154 



THE INDIA RUBBER WORLD 



[January i, 1909. 



The Proposed Para Rubber Syndicate. 



,_^nE rubber importing interests of the United States and 

 I Europe have been much concerned of late over reports 

 from Para of a movement having for its evident object 

 the placing under larger control of Brazilian interests the ex- 

 portation of rubber. The actual production of rubber on the 

 Amazon and its preparation for market have always been al- 

 most solely under Brazilian control. The New York importer, 

 for instance, simply buys the rubber required by his customers 

 at two or three ports in South America, without regard to how 

 it may have reached the primary markets. While nothing 

 definite appears to have resulted as yet, it may be of interest 

 to review the situation as far as developed. 



Under laws existent in Brazil since 1903 — particularly a decree 

 of the Federal government, No. 979, of January 6, 1903 — 

 syndicates may be organized in the agricultural and rural in- 

 dustries "for the defence of their interests," including all the 

 benefits of cooperation, the foundation of credit banks, and the 

 enjoyment of various favors from the government. The benefits 

 of such legislation, it is understood, are to be participated in 

 only by Brazilians. 



Recently the legislative assembly of the state of Para has 

 approved of a proposal to extend definitely the provisions of the 

 decree of 1903, to the rubber interest, the wording of the 

 proposal, introduced into the chamber of deputies by Senhor 

 Joao Cheves, being as follows : 



Be the Governor authorized to concede to Syndicates duly authorized, 

 in accordance with the Federal law No. 979, of .Tanuary 6, 1903, which 

 are to be founded in this state and recognized by the state government 

 with the exclusive intent to associate for common intent and in benefit 

 of their interests as aviadores of the rubber industry, or producers of 

 this commodity, a diminution in the value of export duties on Fine 

 and Medium rubber, exported abroad directly by the mentioned Syndicate 

 on the basis of the following paiUa table — 



Up to 5,246 milreis per kilogram 22 per cent. 



From 5,250 to 5,500 milreis per kilogram 21 per cent. 



From 5,501 to 5,800 milreis per kilogram 20 per cent. 



From 5, Sot to 6.100 milreis per kilogram 19 per cent. 



Over 6,100 milreis per kilogram 18 per cent. 



This disposition to be immediately executed as soon as the Executive 

 power draw it up. The Executive power to take the necessary provisions 

 that the favors of this disposition shall not be attributed to others but 

 those whom it intends to beiiefit. 



The foreign houses engaged in the export of rubber from 

 Para have united in a petition to the governor of Para pro- 

 testing against his approval of this measure. Furthermore, the 

 various houses in New York, Liverpool, and London, with which 

 these firms are affiliated, have appealed, through their respective 

 home governments, in protest to the Federal government at 

 Rio de Janeiro that the proposed action at Para is inconsistent 

 with the Federal constitution of Brazil, which guarantees equal 

 rights to all persons in trade, be they Brazilians or citizens or 

 subjects of any other nation. It is pointed out in these protests 

 that the effect of the proposed law would be to give Brazilian 

 exporters of rubber an advantage over foreign houses of at least 

 4 per cent., whereas the trade to-day is worked upon a basis of 

 Yz to I per cent. 



The New York signatories to the protest sent through the 

 United States state departinent are Messrs. New York Com- 

 mercial Co., General Rubber Co., Poel & Arnold, and A. T. 

 Morse & Co. 



The signatories to a communication to the London Chamber 

 of Commerce are Messrs. William Symington & Co., Limited ; 

 A. H. Alden & Co., Limited ; G. A. Witt, Hecht, Lewis & Kahn ; 

 Ed. Schliiter & Co.; and Meyer & Bussweiler, Limited. They 

 ask that the Para matter be brought to the notice of the British 

 government, with a view to representations to the government 

 at Rio. Besides, Messrs. Heilbut, Symons & Co., of London, 



and five other firms in the rubber trade, addressed the London 

 financial house of N. M. Rothschild & Sons, whose reply to the 

 letter concludes : "We can only express the opinion that the 

 Brazilian government is not likely to grant such a concession." 



• In an interview for The India Rubber World, a former con- 

 sul on the Amazon, now engaged in the commerce in rubber, 

 said, substantially : 



"No rubber syndicate such as the proposed law provides for 

 has been formed as yet, so far as known to the trade. Naturally, 

 if formed, it would be composed of aviadores (the firms who 

 bring rubber to Para) and seringueiros (the owners of the 

 rubber producing camps). It has been suggested that the pro- 

 posed syndicate would be backed by the Banco do Brasil, which 

 lately has opened branches at Para and Manaos, with authority 

 to accept rubber as security for loans, but I do not think so. They 

 probably would lend to such syndicate as to any other merchant. 

 By the way, the advantage to the proposed syndicate would not 

 be alone in the reduced tax on exports — it would enjoy favors 

 from the government in the way of free admission of imports 

 on materials needed for the building of roads, putting on 

 steamers, and otherwise improving their properties for the pur- 

 pose of extending the trade in rubber." 



The interest of foreign exporters is not confined alone to con- 

 ditions in Para ; they consider the possibility that similar pro- 

 visions might also be adopted in Amazonas state, of which 

 Manaos is the capital. Besides, there is the great Federal dis- 

 trict of the Acre, with a large production of rubber now exported 

 imder a duty of 20 per cent, in connection with which the Fed- 

 eral congress lately has considered an amendment to the national 

 budget as follows : 



"The president of the republic is authorized to accept for rub- 

 ber exported from the Acre a sliding scale of duties based upon 

 the price of the product, and in which the present duty may be 

 reduced as low as 14 per cent., in favor of producers who may 

 form a syndicate according to law No. 979, of January 6, 1903." 



The protests of American and European houses in the rubber 

 trade apply likewise to the above measure. 



ONE KUBBER TAX REDUCED. 



A NEW law enacted by the legislative assembly of the 

 state of Para, which came into force on November 2, is trans- 

 lated thus by The Brasitian Review: 



Art. I. During five years, as from January i, 1909, neither the state 

 nor the municipalities shall be permitted to impose taxes on any of the fol- 

 lowing: Milho, hulled rice, cotton, and beans. 



Art. 2. The municipalities shall not levy a tax on rubber exceeding 

 150 reis, paper, per kilo. [This equals, at the current rate of exchange, 

 aout 2j^ cents, gold, per pound.] 



Sola Far. No further tax, whatsoever its denomination, shall be levied 

 on rubber, or on rubber producers, including the ta.x at present levied 

 on estradas de seringa. 



Art. 3. All dispositions to the contrary are hereby revoked. 



The state of Para comprises upwards of 50 districts, cor- 

 responding to counties in the United States, though in Brazil 

 they are self governing to a large degree. They are called 

 municipalities and each is governed by an elective mayor (»h- 

 tendente). In the past a local export duty has been imposed, 

 the rate varying in the different municipalities, in addition to the 

 general tax imposed by the state. The collection has actually 

 been made at the Para custom house, the proceeds being remitted 

 to the various local authorities. The tendency of the municipali- 

 ties has been to increase the local rates on rubber, and it cannot 

 be stated here what the figure has been of late, but the fact 

 that the new law fixes the maximum at 214 cents per pound, 

 and this is regarded as a reduction, would indicate that the local 



