September i, 1909.] 



THE INDIA RUBBER WORLD 



421 



Rubber Selling on the Amazon. 



To THE Editoh ok The India Kuiipkr WdKi.n: Why is it that manufac- It is only natural, llurefore, that consumers of rublxT llavo \trv- 



turers of rubber goods-thc consumers o{ the raw material-are oblined f^.^^^ji „", i^,^, ruMlcr from houses at their doors, conducted bv 



10 buy their >upplics from less than half a dozen dealers? It seems to mc , , , r -i- ■ i .1 1 • . < , , . ' 



....■■.; . J .u . ui t r 1.1. „ A t a , „ merchants who have fainilianzcd themselves with the who e situ- 



Inat herein is the secret of the recent hlpli prices of rubber, and of nuctua- _ v . v^ v n. 



tioiis in rubber prices Rcnerally. ation. risked miich capital, and in the end have almost inonopo- 



New York, August 19, 1909. a manufacturer. lizcd the importation of rubber. 



THIS is a very timely, as well as a very pointed question. It There are indications, however, of changing conditions in the 

 shall have careful attention. The first suggestion that trade. Hundreds and thousands of rubber producers in the 

 comes to mind, however, is to propose another inquiry: .\mazon interior are asking themselves why they— or their con- 

 Are rubber manufacturers oliliged to bn.\ their supplies from signees— arc compelled to sell their rubber to "less than half 

 only a few firms? a dozen dealers." It has been because our correspondent, and 

 In the years wdieu The I.\1)i.\ KLiiKEK World was getting a other manufacturers like him, have not cared to maintain buying 

 start a very important volume of business in crude rubber be- houses on the .Amazon. The new condition to be noted is the 

 tween Para and New York was done without the intervention consolidation of rubber producing interests on a better financial 

 of middlemen. For example, the late Hon. Elisha S. Converse basis than formerly, rendering the producer less dependent upon 

 and the late Joseph Ranigan, sharp competitors as they were in the buyer and the price of the moment. Likewise the producer 

 selling their products, carried on their buying of Para rubber is becoming able to meet the consumer at least half way in any 

 through the same channel. In other words, they bought in system which may be organized for bringing the scriiigal and 

 Para and received direct shipments. And to-day the United the rubber factory nearer together, instead of the manufacturer 

 States Rubber Co., while they may buy rubber in any market being obliged to do all the work, and assume all the risk, as in the 

 which may prove attractive for the time being, are proceeding past. 



upon the theory of buying as near the source as possible. They The .-\mazon is ready to-day to sell rubber in New York or in 



have their own buyers, for example, at Para and Manaos, just Liverpool, froin "first hands," as freely as in Para or Manaos. 



as any individual or firm on the earth may do. ALVES bhaga company. 



Rubber is freely offered for sale at Para— as freely as postage 1•y^^ j^^^.^^ l^r.,g., Kubbcr Estates and Trading Co.. Limited. 



stamps at any post office. The people who own the rubber are ^^.^^^ registered in London, January .?o. 1909, with an authorized 



looking for buyers. They can't eat it ; they can't wear it in the capital of £2.40,000 in 6 per cent, (cumulative) preferred shares 



crude state; it has no ornamental use: they want to sell it as and £200,000 in ordinary shares— total, £440,000 [=$2,141,260]. 



quickly as possible after it comes into their bauds. In the -|-,,c domicile of the company is in Liverpool. The objects are 



ordinary course of events rubber comes down the Amazon, j^, ^.,,,j,,r ■^^^^ partnership with the firm of Alves Braga & Co., 



from hundreds and thou.sands of scriiigiics—hy steamer or launch „f p^^^ Brazil, and to adopt certain agreements between this 



or canoe— in lots of pounds or hundredweights or tons, con- f^^,,^ ^^j,,^ merchants in Liverpool and el.sewhere ; to carry on 



signed to hundreds of merchants who, in some way or other, „,g business of rubber growers, gatherers, manufacturers, brokers, 



have made advances to the producers of the rubber. The pro- dealers, and merchants, at Para and elsewhere ; to acquire landed 



ducer may come down stream himself, with his year's "crop;" properties in Brazil and elsewhere; to acquire and operate 



but in any event the rubber is most likely to come into the g^jps ^^ boats; to lend monevs and guarantee the 



possession of the general merchants who for a year have pro- fulfillment of contracts ; and in general to engage in 



visioned the rubber camps, and as soon as the rubber arrives .^^y forms of business necessarv to the carrying out of these 



these merchants hasten to realize on it, for have they not bills 0^;^^^^. The president of Brazil on March 18, 1909. signed 



to meet for goods bought in Europe? The system will appear ^^^^^^^ ^^ .y,,, authorizing this company to operate in lb.-,t 



simple to the reader who can recall the era when cotton planters reonblic 



in the southern United States drew upon their factor for all sup- y,^^, fl^^, directors are Jose Simao da Costa, actuarv, of Para. 



plies needed during a year, and shipped the cotton crop to that .^^^j Eduardo Angusto da Costa, merchant, of Liverpr:ol. with the 



factor when it was gathered. jaj, „,,nied the first managing director. The management in 



In a single week rubber may come down the Amazon to more jj^.erpool mav appoint directors resident in Brazil for the man- 



than a hundred merchants. Does any one wish to buy? Wdl ..gement of the company's business there. The first secretary is 



some one kindly buy? Please buy! The merchants are more Ridiard Clege Harrison 



than anxious to sell. "W^hat do they care alwut who l.uys^ A .j-,,'^ house of .-\lves Braga & Cn. is among the most inip.:rlani 



manufacturer's money would look as good to them as any <ither j,, p^^^^ ^^^-^^ ^^^,^ established for more than 20 vears. The 



money. "While it is true that the consignee of rubber at Para original style was Martins, Pinto & AIvcs. and their business that 



realizes as promptly as possible on his receipts, even if the pro- ^,f importers The house has alwavs enjoved an extensive credit, 



ducer upriver should be left .n debt to the merchant, still it is ^.^.^.^^ ^^^^^-^^^ p^^;^^,^ ^^ financial crisis. The head is Antonio 



natural that he should look for the best prices possible. And here K„,,ri„„cs Alves, a Portuguese bv birth and Brazilian bv adopti.,n. 



comes in the first element of competition . A, B and C, in New ,j ,,^^ ,,^^,^ ^^^ ^^,,,^ ^,^.,^^ „„^, ^f j,,^, ,^.^,,i„^, nWad,,*- houses 



York, or C, D and E, .n Europe, all want rubber, .uul as they ^^ Para-f. c. consignees for rubber and other produce from up 



bid over one another prices may go up. Or, if the demand from ^,^^ Amazon. Their business is tiow done exclusivelv with the 



manufacturers be less pressmg, their lack of zest in buying may ^^^^ territory, where they now possess large senngaes (rubber 



cause Para prices to sag. estates'), with which communication is maintained bv means of 



But every man. woman, and child in America, or Eur..pe. or „^_,j_. ^^^^ ^^^^^^ j^,^ ^^^,^,^j^ Rodriques Braga will be r)ne of 



elsewhere, who has cash or bank credits, can. every day in the „^^^ directors on the .Xmazon of the new English companv. 



year, buy rubber as freely, in Para or Manaos, as one may obtain ^.,^^ _^^^_^^^.^, _.^^,^,^^^ ..^^.^p^„ ^^^ ^,^.^^ ^^^^^ ^ ^^ ,,^,^j„g ^^.^.^„ 



papers from a New York newsboy. . , , vears past have aggregated the following quantities: 



An element in the case to be considered, however, is that the ^ ., r ^ , , 



, 1,1, • .1 ■ 1 . -.1 r \Q02-Cfi TOi, 062 kilos 1= 7gd,,?.p pouiuls 



maintenance of a capable buyer in the prime markets, with suf- ^^^^^-^ -^ ^^^^^g ^j,^^ f^ ^^g;^^^, pounds] 



ficient capital to give one a standing in the trade, costs money. 1904-05 474,084 kilos [=1.042.085 pounds! 



