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THE INDIA RUBBER WORLD 



[April i, 1902. 



RUBBER NEWS AND VIEWS FROM MANAOS. 



''T^O THE Editor of The India Rubber World: The 

 I law of October 14, 1901, passed by the congress of 

 the state of Amazonas, provided that all Rubber and 

 Caucho gathered in the state of Amazonas should be 

 subject to a 20 per cent, ad valorevt export tax, without dis- 

 tinction of destination, paying the same amount in all cases, 

 whether exported to other Brazilian ports or directly to New 

 York or Europe. The reasons which induced the government 

 to take this step were manifold. 



The neighboring state of Pari let Rubber leave its ports on 

 payment of a 12 per cent, ad valorem duty, while here in Man- 

 dos one had to pay 22 per cent., in addition to the local or 

 municipal taxes (3 per cent, ad valorem). As a natural conse- 

 quence the greater part of the Rubber was shipped via Pari, as 

 although one had to pay 5 per cent, to the state of Amazonas, 

 3 per cent, to the municipality and 12 per cent, to the state of 

 Pard, it was more convenient to sell it there on account of 

 cheaper freights and the greater number of buyers in that city. 

 Besides this, there has been for the last three years or so a 

 growing feeling of rivalry between the two states, beginning 

 with the governors and extending throughout the whole popu- 

 lation. 



Then, in May, 1901, the state of Pard imposed a tax of 3 

 milreis the alquier on farinha de mandioca (mandioca flour) 

 exported from that state, which considerably irritated the 

 traders of Amazonas, as mandioca flour occupies a position 

 analogous to that of wheat flour in the United States of North 

 America, and the consequent rise in price of this article ren- 

 dered it necessary to cease gathering Rubber in some of the 

 poorer districts, such as the lower Japura, where only from i 

 to 3 kilograms per diem can be extracted from an estrada of 

 100 trees. 



It was also necessary to adopt some financial measure which 

 would relieve the strain on the treasury, caused by the some- 

 what reckless expenditure of the previous administration, and 

 as the amount of Rubber shipped via Pard amounted to nearly 

 7000 tons per annum, it was clear that by making this rubber 

 pay 20 per cent, instead of 5, there would result a profit of 

 never less than 4000 contos of reis, or about $1,000,000 a year. 



There was introduced in the congress at Mandos, therefore, 

 on July 29, 1901, by Deputy Bittencourt, the draft of a law of 

 which a translation follows : 



The Congress of the representatives of the state of Amazonas re- 

 solve : 



Art. I. — On and after the date of the promulgation of this law, the 

 export duty on the products of this State shall be payable ad 

 valorem and in accordance with the following table : 



Rubber of any quality 20 per cent. 



Nuts 10 per cent. 



Cacao 3 per cent. 



Guarana 2 per cent. 



All other products lo per cent. 



Art. 2. — The state cannot and will not officially recognize any but 



two qualities of Rubber — fine and coarse (sernaniliy). 

 Art. j>. — Of the duty on Rubber 33 per cent, shall be paid in Rubber, 



and should the treasury officials see fit, the whole tax may be paid 



in this manner. 

 To calculate the price of Rubber for the purpose of this act, the 



official panta organized by the chamber of commerce shall be 



used. 



Art. 4. — The Rubber received in accord with the provisions of Article 

 3, shall be disposed of as the government may see fit. 



Art. J. — The governor shall have power to nominate and create such 

 persons and offices as be necessary for the carrying out of the pro- 

 visions of this law. 



Art, 6. — All dispositions to the contrary are repealed. 



I RANCISCO BITTENCOURT. 

 A. PERREIRA. 

 DOMINGOS ANDRADE. 



On August 16 Deputy Perreira proposed that Caucho 

 should be officially recognized as a class of Rubber, which, after 

 some discussion, was passed. Several amendments of Article 

 3 were also proposed, but none was passed, and the law was 

 finally signed on October 14 by the governor, Colonel Sylvenio 

 Nery. 



Unfortunately, owing to the formation of a ring among the 

 Rubber buyers in Mandos, the price of Rubber remained very 

 low, about 40 cents per pound, thus failmg to give the financial 

 results which the governor had expected. In November, Senhor 

 Contienos, owner of several Rubber stations on the Jurua, peti- 

 tioned the governor for permission to sell his Rubber in Pard, as 

 there was a considerable difference in the prices ruling in the 

 two cities, which, after mature consideration, was granted. 

 Since then, one or two other firms have done the same thing, 

 owing to the interminable interruptions of the cable between 

 Para and Mandos, which rarely works two weeks in succession. 

 These incidents revived the hope, never dead, of the Para peo- 

 ple, that the government of Amazonas would repeal the law, 

 which the government of this state has absolutely no intention 

 whatever of doing. 



There can be no doubt whatever that this law has produced 

 the most beneficent results for the state of Amazonas, and the 

 governor may point to it with pride, as the making of Manaos 

 as a commercial force. The effects on Para have been far 

 greater than the merchants there are prepared to allow. The 

 leading rubber firms there who had not already established 

 branches in Manaos (Denis Crouan, Neale & Staats, Mells & 

 Cia., etc.) have done so, and it appears to be merely a question 

 of time when they will remove to this city altogether. Prob- 

 ably they only retain their head offices in Para, as it is, because 

 they still hug the fond delusion that the law will be repealed. 



As to the assertions frequently made that Manaos cannot 

 pack her own Rubber, it merely serves to show how deeply the 

 law has wounded the commerce of the neighboiing state. Of 

 course the state of Pard still produces a good deal of Rubber, 

 but nothing like the amount produced in Amazonas, and with 

 this the city can doubtless get along very well. Finally, we in 

 Mandos are, and have every reason to be, perfectly satisfied 

 with the law, which has increased the export of Rubber from 

 this port some 8000 tons already, and will doubtless still 

 further increase our trade. 



As to depression of business: It is true that in consequence 

 of the rise in the exchange value of the milreis, and conse- 

 quent depression in the price of Rubber, added to the enor- 

 mous amount of credit business carried on in the country, a 

 good many firms have become bankrupt, and many more are 

 tottering. The failure of Marques Braga & Co., of Pard, who 

 did a big banking business on the upper Amazon, also de- 

 pressed still further the conditions of business. The law of 

 October 16, 1901, promulgated at Mandos, did something to 



