Temuco is at a distance of a little less than five hundred miles from Santiago. It is situated on the Cautin River, and is the capital of the province of that name. Only thirty years old, this city already has a population of twelve thousand, and covers about as much space as an American town of the same size. Like an American town, also, its houses are mostly of wood, a striking contrast to the older towns, farther down the valley toward the capital. Although the temperature becomes quite cold here at times the houses are built without chimneys, for the people believe that fires are unhealthful. Churches, clubs and hotels have been built, and there are saloons where almost pure alcohol is dished out to the poor peons. Back into the wilderness from here and other places the government has pushed short spurs of railroads in order to open it up. The government locates the stations and lays out the lots, which are sold at low prices to actual settlers. The lands round about are sold at auction in good sized blocks of fifteen hundred acres or more. This land will bring from one to twelve dollars per hectare (about two and a quarter acres). A farm of two thousand acres of choice land could probably be secured for five thousand dollars in United States currency. The sales are generally made upon the basis of one-third cash, and the balance is distributed over a period of years. The only provision exacted by the government is that the purchaser must fence in his newly-acquired possessions, but this is oftentimes a great expense. This land when heavily stocked with cattle is said to yield very good returns. A few years ago every new immigrant was promised one hundred acres of land, a team of oxen, a barrel of nails and enough boards to build a small house. He was also advanced the money necessary for his transportation. All of this had to be repaid, however, and the land alone was the only actual gift. Under these terms many Germans were induced to come to this land of promise. Many of these settlers have done well, and some towns, such as Valdivia and Puerto Montt, are largely German cities.