations with nothing more than the crudest hut as a residence and only such food as was obtainable among mountain Indians, until he could improve the conditions. Later he brought over intelligent assistants, graduates of the agricultural colleges of Germany, and with them has carefully studied conditions and cultivated coffee under entirely different methods from any other planters in the country. Their work has resulted in producing the finest coffee grown in that country. When the crops matured and were shipped to European markets they were graded above, and brought the highest prices paid for anything grown in the Republic. This fact itself is conclusive. Seven members of our party are representative men from different localities where considerable stock of our company is held. These gentlemen made the trip at their own expense, and having no connection with the company except as stockholders, they went to investigate their own investment, and naturally made every effort to post themselves concerning different features of coffee cultivation and conditions of the country in general. Any business man of ordinary intelligence, going at it in the right way, can get at the foundation of such matters in any country, and we learned that there are unsuccessful as well as successful coffee plantations in Mexico, just as there are farmers and other business ventures of both the profitable and unprofitable classes in every community of the United States. There is always a good reason for success or failure. From reliable people, experienced in coffee culture, we learned that there is a great difference in quality and price between coffee pro- 32 The German-American Coffee CompanyPeerless coffee trees of Triunfoduced on high lands, where conditions are more often found suitable, and that grown in the lowlands, where the poorer grades are found and the cost of producing is greater. Through lack of knowledge, coffee lands are sometimes selected in localities convenient for transportation, but experience has shown that this saving is more than offset by the difference in the price of labor and the superior quality of coffee grown in higher altitudes. This is easy to understand when it is known that in lower altitudes, artificial shade has to be furnished at considerable expense ; the yield of the tree is less ; labor costs more in the low, hot lands than the high, and in fact it costs more in every way to produce where it is necessary to constantly combat unnatural conditions. It is not always possible to produce perfect coffee even in high altitudes, for the reason that the coffee berry gets its flavor from the soil. Combined with proper altitude and soil, the climate as well must be suited, and the plantation must be well supplied with natural water for washing the coffee. With all these natural advantages, the selection of good seed for nurseries; proper transplanting and care of the trees while maturing; picking of the coffee at the right time and curing it properly—all, combined with good business management, are features which make for success. But it takes money to cover all this expense of land and labor until the first crop is harvested, when, as in this case, those who are willing to furnish it will be rewarded with the profits. I have gone into this detail quite fully, to give you the benefit of our observations and information while on our visit to Mexico, and to let you form your own conclusions after you have read this report of the actual conditions as I found them on our plantation. When our stockholders elected me as inspector to visit the property in their interest, I promised to get all the information I could that had a bearing on our investment in any way, and can only say that I have tried to show my appreciation by making everything as clear as I am able. 31 The German-American Coffee CompanyLaborers on cement patao, TriunfoHad I found adverse conditions I would have stated them no less plainly, but it surely is more gratifying to me, and more pleasing to you all, to be able to bring a good report showing what is accomplished and in existence, rather than to state what we expect to accomplish in the future. The members of our party, I know, feel as I do, for they have gone over the report and requested me to ask the management to allow them to make the statement which they have signed. I wish to say that we confirmed the statement in the company’s literature concerning the difference in quality between the coffee grown in the Central American or Guatemala district, where we are located, and that known in this country as the Mexican variety. The “ Mexican ’ ’ coffee is that which is grown in the Vera Cruz district and is shipped from the port of Vera Cruz to the United States, but the best of this goes to Europe. The coffees grown in Chiapas bordering on Guatemala are not known as “Mexican” or even Chiapas Coffees, and are not shipped to the United States, but go to Europe as “ Central American ” or “Guatemalas,” and are no more to be compared in quality or price with “ Mexicans” than the fine products of Guatemala. Mr. Rau told us he had received as high as 23 cents in gold for his coffee in Europe^ which at that time was 7 to 10 cents per pound more thatr thefMexican variety brought. From a Commercial standpoint the roasting of coffee is considered a profitable business, but as we are able to produce our own coffee and not only save the grower’s profit, but the importer’s and broker’s commissions, it seems reasonably that the valuation and profits of the combined properties and roasting plant should increase rapidly. I visited the general offices, roasting plant and warehouse at 406 Greenwich Street, New York City. This is a brick building, 50 x 80 feet, and is one fof the substantial and prominent buildings of that locality. The interior has been remodeled so that it is especially \ 36 The German-American Coffee CompanyBranch of coftee tree, showing berriesTank for receiving coffee berries, TriunfoMachinery for removing 39 the pulp from coffee berries, in operation, TriunfoEngine room in coffee beneficio, TriunfoReservoir, showing reserve 41 supply of water, supplied from mountain stream, Triunfoadapted to the convenience of a wholesale coffee roasting business. I might add that the building is located in the wholesale district, near ihe depots of the railroads and steamship lines, giving them the advantage of quick service. The roasting plant is equipped with the latest improved machinery, and at the present time has a capacity of roasting over 25,000 pounds of coffee per day. It was very interesting to our party to visit the plant and see it in full operation, but as the “Spice Mill" a reliable trade journal, has recently given a very full description of the plant, the writer believes same should be reproduced here, thus showing the favorable comments made by those competent to judge and compare roasting plants in an intelligent manner. (Extract from February Spice Mill) MODEL PLANT OF THE GERMAN-AMERICAN COFFEE COMPANY ‘‘We are glad to be able to present to our readers this month some pictures* showing one of the most interesting of the new coffee roasting establishments in New York City. This is the plant operated by The German-American Coffee Company in their headquarters at the corner of Greenwich and Hubert Streets. One unusual feature of the plant is that the article these people begin with is not ordinary green coffee, but coffee in the parchment. They import from their own plantation in Mexico ; and the hulling, or removal of the coffee from the parchment, is not done at the plantation, but here in New York. It is claimed that this method of shipment, although it adds to the freight expense, adds more to the excellence of the coffee. Our picture of the top story of this factory building shows a general view of the green coffee apparatus, as well as the roasting plant, * See reproductions on pages 57 to 65 of this book. 42 The German-American Coffee CompanyManufacturing ice on TriunfoCoffee beneficio and other buildings, Triunfothough the latter is shown more clearly. It will be seen at a glance that it is a very roomy, well-arranged establishment. The building was altered considerably to suit it as perfectly as possible for coffee roasting requirements. A section of the wood floor in the left-hand side of the room, as seen in the picture,' was removed entirely and replaced by a fireproof floor made with 15-inch steel I-beams and brick arches. This fireproof section is long enough for a io-roaster plant, and openings have been left in the brick arches for the cooled coffee floor hoppers which would be required for such a plant. A large skylight was put in the roof, and the picture shows how well this is placed to give light where needed in front of the roasters. Considering in detail, first, the green coffee machinery at the right hand side of the room, it will be seen that galvanized iron bucket elevators are provided for every machine to handle the goods without labor. These elevators extend through lower stories so coffee can be dumped in quantity in bins which feed the elevator boots. The machines seem crowded in the picture, but there is ample working space at every point, and the elevator, bins and spouts are so arranged that coffee can be sent through various operations with the greatest convenience. The outlet gate of each bin is controlled by a rack and pinion rig, operated by a hand wheel on the pinion rod above the floor as well as below. At the extreme right is seen the huller, for treating parchment coffee, with a feed elevator close to the left of the huller. The fan attached to this machine blows the loose hulls up into a collector on the roof, from which they are delivered clear down to the cellar, six stories below, through the large inclined pipe in front. The hulls are burned under the boiler, mixed with coal. The 45 German-American Coffee CompanyDrying coffee on the cement patao, TriunfoBehind the hull elevator is seen the frame of the large green coffee separator and cleaner, where the coffee is graded uniformly as to size of beans, and all loose dust and foreign material is sifted out or removed by air suction. The fine material, lifted by the fan, is collected as before in a receiver placed on the roof. Using the roof in this way for the various dust collectors makes an important saving in space in the green coffee department and prevents cutting off light from the various machines. Further to the left, just to the right of the center columns, is the big cylinder of the green coffee mixer and polisher, which handles 20 bags of coffee at a time. This machine is considered one of the most important features of the plant. It blends various coffees together, with absolute certainty that every handful of the 20-bag mixture will have the same proportions of each sort of coffee ; and while the coffee is being mixed the friction loosens from it every bit of dirt and scale, and this is carried away by a strong current of air. This air current is product d by a fan hung to the ceiling, just to the right of the girder by the second post. The lower part of the suction pipe, close to the mixer, is enlarged into a chaff box where the coarsest stuff is collected and may be withdrawn separately. This chaff box is seen just to the right of the first post. From the further end of the mixer can be seen the large bin in which the 20-bag batch of coffee is collected, ready for spouting into the mixer. There is a similar bin over the boot of the feed elevator, and another bin of the same size under the machine, to receive the batch of coffee after it is mixed and cleaned. The mixer cylinder is not stopped for filling or discharging, but runs continuously like a roaster cylinder. The can on the floor between the mixer and the second post receives the dust from the mixer collector on the roof, and the similar can to the left of the post is connected with another collector on the roof for chaff which is separated from the coffee after roasting. The 47 German-American Coffee CompanyPack mules loaded with Triunfo coffeeTriunfo mule train leaving 49 for Cruzada. General view laborers’ homes and new church in distance.50 The German-American Coffee CompanyWarehouses at Trinidad, one of the Triunfo propertiesSugar cane at Las Nubes, one of the Triunfo properties At Porvenir, one of the Triunfo properties J2 f The German-American Coffee CompanyThe cooler boxes, on tracks, are of the tip-top pattern, which discharge the cooled coffee, without any lifting effort, into the floor hopper. Directly above the cooler pipe are hung the fans which serve for cooling, stoning and chaffing the roasted coffee. The countershaft which drives the fan is seen to the left, and this shaft is driven by belt direct from a special motor, which is hung to the ceiling beyond the fans. Our second picture shows the lower part of the cleaning and stoning apparatus for roasted coffee, under the roasting space; as well as the various bins, elevator legs and chutes under the green coffee machinery. It will be seen that the roasted coffee coming from the floor hopper above (into which it is dumped from the cooler boxes) passes first to a revolving screen. This screen sifts out all small particles, and the coffee passes out at the lower end of the screen to the “ chaff pipe.” There is a current of air up this pipe sufficient to lift anything lighter than coffee beans. This separates all the chaff, which is carried up into a collector on the roof of the building. The coffee itself passes on from the end of the chaff pipe into the boot of the “ stoner pipe,” where it meets a stronger current of air, sufficient to lift the coffee itself, but permitting all stones and other heavy particles to drop into the bottom of the pipe. The coffee is elevated clear to the roof of the building, and drawn out as desired in the roasting room. The outlet pipe from the stoner hopper is shown plainly in the picture of the roasting room. This is a galvanized pipe 6 inches in diameter, which comes down to the left of the second post, under which a bag is shown in a bag holder, filled with coffee. Since the photograph was taken from which our pictures are made, an important further addition has been made to the equipment of this plant. This consists of a line of galvanized iron storage bins for roasted The si German-American Coffee CompanyThe company’s steel warehouse at river landing, CruzadaView of river landing, taken from warehousecoffee. These are hung to the ceiling underneath the roasting room and they are filled by means of a car which receives coffee from the stoner hopper outlet pipe, at the point where the bag holder is shown. It will pay anyone interested in coffee machinery equipments to visit this plant of The German-American Coffee Company when opportunity offers. All details of the apparatus have been carefully worked out in a very practical way, and the result is an unusually efficient arrangement of the best modern machinery.” Returning home from New York, I visited the offices of the Western Branch at Chicago. I had visited the Des Moines branch, which is the company’s distributing point for Iowa, before leaving for Mexico. At all of the offices, everywhere I found the representatives busily engaged and a general air of prosperity was apparent. I wish to thank the officers, especially at New York, for their many courtesies, in affording me every facility for a thorough investigation, and it affords me great pleasure to say that it seemed clear to me that the management is doing everything possible to build up a large and successful business. They all impressed me as being capable in their different capacities and surely the success of our commercial business is due to their efforts. I have endeavored to give the information I would want myself from an inspector, and have stated facts as they appeal to me. Again thanking you for electing me and placing a most enjoyable trip at my disposal, I respectfully submit my report. 56 The German-American Coffee CompanyTriunfo coffee in our 57 factory, corner Greenwich and Hubert Streets, New YorkFour coffee roasters in operation at our factoryCooling pans, mixer and other machineryStorage bins for receiving roasted coffee from floor aboveOutlet pipes connecting storage bins on floor above with packing roomSTATISTICS—EL TRIUNFO . Number acres planted in coffee, about.............................L5°° Number coffee trees per acre.................................350 to 400 Number coffee bearing trees.......................................463,186 Number coffee trees which will mature in one, two and three years, about..................................................140,000 Number coffee trees in nursery, suitable for planting this year. . 50,000 Number coffee seedlings in nursery, ready for transplanting next year ....................................................100,000 Number coffee trees now ready to be planted........................15,000 Yield of coffee, in pounds, 1904 crop.............................640,000 Estimated yield of coffee, 1905, in pounds........................700,000 Number acres corn to be planted this year.............................315 Estimated yield of corn, in pounds, for 1905......................300,000 Number acres sugar cane on Las Nubes Property..........................75 Number vanilla vines planted and now being cultivated .............10,600 Where the words “ about” or “ estimated ” are used, the writer has used the minimum amount or quantity, as Mr. Rau is very conservative in giving figures and there is no doubt but what the amounts would exceed the figures given. BUILDINGS, MACHINERY, ETC. Administration building................................................ 1 Post office and telegraph station.................................... 1 Coffee beneficio, with complete machinery for handling coffee 1 Ice machine............................................................ 1 Store building, with dining room and sleeping rooms for clerks, etc................................................................ 1 Large store building under construction................................ 1 Large coffee patao, cement floor, 75 x 150 feet ....................... 1 Laborers’ buildings, accommodating 300 persons......................... 2 Laborers’ dwellings, constructed of galvanized iron and native lumber.............................................................92 Cane mill on Las Nubes property ....................................... 1 62 The German-American Coffee CompanyMISCELLANEOUS Waterworks system ...................................................complete Miles telegraph line...................................................... Miles telephone connecting all the properties with El Triunfo, about............................................................... 75 Number laborers, including families, living on El Triunfo properties ............................................................. $>006 Number mules on El Triunfo properties, used for transportation purposes............................................................ 200 Number cattle on El Triunfo properties....................................100 SUMMARY OF EL TRIUNFO AND EL PORVENIR AND ASSOCIATED PROPERTIES ACREAGE Hectares Acres Triunfo and Porvenir 2,500 6,585 Trinidad 30 75 Cruzada 87 215 Mayoral • • • .2,500 6,585 Machuyil .... 2,284 5,642 Ravancha 2,500 6,585 Chuctiepa • . 4,372 10,799 Las Nubes .... 700 i,73° 14,973 38,216 Iowa plantation . . . 2,020 5,°4I Total of combined properties. . . . • • • 16,993 43,257 The 63 German-American Coffee CompanyStoner and separator Roof hoppers Aging Coffee 64 The German-American Coffee CompanyTriunfo coffee in parchment A corner in packing roopi En route to one of our western distributing points The 65 German-American Coffee CompanyThe following letter is a copy of our plantation manager's reply to an inquiry made by one of our stockholders. El Triunfo, February 18, 1905. In reply to your letter of Jan. 26th, will say that the properties in Chiapas, Mexico, owned by The German-American Coffee Company, consist of about forty-five thousand acres in all. At present, Mr. A. E. Line of Sioux City, Iowa, is here as inspector, also several other gentlemen from the States, who have invested in the company, and I have requested these people to give me a signed statement stating what they think of our properties, as I know they have been visiting other plantations also, and believe you would like to know exactly how these gentlemen feel about their investment, as they have no other interest in the business only as stockholders. We claim to have the largest and best developed plantation in Mexico, and this statement will, I believe, be verified by any and all who have visited our properties. You will soon receive the inspector’s report, which will give detailed information, so it will not be necessary for me to do so now. We have telephone connections from here to Cruzada, where we have a large warehouse; we also have a telegraph office, post office and the agency for the Chiapas Bank. In all, about 3000 people live on our properties. Should you wish further information after reading the inspector’s report, I will be pleased to give you same. I am a large stockholder in the company and not a share of my stock is for sale. Mr. Fahrholz, who is manager of the Iowa property, is also a stockholder in the company. I am manager for The German-American Coffee Company, also have charge of the post office here. Yours very truly, (Signed) HENRI RAU. 66 The German-American Coffee CompanyEl Triunfo, P'ebruary 18, 1905. To Whom It May Concern : This is to certify that we, the undersigned, have visited a number of plantations in different parts of Mexico during the past few weeks, and find that the properties owned by The German-American Coffee Company are all and more than they claim for them. We wish to state, also, that the management and work are far superior to any other plantations we have visited. We do not hesitate to say that we firmly believe all who have invested in the company will receive good returns and that the stock of the company will advance rapidly. Signed: S. D. STOUFER, Waitsburg, Washington, D. H. MILLER, Kearney, Nebraska, E L. AVERY, D. D. S., Howell, Michigan, WILLIAM BAYLIS, Cedar Rapids, Iowa, ALBERT ETTING, Grand Island, Nebraska, C. T. BALLOU, Boone, Iowa, A. E. LINE, Sioux City, Iowa. The 67 German-American Coffee Company68 Roasting plant and general offices, Greenwich and Hubert Sts., New YorkTHE IOWA PROPERTY Following is a list of buildings, etc., with illustrations, of our Iowa rubber, cattle and vanilla plantation, located on the Michol River about 10 miles from La Cruzada and 30 miles from Triunfo, in the best rubber district of Mexico or Central America. This property has over 500,000 rubber trees, one, two and three years old, in perfect condition, and clearings made and ground prepared for planting about 250,000 more this year. The inspector and party pronounced it the largest and best rubber plantation seen by them on their entire trip through the Republic, and particularly well suited to cattle raising. 1 Administration building. 1 Store and office. 1 Large barn. 1 Corn warehouse. 1 Large building for single laborers. 36 Buildings for laborers and their families. 1 Resident Manager. 1 Storekeeper. 1 Head foreman. 2 Field clerks. 15 Clerks, carpenters and other employes. BUILDINGS EMPLOYES NATIVE LABORERS Regular laborers Contract laborers 97 108 Total laborers. ... 205 The German-American Coffee Company70 Headquarters, “Iowa” property*Evening scene on “ Iowa.” Laborers being paid for their day’s work72 Cultivated rubber trees opposite ‘‘Iowa” store, showing a growth of over 10 feet the past year. Laborers’ homes in backgroundPineapples, and building 73 used for unmarried male laborers, “ Iowa ” property74 General view, showing store with addition for clerks’ living rooms; also poultry house* pineapple field, etc.Among the cultivated rubber trees, “Iowa” propertyCultivated cattle pasture, laborers’ homes in background“Iowa” driveway, lined with 77 bananas and rubber. Store and headquarters in the distanceRubber trees of the earlier planting, interspersed with thrifty young treesCultivated rubber trees over 30 feet high, “Iowa'” propertyOFFICERS The Officers of the German-American Coffee Company are: H. D. BROWN, W. F. JOHNSTON, President Vice-President C. A. DIEHL, ABRAHAM LINCOLN, Treasurer Secretary W. J. LINCOLN, Chairman Executive Board BOARD OF DIRECTORS HENRI RAU J. E. STOUFER W. J. LINCOLN JOHN O’NEIL H. D. BROWN H. H. PICKING C. A. DIEHL W. F. JOHNSTON C. T. BALLOU ABRAHAM LINCOLN OFFICES 406 Greenwich St. New York 100 Washington St. - Chicago 300 Observatory Building Des Moines ROASTING PLANT 406 Greenwich Street, 19 to 27 Hubert Street - New York 80 The German-American Coffee Company