274 



THE INDIA RUBBER WORLD 



[February 1, 1913. 



delivered, but will shortly be available. I fear that the estimated 

 cost of construction is very high and that there is no doubt 

 that this route is not suitable for adoption as a section of the 

 main line to the interior of Brazil." His Excellency has pleaded 

 for an extension of the Coast Railway as far as the Dutch 

 frontier, but he is shortly to pay a visit to the Rupununi savan- 

 nahs, which possess possibilities for rubber cultivation, and it is 

 not to be understood that he has arrived at any dogmatic opinion. 

 It is significant that in a memorandum which he submitted to 

 the Legislature on the coast-railway extension he advocated the 

 metre gauge for this and all future railways that may be built in 

 this colony, because the metre gauge is in use in Brazil. There 

 is presumptive evidence that His Excellency has a Brazilian 

 frontier railway in view. It is by no means beyond the bounds 

 of possibility that such a railway should take the form of an ex- 

 tension of the existing coast railway. 



PROPOSED REMOVAL OF EMB.\RGO ON VENEZUELAN BALATA. 

 In the same speech His Excellency said that the "question of 

 withdrawing the prohibition of importation of balata from Vene- 

 zuela has long been under discussion. It is proposed to allow 

 such importation, but subject to an import or transit-duty equiva- 

 lent to the royalty on indigenous balata." His Excellency has 

 thus speedily reversed the policy of his predecessor, who adopted 

 a desperate remedy, which has done much harm to the Venezuelan 

 balata industry and to the British Guiana township of Mora- 

 whanna. The removal of the embargo will be advantageous to 

 the Georgetown merchants, whose representative, the Chamber 

 of Commerce, has long advocated the admission of Venezuelan 

 balata. 



THE OUTLOOK FOR THE BALATA INDUSTRY; BETTER PROS- 

 PECTS FOR 1913. 



At the present time there is severe industrial depression in 

 the colony as a result of the long drought, and nowhere is this 

 more apparent than in the balata industry. The sugar and rice 

 crops are going to be short, and the figures relating to the balata 

 output I have already quoted. There is likely to be a serious 

 shrinkage in the spending capacity of the large amount of labor 

 employed in the industry, which will be rendered worse by 

 the unfortunate failure of the Amsterdam Balata Co. There 

 can be no doubt that the balata industry is passing through a 

 critical period. Three companies have dropped out, and those 

 who have survived previous storms will have done well to have 

 escaped heavy losses on the season that is now closing. The 

 calamity of a long drought, following upon the labor difficulties 

 of 1911, has been a crushing blow. Nevertheless, the position 

 for the companies remaining is by no means hopeless, provid- 

 ing prudent and careful action is taken. The outlook at any 

 rate is still being regarded optimistically. Mr. James Winter 

 says that the prospections for next year have been very success- 

 ful, and there is promise of a good season next year, providing 

 weather conditions are favorable. The failure of some com- 

 panies he attributes to bad management and unnecessary ex- 

 pense. To this, of course, has been added the important con- 

 sideration that most of the grants within easy distance of George- 

 town have been worked out, and the cost of despatching expedi- 

 tions to the upper reaches of the river has proportionately risen. 



The real remedy, of course, is an improvement in transit 

 facilities, but even under the most favorable circumstances, that 

 cannot be accomplished for years. Provided, however, that the 

 labor difficulties are adjusted and the prospections are more 

 honest than has always been the case in the past, 1913 should 

 offer concessionaires some opportunity' of retrieving the losses 

 of the past two seasons. Employers and laborers are settling 

 down, and the evil that arose from the necessity of sending all 

 sorts of incompetent and inexperienced men to the balata con- 

 cessions, after the first rush for labor, should show some signs 

 of abatement. Managers have acquired more experience, and 

 the men themselves are better equipped for performing their 



duties. The failure of some companies has shaken confidence 

 to some extent, but prudent management next year should 

 relieve the situation. 



The failure that has marred the operations of the past two 

 seasons has not entirely been the fault of the industry, if at all. 

 Adverse circumstances have been supplemented by imprudent 

 flotations. A gentleman well informed as to the circumstances 

 of the industry has said: "I attribute the failure of these com- 

 panies chiefly to their being over-capitalized, and to the fact that 

 they paid very much more for their grants than they were 

 actually worth. In a great many cases they acquired lands, which, 

 after being prospected at great expense, proved valueless, and the 

 consequence was the available working capital was exhausted. 

 The Amsterdam Balata Co. suffered a great deal through the 

 grants being such a long distance from Georgetown, and the 

 journey the men had to take to get to the grants took roughly 

 three months, while in addition they had immense difliculties to 

 overcome. In their case their working capital has also been 

 exhausted. The grants may or may not be valuable, but at the 

 present time there is no information on the subject. This com- 

 pany had some grants within easy reach of the city, which, after 

 prospection, proved valueless, after the spending of a great deal 

 of money for that purpose. 



If the balata business was worked more carefully, and a 

 limited number of men sent up to prove grants that are known 

 to be valuable, there is yet a great deal of money to be made. 

 The balata industry has been an important factor in the colony's 

 welfare for over 20 years and there are still grants at work 

 now, which were working 20 years ago. This proves that if the 

 trees are bled properly, the balata industry will continue for 

 years. In a large number of cases the trees have been killed by 

 bad bleeding ; of course, where that takes place, the balata in- 

 dustry must die out. It is, therefore, much to the interest of 

 the balata licensees to conserve the forests and it is also the 

 duty of the government to do what they can, not only in that 

 direction but also to increase them. That seems to be a point 

 the government has missed up to the present. No doubt this 

 year's losses are due to the drought, but the effect will be felt a 

 great deal more in the first half of 1913 than it has up to the 

 present. At least $120,000 ought to go into circulation in Water 

 Street at the end of 1912, but will not, owing to the shortage in 

 balata. The advances to balata bleeders in 1913 will necessarily 

 be very much less than they were in 1912. Economy will have 

 to be practised." 



KUBBER IN TRINIDAD AND TOBAGO. 



In an interesting special report, Mr. A. E. Collens. F. C. S., 

 assistant analyst. Government laboratory, has dealt with the sub- 

 ject of rubber planting in Trinidad and Tobago. He traces the 

 progress made since the introduction in 1876 of Hcvea. At pres- 

 ent about 150,000 Hevea are under cultivation, mostly in Trinidad, 

 only a small number having been planted in Tobago. The cultiva- 

 tion of Caslillna has been taken up in various parts of Trinidad, 

 where there are 500,000 trees; while in Tobago 120,000 have 

 been planted. Of Funlumino, about 25.000 to 30,000 trees are be- 

 ing cultivated in the colony. Landolphia and Ficus have only 

 been planted to a limited extent. 



Many interesting particulars are given of official and other 

 results as to tapping and yields. 



BRITISH EXPERT'S VIEW OF BRAZILIAN SITUATION. 



According to a recent cable from London, an expert has lately 

 visited the East to study the question of rubber cultivation, on 

 behalf of an important financial group. He also visited Para 

 and his report states that it is absolutely imperative for the 

 Brazilian rubber planters to make three reforms. One of these 

 is the adoption of the mode of incision employed in the East, 

 while the others are the importation of Chinese labor and the 

 reduction of the export duties on rubber. 



