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THE INDIA RUBBER WORLD 



[September 1, 1913. 



PLANTATION RUBBER AND DIRECT PURCHASES. 



REDUCED BRAZILIAN EXPORT AND IMPORT 

 DUTIES. 



TWO comnuiiiications in the "Tropical .Agriculturist" deal 

 with the questions of the intrinsic qualities of plantation 

 rubber and with the manner in which it reaches the American 

 consumer. 



In the first of these, Mr. .A. D. Thornton, managing director 

 of the Canadian Consolidated Rubber Co., relates how his 

 first experience in 1905 led to his finding out how to use planta- 

 tion rubber, in which he is a great believer, being convinced that 

 within a few years wild rubber will prove a very poor second. 



In the meantime, he remarks, both planter and consumer 

 have much to study, particularly as to uniformity. A five- 

 ton lot he had lately rece.i-ed from London contamed eight 

 very distinct grades, while with several parcels bought direct 

 from Colombo he had no such trouble. He is aiming to find 

 some means of being able to tell what he is buying when 

 oflered a parcel by cable. 



In the opinion of a Xcw York authority, who does not 

 wish his name mentioned, a margin of about 5 per cent, be- 

 tween plantation and line Para is not sufficient, but with a 

 uniform difference of, say, 15 per cent., a greater amount of 

 plantation rubber would be used. He likewise urges the need 

 of unifomiit}' in quality, which he thinks will probably be 

 attained with the increased production anticipated. 



Contrasting the advantages of dire;t purchases as com- 

 pare'd with operations via London, he points out that while 

 at that point lieavj- commissions are paid, inasmuch as rubber 

 has to be warehoused, sampled and repacked, numerous 

 charges of this kind are 'lOt incurred at New York. The only 

 expenses on direct shipments would be freight, insurance, 

 selling commission of 1 per cent, and a small charge for 

 weighing and custom house entry. On arrival the rubber 

 would be delivered ex dock, with no more charges attached. 



It is added that .America uses today the largest percentage 

 of the output of the Middle East, and should not be required 

 to purchase through London. 



WHY PLANTATION RtJBBER IS CHEAPER THAN BRAZILIAN. 



In replying to a shareholder, at the recent meeting of Perak 

 Rubber Plantations, Ltd., the chairman, Mr. Keith Arbuthnot, 

 said that the reason why plantation rubber was selling below 

 Brazilian rubber must be clear to everybody; that the planta- 

 tion industry had a large crop coming in from day to day, which 

 was put up at aiivtion and sold without reserve, whereas the 

 Brazilian crop was practically all controlled by one hand. Efltorts 

 were being made to regulate and improve the selling of the 

 crops from the East. At present there were very many sellers 

 and only about six buyers, but they would very likely be able to 

 reverse that order of things. 



HONDURAS RTJBBER. 



A Honduras report speaks of an offer made to the government 

 by Dr. Fausto Uavila, of Honduras. He has asked the sole right 

 during fifty years of gathering rubber, obtained from the Castil- 

 loa. Sif>lionia Elastica, Hcvca Brasiliensis, Manihot Glasioi-ii 

 and other varieties which are found in the provinces of Colon, 

 Olancho and Yoro. He likewise asks for permission to gather 

 rubber upon government land. An export tax of 10 per cent, on 

 the value of rubber shipped would revert to the government. 



DEPRECIATION OF PLANTING MACHINERY. 



.At the meeting of the Merlimau Rubber Estates, the chairman 

 reported that while the sum allowed for depreciation of ma- 

 chinery represented for last year 254d. per pound, the anticipated 

 increase of production would probably reduce that charge for this 

 year to the equivalent of Id. per pound. 



BY a Brazilian Presidential Ordinance of June 2, the Minister 

 of Agriculture was authorized to make an agreement with 

 the State of Para for the exemption of cultivated rubber from 

 export tax during twenty-five years, and the reduction of the 

 export duty levied on wild rubber in that state. An agreement 

 made the same day provided for the reduction of the duty by 

 2 i)er cent, on January 1, 1914, and a successive annual diminu- 

 tion of like extent during tive years. In this way the present 

 rate of 20 per cent, would be cut in two within the time named. 

 The Brazilian government has, morever, expressed its willing- 

 ness to recommend to the Federal Congress, the reduction by 

 at least 20 per cent, of the duties on necessaries imported 

 by the rubber producing territories. These include : condensed 

 milk, kerosene, cordage, fishing lines, fire-arms for hunting, 

 cartridges and ammunition, clothing, provisions and medicines. 



AFTER THAT THIRTY-MILLION-DOLLAR TRADE 

 IN SOUTH AMERICA. 



"T^HE .April issue of The Indi.-\ Rubber World contained a full 

 ■'■ and detailed account of the rubber manufacturing plant 

 which the Goodyear Tire and Rubber Co. of Akron, Ohio — through 

 a subsidiary company known as the Goodyear Tire and Rubber 

 Co., of South -America — contemplates building in Rio Janeiro, 

 Mr. J. C. MacFadyean, the vice-president and general manager 

 of this South .American company, who has been in this country 

 for the last few months, sailed on August 9 by way of Europe 

 for Brazil, and, being interviewed just before sailing, gave some 

 interesting additional information regarding the company's ex- 

 pectations in that new field. 



He estimates that South America consumes $30,0(X),000 worth 

 of manufactured rubber goods in a year, one-third of this 

 amount being consumed in Brazil. He states that Rio Janeiro 

 alone has 4,800 automobiles and uses up $3,000,000 worth of tires 

 annually. .As there is at present no rubber factory anywhere in 

 South America, his company hopes to get this entire rubber 

 business, all of which practically now goes to European manu- 

 facturers. He mentioned two tremendous advantages Which his 

 company will enjoy, viz., its immunity from the 20 per cent, 

 export ta.x on crude rubber, and from the SO per cent, import 

 tax levied on the manufactured article. The cost of the Good- 

 year plant in Rio Janeiro is placed at $1,300,000, and Mr. Mac- 

 Fadyean estimates that the company will start in about a year's 

 time, with 600 workmen, none of whom will be North Americans 

 except the superintendents and heads of departments. 



Mr. MacFadyean thinks there is a great field for Americans 

 on the Southern continent. "American manufacturers," he says, 

 "make a great mistake by not going down there to investigate. 

 In my opinion, and I have traveled over most of the known 

 world, there is no place that offers so many opportunities as 

 South America, and opportunities of so many sorts. England 

 and Germany now control those markets, and it is just because 

 .American manufacturers have never gone after them in the 

 right way. We are trying to get .American manufacturers to go 

 down there. Land is to be had almost anywhere — and you can 

 get better land down there for SO cents an acre than you can buy 

 in many Western States at much higher figures, and there are 

 thousands of acres of it. 



"It is a mistake to contend that Rio is an expensive place to 

 live. It doesn't touch New York. You can get a suite of rooms 

 and three square meals there or in Buenos .Aires for what you 

 might pay simply for the rent of a suite here. 



"It is getting time for American manufacturers and e.xporters 

 to wake up to what is going on down there. If they don't go 

 after that trade energetically soon, there won't be any chance." 



