Attempt at state capture
Following the Honduran declaration of independence in 1838 from the Central American Federation, Honduras was in a state of economic and political strife due to constant conflict with neighboring countries for territorial expansion and control.[54] Liberal President Marco Aurelio Soto (1876–1883) saw instating the Agrarian Law of 1877 as a way to make Honduras more appealing to international companies looking to invest capital into a promising host export-driven economy. The Agrarian Law would grant foreign multinational companies leniency in tax regulations along with other financial incentives.[55] Acquiring the first railroad concession from liberal President Miguel R. Dávila in 1910, the Vaccaro brothers and Company helped set the foundation on which the banana republic would struggle to balance and regulate the relationships between American capitalism and Honduran politics.
Samuel Zemurray, a small-sized American banana entrepreneur, rose to be another contender looking to invest in the Honduran agricultural trade. In New Orleans, Zemurray found himself strategizing with the newly exiled General Manuel Bonilla (nationalist ex-president of Honduras 1903–1907, 1912–1913) and fomented a coup d'état against President Dávila. On Christmas Eve, December 1910, in clear opposition of the Dávila administration, Samuel Zemurray, U.S. General Lee Christmas, and Honduran General Manuel Bonilla boarded the yacht "Hornet", formerly known as the USS Hornet and recently purchased by Zemurray in New Orleans. With a gang of New Orleans mercenaries and plenty of arms and ammunition, they sailed to Roatán to attack, then seize the northern Honduran ports of Trujillo and La Ceiba.[56][57] Unbeknownst to Zemurray, he was being watched by the US Secret Service. Having captured the aging fort at Roatán, he quickly sold the Hornet to a Honduran straw buyer on the island to avoid falling foul of the Neutrality Act. After successfully attacking the port of Trujillo, the Hornet unexpectedly encountered the U.S. gunboat Tacoma and was towed back to New Orleans. The nascent revolution continued apace, Zemurray's media contacts having spread the word in advance.[57] President Dávila was forced to step down, with Francisco Bertrand becoming interim president until General Bonilla handily won the November 1911 Honduran presidential elections.
In 1912, General Bonilla quickly granted the second railroad concession to the newly incorporated Cuyamel Fruit Company owned by Zemurray. The period of some of these exclusive railroad land concessions was up to 99 years. The first railroad concession leased the national railroad of Honduras to the Vaccaro Bros. and Co. (once Standard Fruit Company and currently Dole Food Company). Zemurray granted his concession to the Tela Railroad Company—another division within his own company. Cuyamel Fruit Company's concession would also be awarded to the Tela Railroad Company. United Fruit Company (currently Chiquita Brands International) would partner with President Bonilla in the exchange of access and control of Honduran natural resources plus tax and financial incentives. In return, President Bonilla would receive cooperation, protection and a substantial amount of U.S. capital to build a progressive infrastructure in Honduras.[55]
Banana multinational establishment and expansion
The granting of land ownership in exchange for the railroad concession started the first official competitive market for bananas and giving birth to the banana republic. Cuyamel Fruit Company and the Vaccaro Bros. and Co. would become known as being multinational enterprises. Bringing western modernization and industrialization to the welcoming Honduran nation. All the while Honduran bureaucrats would continue to take away the indigenous communal lands to trade for capital investment contracts as well as neglect the fair rights of Honduran laborers. After the peak of the banana republic era, resistance eventually began to grow on the part of small-scale producers and production laborers, due to the exponential rate in growth of the wealth gap as well as the collusion between the profiting Honduran government officials and the U.S. fruit companies (United Fruit Co., Standard Fruit Co., Cuyamel Fruit Co.) versus the Honduran working and poor classes.
Due to the exclusivity of the land concessions and lack of official ownership documentation, Honduran producers and experienced laborers were left with two options to regain these lands—dominio util or ''dominio pleno. Dominio util—meaning the land was intended to be developed for the greater good of the public with a possibility of being the granted "full private ownership" versus dominio pleno was the immediate granting of full private ownership with the right to sell''.[56] Based on the 1898 Honduran agrarian law, without being sanctioned the right their communal lands, Honduran villages and towns could only regain these lands if granted by the Honduran government or in some cases it was permitted by U.S. companies, such as United Fruit Co., to create long-term contracts with independent producers on devastatingly diseased infested districts.[58]
Social welfare programs for employees of United Fruit Company
U.S. food corporations, such as United Fruit established community services and facilitates for mass headquartered (production) divisions, settlements of banana plantations throughout their partnered host countries such in the Honduran cities of Puerto Cortes, El Progreso, La Ceiba, San Pedro Sula, Tela, and Trujillo.) Because of the strong likelihood of these communities being in extremely isolated rural agricultural areas, both American and Honduran workers were offered on-site community services similar to those found in other company towns, such as free, furnished housing (similar to barracks) for workers and their immediate family members, health care via hospitals/clinics/health units, education (2–6 years) for children/younger dependents/ other laborers, commissaries (grocery/retail), religious (United Fruit built on-site churches) and social activities, agricultural training at the Zamorano Pan-American Agricultural School, and cultural contributions such as the restoration of the Mayan city Zaculeu in Guatemala.[58]
According to a 2022 study in Econometrica, the UFCo had a positive and persistent effect on living standards in Costa Rica, which had granted substantial land concessions to the company from 1899 to 1984. The reason is that the company invested heavily in local amenities, such as education and health care, in order to attract and maintain a sizable workforce.[59]
Agriculture research and training
Agriculture research and training
Samuel Zemurray employed agronomists, botanists, and horticulturists to aid in research studies for United Fruit in their time of crisis, as early as 1915, when the Panama disease first inhabited crops. Funding specialized studies to treat Panama disease and supporting the publishing of such findings throughout the 1920s–1930s, Zemurray consistently was an advocate for agricultural research and education. This was first observed when Zemurray funded the first research station of Lancetilla in Tela, Honduras in 1926 and led by Dr. Wilson Popenoe.
Zemurray also founded the Zamorano Pan-American Agricultural School (Escuela Agricola Panamericana) in 1941 with Dr. Popenoe as the head agronomist. There were certain requirements before a student could be accepted into the fully paid for 3-year program including additional expenses (room and board, clothing, food, stc), a few being a male between the ages of 18 and 21, 6 years of elementary education, plus an additional 2 years of secondary.[58] Zemurray, established a policy where, "The School is not for the training or improvement of the company's own personnel, but represents an outright and disinterested contribution to the improvement of agriculture in Spanish America...This was one way in which the United Fruit Company undertook to discharge its obligation of social responsibility in those countries in which it operates-and even to help others."[58] Zemurray was so intensely adamant in his policy, that students were not allowed to become employees at the United Fruit Company post-graduation.
United fruit and labor challenges
Invasive banana diseases
Epidemic diseases would cyclically strike the banana enterprise in the form of Panama disease, black sigatoka, and Moko (Ralstonia solanacearum). Large investments of capital, resources, time, tactical practices, and extensive research would be necessary in search for a solution. The agriculture research facilities employed by United Fruit pioneered in the field of treatment with physical solutions such as controlling Panama disease via "flood fallowing" and chemical formulations such as the Bordeaux mixture spray.
These forms of treatment and control would be rigorously applied by laborers on a daily basis and for long periods of time so that they would be as effective as possible. Potentially toxic chemicals were constantly exposed to workers such as copper(II) sulfate in Bordeaux spray (which is still used intensively today in organic and "bio" agriculture), 1,2-dibromo-3-chloropropane in Nemagon the treatment for Moko, or the sigatoka control process that began a chemical spray followed by an acid wash of bananas post-harvesting. The fungicidal treatments would cause workers to inhale fungicidal dust and come into direct skin contact with the chemicals without means of decontamination until the end of their workday.[58] These chemicals would be studied and proven to carry their own negative repercussions towards the laborers and land of these host nations.
While the Panama disease was the first major challenging and aggressive epidemic, again United Fruit would be faced with an even more combative fungal disease, Black sigatoka, in 1935.
Invasive banana diseases
Epidemic diseases would cyclically strike the banana enterprise in the form of Panama disease, black sigatoka, and Moko (Ralstonia solanacearum). Large investments of capital, resources, time, tactical practices, and extensive research would be necessary in search for a solution. The agriculture research facilities employed by United Fruit pioneered in the field of treatment with physical solutions such as controlling Panama disease via "flood fallowing" and chemical formulations such as the Bordeaux mixture spray.
These forms of treatment and control would be rigorously applied by laborers on a daily basis and for long periods of time so that they would be as effective as possible. Potentially toxic chemicals were constantly exposed to workers such as copper(II) sulfate in Bordeaux spray (which is still used intensively today in organic and "bio" agriculture), 1,2-dibromo-3-chloropropane in Nemagon the treatment for Moko, or the sigatoka control process that began a chemical spray followed by an acid wash of bananas post-harvesting. The fungicidal treatments would cause workers to inhale fungicidal dust and come into direct skin contact with the chemicals without means of decontamination until the end of their workday.[58] These chemicals would be studied and proven to carry their own negative repercussions towards the laborers and land of these host nations.
While the Panama disease was the first major challenging and aggressive epidemic, again United Fruit would be faced with an even more combative fungal disease, Black sigatoka, in 1935. Within a year, sigatoka plagued 80% of their Honduran crop and once again scientists would begin a search for a solution to this new epidemic.[58]
Labor health risks
Both United Fruit Company production laborers and their fellow railroad workers from the Tela Railroad Company were not only at constant risk from long periods of chemical exposure in the intense tropical environment, but there was a possibility of contracting malaria and yellow fever from mosquito bites or inhale the airborne bacteria of tuberculosis from infected victims.
In 1950, El Prision Verde ("The Green Prison"), written by Ramón Amaya Amador, a leading member of the Honduran Communist Party, exposed the injustices of working and living conditions on banana plantations with the story of Martin Samayoa, a former Bordeaux spray applicator. This literary piece is the personal account of everyday life, as an applicator, and the experienced as well as witnessed injustices pre/post-exposure to the toxic chemicals within these fungicidal treatments and insecticides. The Bordeaux spray in particular is a blue-green color and many sources referring to its usage usually bring to light the apparent identification of those susceptible to copper toxicity based on their appearance after working. For example, Pericos ("parakeets") was the nickname given to spray workers in Puerto Rico because of the blue-green coloring left on their clothing after a full day of spraying.[55] In 1969, there was only one documented case of vineyard workers being studied in Portugal as they worked with the Bordeaux spray whom all suffered similar health symptoms and biopsied to find blue-green residue within the victim's lungs.[55]
Little evidence was collected in the 1930s–1960s by either the American or Honduran officials to address these acute, chronic, and deadly effects and illnesses warranted from the chemical exposure such as tuberculosis, long-term respiratory problems, weight loss, infertility, cancer, and death.
Labor resistance, although was most progressive in the 1950s to the 1960s, there has been a consistent presence of abrasiveness towards multinational enterprises such as United Fruit. General Bonilla's choice to approve the concessions without demanding the establishment of fair labor rights and market price, nor enforce a comprise between small-scale fruit producers and the conglomerate of U.S. fruit enterprises would create the foundation in which strife would ensue from political, economic, and natural challenges. The first push for resistance began from the labor movement, leading into the Honduran government's turn towards nationalism, compliance with Honduran land and labor reformations (1954–1974)*, and the severance of U.S. multinational support in all host countries' governmental affairs (1974–1976)*.[60] As United Fruit battles with Honduran oppositions, they also fight similar battles with the other host Central American nations, let alone their own Great Depression and the rising threat of communism.
Labor unionization
From 1900 to 1945, the power and economic hegemony allotted to the American multinational corporations by host countries was designed to bring nations such as Honduras out of foreign debt and economic turmoil all the while decreasing the expenses of production, increasing the levels of efficiency and profit, and thriving in a tariff-free economic system. However, the growing demand for bananas surpassed the supply because of challenges such as invasive fruit diseases (Panama, sigtaoka, and moko) plus human illnesses from extreme working conditions (chemical toxicity and communicable diseases).[58]
Labor unionization
From 1900 to 1945, the power and economic hegemony allotted to the American multinational corporations by host countries was designed to bring nations such as Honduras out of foreign debt and economic turmoil all the while decreasing the expenses of production, increasing the levels of efficiency and profit, and thriving in a tariff-free economic system. However, the growing demand for bananas surpassed the supply because of challenges such as invasive fruit diseases (Panama, sigtaoka, and moko) plus human illnesses from extreme working conditions (chemical toxicity and communicable diseases).[58]
Laborers began to organize, protest, and expose the conditions in what they were suffering from at the location of their division. Small-scale fruit producers would also join the opposition to regain equality in the market economy and push for the redistribution of the taken communal lands sold to American multinational corporations. Referencing to the Honduran administrations from 1945 to 1954, business historian Marcelo Bucheli interpreted their acts of collusion and stated "The dictators helped United Fruit's business by creating a system with little or no social reform, and in return United Fruit helped them remain in power".[60] As the rise of dictatorship flourished under Tiburcio Carías Andino's national administration (1933–1949) and prevailed for 16 years until it was passed onto nationalist President Juan Manuel Gálvez (a former lawyer for the United Fruit Company).
The General Strike of 1954 in Tela, Honduras was largest organized labor opposition against the United Fruit company. However, it did involve the laborers from United Fruit, Standard Fruit, along with industrial workers from San Pedro Sula.
Nationalist movement
By legalizing unionization, the large mass of laborers were able to organize and act on the influences of nationalist movement, communist ideology, and becomes allies of the communist party. As like in the neighboring nation of Cuba and the rise communism led by Fidel Castro, the fight for nationalism spread to other Latin American nations and ultimately led to a regional revolution. Americans struggled to maintain control and protect their capital investment while building tensions grew between America, the communist, and nationalist parties.
The 1970s energy crisis was a period where petroleum production reached its peak, causing an inflation in price, leading to petroleum shortages, and a 10-year economic battle. Ultimately the United Fruit Company, among other multinational fruit enterprises, would attempt to recover capital lost due to the oil crisis through the Latin American nations. The United Fruit's plan for recovery would ensue by increasing taxation and reestablishing exclusivity contracts with small-scale farmers. "The crisis forced local governments to realign themselves and follow protectionist policies" (Bulmer-Thomas, 1987).[60] The fight to not lose their control over Honduras and other sister host nations to communism failed, yet the nature of their relationship did change to where the national government had the higher authority and control.
Hurricane Fifi
In September 1974, Hurricane Fifi made landfall in Honduras as a Category 2 hurricane. The northern coastal region of Honduras was ravaged by this hurricane, especially the United Fruit Company's banana plantations which were flattened by high winds and flooded up to thirty feet of storm surge.[62] Banana plants were vulnerable to flooding and high winds, which uprooted and destroyed these plantations, significantly reducing the company's productivity in Honduras. The hurricane caused extensive damage to the infrastructure such as roads, railways, and ports which all supported banana production since they were used to transport bananas to export markets. Rebuilding this infrastructure added to the economic burden on the company, which eventually led to its demise in June 1970.
End of the Honduran banana republic era
At the end of the 1970s energy crisis, Honduras was under the administration of Oswaldo Lopez Arellano after he seized control from President Ramon Villeda Morales. Trying to redistribute the taken lands of Honduras, President Arellano attempted to aid the Honduran people in regaining their economic independence but was stopped by President Ramón Ernesto Cruz Uclés in 1971. In 1960, the Organization of the Petroleum Exporting Countries (OPEC) was created and did not involve Costa Rica, Guatemala, Honduras, Panama, and Colombia. Designed to strengthen the same nations that experienced extreme economic turmoil, the authority and control of foreign multinational companies, 1970s energy crisis, and the inflation of trade tariffs.[60] Through nullification of the concession contracts originally granted to the U.S. multinational companies, Latin American countries were able to further their plan for progress but were met with hostility from the U.S. companies. Later in 1974, President Arellano approved a new agrarian reform granting thousands of acres of expropriated lands from the United Fruit Company back to Honduran people. The worsened relations between the U.S. and the newly affirmed powers of the Latin American countries would bring all parties into the 1974 banana War.
