The years 1910 through 1920 were a period of rapid growth for the United Fruit Company. The 1910s saw the company explore various strategies, some more successful than others, and seek to expand in many directions, not unlike the octopus depicted in anti-UFC propaganda. In this decade the death of distance due to technological advancement began to strongly influence the banana trade. The first World War did much to highlight the power of modern technology, even if the conflict had little direct influence on Central America and the United Fruit Company. Indeed, the company was able to buy a number of military surplus ships at low cost after the end of the war. One of the ventures that gradually picked up steam in this era was tourism. The company launched the Golden Caribbean, a monthly magazine dedicated to the promotion of its trips1 By 1912, UFCO President Andrew Preston reported that “the rapid growth and great importance, from an earnings standpoint, of the marine freight and passenger service, has amply justified the development of the fleet.”2 Another boost to this part of the company came in 1919 when the 18th amendment banned alcohol in the US, but it remained legal on UFC cruises and destinations.3
Despite impressive growth in some areas, the United Fruit Company faced many challenges in the decade from 1910-1920. Probably the greatest was the spread of Panama Disease. By 1910 the epidemic had been blamed for the abandonment of around 8000 hectares each in Panama and Costa Rica as well as reduced production elsewhere.4 This would eventually lead to a shift away from reliance on the Gros Michel (Big Mike) banana.
Another important part of this decade that greatly impacted the United Fruit company were the technological advances that helped expand the banana trade and improve its profitability. In 1910 heterodyne alternator radio transmitters were installed at the New Orleans and San Antonio stations.5 This advancement made possible high quality and long-distance radio transmissions, including voice. The United Fruit company followed this investment up in 1912 by buying a majority stake in Wireless Specialty Apparatus Company, an American company that specialized in selling individual components as well as fully assembled receivers.6 Both of these moves allowed the United Fruit Company to become more independent and more powerful in Central America, showing governmental characteristics. Also, during this time period, the United Fruit company was the only major company that provided radio transmission service in Central America as other companies where not interested in fighting a powerful monopoly for such a small market.7 All of this led to creation of the Tropical Radio and Telegraph Company by the United Fruit company.8 Despite all of these advantages the United Fruit Company radio and radio in general faced many challenges in these early years. During world war one the Alexander bill of 1917 was put forward which would have given the U.S. Government the authority to purchase all commercial radio property in the interest of national security.9 The bill was eventually tabled, but the Navy took control of all shore stations as it prepared for war. After the war, the Navy wished to retain control of these installations, but there were strong objections from commercial interests and the bill was dropped. The US navy gave in and supported the formation of an American monopoly that became Radio Corporation of America (RCA) of which the United Fruit Company would become a part.10 The Radio Corporation of America was established by pooling the resources and patents of General Electric, American Telephone and Telegraph, and eventually Westinghouse. They were able to take over Guglielmo Marconi’s American subsidiary and create for all practical purposes an American radio cartel.11
This decade also saw a change in the United Fruit Company, as it gained more power in different areas it also became more willing to exert political influence in Central American countries. At the same time the US also became much more willing to intervene in central America. This combination led to US military interventions in Honduras five times, the Dominican Republic, Cuba, Nicaragua and Panama three times each, Haiti twice and Guatemala and El Salvador once each from 1900-1945. These interventions also increased the leverage and confidence of US Countries encouraging them to expand their business activities in the region.12 At the same time, however, this increase in US political and economic influence led local populations to organize resistance to the United Fruit company. Involved in this resistance were Latin American nationalists, leftists, and many academics who saw the United Fruit Company as a corporate predator. The UFC increasingly became a symbol and embodiment of voracious North American economic imperialism.13
1 Martin, 244
2 Martin 240-241.
3 Martin, 248.
4 Marquardt, Steve. 2001. “‘Green Havoc’: Panama Disease, Environmental Change, and Labor Process in the Central American Banana Industry.” American Historical Review 106 (1): 49. doi:10.2307/2652224., 49.
5 Drale, ChristinaS. “The United Fruit Company and Early Radio Development.” Journal of Radio & Audio Media, vol. 17, no. 2, July 2010, pp. 195–210. EBSCOhost, doi:10.1080/19376529.2010.517816., 200.
6 Drale, 200.
7 Drale 201.
8 Fraser, Robert. “WBF – A Typical Ute.” WBF – A Typical Ute, http://www.pateplumaradio.com/genbroad/utes/wbf.htm.
9 Drale, 203.
10 Drale, 203.
11 Drale 203
12 Bucheli, Marcelo. “Enforcing Business Contracts in South America: The United Fruit Company and Colombian Banana Planters in the Twentieth Century.” The Business History Review 78, no. 2 (2004): 181-212. Accessed March 5, 2020. www.jstor.org/stable/25096865. 2008, 439
13 Marquardt, Steve. 2001. “‘Green Havoc’: Panama Disease, Environmental Change, and Labor Process in the Central American Banana Industry.” American Historical Review 106 (1): 49. doi:10.2307/2652224., 51
