Letters written by John Begg

Mr H McCulloch Lima 21^stMarch 1822

Mr WP Hartnell

Dear Sirs

The Copartnership which exists between us will we hope be placed on your arrival in California upon a permanent footing and lay the foundation to your future prospects & happiness in life – if such be the result of this mission we shall feel the proud satisfaction of advancing in the world those whose faithful and zealous services for the good of our establishment merit our acknowledgement and support.

Next to permission to remain in the country your fortunes will depend on your own exertions, in which we have every confidence that nothing will be wanting to crown them with success. The introductory letters which you carry we hope will secure you a good reception and pave the way for the extended operations which we contemplate. We apprehend that you will at first have difficulty in collecting produce in any quantity as the commerce of that country has ….... been carried on to a very limited extent and the Imports have been proportioned to it - you will consequently find that to force it beyond it's usual limits you will require the aid of ready money which is the only medium to supply the balance of Trade. You will bear in mind that a loss will undoubtedly be sustained by exchanging money for Tallow at $6 per ? Which would bring it to 52 to 55 per ? put down in England, therefore it can only be taken in barter for goods on which 100 to 150 per cent profit should be gained in order to make it a [saving?] business. For hides cash may be paid if they can be had at as cheap a rate as we given to understand, to wit – 2 to 4 rials each or even at a higher price, and we would point out to you to make your contract for Tallow in exchange for goods – and for Hides in part goods and part cash, provided you cannot do it for goods only. There is also the article of Horse hair respecting which you have verbal instructions and likewise Manteca de Chancho and Graza for this market of which you are fully informed. We believe you will also be able to meet with fur skins and in the note accompanying this you will find them mentioned. Sheeps wool if of fine quality may be a profitable remittance when light stowage is required to fill up a vessel and this article you will also find in the note referred to.

We anticipate some considerable expense in the first formation of the Establishment, such as the construction of houses or sheds where the produce will be collected and prepared for shipment and in order to avoid expenses which are not imperiously necessary we would advise you before laying out money in this way to select one or more central places convenient for embarking the produce with safety and facility and there erect the Edifices required. Do not have the produce scattered in different points but rather pay a land carriage to have it all together near some safe and commodious bay where a vessel can lay with security. This will greatly facilitate our operations and most likely reduce the rate of freights. You will be particular when you write us in stating the places at which the produce is collected, it's quantity and quality and the description of the Bays or Ports where the vessels must touch at to receive it. You must be aware that it will be attended with an additional expense to charter a vessel for an undefined voyage and therefore you will be the more convinced of the necessity of having fixed and appropriate places for the reception of the produce and in the selection of these places attention must be paid to the seasons, winds and currents which prevail on the coast and the nature of the produce which can be had in the greatest abundance in the vicinity – for example the place where the vessel first begins to load must be where the heavy produce is laid up and the last point where the light produce is to be found.

You will give us particular information of the description of goods consumed there, and to what extent the consumption can be carried. The articles of Panos de la Estrelle and Bayetone of which we will always be able to supply you at a cheap rate endeavour to bring into use as much as possible and also all other kinds of English manufacture in which we must also …. a national Interest.

By the return of the John Begg we expect you will be able to give us encouraging hopes of a full cargo for the Caledonia by the time she can be with you – we look for her in July and shall have her ready to send down on the first intelligence we receive from you – as she will carry her return cargo to Valparaiso and there tranship it for England, you will avoid if possible loading more tallow than will serve as Ballast but endeavour to fill her up with the articles pointed out for the European markets.

With our sincere wishes for health and every wish for success.

We remain Gentlemen

Yours most truly

John Begg & Co

[Insurance document]

Lima 23 March 1822

Mr Hugh McCulloch

WP Hartnell

Gents

In regard to insurance on the property shipped from California we shall write to England to cover it as interest may appear and therefore it will be necessary that you should lay a profit on the Invoices of 20 to 50 per cent say to charge Tallow 12 to 16 rls per ? More than it actually cost, and Hides 4 to 6 rls more than you pay for them – and other articles in the same proportion.

Take 6 Bills of Lading for the shipments you make and forward 2 per the vessels and the others by the next opportunity you may have.

We remain

Gents

Yours truly

John Begg & Co.

Messrs Hugh McCulloch Lima 25^thMarch 1822

W P Hartnell

Gents

As we have no doubt of your being able to establish yourselves in California, we conceive we would run no risk in sending you a vessel of 150 to 200 tons in all June or July to carry away the produce you will have collected between the period the John Begg leaves you and the time the vessel alluded to can arrive. You will therefore in anticipation be getting together in some safe point a Cargo either for England or this place – if for this- Wheat if to be had at 2$ to 20 rls per [Fanega?] would we should think be a safe article as none can be expected this year from Chile – but in succeeding years it will not be safe as the difference of freight will be too great.

If you find Hides plenty and can cure them well in so short a space of time you may prepare a Cargo for England but this we leave to your own discretions.

We remain Gents

Yours Truly

John Begg & Co

= Note of Produce =

Horn Tips	will always pay in England and will serve as dunnage
Horns	are more valuable than the Tips only, but the space they would ooccupy might make them objectionable, unless you had not produce to fill up
Deer Horn	we should think might be sent to England with advantage and to save stowage should be cut into pieces, but care should be taken in cutting them that the valuable parts be preserved.
Horse Hair	if enough of the tail can be had take none of the mane or short hair as the longest is preferred – the white hair is the most valuable and should be kept seperate - to save stowage it should be plait and compressed with ….. and then put into hide covers – the price in England is 8 to 11 per ? Duty 20 per cent on valuation
Hides	the Ox are the most valuable, the Cow and Bull not so much so by 20 per cent, besides the [smallness?] of the Cow Hide which by purchasing at a certain rate per Hide may be a matter of much consideration – Duty 10 per Hide
Horse Hides	Are worth in England from 5/- 7/6 each and pay the same duty as Ox and Cow to wit 10 per Hide. If you find a scarcity of Ox and Cow a Cargo may be made up with Horse.
Deer Skins	May also be sent – duty 4 per skin
Fur skins	You will see by the Prices Current are at a high price – but their quality is difficult to choose – however they may be sent.
Sheeps Wool	Wool of all qualities pay 6 per lb duty – therefore only the fine will do – a few packs may be sent on trial.
Tallow	Duty 3/.2 per Cwt – the breakage upon a long voyage may be calculated at 10 to 12 per cent and 12 per cent the difference between the Cwt and quintal. To England the freight will not be less than 12/- to 15/- per Cwt which with charges will make it stand 55 to 58/- per Cwt, allowing that it costs 6 Dollars per ? and not more than 50 ? per Cwt can be reckoned on for it's price – however if you are obliged to receive a proportion of it, a markup must be found for it. It will sell in this place to a profit but not in great quantity. The Deer Tallow should be kept separate.
Graza, Manteca de Chanco, Soap, Cheese , Butter, ….. Tongues and Beef and Pork may be made valuable articles of commerce to this place

[Initialled]

Lima 1^stAugust 1823

Messrs McCulloch Hartnell & Co.

Monterey

Gents

We beg to enclose you dup. of our respects of 2 May which we directed to you per Neptune and now repeat the pleasure by the Hebe which we send with the object of loading for this Coast. It was our intention to have sent you the Caledonia but she has been employed as a transport for the last 3 months and has not yet returned from …........ .The Hebe will we expect carry off all the produce you have collected, for altho she measures only 225 tons she will carry nearly 400. We enclose you Copy of the original Charter party and also of the agreement of the Captainss to use this vessels boat in the discharge and loading of cargo. Also of our instructions by which you will observe that she touches at Valparaiso on her return and from thence comes to this place or proceeds to Liverpool as circumstances may point out.

The prospect of a war in Europe which will likely interrupt our relations with Russia may make Tallow an object worth attending to. But we fear if a rupture with Russia takes place that your operations will be materially …....... if it does not entirely break up your Establishment. By accounts from England of April last war between France and Spain was considered inevitable and altho England had not openly espoused the Cause of the latter yet there is little doubt she will be drawn into it.

From Mr Brotherstons letters we infer the apprehension of a General Continental War, and perhaps you may be better able to gauge how the Independence of Alta California will be [affected?] if Russia enters into hostilities with England.

That she would endeavour to take possession of that Country may be questioned – But how far she maybe impede our trade is a subject for our mutual consideration. By the enclosed dups. you will gather our sentiments as to the line of Produce you ought to pursue in regard to forcing the trade to it's utmost extent and we hope that the measures you would immediately adopt will secure a very large increase of produce for next year. If you can [alarm?] the reverent fathers do not allow their Zeals to cool but urge them to place beyond the reach of Contingency the property which can be …...... into any thing like articles of Commerce. If during the winter season you can act upon this let your time be employed in Salting down hides and piling them in such a way that the water will run from them and that they be in a dry and good condition for shipment per the first vessel. The [finance?] for these operations will be at your commands and by the return of the Hebe you will be able to inform us to what amount you will require. But we expect that for a good portion of them you will be able to [negotiate Bills payable in Spain?] as you have already done in two instances.

We enclose extracts of a letter from J Brotherston & Co relative to the curing of Hides by which you will see the necessity of attending particularly to the manner of stretching them. Also as to Salted hides you will observe they are exposed to ferment and those you do salt be careful they be not shipped in a wet state. By exposing them the salt will dry and encrustate and in that state we should suppose they would be perfectly safe.

You have also extracts of a letter from Wm Harrison & Co of 9 April on the subject of the vessels from you touching at Rio for the purpose of examining into the state of their cargo. If the Neptune has not left the Coast on receipt of this you will give the Captain the necessary instructions.

The letters accompanying this will inform you of our political situation and also hand you Invoice of Panos de Estrella & Bayetones etc. we would have shipped to a larger amount but as they would arrive at an advanced season we thought it better to defer it until the first Spring ships when we can [count?] on information from you.

The Tallow per John Begg and Baring we have sold at 12$ per lb?. It is retailing a …... at a time at 13$.

Considerable imports have arrived from Buenos Ayres both of Tallow & Candles which have tended to depress prices. By the Prices Current you will observe that it keeps low in England.

Hides maintain their price and in event of a war may be expected to advance.

You have every stimulus to [exact your best exertions?], which the prospect of gains, and the political uncertainty of affairs can …..... present and we hope that not only the whole of your effortspersonal effortswill be directed to make the most of your present situation but that your [Comb..........?] and prudence will secure the best results. We shall be anxious to hear from you and hope you find [adv.....?] will be as satisfactory as we anticipate. The Bahia Packet ought to have sailed before this and the Neptune well advanced in her loading. These two vessels will take away 30,000 Hides and we expect the Jno Begg will be dispatched with some 7 to 8000 by the end of the Season.

If Tallow advances in England to a price which will pay the Hebe will be sent on with what she may have and tranship in Valparaiso any part of her cargo destined for this market. Salt Beef continues low altho the expeditions to the Intermedios have taken much out of the market. …......... at present cannot be quoted higher than 15$ per barrel but from the …....... which have been made on we expect the imports will not be to …........ as they have been hitherton. Graza is little enquired for and as we before have stated the consumption is confined to the troops. That [bought?] for the expeditions cost 18$ per ql? But this price is no ….... .Manteca has been kept down by the large amounts of …..... from all quarters and cannot be quoted higher than 2½?.

We send you a few Newspapers from which you can glean the European News.

[And we send our?

Gents

Your mo obdt Servt

John Begg & Co.

Lima 2^ndAugust 1823

Messrs

McCulloch Hartnell & Co

Gents

On reflecting on our instructions relative to the Hebe touching at Valparaiso we consider it would be more to our mutual interests that she should come down to this port as by doing so she will avoid the tonnage duty and port dues of Valparaiso also the commission of Begg Barnard & Co for receiving and forwarding the cargo agreeable? to instructions – besides if she go on to England expenses will be saved by having discharged here that part of her cargo saleable in this place instead of incurring upon it a new freight and sending the same on direct from this port.

The only advantage that might attend touching at Valparaiso would be the lessening of the voyage some 15 or 20 days and even as this is problematical and her going to England uncertain we consider under all circumstances that it would be more conducive to our interest that you direct her to come direct to Callao.

We shall [arrange insurance?] accordingly.

We remain

Gents

Yours truly

John Begg & Co

Lima 24 September 1825

Messrs McCulloch Hartnell & Co

Gents

We have to acknowledge your favours of 15 May and 21 July last per Junius and Pizarro both which vessels arrived in safety the former in 70 and the latter in 43 days.

We are sorry you should still have to complain of vessels being sent you without your having cargoes ready for them but the funds in your hands are so considerable and your shipments so comparatively small that your Mr MacCulloch agreed with us that you should have had a cargo ready for the Esther on her arrival and as we got her at a low rate of freight we considered …...... to send her down when we did. In future we shall be guided by your orders on the vessels we send from this. We are a good deal surprised that you say nothing of the Hides you must have in stores of this year. The season we are informed was favourable and the quantity you would be able to collect would be considerable. We hope that next year your shipments will not be less than 30,000 unless having no vessels waiting for cargo you relax in your exertions. You will be pleased to bear in mind

that in 3 years your remissions of Hides have been under 40,000.

The John Begg put into Rio 24 May where she was landing her cargo in rather bad conditions. We have no exact information as at the date of Wm Harrison & Co's letter she had not opened her hatches. By an Americanwhich left that port 4 June she was still there and we hear that the Hides were very much damaged. The …........ of the Esther will bring …......... freight against this cargo which will take away the profit which would otherwise arise from it.

You say you have taken a farm capable of maintaining 2 to 4 thousand head of cattle but you do not inform us the rent you pay for it or the conditions on which it is taken. This we will thank you to communicate for our approval. We have already expressed to you our opinion that the consumption of salt beef in this [quarter?} is not adequate to an expensive establishment for curing it. The vessels of war of England France and America receive their supplies from [Homes?] which we could not anticipate. The quantity required for Merchant vessels does not exceed 7 to 800 Brls a year of which one half would fall to our [shores?]. The Americans …..

[The rest of this letter of which there are several more pages is difficult to transcribe precisely but it appears to focus on two issues – firstly the prices and amounts of various product sales and secondly and most notable Begg's disapproval of the fact that Hartnell has taken on such a large farm as he doesn't believe the market for salt beef will provide sufficient demand for the number of cattle Hartnell is proposing to stock the farm with. Begg believes 500 to 1000 head of cattle would be adequate for a year's supply]

[One excerpt from a later page reads as follows:]

By the Speedy we remit you some 6000$ in cash and 18000$ in Goods which for the immediate object of your business is an abundant supply. On the receipt of this property you ought to have at your command in one shape or other at least 50,000 Dollars....

Lima 27 September 1825

Messrs McCulloch & Hartnell

Gents

We herewith enclose you invoice and Bill of Lading in Goods and cash shipped per Speedy amounting to $21799.6 and for the Young Tartar $546.-, and for your H P Hartnell $168.6 .There are various articles which you have ordered and which could not be met with in the market. Instead of India calicoes we have sent you 1000 pieces madapolams of various lengths which we hope will answer equally as well. The goods of this invoice are all charged at very low prices, indeed from the late advance at home they could not be purchased there at the same rates. You complain of the quality of the goods we have hitherton shipped you but we can assure you they have always been the best of the kind which could be found in this market. On this occasion we have sent a case of fine fancy dresses charged at 5$ which we hope will be approved of also a Bale of worsted splush which we think you will be able to sell to some advantage. The 5 cases of bleached [creus?] you will find well adapted for shirting and they are charged at cost prices. Prints we could get none of a quality we could recommend and have sent you 4.70 ps of chintz muslins which we hope will serve in some respects as a substitute. The Blue Nankeens we expect you will find suitable and prefer to the Indian.

You have enclosed copy of the Charter Party of the Speedy which vessel we have got at a very moderate – she is fast and will stow a good cargo – we expect that with you she will meet with little or no detention.

We shall not be able to send you from this Lime for preparing the Hides as it is difficult to be met with and a very high price. We have before mentioned to you that the ashes of wood will do equally as well and this we conceive you can get in any quantity and would recommend you to have always ready sufficient to serve the purposes required.

We remain

Gents

Your most obedt Servt

John Begg & Co

PS From …...... I have been given to understand that turpentine is the best remedy to keep the worms away – please enquire and let me know if you want any sent down.

Lima 18^thApril 1826

Messrs McCulloch & Hartnell

Monterey

Gents

We beg to annex a/sales of the tallow rec'd per Speedy nett proceeds $26997.2½. The sales of the Junius's cargo we have not been able to send you by this opportunity butthey shall be sent per next vessel. Of the Pizarro last ….... 2 ….... were noted in the a/sales as short delivered but on looking ….. the Bills of Lading we observe there were two in dispute which accounts for this deficiency.

We remain

Gents

Your most obedt Servt

John Begg & Co

Lima 6 August 1827

Messrs McCulloch Hartnell & Co

Gentlemen

We accompany our respects of 17 ulto in dupt and now wait on you with Charter party of the Brig Laura of 159 tons which we have taken up for Liverpool for the lump sum of £900. She touches at Guaymas to land some stores for a mining company in that neighbourhood and we expect she will be with you in all October – her charter we doubt not you will consider reasonable and we hope you will be able to give her 8 to 10000 hides without finding the lay days.

We look for the Aurora in all next month and if we meet with another vessel of her size on moderate terms we shall take her up to be with you in October. We have had no later intelligence from Buenos Ayres, the winter has been severe and the state of the Cordillira has interrupted communication, we know however that a commissioner had gone to Rio with powers to make peace, but the conditions are of course concealed. The Emperor was about rejoining his army at Rio Grande with a considerable reinforcement and would take the field in person. The army of Buenos Ayres is represented to have diminished much by desertion and the Seperation of the provinces and the Govt. is incapable of applying any remedy. To all appearances the war cannot last much longer and we do not think the Laura's cargo will do more than save itself. When the Cordilliro opens large parcels of tallow are expected from Mendoza which is superior in quality to that of California, and as the duty will be reduced to a dollar per quintal it can be imported on better terms than from your quarter – the price at which tallow has sold the last two years is far above it's natural value and in the ordinary course of trade it must come down. The stock of hides at home have increased although

[Plate?] has been shut for more than 2 years.

We have no advices from Liverpool since our last but daily look for the March and April Packets. Our market is improving fast and a great scarcity of every staple article felt. In politics we scarcely know how we are as different parties and different opinions perplex the mere looker on.

Bolivar tendered his resignation to the presidency of Columbia which the Congress has refused to admit. General Lamar is elected President of this and is daily expected from Guayaquil.

We remain, Gentlemen

Yours truly

Jno Begg

The charter party be so good as send on per vessel to J Brotherston with the lay days noted on it.