ae he Sooner eee Pew Pork State College of Agriculture At Cornell Qniversity Ithaca, N. 9, ——— Library Kaz Ke a gt ii Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924000290167 LAND of RUBBER -AT THE THIRD INTERNATIONAL RUBBER AND ALLIED TRADES EXHIBITION... ~NEW: YORK 1912 WITH THE COMPLIMENTS OF THE BRAZILIAN GOVERNMENT ts BRAZIL COURT Brazil occupies no less than ten thousand square feet of space on the Balcony Floor. The Exhibit is specially comprehensive. There is a fine archway to each entrance to the court domi- nated by the arms of. the Federal Government. An Information Bureau is provided, at which all enquiries as to Brazilian rubber will be answered. The walls are hung with statistics and maps of the country. Close by are the offices of the Brazilian Com- missioners and a refreshment kiosk, where the Federal Govern. ment dispenses Brazilian coffee to visitors. One of the first things to strike the eye is the huge recumbant figure of the Rubber Colossus, overlooking the mighty Amazon and its in- numerable tributaries, all of them highways of the rubber col- lecting industry. From this point the visitor may, with the assistance of a number of pictures, 22 feet by 12 feet, take a bird’s eye view tour up the Amazon. Alongside these pictures is a unique collection from the different States of Brazil of rubber and other products, the preponderance of the rubber industry being illustrated by a fine pyramid of caoutchouc. Dotted here and there are life-sized models of Brazilian workmen in their native costumes. Arriving at the entrance to the Amazonas Sec- tion we find Dr. Pinto actually engaged in the coagulation of latex by his new smokeless process, which manufacturers have admitted turns out excellent rubber and which has the great advantage over the native system hitherto in vogue, of saving an enormous amount of both time and labor, whilst giving splendid results. A second series of pictures affords a vivid idea of the salient features of the State of Amazonas. In this section we have a mountain of rubber, and a ball which weighs 1,600 pounds. There is a fine picture of a native tapping a rubber tree and numerous very beautiful photographs. That nothing may be wanting to the completeness of the representation of Brazil’s great rubber industry a series of Moving Pictures is shown in the Main Hall of the Exhibition, which visitors will find particularly instructive after they have gone through the Brazilian Section on the Balcony Floor. MARECHAL HERMES DA FONSECA, President of Brazil. BRAZILIAN DELEGATION of the INTERNATIONAL RUBBER EXHIBITION, NEW YORK DISTRIBUTION OF SERVICE FEDERAL GOVERNMENT COMMISSIONERS President DR. CANDIDO MENDES DE ALMEIDA Assistant MAIRO BAPTISTA NUNES Official representation, information and publicity Vice-President ADMIRAL JOSE CARLOS DE CARVALHO Assistants DR. OSCAR SAYAO DE MORAES ADALBERTO DE SOUSA ARANHA Disposition of Exhibits, Decoration, Etc., General Secretary. DR. EUGENIO DAHNE Assistant Secretary MR. DILLWYME M. HAZLETT Accountant MR. IVO GRACA CAMPOS Reception of Exhibits, Correspondence, Purchasing, Accounts, Payments, Etc. STATE COMMISSIONERS State of Amazonas DR. MANOEL LOBATO Commercial Association of Amazonas MR. A. W. STEADMAN, New York Commercial Co. MR. J. LEVY, Manaos State of Para Commercial Association of Para MR. GEORGE E. PELL, General Rubber Co., New York State of Bahia J. DO ARGOLLO State of Minas Geraes:. DR. I. SANTIAGO CARDWELL QUINN Rubber Demonstration DR. CARLOS CERQUEIRA PINTO OFFICE HOURS—9 to 12 A. M. and 2 to 5 P. M. Committee Meeting of Delegation—Daily 3 to 4 P. M. 4 DR. PEDRO DE TOLEDO, Minister of Agriculture of the Government. of Brazil INTRODUCTION - Brazil, with its vast and immeasurable virgin forests in the valley of the Amazon, undoubtedly the greatest in the world, traversed by innumerable tributaries, many of which are larger and deeper than many of the rivers in other countries, can be considered the largest storehouse of native rubber of the best quality, all ready to be extracted, coagulated and applied to all kinds of industries. No other investment of capital can be as remunerative as that invested in the extraction of the native rub- ber from full grown trees, already existing in large quantities of many millions, and in zones full of natural richness. For the culture of rubber trees of the various species, the whole northern and central portions of Brazil are well adapted, and will give magnificent results in the near future. Nature has prodigally provided easy means of communica- tion by waterways broad and deep. The climate is equitable without great variations of temperature, which gives perpetual summer and produces large and nearly uninterrupted harvests of agricultural products. The difficulties which hinder the rapid development of the extraction of rubber are the obstructions in rivers in certain places, at certain seasons of the year when the water is low, and the fact that the production of rubber is so remunerative that all the vigorous men that are thus engaged do not care to engage in any other industry. Thus it is that living in the rubber regions is very expensive because everything must be brought there, even implements and foodstuffs. These difficulties, however, have been brought to the atten- tion of the Federal Government of Brazil, and of the States, and in consequence an important Congress was called and pre- sided over by the Minister of Agriculture, Industry and Com- merce. The Legislative power also passed special laws pro- viding measures urgently needed to better the existing condi- tions. These laws also provide for a department under the 6 Minister of Agriculture, Industry and Commerce, to be called “The Protection of Rubber,” which has already been formed and is at work. Among the various and important provisions of the law, is the establishment of various experimental stations for advancing the cultivation of the four différent kinds of rubber trees found in Brazil, the Hevea braziliensis (seringa), castilloa (caucho), manicoba, and mangabeira. These trees are all natives of Brazil and can be cultivated from the upper regions of the Amazon to the States of S. Paulo and Parana. That is, from the extreme north to nearly the extreme south, one or other of these species can be cultivated, according to the climate and character of the soil in each region. Various concessions and money premiums are offered to at- tract capital and awaken activity in this industry. Certain ser- vices, such as the establishment of hospitals, medical attention and hygienic regulations are also provided by the Federal Gov- ernment. In the pages of this book will be found, fully treated, the principal points of this important subject. From the statistical tables published and from the exhibits displayed at the Interna- tional ‘Rubber Exposition in New York, it can readily be seen that the rubber of Brazil is judged the best in the world, and that its production although already enormous is destined to be largely increased. DR. CANDIDO MENDES DE ALMEIDA, President Brazilian Commission. A MONOGRAPH UPON PARA RUBBER HISTORICAL NOTES ABOUT PARA RUBBER It is in Our diaries of the voyage of the Genovese Columbus, that among the important occurrences of that notable crossing ofthe. ocean, which gave him immortality, appeared. the: first references, made by Herrera, to the quality of a certain gum utilized by the aborigines. In 1536 Gongalvo Fernandes d’Oviedo in his “Universal History of the Indies,” published in Madrid, also mentioned the uses which"\the indigenous tribes of North America miade of rubber: skins in their amusements. wikhe , Jesuit Charlevoix also refers to it and more fully. yet does. John Torquemada who in his “Indian Monarchy,” ex- presses himself thus: “There is a tree in this country (Mexico) known to the natives as ulequahuitl, to whom it is of the greatest value. This tree grows in the warm or torrid zone; and pre- sents itself of a medium height with rounded leaves of an ashy color,, It furnishes in abundance a species of glutinous white liquid like milk, which makes it of great utility to them. “The milk of the ulequahuitl is obtained by beating the tree with ‘a small hatchet. The liquid is then seen to ooze out from the incision made like blood from a wound. The natives gather it into dry hollow gourds of various sizes. It gradually takes consistency in these receptacles, until it turns into a gummy mass, from: which it is easy to adapt it to any form which may be required. “Those who have no gourds, besmear their bodies with the liquid substance, as it flows out from the tree; which in drying forms itself into a species of membrane, which is easily taken off and whose thickness varies according to the coating spread over the skin. Skins very much appreciated for their elasticity are made with this ulli. The ulli solidified serves for shields, which thus are proof against the sharpest-pointed arrows, owing without doubt to the pliability of the material, which does not affect its tenacity. “Kings and nobles habitually use shoes made of ulli. The Spaniards of Mexico, moreover, impregnate their capes with ulli, so as to make them water-proof, because it is proved that such substance resists water in a marvelous manner, but melts’ before the action of the sun.” COUNT CANDIDO MENDES DE ALMEIDA, President of the Federal Government of Brazil Commission. In Mexico and Central America, the name of Ule still denotes even to-day one of the rubber trees known as_ the elastic Castille. After the Spaniards, the French in 1736 occupied themselves with that substance, whose interesting properties had not up to that date come to deserve the attenion of the Europeans. De la Condamine sent by the French Government to Pert, in order to measure a degree of the terrestrial meridian, was the first to refer to the Hevéa of the Guyana. In a note that accompanied a small sample of resinous gum of a heavy dark color, almost black, he said to the Academy of Sciences: “There grows in the forests of the province of the Esmeraldas a tree known to the natives by the name of Hevé; a white resinous liquid something like milk runs out from it after making an incision; this substance is collected in a leaf that is laid close to the foot of the tree and afterwards is exposed to the sun, when it gets black at first upon its surface and afterwards by continuous exposure to the sun becomes black in all its mass. Torches, which burn admirably well, are made from it. It is known in Quito, that that tree grows also upon the banks of the Amazon and that the Mainas call it cautchi. They make earthen moulds in the form of bottles and cover them with that material. Afterwards when the resin gets hard, they break the mould and thereby obtain unbreakable water-jars much lighter than glass bottles.” Later on he wrote: “many are the uses which the Omaguas make of that resin in the central parts of South America, especially among the Indians of Para where the Portuguese gave to the tree that produces it, the name of Pauseringa, be- cause from it ‘seringas,’ much in vogue among the Omaguas, are manufactured ; these being little hollow balloons in the shape of a pear, into which a tube is inserted. “In Para it is moulded in still many different manners, they make borracha, faces of animals, hollow or solid balls and also apply it in the manufacture of boots which become quite water- proof and when smoked acquire the appearance of leather.” Fresneau, a collaborator of de la Condamine, sought to study the vegetable plants which produced that gum, obtaining as a result that Aublet, a French botanist, proceeded to interest himself in the question afd completed de la Condamine’s studies, and then classifying the hevé under the domination of Hevea Guyanensis. It was only in 1798 that the Ficus elastica, the first Asiatic plant producer of rubber became known, and up till 1860 South America, English India and Java were the only rubber-produc- ing countries in the world. 10 ADMIRAL JOSE CARLOS DE CARVALHO, Vice-President of the Federal Government of Brazil Commission. 11 Much later than this—in 1885, Africa commenced to export this article, an industry which reached its apogée after the creation by Leopold II of the Independent State of the Congo. In the meantime, in spite of the fact of some of the qualities of rubber and even its applications being known in Europe ever since the Sixteenth Century, it was only during the Nineteenth Century, that this product conquered that position as an article very much in evidence which it now occupies as an indispensable material in modern industry or even still yet for the necessities which civilization created. Hérissant and Macquer, in 1768, discovered the first dissolv- ing processes; in 1770, Priestley vulgarized the property of the “borracha” in wiping out lead-pencil tracings from which the English name Rubber is derived; Berniard, Fourcroy, Berthollet, Grossart and others occupied themselves about this commodity, with more or less success. Madier, in 1820, found out a me- chanical means of cutting the rubber-blocks in order to obtain elastic threads and three years afterwards, MacIntosh discovered that naptha dissolved rubber and thus made cloth impervious to the action of water. The adaption of rubber to industrial purposes such as the manufacture of shoes, physical and surgical appliances, elastic cloths, railway-buffers, machine-springs, etc., was fairly in full swing when the discovery of the vulcanizing of rubber by Goodyear sprung up, an occurance which came to revolutionize the insipient industry and enormously enlarge the scope of the commercial application of that product, which thence forward came to’ assume exceptional importance. The vulcanizing method consists in the mixing of a certain quantity of rubber with sulphur and in the exposure of that mixture to an elevated temperature and to a high pressure during a certain space of time. The rubber transforms itself considerably; the property of in- definite hardness is lost, but presents greater resistency to the forces of compression and lengthening-out, supports excessively low temperature and becomes less sensible to the action of ordinary dissolving ingredients. In Brazil already existed up to 1840, a rudimentary industry of shoe manufacturing and in the water-proofing of various objects. The great demand for rubber caused by the develop- ment of the industry in foreign countries and consequently the very high profits that the extraction of rubber in the Brazilian “seringaes” or native rubber-forests presented, de- stroyed all that initiative and Brazil passed into the position of a mere producer of the raw material. In order to appreciate with what devotion the country lent itself to this occupation, sufficient is it to contrast the 31 tons exported in 182” with the 36,547 exported in 1911. 12 DR. EUGENIO DAHNE, Be 98 General Secretary of the Federal Government - of Brazil Commission, : 13 RUBBER-PRODUCING PLANTS — BCTANICAL DESCRIPTION —-PRODWCTIVENESS — REGIONS IN WHICH THEY: EXIST At the present moment, more than 800 species of rubber- producing plants are known to exist, these being distributed among the tropical regions of the world. Trees of large size, climbing plants and flexible creepers containing the precious latex in their branches, trunk and roots, those vegetable growths from the double point view of quantity and quality of rubber produce have not an equal importance. The species worthy of mention belong to four great families: 1.—Euphorbiacan, Hevea, Micrandra, Manioh. 2.—U]macean, Castilloa and Ficus. 3.—Apocynacean, Landolphia, Hancornia, Kickxia Carpodium and Clitandra. 4-—Asclepiadaceas, Cal- lotropia, Cynanchum. The production of rubber in America is principally furnished by the heyveas, micandra, manioh, castilloa and hancornia; that of Asia; ne the ficus; and that of Africa by the landolphia, clitandfa and kickxia. In the Amazonian region of Brazil, there exist about 21 species of heveas; of these the principal is the hevea braziliensis, which under.the name of “the Para rubber-tree” deserves to be classed in the front rank of all the other lactiferous plants in the world. ;;The hevea braziliensis furnishes the most highly esteemed quality of rubber, and it is the value of that product which determines the prices of all the other species of rubber brought on to the market. The heveas are powerful trees of from 20 to 30 metres high, the trunk which is cylindric in form and. of a light ashy color, generally attains a diameter of from 0™80:to 1™20; the branches only commence to grow at about 15 metres from the ground. The leaves fall in June, but are speedily substituted by others; it is during this period that the trees break into flower. They: grow in the valley of the Amazon, which within Brazil embraces the State of the’ Amazonas, the federal ter- ritory of Acre, almost all the State of Para, the Nortn of Matto Grosso and of Goyaz and a part of the South of Maranhao, or say about 5,000,000 of square kilometres. Their habitat as a general rule is a low and warm region whose temperature varies between 25° and 30°; without sudden changes during the course of the-year and they favor by prefer- ence the watery soils, just swampy, damp and even marshy; 14 however, at the head-waters of some rivers, they also live and develop themselves perfectly well in dry and elevated land. In the Amazonic forests, the average proportion is of one hevea-; tree for 80 trees of other species. The milky latex circulates from the root to the leaves, exist- ing, however, in greater abundancy in the trunk, up to a height of abou: 2 metres from the ground. The heveas in Brazil are generally known by the term “seringueiras” and the forests in which they are found are denominated “seringaes.” The average production of a “seringueira” during the harvest season, which extends over the space of 6 months, is of 5 kilos of fine rubber and 750 grs. of sernamby. The species most appreciated besides the hevea braziliensis, are the hevea de terra firme, of which Dr. E. Ule treats in his recent studies, and which are found on the frontiers of Matto Grosso, the hevea do Rio Negro, called “seringa. verdadeira” (the real seringa), the hevea benthamiana and the hevea dukei, Hub, from the region of the Japura, all of them furnishing ex- cellent products. In the valley of the Amazon exist the micandras, belonging to the same family and producing a rubber of a superior quality, since it is sold under the name of Fine-Para. The production of these trees goes to the market includéd in the category of hévea, owing to its similarity to this latter. The micranda syshenoide which is the most known species, is found on the Lower Amazon, in the innumerable islands at the estuary of the great Amazon River: in the valleys of the Madeira, the SolimGes, the Japura and the Purts; the natives give it the names of tapygu, curupita murupita and seringarana. .They are leafy reg hliose trunk is of from 0™80 to 1™ in diametre and from 20 to 2 metres high. They grow as well in the low lying marshy soil as in the elevated lands, whence comes their denomi- nation of tapuru da vargem and tapuru de terra firme. The tapuri is as lactescent or milky as the hévea and the latex which it renders is equally rich, seeing that it gives 50 per cent. of fine rubber. \ The trees whose product, the caucho, occupies the second place in the general exportation of rubber from Brazil although as a matter of fact it only commenced to come into the Brazil- ian markets in the year 1896, belong to the family of the Ulmaceas. These are the Castillas which up till a short time ago have been classed as of the same species as that which grows in Mexico and Central America—the Castilla: elastica, but studies made by professor O. Warburg show that they age distinct species which was thence forward denomiyated Castilla Ulei, Warb. vi ema 15 He ‘castill6a” is a tree of large ‘proportions, reaching to a «height of from 12 to 18 metres; its trunk with a diametre of from 060 to 0™90, is of an ashy gray color, smooth and spar- ingly branched. The leaves are large, greater, indeed, on the new plants than on the full grown trees and its fruit is of an oily’ nature. “These trees grow in considerable quantities at the sources or head-waters of the affluents of the Amazon on the latter’s right bank, such ds the Jurua, the Purts, the Madeira, the Tapajoz and the Xingu, and on its left bank in the valleys of the Japura, the Ica, the Rio Negro and the Trombetas Rivers. Abundant “cauchaes” or forests of cautchou trees exist also in the region of the River Tocantins and of the Araguaya. The ‘‘castilloa” is found therefore in the same regions as those in which the “seringueiras” flourish; it exacts a warm climate, a clayey or clayey-silicious soil, but does not thrive in swampy ground or such ‘as is easily inundated during the rainy season. The latex is found as much in the bark as in the alburno and each tree felled produces on afi average about 50 litres of latex or say from 18 to 20 kilos of rubber. _ “Ceara” is the mundial denomination of another quality of Brazilian rubber, the rubber of the Manicoba tree. The mani- coba manihot glaziovii i is a handsome tree 10 to 15 metres high, and a native of the Northeastern region of Brazil. -1t$ trunk presents a diarhetre of from 20 to 50 centimetres and it possesses few branches; its wood-fibres are weak and light. The cortex, which possesses lactiferous vessels in abundance, is protected by ‘a silicose layer, easily removable. It is a plant of rapid ‘gtowth. ~~" According to a essing made by Dr. Ule, there are “four species of manioh, the m. glaziovii, the m. piauhyensis, the m. dichotoma and the m, heptaphylla, the which exist almost throughout all Central Brazil, being specially abundant in Ceara, Piauhy and Bahia. . Little exigent, it thrives in regions where the temperature oscillates between 22° and 36°, on low-lying ground and it develops itself well in lands of great altitude, in which the thermometric average temperature is about 1B’, resisting even the hoar-frost. , ‘It is indifferent to this tree whether the climate be damp or dry, as long as the soil is dry. The species most appreciated are those from Piauhy and » the Jequié (“sertdo or back-woods of Bahia). Those of Piauhy present two varieties: the white and the black species, the white being the most renowned. They are of small size, with abundant 16 foliage and thick bark and darkish stem and give plenty of the milky latex, the average being 1,200 grammes per tree. Those of the Jequié, which grow between the rivers Paraguassu to the north and of the Contas to the south, are a shrub-tree whose trunk does not exceed 30 centimetres in. diametre. The bark is fine and of light clear color; it produces about 500 grammes of rubber. The mangabeira (Hancornia speciosa) is a slender and crooked shrub-tree, 3 to 4 metres high, and ‘abounds on the high-lying table-lands or plateaux in the interior of Brazil. The trunk has:a diameter of. from -0™30 to 0™85; is scantily leaved; the fruit is eatable.and has a very agreeable taste. A plant of an extraordinary resisting power, it defies the inclemency -of the: climate, the absence of rains, the scarcity of humidity and. of nourishment from the soil. It predominates in the catingas of the Northern States, in the carrascaes of Goyaz and ‘in the cerrados of S. Paulo, which means to say, that it is found from Maranhio to S. Paulo, now in the Interior, as in the mountain-range of the Mangabeiras between Maranhao and Goyaz, in the central Chapada of Minas, in the Parecis of Matto Grosso and in S. Paulo in the zone comprised between the Paranapanema River and the Rio Grande, tributaries of the Parana River, and again on the littoral, which is the case from Bahia northwards as far as Ceara. There are several different varieties of this plant, there being no indications, however, tending to point out any one of these preferable to another with regard to the question of its yield.. The latex is of a bluish tint, its richness in rubber varying greatly. Each mangabeira supplies on an average one kilogram of rubber. : ” . Besides the plants mentioned, there are still many others in Brazil which furnish rubber, but which continue to grow without being taken advantage of, on account of the little profit they give. : To speak only of those which exploited on a small scale have yet supplied the Brazilian markets with an appreciable product, we may yet mention the Massaranduba, Mimosups elata, and Frei-Allem, gigantic trees found from the Amazon and Para to Rio de Janeiro and Minas, abundant in the milky latex, which being coagulated produces a rubber very similar to gutta- percha, to which it serves as a substitute in all the latter’s most important applications; and the Sorva, Couma utilis, Muell. Arg., which grow in Parad and'in the Amazon valley, the latex: of which, the leite de sorva, enters, with a small coefficient into: the production of rubber in these two States. Bo etl 17 IV—EXTRACTION OF RUBBER, METHODS AND PROCESSES The great organic and biologic differences which exist be- tween rubber-trees, exact divers processes of preparation in order to obtain a complete utilization of the productive capacity of each. It is, however, interesting before entering into a description of the different processes adopted in Brazil, to here state what the chemists think as to what rubber really is. Rubber is a carburate of hydrogen which in the shape of white globules more or less elongated, are found suspended in the milky latex. The composition of those globules, although even yet, badly defined, is represented by the formula (C” H”) ». Rubber is generally considered as a derivative of the Isoprina, into which it transforms itself when submitted to the action of dry heat, as Bouchardat demonstrated by his experiments in 1879. Treating the isoprina in a strong solution of chloridic acid, an interesting body is obtained, which reminds one of rubber on account of its elastic properties. Wallach, Tilden, Weber, Harries and others gave themselves up to accurate studies upon the composition of rubber; neverthless, up. till to-day, however, no definite result has as yet been arrived at. The latex, a thick liquid which has the appearance of animal milk, circulates in special vessels, distributed diversely in the organism of certain plants. The following are the results of the analysis obtained fran the latex of the hevea braziliensis by Seelingmann, Scott and Bamber: Seelingmann Scott Bamber WEE adc sel, 5B a 56% 22 - 32% 55" 55% Rubber ..scsvsc encase 32% 38% 138% 41" 32 % Proteine ...........005- 2% to 3% 2°% a i) RESil..: esudeaceee eee wea traces 3°% ~ QN%! ASH .aeveceavese dun ea 0°% - O'%! Suga: | cschesGutiass eaowy 4"% O"%! Oily substances. ....... 9° % traces Sond Specific weight: Seelingmann, 1.019. Bamber: 1.018. °° It is advisable to note, that the proportion of water may vary a great deal, influenced sometimes by the season being either wet or dry, and at other times by the weakness or vigor ofthe tree at the occasion of its being tapped. The quantities of proteine, resin and ash are dependent on the chemical composition of the soil, those quantities affect the 18 quality of the rubber, which is the more elastic, resistent and durable the smaller the proportion of those elements. In the coagulation of the latex, the resin incorporates itself in the rubber, it becoming difficult to separate it, which, how- ever, is necessary; the proteine or albuminous matter is the cause of the developing of the bacteria which occasion the putrefaction of the manufactured article. The method employed in Brazil in the extraction of the latex and in the preparation of rubber from the. heveas trees, is the same as that which was taught by the natives and it is a re- markable thing, that due to the excellency of the product result- ing therefrom, it is considered even to-day as the best system. The great production of rubber in Brazil, is due to the ex- ploitation of the natural seringaes. A “seringal” or, better said “seringaes”’ in the plural sense, are the forests where the hevea trees flourish among other numerous specimens of luxuriant vegetation, and in those regions everybody, i. e., all the able- bodied men, occupy themselves with the extraction of rubber and are known as “seringueiros.” In order to exploit the “seringal,” operations are commenced by the construction on the bank of the river, at a place easy of access for navigation, of a large rustic edifice with out-buildings and various sheds. The general edifice serves as a dwelling- place for the owner or his representative and includes a general store or shop with a tavern which does business in selling all the necessary articles required in or connected with the life of exploiting the “seringal,” a store-house for depositing the rubber and an office or counting-house. The sheds are the rudimentary habitation-huts of the “seringueiros” and are some- times constructed in the interior of the forests, so as to facilitate to a greater degree the work which they have in hand. As soon as the forest is explored and the seringueiras dis- covered, estrades are opened, these being winding roads cut in the undergrowth and brush-wood with the “facdo” (a species of large pruning-knife). and these roads connect a 100 or 150 rub- ber trees and they lead back to their original starting point. At sunrise; that is to say, at 6 o’clock in the morning, the ser- ingueiro armed with a “tercado” a sort of speer, a fowling-piece or sporting-gun, a small axe or hatchet, a pail and a large num- ber of “tigelinhas,” commences his work. The hatchet is the instrument employed for tapping the trees; it takes the form of a common pole-axe, being, however, generally of cast iron and with the edge of the blade blunt rather than sharp, and from 3 to 4 centimetres broad. The tigelinhas are small vessels or cups of tin-plate with a capacity of about one hundred grammes and of a conical shape cut off at the top. 19 The seringueiro commences by striking the trees with the hatchet, whose handle is about a metre long, which permits of his making incisions at about from 3 to 3%4 metres from the ground. That operation has for its object to make the latex ascend from the roots; the milk that oozes out is utilized as “sernamby.” Two days afterwards, the regular extraction com- mences, a hatchet with a shorter handle being then used. To bring this extraction about, “seringueiro” makes the first incision at two metres from the ground, but those incisions must not pierce the cambium and the “wood and are as a general rule made at an inclination of 25°. At the lower part of the incisions made by the blows, the “‘tigelinhas” are fixed, whose sharp and cutting corner penetrates easily into the bark of the tree. The seringuerio operates thus upon all the trees of his road, and this work which occupies him about from 2 to 3 hours being completed, he takes the pail capable of holding 10 litres and recommences his round, gathering into that receptacle the milk contained in the tapping cups, which now empty are boxed one into the other and deposited close to the trunk of each tree. After that second round and‘in order that the milk shall not become deteriorated, commences the most delicate operation, that of the smoking process. For that’ operation, the seringueiro is supplied with a “boido,’ a kindof ‘earthen funnel-shaped chimney, a form made like a spatula or putty-knife and a kind of basin “cuia,” like a dry gourd, made from the half of the fruit of the cabaceiro (crescencia cuyeté). : The fire made with ‘blocks of urucury (Ataléa ‘speciosa Martius) or with fire-wood of massaranduba, rich in oily sub- stances, being kindled, the seringueiro ‘places’ the “boiao” upon it, the function of this latter being to canalize the smoke so that it escapes at the top, which is open. Through the loop of a cord hanging near to the “boiao” the form is passed and sustained by the “seringueiro” who gives it a gyratory movement; with the “cuya” or gourd, he pours the latex into the part scooped out of the spatula, which he carries off immediately to the smoke. The latex thickens and forming ’a thin skin upon the which another coating of latex is poured out, which is also passed to the smoke. Those successive and alternate operations form the skins, large balls of rubber, weighing from 20 to 60 kilos, which are the type exported from Brazil. The smoke acting as a solidifyer and at the same time a disinfectant by the presence of creosote, acetic acid, etc., kills all the bacteria that produce putrefaction and hastens by its heat the evaporation of the water: The rubber thus formed is of a superior quality, but. when, 20 however, the curds still deposited in the basin, are incorporated with it, the quality becomes damaged, being then quoted as medium fine. The portion of milk which remains adhering to the receptacle or which surrounds the boiao and which thickens freely, is reunited into one single skin, and constitutes the “sernamby.” ; On the following day the work recommences, the seringueiro making new incisions about 7 centimetres below the first, and continuing thus until he reaches the ground. To that series of blows in the vertical sense, 35 on the average, is given the name arreacéo. In each seringueira 2 of these arreagdes can be made per year. That process which with small variations is employed in all Amazonia, produces, as is known, the best rubber in the world. A seringal may contain in accordance with its size from 40 to 800 roads. Each seringueiro exploits 2 roads; in which he works alternatively. The daily gathering varies between 2 and 8 litres of milk, but an average of 5 litres can-be taken for a road which contains 120 seringueiras of 35 centimetres diametre. As each arreagdo has 35 incisions and the seringueiras supporting 2 “arreacgdes,” we have thus for each road 70 days or 140 days for the 2 roads; 700 litres of milk produce 400 kilos or in other words 1.666 grammes per tree. There are “seringaes,” however, in which that average is considerably greater, a medium of 3 kilos per. tree not being an exaggeration in some rivers. Contrary to the almost sedentary life of the seringueiros, the extractors of the caucho (known as caucheiros) are of nomadic habits, and this is so by reason of the barbarous process em- ployed in the exploitation of those trees which is a ruinous one. The extraction of the latex of the “‘castill6a” can be done in the same way as that of the latex of the heveas; the caucheiros allege, however, that the cupim introducing itself into the wounds made by the incisions soon causes the death of the plant. Thus they argue that if the tree is condemned, the best way is to cut it down so as to obtain the greatest benefit possible out of it, by the complete utilization of the latex which each tree contains. That reasoning, however, has no foundation in fact The exploitation of the castilléa is done in the following manner: the “caucheiro” penetrates into the forest and marks each castillda tree that he finds, with a cut from his knife, which incisions correspond to a sign of possession for extraction later on. Once he has discovered a certain number of these trees, he constructs a temporary wooden hut for himself and then begins el his work. In the first place he clears the brush-wood around each tree and cleans away the undergrowth from the ground, he then opens small cavities in the lower part of the trunk into which he fixes the “porringers,” small vessels made of tin, which are to receive the latex. This done he strikes the tree with oblique “entalhas” of from 1 to 1% metres. in length, canalizing the latex which commences to run from the extensive wounds, by means of mud gutters. At the end of 24 hours the little tin vessels are full and their contents are then all poured into a pail, the ‘“caucheiro” commencing thereafter to cut down the tree, so as to get the full benefit of the latex, existing in the superior part of its trunk. The tree as a general rule is cut at a point above that where the incisions were made, the tree thus re- maining suspended above the ground at one end by the lower part of the trunk, where it remains fixed and at the other by its own branches. Along the whole length of the trunk at about a distance of an arm’s length from each other, new cir- cular incisions are made and in corresponding cavities on the ground are placed the receiving cups. The latex thus gathered is collected into a pail. The thickening is done with a solution of common soap about 125 grammes to a pail of water, two pailfulls of that solu- tion being necessary to thicken 30 litres of latex. They also employ the juice of a liane called vetilla which by the description given seems to belong to the convolvulas family—the Ipomea patatas. The thickening process takes place in rectangular holes of 1 metre long and half a metre broad, whose clayey sides are well paved and into them the latex is poured, care being taken that it is then covered up with palm leaves to prevent the entry of rain water. They thus obtain the caucho planks (rubber in cakes), which arrive in the market full of impurities, that de- preciate its value very much and it is not at all a rare thing that water exists in cavities in the interior of it, thereby in- creasing the weight and making the transport dearer. The portions of the latex which flow out along the length of the trunk or fall into the cavities after that the cups have been taken away, thicken itself freely and form the “sernamby” of caucho, to-day much appreciated in the rubber markets, be- cause of its being purer and not offering errors in weight. Each adult tree furnishes on the average-from 50 to 56 litres of latex or in other words nearly 30’kilos of rubber. Each cake of the size above mentioned weighs nearly 60 kilos; it is thus necessary to cut down three trees so as to obtain one cake. The trees cut down sprout and commence to grow again, but 22 eight years are necessary to elapse before they can be exploited anew. : No accord has so far been established as to the best methods of extraction to be employed for the different species of mani- coba, nor as to the period most appropriate, the duration of the tapping or the yield of the wild trees or planted trees of dif- ferent ages. : The system adopted for the natural manicgoba, consisting in the tapping of the subterranean organs, has been applied to culti- vated manicoba; the incisions are made in a transversal sense and have the form of a V with the angle more or Jess rounded. The latex is gathered in the ground, at the bottom of a small cavity, opened up on the occasion of the discovery of the parts destined to be tapped; as a rule the worker covers the bottom of the cavity with a coat of clay in powder, in order to pre- vent the penetration of the latex and its mixing with the sandy soil; the employment of tigelinhas is desirable or of pots of glazed clay, refractory to rust. The latex thickens during the day, forming a sort of flat ball or biscuit of rubber, which goes on augmenting as the tapping process is multiplied. At the end of a week the rubber which has been obtained, is gathered together and washed in cold water, with a view of eliminating the remains of the serum and other impurities. This method, although primitive, permits of the production of pure rubber. The trunks and branches of the manicgoba are also cut; however, such system occasions great inconvenience. The extensive flaws heal up with dif- ficulty, as the bark of the tree is relatively thin the lactiferous vessels are located in the deep layers; it is not a rare thing that the death of the tree is caused thereby or that the attack of rodent insects or mushrooms is thereby facilitated. It may be of importance to note, that the incisions made simultaneously on the trunk, the branches and the underground parts, speedily exhaust the manicobeiras; and so the system of an alternate cutting is preferable. The tappings are practiced during the first six months of the year.and-extend themselves over a period of from 50 to 60 days. Owing,to the lack of data, the average yield of production, which varies according to the age of the trees, cannot be determined, however, the average production of the planted manicobas may under reserve, be calculated to reach during the space of 60 days 120, 180, 240, and 300 grammes per tree of 2, 3, 4 and 5 years respectively, in accordance with a calculation made by Dr. L. Zehnter. The actual cost price in the plantations does not exceed 1$500 per kilo, and might be reduced through an improvement in the 23 systems employed; the cost price of rubber from the native mani- coba is higher, due to the dearness of labor and of freights. There is so’ far no process which may be called the best for extracting rubber from the mangabeira; the process in use varies with the region, all of them, however, leading to the complete extinction of the plant. Under the pretext of the cupim destroying the plant, attack- ing the incisions that have been made, the latex is usually extracted at a small height from the ground. In the “sertdes” or wild woodlands of Bahia, Pernambuco and Parahyba, the extraction is done by making a spiral cutting from the thickest branches to the ground, where the cavity is made for receiving the latex. Nevertheless, the incisions with the cup attached is now being employed, in the same manner as is customary with the seringueira; for that purpose, the exploiters make horizontal incisions or in shape of a V, with a small instrument called an alegre, penetrating the entire coating of the bark, in the full length of the trunk, from the thickest branches down to the base, about 45 centimetres distance one from another. The latex is thickened, sometimes simply with water in the proportion of 3 to 1, and at other times with chlorate of sodium alone, or with a mixture of alum, as is customary in Bahia and in S. Paulo, or now again by the action of alum-stone, double sulphate of aluminium and of potassium as is done in Per- nambuco, Parahyba, and Rio Grande do Norte. All those pro- cesses present serious inconveniences, such as the entry of water augmenting the weight, the baneful effects and dampness arising from the use of a large proportion of salt, or the loss of elasticity due to the last mentioned process, which turns the rubber cracky and resinous. The smoking process seems in every way to be advisable whenever the richness of the milky-latex in rub- ber is perfectly comparable to that of the hevea. Whilst it is affirmed that the production per tree is from 3 to 5 kilogrammes it is more prudent to calculate the average capacity: of each tree as at 1 kilogramme. 24 THE ECONOMIC ORGANIZATION OF RUBBER EXPLOITATION The economic organization of the exploitation of rubber in the Amazonic valley still remains in its rudimentary condition, continuing almost exactly on the same lines as those adopted when the production of this article—one of:the principal sources of the wealth of Brazil—first began to open up. This unaltered condition of affairs in the modifying of the economical processes, is the consequence of the continuance of certain conditions such as the existence of vast regions still entirely unexplored; the progressive penetration of the serifi- gueiros guided by the course of the rivers into far away regions where rapid mearis of communication are completely lacking, the scarcity of labor, and the necessity of capital being embarked in the extraction of rubber, The régime of private property is still limited, and does not extend beyond a few kilometres into the Interior, starting from the banks of the’rivers, since the greater part of the lands still continue to be the property of the States either of Amazonas or of Para, and—in the territory of the Acre—of the Federal Government. With the object of peopling ide rubber- Sroitictae regions endeavors are being made’ to facilitate the acquiring of prop- erties by furnishing their owners with adequate guarantees of protection, special Public Departments having ‘already been created in the State of Amazonas and’ Para devoted to the fiscali- zation of the régime of lands; and the régime of lands in the Acre Territory is about to be regulated at once by the Federal Government in accordance with the determinations set forth in the new economic measure known as the Rubber Defense Act. The proprietory question originated itself in the concession of lands granted‘ under ¢ertain ‘conditions such as that of its effective exploitation and cultivation, colonization, etc., and by the legitimation of the possession. These last were established in the following'manner: — The explorer who penetrated into the forest in search of geringaes, examined the ‘banks of the ‘river by which he went up and when he verified the existence of a favorable zone, he landed and after a careful exploration: under the direction of specialist-workmen called ‘‘‘matteiros” (foresters) he settled down and' gave himself up to the exploitation of the ‘ ‘seringal” ‘he selected. 25 That occupation of virgin ground and its being made use of constituted the act of possession, the first step towards acquir- ing the property. In order to definitely assure the dominion of the lands selected, it became necessary to obtain a title of owner- ship from the Government of the State in which these lands were located, this being drawn up only after that the respective marking out and survey by an authorized engineer or sur- veyor, the depositing of the respective plans, the verification that no anterior rights or claims existed on the part of third parties, as also the payment of the respective taxes being satis- fied, which last averaged about 5$000 per hectare. Only after that all these formalities had been complied with, was the concession granted definitely, and the possession con- sidered as complete. The title deeds of the property with the respective specifications is registered in special blocks, which will serve as proof in case of future dispute and will furnish authentic documents in place of the property-titles. that may have been mislaid or lost. Once the concession legalized and the possession marked out, the property rights are considered irrefutable. : The dominion of the lands being assured, their usefulness will depend upon the co-existence of two essential factors— labor and capital. In the regions of the Amazonian valley, sparingly peopled by the want of direct immigration, the work is done by the natives and principally by Cearenses, people from Ceara. Under the general designation of Cearenses are comprised the populations of the northeast of the country from Bahia to Piauhy, a strong race endowed with rare energy. Having immigrated from their native state fleeing from privations to which the periodical dry seasons reduce them, they arrive com- pletely without the means of subsistence, it being necessary for the owners of the “seringas’” who contract their services to take measures for their transport, alimentation and maintenance in the seringaes until with the delivery of the rubber collected, they find themselves in a position to liquidate the debts that they have contracted and the expenses that have been occasioned. On the other hand in their turn the owners of seringaes not disposing of capital are placed under the necessity of raising loans with which to defray the exploitation of their lands. These resources are furnished them by the traders, part in money and part in merchandise, these traders being known as aviadores whilst the proprietors are called patrons or aviados. .The extensive credits opened by the traders constitute acts of confidence, being guaranteed more by the activity and initiative of the proprietors of the seringaes, than by their respective 26 properties; the heavy burdens with which these loanings or advances of money are weighed down, have their origin in the risk which is run by advancing such capital, due to the diffi- culties of collecting the debts contracted and the far distant nature of the lands given in guarantee. It frequently happens that the traders do not dispose of sufficient means for carrying out all these lending operations in which case they fall back upon the exporting houses, who advance them the necessary money, against a contract to hand over the rubber at a certain date and at prices previously fixed. 4¢Thus is established a successive dependency of the seringueiro on the owner of the property, this latter in his turn on the merchant-trader and finally of the merchant-trader upon the exporting house. Thereafter it is seen how grievously the system of want of capital acts on the whole system on the exportation of rubber and the long series of intermediaries. 2 Let us see now what is the capital which the owner of the seringal requires to possess for an exploitation of say 200 roads. A seringal with 200 roads exacts altogether the work of 100 men, whose engagements in the region where they reside and their transport as far as the “seringal” costs on an average 40 :000$000 and to each one of them is supplied a sum of 850$000 destined to defray the costs of purchase of the indispensable material for making a commencement with the work of exploita- tion; out of an initial sum estimated at from 75 :000$000 to 80 :000$000 including casual expenses. Arrived at their destination, the seringueiros, as they find themselves comyletely without means, continue to be a burden on the budget of their contractors during the period of the clear- ing the forests of brush-wood and undergrowth, and the cutting of roads, which are the preliminaries to the gathering in of the rubber. Up till the date of the final delivery, which takes place _from 6 to 7 months afterwards, the proprietor expends nearly 100 :000$000 with the feeding and maintenance of the serin- gueiros, which is but the preface to a total sum of 180 :000$000 inscribed on the books of the aviador or merchant-trader as being the indebtedness of the owner of the seringal. This latter in order to meet the charges of the up-keep of the seringueiros, establishes ‘“‘vendas” or selling-stores, by means of which he supplies not only the goods of first necessity for con- sumption, but also the tools, utensils and, indeed, everything that is required for the proper exploitation of the “‘seringal.” These “vendas” or supply-stores are stocked by the mer- chant-trader of Belém and Manaos, who send them periodically in steamers or steam launches, the necessary merchandise. Ac- 27 i cording to the season of the year, the rainy or the dry season, the greater or less the distance to be navigated, in short, in accordance with the condition of navigability of the rivers, the trips are made fortnightly, quarterly or perhaps only twice a ear. The merchandise dispatched is debited to the owner of the “seringal” at the invoice price, augmented by the high expenses for insurance, freight and a commission which varies from 20 to 30 per cent. according to the time-term stipulated for the payment in cash or the delivery of the rubber. The owner of the “seringal” in his turn re-sells in retail the merchandise received, putting on a high profit to its original price; the seringueiros who already pay interest at the rate of 20 per cent upon the advance of the 350$000 which is made to them at the time of their being contracted, are obliged to supply their needs exclusively in the store of the proprietor of the “seringal” and to hand him the rubber which they may have gathered in payment thereof. The initial supplying of the utensils amounting to 200$000 added to the cost of the journey which runs for account of the seringueiro himself, absorb the 850$000 of the advance; and his expenses, whilst the extraction of the rubber is proceed- ing—which lasts for 6 or % months—totals up to about 1:000$000, so that when he comes to hand over the rubber, he is already responsible to the proprietor of the “seringal” for an amount of about 350$000 including the payment for the renting of the road explored. His production being on an average of about 400 kilos (in certain regions it is much greater), the worker finishes his en- terprise with a very small profit and it is not a rare case that he is not able to satisfy all his indebtedness, a circumstance, this latter, which keeps him continually dependent upon the owner of the “seringal.” On handing over the rubber, the conditions of payment are adjusted and these are generally made in one of the two fal- lowing ways: either the seringueiro sells the rubber directly to the proprietor of the “seringal” at a reduction of one-third upon the prices ruling in the markets of Belém or Manaos; or he en- charges him to sell it in the referred-to market with a discount of 35 kilos of rubber or with a discount'of from 10 to 15 per cent. of the net price of such sale, given in payment of the renting of the road exploited. -. This defective economic organization of the exploitation of rubber has, as its consequence, the high costs of production which to-day oscillate between 3$000 to 8$500 per kilo. This 28 disadvantageous situation, however, is not a permanent one and may be remedied. We shall leave for a special chapter the explanation of the means recently adopted for bettering the condition of the serin- gueiros, augmenting their productive capacity and recompensing them more justly for their work. TRANSPORTS AND FREIGHTS The problem of transports and freight continues to be one of the most palpitating questions in Brazil, notwithstanding the great progress in this particular made during the last 10 years. The considerable increase in the mercantile marine. and the incessant construction of the numerous railroads of penetration, have not been able to,keep pace with the extraordinary develop- ment of the country and its notable economic expansion, the national commerce continuing to feel the want of further means of transport and to suffer from the very high rates of freights. In Amazonia, the difficulty of communication has become still more felt because. of the, vast region and territories em- braced in this great State, sparingly peopled and whose centres of production are located so far distant from the exporting mar- kets of Manaos and. Belém de Para. .Watered in eyery direction by innumerable great. rivers, tributaries of. the great river—the Amazon—the greatest in the world, the Amazonic region still remains to a very great part unexplored, inestimable riches susceptible of being extracted, lying unutilized, in virtue of the deficiency in navigation; in fact, if the principal rivers are navigated regularly to some extent, even though sparingly, others leading to immensely rich regions are very rarely navigated by either ship or boats, which might assure the transport of the products gathered. | Many and divers are the circumstances which concur towards bringing about this state of affairs, but the most important in resumé is that of the want of capital for the construction of ships and the establishment of regular lines of fluvial navigation as also the obstacles offered either by the irregular courses of some rivers obstructed by waterfalls, shoots and rapids, or simply obstructed by the trunks of trees, and other materials or by the diminutive volume of water during the dry seasons which makes impossible navigation of even ordinary draught. | One of the most interesting phases of the Amazonian problem is, however, in the regulating and increasing of the navigation of the rivers, with the object of assuring ample transport facilities 29 and the approximation to the centres of production with the consuming markets. The opening up of the ways of fluvial com- munication is an essential condition to the progress of the Amazonic region, by the lesser expenditure required by trans- port upon water in comparison with land transportation which in those regions would be particularly difficult and costly. The steamers and boats which set out from Manaos or Belém for the Interior, make the passage generally, over-charged with merchandise which by reason of accumulation and its defective packing suffers not rarely serious damages which has the result of bringing about a notable increment in prices. As a general rule the cargo being greater than the space requisite to its accommodation, makes the navigation extremely difficult, the steamers thus not being able to make head-way against the cur- rent, which flows at the rate of from 3 to 5 miles an hour, or desiring to diminish the expense in the consumption of coal, seek out the waters the less agitated and approach as much as possible the banks of the river. The want of minute hydrographic charts and the imprudence of the captains, as also of the masters of steam launches and other floating material, have, as a consequence, the bringing about of frequent strandings, which even though they may not cause damage to the cargo involve interruptions in the trip sufficiently prejudicial. The unloadings are made frequently on the banks of the rivers under little favorable conditions, by reason of the want of wharves; are very slow and occasion besides lamentable delays, very heavy expenses principally for the packages of great weight. One of the causes which most determine the dearness of transport in Amazonia, is the supply of combustibles to the steamers, these latter taking in coal only at the port of departure in Belém or Manaos, and this being consumed, purchase wood fuel along the route just as they require it, and for a high price, subjecting themselves thus to the delays incident to loading, at times very great. Coal mines in the basin of the Caqueta have been discovered, but so far it has not been possible to derive any benefit from them, owing to the want of the necessary studies and analysis, which only now the Federal Government is begin- ning to have made. , For the betterment of this state of things the Federal Govern- ment also pretends to.contract with a large public company for the establishment of coal depots and combustible oil, at the most appropriate points of the rivers on which the greatest movement takes place in the-valley of the Amazon, so that the steamers may be supplied for prices according to’ a tabular’ statement previously approved for each year.” oo 30 The descent of the floating material by the rivers is much less onerous, as the consumption of combustibles is thereby con- siderably diminished, thanks to the current which gives an easy impulsion to the floating material; the trips are notwithstanding slow, much time being lost in picking up cargo, almost exclu- sively rubber, on the banks of the rivers. The irregularity in the navigation either due to the deficiency of the floating. material or by the natural obstacles that the flooding of the rivers bring about, cause extensive prejudice, as it obliges the large cargoes of merchandise upon whose price ‘high interest is collected and occasions them considerable loss _of goods deteriorated by their remaining for a long time in sheds -and by the damaging effect of heat and dampness. ' From thence arises the lamentable dearness of life and the bad alimentation, with their evil results on the health of the inhabitants of those far-away-regions. The retention in the seringaes of large stocks of rubber de- prived of the means of transport must also not be forgotten and its coming simultaneously on to the market at certain times, being taken advantage of by speculators is an important cause of the fall in prices which affects the interests of producres to an appreciable degree. Regularity and frequency in navigation, permitting successive and regular supplies of rubber would diminish in notable pro- . portions the cost of production, since it would cheapen the cost of labor and avoid the great oscillations usual in the prices. In order to obtain that desideratum it is not sufficient’ to create new lines of navigation. nor to augment the number of floating material or better their conditions, but it is necessary to adopt certain complementary measures. Thus in the im- possibility of preparing from the outset minute hydrographic charts, a measure which would require great expenditure ; it were advisable in order to make navigation more secure to indicate by means of small light houses and illuminated buoys of acety- line, the dangerous points which it is desirable to avoid. In order to obviate the difficulties created by the formation of sand banks, by the accumulation of trunks of trees, and of obstacles of all kinds, it is necessary ‘that attention be. paid con- stantly to the cleansing of the rivers’ and dragging them, in cases where the obstructions cannot be removed by other means ‘and the construction of railways and wagon roads connecting the navigable points. :It would be of the greatest utility to bring about the exten- sion and. opening up of telegraphic lines joining the producing centrés with the central markets, such measures would have ‘the most beneficient results as much for the owners of seringaes 31 as for the shipowners, these latter being once aware of such facilities would cause their ships to be. directed to the points where they were required to discharge merchandise or take in rubber or vice-versa and thus avoid all uncertainty upon the advantages to be reaped from those trips, because of the want of knowledge of the cargoes that are being reserved for them, and those who are in contact with them in the markets where the product is sold may be advised as to the quotations and the market prices of the merchandise so that they may take advan- tage of the most favorable times for effecting their transactions. The message presented by His Excellency Marchal Hermes da Fonseca, President of the Republic of the United States of Brazil on the third of May of this current year, made special reference to the services of the radio-telegraph in the territory of the Acre, expressing himself in the following terms: “The three radio-telegraphic stations that have been con- tracted for in December of 1910, are now in full working order, those of the Rio Branco and Senna Madueira having been in- augurated in September of 1911 and in February of this year. that of Cruzeiro de Sul, which besides speaking with those two and therefore with Manaos, communicates also. with Iquitos in the Republic of Pert. In order to complete this very useful improvement ordered to be done in such a happy hour, there were also contracted for two other stations, one of these being in Xapury and the other in Taruaca, places having a great future before them and already containing an appreciable population as well as a notable material development.. With the installation of those two stations, the territory will be perfectly well equipped in regard to the question of tele- graphic communications. As a consequence of the dearness and the difficulties in the means of transport we get the excessive rises in freight, which at times are equal to and are often greater than the value of the merchandise transported; the truth is that the crisis in rubber made them suffer a certain fall and we no longer see such a thing happen as that the shipowner pays for the price of his steamers in two round trips. The dominating principle is that of liberty of commerce. In order to assure regular services on the principal rivers, the Federal Government as well as the Governments of the States of Amazonas and Para subsidize certain companies whose tables of freight charges are approved by the Public Powers. That these are still very high is shown by the fact of competition which in certain lines takes place between the subsidized companies and private shipowners; the latter, however, not being able to go 32 beyond the tariff tables of the former, they nevertheless obtain freights and passengers which proportion them high profits, demonstrating thus that the tables of freight tariffs of the sub- sidized companies are still a long way from the maximum of reduction. The Commercial, Industrial and Agricultural Congress which took place in Manaos from the 22nd to 27th of February of 1910, considering this position, resolved to recommend to the Public Powers the remodelling of the actual freight tariffs principally in that part of them which relate to alimentary goods, necessary to the sustaining of the extractors of rubber and in the sense of their being substantially cheapened. Even to-day one of the best businesses in the Amazonic regions consists in chartering steamers for trafficking on the rivers. If the freight rates on the sections served by the subsidized lines are high, greater still are these on the less favored sections where the rapids of the rivers flowing among the seringaes, make navigation difficult, because in these latter there being no freight tables, they make the price according to their judgment, such prices of transport being contracted directly according to the circumstances of the occasion with the shipper, who has to pay the price as the masters of the steamers are pleased or re- solved to charge. The owners of seringaes subject themselves to the heavy burdens which they are bound to put up with, in the hope of escaping the damage that the retention of their produce for waiit of transport would cause them . It is not only the fluvial navigation freights that are much too burdensome, for the freights for ocean navigation are also burdened with this grave defect and thus it is that despite the fact of the distance which separate Brazil from New York and from London, is only half that between the consuming mar- kets and the east, the freights for the latter are incomparably less. It behooves the Governments of countries producing rubber in South America to come to an arrangement so as to confer adequate premiums on the navigation companies to Europe and to the United States, who cheapen their freights and’ cut. down in a satisfactory manner the duration of the voyage. 33 INTERNAL MARKETS FOR RUBBER—ORGAN- IZATION AND WORKING—TYPES AND QUOTATIONS Located in the centre of the most important rubber produc- ing region of the world, Belém and Manaos, the capitals. of the two great states of the north, are, in Brazil, the principal markets of that product. Nearly 90 per cent. of the Brazilian exportation proceeds from there, the 16,000 tons of rubber which each of these markets export annually gives place to a considerable mass of business. If it be true that the commercial transactions gyrate around equal quantities of rubber, Belém has the advantage over Manaos, because it is the seat of a great part of the large ex- porting houses that operate in the two capitals. Its geographical situation which permits of more rapid communication with the markets of the south, and with foreign ports, contributes also towards its greater commercial importance. The uses and customs are identical in the two markets. Commerce obeys a rule above all unfavorable to the sellers who cannot put a value on their merchandise but are forced before all things to accept the price imposed by the buyers. That dis- advantageous condition of dependency is the natural outcome of the deficient economic organization in the exploitation of the rubber industry in the valley of the Amazon. Reference has already been made in another place to the burdensome .com- mercial relations between the seringueiros and the patrons or proprietors of seringaes and between the same patrons and the commercial traders. The same vices and defects are to be found in the relations between the commercial traders and the great exporting houses. Those latter, possessors of large capital and united together in the common interests, dominate the market, which, weakened by successive crises and always in a precarious state cannot oppose them an efficacious -re- sistence. Cae mon That situation can only be modified in the case of the actual economic and commercial methods, which place in the hands of the merchant-trader all the responsibility of the conduction of business in the place, without at the same time arming them with the means of defence against unrestricted speculations, The merchant-trader’s houses are the intermediaries between the seringueiros and the exporting houses. But, their principal function is that of furnishing the seringueiro during the year 34 all the goods necessary to sustain him and his employes as well as supplying him with tools, utensils, wearing apparel and in fact, everything that may be necessary to his life in the seringaes. This supplying is done on credit, that is to say, against the remittance of rubber produced by the borrower and which is sold on its arrival by the merchant-trader to the exporting houses. : The merchant-trader thus requires large capital so as to meet the engagements that he assumes in the market with the great and numerous supplies, which he is obliged to make. It is incumbent on him also to transport the same for which he nearly always employs steamers of his own, in order to bring the merchandise to its destination in far-away regions, bringing back on the return trip the rubber collected by his aviados, i.e., his borrowers of the seringaes. The responsibilities assumed become due on the occasion of the arrival of the cargoes of rubber. In fact, it is exactly at this moment that the merchant-trader is most in need of money, because besides the imperious duty of .paying the amount of his debts and the immediate necessity which he has of furnishing new supplies to his clients the aviados, he has still yet expenses to disburse with the repair and fitting out of the steamers, which owing to the bad conditions in the navigation of the rivers return nearly always in a damaged condition; balances to pay to the seringueiros whose debts were relatively small or advances to make to those whose production was in- ferior in value to the supply sent, but who required a new re- source under the danger of otherwise not being able ever to liquidate their debt. Thus it is that the aviador or merchant-trader has no other remedy, but to sell without delay the rubber which has been consigned to him and that is the psychological moment for the decided action of the buyers. Reduced as to number, well informed about the business and in the possession of daily and direct notices from the con- suming markets, perfectly bound up to them by a question of mutual interest, they decide to make the price for the merchan- dise that is offered to them. It is not always that that price corresponds in reality to those of the foreign market, but the apprehension that seizes the merchant-trader that moved by their interests the buyers may resolve to retire the offer, does not permit him either to hesitate or resist. He hands over the mer- chandise with a small profit and not uncommonly with a loss. Treating of an article which up till to-day has been produced in asquantity inferior to the necessity of the industry, whose 35 price was kept up high, much above that which might be called a remunerative price, that inversion of the law of economics is a very curious one, because, in this case, it is not the producer who imposes the price, but the buyer who does so. ; The difficulties which the merchant-trader had to fight against, have been increased lately with the advent of the “regat6es,” a species of barter-commission travelers on the rivers. This ‘trade is exercised by individuals acting for their own ac- count or as agents of the merchants and who go up the rivers with merchandise, doing business at sight in exchange for money or rubber, diverting in this way a large part of the trans- actions until now exercised through the inter-medium of the merchant-traders. The principal causes of the precarious position of the “aviadores” or merchant-traders are the lack of adequate capital and the want of banking facilities and other establishments of credit which might come to their aid. The export houses, however, operate with the greatest firm- ness. They discount the drafts for the rubber bought, in the agencies of the English banks, and with the product of this operation pay the merchant-traders, and as these drafts are at 90 days sight, it is only after the rubber is sold in New York or in Liverpool that they satisfy their indebtedness, thus traffick- ing almost covered from any risk whatsoever. The aviador or merchant-trader receives the rubber by the weight which it shows at the moment of being unloaded; if the trip is a long one the shortage in weight of the rubber may be as much as 15 per cent.; if, on the other hand, there has been no time, owing to the shortness of the trip, for such a-thing to happen, it is certain that on its being magazined or stored-up, it will continue to quebrar, i. e., diminish in weight. Thus, there- fore, it is to the interest of all parties concerned to sell it and export it as soon after its arrival as possible, which, however, does not mean to say that the question of shortage is not an element which comes into play in making the estimate of its yalue. The classifying of the rubber is done upon the occasion of its sale, this being an operation which necessitates a long ex- perience and practice in the knowledge of the article. Two workmen with iron instruments which they call “gatos,” take hold of the skin (smoke-cured roll or ball) by the orifice which is left in its shape on its being made, at the same time that a third workman cuts it down the middle with a sharp instru- ment called a “tracado.” By this means it is easy to ascertain if the manufacture of the internal coatings or layers has’ been ‘36 done with the necessary care, and if the weight has been affected by water, or by any other extraneous body. If the rubber presents itself with an uniform aspect, per- fectly smoked and sufficiently elastic, it is classed ‘‘fina.” If, however, any points present spongy parts proceeding from coagulation of the latex anterior to the smoking process, it is styled “entre-fina.” To the agglomeration of residue which con- geals freely, the name of “sernamby”’ is given. There is still the ‘“borracha fraca” little elastic, whose mercantile value is put in the same category as “sernamby” and which does not come from the latex of the hevea. This work being finished, the rubber is bought in accordance with the quotations of the day, based upon prices coming from England and from the United States, but as has already been explained, this quotation is not always respected. There is another anomaly to which it is advisable to refer: whilst the “entre-fina” and the sernamby are quoted abroad at least at 200 réis and 1$800 réis less than the “fina” the markets of Belém and Manaos show a difference of 800 réis and 2$000. There are other abuses which also take place in the classify- ing of the rubber, which gives as a result that the buyers prefer to do business upon inferior qualities, because these offer a larger margin for profits. The rubber is exported in American pineboxes which can hold nearly 150 Kilos. The dearness of manual labor in the Amazon territory makes it difficult to take advantage of the innumerable species of timber-woods in which the valley of the great river is so abundantly rich. In the remaining markets of the country where the rubber is negotiated, the price is regulated by the quotations in Para. These local markets are of little importance and in nothing do they distinguish themselves as to the relative transactions in rubber, from the general mass of business. The class of aviadores or merchant-trader does not exist. Each producer sends his stock to his agent or representative or sells it to the first buyer. The rubber is collected from either manigoba or mangabeira. In the commerce of those products, the markets of Bahia and Fortaleza stand out the most prominently, to which places a cer- tain appreciable portion of cultivated plantation rubber converges every year besides a great quantity of native rubber. 37 ECONOMIC AND FINANCIAL IMPORTANCE— FEDERAL AND STATE REVENUE— EXPORTATION TAX The most superficial examination of the actual economic po- sition of Brazil demonstrates at once and in an incisive manner how important the rubber industry is to the national life of the country. Possessor of the innumerable riches distributed by the three Kingdoms of Nature, it is almost exclusively due to the cultiva- tion of coffee and to the extraction of rubber that Brazil owes its extraordinary commercial development in’ these last twenty ears. - The great fortunes which the plantations of the famous red- bean of the coffee-tree created in the South and the considerable profits which the exploitation of the precious gum have pro- duced in the North, were certainly the causes which most influ- enced the development of the production to such an extraor- dinary degree, relegating to a much lower schedule in the gen- eral tabular statement of Brazilian exportation, all the products, whose commerce although certainly remunerative, does not show such certain and speedy results. The general exportation of Brazilian merchandise was £63,- 724,440 in 1909, £63,091,547 in 1910 and £66,838,982 in 1911. To these totals, coffee and rubber contributed during each of the same three years £52,401,276, £51,342,278 and £55,458,221 re- spectively—totals these, sufficient by themselves, to guarantee with advantage the Brazilian international commercial equilib- rium, when it is seen that in those said same years, the general importation of merchandise amounted to £37,139,354, £47,871,974 and £52,798,016. Rubber contributed to the general total of exportation with 29.70 per cent in 1909, 39.06 per cent in 1910 and 22.53 per cent in 1911, or in other words an average of 30.43 per cent per an- num. It is worthy of note, that the great difference which took place in the above-mentioned percentages is explained in the fluctutions in the prices of rubber, since the production not only did not decrease, but, as a matter of fact, increased from year to year. Therefore it is seen that nearly one-third of Bra- zil’s export trade is supplied by rubber, and it is nearly twenty millions of pounds sterling that Brazil receives every year, and which goes far to provide for the sustentation, not only of the population of the Brazilian Northwest, comprised in the great 38 States of Para, Amazons and Matto-Grosso and the Federal Ter- ritory of the Acre, but for the prosperity of the North- east States, which get:the benefit of a good part of that sum through the intermedium of their sons, who live by the exploi- tation of the rubber; the Southern States benefit in their turn by the abundance of money in the North, that most secure guarantee of their prosperity, since that being producers of cereals, xarque, coffee, sugar, textile goods, hats and shoes, for a long time al- ready they have constituted themselves the principal furnishers of food-stuffs and wearing apparel to that region. Finally there is still to be considered the benefit to be brought indirectly to the whole country because that sum goes to increase the com- merce of importation, thus powerfully augmenting the Federal Customs Revenue. The sum obtained by the States of the Amazons and Para and by the Federal Territory of the Acre, is also considerable every year by the tribute paid on the rubber going out. This last Territory of the Acre, since its incorporation with Brazil by. the Treaty of Petropolis concluded with Bolivia in 1903, cost the Union (including the expenses incident to the ac- quisition of the Territory and other resulting compromises of the said treaty, such as the arbitral Tribunal, loans to Bolivia, mark- ing out of the frontier, construction of the Madeira-Marmoré Railroad and expenses for the mobilization of troops, etc.), up till 1909 the sum of Rs. 62,595 :562$038; the revenue brought in during the same period attained the sum of Rs. 58,052 :- 757$012, in 1910 moreover the tax upon the rubber produced was Rs. 19,867 :529$159 and in 1911 Rs. 9,671:711$068, or in other words Rs. 29,539 :240$227 more, which should be carried to the credit of that very rich region. The rubber of the Acre is exported through the intermedium of the markets of Belém and Manaos, the impost-tax of 20 per cent ad valorem being collected on the occasion of its shipment. The States of Amazonas and Para cannot dispense quickly without very serious economic disturbance with the revenue receivable from the tribute paid on the exportation of rubber. As a matter of fact, the State of Amazonas collected the sum of Rs. 16,845 :585$063 in 1909, Rs. 18,069 :162$372 in 1910 and Rs. 12,- 901 :477$379 in 1911; the impost-tax upon rubber brought in those same years respectively Rs. 13,316 :487$569, Rs. 14,836 :235$238 and Rs. 9,999 :031$526, which can also be reckoned by 79.04 per cent, 82.11 per cent and 77.50 per cent. The State of Amazonas taxes rubber produced in the State itself, in 18 per cent ad valorem, and that coming from the Jav- ary, the boundary river with Pert, in 7 per cent. 39 In its turn Para has had in the form of revenue collected in those years, the amounts of Rs. 19,039 :709$531, Rs. 20,255:- 070$604 and Rs. 14,480 :716$176, the import-tax on rubber ren- dering Rs. 14,602 :759$269, Rs. 14,701:894$955 and Rr. 9,518:- 716$267, or 76.69 per cent, 72.58 per cent and 65.73 per cent. ' The taxes charged by Para are 22 per cent ad valorem for Rubber “fina,” “entre-fina” and “sernamby,” and 15 per cent for whatever other kind. Besides those there is an additional tax of 2.5 per cent in benefit of the Santa Casa de Misericordia charged on the exportation taxes. These figures seem to show the importance for those States of questions concering the production and .consump- tion of the world’s rubber, and with greater reason still for Brazil as a whole. The ruin of one of the most promising regions on the face of the globe, the profound depreciation of Brazilian finances and the dreaded commercial crisis with which the coun- try would have to fight, would be the disastrous effect of the indifference of the Federal and States Governments on such a matter. But that, however, is not the attitude of those Govern- ments; they are decreeing various measures now in course of be- ing carried out and which after minute studies were judged nec- essary, so that Brazil might continue to maintain her proud po- sition of importance for the precious “black gold” (rubber) in the world’s market. RUBBER-CONSUMING MARKETS — COMPETITION OF OTHER RUBBER-PRODUCING COUNTRIES New York, Liverpool, London, Hamburg, Antwerp and Havre are at the present time, by their order of importance, the principal world’s markets for rubber. New York, by virtue of the extraordinary development of North American industries, which in a steadily increasing scale, are consuming constantly greater quantities of raw material, re- ceives almost half of the rubber produced in all the world. Nearly 60 per cent of the rubber negotiated in New York is Brazilian. After this follow Central America and Mexico; but as rubber proceeding from all parts appears in the New York market it is evident that there is no specialty in this business. Liverpool, perhaps due to the fact of its being the port to which the lines of navigation that run to and from the Amazon are directed, has become the European emporium for Brazilian rubber. In fact, 40 per cent of the Brazilian production is di- 40 rected towards that city. Liverpool also receives rubber of va- rious qualities proceeding from the English and other European possessions in equatorial Africa. The increasing production of the Oriental plantations finds in London one of its principal markets for the precious gum. Al- though rubber proceeding from different parts appears in the market, it may be affirmed without hesitation, that London is the special centre for cultivated refined rubber (plantation) which is easily explained by the fact that the owners of the ex- tensive plantations in the Malay States are nearly all of them London companies. Occidental and Oriental Africa, principally German Colonies, send to Hamburg the greater part of the rubber which is nego- tiated on that market. Brazil enters with about 20 per cent of the total amount of the business. Antwerp owes its rubber trade to the creation of the Congo Free State, whose production, now in decline, is practically all directed to this city. It also receives rubber from Brazil, and seeing that Belgian capital is employed in the Oriental planta- tions its future is promising. Havre, on the other hand, is of greater importance to Brazil; where 75 per cent of the transactions are in Brazilian rub- ber. It also imports the Congo species, as also those of some of the French Colonies in Africa. However, the great bulk of the production of these latter colonies is directed to Bordeaux. The methods of sale adopted in these markets, vary very much. From the slow old-fashioned process of sale by private treaty, to sales on time terms, passing through auctions and un- derwritings, in short all the commonly known modes of negotiat- ing are in use. The most important market, that of New York, adheres to the old-fashioned method of personal contracts for immediate de- livery, which certainly serves better the interests of buyers, than those of sellers; the agitation that was created round this ques- tion with a view to reform the market, gave no result whatso- ever. Liverpool presents us the polymorphic type. Private sales, and sales on a fixed day for delivery, or sales by auctions, all take place, consulting thereby the preferences of both sellers and buyers, and establishing the free course of the values. The same happens in London, where, however, the Plantation companies have initiated more advanced transactions, such as sales of crops in anticipation. Hamburg and Antwerp also practice sales by auction and on 41 delivery. However, in this latter the method of underwriting is that most in vogue and which among all the processes is the one that consults most the interest of the seller. This is carried out in the following manner: A broker advertises a certain quantity of rubber for sale, the particulars of which he supplies (name of seller, weight, quality, estimated price, etc.), about twenty days beforehand. On the day appointed, he receives the offers of pur- chase closed and sealed; these are then opened in a public place and the prices are inscribed on a schedule divided into columns, each one headed with the name of the house offering. Once this operation has finished, the rubber falls to the highest bidder. The seller has, however, the right to withdraw the goods in case the price that results does not satisfy him. The Antwerp market adopted this system with the view to competing against cognate markets. As the reducing of the ex- penses on the product, which corresponded to fcs. 2.60 per 100 Kilos, the same being frs. 4.93 and frs. 7.30 in Hamburg and Liv- erpool respectively, did not suffice, it endeavored to attract the seller by offering the most advantageous prices, and it seems that it has succeeded in its desideratum. Havre followed its example and it is greatly to be desired that all the rubber markets adopt the same system, not only for the reasons set forth, but also because it is a safe precaution against the manipulations of speculators. ; Brazil has always maintained its predominating position in the world’s market for rubber, not only as the greatest producer, but also as the producer of the best quality. In 182%, the first year about which statistical data exist, Brazil exported 31 tons of rubber; in 1837, 289 tons, or say an increase of 932 per cent; in 1847, 624 tons, or 216 per cent more; in 1857, 1,800 tons, which corresponds to an increase’ of 290 per cent; in 1867, 5,826 tons, or 322 per cent more; 1877, 9,215 tons, thus augmenting by 158 per cent; in 1887, 13,290 tons, or 144 per cent increase; in 1897, 21,256 tons, representing about 160 per cent more; and, finally, in 1907, 36,490 tons, or approximately an increase of 172 per cent. _ Within the last decade, that is to say, from 1902 to 1911 (vide statistical statements in fine), the exportation rose gradually to 28,631 tons in 1902 and to 39,026 tons in 1909, the maximum ever reached so far, to descend immediately to 38,546 tons in 1910 and 36,547 tons in 1911. : Brazil has so far not had any serious competition to fear. It is true that the other producing countries in Central America, South Africa and Asia, send a considerable quantity of rubber on to the market, but this does not affect the Brazilian trade, be- cause, besides being practically all of it of an inferior quality, 42 , -such extra supply is not sufficient to occasion the harmful effects of an overproduction. It is curious to observe, that even within the last decade, the production of those regions which in 1901 was 21,547 tons increased even so far as to surpass the produc- tion of Brazil in the year of 1905, reaching then 35,428 tons; but it diminished as rapidly as it had increased and in 1911 we see it reduced to 23,747 tons. This decrease cannot be attributed to the effects of competition, for instance to the plantations of the Orient, whose production commenced to accentuate itself exactly in the year of 1905 and henceforward. As a matter of fact, com- petition should bring forth a fall in prices, but however, on the contrary, such did not happen, the quotations reaching in the years of 1909 and 1910 such extremes as had never been seen in the rubber market.. It will be sufficient to point out, that the refined rubber of Para, which is the Standard regulating type of the market and whose average anual price has been 3, 4 and even 5 shillings, went up in those years to 12s/6 per pound. However, a new competitor did appear, which had to be taken into consideration, and which induced the Government of Brazil to adopt some measures tending to protect its great article of export. The considerable and methodical plantations of the hevea brasiliensis made in the peninsula of Malacca in Malasia and on the island of Ceylon, commenced to produce rubber, which it was predicted would within a few years, due to the enormous quantity produced at a low figure, get the mastery of the market. ; These plantations, the initial experiments of which date from the year of 1876, with 70,000 seeds sent from the Tapajoz river, an affluent of the Amazon, by Wickham to the Royal Bo- tanical Garden of Kew, have taken an enormous increment since the year 1896, till to-day, due to the results obtained which indicated beyond possible doubt the advantages of the cultivation of hevea, this in view of the constantly increasing price of the product and the new applications which day after day the rubber industry has opened up. The cultivated-plantation rubber, which appeared on the mar- ket with 5 tons in 1901, was represented by 646 tons five years later and at the end of another equal period, by 12,000 tons. It is estimated that if nothing unforeseen happens to the con- trary, its production in 1916 will be 70,000 tons, thus reaching the quantity which is at the present moment consumed each year by the necessities of the industry. It is believed that by that time the inferior qualities furnished by Africa, Central America and even by Brazil, will gradually have disappeared from the market. In order to meet the con- sumption which, if progression that hitherto has taken place, 43 continues, will then be of 98,603 tons, the production of Brazil and of the Orient together will surely render a quantity much su- perior to that demand. The average cost per Kilo of fine Para rubber in the valley of the Amazon is from 3$000 to 3$500; in India of 2$650; how- ever, this difference should disappear under the operation of the Rubber Defence Act, which is inserted further on, and the possible augmentation of the price in the Orient, where manual labor will become dearer later on when all its plantations are in full exploitation, and by the consequent scarc- ity of labor, against which agriculturists are already commencing to struggle. The industrial element still continues to give preference to the Brazilian rubber, this being better in quality, nerve and in elasticity—properties these which may probably be attributed to the process of curing, which is not employed in the Orient, or possibly to the meteorologic and climate conditions, the geolog- ical composition of the soil, etc. It is true that the quotation for planted rubber has been superior to that of wild rubber, but it is advisable not to. forget, that while the former shrinks only 3 per cent, and has a much better appearance, the latter loses 18 per cent of its weight. The price difference is thus amply explained and when accounts are made up it is still the fine quality from Para that is the better quoted. THE INDIA RUBBER PROBLEM—MEANS SUGGESTED AND RESOLVED BY THE STATES Threatened with losing the predominant position it has al- ways occupied in the rubber market of the world, Brazil could not, without committing an economical suicide, remain inactive. The time having come when native rubber would enter into competition with planted rubber, Brazil had to defend its inter- ests by becoming equipped for the struggle, making the cost of its product cheaper in order to ensure its occupying an advan- tageous position in the market. Many are the causes which at present contribute to the high cost of Brazilian rubber, but they may be united into three groups, as follows: Ist, expensive labour; 2nd, heavy transport tariffs; and 3rd, excessive export taxes. : The expensive labour is due to the scantiness of population in the Amazon valley, the want of foreign immigration to com- pensate it, and the high cost of food supplies. The rubber-producing trees (seringaes) of the Amazon are ex- 44 ploited by the natives, whose number is but small, and by the immigrants from the eastern States who, fleeing from the droughts which periodically befall those States and attracted by the liberal profits offered by the extraction of rubber, go there in thousands every year. This current of immigration is, how- ever, insufficient; a proper remedy for. such a state of things would perhaps be foreign labour which still keeps back from the North because it only knows it through garbled information. The bad food and the indifference for all that concerns health conditions, contribute every year to the invaliding of a con- siderable number of men. The extraction of India rubber being the occupation which pays best in the Amazon Valley, the pastoral industry, cattle- breeding and farming are altogether despised, so that all the arti- cles of subsistence needed by the population, either come from the South of Brazil, burdened by cost of a long transport, or from abroad overloaded with high Brazilian Customs duties. The heavy transport tariffs are due to the numerous difficulties of all sorts that thwart navigation in the affluents and sub-afflu- ents of the Amazon river and to the greediness of ship-owners, encouraged by the absence of competition. On the other hand, the existence of a complete river system has made the Brazilian Governments disregard the necessity of establishing railways which, by shortening distances, might bind the different affluents of the great river to each other. Finally, the excessive taxation imposed by the States of Ama- zonas and Para on its almost only product of exportation is a consequence of the special conditions of life in that Brazilian re- gion, which conditions we have just described. The Governmen- tal and administrative system requires large sums for its main- tenance, is unable to avail itself of any other sources of income because they hardly exist. The legislator has had to go on tax- ing the great product more and more. In order to cheapen the product, besides removing the causes which have just been shown, two other far-reaching measures have been suggested; the adoption of a process for coagulation of the latex which might decrease the production of inferior rub- bers, and planting on a big scale. : At the present moment the exportation of rubber from the Amazon is composed of 50 per cent of rubber “fina,” 10 per cent of “entre-fine,” 25 ‘per cent of “sernamby,” and 15 per cent of “caucho.” Now, any process that can do away with or might at least diminish the percentage of entrefina and sernamby would be a means of cheapening the rubber of finer quality (fina). es apply the same activity to produce 70 or 75 Kilos of “fina” ‘in- stead of 50 fina, 10 entrefina and 15 sernamby, is the | sau in 45 reality as obtaining the first quality at a very much lower price. Such is the desideratum of the process of Dr. Carlos de Cer- queira Pinto, a Brazilian doctor who has lived for a great num- ber of years among the rubber districts where he has made a most accurate study of the subject. The results hitherto at- tained are very satisfactory, the Government of Brazil having aided the inventor with a view to spreading his invention once its advantages have been definitely proven. At the same time, the process of extracting the rubber from trees disseminated in the interior of the forests at a considerable distance one tree from the other, is against all principles of econ- omy. The planting on a large scale, on the margin of the Amazon river, or of its big affluents, but in places of easy access, is an essential measure, especially seeing that the Government aims at maintaining for Brazil in future, the promi- nent position it now occupies in the trade. Therefore, whilst considering all the complex elements of the question thoroughly, a study had to be made of all the solutions presented. We shall now see what procedure was followed: In August, 1909, a Congress of seringueiros (rubber gath- erers), assembled in Acre with a view to studying and discuss- ing the situation of the rubber trade. In a message addressed to the President of the Republic at the closing of the proceedings, the members of the Congress suggested, as chief measures, easy communications, roads, railway lines, subventioned lines of steamers, colonization promoted by the Government and a. re- duction in the export duty. ; Later on, in the same year, the Para Government enacted Laws Nos. 1,100 and 1,109 of the 5th and 6th of November, both of which have great bearing on the solution of this most im- portant problem. The first of said laws gives authority, in article 1st, to the State Government, to enter into agreements with one or more native or foreign companies, in regard to the plantation and ex- ploitation of the seringueira (hevea brasiliensis) against the concession of the following favors: 'a. The concession of vacant lands up to twenty thousand hectares with proper demarkations for the Company’s plantings. b. Reduction in the export duty of planted rubber to the ex- tent of 50 per cent in the first 10 years as from the date of the first exportation; of 40 per cent in the second decade; of 30 per cent thenceforward until completion of twenty years. _ '_c. Reduction of 30 per cent in the tariffs of the Braganca railway and in the freights of the line of steamers subventioned by the State, during a term of twenty years, for planted rubber produced by the Company. 46 d. Transport free of charge by the Braganca railway and. steamers under the States’ subsidy of all machinery and plant belonging to the Company and intended for the installation of its establishments; and of whatever colonists the Company may place in its premises as well as of seeds, manure plants and cattle. e. An advance, by way of guaranteed interest, of 5 per cent per annum on the capital issued by the company holding the: concession to the extent of one-half of the paid up capital. Special paragraph.—This guarantee, whatsoever be the Com- pany’s capital, shall not be paid on a sum exceeding £400,000 Sterling over and above £800,000 Sterling, or its equivalent in paper money. The advances, by way of guaranteed interest, thus conceded, will be discontinued once the Company’s profits attain 6 per cent, and on exceeding 7 per cent the Company will start amor- tizing the sums loaned by the State to the extent of 5 per cent. on the total sum advanced. The concession of lands available will be made by way of emphyteusis for 99 years. The Statutes will have to be approved by the Government, who will name one of the Company’s Directors and retain cer- tain rights with a view to the due enforcement of the contract. Article Second of the Law describes the Company’s obliga- tions, which are as follows: “First. To plant at least twenty thousand rubber trees per year. Second. To carry out instructions from the Agriculture De- partment of the State in the planting. Third. To maintain a rural elementary school, with accom- modation for the shelter of at least twenty destitute children, and a field of practical tuition of mechanical agriculture, experi- mental cultivation of tropical plants, experiments in manure, etc. -Fourth. Accessory planting of rice, maize, haricot beans, aie, improving the quality of same by mechanical means. Fifth. Furnish accurate yearly statistics of the number of plantations made, their state and the general production of rub- ber and other articles. Sixth. Use on the bags, boxes and other receptacles con- taining the goods produced, a trade-mark duly registered at the Board of Trade as prescribed by law. -Seventh.: Allow the Government to control all the work carried out by the Company in such manner as the Government may think fit. ‘Complimentary to the former, the Law of November 6th concedes prizes and other favors to the agriculturists of the’ 4% State, who, by themselves or associations formed by them, should fulfil the conditions set forth in same. The prizes are of five hundred mil réis for each plot of five hundred rubber trees properly planted; the favors consist of the distribution free of charge of chemical manure, seeds, plants, instructions and agricultural monographs, gratuitous tuition to all the laborer-planters, transport free by the Braganga Railway and steamers subsidized by the State, reduction of export duties, etc. Lastly, Law No. 1,115, of the 8th November, 1909, affords protection to the rubber trees that are actually yielding, with a view to improving their production. Article First authorizes the Government of the State to fur- ther the defence of the rubber industry as regards the latex and preparation of rubber, in order to prevent the destruction of the trees existing in the State, punishment being dealt to whomso- ever manufactures the product by subversive means. Article second provides a prize of 50 contos of réis paper money at most, to be awarded at the Government’s discretion, to the discoverer or inventor of some process of manufacturing or preparing rubber, which may afford undeniable advantages as regards its manufacture and reduces the inferior classes to a single standard of rubber “fina,” ensuring a high price for the article. The State of Amazonas also, as per Law No. 675 of May 20, 1911, authorizes the Executive Power to concede any advisable favors to individuals or undertakings that may bind themselves: to put up in Manaos factories for refinement of rubber by means of new and improved methods; so as to obtain a standard class of rubber for exportation. The Commercial, Industrial and Agricultural Congress held at Manaos in February, 1910, resolved in its final conclusions to recommend to the Brazilian Government and the immediate neighboring Republics, the reforming of their freights, especially as regards the food supplies; grant favors to navigation; free rivers from obstructions; construct railways; create colonial centres; admit of the pressing and absolute ‘necessity to plant rubber trees in the Amazon valley and open new fields of planta- tion; suggests the establishment of permanent exhibitions of a highly. educational character; advises the rubber extractors not to give up the process of curing by smoke and condemns entirely the use of acids or alum in the coagulation, and calls attention to the question of the commercial classes of rubber which should be properly defined. Going into details it requests numerous favors for the agriculturists that may go in for planting hevéa rubber trees; cacao and cereals, cotton and other products, and 48 that prizes be granted to cattle breeders, experimental fields be opened, as also laboratories of analysis and a service be estab- lished for dealing with the yellow fever and paludinous fevers, etc. Such an important matter could not be solved by half- measures; it was necessary and even indispensable to adopt a plan embracing all the solutions suggested and proclaimed as being elements of success, thus obtaining a united plan entailing some complexity in its execution, it is true, yet clear and simple in its combined purposes. And this desideratum was achieved by the Feredal Law No. 2,543 A of the fifth of January, 1912. MEASURES ADOPTED BY THE FEDERAL GOV- ERNMENT—RIO DE JANEIRO CONGRESS OF RUBBER—REGULATIONS OF THE NEW RUBBER DEFENSE ACT For a long time back the attention of the Brizilian Govern- ment has been drawn to the necessity of adopting a plan of de- fence for India rubber, which might solve in a practical and decisive manner the so-long-debated “problem of the North.” In August, 1911, the Minister of Agriculture, after a close study, made with the aid of specialists and persons having full knowledge of that region of the country, drew up.a project in the above sense and, recognizing the necessity of still hearing those who are most directly interested in the matter, convened a meeting of representatives of the State Governments, Com- mercial Associations and other Institutions which might lead to a perfect understanding of what was most advisable to do. The first meeting was held on August 14, and the Govern- ment’s plan was hailed with great applause, the same being approved, with slight alterations, in the last session which took place on the twenty-second of the same month. By Message of September 14, 1911, Marshal Hermes da Fonseca, President of the Republic, sent to the National Con- gress for approval, the plan duly elaborated; after being care- fully studied ‘by Congress it was approved and ‘converted into Law, under No. 2,543 A and was sanctioned on January 5; 1912. On April 17, 1912, Decree No. 9,521 was enacted with the Regulation for carrying out the meastires and’ services provided for in the law. of’ January. The measures and services prescribed by Law No. 2,543 A 49 of January, 1912, for the economic defence of rubber, regulated by Decree No. 9,521 of April 17, 1912, are as follows: I. To encourage the rubber extractor and the culivator of: the principal rubber-producing trees. II. To form industries for the refinement and manufacture of rubber articles. III. To aid immigrants, both from the country and those who have recently arrived from abroad, and the workmen already established in the Amazon valley. IV. To render transport easy and decrease the cost in the Amazon valley. : V. To install productive centres of food supplies in the Amazon valley. VI. To hold three-yearly exhibitions in Rio de Janeiro, com- prehending all that relates to the rubber industry of the country. : The measures contained in the law in regard to making agree- ments with the States which produce rubber “seringa,” with a view to decreasing the export duties and protecting the rubber trade, will be dealt with separately, and with regard to the defi- nition and legalization of freeholds in the Federal Territory in Acre and the revision and consolidation of regulations concern- ing the coasting service of steamers (included in No, IV) special By-Laws will be drawn up which shall be published in due’ course. The measures in reference to the first group and whose object is to encourage the extracting industry and plantation of the principal rubber producing trees are: First; reduction of the cost of tools and matérials employed in the rubber trade; second, granting of prizes in money to the planters of the principal rub- ber trees; third, installation of experimental stations for the culti- vation of rubber. : For the reduction in the cost of utensils and materials, free entrance is granted with exemption from any import duties, ‘as well as to everything intended for the cultivation of thé seringueira, caucho, manicoba and mangabeira and the gather- ing-in and improving of rubber extracted’ from those trees; whether as regards the extracting industry or the plantation work. haa | . ‘These pecuniary premiums for encouraging the industry, will be conceded to all those who plant entirely anew, or who devote themselves to replanting; in the first case and for evety group. of 12 hectares, the premiums will be Rs.2¢500$000 ‘when: the planting is of “seringueira”; Rs. 1:500$000''when ‘it treats of “caucho” or “manicoba”; and 900$000 when ‘it is mangabeira; in 50 the second case and for every group of 25 hectares the premiums will be 2:000$000, 1:000$000 and 720$000 respectively. The minimum number of trees for the new plantations will be 250 per hectare for the seringueira and caucho, and 400 for the mani- coba and mangabeira; in the case of re-planting, the distance to keep between the trees should be from 6 metres to 6m50 for the first mentioned case and 5 metres for the second. In order to obtain the payment of the premium, it is requisite that the trees be well cared for, and that not more than 15 per cent. are damaged or useless. The subsidiary cultivation of alimentitious plants or of those useful for industrial purposes, will secure an annual gratuity corresponding to 5 per cent. of the value of the principal premium. For the cultivation of the seringueira, experimental stations will be localized in the Territory of the Acre, and in the States of Matto Grosso, Amazonas, Para, Maranhao, Piauhy and Bahia and for the growing of the manicoba conjointly with that of the mangabeira in the States of Piauhy, Ceara Pernambuco, Bahia, Minas Geraes, S. Paulo, Goyaz, Parana and Matto Grosso. Each station will have an area of from 80 to 100 hectares, the land selected having to be suited to the climatic and agro- ‘logical conditions exacted by the nature or quality of the plant to be cultivated. Besides the grounds for experimental cultivation, each station will possess laboratories of vegetable physiology for the testing of seeds and phytopathology, of agricultural entomology ; of agricultural vegetable chemistry and bromotology and of micropiology and technology; an agricultural and woodlands museum; a gallery of machines and a meteorological post. Thus it will be properly equipped in order to serve those who may consult it upon any matter whatsoever, within the scope of its competency, carry out the analysis of manures and other chemical fertilizers, plants and waters, distribute plants and selected seeds, study the diseases common to growing plants and the means of combatting them, making com- monly known by means of the publication of an official bulletin which will be distributed gratuitously to all interested parties, the results obtained relative to the most practical and economical means of carrying out the cultivation of rubber, the best means of bettering its condition, its preservation, the packing of the products, etc. In order to stimulate the creation in Brazil of the industries for refining and manufacturing all kinds of articles made of rubber, monetary premiums will be instituted as well as exemp- 51 tion from taxes, the right of disappropriation for private in- dividuals, that may be necessary for the installation and mount- ing of factories and the preference of the Government will be granted for such articles, which each factory produces, when supplies are made to the army and to the navy, as well as to other public departments. The premiums will be as high as 400:000$000 for the first tactory tor the refining of seringa rubber that may be established in each of the cities of Belém and Manaos; up to 100 :000$000 for the first rubber-refining factory of “manicoba” and of manga- beira, which may be installed in each one of the States of Piauhy, Ceara, Rio Grande do Norte, Pernambuco, Bahia, Minas Geraes and Sao Paulo; and finally of 500 :000$000 for the first factory of rubber-made articles, which is inaugurated in Manaos, Belém, Recife, Bahia and Rio de Janeiro. The exemption from import duties embraces the rights of importation for the materials, machinery, utensils and the neces- sary tools for the construction and mounting of the factory and the chemical substances, textile articles and divers materials, combustibles and iubricants indispensable for the up-keep and working of the factory during the time-term of 25 years; and immunity from the State and Municipal taxes for the time term of the contract by reason of the factory being considered a Federal Service. The premium in cash shall only be considered when the capital of the factory is equivalent to 4 times its value. The payment of such premium will be effected immediately after the inauguration of the factory. The problem of assisting immigrants both national and foreign, who may have just arrived and the laborers established in the valley of the Amazon, is met by the installation of emi- grant-hotels in Belém, in Manaos and in the Territory of the Acre, by the construction of hospitals in the Interior and by the creation of agricultural colonies adjacent to such hospitals. The hotels for the reception of immigrants shall follow the rule and be guided in their installation by that of the Ilha das Flores in Rio de Janeiro, that latter being considered a Model Institution, at the same time the modifications exacted by the conditions of each particular case, that of Belém having sufficient capacity to accommodate 1.500 immigrants; that of Manados 1,200 and that of Acre 800. Close to each of these immigrant- quarters, a store-house will be erected which shall contain all kinds of special tools and utensils employed in the India rubber industry, the which will be sold to the immigrants, who desire to buy them at strictly cost price.. The families of both national and foreign immigrants who do 52 not expressly declare that they prefer another destination will be sent to the National Fazendas (ranches) of the Rio Branco, where they will be located and distributed among the different colonial centres in the different colonies. The hospitals in the Interior are created with a view of pro- viding the inhabitants of the Amazon valley with a centre to which they may have recourse and where they may be treated, acquire medicine and protect themselves against contagious dis- eases. .The points selected for these are Boa Vista of the Rio Branco, S. Gabriel on the Rio Negro, Teffé or Fonte Boa on the river Solimées, Sao Felippe on the river Jurua, Bocca do Acre on the Rio Purtis, at the confluence of the river Arinos with the Juruéna, in the Alto Tapajéz, Conceicao of the river Araguaya, and Montenegro on the Amapa. Each hospital will have accommodation for 100 sick people and will be divided into 5 pavillions, one of these latter being constructed with all the requisites necessary for the isolation of infectious diseases; there will also be a disinfecting house, a laboratory for chemical and microbiologic diagnosis, rooms for surgical operations and for autopsies, consulting rooms and pharmacy. Thére will also be a service of propaganda of the habits and hygienic measures necessary for the laborers who work and live in the Amazonian valley. Adjoining each hospital, agricultural centres will be founded wherein to localize 100 families at the least, these agricultural centres will have for their object the production of the alimenticiary products necessary for the supply of the said hospitals, the cultivation and extensive breeding of the plants and animals consumed as food by the neighboring population located all around, and the constitution of fixed centres of popu- lation which shall help towards the increased peopling of the region. The Government will assist the emigrants in the acquiring of lands and shall furnish them with food stuffs at a low price and their maintenance during the initial period. Amongst the improvements and means tending to facilitate transport and diminish its cost in the valley of the Amazon, the construction of systems of railways and the betterment of the navigability of the rivers most peopled, is of gréat importance. The network of iron roads will be of two different categories: systems of great lines forming an integral part of the general Federal system of railroads and a network of economic narrow- gauged railways having the character simply of penetration lines. Belonging to the first of these categories the following net- 53 works will be commenced at once, and constructed within the shortest space of time possible: 1° starting from Belém de Para and joining onto the general railway system in Pirapdra, Minas Geraes and in Coroata, in Maranhio, with the necessary branches to connect the initial or terminal point of navigation on the rivers Araguaya, Tocantins, Parnahyba and S. Francisco; 2° starting point from the Madeira e Marmoré Railway in the proximity of the mouth of the Abufia, passing by the town of Rio Branco and by the most appropriate point between Senna Madueira and Catay and terminating in the town of ’Thauma- turgo, with branch line right up to the frontier of Peru, along the valley of the river Purus. The construction and renting out of these railways will be done in competition by Public Tender. The concession for the railways of the second category shall only be made to those who undertake to colonize and ex- ploit in proportion as that may be justified, the respective marginal lands, i.e., the land lying along each side of such said lines. The Government will concede a subsidy of 25:000$000 per kilometre constructed; the technical conditions are: a line of the Decauville portatil, the weight of the rails being 50 kilos per metre, with a gauge of 0.60 between the rails and the minimum radius of the curve 40 meters inclination 0.10 and weight of the locomotives in full working order, 18 to 20 tons. By way of experiment the Governments will bring about at once, the construction of 2 economic railway systems, 1° starting from Antiga Sauzel on the left bank of the river Xingtt and going up the valley as far as the river Careahy, with a branch leading to the river Tapajoz, whose valley it will follow until the river S. Manoel and with other sub-branches; 2° starting from the con- fluent of the Rio Negro with the Rio Branco and following the valleys of Seruiny and the Caratimani passing over the water- shed and going on until it terminates in the Alto Uraricoera, with 2 branches, the one for the Alto Paduary and the other for the town of Boa Vista. The necessary improvements to be made towards effecting the navigability of the rivers at all seasons of the year, by steamers drawing up to 3 feet of water, of the Rio Negro, be- tween S. Isabel and Cucuhy, on the Rio Branco from its mouth as far as S. Joaquim; of the river Purts between Hiutanaha and Senna Madureira, and of the river Acre from its mouth as far as Riosinho de Pedras, will be contracted for by public-tender or by some public company which can prove itself sufficiently capable for the carrying out of the same. The maximum time- term for the termination of the improvements will be 7 years. As supplementary measures, the exemption from taxes is 54 conceded to the floating material of whatever kind destined to fluvial navigation in the valley of the Amazon and floating depots for the supply of coal and oil-fuel will be established at different points of the river Amazon, its affluents and sub- affluents. The establishment of these depots and the business of sup- plying the combustibles will be done by signed contract, with the Minister of Agriculture, after the competition by public- tender, the concessioner enjoys besides other favors, exemption from import-duties for the floating material and for the com- bustible material imported as also full exemption from all State and Municipal taxes by reason of the object of his contract being considered a federal public service. The creation of centres for producing food-stuffs in the valley of the Amazon being held as an element of the greatest urgency towards the successful issue of the plan elaborated, is assured by the following series of administrative measures: 1°, the rent- ing out of the 2 national ranches on the Rio Branco, that of S. Bento and that of S. Marcus, to a public Company or under-tak- ing which agrees to open up, and practice cattle-breeding of different kinds on a large scale and the cultivation of cereals commonly used as aliments, the establishment of-a curing estab- lishment for preparing dry meat, known as xharque and a factory of alimenticiary conserved goods, a dairy establishment, a rice- mill and 2 mandioca grinding-mills. The company in question will take charge of and localize the emigrants who desire to be placed upon the lands belonging to the said ranches in accord- ance with the Federal laws regulating such matters. The favors of exemption from duties for the imported material necessary to the mounting of the fazenda or ranch and the in- stallation of the mills and factories will be conceded, as also for the stud-cattle and seeds imported and for the chemical manures and all materials necessary for the factories and for the cultivation during the whole of the time of the contract. They shall also enjoy the right to disappropriate for public utility and shall have preference for the contract to carry out the necessary works and improvements in the navigation of the Rio Branco. The colonization of the lands of the “fazenda” of SAo Marcus situated between the rivers Mahu, Takuti, Surumt and Cotingo on the frontier of British Guyana, will be made directly by the Ministry of Agriculture. 2° Premiums and favors will be con- 55 ceded. to whomsoever may found great ranches for cattle breeding and for great agricultural purposes in territory of the Acre (between Rio Branco and Xapury), in the State of Ama- zonas (in the region of the Autaz), in the State of Para (in the Island of Marajé), or in other more convenient point of the lower Amazon. These premiums are of 30:000$000 per group of 1,000 hectares of artificial pastures, planted and fenced round, of 100 :000$000 per group of 1,000 hectares of lands effectively cultivated with rice, black haricot beans, Indian-corn and mandioca, and 100:- 000$000 per group of 500 tons of manufactured goods, of dairy produce and of preserved meat and xarque, which may have been produced within a time-space of 5 years. The favors are those of exemption from import duties for everything whatsoever that may be necessary to the proper in- stallation and maintenance of the fazenda or ranch during 5 years. 3° Concession of favors to a fishing company or under- taking, that shall be established either in Belém or in Manaos, for exercising that industry and all subsidiary industries con- nected therewith on a large scale on the rivers of Amazonia, The favors consist of the entry free from import duties for all the material belonging to the company as also for all the fittings of steamers and other floating material and factories that may be necessary during the first 15 years, encouragement premiums of 10:000$000 during 5 consecutive years in the event of the pro- duction of fish either preserved or salted being maintained at a figure above 100 tons; the right of disappropriation for public utility of the lands or buildings that may be necessary for the undertaking, the exemption from state and municipal taxes. Recognizing the utility of periodical expositions which are held as centres of special studies, producing practical results by the sum of knowledge which may be derived from them, 3 yearly expositions shall be held in Rio de Janeiro, which shall embrace all and everything which has relation to the rubber-industry. 56 THE COMMENCEMENT OF THE WORK—THE EXPOSITION OF RUBBER IN RIO DE JANEIRO IN THE MONTH OF MAY, 1913 The Superintendence Department of the Rubber-Defence, a provisional Department of the Ministry of Agriculture, Industry and Commerce on which is incumbent the direction and fiscaliz- ing of all the services comprised under the Law No. 2548 of the fifth of January of 1912, has already initiated its works, under- taking the execution of the following measures. 1. Resolution to hold a National Rubber Exhibition in Rio de Janeiro, opening on the thirteenth of May of 1913. - 2. Installation of experimental stations, 7 centres for the cultivation of the seringueira (Acre, Amazonas, Para, Maranhao, Piauhy, Bahia and Matto Grosso), and 6 for the cultivation of manigoba and mangabeira (Piauhy, Ceara, Pernambuco, Bahia, Minas Geraes and Sao Paulo). 8. Studies in the valley of the Amazon, in the basins of the rivers Negro, Solimées, Jurua, Purtis, Tapajoz and Araguaya, and in the territory of: ‘Amapa for the establishment of interior hospitals surrounded by small agricultural colonies. 4, Preliminary services for the construction of 4 of those hospitals situated respectively in Teffé or Fonte Boa on the river Solimées in S. Felippe on the river Jurua, in Bocca do Acre and in Montenegro of the Amapa. 5. Drawing up of the plan and inventory of the cattle and buildings in the part to rent out of the National fazendas of the Rio Branco; idem of the part to be colonized by the Govern- ment and projects of the colonial centres model farm for cattle-breeding, horse and mule-raising, radiographic stations, etc. 6. Laying of a Decauville line of railway along the rapids of the Rio Branco, in order to secure prompt communication- with.the national ranches, which are to be let out. %, Construction by contract or by administration of 3. dwelling quarters for immigrants in - nae Acre, in Manaos and in Belém. . The rubber exposition hich is to take place in Rio de Janeiro, 1 every 3 years, will have for its object to show the triennial balance of rubber in its various modalities, comparing it with the situation of the same industry in other countries. The first ‘exhibition will be inaugutated on the thirteenth of May of the coming year and will be divided into four sections; 57, V’The cultivation; 2°extraction ; 3° improvement; 4° manufacture of articles. The sections will be divided into groups and classes com- prising the native or cultivated plants, machinery, utensils, processes, commercial types, studies and statistics. Encouragement premiums will be conferred for the best pro- cesses of cultivation, extraction and preparing and for. the objects best manufactured, whether of raw material constituting, trade types for exportation or as manufactured articles. The sale of machinery, utensils and rubber articles and prod-. ucts of all kinds will be provided for against payment of a small percentage, fixed by the organizing commission. Foreign products may be admitted to the exhibition, but without having the right to a premium. They will enjoy’ full custom-house freedom from import-duty, but should they be sold they shall pay the respective import-duty on the occasion of their being handed over to the buyers. The re-exportation of the products. not sold will run for account of the exhibitor. Lectures upon the rubber-industry will be given during the Exhibition-Congress. The Commission which will carry out the Exposition of the. thirteenth of May, is constituted by their-Excellencies Senhores Drs. Pedro de Toledo, Minister of Agriculture, Industry. and. Commerce, Raymondo Pereira da Silva, Superintendent of the Rubber-Defence Department, Miguel Calmon du Pin e Almeida,. Representative of the National Agricultural Society, Jorge Street, President of the Centro Industrial of Brazil, Julho: Furtado, Inspector of Forests, Gardens, Tree-planting, Hunt- ing and Fishing of the Federal District. Representative of the. Municipal Prefecture and Candido Mendes de Almeida, Director of the Commercial Museum of Rio de Janeiro, Secretary Gerieral. The site chosen for the exposition is in the Quinta de Boa Vista, perhaps the most beautiful park of Rio de Janeiro. : ‘The preparatory works, such as the ground-leveling, laying- out of gardens, adoption of pavillions already existing, etc., is now already in full course of being carried out. The opportuneness of this event, the interest evinced in it by the South and North and the United forces of the Institu- tions that form the organizing commission, will secure a very. considerable number of exhibitors. The month of May, one of the pleasantest months as regards temperature in Rio de Janeiro, is the season chosen by those who desire to visit the beautiful capital and thus the gathering of visitors to the exhibition will certainly be notable. _ Thus appears certain the most brilliant success for the Rub- ber Exhibition of Rio de Janeiro. 58 RUBBER EXPORTERS ESTADO DO AMAZONAS—MANAOS A. Santos Cardoso Ahlers & Co. Armazens Andresen Albert H. Alden, Limited Barbosa Tocantins De Lagotellerie & Co. E. Kingdon & Co. Gruner & Co. Gordon & Co. J. G. Araujo J. H, Barros Leite & Co. Mesquita & Co. R. Suarez & Co. Semper & Co. Scholtz Hartze & Co. Theodor Livy & Co. ESTADO DO PARA A. Meirelles & Co. A. de la Reviere & Co. Alves Braga & Co. Adelbert H. Alden, Ltd. A. A. Antunes & Co. Barboza & Tocantins Braga Sobrinho & Co. Coutinho & Co. Candido José Rodrigues De Lagotellerie & Co. E. Pinto Alves & Co. Gumer & Co. Gordon & Co. Guilherme Augusto de Mendonga I. Serfaty & Co. Jeronymo C. Botelho José Furtado de Mendonga J. Marques Braga Leite & Co. Mello & Co. Pereira Bessa & Co. Pires Teixeira & Co. Pinho & Costa Pereira Lemos & Co. Raymundo Vieira Lima Rocha Silva & Co. R. Ahlers & Co. R. Suarez & Co. Santos Amaral & Co. Cunock Schrader & Co. D. Costa & Co. H. A. Astlett & Co. J. Marques Neale & Staats Sluglehurst Brocklehurst & Co. Boulevard da Republica 34 Boulevard da Republica 32 Rua da Industria 27 e 29 Rua 13 de Maio 21 e 23 Caixa do Correio 353 Rua Senador Manoel Barata Boulevard da Republica 24 Rua da Industria 43 Travessa Campos Salles Boulevard da Republica 37 Rua 15 de Novembro 30 Travessa Marquez de Pombal 8 Rua 13 de Maio 46 Rua da Industria 59 Boulevard da Republica 36 Boulevard da Republica 25. Praca Visconde Rio Branco 20 Boulevard da Republica 7 Praga Visconde do Rio Brance Rua da Industria 5 ESTADO DA BAHIA—S. SALVADOR Ulmann & Co. Rua das Princezas 12 F. Benn & Co. F. Steverson & Co. Hesse & Co. Hirsch, Hes & Co. Caes do Ouro 27 L. Costa & Co. Caixa do Correio 133 Ottens & Co. Rosbach Brazil Company Rua Corpo Santo S. S. Schindler ESTADO DO MARANHAO-—S. LUIZ Jorge & Santos Joaquim Julio Correia & Co. Rua da Estrella 25 Francisco Freitas & Co. Oliveira Neves & Co. Currha Santos & Co. Rua Portugal 28 ESTADO DE MATTO GROSSO—CUYABA Almeida & Co. Alexandre Ador & Co. Figueiredo & Oliveira Lucas Borges & Co. Orlando Irmaos & Co. Ponce Azevedo & Co. CORUMBA. Yosetti & Co. Pereira Sobrinho & Co. Wanderley Bais & Co. Pasques Fillio & Co. S. LUIZ DE CACERES Benedicto R. Villas Boas Joao Campos Vidal José Dulce & Co. Manoel Pedroso da Silva Bouden 60 MINISTERIUM OF AGRICULTURE, INDUSTRY AND COMMERCE BRAZIL FEDERAL LAW AND REGULATIONS COVERING THE PROTECTION AND DEVELOPMENT OF THE RUBBER INDUSTRY IN BRAZIL Decree No. 2,542A of jasiny 5, 1912 and Decree No. 9,521 of April 17, 1912 PUBLISHED BY THE BRAZILIAN COMMISSIONER 4 THIRD INTERNATIONAL RUBBER AND ALLIED TRADES EXHIBITION NEW YORK, 1912 61 HEVEA BRASILIENSIS. 62 ACT OF CONGRESS Decree No. 2542A of January 5, 1912 Establishing measures destined to facilitate and develop the culture of rubber, Caucho, Manicoba and Mangabeira, and the ‘gathering and treatment of the rubber extracted from these trees, and authorizing the executive power not only to open the credits necessary to carry out these measures, but also to contract such loans as may be necessary for that purpose. The President of the Republic of the United States of Brazil: _ Hereby makes known that the National Congress decreed and I hereby sanction the following resolution: Art. 1—All utensils and materials destined for the culture of rubber (seringueira), Caucho, Manicgoba and Mangebeira and for the collecting or treatment of rubber extracted from these trees, whether for the purpose of extracting or experimenting, shall be admitted free of all custom house duties, including fees. Only Section—This exemption will have to be requisitioned of the inspectors at custom houses, who will grant it without delay after verifying the right of those seeking this favor. Art. 2.—Premiums will be granted to those who start regular and entirely new plantations of Seringueira, Caucho, Manigoba or Mangabeira, or replant old forests of Seringueira, Caucho, Mani- coba or Mangabeira, as soon as the plantation has taken place, and will be paid on the following conditions: — (a) For groups of 12 hectares (about 30 acres) of new culture, 2,500 milreis if seringueira; 1,500 milreis if caucho or manigoba; 900 milreis if mangabeira. (b) For groups of 25 hectares, the replanting of native serin- gueira, caucho, manigoba or mangabeira, 2,000 milreis; for the first, 1,000 milreis; for the second and third, and 720 milreis for ‘the fourth kind. *- Section 1. These premiums will be payable one year before the first gathering, when it is shown that the ground is entirely cultivated and the trees well cared for. Sec. 2. An increase of 5 per cent will be given annually in addition to the premium offered planters of seringa rubber (to count from the beginning of the planting), who prove that they have cultivated between the rows in all the ground planted, plants of alimentation or of industrial use. _ “ ... Art. 38. The Government will establish, at a selected con- venient point, an‘experimental station, or field: for demonstrating 63 the culture of seringueira in the Territory of Acre, in each of the States of Matto Grosso, Amazonas, Para, Maranhao, Piauhy and Bahia, and for the culture of manicoba jointly with mangabeira, in each of the States of Piauhy, Ceara, Rio Grande do Norte, or Pernambuco, Bahia, Minas Geraes, Sao Paulo, Goyaz, Parana and Matto Grosso. These stations will furnish gratuitously, selected seed to all those interested, also instructions as to the most practical and economic methods of culture and will supply information con- cerning general results, which will be verified at the end of each year. Art. 4.—In addition to the indirect favors which are men- tioned in Art. 1 and others which may seem reasonable and neces- sary, the Government will grant the right of premiums of en- couragement, up to the sum of 400,000 milreis to the first plant established for refining the seringa rubber, that reduces the dif- ferent qualities to a uniform type and superior to that exported and which may be established in each of the cities of Belem (Para), and Manaos; up to 100,000 milreis to the first refining plant of manicgoba and mangabeira rubber, that accomplishes the same putpose and is established in each of the States of Piauhy; Ceara, Rio Grande do Norte, Pernambuco, Bahia, Minas Geraes and Sao Paulo; and up to 500,000 milreis to the first fac- ‘tory of rubber articles which shall be established in Manaos, Belem (para), Recife (Pernambuco), Bahia and Rio de Janeiro, Only Section.—In order to have the right to the benefit of the above article it is necessary for the factory to have actually employed a capital four times as great as the value of the premium. Art. 5.—The Government will put up three buildings to house immigrants, to be of sufficient capacity’ and internally arranged, the same as those on Flores Island. In Belem,-Manaos, at an appropriate place in the Territory of Acre; and also at places in the Valley of the Amazon, where they are considered to be the most necessary, hospitals are to be erected, surrounded by small agricultural colonies where the sick can be received for treatment, be vaccinated gratuitously, and where medicines of the first quality are kept for sale, especially sulphate of quinine. Pamph- lets containing suggestions about hygiene, prevention of the diseases of that’ region ‘and the practical remedies to use in the absence of a pliysician, will be distributed freely. The superinteridence of these stations will be maintained by the Federal Government, but the hospitals will be entrusted to professionals of recognized ability, under a subvention or other favors, which the Government considers reasonable and rules will be énforced which will secure their proper regulation. 64 “SERINGUEIRA” HEVEA BRASILIENSIS. MULL, ARG. (11). Art. 6—For the purpose of facilitating transportation and reducing its cost in the valley of the Amazon, the Government will cause to be made, as soon as possible, the following im- provements: 1. The construction by the Government of narrow gauge railroads along the Rivers Xingu, Tapajés and others in Para, Matto Grosso, and of the Rio Negro and Rio Branco and others in Amazonas, through the valleys through which they flow, in accordance with the authorization of Congress, Law No. 1,126, December 18, 1908, at the price fixed per kilometer, according to the difficulties of the region, at the discretion of the Govern- ment. In case the State of Para and Amazonas should contract for the construction of some of these railroads, the Federal Govern- ment for the more rapid completion of the work will concede an increase of 15 contos per kilometer. 2. The construction of a railroad, which, parting at a conveni- ent point of the Madeira-Marmoré Railroad, near the mouth of the River Abuna, passes by the village Rio Branco, and at a point between Senna Madureira and Caty, and terminates in the village Thaumaturgo, with a branch to the frontier of Peru, by the valley of the Purts River. The construction of this road shall be in accordance with the provisions of Law No. 1,126, of December 13, 1903. As soon as the first section of the trunk line is inaugurated to the village of Rio Branco, the Government will install a custom house at Porto Velho on the Madeira River and announce this port open to commerce with friendly nations. 3. Construction of a railroad starting at the port of Belem of Para and joining the net work of railroads of Central Brazil at Pirapora, in the State of Minas Geraes, and of Northern Brazil at Coroata, in the State of Maranhao, with the necessary branch lines to join the initial points or terminals of navigation on the Rivers Araguaya, Tocantins, Parnahyba and S. Francisco. The railroad shall be built according to the provisions of Law No. 1,126, December 13, 1903, and shall be leased by public competi- tion. 4. The execution of the works necessary for the effective navigation, at any season of the year, of steamers drawing three feet of water; on the Rio Negro, between Santa Isabel and Cucuhy ; on the Rio Branco, from its mouth to Fort S. Joaquim; on the River Purus, from Hyutanahan to Senna Madureira; on the River Acre from its mouth to Riosinho das Pedras. The Government may contract for the execution of these works by public competition, or independent of competition, with one or more individuals or firms offering sufficient guaranty, 66 applying the provisions established by the decree, No. 6,368, Feb- ruary 14, 1907, or others, which will not impose greater burdens, and which may be more economic. Art. 7For the same purpose as mentioned in the previous article, all vessels of any kind destined for river navigation, are declared exempt from all custom house duties, including fees, revision, rates. Art. 8.—The Government will grant the same exemption in addition to the indirect favors found convenient, to the contractor who will bind himself at a public competition, to establish coal depots at points in the valley of the Amazon previously indicated, and to supply steamers and launches with fuel at prices approved by the Government. Art. 9—The Government will promote and aid the production of food stuffs in the valley of the Amazon through the following measures, or others which may be found convenient and promise satisfactory results. 1. The leasing of two of the National Reservations on the Rio Branco, at a public auction or private competition to a reliable concern, which binds itself to develop on a large scale, the breed- ing of cattle of improved types, the production of cereals, and other foodstuffs, to establish packing houses, dairies, rice-shelling mills, flour and mandiok mills, etc. 2. Direct colonization, through the Federal Government, on lands still belonging to the Union, on the S. Marcos Reservation, situated between the Rivers Mahu, Tacutt, Surumt and Cotingo, with native families of farmers and stock-farmers, with a view of developing and inereasing the production of foodstuffs, as well as horses and mules. 3. Concession to concerns which propose to establish large plantations or colonies under the above mentioned conditions, one in the Territory of Acre (between the Rio Branco and Xar- pury), one in the State of Amazonas (in the region of the Autaz River), and one in the State of Para (on the island of Marajé or other point more convenient on the lower Amazon), granting them the following favors: (a) Exemption from all import duties, including fees, for all material imported, necessary for establishing the plantation, in- cluding buildings, corrals, pastures, fences, watering places, agri- cultural implements and machines for the cultivation, harvesting and treatment of cereals, the installation of factories treating dairy produce and packing houses, as well as cattle and seed which may be imported during the first five years after the plan- tation is started. (b) Premiums of 30,000 milreis for lots of 1,000 hectares of cultivated pasture, planted and conveniently fenced, and of 100,- 67 000 milreis for lots of 1,000 hectares of improved land for farm- ing and actually planted with rice, beans, corn or mandioca. (c) A premium of 100,000 milreis for lots of 500 tons of pro- ducts made from milk, packed meats and dried beef, which were produced within five years. 4, Exemption from all import duties, including that of fees, for the vessels, instruments, machinery, drugs and ingredients necessary for the installation and working, for a period of 15 years, of a fishing enterprise, including the salting and preserving of fish, that may be established on the Amazon rivers, and the concession of a premium of 10:000$ for five consecutive years, when the production of salted and preserved fish shall be above 100 tons annually. Art. 10—The Government shall proceed to the discrimination, and consequent acknowledgment of the owners of the lands in the Territory of Acre, for the confirmation of their respective property titles. Section 1.—In the verification the following should be con- sidered as much as possible: (a) The titles granted by the Governors of the States of the Amazon, of Bolivia and the former independent State of Acre before the treaty of Petropolis. (b) The mild and pacific possessions acquired by first occu- pation, or from the first occupant, which shall be found in active exploration, or with its beginnings and habitual residence of the possessor, or his representatives. Sec. 2.—The maximum area of each lot shall be 10 kilometers square. Sec. 3—The Government will review the arrangements of Law, No. 601, September 18, 1850, and Decree No. 1,318, January 30, 1854, expediting a new regulation of lands, with the modifi- cations of the present law and those which appear more conven- ient to the actual situation of the Federal territories. Art. IIl.—Every three years, the Government shall promote the realization, in Rio de Janeiro, of an exposition embracing all that pertains to the national rubber industry, and on these occa- sions it will grant premiums of encouragement, totaling an amount equal to that which shall be authorized by law of the budget in force, for the best processes of culture and treatment, and to the producers of the best manufactured articles. Art. 12.—The Executive Power is authorized to enter into an agreement with the States of Para, Amazonas and Matto Grosso, for the purpose of obtaining an annual reduction of 10 per cent. until the maximum limit of 50 per cent. of the actual value of the export duties placed by the States upon the seringa rubber pro- duced in their territories, and the exemption from any export duty, for the space of 25 years, to begin from the date of this law, 68 upon rubber of the same quality and derivation which may be gathered from cultivated seringaes. At the time the agreement is effected, the executive power shall issue a decree making such reduction which the States may make in the export duty collected on the rubber of the Federal Territory of Acre and conceding an equal exemption upon culti- vated rubber. Art. 18.—In addition the Government is authorized to enter into an agreement with the above mentioned States for the pur- pose of establishing, in relation to the rubber of the Territory of Acre, the measures of protection and defense, which they have adopted in relation to the production, or other measures which may be thought better, and having the power to issue the decrees necessary for this purpose. Art. 14.For the entire execution of this law and the realiza- tion of the measures decreed, the executive power, shall issue, as quickly as possible, the necessary regulations; it shall open each year the credits that may be necessary, rendering an account to the Legislative power the year following, of the amounts ex- pended, of the work done, of the results obtained and making the operations of credit which such services and measures demand. Art. 15.—All laws contrary to this are revoked. Rio de Janeiro, January 5, 1912, 91st year of Independence and the 24th year of the Republic. HERMES R. da FONSECA, PEDRO de TOLEDO. Order according to Federal Law, number 2,543A, Jan. 5, 1912 Decree number 9,521, April 17, 1912 Art. 1. The measures and services created by law number 2,543A, Jan. 5 of the present year, for the economic defense of rubber, has in view: 1. The encouragement of the extractive and cultivating in- dustry of the principal trees producing rubber. 2. The creation of the refining and manufacturing industry of rubber articles. 3. Assistance to. immigrants, native and foreign, recently ar- rived, and to the laborers already established in the valley of the Amazon. 4. To facilitate transportation and decrease its cost in the valley of the Amazon. ; 5. To create central producers of alimentary foodstuffs in the valley of the Amazon. 6. To discriminate and legalize the possessors of lands in the Federal Territory of Acre. ”. To hold triennial expositions in Rio de Janeiro, embrac- 69 ing everything that relates the national rubber industry. 8. To authorize agreements with the States producing ser- inga rubber, for decreasing the duties of exportation and for the protection and aid of the rubber commerce. Sole Paragraph. It shall be the object of each of these meas- ures and means referred to in number 8 and of the special rules, that they shall publish at opportune times, as well as those re- ferred to in number 6 and that part of number 4 which speaks of the revision and consolidation of the regulations of the coast- wise merchant marine. TITLE | The means of encouragement of the extractive and cultivating industry of the principal rubber producing trees CHAPTER I The reduction of the cost of implements and materials employed in the development of the rubber industry Art. 2. The implements and regular materials in the list an- nexed to this regulation, are free of all import duties, including the fees when employed for the cultivation of seringueira, caucho, manicoba and mangabeira and the improved collection of the extracted rubber, from these trees, whether it treats of the development purely extractive, or of the development of cul- tivation. : Sole Paragraph. Materials and machinery which shall be dis- covered or invented during the time this regulation is in force, which have special application to the rubber industry, shall en- joy the same exemption from import duties. Art. 8. The exemption shall be quickly granted by the cus- tom house inspectors, from whom the claimants should require it, uniting all, or only those necessary as the case may be, the following documents: 1. The last receipt of the duty of declarations of the Munic- ipality or Mayor to whose jurisdiction it pertains, by which is proven that the claimant is developing on his own or rented property, the extractive or cultivating rubber industry, or that he is a merchant established with a house prepared for goods for rubber gatherers, when it treats of regular objects of the first group. 2. Attested by the Municipality or Mayor to whose juris- diction he belongs, that the claimant possesses proper land and that he is about to effectively undertake the culture of some of the trees above mentioned and treatment of their rubber or an authentic copy of the concession for this purpose, which he may 70 CASTILLOA ELASTICA. 71 have obtained from the Minister of Agriculture, in case he treats of regular objects of the second, third or fourth group. 38. A detailed statement of the kind and quality of objects or material which it is necessary to import, or has been im- ported, which it is necessary to despatch. Sole Paragraph. The importer shall become responsible, dur- ing this period, to the exchequer for any errors that may have bec:: made. Art. 4. The product, drug or object that may be similar to that produced in this country, will not be exempt from import duti::s, when the cost in this market in which he would have to buy it was equal to that of the imported merchandise, less the value of the import duty which he would have to pay in the custom houses. CHAPTER II The money premiums offered to those who cultivate the principal rubber producing trees Art. 5. To every one who makes an entirely new culture of Seringueira, caucho, manigoba or mangabeira, or replants ser- ingaes, manicobaes, couchaes or native mangabaes, shall be given, in the first case and for groups of 12 hectares, premiums of 2,500 milreis, when it is Seringueira; 1,500 milreis when -caucho or manigoba, and 900 milreis when mangabeira—and in the second case and for groups of 25 hectares, 2,000 milreis when it is seringueiras, 1,000 milreis when couchaes or mani- cobas and 720 milreis when mangabaes, when the following con- ditions are observed: 1. Sending beforehand to the Minister of Agriculture a plan of the property in which he expects to make the culture, indicat- ing the area, water courses navigable for steamers, launches or only canoes, and of the means of access from headquarters to the port (fluvial or maritime) or the nearest station on the rail- road, mentioning these respective distances in case the property is situated in the interior. The plan shall be accompanied by a descriptive memorandum, containing as much detailed descrip- tion as possible as to the nature of the soil and its adaptation to what shall be principally cultivated, and to those which may advantageously be subsidiary; the production of rubber for the last three years in case it treats of the property in development, and about the conditions of healthfulness. 2. It shall declare whether it is new culture or replanting that is proposed to be done and in the second case the number of trees in development the property has already. 3. When the cultivation is of Seringueiras one must declare 72 whether he expects to make parallel cultivations or not, speci- fying which and whether they occupy the land planted to rub- ber, or land separate. 4. To communicate to official charged with the fiscalization the beginning and ending of the planting, with the necessary antecedence, the year in which the first harvest will be. gathered, facilitating the examination of the property at any time, and as many times as desired. Art. 6. The least number of trees per hectare for new cul- ture shall be 250 for seringueira and caucho, and 400 for mani- coba and mangabeira. In the event of replanting, when pos- sible, the distance between the trees should be 6 to 6.50 metres for seringueiras and caucho, and 5 metres for manicoba and mangabeira. Art. 7. To those who cultivate with seringueiras plants of alimentation or industrial utility, in all the land improved, or in other land equal to one-third of the dimensions of the first, there will be conferred annually, from the beginning of the cul- tivation to the year of the first rubber harvest, a supplementary premium corresponding in value to 5 per cent of the principal premium. Art. 8. Premiums will not be paid for principal or subsidiary cultures which in the final inspections for the first and the an- nual inspections for the others, the trees show poor treatment or they contain an amount exceeding 15 per cent of flaws. Art. 9. The premiums shall be paid directly by the Dele- gacia Fiscal of the State where the property is situated, in the preceding the first harvest of rubber, through the demand of the claimant, with certificate from the Government inspector, declaring that all the conditions required in this regulation were faithfully complied with. Sole Paragraph. The inspector who makes out the certificate shall immediately notify the Minister and will be held responsi- ble at all times for the value of the premium paid, in case his in- formation should be found false in whole or in part. Art. 10. At sight of the documents spoken of in Art. 5, and after examining them, the claimant shall be entered ex-efficio in the general register of farmers, existing in the General Directory of Agriculture with the advantages and guarantees it offers him. CHAPTER III The Experimental Stations for the culture of rubber Art. 11. The experimental stations for the culture of serin- gueira in the Territory of Acre and the States of Matto-Grosso, Amazonas, Para, Maranhao, Piauhy and Bahia, and for the culture 73 of manicoba jointly with that of mangabeira, in the States of Piauhy, Ceara, Parnambuco, Bahia, Minas Geraes, S. Paulo, Goyaz, Parana and Matto Grosso, have in view with the experi- mental study of all the factors relating to the regional culture of each of these trees, for the purpose of furnishing the cultivators with precise data for the adoption of methods and processes, which will make possible the economic and perfect production of their respective rubber. Art. 12. The experimental stations shall be established on lands that possess the following requisites: 1. Climatic situation and agricultural conditions required by the nature or quality of the plant to be cultivated. 2. The physical constitution and natural chemical composi- tion which will permit conjunctly and parallel the culture of the principal food stuffs or plants of industrial utility. 3. Localization at points easily accessible by good roads so that they can be visited and verified, as well in the fields as in the books of registry of the farmers and agricultural accounts of the practical results and economies of the different services and operations. The existence of permanent water courses, or dams with sufficient capacity to guarantee irrigation when neces- sary, and also other agricultural services. Art. 18. The total area of each experimental station shall be from 80 to 100 hectares, so that there can be made at the same time in distinct partial areas the culture of the portions destined for experiments relative to each kind of tree and a demonstration of the normal systematic development of the re- spective culture, for comparison of the products and their revenue. Art. 14. In the area reserved for demonstration, there shall be included those which will serve as examples, being the first cultivated between the processes that shall have proven the most advantageous and which are sought to be introduced, and lastly of those generally adopted in that region. Art. 15. In each station there shall be reserved the land necessary for the establishment of a nursery of fruit trees and the production of selected seeds of alimentary plants or those of industrial utility, whose culture along with the principal plant shall be considered advantageous. Art. 16. Every experimental station shall have the follow- ing installations: 1. A physiological vegetable laboratory, the proving of seeds and phytopathology. 2. Laboratory of agricultural entomology. 3. Laboratory of argicultural, vegetable and bromatological chemistry. U4 ‘ip agusrorat FUMIGATING CAOUTCHOUC. 75 4. Laboratory of mircobiological and technical agriculture. 5. An agricultural and floral museum. 6. A corridor for machines. %. A meteorological station. Sole Paragraph. A station that may be established in a region where there already exists a federal institution of similar kind, pertaining to agriculture in general, the installations above mentioned shall be reduced to numbers 5, 6, and 7 and shall be provided with a small laboratory for the mechanical analysis of the soil, and utensils and instruments necessary for the proving of seeds of useful vegetables, so that a choice or selection may be made and their identity, purity, quality and germanating energy may be verified, including in these experiments those which refer to plants that are injurious. Art. 17. To accomplish the ends proposed, the experimental stations ought to: 1. Attend the consultations that may be held upon any agri- cultural question in their line. 2. Execute gratuitously analysis of fertilizers, spices, plants and water, when required by the nearest federal institute, when it does not possess the necessary laboratories. 3. Distribute selected plants and seeds. 4. Study the diseases common to the plants cultivated and the means of combating them, and explaining these things to those interested. 5. To publish yearly and distribute free of charge a bulletin devoted to the relation of the works done and the useful knowl- edge acquired relative to agricultural and rural industrial sub- jects, and especially the results obtained as to the most practical and economic method of cultivating the trees that produce rub- ber, and the most profitable subsidiary plants, as well as the best methods of the treatment, conservation and packing of the products. Art. 18. There shall be admitted to the experimental stations, persons who wish to gain a practical knowledge in any of the sections, at the discretion of the Director, who shall fix the number of students in agreement with the chief of the re- spective section. Sole Paragraph. On equal terms, apprentices between 15 and 18 years of age, shall be admitted, the numbers to be determined by the respective Director, with the approval of the Minister, who shall have daily tasks corresponding to their capacity and aptitude. The Director in the name of the Minister shall give a certificate, on which shall be indicated the work that has been done, to all those who have completed their appren- ticeship. ve Art. 19. The plan of each station shall be organized to meet the peculiar necessities of the zone in which it may be estab- lished, conserving, however, the principal fundamentals already set forth. Art. 20. The position of Director shall be held by a person who is a specialist in any one of the technical sections, and at the same time shall be its chief, an indispensable condition being that in addition to his technical knowledge he shall have had a prac- tical apprenticeship. Art. 21. The technical positions may be filled, by contract, by native or foreign professors of established ability. Art. 22. To each of the stations there shall be sent a special regulation determining for them their proportions according to the necessities of the case, fixing the term and salaries of their respective personnel and providing for the special necessities to come. TITLE II The creation of the Refining and Manufacturing Rubber Industries ONLY CHAPTER Art. 23. The first factory for the refining of seringa rubber that shall be established in each of the cities of Belem (Para) and Manaos, and of manicoba and mangabeira rubber which shall be established in the States of Piauhy, Ceara, Rio Grande do Norte, Pernambuco, Bahia, Minas Geraes and S. Paulo, as well as the first factory of rubber articles which shall be estab- lished in Manaos, in Belem, in Recife (Pernambuco) in Bahia, and in Rio de Janeiro, there shall be conceded the following premiums and favors: (a) Up to 400,000 milreis in money to the plants for the re- fining of seringa rubber; Up to 100,000 milreis in money to the plants for the refin- ing of manigoba and mangabeira rubber ; Up to 500,000 milreis in money for plants for manufacturing rubber articles. (b) Exemption from import duties, including fees in the manner and by the processes described in Articles 3 and 91 combined, as the case may require, for all material, machines, utensils and hardware necessary for the construction and com- plete equipment of the factory, as well as all chemical sub- stances, cloth and different materials, combustibles and lubri- cants necessary for the working and maintenance of the factory, during a period of 25 years. V7 (c) The right of appropriation for public use, according to the legislation in force, of the lands and improvements belong- ing to individuals that may be judged appropriate and necessary for the equipment of the factory and its dependencies. (d)