January 1, 1914.J 



THE INDIA RUBBER WORLD 



169 



The Rubber Situation in Brazil. 



The follozciiig account of conditions in tlic Aituizon country Zi'os 



Madeira-Mam 



DL'RIXG the past year the riihhcr market of Brazil, 

 Bolivia and Peru has shown a marked decrease in 

 prices, which has caused great consternation among 

 the riibher exporters of these countries. 



In December, 1912, Para rubber sold for $1.12 per pound, 

 while Caucho sold for 82 cents per pound. During 1913 prices 

 have dropped and continued to go down until Octot)er of 

 that year, when Fine Para sold for '/'i cents per pound and 

 Caucho for considerably less. This is the lowest rubber market 

 since 1908. 



Practically all the business of Xorthern Brazil is governed 



Smoking L.\te.\ i.\- iHt .\mazu.\ Cuuntrv. 



by the rubber market, and as there is such a low market at 

 the present time business is more or less at a standstill. 

 Shortly after the final drop in rubber prices, many of the 

 large business houses were closed, but reopened later, al- 

 tho trading was not very brisk. Many of the business 

 men state that they have no recollection of a time when 

 money was so scarce. This low market has also affected the 

 government in these parts, as the main source of revenue is 

 derived from rubber. It is stated that in some cases govern- 

 ment employes have not received their salaries for ten months. 

 The Madeira-Mamore Railway Co., which operates through 

 the Madeira rubber district, has, since active operation began 

 in July, 1912, been running three trains per week, but be- 

 ginning November 1 only one train was to be run. This is 



icritlcn by an Anurican just returned from a year's stay in the 

 ore district. 



due to the fact that little or no rubber is being shipped by 

 exporters throughout this entire belt. 



Suarez, Hermanos & Co., the rubber barons of Bolivia, 

 as well as Ahlers & Co., and Ascnsi & Co., of the Madeira 

 district, arc holding back their shipments, as it is stated that 

 they cannot accept such prices as are being oflfered at this 

 time. It may also be stated that the outlook for the imme- 

 diate future is not very promising. 



The writer talked with several rubber men whose lands 

 lie between Porto Velho and Manaos, and they are all more 

 nr less pessimistic. He also talked with Senhor Hoya, a 

 large exporter on the Rio Javary, Peru, and he stated that 

 there is plenty of rubber to be had in his district, but that 

 it will not be put on the market while present conditions 

 e.xist. 



It is true that some rubber is being shipped to New York 

 and Europe, but in small quantities and only on special con- 

 tract. The expense incurred by these rubber exporters in 

 tapping their trees, collecting and smoking the rubber, as well 

 as the cost of handling and freight charges, which are e.x- 

 orbitant, in getting the rubber to the coast for foreign 

 shipment, to say nothing of the export duties, make it prac- 

 tically an impossibility for them to sell in a low market. 



Take the case of Suarez, Hermanos & Co. : As already 

 ';tated their rubber lands are located in Bolivia. When the 

 rubber is collected and prepared for export same has to be 

 brought down from the interior to Riberalta in batclaos or 

 big rubber boats; thence to Guajara Merim, Brazil, by larger 

 boats. From the latter place it is conveyed to Porto Velho 

 by rail, where it is transshipped to Manaos and Para by small 

 river steamers. Moreover, the company is forced to pay an 

 export duty in Bolivia, as well as an import and export duty 

 in Brazil. 



I"ew rubber manufacturers know or realize to what extent 

 the crude product has to be handled before it is loaded on 

 the ocean-going steamers. 



The rubber lands of Asensi & Co. are located at Calama 

 on the Rio Madeira. In order that this company may get its 

 rubber to the coast for shipment, it is necessary for the 

 seringueiros to carry it on their heads from the interior to a 

 large warehouse located on the river's bank, where it remains 

 until one of the small freight steamers plying on this river 

 rails for freight. These same methods of transporting the 

 rubber are used by practically all of the exporters in Brazil. 



The various rubber exporters have different scales of 

 wages. The seringueiros employed by the Guapore and Julio 

 Mueller Rubber Cos. receive from 3$000 (0.97) to 7$000 (2.24) 

 per day, while Suarez, Hermanos & Co., as well as many other 

 rubber companies, pay their rubber collectors on a percentage 

 basis, so much per hundred kilos. The latter can earn on an 

 average of $500 to $750 per season, but in most cases it is 

 less. In any case, the wages are low, when the life these men 

 live and the hardships and dangers endured are taken into 

 consideration. In many cases the seringueiro is always in- 

 debted to his employer, who provides him with such food and 

 clothing as he may require for himself and family. 



The seringueiro enters into the wild rubber country when 

 the tapping season begins, about October or November, and 

 here he remains until the season is over, approximately seven 

 months later. During this time he, with a few companions, 

 is isolated from the outside world. 



In June, 1913. Mr. Akers, together with a rubber commis- 

 sion, composed mostly of Englishmen with rubber interest 



