September 1, 1912.] 



THE INDIA RUBBER WORLD 



595 



NOTES FROM BRITISH GUIANA. 



By Our Regular Correspondent. 



THE BALATA COMMITTEE'S REPORT— OUTLINE OF THE 

 RECOMMENDATIONS. 



'T'HE report of the Balata Committee, which has now been 

 ■*■ published, is a document of considerable length and of 

 great importance. Its recommendations are numerous, and 

 their adoption would probably prove helpful to the industry; 

 but considerable difference of opinion has been expressed 

 already, and any ordinance that might be framed upon the 

 report is certain to be met with considerable opposition and 

 criticism. The recommendations may be summarized briefly 

 as follows: 



That registration be transferred from the Institute of 

 Mines and Forests to the Department of Lands and Mines; 

 that the Institute of Mines and Forests shall continue the 

 work of contracting, and that legislation shall be passed mak- 

 ing the execution and recording of contracts before an of- 

 ficer of the institute compulsory for validity; that the 

 registration fee shall be two shillings, to be paid in equal 

 proportions by the employer and the laborer; and that the 

 contracting fee shall also be two shillings, to be paid in 

 equal proportions by employer and laborer; the total eflfect 

 of such change being an increase of sixpence, one shilling 

 less for the laborer, and one shilling and sixpence more for 

 the employer; that the Institute of Mines and Forests shall 

 be reorganized, its by-laws and rules being submitted to the 

 Governor and the Court of Policy, its accounts audited an- 

 nually by the auditor-general; no individual to be admitted 

 to membership unless directly connected with one of the 

 forest industries, the Council to satisfy itself as to the eligi- 

 bility of candidates; the Council to consist of a president, 

 vice-president, treasurer and si.x ordinary members, the presi- 

 dent and vice-president not necessarily being members of 

 the Institute; the Governor-in-Council having the power to 

 nominate three members of Council, who need not be mem- 

 bers of the Institute, and who need not be employers, in 

 order to secure independent representations. 



That the settlement of disputes should be facilitated by the 

 submission of grievances to land officers in the districts, 

 such statements to be admissible by law in any proceedings 

 before the commissioner and in courts; the land officers to 

 settle disputes whenever possible, and to visit grants when 

 there are complaints of no balata or insufficient balata, in- 

 sufficient food, over charges, ill treatment, etc.; that Balata 

 Regulations be introduced on the basis of the Mining Reg- 

 ulations; the possession of balata. unless lawful ownership 

 is proved, and illicit dealings in balata, being made punishable. 

 as in the case of gold, diamonds and old brass. 



That the time is inopportune for further increasing the 

 taxation of the industry for general revenue, since it already 

 contributes approximately $100,000 in excess of the total cost 

 of the Lands and Mines Department, but that a tax of $10 

 for every 50 square miles of area held be imposed for de- 

 velopment purposes; that as little interference as possible 

 should be made with the freedom of contract, but that certain 

 conditions should be met. such, for instance, as that there 

 shall be only one general form of contract, containing the 

 conditions of universal application, and the outlines of op- 

 tional stipulations, the price to be paid for balata and the 

 method of payment to be agreed upon, a list of provisions to 

 be included, with the prices, the laborers to be asked to pay 

 no more than the Georgetown price, saving a reasonable 

 allowance for transport, store-keeping expense, depreciation 

 and loss, all profits from dealings in supplies between em- 

 ployers and laborers being discouraged; contracts to state 



whether the work is to include bleeding or prospecting or 

 both; compensation amounting to $20 or $30 to be paid when 

 no wood is found on a prospected grant; contracts to state 

 whether the work is to include the clearing of creeks, cutting 

 of fixed paths or transport work, a fixed rate of pay being 

 mentioned ; that the livrette system shall be adopted ; that 

 advances should be limited to $20 for laborers for work be- 

 low the Falls and $30 above the Falls, and for foremen $35 

 below and $40 above; that $60 be the maximum indebtedness 

 recoverable from a laborer, and that three-fifths of this maxi- 

 mum be recoverable in the following season by a lien to hold 

 good upon any balance due to the laborer from any second 

 employer. 



CRITICISM OF THE REPORT. 

 The proposals of the committee have not escaped criticism. 

 It is felt that the transference of registration to the Lands 

 and Mines Department is a mistake, because it would cripple 

 the Institute financially, and because the Lands and Mines 

 Department would probably not do the work as well. Many 

 gentlemen, interested in the industry, have taken this view. 

 The case for the Institute has been most powerfully stated by 

 its counsel, Mr. W. Maynard Payne, Licencees do not regard 

 with favor either, the suggestion that a development tax 

 should be imposed. They point out that a similar tax was 

 put on the gold industry, and that the monej* went into the 

 general revenue, chiefly to pay officials' pensions with. It is 

 also pointed out that the industry cannot bear further 

 burdens. It is suggested also that it would not find favor 

 unless the money collected from each company was spent 

 on that company's property. This, however, would appear 

 to be an argument not entitled to much consideration. 

 Similarly, the plea that the industry is already overburdened, 

 is to be met with the reply that inasmuch as profits are small 

 owing to the high costs of production, investment in direc- 

 tions calculated to reduce those costs, such as this proposed 

 tax amounts to, would be wise. The fear that the money 

 would go to swell the" general revenue is a reasonable one, 

 and the contingency would undoubtedly have to be provided 

 against. I am inclined to doubt if the proposals for dealing 

 with the absconding evil will fully meet the case. The re- 

 port is very ample and informing, and may render the in- 

 dustry some assistance, but whether it will solve all its prob- 

 lems is open to considerable doubt. 



CUTTING DOWN OF B.\I.AT.\ TREES— ALLURING FIGURES. 



The theory that the cutting down of balata trees will prove 

 the salvation of the balata industry has cropped up again; 

 Mr. Henry Daley, attorney of the Essequibo Rubber and 

 Tobacco Estates, against which concern a compulsory wind- 

 ing-up order has been made, having raised the question. It 

 may prove the salvation of some companies which are near 

 bankruptcy, but it is questionable whether it will save the 

 industry. Mr. Daley gives us some glowing figures. He 

 suggests, that as the cost of collection will be one-third of 

 what it is now, and as the output will be three times as great, 

 the balata licencees will be willing to pay a royalty of six 

 cents per pound of balata, and that 5,000 men would be 

 provided with work for 25 j'ears, from which the government 

 would draw in royalties $100,000 per annum. He suggests 

 that this would provide the guarantee of interest on any 

 railway scheme that might be put forward, and that as the 

 future for balata is anything but bright, owing to the fact that 

 low-grade rubber on vulcanization makes the best belting, 

 permission should at once be given. Mr. Daley's figures are 

 purely approximate and have already been questioned. The 

 proposal is unlikely to secure a large measure of public sup- 

 port and the Administration will scarcely give it effect. 



