350 



THE INDIA RUBBER WORLD 



[April 1, 1913. 



industry. As the company owns lands of the area of about 

 800.000 square feet, it will have ample room for further ex- 

 tension. 



It is contemplated to distribute the prospective large product 

 of the company, not only in Brazil but throughout South .America 

 and the East. The last named form of distribution is evidently 

 based on using the Panama Canal. In view of expected require- 

 ments the Goodyear Tire & Rubber Co. of South America, pro- 

 poses to employ a capital of $3,000,000 in the enterprise, which 

 capital would be increased as necessary. The supply of water 

 for drinkiuK purposes, as well as for industrial uses, is said to 

 be abundant. 



Impcjrtance is attached to the contemplated attraction to Rio 

 de Janeiro of an influential group of experts in all Iiranchcs of 

 rubber manufacture. Among the articles it is proposed to manu- 

 facture besides those named in the estimate are : Combinations 

 of rubber and asbestos ; waterproof fabrics, and industrial 

 preparations of rubber. 



In the application, stress is laid uimn the necessity of main- 

 taining the principles of fiscal protection, without which no 

 premiums and no amount of government support would be 

 efficacious. Such are in brief the main features of the proposal 

 of the Goodyear company for the erection of a rubber goods 

 factory at Rio, with which it is hoped to gain the premium equal 

 to about $166,000 as provided by the law. 



ESTIMATE OF THE COST OF A RUBBER MANUF.'KCTURING PLANT AT 

 ^ RIO, AS SHOWN IN THE PROPOSAL OF THE GO0DVE.\R TIRE 



', AND RUBBER CO. OF SOUTH AMERICA. 



Brazilian. American. 



Acquisition of ground 400:000$000 $133,300 



Construction of ten buildings cover- 

 ing an area of 14,253 square meters 



(152,507 sq. ft.) in three iloors.... 2,069 ;020$000 689,673 



Workingmen's village 550 :000$000 183,300 



Electric plant for 750 h. p 180 :000$000 60,000 



Machinery and installation for wash- 

 ing and refining 60:000$000 20,000 



Section of maceration and calenders : 



Machinery and installation 180:000$000 60,000 



Section of pneumatic tires, etc. : 



Machinery and installation 90 :000$000 30,000 



Vulcanizing section : 



Machinery and installation 155 ;000$000 51,666 



Section of electric wires and cables: 



Machinery and installation 360 :000$000 120,000 



Section of hose and rubber tubing : 



Machinery and installation 90 :000$000 30,000 



Section of shoes and accessories: 



Machinery and installation 80 :000$000 26,666 



Section for belting, etc. : 



Machinery and- installation 70 :000$000 23,333 



Section for toys and stationery articles : 



Machinerv and installation 40 :000$000 13,333 



Sections for air goods, etc 20 :000$000 6,666 



Section for surgical and pharmaceu- 

 tical goods : 



Machinery and installation 25 :000$000 8,333 



Small sections : 



Machinerv and installation 35 :000$000 11,666 



Repair shops 60 :000$000 20,000 



Electric lighting, water and fire 



service 250 :000$000 83,333 



Tramways, railways and switches... 80:000$000 26,666 



4,794 :020$000 $1,597,935 

 Contingencies 10 per cent 479 :402$000 159,869 



Totals 5,273 :422$000 $1,757,804 



One interesting phase of the particular paragraph of the 

 Brazilian act which has to do with the encouragement of the 

 building of a rubber factory is the list of manufacturing in- 

 gredients that are to be admitted free. This list was made up 

 from "Crude Rubber and Compounding Ingredients'' written by 

 the editor of The India Rubber World; but unfortunately the 



list was compiled by some one evidently not familiar with 

 rubber compounding, and consequently contains some irrelevant 

 items and omits some of material importance. For instance, 

 whiting and litharge are omitted — the two most important com- 

 pounding ingredients, while certain other articles are mentioned 

 ivliich are not to be found in any market. Kamptulicon ap- 

 pears on the list, which in reality is nothing more or less than 

 linoleum. Okonite is also on the list, which would appear to 

 enable the Okonite Co. to send in their insulated wire free. 



The advantage of a rubber goods factory in Brazil, over all 

 competitors outside, in securing the South .American trade, is 

 very obvious, as, in the first place, crude rubber exported from 

 Brazil pays a duty of 20 per cent., and in the second place, manu- 

 factured rubber goods imported into Brazil, and the neighboring 

 countries, pay exceptionally heavy duties, and it is reported that 

 a law will be passed by the Brazilian Legislature to advance the 

 import duties where necessary so as to give the Goodyear 

 company a practical monopoly. And it is said to be the inten- 

 tion of the Goodyear company to seek not only Brazilian trade, 

 but the entire trade of South .America, including .Argentine. 

 Paraguay, Uruguay, Chile, Peru and the other republics. 



The present consumption of rubber goods in South America 

 is not so very large, although it afifords a very substantial market 

 on which to begin operations ; but the possible South American 

 market which caii be secured by an enterprising manufacturer 

 making just the goods that the market demands, is an extensive 

 one. The total imports of manufactured rubber goods into 

 South America for the year 1912 from the United States 

 amounted to $600,000, divided about as follows : Packing and 

 belting, $188,000; footwear, $81,000; auto tires, $46,000; other 

 tires, $50,000; all other rubber goods, $235,000. 



The last complete statistics of the imports of manufactured 

 rubber goods into South American republics from all sources 

 cover the year 1909, when the imports from America amounted 

 to only one-tenth of the entire rubber goods imports. Pre- 

 sumably about the same relation exists today, which would 

 indicate that the entire consumption in South America of im- 

 ported rubber goods is something like $16,000,000 a year. It 

 would appear on the surface as if the new factory at Rio de 

 Janeiro ought to get a very large part of this trade, and under 

 the advantages of crude rubber and other ingredients free from 

 duty as against competitors, all of whom have to pay Brazil's 

 export duty on the crude rubber, and high import duties on 

 the manufactured article, it ought to be able to market its 

 products at a price that would greatly and rapidly increase the 

 demand for its goods. 



The proposal of the Goodyear company includes an agreement 

 to commence manufacturing within the term of 12 months from 

 the signing of contract, as well as a clause for reversion to the 

 government in 90 years. 



Late advices, received just as this publication is going to press, 

 state that the Brazilian Government, in addition to granting the 

 Goodyear Tire and Rubber Co. of South America an award for 

 a rubber factory at Rio, has given an award for a rubber factory 

 at Pernambuco to the Companhia Norte Brazil ; which would 

 seem to indicate that while the Rio factory will enjoy advantages 

 as against outside competitors that will be practically prohibitive, 

 it is not to have an absolute monopoly of rubber manufacture in 

 South .America. Possibly there is to be a division of the field, 

 each factory confining itself to certain lines of manufacture. 

 Advices received up to the present time give no information 

 regarding this point. 



INVESTIGATION INTO TAPPING METHODS. 



The Agricultural Department of the Federated Malay States 

 is carrying out some interesting experiments in regard to tap- 

 ping methods, with a view to ascertaining the eflfect upon yield 

 of the number of cuts per tree. Figures will be shortly available. 



