428 



THE INDIA RUBBER WORLD 



IJUNE 1, 1912. 



a Custom House at Porto Velho on the River Madeira, and 

 will declare that port open to the commerce of friendly 

 nations. 



3. Construction of a railway starting from the port of 

 Belem (Para), and connected with the railway system at 

 Pirapoa, State of Minas Geraes, and at Coroata, in the State 

 of Maranhao ; with the branches necessary to connect the 

 initial or terminal points of navigation of the Rivers 

 Araguaya, Tocantins. Parnahylia and S. Francisco. 



This railway will be constructed under the regulations of 

 the law of December 13, 1903. and the construction awarded 

 by public competition. 



4. The necessary works v\ill be executed for rendering 

 navigable at all seasons of the year for vessels of certain 

 draught; — the River Negro, between Santa Isabel and 

 Cucuhy ; the River Branco, between the mouth and the fort 

 of S. Joachim ; tlie River Purus, from Hyutanahan to Senna 

 Madureira, and the River .Acre, from the mouth to Riosinho 

 das Pedras. 



The government can contract for the execution of the above 

 works by means of public competition or independently of com- 

 petition, with one or more suitable concerns, applying the regu- 

 lations of the decree No. 6,368 of February 14, 1907. 



Such are the plans for improved transportation by rail and 

 river ; materials and machinery for the improvement of navigation 

 being free from import duties under Article 7. 



Similar exemption will be conceded under Article 8, to con- 

 cerns which, in public competition, will bind themselves to estab- 

 lish depots of coal at a point in the Amazon valley previously in- 

 dicated, for the purpose of supplying coal to steamers and 

 launches at prices approved by the Government. 

 E— CEREALS AND PROVISIONS. 



Under Article 9 a comprehensive plan is outlined for increas- 

 ing the available supply of provisions. It includes the leasing of 

 two of the national farms for the cultivation of cereals and for 

 the establishment of packing houses and factories of dairy prod- 

 ucts, mandioca flour, etc. It further provides for the direct col- 

 onization by the government of the national lands forming the 

 S. Marcos farm, with native agriculturists and breeders of horses 

 and cattle. The materials and machinery necessary for the estab- 

 lishment of these farms will be free of import duty. Premiums 

 are offered for the laying out of pastures and farms, as well as 

 the manufacture of packing house and cereal products. 



A special exemption from import duties is made with respect 

 to the material needed for establishing a fish curing and packing 

 industry. 



F— SANITATION. 



The government, under Article 5, is to establish three hospital 

 stations for immigrants at the Island of Flores, at Belem (Para) 

 and Manaos. Local hospitals under skilled medical supervision 

 are to be opened in the midst of the sniall agricultural colonies, 

 for the free treatment of patients, the sale of medicines and the 

 diffusion of information on sanitary and medical questions. 



G— GENERAL PROVISIONS. 



Among the general provisions of the law is one under Article 

 11, for triennial expositions at Rio de Janeiro, for the encourage- 

 ment of the rubber industry. 



The government is empowered under .Article 13 to introduce 

 in the Territory of Acre the same protective measures, which may 

 be adopted in the respective States already named. The adjust- 

 ment of Acre land titles is provided for in Article 10. 



H— EFFECTS OF DROUGHT. 



By a previous decree of December 28, 1911, plans were author- 

 ized for combating the effects of drought, by observations as to 

 rainfall and other measures. 



The carrying out of these measures, it will be noticed, is partly 

 in conjunction with the action of certain States, while a large 

 number of them are directly Federal provisions. 



PARA RUBBER EXPORT DUTIES. 



A N inquiry addressed to the American consul at Para rela- 

 ■^*- tive to the various duties levied on rubber exports elicited 

 the following reply : 



"India Rubber World — Gentlemen : Replying to your request 

 dated April 9, inquiring as to the manner of arriving at the 

 "Pauta" or export tax on rubber in this State. I have to in- 

 form you that this duty is of two kinds. Federal and State, the 

 first duty being payable to the local treasurer of the National 

 customs and the second to the State Treasury, both having 

 offices in this city. 



"Federal Pauta. This applies to all rubber the product of the 

 Acre region and is by law a straight 23 per cent, of the average 

 of the price obtained on sales for each week. In order to ar- 

 rive at this average price, which is the real 'Pauta,' every broker 

 (licensed official) is required to furnish each Saturday to the 

 chief of the federal customs a sworn statement, giving a de- 

 tailed list of all his rubber sales, with prices of each grade speci- 

 fied. From these lists of sales submitted, the average price for 

 each grade is obtained and these average prices will be the 

 'Pauta' or official value, per kilo, for rubber for the coming 

 week. These facts are published in the daily papers each Sun- 

 day and govern for that and the succeeding six days. 



'State Pauta. This duty is collected only upon the rubber, 

 the product of this State. The same mode of procedure prevails 

 as regards the gathering of statistics, except that the local State 

 ofiicials address their inquiries to the receivers and shippers and 

 the average of the prices reported for the different grades, be- 

 comes the State 'Pauta.' 



"The State duty is made up as follows : 



Duty 22.000% 



Entrance fee 1.000% 



Assessment for the purpose of erecting an ex- 

 change, Vi% 375% 



Municipal tax, 2;/'% on the duty, ( 22% ) 550% 



Total ."... 23.925% 



To this 23.925 per cent, must be added a further charge of 2 

 rcis per kilo wharfage. This notice is usually posted and pub- 

 lished each Monday morning and governs for that week. Tlie 

 percentage of Federal tax remains the same, but the other va- 

 ries slightly in different States. 



"Geo. H. Pickerell, American Consul." 



RUBBER PLANTING IN BRAZIL. 



Brazilian public opinion in the rubber states, to judge from 

 the report of the commissioners appointed by the Minister of 

 Agriculture, who have been investigating conditions in the 

 Amazon valley, is in favor of a rational and intelligent course of 

 action with regard to rubber planting. The "Brazilian Review," 

 m commenting upon this report, takes the view that it comes 

 a little late in the day, adding that unless the cost of living is 

 reduced, it is dilTicult to see how Brazil will ever be able to 

 compete on a plantation basis with the East. The journal named 

 has for many years been raising a warning note, which was 

 unheeded, but which is now shown to have been warranted. 



THE GENERAL RUBBER CO. OF BRAZIL. 



The following circular has been sent out by Gordon & Co., of 

 Manaos and Para, to that part of the trade interested in the 

 Brazilian crude rubber market : 



"Manaos, April 1, 1912. — We have the honor to advise you that 

 the General Rubber Company of Brazil, properly authorized by 

 the Decree No. 9296 of January 3, 1912, of the Government of 

 the Republic, to operate in this country, on this date assumed all 

 the responsibility of the assets and liabilities of the commercial 

 firm which in this city and that of Para has operated under the 

 style of Gordon & Qo., continuing the respective businesses with- 

 out interruption. — General Rubber Company of Brazil, W. S. 

 Gordon." 



