BRAZILIAN WOODS 627 



This cost of F. 542 per. 100 kilograms (SVaod. per 220 lb.) is for 

 pulp delivered at the port of exportation. To this must be 

 added : 



F.c. 



Transhipment aboard steamer, per 100 kilos 20 



Export duties, 10 per cent, ad valorem 55 



Freight from Brazil to an EngUsh port, 20s. per ton, or for 100 

 kilos 2.50 



Cost of 100 kilos, pulp f.o.b. at an English port F. 8. 67 



The present selling price of pulp per 100 kilos being 13 . 00 



There is a net profit of F. 4 . 33 



If this calculation be correct, the annual profit should be 260,000f. 

 {i. e., 3s. 5d. per 220 pounds, or £10,292 per annum). 



Capital Necessary 



The capital necessary for this enterprise is made up as follows : 



Machinery, 1,500 h.p. (for wood fuel) F. 150,000 



Apparatus: rasping machines and accessories 200,000 



River steamer, 400 tons capacity 125,000 



Barges 200,000 



Transport and setting up 50,000 



Sundries and unforseen expenses (the land is given free) 75,000 



F. 800,000 

 Floating capital 400,000 



Total capital F. 1,200,000 



The profit would thus be about 21 per cent on the total capital. 



It will be remembered that in the foregoing calculations it is as 

 sumed that the wood is supplied by an exploiter at the price of F. 3.50 

 per cubic meter delivered at a certain distance from the mills, and that 

 the pulp manufacturers have only to load it and transport it by a 

 Decauville light railway to the factory. If the forest were to be 

 exploited by the manufacturers themselves, the business would be rather 

 more complicated ; it would, of course, be necessary to sink more capital 

 in extraction material, "penetration" railways, labor, and so on, but this 

 would be largely compensated by the proceeds of the construction and 

 cabinet woods found. 



