June 1, 1913.] 



THE INDIA RUBBER WORLD 



473 



cost from the employers. It is estimated that the initial ex- 

 penditure for bringing 50,000 Chinamen from Canton or Shang- 

 hai to the upper Amazon would not be less than the equivalent 

 of $5,000,000, but this sum would not be an abnormal obligation, 

 in view of the vastly important interests at stake. 



COST OF PRODUCTION. 

 As shown in the May issue, the report of the Commission on 

 the Orient makes the present free on board cost of producing 

 rubber in the Malay Peninsula to be 14J4d. (29 cents) per pound, 

 while the estimate for 1914-1919 is 12d. (24 cents.) In compari- 

 son with these figures may be quoted the following estimate of 

 Brazilian cost f. o. b. 



Pence. Cents. 



Freight to Manaos or Para Yz 1 



Commission charges Vi 1 



Administration 3 6 



Cost (per lb.) of maintenance of collector 



Delivering 1,000 lbs. of rubber 16 32 



Duties 12;^ 25 



Total 32K' 65 



The present f. o. b. cost in the Orient is thus estimated at 29 

 cents with a prospective reduction to 24 cents, while the com- 

 mission expresses the opinion that a similar position can be 

 attained in the Amazon Valley within five years; by improved 

 methods of tapping, largely increasing production without addi- 

 tional labor; by more systematic administration; by opening up 

 the reserves of untouched trees ; by cheapening the price of living ; 

 by diminution or abolition of the export duties, and by the intro- 

 duction of Chinese or European immigration. By such means 

 only is it possible for Brazil to meet successfully the competition 

 of the Orient in the world's markets. In conclusion the report 

 states that there is no doubt such reduced costs can be brought 

 about, if the measures recommended are adopted. 



GENER.'^L RECOMMEXDATIONS. 

 The general recommendations of the commission are summar- 

 ized in twelve brief paragraphs under the caption "Some Sug- 

 gestions for the Improvement of the General Conditions of the 

 Brazihan Rubber Industry." These suggestions are as follows : 



In order to meet successfully the growing competition of the 

 Orient in the rubber markets of the world, certain innovations 

 and reforms are necessary. The objects in view are a reduction 

 in the cost of production, an increase in the annual output, the 

 preservation of the trees from unnecessary injury, the gradual 

 development of a plantation industry, and the general prosperity 

 of the owners of rubber properties and the laborers employed 

 thereon. 



I advance the following suggestions after careful considera- 

 tions as the most practical means of dealing with the existing 

 situation : 



1. The distribution of illustrated literature printed in Portu- 

 guese throughout the rubber districts, explaining the system of 

 tapping with the gouge and the injurious effects of the use of the 

 machadinho. 



2. The establishment of an Agricultural School at some cen- 

 tral point, hereafter to be selected, where practical instruction 

 will be given in methods of tapping, care of trees, system of 

 cultivation, mode of treating latex, and preparation of rubber for 

 shipment. 



3. The erection of adequate machinery at Para and Manaos 

 for washing and preparing scrap rubber previous to shipment. 



4. The appointment of expert rubber planters to make con- 

 stant tours of inspection through the rubber districts in order to 

 advise owners of properties in all matters connected with the 

 cultivation, tapping and preparation of rubber. 



5. To advise the Federal Government and the governments 

 of .\mazonas and Para to grant a reduction of export duty 

 to the extent of 75 per cent, on all shipments of rubber when the 

 work of the extraction of latex has been carried out with ap- 

 proved implements and in the manner generally prevailing in the 

 Orient. This concession to remain in force for not less than 

 seven years. 



6. To advise the governments concerned to enact a law pro- 

 hibiting the use of the machadinho under penalty of fine or other 

 punishment. 



7. To urge the Federal Government to carry out the estab- 

 lishment of central hospitals throughout the rubber districts as 

 provided for in the terms of Law No. 2543 of January, 1912, and 

 the regulations decreed April 17, 1912, and for which funds have 

 been voted. 



8. To take the necessary steps to establish centers of supplies 

 where the employers of labor can purchase at reasonable rates 

 all articles required for the maintenance of workmen in the 

 rubber districts, and in this manner bring about a substantial 

 reduction in the cost of living. 



9. To establish one or more experimental plantations in order 

 to demonstrate economical methods for the production of rubber, 

 cocoa and foodstuffs. 



10. To take measures to encourage immigration from south- 

 ern Europe and to consider carefully the question of the intro- 

 duction of Chinese laborers. 



11. To make arrangements to facilitate at low cost a supply 

 of tapping tools, machinery for preparing rubber and agricul- 

 tural implements. 



12. To introduce the system of planting food crops in the 

 alluvial deposits on the river banks after the annual floods. 



I consider the last suggestion most important. The custom 

 prevalent in Egypt for thousands of years of growing crops at 

 low Nile could be imitated with extraordinary advantage in the 

 Amazon Valley, especially on the upper rivers. The waters fall 

 at the end of April and rise again in October, thus giving five 

 months for the harvesting of maize, beans, rice, millet (dhura) 

 and other foodstuffs. 



Moreover, on the river banks between flood level and low 

 water, no clearing of timber is required. The land practically 

 needs no cultivation beyond dibbling the seed into the rich 

 alluvial mud. and then nothing remains to be done except a little 

 weeding until the harvest is garnered. 



ENCOURAGEMENT OF NEW USES FOR RUBBER. 



A PROPOSAL recently broached in the English financial press 

 suggested that the rubber plantation companies, acting in 

 unison, should set aside 10 per cent, of their crops to be held at 

 the disposal of certain English and American manufacturers, at 

 the fixed price of 2s. 6d. (60 cents) per pound, to be used solely 

 for purposes not hitherto exploited. In commenting upon the 

 subject, Mr. E. L. Killick, the rubber expert of the "Financier," 

 expresses the opinion that the proposal makes a stronger appeal 

 to reason the more deeply it is considered, no single argument 

 of any weight having been brought forward in opposition to it. 



He adds that any method of rendering more certain an adequate 

 future demand should be welcomed and put into practice. Con- 

 sequently the proposal named is regarded as worthy of close at- 

 tention, coming, as it does, from one who has a large stake in 

 the plantation industry and is thus evidently acting in perfect 

 good faith. 



The instability of raw rubber prices has been a most serious 

 handicap to manufacturers, while it is more than probable that 

 if there were any assurance of rubber remaining stationary in 

 price, the large manufacturers would not hesitate to enlarge their 

 works and plants. Mr. Killick expresses the conviction that if 

 a basis of 60 cents were established, American manufacturers 

 alone could take the whole of the world's supply. 



If adopted, this proposal would, it is added, place at the dis- 

 posal of manufacturers this year about 4.000 tons of plantation 

 rubber at 60 cents. As it would be used solely for new pur- 

 poses, there would be no question of unfair competition on the 

 part of the selected manufacturers employing the "bounty rub- 

 ber"; at the same time a step would be made in the direction 

 of keeping consumption in line with supply. 



Should be on every rubber man's desk — Crude Rubber and 

 Compounding Ingredients ; Rubber Country of the Amazon ; 

 Rubber Trade Directory of the World. 



