"El Ponton" would translate over to "the float" or essentially "the barge." Makes sense to become a nickname for a local storage hulk. If NELSON was salvaged and it is the vessel pictured, it would make sense that after the wreck it remained stationary, and in such an idle role could have lingered for a few years after she was taken off registers. To me that removal in 1959 and her scrapping circa the 1960's match up pretty well.
Kind Regards, Kyle

About the El Ponton, here is a rough translation of the Spanish text at this website, with assistance from translator websites, as I don't know Spanish:

http://melipullinforma.blogspot.com/2014/02/puerto-montt-en-1882.html

El Ponton was a ship which for many years was anchored in the Tenglo Channel forming part of the maritime landscape of our city.

Initially it belonged to the state-owned Ferronave, providing services of armory and collier (Maestranza y Carbonera).

In the interior, small boats were repaired and mechanical parts intended for steamships were manufactured.

Until 1958 it had in its prow a figurehead, which, at the request of Pablo Neruda, was retired surreptitiously, being sent to the North, to the House of the poet in Isla Negra.

In the mid-60 this vessel was scrapped. The picture was captured by Gilberto Provoste in 1955 in Tenglo Channel at Angelmo (a village or district of Puerto Montt).

Also thanksl to Bill Godfrey for his contribution!, this reveals that the storage hulk was still there after WWII, so was probably salvaged after it's mishap in 1942

Thanks Peter for his extensive coverage of the history of Puerto Montt!
May be you could also have a look at another outstanding question about the location of a picture at this site under LORETO!

Thanks a lot

Chris

Good work, men! Photo shows the Canal de Tenglo between the city of Puerto Montt and the Isla Tenglo (41°29'41.0"S 72°58'18.5"W) in north-eastern direction. Photo captured ca. 1929 after the rebuilding of Harbour pier and the new warehouses (left side). To be compared with this harbour view captured from the oppoite direction: http://fs5.directupload.net/images/151129/5apa7w3w.jpg The following description of the harbour history of Puerto Montt said: "Melipulli, which means “Four hills”, was renamed Puerto Montt on February 12, 1853, when it was founded by Mr. Vicente Perez Rosales under the government’s directive for the settlement of Valdivia and Llanquihue. (Note: From 1850 to 1875 the region around Puerto Montt received some 6,000 German immigrants as part of a state-led colonization scheme. Some immigrants were leaving Europe as consequence of the aftermath of the Revolutions of 1848 in the German states. They brought skills and assets as artisans, farmers and merchants to Chile, contributing to development. German settlement had a long-lasting influence on the society, economy, and geography of Southern Chile.) Port activity began immediately and shipments of wood towards Valparaiso and Europe quickly became very important. Wool, honey, leather, wheat and other goods were also exported. Years later a dock was built in 1888 and it was located in front of what today is the Plaza or Plaza de Armas. In 1929 construction began on a new port which was in the same place as it is today along the Tenglo Canal and protected from the south winds by the island with the same name. The port construction was finished in 1931 and consisted of a 280 meters (919 feet) sea wall which had sections of reinforced concrete 15 meters (49 feet) long. Because of the 1960 earthquake, the commercial port was destroyed when the reinforced concrete pillars crumbled and fell into the canal. The rebuilding work began in 1962 and was carried out by the Belfi Company that built the first stage including a sea wall 151 meters (495 feet) long based on poling and tie beams. This work was finished in 1966 and the sea wall was later enlarged to 184 meters (604 feet). A year later, the second stage of reconstruction was begun with 201 meters (659 feet) for berthing (385 meters in all or 1,263 feet), warehouse, rail line, pavement, building construction and installation of water and power supply as well. In 1979 the construction of ramps was started for the ferry terminal in Puerto Montt and it was finished during the second half of 1980."
Hope this may assist. Regards Peter

There is another picture of this ship, with "El Ponton" as its name in the accompanying text, here:
http://melipullinforma.blogspot.com/2014/02/puerto-montt-en-1882.html
It's the 5th picture down. There is also information about its history, in Spanish. The first sentence, translated, says "El Ponton was a ship which for many years was anchored in the Tenglo Channel forming part of the maritime landscape of our city."

I think you could be quite right there too Kyle!, there is an unreadable name on the bow but as I know your suggestion now I think I can read Nelson indeed.
After consultation with a loupe the bow sprite construction also looks quite similar as on the foto of the Nelson.
Some very clever research here, thanks.

Chris

I've found no pictures of her in such a condition to support my idea, however the barque NELSON, built as a full-rigged ship in 1874, was owned out of Puerto Montt at one point, and spent the years of 1906-1914 and 1926-1959 under the Chilean flag. She was wrecked in the Chacao Channel near Puerto Montt in 1942, but not deleted until 1959, so I cannot confirm if she was salvaged or just delayed in deletion.
A photo of NELSON taken at an unknown date: http://www.photoship.co.uk/JAlbum%20Ships/Old%20Ships%20N/slides/Nelson-52.jpg

Kind Regards,
Kyle

See this web page for a couple of old pictures of Puerto Montt, taken from about the same spot.
http://www.museodeniebla.cl/643/w3-article-24722.html

Thank you Kyle and Miraflores, I think Puerto Montt is right!, now only question remains is the identity of the sailing ship hulk!

The pier looks to match that where the Navimag ferries moor at Puerto Montt. In Google Maps the street view from near the Discotheque Club Angels shows the pier, with the similar hillside of the island in the background. Photo likely taken from where the houses on the street Galvarino Riveros are.
Kind Regards, Kyle

The bay looks similare to Puerto Montt, but not the pier.
But there could have been much change since the photo was taken 80 - 100 years ago.

All the vessels in the bay have more or less the same funnel similar to Ellermans!, probably a local Chilean? company

2 - 3 meter difference between high and low water, cargo ship with Ellermann funnel at the pier