LOCAL CHARACTERISTICS 21 



former Legislature appealed to the Supreme Court at 

 Rio de Janeiro, and obtained a decision declaring the 

 new elections to be invalid. The Governor accepted 

 the situation, and stated that the former Chambers 

 could meet without interference, but that he intended 

 to carry on all legislation with the recently-elected 

 majority favourable to himself. And so the matter 

 remained, both sets of legislators meeting at intervals 

 to discuss public affairs, and no effort being made by 

 the Federal Administration to enforce the ruling pro- 

 nounced in the Supreme Court at Rio de Janeiro. 



It is necessary to refer to the political conditions in 

 the Amazon Valley, as they exercise a most powerful 

 influence in connection with all industrial enterprise. 

 The question of Federal and State taxation is one of 

 the most important factors for the Brazilian rubber 

 industry, and unless joint action be taken in the imme- 

 diate future by the Federal and State authorities, the 

 position of the rubber producers will become most pre- 

 carious and arouse a spirit of dangerous discontent, 

 leading to serious political disturbances. 



It has been the custom to regard the network of 

 rivers in the Amazon Valley as providing easy means of 

 transport throughout the greater part of these vast 

 territories. To a certain extent this popular view is 

 not without justification, but there are many circum- 

 stances minimizing the usefulness of this system of 

 natural waterways. In the first place, the rivers are not 

 properly charted, buoyed, or lighted for navigation pur- 

 poses, and the blame for this state of affairs can only be 

 attributed to the apathy of the Federal authorities. 

 Then the cost of fuel is abnormally dear, due in great 



