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ers and with a cash capital somewhat larger than Anchuria's surplus and debt combined.

Reasonably an established concern like the Vesuvius would become irritated at having a small, retail republic with no rating at all attempt to squeeze it. So when the government proxies applied for a subsidy they encountered a polite refusal. The president at once retaliated by clapping an export duty of one real

per

bunch on bananas a thing unprecedented in fruit-growing countries. The Vesuvius Company had invested large sums in wharves and plantations along the Anchuria coast, their agents had erected fine homes in the towns where they had their headquarters, and heretofore had worked with the republic in good-will and with advantage to both. It would lose an immense sum if compelled to move out. The selling price of bananas from Vera Cruz to Trindad was three reals per bunch. This new duty of one real would have ruined the fruit growers in Anchuria and have seriously discommoded the Vesuvius Company had it declined to pay it. But for some reason, the Vesuvius continued to buy Anchuria fruit, paying four reals for it; and not suffergrowers

to bear the loss. This apparent victory deceived His Excellency; and he began to hunger for more of it. He sent an

ing the

emissary to request a conference with a representative of the fruit company.

The Vesuvius sent Mr. Franzoni, a little, stout, cheerful man, always cool, and whistling airs from Verdi's operas. Señor Espirition, of the office of the Minister of Finance, attempted the sandbagging in behalf of Anchuria. The meeting took place in the cabin of the Salvador, of the Vesuvius line.

Señor Espirition opened negotiations by announcing that the government contemplated the building of a railroad to skirt the alluvial coast lands. After touching upon the benefits such a road would confer upon the interests of the Vesuvius, he reached the definite suggestion that a contribution to the road's expenses of, say, fifty thousand pesos would not be more than an equivalent to benefits received.

Mr. Franzoni denied that his company would receive any benefits from a contemplated road. As its representative he must decline to contribute fifty thousand pesos.

But he would assume the responsibility of offering twenty-five.

Did Señor Espirition understand Señor Franzoni to mean twenty-five thousand pesos?

By no means. Twenty-five pesos. And in silver; not in gold.

“Your offer insults my government,” cried Señor Espirition, rising with indignation.

“Then,” said Mr. Franzoni, in warning tone, "we will change it."

The offer was never changed. Could Mr. Franzoni have meant the government?

This was the state of affairs in Anchuria when the winter season opened at Coralio at the end of the second year of Losada's administration. So, when the government and society made its annual exodus to the seashore it was evident that the presidential advent would not be celebrated by unlimited rejoicing. The tenth of November was the day set for the entrance into Coralio of the gay company from the capital. A narrow-gauge railroad runs twenty miles into the interior from Solitas. The government party travels by carriage from San Mateo to this road's terminal point, and proceeds by train to Solitas. From here they march in grand procession to Coralio where, on the day of their coming, festivities and ceremonies abound. But this season saw ominous dawning of the tenth of November.

Although the rainy season was over, the day seemed to hark back to reeking June. A fine drizzle of rain fell all during the forenoon. The procession entered Coralio amid a strange silence.

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President Losada was an elderly man, grizzly bearded, with a considerable ratio of Indian blood revealed in his cinnamon complexion. His carriage headed the procession, surrounded and guarded by Captain Cruz and his famous troop of one hundred light horse "El Ciento Huilando.Colonel Rocas followed, with a regiment of the regular army.

The president's sharp, beady eyes glanced about him for the expected demonstration of welcome; but he faced a stolid, indifferent array

of citizens. Sight-seers the Anchurians are by birth and habit, and they turned out to their last able-bodied unit to witness the scene; but they maintained an accusive silence. They crowded the streets to the very wheel ruts; they covered the red tile roofs to the eaves, but there was never a "viva” from them. No wreaths of palm and lemon branches or gorgeous strings of paper roses hung from the windows and balconies as was the custom. There was an apathy, a dull, dissenting disapprobation, that was the more ominous because it puzzled. No one feared an outburst, a revolt of the discontents, for they had no leader. The president and those loyal to him had never even heard whispered a name among them capable of crystallizing the dissatisfaction into opposition. No, there

could be no danger. The people always procured a new idol before they destroyed an old one.

At length, after a prodigious galloping and curvetting of red-sashed majors, gold-laced colonels and epauletted generals, the procession formed for its annual progress down the Calle Grande to the Casa Morena, where the ceremony of welcome to the visiting president always took place.

The Swiss band led the line of march. After it pranced the local comandante, mounted, and a detachment of his troops. Next came a carriage with four members of the cabinet, conspicuous among them the Minister of War, old General Pilar, with his white moustache and his soldierly bearing. Then the president's vehicle, containing also the Ministers of Finance and State; and surrounded by Captain Cruz's light horse formed in a close double file of fours. Following them, the rest of the officials of state, the judges and distinguished military and social ornaments of public and private life.

As the band struck up, and the movement began, like a bird of ill-omen the Valhalla, the swiftest steamship of the Vesuvius line, glided into the harbour in plain view of the president and his train. Of course, there was nothing menacing about its arrival

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