Erwin Paul Dieseldorff, German PDF

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70-24,543
FALCON, Guillermo Nanez, 1936-

ERWIN 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
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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 ffith
Chairman
Professor Richard E. Greenl
Processor Frank L. Keller
Professor Pierre H. Laurent
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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

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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
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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.

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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; and the
gentlemen on the staff of W. E. Dieseldorff, Sues. 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

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(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).
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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
CHAPTER III THE EVOLUTION OF A PLANTATION COMPLEX:

PLAN OF ACQUISITION............................... 108
CHAPTER IV THE DIESELDORFF ENTERPRISE:

FINANCING AND ADMINISTRATION ..................... 127
CHAPTER V THE COFFEE BUSINESS:

INCREASED EXPORTS................................. 153
CHAPTER VI THE COFFEE BUSINESS:

HARVESTING AND PREPARATION OF THEC R O P ............ 207
CHAPTER VII TRANSPORTATION AND COMMUNICATIONS

IN THE ALTA VERAPAZ............................... 243
CHAPTER VIII LABOR ON THE PLANTATION COMPLEX:

UNSKILLED INDIAN LABORERS......................... 302
CHAPTER IX LABOR ON THE PLANTATION COMPLEX:

ADMINISTRATIVE, TECHNICAL, AND CLERICAL PERSONNEL. 349
CHAPTER X THE DIESELDORFF FIRM, 1900-1969:

EXPERIMENTS, CRISES, AND CHANGES ................. 385
CHAPTER XI ERWIN PAUL DIESELDORFF AND GERMAN SETTLEMENT

IN THE ALTA VERAPAZ: A RETROSPECTIVEVIEW . . . . 433
BIBLIOGRAPHY.................................................... *+55
vi
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LIST OF MAPS
MAP OF GUATEMALA . . ............................... 31
MAP OF THE ALTA VERAPAZ AND DIESELDORFF'S PROPERTIES 109
vii
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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. Moreover, the movement did
not produce consistent results. 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. After separation from the
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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.
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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-
2
tracts with several colonization impresarios, but none of the con
cessions were developed. 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 legisla-
tivo £ ejecutivo de Costa Rica, segunda edici6n oficial (San Jose,
1886), Vol. I, pp. 162-163.
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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.
Êphraim 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.
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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*.
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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,

9
expressed similar views.
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.
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As early as 18^1, List pointed out the need for a strong, well-
formulated 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.
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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

13
Marr, C. F. Reichardt, and Otto Stoll, 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, Wander-
bilder 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).
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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 in-

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crease the production of export commodities. 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.
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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
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the government of Prussia.
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.
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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
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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.
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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
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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
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proffered by the natural gifts of climate, soil, and geographical sit
uation, hut would provide the preceptors needed to enlighten the
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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 ill-
conceived, 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

20
law that would be both practicable and effective for Guatemala. On
February 27, 1879> Barrios affixed his signature to an immigration law,
which was based on the reports, suggestions, and collaboration of the

.* 21
Sociedad de Inmigracion.
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* 6-7- Mendez 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 J
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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

22
public auction.
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, Recopilacion de leyes agrarias (Guatemala, 1890),

pp. lUO—1^4-3. Hereinafter this work is cited as Leyes agrarias.
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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

23
for cultivation of these crops. 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

2k
without public sale.
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

25
required. 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 J
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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.^ Numerically, the results were
disappointing. In 1896 there were fewer than four thousand Europeans

27
and North Americans living in the country, and twenty-five years
28
later the number was approximately the same. 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*
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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
30
government accredited a Minister Plenipotentiary in Berlin, and to
accommodate the needs of a growing volume of trade it expanded its
consular corps in Germany from five representatives in 1885, to

31
eleven in 1902, to nineteen in 1913, with offices in sixteen cities.
For the most part these consular posts were occupied by Germans, many
of whom had businesses or investments in Guatemala and used their

32
office to disseminate propaganda favorable to Guatemala. 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**.
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likewise expanded its diplomatic representation to Guatemala by
33
accrediting additional consular posts 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 Nach-
richten, and thus these served to keep businessmen informed of develop-

35
ments and investment possibilities in Guatemala.
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. In 1908 there were eleven German con

suls in Guatemala.
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.
r 20l
In the other. The agreement also assured the perpetuation of German
nationality. 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
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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 twenty-
eight German business establishments, a number of which had a working

37
capital of more than 1,000,000 MarkB. 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 wbb about
. 39
1*0,000,000 Marks. * 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

1*0
trade to Guatemala, ranking second behind the United States, 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 Deutsch-
lands in Guatemala,” BeitrSge zur Kolonialpolitik und Kolonialwirtschaft,
III (1901-1902), p. 275-
38Ibid., p. 283.
3^GFMA, Reel 22, Frame 369* Newspaper clipping from the Nord-
deutsche allgemeine Zeitung, December 9» 1897*
1*0 .
Erckert, p. 27**; GFMA, Reel 22, Frame 300. Statistical chart
dated 1895-
1*1
Germany, Statistisches Jahrbuch fur das deutsche Reich. .
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

k2
continued to dominate the market. 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 J
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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 J
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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
Êrckert, p. 275 > Mendez, p. 30.
^Germany, Statistisches Jahrbuch (1911), p. 233.
L J
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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

46
than in the department of the Alta Verapaz. 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 pro-
duced 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 J
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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. Some
had come as contract workers; others, on their own. By 1880 there

1+7
were approximately twenty-five Germans living m the Verapaz.
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, levan-
tado en el ano de 1880 (Guatemala, l88lT, p. 150.
L J
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Between 1880 and 1900 approximately 150 Germans, including Erwin

1+8
Dieseldorff, settled in the Alta Verapaz. 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. In
Cohan they monopolized retail merchandising. 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. The Germans also attained certain
Deutschtum in der Alta Verapaz (Stuttgart, 1938), Table I, pp.

L77-8U. j
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 J
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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_ 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.
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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 "Familien-

Chronik,” 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 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, [1885-
1888], 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 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. As a young man he also worked for his brother in
Belize. 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. In the meantime, he heard of the Alta Verapaz,
a populous 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
Â. 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 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. There he met
Marie Rethey, whom he married in 1848. 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 . 14-
27; 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.
Â. D. Dieseldorff, "Familien-Chronik," pp. [27-29], DL.

7
Deutschtum in der Alta Verapaz, Table I. The date this book
gives is 1880, but they may have come as early as 1877•
L 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 J
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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.
■Âugust Dieseldorff in Coban and G. V. Lambe in London were

C. W.*s partners.
L J
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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,

12
1886, and also went to work for Leckie, 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 J
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£ 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 J
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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 J
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The sole offer Leckie felt he could make was to allow Dieseldorff to
deposit with the firm monies not to be used for commercial trans-
17
actions, on which the company would pay It % annual interest.
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 J
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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 Helm-
rich, 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 J
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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

19
the pulped bean. 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

20
partially developed property. 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 44]
the industry and frugality of German planters, and perhaps even more
21
so by the profits their efforts promised to produce.
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

22
them on their ratty gray hair and their grisly, unkept appearance."
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 of Coban, explored caves, and dug around old Indian burial
sites. 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 J
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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

23
the necessary connections in the business. 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* 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

2k
to suit him. 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

25
Jose to Champerico by boat, and from thence to Miramar by mule.
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
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
27
rejuvenate old trees that had ceased to yield a profitable crop.
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 J
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28
if he remained any longer. He had considered for some time a prop
osition to buy into a merchandise establishment in Guatemala City,
but during his stay at Miramar he definitely decided to buy a coffee

29
plantation, and he rejected the other offer.
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
30
Zollikofer asked was more than Dieseldorff could pay. 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

31
consult with his friends in the Alta Verapaz about a finca purchase.
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 mist-
lich 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.
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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
32
them under cultivation.
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.
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•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

36
purchase supplies for the trips.
■ÊPD to his mother,Letter # 25, April 17, 1889; Letter// 26

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, 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.
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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. The inherit
ance 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
37
to the remainder of the money due him as security.
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 J
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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 J
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Ho
and in June, 1890, he sold it to them at this price.
Of the amount received for Chamcarel Dieseldorff used 11,000
pesos to buy a contiguous, partly developed property, Seacte, from

Hi
his cousin W. A. Erwin still owed Slattery 15,000 pesos, which he
wanted to repay. 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. His food consisted chiefly of the Indian staples
corn and beans. 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 J
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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 J
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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. The years at Seacte
also had a sobering effect on him. 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

k5
beginning of the formation of the Dieseldorff plantation complex. 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 J
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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 J
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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 J
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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 . ^ After the honeymoon he brought Hanna to Coban
to live with him. 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. Medical facilities
in Cobfin at best were primitive. 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 J
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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

1*7
Berlin, until her death in 1933.
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.
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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 J
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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 J
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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 be-
came 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 J
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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.

50
Three days later his body was cremated.
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)

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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
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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

51
hospital in Cobifn with regular donations, and on different occasions
52
he offered money to improve the police force in Cobfin. 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 J
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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 J
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57
in Guatemala awakened his curiosity, 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 Dar-
stellung 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 J
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6l
and a clay vessel on which was painted a vampire-headed dlety.
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,

62
by the Bureau of American Ethnology. 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 archao-
logischen 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 sH
of the Indians of the Alta Verapaz.
In order to obtain first-hand data he visited the important

6*^
archaeological sites in Guatemala, and Cop&n in Honduras. 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

6k
History, the Peabody Museum, and the Field Museum of Natural History.
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. After several years’ research, he set forth
his conclusions in a three-volume work, entitled Kunst und Religion

6s
der MavavSlker. which he published at his own expense, in several
66
articles, 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. 65-
68; 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. 378-
386; Erwin P. Dieseldorff, "Wer waren die Tolteken?" Sonder-Abdruck
aus der Bastian-Festschrift (Berlin, 1896), pp. ^15-^18.
L J
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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,

68
who was engaged in a similar project. Some of Dieseldorff's theories
and conclusions were unorthodox, but he diligently reported his

69
findings in articles and in papers he read before the Twenty-third
TO
International Congress of Americanists in New York, 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 Inter-
nationalen 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 (Decem-
ber, 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. J
r
71
Geografia e Historia in Guatemala, the Sociedad Mexicana de Geografia
72 73
y Estadlstica, and elsewhere.
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 pre-
historia 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 J
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valley and at his finca Chajcar. In the 1890's. he donated some of

75
these to the Museum fur Volkerkunde in Berlin; 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

76
at Christmas or on his birthday. 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.
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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
78
consulted with him concerning their work. Dieseldorff and his
accomplishments were highly regarded by Guatemalans al3o, and in a
posthumous encomium a fellow member of the Sociedad de Geografia e

79
Historia affectionately referred to him as ”un viejo maya."
Concurrently with his Mayan studies Dieseldorff began in-

80
vestigating the medicinal plants of the Alta Verapaz. 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.
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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 classi-
8l
fying the flora of the department. 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.
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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. In 1909 he began to ship dried samples of the mesbe plant to

82
Hamburg, 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.
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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. Butzengeiger, "Erfahrungen mit Mesbe in der Behandlung
chirurgischer Tuberkulosen," Munchener medizinischen Wochenschrift,
No. 3 (1913), pp. 1-U; Dr. V. Chlumsky, *'Uber Mesbebehandlung bei
chirurgischer Tuberkulose und bei infizierten Wunden," Zentralblatt
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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 publi-

Or
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*+ ?]).
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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. The
sanatorium opened in 1913 on an 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 J
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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

86
States with the idea of rekindling interest in the mesb6, 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 -I
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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. It
took time and a great deal of work 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 J
R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w ith o u t perm ission.
r n
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

2
him the largest individual landowner in the Alta Verapaz. 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. The size of the enterprise tends
to obscure its modest beginnings; 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. The
methods he used to purchase land were conventional. 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 Diego-
Yalpemech 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 J
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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 Guatemalan-
owned 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 Vera-
paz 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 J
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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, 370-
374. 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 J
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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 lati-
fundia 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. Other buyers were less
wary. 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 J
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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 Chicuc-
Benlinim£ (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.
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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
13
paid 5,000 pesos for it three years before. 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

l4
had died a few months earlier. 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 2k , 1889; May 19,

1902), DS, Secol Box.
■^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 J
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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
17
Helmrich, daughter of the deceased August Helmrich.
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
1ft
Kensett Champney for 35,000 pesos. From Victor Barrientos and his
wife Dieseldorff in 1899 bought Raxpec for 3,500 pesos, which paid
19
off a mortgage on the land held by Jose Maria Noriega. 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
Land sale document for lots bought from Victor Barrientos
and his 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 J
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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 adjudica-
21
ted in public sale for 8,1+56.71 pesos. The price Dieseldorff paid
was moderate, because von Turkheim had paid 10,000 pesos for Cubilguitz
22
and 5,000 pesos for Yaxcabnal. 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. In 1902 Riensch & Held had lent more than
20,000 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 owner-
po
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 J
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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,
2k
had transferred title to the land to Gruttel.
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 J
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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

25
communities could obtain title to the lands they occupied. 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 J
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27
pro indiviso rights to the portion he claimed or occupied. 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
Pfi
totaled 25*t acres. 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
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 J
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*>
30
Margarita. In the same manner he increased the size of the noncon
tiguous fincas. At Raxahd he purchased eight lots (75 acres) directly

31 32
from Indians; at Raxpec, two (22 acres); 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 Cecilia-
Secac 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
67, Libro 13, AV, ier Lote (February 10, 1905), and under the same num
ber, 2° Lote (April 1, 1905), DS, Raxpec Box.
33
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 J
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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,
3U
1.87 pesos; Chamcarel, 1.17 pesos; and Sacchicagua, 1.1+3 pesos. 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

36
for Q 55- The other, .5I+ acres situated in Cob£n and mortaged for
10,000 pesos (Q 166.67), the owner transferred to Dieseldorff for the

37
amount owed. 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.
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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 Noriega, an agriculturalist from Guatemala
City. 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 J
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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
39
additional payments for any permanent cultivations, such as coffee.
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

1+0
for 20 pesos, in Santa Cecilia five lots that totaled about
1+1
ninety acres between 1899 and 1903, and in Chajcar two lots, eight
1+2
acres, in 1911. 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 Cecilia-
Secac 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 J
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. 1*3 . 1*1*
in the communal holdings of Chicansln and ten In Secansin. 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. He occupied the land
but could not register the lot in his name. 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 J
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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
52
to obtain land. 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
not only the purchase price but all costs involved In the denouncement
53
and subsequent legal process, the survey, 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 Raxtani-
quil£ (September 28, 1900), DS, San Diego-Yalpemech Box.
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In November, 1890, Dieseldorff did buy at public auction a
small baldlo of about 58O acres called Chiachal. This was a deliberate
move on his part. 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.,

55
as prescribed by law. 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-
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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. There is ample evidence of
this in the Dieseldorff land documents. 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*
59
pesos and the next month sold it to Ernst Altschul for 500 pesos.
■***Land title to Chiachal (April 2, 1891), DS, Secol Box.
~*Ê1 Porvenir (Cob£n, AV, Guatemala), An5 1, No. 31, August 25,
1889.
Cg
Land title to and land sale document for Chamcarel (April k,
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. 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

62
period of ten years after adjudication. 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
6k
enforce the law. 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 Diego-
Yslpemech.
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.
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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
or + 4.1.
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.
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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,

67
and covered the remainder between September and January. 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
68
in each case for about 135 pesos. 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. Except for their names there is scarcely any information
about them. 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.
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who used them as dummies to gain control of land they wanted.

69 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. The Indians, nevertheless,
all sold their land to Dieseldorff. 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.
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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

72
Indians had originally denounced the bald!os in December, 1906, 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.
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Ambrosio Ventura, and Bernardo Hernandez,'

73 to vhom the government
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
^înterestingly, 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 Diego-
Yalpemech 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 J
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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.
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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 J
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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
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.
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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 con-
centrate 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 J
R eproduced with perm ission o f the copyright owner. Further reproduction prohibited w ith o u t perm ission.
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 twenty-
three lots purchased between 1903 and 1923.
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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
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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
3
personal dwelling.
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.
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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,'’ and the stop was a rest for both animals and
drivers. 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 J
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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

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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.
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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
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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. In Coban he bought Chichalc to pasture the animals he
kept in town. 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 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
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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,
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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, but since
he received no acceptable offers, he kept the land. 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.
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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

9
at Cubilguitz 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 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

12
purchasing land owned and businesses operated by rival buyers. 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 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, self-
sufficient, 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 J
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tropical products* This undertaking too he timed according to a
preconceived design. 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.
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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.
127
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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 J
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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.

. U
Eleven months later he astutely sold the finca for 26,000 pesos,
#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
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 from
his inheritance. 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 J
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12
daughter of H. R. Dieseldorff and wife of W ( A. Dieseldorff. 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,
13
and Cubilgditz# Dieseldorff repaid the loan from Julia Dieseldorff
lL
by installments and settled the account in July, 1913.
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.^ Shortly thereafter he
bought Yalpemech and Candelaria,3-^ the original lots around which he
built San Diego-Yalpemech. 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-® and
Chichochoc3-^ the following spring. 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
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
20
Margarita. 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 father-
in-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 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 he had
a running account. 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. El Salto was mort
gaged for $ 5,000. to R. W. Hempstead,^ 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. One of Dieseldorff's major objectives was to begin
^ L a n d sale document for Chamcarel (May 19, 1902), DS, Secol

Box; 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 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 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
L 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
29
his credit to 100,000 Marks, 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 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. He established an
account for 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
_ _ _______ j _____ ____ _____ _______________________________________ ________ __________________
^ G F M A , Reel 22, Frame 370. Clipping from the Berliner neueste

Nachrichten. December 10, 1897•
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
each (raised later to 100,000 Marks each) with Haller, SShle & Co.,35
vhich had. also made a long-term capital advance to him. At the same
time he also received credit up to 50,000 Marks from Peter Siemsen &
Co., H a m b u r g , 36 tut Dieseldorff disagreed with the firm's methods of
calculating acceptancecommissions and on other matters, and he
closed this account in 1902.3? in New York he obtained credit from
G. Amsinck & Co., who had helped the Sarg brothers establish themselves
in the Alta Verapaz,3® but his account with Amsinck was relatively
small since he shipped most of his coffee to Europe.39
Although Dieseldorff maintained several advance credit ac
counts, for the next few years the main one was with Haller, Sohle &
Co. 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. Thereafter he dealt almost exclusively with
them,1*0 and eventually ceased using his account with RSsing Bros.1*1
35Ledger, "Libro Mayor,” 1898-1899, pp. 10, 11, 26, DC; ibid.,
1900-1902, pp. 6-8, DC.
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.

L 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
1*2
forced the firm into liquidation* 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 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., C. Lin-
so, Caesar Hesse, and the Banco Agricola Hipotecario,

U7 where he
kept regular checking accounts. 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
Ânnotation in EPD's handwriting on flyleaf of Letterbook,

"MSller Sohne,” DC.
^ L e dger, "Libro Mayor," 1898-1899, pp. 7, 21, DC; ibid.,

1900-1002, pp. 50, A , 161, DC.
^ I b i d . . 1898-1899, PP. 7, 21, DC; ibid.. 1900-1902, pp.

5 0 , 5U, i ^ TTdc.
L .» —
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 , Letter-
book, "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
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
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 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. The same or vcjriations of it existed on
practically every plantation. 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 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- ■ *
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 orders
to the administrators, who acted on them. 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 J
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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
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 office he frequently re
ceived visits from alcaldes auxiliares or 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 con-
tinued 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.
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keep him informed of what was happening, of decisions they had made,
and of matters that required his attention,5T and he ordered the plan
tation managers to write him also.5^ 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, 391-
392, 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.
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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 Die-

seldorff 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 self-
perpetuating and virtually impossible to change.
L J
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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. Financial
resources alone did not automatically spell success. They were
only the beginning. 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 J
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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.
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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.
153
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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 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 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, 1935-
1936); 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. 108-
114; 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
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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.Ô
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.
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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. In most cases the first full harvest
cans the fifth or sixth year. 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. —— —
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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.
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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.
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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 J
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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 J
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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 J
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Maragogyp became an important nev coffee variety for the Alta
Verapaz. The coffee sold veil in the London and German markets, be-
canse 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 J
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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. He also cultivated some Arabica at
CubilgQitz and £1 Salto. 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, Let-
terbook, "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 -J
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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 J
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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. It was also easier to harvest the
cherries an smaller bushes. 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 J
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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 twenty-
four inches from the primary, while the fifth topped the tree to an
even height.
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 J
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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 J
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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 J
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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. Wood
ashes ware another valuable supply of potaBh. 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. By about 1900 Dieseldorff found himself in a similar
situation. 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 J
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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 J
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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 J
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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 soae-
Q]i
hcnr survive.''
Dieseldorff recognised that Stllbella flavida posed a serious
Âlvarado, Vol. I, pp. 225-231*. According to Alvarado this

attitude vas unfortunately still prevalent in the 1930's when he vas
vrltlng.
L J
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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.^ The lesson did
not go unheeded. 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 J
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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 J
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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 J
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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.
Îbld.: 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 J
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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
^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 J
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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, by necessity, they sold
their crops locally. 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 J
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district is really a 1st class article . . . if properly treated. As
fancy coffees alvays command high rates, I am sanguine about the sue-
cess 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.
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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$.
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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* Dieseldorff had lived in
the Verapas for almost a decade* 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.
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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: cereza (pulp cof
fee) and pergamino (parchment coffee). The sources and buying tech
niques for each type vere different* 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 J
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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.
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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.
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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. In
such cases the debt vas carried on to the following year. 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.
Âgreement 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.
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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 J
R eproduced with perm ission o f the copyright owner. Further reproduction prohibited w ith o u t perm ission.
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 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.
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R eproduced w ith perm ission o f the copyright owner. F urther reproduction prohibited w ith o u t perm ission.
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 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.
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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.
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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 present-
day 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.
"Înterviews with don Arturo Morales de la Cruz and don

Guillermo Boesche (coffee buyer for the present-day Dieseldorff
fin).
L J
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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 J
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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 J
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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 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 politi-
cally 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
go
creditors* 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.
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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
86
and understandably became dissatisfied. 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,
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 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 diffi-
89
culties involved.
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,

L J
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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 J
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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

qU
vigor and enthusiasm and injected nev life into the business. 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 J
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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 concern-
ing 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* On his fincas he
raiaad production considerably* 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, 118-
119, 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.
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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 long-
lived success.
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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. There they under
vent final preparation and sorting. 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. The steps were exacting and the entire process
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 J
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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

O
ended in January. 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 J
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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. 203-
20U; 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. 15-
16, 61.
L J
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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. The trees alvays had berries
at various stages of development. 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.
Înventories 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 J
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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. These resembled a
pebble split in half. 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
Êrvin F. Dieseldorff, Per KAffeebaun. Praktische Erfahrungen

fiber seine Behandlung la nfirdlichen Guatemala (Berlin,C19083), pp.
335
L J
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mucilaginous consistency. A double integument sealed the beans* The
first covering, a tough textured, straw colored husk, vas the "parch-
sent," 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 J
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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 em-
o
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.
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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

Ip
from the Sarg Company. 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. The Sarg pulper used perforated discs to shell the coffee
11
berries. 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.

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 J
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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. He also bought a number of the interchangeable covers at
$ 20. each. 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
Înventory 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.
Înventories of El Salto, Panzal, and Raxpec (1930), DC.
L J
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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 J
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To foment the ooffee Dieseldorff constructed tenks of stone
end mortar, whose liquid volume capacity ranged from thirty to forty
lfi
thousand gallons* 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

20
build nev ones vhen needed.
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 net-
pi
vork of deep underground rivers that crisscrossed the department.
Dieseldorff approached the vater problem in different vays.
At flncas vhere there vere rivers, such as Chajcar, Sechalb, and
Înventory 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 geo-

granhischen Oesellschaft in Hamburg. XVII (1901J, pp. 15t-lf>0.
L J
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Santa Cecilia, ha built tha banaflelo as oloaa to the vater as pos-
sibla 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 rain-
vater.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.
Înventories of Chajcar, Chiquixji, Pansal, Raxahft, Raxpec,

Santa Cecilia, Sechaib, and Secol-Seacti (1930), DC.
L J
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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. This criterion vas
not consistently accurate, hovever. If the sun had been very hot, it
L 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, the
number depending on the anount of coffee produced. They ranged in
aise from three to five thouaand square feet. 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.
Înventories of Chajcar, Cblchochoc, Chiquixjl, El Salto,

Pansal, Raxahi, Raxpec, Santa Cecilia, Sechalb, and Secol-Seact6
(1930), DC.
Înventory of Chiquixjl (1930), DC
L J
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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 sup-

oA
port the patio. 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,

28, DC
L J
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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 J
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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 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

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 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

hi
mechanic to put it together and to keep it in working order, 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 J
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|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 J
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kk
and mortar vith a capacity of one hundred tons in vhich to store
the backlog. 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. The color of oro coffee grovn in the
lili „ *
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 J
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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
Land sale document for Chichochoc (April 26, 190U), DS,
"Hijos” Box.
L J
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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 . ^ Subsequent owners,
Otto Clauss^^ and the Helmrich brothers added nev buildings and
equipment. 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»

1908, 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**.
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 J
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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 J
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£2
vater turbine.
During the 1920's Dieseldorff further expanded facilities at
Chichochoc. To replace the antiquated O'Krassa machines-’ he bought
from the McKinnon Company an Ibercale model coffee grader

6k and a
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,
Înventory 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 J
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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

71
Chichochoc, By the early 1930's the old dam vaa in poor condition
and obsolete. 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 J
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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 J
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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. Dieseldorff took similar precautions vith the
sorter. 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.
L J
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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.
TÎbid.• William H. Ukers, All about Coffee (Nev York, 1935),

p. 7Vr.
L J
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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: he bought a property vith resident
Indians. 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,
"înterviews 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,
pp. 985-986, DC.
L J
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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.

AL
for it and for another finca, vhich he did not particularly vant.
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 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. Other exporters vere willing to use
cheaper bags,®^ 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. For many years
the bags vere sewed shut by hand. This method vas not only slow, but
tinsatisfactory. 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 ___
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.
L J
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the b a g . ^ During the 1920's Dieseldorff began to use, instead of
thread, heavy lead fasteners that closed the bags securexy and de-
minished the possibility of loss or alteration of the contents on

92
route. 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. Sorting had further
divided the lots into size groups. 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 J
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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. Most of the
Dieseldorff trademarks date back to the l890's. Among the major
ones were: "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
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 J
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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, 68-
73, 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.
98 A
* Letter and enclosure: EPD, Coban, to the Ministro de Agri
culture, Guatemala, February U, 1930, Letterbook, "Asuntos ante las
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 J
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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 J
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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: the absence of adequate roads in the
department. Roads were essential to carry coffee to ports of embar
kation. 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 begin-
ning recognized that they had to take the initiative to open neces
sary lines of communication and transportation. The Germans, for
several reasons, were the most active. 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
243
L J
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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, hard-
surface 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 J
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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 J
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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,
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 J
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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 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 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
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 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
21
to drive the vehicles.
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
op
well the sharp turns and steep descents of the road. 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.

2k
20Memorias de las Secretaries, ”Fomento" (1879), p. 7*
21Rosch, p. 93. 22Ibld.. pp. U2-U3.
23Ibid.. p. 93.
pli
El Porvenir. Ano 1, No. 1*5, December 1, 1889.
L 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

25
vith tvo Americans, J. F. Anderson and William Oven. 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 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 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. First
they set out to improve steamer service. 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 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, and the company waa soon
able to acquire additional vessels. 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

Uo
Barrios, and weekly between Livingston, Izabal, and Panzos. 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 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
Îbid.. 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 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 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-

* U8
pany's legal, financial, and administrative affairs in Coban.
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 J
r 260~l
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 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

52
rolling stock
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 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 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 Hamburg-
America 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 mem-

57
bers (some of whom owned stock in the Line, as Ervin Dieseldorff did),
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 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. In 1921* the
company resumed a regular r u n . ^ 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 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 re
sults were unsatisfactory. 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 J
r 266~1
Most of the route lacked conduits along the side of the road
bed, and transverse drains as veil. As a result, deep mudholes
formed in low areas. 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. For this reason
66
Ervin Dieseldorff purchased Paija in 1896 , about the time that con
struction of the railroad began. 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 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
68
they paid the men's wages and all other expenses incurred. 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 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 £

71
Panca.1 che. whose membership included both Germans and Guatemalans.
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 correspon-
dientes 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 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 govern-

75
ment circles. 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.
Îbarra, p. 1*19.
75E1 Norte, Afio XIV, No. 663, April 5, 192h.
76
Ibarra, p. U37»
77Fomento (1926), pp. 116-118.

L 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&n-
7O
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 J
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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

go
sections of the road.
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 con-

On
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, but then the national government dealt the
project 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 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 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
69
job to completion.
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 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-
02
located Q 250. a month for the vork, but after July, 1930, the ap
propriation s t o pped.^ 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 top-
97
ping from the riverbed at Santa Margarita and Chichochoc, 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
L J
r 275"!
allowed the builders to use his ox-carts and motor vehicles to trans-
98
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. Indians in the remote mountain
villages generally escaped service. 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 conmuni-
tles.
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 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,
102
to less than Q 0.30.
During the period that the Coban-PancaJchi road vas under
Letter: EPD, Cob&n, to the Alcalde 1° Municipal, Cob&n,

p. 682, DC; Letter: EPD, Cob&n, to the Alcalde 1° Municipal, Cob&n,
May 19, 1931, Letterbook, "Asuntos ante las autoridades," No. 2,
p. 307, 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
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 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
^^Fomento (1912), p. Ul. The report doeB not specifically

state that Dieseldorff did the vork himself, but the implication
here, and in other reports vhere the plantations cure mentioned by
name, is that the owners made the repairs. Furthermore, in some re
ports the owners are actually given credit for their accomplish
ments.
L J
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1.06
masonry bridge, 157 feet long.
In 1923, a presidential decree, vhich declared all existing

107
and future roads to be public thoroughfares, ' gave impetus to in
creased road construction by private parties. 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.
10Îbarra, 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 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

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. 102-
103, 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 J
r 281~I
112
the macadam method. 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.
•^Êl Norte. AHo XXV, No. 1259, November 3, 193^.
L 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 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 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. Elsewhere in the department he employed mules and pack
horses. The carts and mules also carried supplies to the fincas, and
on the return trip from Pancajchi the ox-carts brought cargoes of

nfi
salt, which Dieseldorff sold at a profit.
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
119
Dieseldorff apparently regarded this system with distaste. Instead
he strove to have a sufficient number of vehicles and animals. 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 J
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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. The wheels had four large, wooden
spokes and metal casings. In the early days it vas necessary to im
port wheels from abroad, but later Dieseldorff purchased them from
lOQ
Georg Wagner, vho manufactured them in Cob&n.
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
March 31, 1919( DS, "Varios" Box; Record book, "inventarios," 1927-
1931, p. U, DC.
122
March 31, 1919, DS, "Varios" Box; Inventories for Chichochoc, Chajcar,
Sechaib, Santa Cecilia, Raxpec, Paija, and Rio Frio (1930), DC.
L 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 J
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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. As beasts of
burden mules had several advantages over horses. 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,

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 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

128
horses, whose aggregate value amounted to nearly $ 9*000. A few
years later his livestock included 239 oxen, 99 pack mules, 29 pack
129
horses, and 28 mounts (mules and horses).
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
■Înventories 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 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 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 three-
ton 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
139
a mechanic in his employ. 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
^^Letter: EPD, Cob&n, to the Jefe Politico, Cob&n, January

29, 1930, Letterbook, "Asuntos ante las autoridades,” No. 1, p. 915,
DC.
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running order at all tines, Dieseldorff also kept a large stock of

1U0
spare parts at the machine shop at Santa Margarita,
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
lUl
the capital and Coban, 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 depart-
1 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

lM
he agreed to maintain it in a good state of repair. Telegraphic
^Înventory, "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 J
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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

lU6
Tropical Radio Company opened an office in the capital. Mail serv
ice, however, continued to be pitifully slow until 19^0 when the

lU7
government started a daily run. 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 ware-
1lift
house near Pancajchl. Ervin Dieseldorff had telephones on several
of his fincas. 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 J
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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-
1 *il
tral office to the Chichochoc retrilla.
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 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
isi*
project, and the landing field vas completed in 1929. 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 one-

156
half of the revenues for construction of the road.
^^Letter: EPD, Cob&n, to the Alcalde 1° Municipal, Cob&n,

p. 682, DC.
155Fanento (19 U 3 ), p. 127.
• ^ Leyes de Guatemala. Vol. L, p. 1*58.
L J
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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 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 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
3.62
other European firms vere forced to suspend service. Overnight
Livingston became a virtual ghost port. 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 Rancho route and
l6lIbid. (1935), p. 313; ibid. (1936), p.2 3 k .
l62Ibid. (191*0), p. 53.
l63Ibid. (I9fcl), p. 17.
l6 UIbid. (191*3), pp. 235-236.
L J
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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 whatso-
ever" 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 J
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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 J
r 300"l
planters and merchants of the department. His motives vere hardly
altruistic. 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 J
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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. Moreover, since footwear was all but unknown among them, it is
conceivable that they continued to use their own unsurfaced paths in
stead of the rock-paved tracks and roads.
L J
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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
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 J
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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 J
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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 allov-
ance 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 J
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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
Ê1 DemScrata. Afio 2, No. 67 , February 26, 1888.
Ê1 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 J
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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 sixty-
one 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

12
by outbidding four Guatemalans vho were also rivals for the land.
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 J
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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. Not all
the Indians accepted the change passively. 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
15
title to a tventy-acre parcel of land. The lav had little effect,
however, partly because it vas impracticable and therefore ignored,
but chiefly because it came too late. By 1889 fev inhabited baldios
remained in the mountain a r e a s . ^ 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 J
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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

1fi
country. 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 J
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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

21
Trabal adores (Law Governing Laborers), 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 J
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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. The agreements specified the length of
time they vere to vork. 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 J
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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 enforce-

pp
ment of stringent vagrancy laws. 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

25
demands for laborers. ' 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 correspon-
dientes al ramo de agriculture (Guatemala, pp» Mt, 1933T, 103*135-
137, 1U2, i T o T
2Ê1 Porvenir. Afio 1, No. 1, January 27, 1889.
L J
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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

27
the Indian and denied him his constitutional right to freedom;
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.
2Ê1 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.
Îbarra, pp. 157-158.
30Fomento (1909), pp. 178-179; ibid. (1910), p. 157.
L J
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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 vho
ran avay from the finca oving money or service. 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 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 Ji
to ten pesos. 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 J
r
adjunct to agriculture in the form of Indian laborers. They achieved
their purpose. 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. 1075-
1076.
L 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. There
were four standard articles. 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
37
equal to the amount he would have earned.
Âgricultural 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 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 J
r 3191
to till, but he v m able to do this only because he had such exten
sive holdings. 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 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. From time to time, he encountered problems of
one sort or another. 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 J
r 32fi
he or his agent* repeatedly made extravagant promisee and failed to

bO
keep them, the Indians would come to distrust him.
The colono system vas self-perpetuating, not only on Diesel-
dorff'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 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
Up
one-dollar credit for the purchase of clothing at the finca store.
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. These men vere called enganchados or
.lomaleros habilitados. 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 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 labor-

U3
ers. 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.
Înventories for ChiquixJ 1 and Raxaha (1930), DC.
L 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.
Îbarra, p. 2Ul,
^ I b i d . . p. 2k2.
L J
r 3251
the Alta Verapaz at Q 0.08, but none of these lavs clarified whether
hfl
all laborers vere covered or only the seasonal hands.
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. In 1935* for example, Dieseldorff paid them Q 0.18
a week. 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. The patron was obligated to maintain order on his proper
ties. 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 J
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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
Întervievs vith Mrs. Marla Luisa Dieseldorff de Hempstead

and Miss Rosita Dieseldorff.
^ E r v i n P. Dieseldorff, Per Kaffeebaum. Praktische Erfahr-

ungen 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 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.
Âgricultural 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 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 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 Diesel-
dorff 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 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

57
(Q 1.00 to Q 22.36). 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
^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
DC.
L 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,
^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 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,
1898, Letterbook, "Varias Cartas," No. 1, p. 187, DC} Letters: 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.
L J
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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.
^Letter: EPD, Coban, to Lisardo Martinez, Santa Cecilia,

July 3, 1901, Letterbook, "Fincas ,11 No. 1, p. 119, DC.
^Letter: CEPD3, Coban, to Vicente P€rez, Chiquixjl, Decem

ber 11, 1925, Letterbook, "Fincas," No. 10, p. 79^, DC.
L 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 , 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
68
bothering the people on his land.
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
6T
Letter: EPD, Cobfin, to the Jefe Politico, Cobfin, June 22,
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 J
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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*1-
1*3, DC; Letter: Salvador Herrera, Oficina de la Secretaria de
Estado en el Despacno de Agriculture, Guatemala, to EPD, Cobfin, March
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
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 J
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of the mozos for mlBdemeanors such as disorderly conduct or drunken-
nesB. Although he helped the man through the legal proceedings, he
did not protest the fine or punishment if he believed the charge vas
71
valid and the sentence justified. 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 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

73 7k
amount given the mozo and to obtain a quitclaim from the advancer.
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. Then he demanded that government offi-
75
cials punish the advancer.
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. The tiny structures had thatched roofs and dirt
floors. 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

DC.
L J
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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 J
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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

80
case of accident or emergency. 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,
L J
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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
84
1928, 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 con-
86
tracted the infection. 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

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. 378-
379, DC; Letter: EPD, Coban, to the Alcalde 1° Municipal, Carcha,
February 9, 1928, Letterbook, "Asuntos ante las autoridades," No. 1,
p. 385, DC.
L J
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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 343^1
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 J
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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 J
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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. The one at Raxaha vas for the
ChiquixJi-Raxaha area. 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. 7-
kk.
^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 Diego-
Yalpemech. 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 J
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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 J
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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 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 J
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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-
p
sons working for him. This number included an office manager, an
1Ledger, "Libro Mayor," 1900-1902, pp. 16-18, 23-25, 28, Uo-

1*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 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. H1 b choice
vas based on fact. 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 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 road-
building 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 of-
k
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 J
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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 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 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. From 1905 to 1914 he hired nearly thirty men on
this baBis. 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. He had learned a lesson from the World War I interven
tion. He sav that his being a foreigner put his business in a
L 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 J
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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. With
in less than one year he vas earning $ 2,l6o, annually.^ 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 J
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11
stead. 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. Only a few were originally from
North Germany, however. 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
12
formal agreement.
^ 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 J
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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. If the man's work was unsatisfactory, Dieseldorff
vas in a dilemma. 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 J
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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 J
r 360l
lli
Dieseldorff had not met, 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 con-
tract. 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
15
1933 contained the same two-year proscription. 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 J
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for hla Job, and during this time he vorked closely under Diesel-
dorff'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 J
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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 an-
PO
nual salary of 2,000 Marks. 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. 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. The Prokurist, or office manager, was
at the top of the scale. 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

22
$ 3,000. Adrian Bosch, vho held the same position during the 1920's,
earned $ 2,160. a year.2 ^ The store manager was nextin line, and
such men as Hermann BQttgen and Otto Zoller, vho heldthe position
pli
before the war, earned 3,000 Marks a year; during the 1920's the
amount averaged about $ 1,200.2^ 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., 1925-

1927, pp. E C T 8 , 286-287, DC; ibid., 1927-1929, pp. wEosft, DC;
Work contracts between EPD and Arend Buss (October 3, 1930), and be
tween EPD, represented by his wife Frau Johanna Dieseldorff, and
Johann Pape (September 18, 1920), DC.
22Ledger, "Libro Mayor," 1900-1902, p. 133, DC; ibid.. 1911-

1916, 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., 1911-

1916, pp. 125T127, 279, DC.
L J
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Chichochoc retrilla, Heinrich MSschler, for example, received 3,180

27
Marks before the var and $ 1,380. afterwards.
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., 1911-

1916, 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. 102-

105, 237-239, DC; ibid., 1925-1927, pp. 120-123, 130, DC.
L 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 %, while in others
it was 100 %.3^ 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 J
r 3 66 1
their salaries on deposit vith him, and he paid them 6 % annual inter-
37
est on the sum.
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 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. The existence was desolate and often
desperately lonely. Contact with other Germans was infrequent, and
this was usually of a business rather than a social nature. Trips to
Coban were exceedingly rare and of short duration. 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 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. He also provided a simple grammar
and a diet ion say. Once on the finca the nan had little opportunity
L 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 occa-
39
sion to use or hear.
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
kO
the social stigma that it does in some other parts of the world.
Frequently, unlegitimized persons assumed the father's name. 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 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
1*1
pestiferous San Diego-Yalpemech. 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

1*2
of travel costs. 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
1*1*
Dieseldorff.
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 J
r 371J
k5 li6
than ten yearB. They vere Walter Bockhorn, Christian Kress, Max
Krings ,**7 Max Quirin,^® and Oskar Tr o p i t z . ^ 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. 197-

199, DC.
^ I b i d . . 1905-1911, p. 435, DC; ibid., 1916-1922, pp. 463-

465, 481, DC.
5°Ibid., 1900-1902, p. 133, DC; ibid., 1916-1922, pp. 274-

279, 333, DC.
51Ibid., 1905-1911, p. 425, DC; ibid., 1916-1922, pp. 279-

230, DC.
L 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 busi-

52
ness. 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 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, and
59
moved to Guatemala City where he purchased a small hotel. 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 de-
62
partment. 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

63
1920's he operated a plant for the coimnercial processing of coffee.
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 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. A
fewsuch as 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 J
r 375I
Max Krings who married Hosalinda 8amayoa; Georg J&hnig, Cristina
Bequefia*, Georg Henderkott, Inis Villein; Paul Mittelst&dt, Emilia

66
Villela; and Christian Kress, Julia V&squez.
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

6t
identity, which some Guatemalans found objectionable. 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. The children of the
German-ladina unions were Guatemalan. 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 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

68
place for nearly ten years, 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 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, liio reasons were
valid. 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. The position had no formal title, but it carried responsi
bility. 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
L 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. During Dieseldorff's lifetime three
men occupied the post. 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 J
r 372
as the Germans. Dieseldorff demanded their undivided attention to
their work. 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

73
year. 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. For example, Vilhelm
^Letter: EPD, Coban, to Manuel Conlledo, Panzal, July 25,

1901, Letterbodk, "Fincas," No. 1, pp. 135-136, DC.
^Ledger, "Libro Mayor," 1900-1902, pp. 18, 1»0-Ul, 115, 1^3,

DC.
L J
r 383
Fraatz, overseer at Santa Cecilia from 1916 to 1920, received $ 360,
the first year, $ 660. the second, and $ 720. the third and the
74
fourth. 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
75
to $ 720. after six months, and then to $ 840. five months later.
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 first-
year German clerks. More than ten years later Juarez's yearly wage
76
was $ 960., but at the same time the office managers, first Adrian
77
Rosch and later Rudolf Hesse, were making about $ 2,000. 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 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. Dieseldorff gave every
man cm aguinaldo each year. 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 pock-
AO
ets. 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. In actuality,
the change was not as drastic as it appeared to be. 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 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

8l
of the 25 % maximum.
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 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 J
r 3841
succeeded. He was completely exonerated by the government, and the

86
fine money was returned to him.
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 J
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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.
385
L J
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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

1
seer that he appointed fell ill within four months and had to resign.
"'"Letter: EPD, Coban, to Antonio Cordero, Las Amazonas, February

7, 1902, Letterbook, ’’Fincas," No. 1, pp. 296-297* DC.
L J
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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

2
precautions to protect the men, they became sick and some died.
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 J
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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. In later
years he sent the cotton to Coban to manufacture thread. 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 J
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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, and one and a half tons
the next.10 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

12
nearly 6,000 pesos. 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 J
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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
lL
in Guatemalan currency averaged about fifty centavos an acre.
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 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 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-
17
vatlons of corn and black beans, which Dieseldorff sold at the store
and to the mahogany companies.
The shop was hardly a gold mine, but it consistently made

l8
money. From 1915 to 1920 profits averaged about $ 5,000. a year,
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, un-
20
husked, at $ 2.00 per hundred pounds and the beans at $ 8.00. 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, Ferro-

carril 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], to W. R. Grace & Co., New Orleans,
February 22, 1921, DC, Financial Correspondence.
L J
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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
22
it had been before. In an effort to revive the area economically
Dieseldorff began to plant cardamom, but with little success. Annual

23
production of the spice en pergamino was never more than 200 pounds.
2k
A halfhearted attempt to cultivate tobacco was also a failure. By
25
the early 1930's Dieseldorff was losing about Q 500. a year, 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.
2Ê1 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 J
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natural resources of the land.
Concurrently with the projects at Las Amazonas and San Diego-
Yalpemech, Dieseldorff began to expand his activities in the Cob£n

26
area. The purchase of Chichochoc in 190U 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,

27
and dying vats, and started operations. 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 J
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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
28
1916 annual losses increased to $ 1*,000. or $ 5*000. 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., and he put
31
this up for sale in order to recoup some of his losses. 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 J
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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
33
to the Indian trade. 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. He believed that he could
further increase sales by moving. 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

3l+
records. 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 J
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September, 192k, Dieseldorff moved to a much larger building, which
35
was around the corner, just off the central square, next to the church.
36
Dieseldorff had purchased the property in 1920 for about $ 65.00.
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. Dieseldorff was also the Cob£n
37
agent for International-Harvester Co. 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,

38
toys, canned goods, and other imported foods, but at least one item
was never stocked— liquor. 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 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

39
carries a different type of stock.
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. By 1930 he
had stores bn at least nine of his fincas. The largest were at

1+1
Chajcar, Cubilgiiitz, Secol, and Raxpec. 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

1+2
Dr. Sloan's liniment.
The stores made money, but the type of stock he carried and
the clientele he drew limited the possible revenues. At Raxpec, for

1+3
example, the annual sales figure was about Q 2,700. Although
Înterview with Mrs. Billie Neal de Cox.
^Ledger, "Libro Mayor," 1900-1902, pp. 26-27, DC.
Înventories of Chajcar, Chiquixji, Cubilgiiitz, El Salto,

Raxah£, Raxpec, Santa Cecilia, Sechalb, and Secol (1930), DC.
Ip
Inventory of Raxaha (1930), DC.
li^ __
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 J
r 3^1
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 miner-
46
alogy at the University of Freiburg, 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 . . . Agri-
cultura (1937)» PP* 17» 40.
^ F r a n z Sarg, "Alte Erinnerungen an die Alta Verapaz,” Deutsch-

tum in der Alta Verapaz (Stuttgart, 1938), pp. 13-14.
^ A . D. Dieseldorff, ’’Familien-Chronik,” pp. [35-36], DL.

L 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. Results at the other two
mines were equally disappointing. 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
1+7
question. After a few months the men abandoned the work.
Intermittently Dieseldorff's interest in mining revived. In
1903 he denounced the mineral rights at Secac for the purpose of ex-
1+8
tracting lead ore. 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. Dieseldorff's diggings
at Secac were always on a small scale. 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 J
r
1*0
Periodically, he sent samples to Germany for analysis, hut the
reports were negative. 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 experi-
52
ments. 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

53
he would analyze without charge. 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, Charlotten-

burg, 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 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 J
r 40I
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 Sometimes

57
the price was as high as Q 2,00, 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 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

59
Cubilgiiitz, and annual production was about 40,000 pounds. 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 . ^ Previously, the average

62
had been 529 pounds per acre. By 1933, with nearly 200 acres under
"^Letter: EPD, Cobfin, to the Alcalde 1* Municipal, Cobfin,

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, 1929-
Dieseldorfffs 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.
Âgricultural and statistical data on Cubilgiiitz (1930),

^Letter: EPD, Cobfin, to the Alcalde 1* Municipal, Cobfin,

pp. 738-739, DC.
L 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

63
120,000 pounds a year. 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,

6k
and annual production increased from 15,000 to 30,000 pounds. Similar
changes occurred on the other plantations. 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,
Âgricultural and statistical data on Chiquixjf (1928, 1930),

Letterbook, "Asuntos ante las autoridades," No. 1, pp. 357, 995, DC.
Âgricultural and statistical data on Chajcar, Santa Cecilia,

Raxah£, and Secol (1930), Letterbook, "Asuntos ante las autoridades,"
No. 1, pp. 990-992, DC.
L 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 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. They required a corporate endeavor to make
them pay. 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 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. In doing this, he had several things in his
favor. 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 cheap-
grade 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 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. The war put
Mittelstadt in an awkward position. 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 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

6t
firm. 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. At the same time, funds deposited in German
banks were frozen. 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 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

69
to the dollar.
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

70
the United States, severed relations with Germany on April 27a 1917-
Throughout 1917 Mittelstadt continued to export coffee under Diesel-
dorff’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
71
impossible, for Dieseldorff was among those listed. So as to pro
tect Dieseldorff’s interests, Mittelstadt transferred all accounts to

72
himself and began making shipments in his own name.
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 J
r 4121
The new arrangement soon became unworkable. In April, 1918,

73
Guatemala declared war on Germany, and Mittelstadt realized that his
German nationality might cause problems. A few months later the
government confiscated all German-owned utilities, including the

7U
Ferrocarril Verapaz, and in the Alta Verapaz there were open ex-
75
pressions of anti-German sentiments. 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 there-
rrg
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 J
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77
who were residing in Germany. 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

78
the agency. 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

79
Berlin. 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

80
the business for the government. Mittelstadt submitted a detailed
8l
inventory of Dieseldorfffs holdings and of accounts outstanding,
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 J
r 414I
deposited the land titles and deeds to Dieseldorff's properties in the

82
custody of the Intendencia.
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
84
the Dieseldorff firm.
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 Mittel-
Gc
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 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
86
situation appeared bleak, as the value of the peso continued to fall.
Worst of all, the period was one of uncertainty, and the
morale of the staff was badly shaken. There were incidents of theft
87
and minor disorders on the fincas. 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 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 Inten-
dencia 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. Dieseldorff also presented a number
89
of documents to prove his point.
What happened then is not entirely clear. Documentary evidence

90
is so scanty 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 J
r «
n
91
together from interviews with participants and eyewitnesses.
Dieseldorff first legitimized Matilde Cfi, his natural daughter, who
was a native-born citizen of Guatemala, and then transferred to her

92
legal title to all his properties. 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
93
properties and monies held in custody be returned to him. 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 Con-
sultor. . .tTI
^Letter: Francisco Cuellar A., Secretary, IGdG, Guatemala,

to [Paul 0. Mittelstadt, Cobfin], June 17, 1920, DC, WW I Int. Pap.,
Correspondence.
L J
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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

0 I4
exports under his own name.
The most pressing problems were financial. The Intendencia

95
had turned over to him a balance of $ 19 ,900.03 , 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
96
to the lawyer who had represented him before the Intendencia, and
nearly $ 15*000. to former German employees who had accumulated their
salaries as savings over the years.'

97 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 J
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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 % interest on
first-class promissory notes. Additionally, the United StateB coffee

98
market was heavily oversupplied and prices were in a deep slump.
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 -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

99
each ninety-day draft that he wrote, and 1 1/2 % sales commission.
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

102
commissions and brokerage fees; he questioned the low price at
103
which they sold his coffee; and he became enraged when they wrote
him that the coffee he had shipped was of inferior quality to the
10l+
advance samples he had submitted. 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 & Co., Guaterula,
March 22, 1921, DC, Financial Correspondence.
103Ibid.
in ii
Letter: [EPD, Cobfin], to H. P. Opfermann, W. R. Grace &
Co., Guatemala, October 20, 1920, DC, Financial Correspondence.
L 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
107
check. He even offered a mortgage on Chajcar as security. 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

106
able to negotiate arrangements with another house. 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 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

112
allowed him to defer payments to them until July 1, 1921. After
that date he made several large coffee shipments to the firm, and
113
finally closed his account in January, 1922.
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. Also Schlubach was more lenient
about credit restrictions. 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 J
r 4231
Dieseldorff was permitted to exceed the $ 5,000. limit, and in August

114
and September, 1921, his debit balance was more than $ 30,000.
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. During that time several changes
took place. 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,
11Îbid., pp. 385, 419-420, 450-452, 480, DC.
115E1 Norte, Afio XI, No. 563, March 18, 1922.
L J
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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

117
by lowering the wages of both the Indian laborers and the employees.
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

ll8
tariff, which was Q 2.00 per hundred pounds, 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
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 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 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

120
rates. Dieseldorff*s plans were not effected. Even if they had been
they might still not have improved conditions. 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 J
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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
121
his coffee.
As a result, Dieseldorff sharply curtailed his shipments to
Germany and instead began to look for new outlets. He consigned only
122
one half of the 1935/1936 harvest to Germany, and less than one
third of the 1936/1937 one .123 By 1937/1938 the firm's coffee exports
12
to Germany had dropped to 1*7,400 pounds, less than k % of the total.
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 J
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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^ Gordon sold 5** % of
the 1937/1938 harvest; the following year he handled 78 %, and
another lU % 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

128
Britain and Switzerland. 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. Willi
was more vocal. 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 J
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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
130
who supported the German government. 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

131
Evangelical Church in 1820, prior to his remarriage in a religious
132
ceremony to Dorothea Wilhelmina Hopfer, a Gentile. 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'
^■^^Marriage certificate of Johann Heinrich Dieseldorff and

Dorothea Wilhelmina Hopfer (September 18, 1820), DC, Family Documents.
L 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

133
government subsequently followed suit and gave him similar license.
. 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

135
to a Guatemalan, was sent to a camp in San Antonio, Texas. 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 Secre-

taria 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 J
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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

137
Indians as well as ladinos, 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. Tragically, less than two years later his wife
1^6
Interview with don Arturo Morales de la Cruz.
^ ^ G . Alem£n BolafSos, Vida agricola de Guatemala (Guatemala,

19lt6 ), p. 2k .
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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.
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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. Through an in
formed process foreigners settled in Guatemala. 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 _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
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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.
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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. German activity altered
the situation. 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
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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.
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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 be-
tveen 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, hov-
ever, 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
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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 im-

3
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.
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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.
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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
Â 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
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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 one 1007 treaty,the
Germans enjoyed a few others, which applied to all 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.
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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 la exportacion del caf£ ante la proclamacion

de las Listas Negras," Revista de la economia nacional. V (October,
19^1)* p« 10; Valentin Solorzano Fernandez. Historia de la evolucion
economica de Guatemala (Mexico. 19^7), P» 317*
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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. This simplistic view is er
roneous in several respects. 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.
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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 J
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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. They were, in
fact, doing the same thing themselves. 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
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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
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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 $ 150 ,000. , ^ and were assessed for tax
purposes at about $ 100,000 .11 At the time of his retirement he

12
privately estimated his net worth to be $ 250,000. His annual
gross income from coffee sales averaged about $ 250 ,000. during years
13
when crops were good and market prices were high, 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.
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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 Diesel-
dorff’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 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. Dieseldorff attacked the
situation in a number of ways. 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 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 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 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 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 J
r n
BIBLIOGRAPHY OF WORKS CITED
I. PRIMARY SOURCES
A. 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. Codigo fiscal de la Repfiblica de Guatemala.

1881. 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 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. 1879-
1919. Guatemala, 1&79-1919.
Guatemala. Memoriae de las Secretaries. 1879-1881, 1883.

Guatemala, 1&79-UT83.
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 df-

Guatemala. 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.). Coleccion de tratados de Guatemala.

Guatemala, 1892.
United States. 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 J
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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

L Transportes del Norte"aprobado en .junta general
ordinaria, oitlebrada el 1U de .jullo de 1895. Guate
mala, Clflsjj.
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. Wanderbilder aus Central-Amerika. Leipzig,

1853.
Helmrich, Gustav. Kaffee-Dungungsversuche in Guatemala.

Berlin, 1901.
— m-m— mm" Ver8uche uber die Verwendung Kunstdunger in der

Kultur des Kaffees. Berlin, 190^7
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 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. 3-
k \ 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. Adventures on the Mosquito Shore.

London, 1856.
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). 1888-1889.
Boletln Oficial (Guatemala). 1871-1873.
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r
El DemScrata (Cobin. AV, Guatemala). 1886-1089.
Diario da Centro-Amirica (Guatemala). Afio XXXIX, No. 10770

(September 23, 19l8).
El Eco Alem&n (Guatemala)• 19lb-1916.
Gaceta de Guatemala (Guatemala). Vol. VII, No. 13 (July 21,

l85t); ll369-lfl71 •
El Guatemalteco (Guatemala). 188b, 1869- 1891.
El Imparclal (Guatemala). Aflo XVIII, No. 600b (August 1,

1939).
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). 1882-1085.
La Socledad Econ 6mlca de Guatemala. 1866-1880.
Times-PIcayune (New Orleans). Vol. LXXXI, No. 318 (December

10,1917).
La Verapaz (Guatemala). 1891.
La Voz del Norte (Salami. BV, Guatemala). 1883-1885.
E. 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 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 Amerikanisten-
Kongreas. Vierzehnte Tagung. Stuttgart. 190^. Pp. 399-
U027 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. 3 vols. Berlin,

1926, 1931; Hamburg, 1933.
. Mesbe bei chirurgischer Tuberkulose. Berlin, 19lU.
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Dieaeldorff, Ervin P. "Neuo Auagrabungen do a ilrrt• Dioucldorff
in Chajcar, Guatemala," Verhandlung der Perilnor anthro-
poloKiachon 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. 60-
BT; 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.
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r U62I
International Congress of Americanists.

Verhandlungen dea XXIV Internationalen Amerikanisten-
Kongreaaes. 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. MesbS bei Lungentuberkulose. Berlin,

191U.
. "Mesb€, ein neuea Heilmittel gegen Tuberkuloae,"

Reichs medizinal Anzeiger. XXXVII, 18 (August 30, 1912),
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CBerlin, 19 ll* ?3.
Vela, David. "Dieseldorff: un vieJo maya," Anales de la

Sociedad de Geografia £ Historia. XVII, 2 (June, lsHti),
pp. 90-100.
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191*6.
Alvarado, Juan Antonio. Tratado de caficultura pr&ctica. 2

vols. Guatemala, 1935-1936.
Asturias, Miguel Angel. Viento fuerte. Third edition. Buenos

Aires, 1962.
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.
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las Listas Negras," Revista de la economia nacional. V
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Gomez, Gabriel. Cultivation and Preparation a Coffee.

Translated by W. Thompson. Mexico, 189^•
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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. Guatemala, Past ;.rid Present. Minneapolis,

19U0.
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).
Schonfeld, Karl. Der Kaffee-Engroshandel Hamburgs. Heidelberg,

1903.
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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, 4 pp# 1935T, 391-^09#
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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.
466
L J

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FALCON, Guillermo Nanez, 1936-

Tulane University, Ph.D., 1970

? University Microfilms, A XERQ\Company, Ann Arbor, Michigan

(c) Copyright by Guillermo Nanez Falcon 1970

THIS DISSERTATION HAS BEEN MICROFILMED EXACTLY AS RECEIVED

ERWIN PAUL DIESELDORFF, GERMAN ENTREPRENEUR

SUBMITTED ON THE SIXTH DAY OF MARCH, 1970

TO THE DEPARTMENT OF HISTORY

OF THE GRADUATE SCHOOL OF

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR THE DEGREE OF

'Ulllermo Nanez Falcon

Professor Richard E. Greenl

Processor Frank L. Keller

Professor Pierre H. Laurent

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

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

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

oped province in northern Guatemala. As their businesses prospered,

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

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

cating most of the German-owned properties in the country.

to Guatemala as a place to settle, to invest capital, and to work.

the largest privately owned enterprise in the department. His busi­

ness encompassed not only coffee production and related operations,

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.

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

government reports, official publications, newspapers, memoirs, and

diplomatic officials in Guatemala to the Foreign Ministry office in

immigrant settlers as a means of increasing its population and stimu

mercantile houses in Guatemala City, Gradually their numbers in

by about 1900 dominated retail merchandising as well as the produc

the largest privately owned enterprise in the department. His busi

Alta Verapaz. Details of his personal life are subordinated to an ac

plantation labor system, the application of improved agricultural tech

certain elements of an economic infrastructure by undertaking trans

of the present-day firm, W. E, Dieseldorff, Sues. To supplement mate

Dieseldorff who donated the Dieseldorff Collection to Tulane Univer

Sues., whose help greatly facilitated the job of research in Guate

(Miss Marjorie Le Doux, Director); the Biblioteca Nacional de Guate

to attract immigrant settlers to their shores. The former Iberian colo

corporate ventures that involved the sudden mass transfer of popu

lation, and instead it endeavored to promote immigration on an in